Document:

Exhibit
      10.1

    EXECUTION
      COPY

     

    COMMON
      STOCK PURCHASE AGREEMENT

    

    COMMON
      STOCK PURCHASE AGREEMENT
      (the
“Agreement”), dated as of July 2, 2008, by and between HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Company,” as further defined in Section 10), and
FUSION
      CAPITAL FUND II, LLC,
      an
      Illinois limited liability company (the “Buyer”). Capitalized terms used herein
      and not otherwise defined herein are defined in Section 10 hereof. 

    

    WHEREAS:

    

    Subject
      to the terms and conditions set forth in this Agreement, the Company wishes
      to
      sell to the Buyer, and the Buyer wishes to buy from the Company, up to Thirty
      Million Dollars ($30,000,000) of the Company's common stock, par value $0.001
      per share (the “Common Stock”). The shares of Common Stock to be purchased
      hereunder are referred to herein as the "Purchase Shares."

    

    NOW
      THEREFORE,
      the
      Company and the Buyer hereby agree as follows:

    

    
      	
            	1.	
              PURCHASE
                OF COMMON STOCK. 

            

    

    

    Subject
      to the terms and conditions set forth in this Agreement, the Company has the
      right to sell to the Buyer, and the Buyer has the obligation to purchase from
      the Company, Purchase Shares as follows:

    

    (a) Commencement
      of Purchases of Common Stock.
      The
      purchase and sale of Purchase Shares hereunder shall occur from time to time
      upon written notices by the Company to the Buyer on the terms and conditions
      as
      set forth herein following the satisfaction of the conditions (the
“Commencement”) as set forth in Sections 6 and 7 below (the date of satisfaction
      of such conditions, the "Commencement Date"). 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (b) The
      Company’s Right to Require Purchases.
      Any
      time on or after the Commencement Date, the Company shall have the right but
      not
      the obligation to direct the Buyer by its delivery to the Buyer of Base Purchase
      Notices from time to time to buy Purchase Shares (each such purchase a “Base
      Purchase”) in any amount up to One Hundred Twenty Thousand Dollars ($120,000)
      per Base Purchase Notice (the “Base Purchase Amount”) at the Purchase Price on
      the Purchase Date. The Company may deliver multiple Base Purchase Notices to
      the
      Buyer so long as at least two (2) Business Days have passed since the most
      recent Base Purchase was completed. Notwithstanding the forgoing, any time
      on or
      after the Commencement Date, the Company shall also have the right but not
      the
      obligation by its delivery to the Buyer of Block Purchase Notices from time
      to
      time to direct the Buyer to buy Purchase Shares (each such purchase a “Block
      Purchase”) in any amount up to One Million Dollars ($1,000,000) per Block
      Purchase Notice at the Block Purchase Price on the Purchase Date as provided
      herein. For a Block Purchase Notice to be valid the following conditions must
      be
      met: (1) the Block Purchase Amount shall not exceed One Hundred Fifty Thousand
      Dollars ($150,000) per Block Purchase Notice, (2) the Company must deliver
      the
      Purchase Shares before 11:00 a.m. eastern time on the Purchase Date and (3)
      the
      Sale Price of the Common Stock must not be below $0.80 (subject to equitable
      adjustment for any reorganization, recapitalization, non-cash dividend, stock
      split or other similar transaction) during the Purchase Date, the date of the
      delivery of the Block Purchase Notice and during the Business Day prior to
      the
      delivery of the Block Purchase Notice. The Block Purchase Amount may be
      increased to up to Two Hundred Fifty Thousand Dollars ($250,000) per Block
      Purchase Notice if the Sale Price of the Common Stock is not below $1.25
      (subject to equitable adjustment for any reorganization, recapitalization,
      non-cash dividend, stock split or other similar transaction) during the Purchase
      Date, the date of the delivery of the Block Purchase Notice and during the
      Business Day prior to the delivery of the Block Purchase Notice. The Block
      Purchase Amount may be increased to up to Five Hundred Thousand Dollars
      ($500,000) per Block Purchase Notice if the Sale Price of the Common Stock
      is
      not below $1.75 (subject to equitable adjustment for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar transaction)
      during the Purchase Date, the date of the delivery of the Block Purchase Notice
      and during the Business Day prior to the delivery of the Block Purchase Notice.
      The Block Purchase Amount may be increased to up to One Million Dollars
      ($1,000,000) per Block Purchase Notice if the Sale Price of the Common Stock
      is
      not below $4.00 (subject to equitable adjustment for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar transaction)
      during the Purchase Date, the date of the delivery of the Block Purchase Notice
      and during the Business Day prior to the delivery of the Block Purchase Notice.
      As used herein, the term “Block Purchase Price” shall mean the lesser of (i) the
      lowest Sale Price of the Common Stock on the Purchase Date or (ii) the lowest
      Purchase Price during the previous ten (10) Business Days prior to the date
      that
      the valid Block Purchase Notice was received by the Buyer. However, if at any
      time during the Purchase Date, the date of the delivery of the Block Purchase
      Notice or during the Business Day prior to the delivery of the Block Purchase
      Notice, the Sale Price of the Common Stock is below the applicable Block
      Purchase threshold price, such Block Purchase shall be void and the Buyer’s
      obligations to buy Purchase Shares in respect of that Block Purchase Notice
      shall be terminated. Thereafter, the Company shall again have the right to
      submit a Block Purchase Notice as set forth herein by delivery of a new Block
      Purchase Notice only if the Sale Price of the Common Stock is above the
      applicable Block Purchase threshold price during the date of the delivery of
      the
      Block Purchase Notice and during the Business Day prior to the delivery of
      the
      Block Purchase Notice. The Company may deliver multiple Block Purchase Notices
      to the Buyer so long as at least two (2) Business Days have passed since the
      most recent Block Purchase was completed. 

    

    (c) Payment
      for Purchase Shares.
      The
      Buyer shall pay to the Company an amount equal to the Purchase Amount with
      respect to such Purchase Shares as full payment for such Purchase Shares via
      wire transfer of immediately available funds on the same Business Day that
      the
      Buyer receives such Purchase Shares if they are received by the Buyer before
      11:00 a.m. eastern time or if received by the Buyer after 11:00 a.m. eastern
      time, the next Business Day. The Company shall not issue any fraction of a
      share
      of Common Stock upon any purchase. If the issuance would result in the issuance
      of a fraction of a share of Common Stock, the Company shall round such fraction
      of a share of Common Stock up or down to the nearest whole share. All payments
      made under this Agreement shall be made in lawful money of the United States
      of
      America or wire transfer of immediately available funds to such account as
      the
      Company may from time to time designate by written notice in accordance with
      the
      provisions of this Agreement. Whenever any amount expressed to be due by the
      terms of this Agreement is due on any day that is not a Business Day, the same
      shall instead be due on the next succeeding day that is a Business Day.

     

    (d) Purchase
      Price Floor.
      The
      Company and the Buyer shall not effect any sales under this Agreement on any
      Purchase Date where the Purchase Price for any purchases of Purchase Shares
      would be less than the Floor Price. “Floor Price” means $0.40, which
shall
      be
      appropriately adjusted for any reorganization, recapitalization, non-cash
      dividend, stock split or other similar transaction.

    

    (e) Records
      of Purchases.
      The
      Buyer and the Company shall each maintain records showing the remaining
      Available Amount at any give time and the dates and Purchase Amounts for each
      purchase or shall use such other method, reasonably satisfactory to the Buyer
      and the Company.

    

    
      
        
        

      

      
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    (f) Taxes.
      The
      Company shall pay any and all transfer, stamp or similar taxes that may be
      payable with respect to the issuance and delivery of any shares of Common Stock
      to the Buyer made under this Agreement.

    

    (g) Compliance
      with Principal Market Rules.
      Notwithstanding any other provision of this Agreement, the Company shall not
      effect any sale under this Agreement or be obligated to register under the
      1933
      Act Purchase Shares under this Agreement and the Buyer shall not have the right
      or the obligation to purchase shares of Common Stock under this Agreement to
      the
      extent that after giving effect to such purchase the "Exchange Cap" shall be
      deemed to be reached. The "Exchange Cap" shall be deemed to have been reached
      if, at any time prior to the shareholders of the Company approving the
      transaction contemplated by this Agreement, upon a purchase under this
      Agreement, the Purchase Shares and Commitment Shares issuable pursuant to such
      purchase would, together with all Purchase Shares and Commitment Shares
      previously issued under this Agreement, and any Common Stock previously issued
      to Fusion that would be aggregated by the American Stock Exchange exceed
      14,816,757 shares of Common Stock (19.99% of the 74,120,848 outstanding shares
      of Common Stock as of the date of this Agreement). The Company may, but shall
      be
      under no obligation to, request its shareholders to approve the transaction
      contemplated by this Agreement. The Company shall not be required to issue
      any
      shares of Common Stock or register any shares of Common Stock under this
      Agreement if such issuance or registration would breach the Company's
      obligations under the rules or regulations of the Principal Market.

    

    
      	
            	2.	
              BUYER'S
                REPRESENTATIONS AND
                WARRANTIES.

            

    

    

    The
      Buyer
      represents and warrants to the Company that as of the date hereof and as of
      the
      Commencement Date: 

    

    (a) Investment
      Purpose.
      The
      Buyer is entering into this Agreement and acquiring the Commitment Shares,
      (as
      defined in Section 4(e) hereof) and the Purchase Shares (collectively referred
      to herein as the "Securities"), for its own account for investment only and
      not
      with a view towards, or for resale in connection with, the public sale or
      distribution thereof; provided however, by making the representations herein,
      the Buyer does not agree to hold any of the Securities for any minimum or other
      specific term other than as set forth in Section 4(e) with respect to the
      Commitment Shares.

     

    (b) Accredited
      Investor Status.
      The
      Buyer is an "accredited investor" as that term is defined in Rule 501(a)(3)
      of
      Regulation D.

    

    (c) Reliance
      on Exemptions.
      The
      Buyer understands that the Securities are being offered and sold to it in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying in
      part
      upon the truth and accuracy of, and the Buyer's compliance with, the
      representations, warranties, agreements, acknowledgments and understandings
      of
      the Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of the Buyer to acquire the
      Securities.

    

    
      
        
        

      

      
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    (d) Information.
      The
      Buyer has been furnished with all materials relating to the business, finances
      and operations of the Company and materials relating to the offer and sale
      of
      the Securities that have been reasonably requested by the Buyer, including,
      without limitation, the SEC Documents (as defined in Section 3(f) hereof).
      The
      Buyer understands that its investment in the Securities involves a high degree
      of risk. The Buyer (i) is able to bear the economic risk of an investment in
      the
      Securities including a total loss, (ii) has such knowledge and experience in
      financial and business matters that it is capable of evaluating the merits
      and
      risks of the proposed investment in the Securities and (iii) has had an
      opportunity to ask questions of and receive answers from the officers of the
      Company concerning the financial condition and business of the Company and
      others matters related to an investment in the Securities. Neither such
      inquiries nor any other due diligence investigations conducted by the Buyer
      or
      its representatives shall modify, amend or affect the Buyer's right to rely
      on
      the Company's representations and warranties contained in Section 3 below.
      The
      Buyer has sought such accounting, legal and tax advice as it has considered
      necessary to make an informed investment decision with respect to its
      acquisition of the Securities.

    

    (e) No
      Governmental Review.
      The
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities or the fairness or suitability of the investment
      in the Securities nor have such authorities passed upon or endorsed the merits
      of the offering of the Securities.

    

    (f) Transfer
      or Sale.
      The
      Buyer understands that except as provided in the Registration Rights Agreement
      (as defined in Section 4(a) hereof): (i) the Securities have not been and are
      not being registered under the 1933 Act or any state securities laws, and may
      not be offered for sale, sold, assigned or transferred unless (A) subsequently
      registered thereunder or (B) an exemption exists permitting such Securities
      to
      be sold, assigned or transferred without such registration; (ii) any sale of
      the
      Securities made in reliance on Rule 144 may be made only in accordance with
      the
      terms of Rule 144 and further, if Rule 144 is not applicable, any resale of
      the
      Securities under circumstances in which the seller (or the person through whom
      the sale is made) may be deemed to be an underwriter (as that term is defined
      in
      the 1933 Act) may require compliance with some other exemption under the 1933
      Act or the rules and regulations of the SEC thereunder; and (iii) neither the
      Company nor any other person is under any obligation to register the Securities
      under the 1933 Act or any state securities laws or to comply with the terms
      and
      conditions of any exemption thereunder.

    

    (g) Validity;
      Enforcement.
      This
      Agreement has been duly and validly authorized, executed and delivered on behalf
      of the Buyer and is a valid and binding agreement of the Buyer enforceable
      against the Buyer in accordance with its terms, subject as to enforceability
      to
      general principles of equity and to applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation and other similar laws relating to,
      or
      affecting generally, the enforcement of applicable creditors' rights and
      remedies. 

    

    (h) Residency.
      The
      Buyer is a resident of the State of Illinois.

    

    (i) No
      Prior Short Selling.
      The
      Buyer represents and warrants to the Company that at no time prior to the date
      of this Agreement has any of the Buyer, its agents, representatives or
      affiliates engaged in or effected, in any manner whatsoever, directly or
      indirectly, any (i) "short sale" (as such term is defined in Section 242.200
      of
      Regulation SHO of the Securities Exchange Act of 1934, as amended (the "1934
      Act")) of the Common Stock or (ii) hedging transaction, which establishes a
      net
      short position with respect to the Common Stock.

    

    (j) No
      Distribution Arrangements.
      As of
      the date hereof, the Buyer has no agreements or understandings, directly or
      indirectly, with any person to distribute the shares that the Buyer purchases
      pursuant to this Agreement.

    

    
      
        
        

      

      
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            	3.	
              REPRESENTATIONS
                AND WARRANTIES OF THE
                COMPANY.

            

    

    

    The
      Company represents and warrants to the Buyer that as of the date hereof and
      as
      of the Commencement Date:

    

    (a) Organization
      and Qualification.
      The
      Company and its "Subsidiaries" (which for purposes of this Agreement means
      any
      entity in which the Company, directly or indirectly, owns 50% or more of the
      voting stock or capital stock or other similar equity interests) are
      corporations duly organized and validly existing in good standing under the
      laws
      of the jurisdiction in which they are incorporated, and have the requisite
      corporate power and authority to own their properties and to carry on their
      business as now being conducted. Each of the Company and its Subsidiaries is
      duly qualified as a foreign corporation to do business and is in good standing
      in every jurisdiction in which its ownership of property or the nature of the
      business conducted by it makes such qualification necessary, except to the
      extent that the failure to be so qualified or be in good standing could not
      reasonably be expected to have a Material Adverse Effect. As used in this
      Agreement, "Material Adverse Effect" means any material adverse effect on any
      of: (i) the business, properties, assets, operations, results of operations
      or
      financial condition of the Company and its Subsidiaries, if any, taken as a
      whole, or (ii) the authority or ability of the Company to perform its
      obligations under the Transaction Documents (as defined in Section 3(b) hereof).
      The Company has no Subsidiaries except as set forth on Schedule
      3(a).

    

    (b) Authorization;
      Enforcement; Validity.
      (i) The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under this Agreement, the Registration Rights Agreement
      and each of the other agreements entered into by the parties on the Commencement
      Date and attached hereto as exhibits to this Agreement (collectively, the
      "Transaction Documents"), and to issue the Securities in accordance with the
      terms hereof and thereof, (ii) the execution and delivery of the Transaction
      Documents by the Company and the consummation by it of the transactions
      contemplated hereby and thereby, including without limitation, the issuance
      of
      the Commitment Shares and the reservation for issuance and the issuance of
      the
      Purchase Shares (up to the Exchange Cap) issuable under this Agreement, have
      been duly authorized by the Company's Board of Directors and no further consent
      or authorization is required by the Company, its Board of Directors or its
      shareholders, (iii) this Agreement has been, and each other Transaction Document
      shall be on the Commencement Date, duly executed and delivered by the Company
      and (iv) this Agreement constitutes, and each other Transaction Document upon
      its execution on behalf of the Company, shall constitute, the valid and binding
      obligations of the Company enforceable against the Company in accordance with
      their terms, except as such enforceability may be limited by general principles
      of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
      liquidation or similar laws relating to, or affecting generally, the enforcement
      of creditors' rights and remedies. The Board of Directors of the Company has
      approved the resolutions (the “Signing Resolutions”) substantially in the form
      as set forth as Exhibit
      C-1
      attached
      hereto to authorize this Agreement and the transactions contemplated hereby.
      The
      Signing Resolutions are valid, in full force and effect and have not been
      modified or supplemented in any respect other than by the resolutions set forth
      in Exhibit
      C-2
      attached
      hereto regarding the registration statement referred to in Section 4 hereof.
      The
      Company has delivered to the Buyer a true and correct copy of a unanimous
      written consent adopting the Signing Resolutions executed by all of the members
      of the Board of Directors of the Company. No other approvals or consents of
      the
      Company’s Board of Directors and/or shareholders is necessary under applicable
      laws and the Company’s Certificate of Incorporation and/or Bylaws to authorize
      the execution and delivery of this Agreement or any of the transactions
      contemplated hereby, including, but not limited to, the issuance of the
      Commitment Shares and the issuance of the Purchase Shares up to the Exchange
      Cap.

    

    
      
        
        

      

      
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    (c) Capitalization.
      As of
      the date hereof, the authorized capital stock of the Company consists of (i)
      200,000,000 shares of Common Stock, of which as of the date hereof, 74,120,848
      shares are issued and outstanding, none are held as treasury shares, 16,446,992
      shares are reserved for issuance pursuant to the Company's stock option plans
      of
      which only approximately 8,883,524 shares remain available for future grants
      and
      9,731,275 shares are issuable and reserved for issuance pursuant to securities
      (other than stock options issued pursuant to the Company's stock option plans)
      exercisable or exchangeable for, or convertible into, shares of Common Stock
      and
      (ii) 5,000,000 shares of blank check Preferred Stock, $0.01 par value, of which
      as of the date hereof no shares are issued and outstanding . All of such
      outstanding shares have been, or upon issuance will be, validly issued and
      are
      fully paid and nonassessable. Except as disclosed in Schedule 3(c), (i) no
      shares of the Company's capital stock are subject to preemptive rights or any
      other similar rights or any liens or encumbrances suffered or permitted by
      the
      Company, (ii) there are no outstanding debt securities, (iii) there are no
      outstanding options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company or any of its
      Subsidiaries, or contracts, commitments, understandings or arrangements by
      which
      the Company or any of its Subsidiaries is or may become bound to issue
      additional shares of capital stock of the Company or any of its Subsidiaries
      or
      options, warrants, scrip, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities or rights convertible into,
      any
      shares of capital stock of the Company or any of its Subsidiaries, (iv) there
      are no agreements or arrangements under which the Company or any of its
      Subsidiaries is obligated to register the sale of any of their securities under
      the 1933 Act (except the Registration Rights Agreement), (v) there are no
      outstanding securities or instruments of the Company or any of its Subsidiaries
      which contain any redemption or similar provisions, and there are no contracts,
      commitments, understandings or arrangements by which the Company or any of
      its
      Subsidiaries is or may become bound to redeem a security of the Company or
      any
      of its Subsidiaries, (vi) there are no securities or instruments containing
      anti-dilution or similar provisions that will be triggered by the issuance
      of
      the Securities as described in this Agreement and (vii) the Company does not
      have any stock appreciation rights or "phantom stock" plans or agreements or
      any
      similar plan or agreement. The Company has furnished to the Buyer true and
      correct copies of the Company's Certificate of Incorporation, as amended and
      as
      in effect on the date hereof (the "Certificate of Incorporation"), and the
      Company's By-laws, as amended and as in effect on the date hereof (the
      "By-laws"), and summaries of the terms of all securities convertible into or
      exercisable for Common Stock, if any, and copies of any documents containing
      the
      material rights of the holders thereof in respect thereto.

    

    (d) Issuance
      of Securities.
      The
      Commitment Shares have been duly authorized and, upon issuance in accordance
      with the terms hereof, the Commitment Shares shall be (i) validly issued, fully
      paid and non-assessable and (ii) free from all taxes, liens and charges with
      respect to the issue thereof. 13,516,757 shares of Common Stock have been duly
      authorized and reserved for issuance upon purchase under this Agreement. 650,000
      shares of Common Stock (subject to equitable adjustment for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar transaction)
      have been duly authorized and reserved for issuance as Additional Commitment
      Shares in accordance with Section 4(e) this Agreement. Upon
      issuance and payment therefor in accordance with the terms and conditions of
      this Agreement, the Purchase Shares shall be validly issued, fully paid and
      nonassessable and free from all taxes, liens and charges with respect to the
      issue thereof, with the holders being entitled to all rights accorded to a
      holder of Common Stock.

    

    
      
        
        

      

      
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    (e) No
      Conflicts.
      Except
      as disclosed in Schedule 3(e), the execution, delivery and performance of the
      Transaction Documents by the Company and the consummation by the Company of
      the
      transactions contemplated hereby and thereby (including, without limitation,
      the
      reservation for issuance and issuance of the Purchase Shares up to the Exchange
      Cap) will not (i) result in a violation of the Certificate of Incorporation,
      any
      Certificate of Designations, Preferences and Rights of any outstanding series
      of
      preferred stock of the Company or the By-laws or (ii) conflict with, or
      constitute a default (or an event which with notice or lapse of time or both
      would become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation of, any agreement, indenture or
      instrument to which the Company or any of its Subsidiaries is a party, or result
      in a violation of any law, rule, regulation, order, judgment or decree
      (including federal and state securities laws and regulations and the rules
      and
      regulations of the Principal Market applicable to the Company or any of its
      Subsidiaries) or by which any property or asset of the Company or any of its
      Subsidiaries is bound or affected, except in the case of conflicts, defaults,
      terminations, amendments, accelerations, cancellations and violations under
      clause (ii), which could not reasonably be expected to result in a Material
      Adverse Effect. Except as disclosed in Schedule 3(e), neither the Company nor
      its Subsidiaries is in violation of any term of or in default under its
      Certificate of Incorporation, any Certificate of Designation, Preferences and
      Rights of any outstanding series of preferred stock of the Company or By-laws
      or
      their organizational charter or by-laws, respectively. Except as disclosed
      in
      Schedule 3(e), neither the Company nor any of its Subsidiaries is in violation
      of any term of or is in default under any material contract, agreement,
      mortgage, indebtedness, indenture, instrument, judgment, decree or order or
      any
      statute, rule or regulation applicable to the Company or its Subsidiaries,
      except for possible conflicts, defaults, terminations or amendments which could
      not reasonably be expected to have a Material Adverse Effect. The business
      of
      the Company and its Subsidiaries is not being conducted, and shall not be
      conducted, in violation of any law, ordinance, regulation of any governmental
      entity, except for possible violations, the sanctions for which either
      individually or in the aggregate could not reasonably be expected to have a
      Material Adverse Effect. Except as specifically contemplated by this Agreement
      and as required under the 1933 Act or applicable state securities laws, the
      Company is not required to obtain any consent, authorization or order of, or
      make any filing or registration with, any court or governmental agency or any
      regulatory or self-regulatory agency in order for it to execute, deliver or
      perform any of its obligations under or contemplated by the Transaction
      Documents in accordance with the terms hereof or thereof. Except as disclosed
      in
      Schedule 3(e), all consents, authorizations, orders, filings and registrations
      which the Company is required to obtain pursuant to the preceding sentence
      shall
      be obtained or effected on or prior to the Commencement Date. Except as listed
      in Schedule 3(e), since January 1, 2007, the Company has not received nor
      delivered any notices or correspondence from or to the Principal Market. The
      Principal Market has not commenced any delisting proceedings against the
      Company.

    

    (f) SEC
      Documents; Financial Statements.
      Except
      as disclosed in Schedule 3(f), since January 1, 2007, the Company has timely
      filed all reports, schedules, forms, statements and other documents required
      to
      be filed by it with the SEC pursuant to the reporting requirements of the 1934
      Act (all of the foregoing filed prior to the date hereof and all exhibits
      included therein and financial statements and schedules thereto and documents
      incorporated by reference therein being hereinafter referred to as the "SEC
      Documents"). As of their respective dates (except as they have been correctly
      amended), the SEC Documents complied in all material respects with the
      requirements of the 1934 Act and the rules and regulations of the SEC
      promulgated thereunder applicable to the SEC Documents, and none of the SEC
      Documents, at the time they were filed with the SEC (except as they may have
      been properly amended), contained any untrue statement of a material fact or
      omitted to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading. As of their respective dates (except as they
      have been properly amended), the financial statements of the Company included
      in
      the SEC Documents complied as to form in all material respects with applicable
      accounting requirements and the published rules and regulations of the SEC
      with
      respect thereto. Such financial statements have been prepared in accordance
      with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (i) as may be otherwise indicated in such financial
      statements or the notes thereto or (ii) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements) and fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). Except as listed
      in
      Schedule 3(f), the Company has received no notices or correspondence from the
      SEC since January 1, 2007. The SEC has not commenced any enforcement proceedings
      against the Company or any of its subsidiaries.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

       

    

    (g) Absence
      of Certain Changes.
      Except
      as disclosed in Schedule 3(g), since March 31, 2008, there has been no material
      adverse change in the business, properties, operations, financial condition
      or
      results of operations of the Company or its Subsidiaries. The Company has not
      taken any steps, and does not currently expect to take any steps, to seek
      protection pursuant to any Bankruptcy Law nor does the Company or any of its
      Subsidiaries have any knowledge or reason to believe that its creditors intend
      to initiate involuntary bankruptcy or
      insolvency proceedings. The Company is financially solvent and is generally
      able
      to pay its debts as they become due. 

    

    (h) Absence
      of Litigation.
      Except
      as disclosed on Schedule 3(h), there is no action, suit, proceeding, inquiry
      or
      investigation before or by any court, public board, government agency,
      self-regulatory organization or body pending or, to the knowledge of the Company
      or any of its Subsidiaries, threatened against or affecting the Company, the
      Common Stock or any of the Company's Subsidiaries or any of the Company's or
      the
      Company's Subsidiaries' officers or directors in their capacities as such,
      which
      could reasonably be expected to have a Material Adverse Effect. A description
      of
      each action, suit, proceeding, inquiry or investigation before or by any court,
      public board, government agency, self-regulatory organization or body which,
      as
      of the date of this Agreement, is pending or threatened in writing against
      or
      affecting the Company, the Common Stock or any of the Company's Subsidiaries
      or
      any of the Company's or the Company's Subsidiaries' officers or directors in
      their capacities as such, is set forth in Schedule 3(h).

    

    (i) Acknowledgment
      Regarding Buyer's Status.
      The
      Company acknowledges and agrees that the Buyer is acting solely in the capacity
      of arm's length purchaser with respect to the Transaction Documents and the
      transactions contemplated hereby and thereby. The Company further acknowledges
      that the Buyer is not acting as a financial advisor or fiduciary of the Company
      (or in any similar capacity) with respect to the Transaction Documents and
      the
      transactions contemplated hereby and thereby and any advice given by the Buyer
      or any of its representatives or agents in connection with the Transaction
      Documents and the transactions contemplated hereby and thereby is merely
      incidental to the Buyer's purchase of the Securities. The Company further
      represents to the Buyer that the Company's decision to enter into the
      Transaction Documents has been based solely on the independent evaluation by
      the
      Company and its representatives and advisors.

    

    (j) No
      General Solicitation.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has engaged in any form of general solicitation or general advertising
      (within the meaning of Regulation D under the 1933 Act) in connection with
      the
      offer or sale of the Securities.

    

    (k) Intellectual
      Property Rights.
      The
      Company and its Subsidiaries own or possess adequate rights or licenses to
      use
      all material trademarks, trade names, service marks, service mark registrations,
      service names, patents, patent rights, copyrights, inventions, licenses,
      approvals, governmental authorizations, trade secrets and rights necessary
      to
      conduct their respective businesses as now conducted. Except as set forth on
      Schedule 3(k), none of the Company's material trademarks, trade names, service
      marks, service mark registrations, service names, patents, patent rights,
      copyrights, inventions, licenses, approvals, government authorizations, trade
      secrets or other intellectual property rights have expired or terminated, or,
      by
      the terms and conditions thereof, could expire or terminate within two years
      from the date of this Agreement. The Company and its Subsidiaries do not have
      any knowledge of any infringement by the Company or its Subsidiaries of any
      material trademark, trade name rights, patents, patent rights, copyrights,
      inventions, licenses, service names, service marks, service mark registrations,
      trade secret or other similar rights of others, or of any such development
      of
      similar or identical trade secrets or technical information by others and,
      except as set forth on Schedule 3(k), there is no claim, action or proceeding
      being made or brought against, or to the Company's knowledge, being threatened
      against, the Company or its Subsidiaries regarding trademark, trade name,
      patents, patent rights, invention, copyright, license, service names, service
      marks, service mark registrations, trade secret or other infringement, which
      could reasonably be expected to have a Material Adverse Effect.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (l) Environmental
      Laws.
      The
      Company and its Subsidiaries (i) are in compliance with any and all applicable
      foreign, federal, state and local laws and regulations relating to the
      protection of human health and safety, the environment or hazardous or toxic
      substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii)
      have received all permits, licenses or other approvals required of them under
      applicable Environmental Laws to conduct their respective businesses and (iii)
      are in compliance with all terms and conditions of any such permit, license
      or
      approval, except where, in each of the three foregoing clauses, the failure
      to
      so comply could not reasonably be expected to have, individually or in the
      aggregate, a Material Adverse Effect.

    

    (m) Title.
      The
      Company and its Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and marketable title to all personal property owned
      by
      them which is material to the business of the Company and its Subsidiaries,
      in
      each case free and clear of all liens, encumbrances and defects except such
      as
      are described in Schedule 3(m) or such as do not materially affect the value
      of
      such property and do not interfere with the use made and proposed to be made
      of
      such property by the Company and any of its Subsidiaries. Any real property
      and
      facilities held under lease by the Company and any of its Subsidiaries are
      held
      by them under valid, subsisting and enforceable leases with such exceptions
      as
      are not material and do not interfere with the use made and proposed to be
      made
      of such property and buildings by the Company and its Subsidiaries.

    

    (n) Insurance.
      The
      Company and each of its Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its Subsidiaries are engaged. Neither the Company
      nor
      any such Subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such Subsidiary has any reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business at a cost that would not materially and
      adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its Subsidiaries, taken as a
      whole.

    

    (o) Regulatory
      Permits.
      The
      Company and its Subsidiaries possess all material certificates, authorizations
      and permits issued by the appropriate federal, state or foreign regulatory
      authorities necessary to conduct their respective businesses, and neither the
      Company nor any such Subsidiary has received any notice of proceedings relating
      to the revocation or modification of any such certificate, authorization or
      permit.

    

    (p) Tax
      Status.
      The
      Company and each of its Subsidiaries has made or filed all federal and state
      income and all other material tax returns, reports and declarations required
      by
      any jurisdiction to which it is subject (unless and only to the extent that
      the
      Company and each of its Subsidiaries has set aside on its books provisions
      reasonably adequate for the payment of all unpaid and unreported taxes) and
      has
      paid all taxes and other governmental assessments and charges that are material
      in amount, shown or determined to be due on such returns, reports and
      declarations, except those being contested in good faith and has set aside
      on
      its books provision reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      There are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and the officers of the Company know of no basis
      for any such claim.

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

       

    

    (q) Transactions
      With Affiliates.
      Except
      as set forth on Schedule 3(q) and other than the grant or exercise of stock
      options disclosed on Schedule 3(c), none of the officers, directors, or
      employees of the Company is presently a party to any transaction with the
      Company or any of its Subsidiaries (other than for services as employees,
      officers and directors), including any contract, agreement or other arrangement
      providing for the furnishing of services to or by, providing for rental of
      real
      or personal property to or from, or otherwise requiring payments to or from
      any
      officer, director or such employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any officer, director,
      or any such employee has an interest or is an officer, director, trustee or
      partner.

    

    (r) Application
      of Takeover Protections.
      The
      Company and its board of directors have taken or will take prior to the
      Commencement Date all necessary action, if any, in order to render inapplicable
      any control share acquisition, business combination, poison pill (including
      any
      distribution under a rights agreement) or other similar anti-takeover provision
      under the Certificate of Incorporation or the laws of the state of its
      incorporation which is or could become applicable to the Buyer as a result
      of
      the transactions contemplated by this Agreement, including, without limitation,
      the Company's issuance of the Securities and the Buyer's ownership of the
      Securities.

    

    (s) Foreign
      Corrupt Practices.
      Neither
      the Company, nor any of its Subsidiaries, nor any director, officer, agent,
      employee or other person acting on behalf of the Company or any of its
      Subsidiaries has, in the course of its actions for, or on behalf of, the
      Company, used any corporate funds for any unlawful contribution, gift,
      entertainment or other unlawful expenses relating to political activity; made
      any direct or indirect unlawful payment to any foreign or domestic government
      official or employee from corporate funds; violated or is in violation of any
      provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or
      made
      any unlawful bribe, rebate, payoff, influence payment, kickback or other
      unlawful payment to any foreign or domestic government official or
      employee.

    

    
      	
            	4.	
              COVENANTS.

            

    

    

    (a) Filing
      of Form 8-K and Registration Statement.
      The
      Company agrees that it shall, within the time required under the 1934 Act file
      a
      Report on Form 8-K disclosing this Agreement and the transaction contemplated
      hereby. The Company shall also file within twenty (20) Business Days from the
      date hereof a new registration statement covering the sale of the Securities
      in
      accordance with the terms of the Registration Rights Agreement between the
      Company and the Buyer, dated as of the date hereof (“Registration Rights
      Agreement”). 

    

    (b) Blue
      Sky.
      The
      Company shall take such action, if any, as is reasonably necessary in order
      to
      obtain an exemption for or to qualify (i) the initial sale of the Commitment
      Shares and any Purchase Shares to the Buyer under this Agreement and (ii) any
      subsequent sale of the Commitment Shares and any Purchase Shares by the Buyer,
      in each case, under applicable securities or "Blue Sky" laws of the states
      of
      the United States in such states as is reasonably requested by the Buyer from
      time to time, and shall provide evidence of any such action so taken to the
      Buyer.

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (c) Listing.
      The
      Company shall promptly secure the listing of all of the Purchase Shares and
      Commitment Shares upon each national securities exchange and automated quotation
      system, if any, upon which shares of Common Stock are then listed (subject
      to
      official notice of issuance) up to an amount that does not exceed the Exchange
      Cap and shall maintain, so long as any other shares of Common Stock shall be
      so
      listed, such listing of all such securities from time to time issuable under
      the
      terms of the Transaction Documents. The Company shall maintain the Common
      Stock's authorization for quotation on the Principal Market. Neither the Company
      nor any of its Subsidiaries shall take any action that would be reasonably
      expected to result in the delisting or suspension of the Common Stock on the
      Principal Market. The Company shall promptly, and in no event later than the
      following Business Day, provide to the Buyer copies of any notices it receives
      from the Principal Market regarding the continued eligibility of the Common
      Stock for listing on such automated quotation system or securities exchange.
      The
      Company shall pay all fees and expenses in connection with satisfying its
      obligations under this Section.

    

    (d) Limitation
      on Short Sales and Hedging Transactions.
      The
      Buyer agrees that beginning on the date of this Agreement and ending on the
      date
      of termination of this Agreement as provided in Section 11(k), the Buyer and
      its
      agents, representatives and affiliates shall not in any manner whatsoever enter
      into or effect, directly or indirectly, any (i) "short sale" (as such term
      is
      defined in Section 242.200 of Regulation SHO of the 1934 Act) of the Common
      Stock or (ii) hedging transaction, which establishes a net short position with
      respect to the Common Stock. 

    

    (e) Issuance
      of Commitment Shares; Limitation on Sales of Commitment Shares.
      Immediately upon the execution of this Agreement, the Company shall issue to
      the
      Buyer as consideration for the Buyer entering into this Agreement 650,000 shares
      of Common Stock (the "Initial Commitment Shares"). In connection with each
      purchase of Purchase Shares hereunder, the Company agrees to issue to the Buyer
      a number of shares of Common Stock (the “Additional Commitment Shares” and
      together with the Initial Commitment Shares, the “Commitment Shares”) equal to
      the product of (x) 650,000 and (y) the Purchase Amount Fraction. The “Purchase
      Amount Fraction” shall mean a fraction, the numerator of which is the Purchase
      Amount purchased by the Buyer with respect to such purchase of Purchase Shares
      and the denominator of which is Thirty Million Dollars ($30,000,000). The
      Additional Commitment Shares shall be equitably adjusted for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar transaction.
      The Initial
      Commitment Shares shall be issued in certificated form and (subject to Section
      5
      hereof) shall bear only the following restrictive legend:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
      IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
      APPLICABLE STATE SECURITIES LAWS.

    

    The
      Buyer
      agrees that the Buyer shall not transfer or sell the Commitment Shares until
      the
      earlier of 500 Business Days (25 Monthly Periods) from the date hereof or the
      date on which this Agreement has been terminated, provided, however, that such
      restrictions shall not apply: (i) in connection with any transfers to or among
      affiliates (as defined in the 1934 Act), (ii) in the event that the Commencement
      does not occur on or before October 1, 2008, due to the failure of the Company
      to satisfy the conditions set forth in Section 7 or (iii) if an Event of Default
      has occurred, or any event which, after notice and/or lapse of time, would
      become an Event of Default, including any failure by the Company to timely
      issue
      Purchase Shares under this Agreement. Notwithstanding the forgoing, the Buyer
      may transfer Commitment Shares to a third party in order to settle a sale made
      by the Buyer where the Buyer reasonably expects the Company to deliver Purchase
      Shares to the Buyer under this Agreement so long as the Buyer maintains
      ownership of the same overall number of shares of Common Stock by "replacing"
      the Commitment Shares so transferred with Purchase Shares when the Purchase
      Shares are actually issued by the Company to the Buyer. 

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (g) Due
      Diligence.
      The
      Buyer shall have the right, from time to time as the Buyer may reasonably deem
      appropriate, to perform reasonable due diligence on the Company during normal
      business hours. The Company and its officers and employees shall provide
      information and reasonably cooperate with the Buyer in connection with any
      reasonable request by the Buyer related to the Buyer's due diligence of the
      Company, including, but not limited to, any such request made by the Buyer
      in
      connection with (i) the filing of the registration statement described in
      Section 4(a) hereof and (ii) the Commencement. Each party hereto agrees not
      to
      disclose any Confidential Information of the other party to any third party
      and
      shall not use the Confidential Information for any purpose other than in
      connection with, or in furtherance of, the transactions contemplated hereby.
      Each party hereto acknowledges that the Confidential Information shall remain
      the property of the disclosing party and agrees that it shall take all
      reasonable measures to protect the secrecy of any Confidential Information
      disclosed by the other party. 

    

    
      	
            	5.	
              TRANSFER
                AGENT INSTRUCTIONS.

            

    

    

    Immediately
      upon the execution of this Agreement, the Company shall deliver to the Transfer
      Agent a letter in the form as set forth as Exhibit
      E
      attached
      hereto with respect to the issuance of the Initial Commitment
      Shares. On
      the
      Commencement Date, the Company shall cause any restrictive legend on the Initial
      Commitment Shares to be removed and all of the Purchase Shares and Additional
      Commitment Shares, to be issued under this Agreement shall be issued without
      any
      restrictive legend unless the Buyer expressly consents otherwise. The Company
      shall issue irrevocable instructions to the Transfer Agent, and any subsequent
      transfer agent, to issue Purchase Shares in the name of the Buyer for the
      Purchase Shares (the "Irrevocable Transfer Agent Instructions"). The Company
      warrants to the Buyer that no instruction other than the Irrevocable Transfer
      Agent Instructions referred to in this Section 5, will be given by the Company
      to the Transfer Agent with respect to the Purchase Shares and that the
      Commitment Shares and
      the
      Purchase Shares shall otherwise be freely transferable on the books and records
      of the Company as and to the extent provided in this Agreement and the
      Registration Rights Agreement subject to the provisions of Section 4(e) in
      the
      case of the Commitment Shares.

    

    
      
        
          	
                	6.	
                  CONDITIONS
                    TO THE COMPANY'S RIGHT TO COMMENCE SALES
                    OF SHARES OF COMMON STOCK UNDER THIS
                    AGREEMENT.

                

        

      

    

     

    The
      right
      of the Company hereunder to commence sales of the Purchase Shares is subject
      to
      the satisfaction of each of the following conditions on or before the
      Commencement Date (the date that the Company may begin sales):

    

    (a) The
      Buyer
      shall have executed each of the Transaction Documents and delivered the same
      to
      the Company; 

     

    (b) A
      registration statement covering the sale of all of the Commitment
      Shares and Purchase Shares shall have been declared
      effective under the 1933 Act by the SEC and no stop order with respect to the
      registration statement shall be pending or threatened by the SEC.

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    (c) The
      representations and warranties of the Buyer shall be true and correct in all
      material respects as of the date when made and as of the Commencement Date
      as
      though made at that time (except for representations and warranties that speak
      as of a specific date), and the Buyer shall have performed, satisfied and
      complied in all material respects with the covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Buyer at or prior to the Commencement Date. 

    

    
      
        
          	
                	7.	
                  CONDITIONS
                    TO THE BUYER'S OBLIGATION TO MAKE PURCHASES
                    OF SHARES OF COMMON
                    STOCK.

                

        

      

    

     

    The
      obligation of the Buyer to buy Purchase Shares under this Agreement is subject
      to the satisfaction of each of the following conditions on or before the
      Commencement Date (the date that the Company may begin sales) and once such
      conditions have been initially satisfied, there shall not be any ongoing
      obligation to satisfy such conditions after the Commencement has
      occurred:

    

    (a) The
      Company shall have executed each of the Transaction Documents and delivered
      the
      same to the Buyer;

    

    (b) The
      Company shall have issued to the Buyer the Initial Commitment Shares and shall
      have removed the restrictive transfer legend from the certificate representing
      the Initial Commitment Shares; 

    

    (c) The
      Common Stock shall be authorized for quotation on the Principal Market, trading
      in the Common Stock shall not have been within the last 365 days suspended
      by
      the SEC or the Principal Market and the Purchase Shares and the Commitment
      Shares shall be approved for listing upon the Principal Market up to the
      Exchange Cap;

    

    (d) The
      Buyer
      shall have received the opinions of the Company's legal counsel dated as of
      the
      Commencement Date substantially in the form of Exhibit
      A
      attached
      hereto;

    

    (e) The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Commencement
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied with the covenants, agreements and conditions required by the
      Transaction Documents to be performed, satisfied or complied with by the Company
      at or prior to the Commencement Date. The Buyer shall have received a
      certificate, executed by the CEO, President or CFO of the Company, dated as
      of
      the Commencement Date, to the foregoing effect in the form attached hereto
      as
Exhibit
      B;

    

    (f) The
      Board
      of Directors of the Company shall have adopted resolutions in the form attached
      hereto as Exhibit
      C
      which
      shall be in full force and effect without any amendment or supplement thereto
      as
      of the Commencement Date; 

     

    (g) As
      of the Commencement Date, the Company shall have reserved out of its authorized
      and unissued Common Stock, (A) solely for the purpose of effecting purchases
      of
      Purchase Shares hereunder, 13,516,757 shares of Common Stock and (B) as
      Additional Commitment Shares in accordance with Section 4(e) hereof, 650,000
      shares of Common Stock;

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (h) The
      Irrevocable Transfer Agent Instructions, in form acceptable to the Buyer shall
      have been delivered to and acknowledged in writing by the Company and the
      Company's Transfer Agent;

    

    (i) The
      Company shall have delivered to the Buyer a certificate evidencing the
      incorporation and good standing of the Company in the State of Delaware issued
      by the Secretary of State of the State of Delaware as of a date within ten
      (10)
      Business Days of the Commencement Date; 

    

    (j) The
      Company shall have delivered to the Buyer a certified copy of the Certificate
      of
      Incorporation as certified by the Secretary of State of the State of Delaware
      within ten (10) Business Days of the Commencement Date;

    

    (k) The
      Company shall have delivered to the Buyer a secretary's certificate executed
      by
      the Secretary of the Company, dated as of the Commencement Date, in the form
      attached hereto as Exhibit
      D;

    

    (l) A
      registration statement covering the sale of all of the Commitment
      Shares and
      Purchase Shares shall have been declared effective under the 1933 Act by the
      SEC
      and no stop order with respect to the registration statement shall be pending
      or
      threatened by the SEC. The Company shall have prepared and delivered to the
      Buyer a final and complete form of prospectus, dated and current as of the
      Commencement Date, to be used by the Buyer in connection with any sales of
      any
      Commitment Shares or any Purchase Shares, and to be filed by the Company one
      Business Day after the Commencement Date. The Company shall have made all
      filings under all applicable federal and state securities laws necessary to
      consummate the issuance of the Commitment Shares and the Purchase Shares
      pursuant to this Agreement in compliance with such laws;

    

    (m) No
      Event
      of Default has occurred, or any event which, after notice and/or lapse of time,
      would become an Event of Default has occurred;

    

    (n) On
      or
      prior to the Commencement Date, the Company shall take all necessary action,
      if
      any, and such actions as reasonably requested by the Buyer, in order to render
      inapplicable any control share acquisition, business combination, shareholder
      rights plan or poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Certificate of Incorporation
      or the laws of the state of its incorporation which is or could become
      applicable to the Buyer as a result of the transactions contemplated by this
      Agreement, including, without limitation, the Company's issuance of the
      Securities and the Buyer's ownership of the Securities; and

    

    (o) The
      Company shall have provided the Buyer with the information requested by the
      Buyer in connection with its due diligence requests made prior to, or in
      connection with, the Commencement, in accordance with the terms of Section
      4(g)
      hereof.

    

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    

    
      
        
          	
                	8.	
                  INDEMNIFICATION.
                    

                

        

      

    

    

    In
      consideration of the Buyer's execution and delivery of the Transaction Documents
      and acquiring the Securities hereunder and in addition to all of the Company's
      other obligations under the Transaction Documents, the Company shall defend,
      protect, indemnify and hold harmless the Buyer and all of its affiliates,
      shareholders, officers, directors, employees and direct or indirect investors
      and any of the foregoing person's agents or other representatives (including,
      without limitation, those retained in connection with the transactions
      contemplated by this Agreement) (collectively, the "Indemnitees") from and
      against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys' fees
      and disbursements (the "Indemnified Liabilities"), incurred by any Indemnitee
      as
      a result of, or arising out of, or relating to (a) any misrepresentation or
      breach of any representation or warranty made by the Company in the Transaction
      Documents or any other certificate, instrument or document contemplated hereby
      or thereby, (b) any breach of any covenant, agreement or obligation of the
      Company contained in the Transaction Documents or any other certificate,
      instrument or document contemplated hereby or thereby, or (c) any cause of
      action, suit or claim brought or made against such Indemnitee and arising out
      of
      or resulting from the execution, delivery, performance or enforcement of the
      Transaction Documents or any other certificate, instrument or document
      contemplated hereby or thereby, other than with respect to Indemnified
      Liabilities which directly and primarily result from the gross negligence or
      willful misconduct of the Indemnitee. To the extent that the foregoing
      undertaking by the Company may be unenforceable for any reason, the Company
      shall make the maximum contribution to the payment and satisfaction of each
      of
      the Indemnified Liabilities which is permissible under applicable
      law.

    

    
      	
            	9.	
              EVENTS
                OF DEFAULT. 

            

    

    

    An
      "Event
      of Default" shall be deemed to have occurred at any time as any of the following
      events occurs:

    

    (a) while
      any
      registration statement is required to be maintained effective pursuant to the
      terms of the Registration Rights Agreement, the effectiveness of such
      registration statement lapses for any reason (including, without limitation,
      the
      issuance of a stop order) or is unavailable to the Buyer for sale of all of
      the
      Registrable Securities (as defined in the Registration Rights Agreement) in
      accordance with the terms of the Registration Rights Agreement, and such lapse
      or unavailability continues for a period of ten (10) consecutive Business Days
      or for more than an aggregate of thirty (30) Business Days in any 365-day
      period;

    

    (b) the
      suspension from trading or failure of the Common Stock to be listed on the
      Principal Market for a period of three (3) consecutive Business
      Days;

    

    (c) the
      delisting of the Company’s Common Stock from the Principal Market, provided,
      however, that the Common Stock is not immediately thereafter trading on the
      New
      York Stock Exchange, the Nasdaq Global Market, the Nasdaq Capital Market, or
      the
      OTC Bulletin Board, or the American Stock Exchange;

    

    (d) the
      failure for any reason by the Transfer Agent to issue Purchase Shares to the
      Buyer within five (5) Business Days after the applicable Purchase Date which
      the
      Buyer is entitled to receive;

    

    (e) the
      Company breaches any representation, warranty, covenant or other term or
      condition under any Transaction Document if such breach could have a Material
      Adverse Effect and except, in the case of a breach of a covenant which is
      reasonably curable, only if such breach continues for a period of at least
      ten
      (10) Business Days;

     

    (f) if
      any Person commences a proceeding against the Company pursuant to or within
      the
      meaning of any Bankruptcy Law; 

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (g) if
      the
      Company pursuant to or within the meaning of any Bankruptcy Law; (A) commences
      a
      voluntary case, (B) consents to the entry of an order for relief against it
      in
      an involuntary case, (C) consents to the appointment of a Custodian of it or
      for
      all or substantially all of its property, (D) makes a general assignment for
      the
      benefit of its creditors, (E) becomes insolvent, or (F) is generally unable
      to
      pay its debts as the same become due; 

    

    (h) a
      court
      of competent jurisdiction enters an order or decree under any Bankruptcy Law
      that (A) is for relief against the Company in an involuntary case, (B) appoints
      a Custodian of the Company or for all or substantially all of its property,
      or
      (C) orders the liquidation of the Company or any Subsidiary; or 

    

    (j) if
      at any
      time after the Commencement Date, the "Exchange Cap" is reached. The "Exchange
      Cap" shall be deemed to be reached at such time if, upon submission of a
      Purchase Notice under this Agreement, the issuance of such shares of Common
      Stock would exceed that number of shares of Common Stock which the Company
      may
      issue under this Agreement without breaching the Company's obligations under
      the
      rules or regulations of the Principal Market). 

    

    In
      addition to any other rights and remedies under applicable law and this
      Agreement, including the Buyer termination rights under Section 11(k) hereof,
      so
      long as an Event of Default has occurred and is continuing, or if any event
      which, after notice and/or lapse of time, would become an Event of Default,
      has
      occurred and is continuing, or so long as the Purchase Price is below the
      Purchase Price Floor, the Buyer shall not be obligated to purchase any shares
      of
      Common Stock under this Agreement. If pursuant to or within the meaning of
      any
      Bankruptcy Law, the Company commences a voluntary case or any Person commences
      a
      proceeding against the Company, a Custodian is appointed for the Company or
      for
      all or substantially all of its property, or the Company makes a general
      assignment for the benefit of its creditors, (any of which would be an Event
      of
      Default as described in Sections 9(f), 9(g) and 9(h) hereof)
      this Agreement shall automatically terminate without any liability or payment
      to
      the Company without further action or notice by any Person. No such termination
      of this Agreement under Section 11(k)(i) shall affect the Company's or the
      Buyer's obligations under this Agreement with respect to pending purchases
      and
      the Company and the Buyer shall complete their respective obligations with
      respect to any pending purchases under this Agreement.

    

    
      	
            	10.	
              CERTAIN
                DEFINED TERMS. 

            

    

    

    For
      purposes of this Agreement, the following terms shall have the following
      meanings:

    

    (a) “1933
      Act” means the Securities Act of 1933, as amended.

    

    (b) “Available
      Amount” means initially Thirty Million Dollars ($30,000,000) in the aggregate
      which amount shall be reduced by the Purchase Amount each time the Buyer
      purchases shares of Common Stock pursuant to Section 1 hereof.

     

    (c) “Bankruptcy
      Law” means Title 11, U.S. Code, or any similar federal or state law for the
      relief of debtors. 

    

    (d)
       “Base
      Purchase Notice” shall mean an irrevocable written notice from the Company to
      the Buyer directing the Buyer to buy up to the Base Purchase Amount in Purchase
      Shares as specified by the Company therein at the applicable Purchase Price
      on
      the Purchase Date. 

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    (e) “Block
      Purchase Amount” shall mean such Block Purchase Amount as specified by the
      Company in a Block Purchase Notice subject to Section 1(b) hereof.

    

    (f) “Block
      Purchase Notice” shall mean an irrevocable written notice from the Company to
      the Buyer directing the Buyer to buy the Block Purchase Amount in Purchase
      Shares as specified by the Company therein at the Block Purchase Price as of
      the
      Purchase Date subject to Section 1 hereof.

    

    (g) “Business
      Day” means any day on which the Principal Market is open for trading including
      any day on which the Principal Market is open for trading for a period of time
      less than the customary time. 

    

    (h) “Closing
      Sale Price” means, for any security as of any date, the last closing trade price
      for such security on the Principal Market as reported by the Principal Market,
      or, if the Principal Market is not the principal securities exchange or trading
      market for such security, the last closing trade price of such security on
      the
      principal securities exchange or trading market where such security is listed
      or
      traded as reported by the Principal Market. 

    

    (i) “Confidential
      Information” means any information disclosed by either party to the other party,
      either directly or indirectly, in writing, orally or by inspection of tangible
      objects (including, without limitation, documents, prototypes, samples, plant
      and equipment), which is designated as "Confidential," "Proprietary" or some
      similar designation. Information communicated orally shall be considered
      Confidential Information if such information is confirmed in writing as being
      Confidential Information within ten (10) Business Days after the initial
      disclosure. Confidential Information may also include information disclosed
      to a
      disclosing party by third parties. Confidential Information shall not, however,
      include any information which (i) was publicly known and made generally
      available in the public domain prior to the time of disclosure by the disclosing
      party; (ii) becomes publicly known and made generally available after disclosure
      by the disclosing party to the receiving party through no action or inaction
      of
      the receiving party; (iii) is already in the possession of the receiving party
      at the time of disclosure by the disclosing party as shown by the receiving
      party’s files and records immediately prior to the time of disclosure; (iv) is
      obtained by the receiving party from a third party without a breach of such
      third party’s obligations of confidentiality; (v) is independently developed by
      the receiving party without use of or reference to the disclosing party’s
      Confidential Information, as shown by documents and other competent evidence
      in
      the receiving party’s possession; or (vi) is required by law to be disclosed by
      the receiving party, provided that the receiving party gives the disclosing
      party prompt written notice of such requirement prior to such disclosure and
      assistance in obtaining an order protecting the information from public
      disclosure. 

    

    (j) “Custodian”
      means any receiver, trustee, assignee, liquidator or similar official under
      any
      Bankruptcy Law. 

    

    (k) “Maturity
      Date” means the date that is 500 Business Days (25 Monthly Periods) from the
      Commencement Date. 

     

    (l) “Monthly
      Period” means each successive 20 Business Day period commencing with the
      Commencement Date. 

    

    (m) “Person”
      means an individual or entity including any limited liability company, a
      partnership, a joint venture, a corporation, a trust, an unincorporated
      organization and a government or any department or agency thereof. 

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    (n) “Principal
      Market” means the American Stock Exchange; provided however, that in the event
      the Company’s Common Stock is ever listed or traded on the OTC Bulletin Board,
      the Nasdaq Global Market, the Nasdaq Capital Market or the New York Stock
      Exchange, than the “Principal Market” shall mean such other market or exchange
      on which the Company’s Common Stock is then listed or traded. 

    

    (o) “Purchase
      Amount” means, with respect to any particular purchase made hereunder, the
      portion of the Available Amount to be purchased by the Buyer pursuant to Section
      1 hereof as set forth in a valid Base Purchase Notice or a valid Block Purchase
      Notice which the Company delivers to the Buyer. 

    

    (p) “Purchase
      Date” means with respect to any particular purchase made hereunder, the Business
      Day after receipt by the Buyer of a valid Base Purchase Notice or a valid Block
      Purchase Notice that the Buyer is to buy Purchase Shares pursuant to Section
      1
      hereof. 

    

    (q) “Purchase
      Price” means the lower of the (A) the lowest Sale Price of the Common Stock on
      the Purchase Date and (B) the arithmetic average of the three (3) lowest Closing
      Sale Prices for the Common Stock during the twelve (12) consecutive Business
      Days ending on the Business Day immediately preceding such Purchase Date (to
      be
      appropriately adjusted for any reorganization, recapitalization, non-cash
      dividend, stock split or other similar transaction). 

    

    (u) “Sale
      Price” means, any trade price for the shares of Common Stock on the Principal
      Market as reported by the Principal Market. 

    

    (r) “SEC”
      means the United States Securities and Exchange Commission. 

    

    (s) “Transfer
      Agent” means the transfer agent of the Company as set forth in Section 11(f)
      hereof or such other person who is then serving as the transfer agent for the
      Company in respect of the Common Stock.

    

    

    
      	
            	11.	
              MISCELLANEOUS.

            

    

    

    (a) Governing
      Law; Jurisdiction; Jury Trial.
      The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Company and its shareholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement and the other Transaction Documents shall be governed by the internal
      laws of the State of Illinois, without giving effect to any choice of law or
      conflict of law provision or rule (whether of the State of Illinois or any
      other
      jurisdictions) that would cause the application of the laws of any jurisdictions
      other than the State of Illinois. Each party hereby irrevocably submits to
      the
      exclusive jurisdiction of the state and federal courts sitting in the City
      of
      Chicago, for the adjudication of any dispute hereunder or under the other
      Transaction Documents or in connection herewith or therewith, or with any
      transaction contemplated hereby or discussed herein, and hereby irrevocably
      waives, and agrees not to assert in any suit, action or proceeding, any claim
      that it is not personally subject to the jurisdiction of any such court, that
      such suit, action or proceeding is brought in an inconvenient forum or that
      the
      venue of such suit, action or proceeding is improper. Each party hereby
      irrevocably waives personal service of process and consents to process being
      served in any such suit, action or proceeding by mailing a copy thereof to
      such
      party at the address for such notices to it under this Agreement and agrees
      that
      such service shall constitute good and sufficient service of process and notice
      thereof. Nothing contained herein shall be deemed to limit in any way any right
      to serve process in any manner permitted by law. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

    

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (b) Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      shall be considered one and the same agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other party;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

    

    (c) Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

    

    (d) Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

    

    (e) Entire
      Agreement.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyer, the Company, their affiliates and persons acting on their behalf with
      respect to the matters discussed herein, and this Agreement, the other
      Transaction Documents and the instruments referenced herein contain the entire
      understanding of the parties with respect to the matters covered herein and
      therein and, except as specifically set forth herein or therein, neither the
      Company nor the Buyer makes any representation, warranty, covenant or
      undertaking with respect to such matters. The Company acknowledges and agrees
      that is has not relied on, in any manner whatsoever, any representations or
      statements, written or oral, other than as expressly set forth in this
      Agreement.

    

    (f) Notices.
      Any
      notices, consents or other communications required or permitted to be given
      under the terms of this Agreement must be in writing and will be deemed to
      have
      been delivered: (i) upon receipt when delivered personally; (ii) upon receipt
      when sent by facsimile (provided confirmation of transmission is mechanically
      or
      electronically generated and kept on file by the sending party); or (iii) one
      Business Day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

     

    
      If
        to the
        Company:

      Hemispherx
        Biopharma, Inc.

      1617
        JFK
        Blvd., Suite 660

      Philadelphia,
        PA 19103

      Telephone:        
        215-988-0080

      Facsimile:         
        215-988-1739

      Attention:         
        Chief
        Executive Officer

      

      With
        a
        copy to:

      Silverman
        Sclar Shin & Byrne PLLC

      381
        Park
        Ave. South, Suite 1601

      New
        York,
        NY 10016

      Telephone:        
        212-779-8600

      Facsimile:         
        212-779-8858

      Attention:         
        Richard
        Feiner 

       

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

       

      If
        to the
        Buyer:

      Fusion
        Capital Fund II, LLC

      222
        Merchandise Mart Plaza, Suite 9-112

      Chicago,
        IL 60654

      Telephone:        
        312-644-6644

      Facsimile:         
        312-644-6244

      Attention:         
        Steven
        G.
        Martin

      

      If
        to the
        Transfer Agent:

         Continental
        Stock Transfer & Trust Co 

      17
        Battery Place

      8th
        Floor

      New
        York,
        NY 10004

      Telephone:        
        212-509-4000 

      Facsimile:         
        212-509-5150 

      Attention:         
        Bill
        Seegraber  

    

     

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) Business Days prior to the effectiveness of such change.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent or other communication, (B) mechanically or electronically generated
      by
      the sender's facsimile machine containing the time, date, and recipient
      facsimile number or (C) provided by a nationally recognized overnight delivery
      service, shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (i), (ii) or (iii) above, respectively.

    

    (g) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns. The Company shall not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of the Buyer, including by merger or consolidation. The Buyer may not
      assign its rights or obligations under this Agreement.

    

    (h) No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person.

    

    (i) Publicity.
      The
      Buyer shall have the right to approve before issuance any press release, SEC
      filing or any other public disclosure made by or on behalf of the Company
      whatsoever with respect to, in any manner, the Buyer, its purchases hereunder
      or
      any aspect of this Agreement or the transactions contemplated hereby, provided,
      however, that the Company shall be entitled, without the prior approval of
      the
      Buyer, to make any press release or other public disclosure (including any
      filings with the SEC) with respect to such transactions as is required by
      applicable law and regulations so long as the Company and its counsel provide
      the Buyer with a copy of such press release or other public disclosure at least
      one (1) Business Day prior to its release. The Company agrees and acknowledges
      that its failure to fully comply with this provision constitutes a material
      adverse effect on its ability to perform its obligations under this Agreement.
      

     

    (j) Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    (k) Termination.
      This
      Agreement may be terminated only as follows: 

    

    (i) By
      the
      Buyer any time an Event of Default exists without any liability or payment
      to
      the Company. However, if pursuant to or within the meaning of any Bankruptcy
      Law, the Company commences a voluntary case or any Person commences a proceeding
      against the Company, a Custodian is appointed for the Company or for all or
      substantially all of its property, or the Company makes a general assignment
      for
      the benefit of its creditors, (any of which would be an Event of Default as
      described in Sections 9(f), 9(g) and 9(h) hereof) this Agreement shall
      automatically terminate without any liability or payment to the Company without
      further action or notice by any Person. No such termination of this Agreement
      under this Section 11(k)(i) shall affect the Company's or the Buyer's
      obligations under this Agreement with respect to pending purchases and the
      Company and the Buyer shall complete their respective obligations with respect
      to any pending purchases under this Agreement. 

    

    (ii) In
      the
      event that the Commencement shall not have occurred, the Company shall have
      the
      option to terminate this Agreement for any reason or for no reason without
      any
      liability whatsoever of any party to any other party under this
      Agreement.

    

    (iii) In
      the
      event that the Commencement shall not have occurred on or before October 1,
      2008, due to the failure to satisfy the conditions set forth in Sections 6
      and 7
      above with respect to the Commencement, the nonbreaching party shall have the
      option to terminate this Agreement at the close of business on such date or
      thereafter without liability of any party to any other party. 

    

    

    (iv) 
      At any
      time after the Commencement Date, the Company shall have the option to terminate
      this Agreement for any reason or for no reason by delivering notice (a “Company
      Termination Notice”) to the Buyer electing to terminate this Agreement without
      any liability whatsoever of any party to any other party under this Agreement.
      The Company Termination Notice shall not be effective until one (1) Business
      Day
      after it has been received by the Buyer. 

    

    (v) This
      Agreement shall automatically terminate on the date that the Company sells
      and
      the Buyer purchases the full Available Amount as provided herein, without any
      action or notice on the part of any party and without any liability whatsoever
      of any party to any other party under this Agreement.

    

    (vi) If
      by the
      Maturity Date for any reason or for no reason the full Available Amount under
      this Agreement has not been purchased as provided for in Section 1 of this
      Agreement, this Agreement shall automatically terminate on the Maturity Date,
      without any action or notice on the part of any party and without any liability
      whatsoever of any party to any other party under this Agreement. 

     

    Except
      as
      set forth in Sections 11(k)(i) (in respect of an Event of Default under Sections
      9(f), 9(g) and 9(h)) and 11(k)(vi), any termination of this Agreement pursuant
      to this Section 11(k) shall be effected by written notice from the Company
      to
      the Buyer, or the Buyer to the Company, as the case may be, setting forth the
      basis for the termination hereof. The representations and warranties of the
      Company and the Buyer contained in Sections 2, 3 and 5 hereof, the
      indemnification provisions set forth in Section 8 hereof and the agreements
      and
      covenants set forth in Section 11,
      shall
      survive the Commencement and any termination of this Agreement. No termination
      of this Agreement shall affect the Company's or the Buyer's rights or
      obligations (i) under the Registration Rights Agreement which shall survive
      any
      such termination or (ii) under this Agreement with respect to pending purchases
      and the Company and the Buyer shall complete their respective obligations with
      respect to any pending purchases under this Agreement. 

     

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    (l) No
      Financial Advisor, Placement Agent, Broker or Finder.
      The
      Company represents and warrants to the Buyer that it has not engaged any
      financial advisor, placement agent, broker or finder in connection with the
      transactions contemplated hereby. The Buyer represents and warrants to the
      Company that it has not engaged any financial advisor, placement agent, broker
      or finder in connection with the transactions contemplated hereby. The Company
      shall be responsible for the payment of any fees or commissions, if any, of
      any
      financial advisor, placement agent, broker or finder relating to or arising
      out
      of the transactions contemplated hereby. The Company shall pay, and hold the
      Buyer harmless against, any liability, loss or expense (including, without
      limitation, attorneys' fees and out of pocket expenses) arising in connection
      with any such claim.

    

    (m) No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

    

    (n) Remedies,
      Other Obligations, Breaches and Injunctive Relief.
      The
      Buyer’s remedies provided in this Agreement shall be cumulative and in addition
      to all other remedies available to the Buyer under this Agreement, at law or
      in
      equity (including a decree of specific performance and/or other injunctive
      relief), no remedy of the Buyer contained herein shall be deemed a waiver of
      compliance with the provisions giving rise to such remedy and nothing herein
      shall limit the Buyer's right to pursue actual damages for any failure by the
      Company to comply with the terms of this Agreement. The Company acknowledges
      that a breach by it of its obligations hereunder will cause irreparable harm
      to
      the Buyer and that the remedy at law for any such breach may be inadequate.
      The
      Company therefore agrees that, in the event of any such breach or threatened
      breach, the Buyer shall be entitled, in addition to all other available
      remedies, to an injunction restraining any breach, without the necessity of
      showing economic loss and without any bond or other security being
      required.

    

    (o) Enforcement
      Costs.
      If: (i)
      this Agreement is placed by the Buyer in the hands of an attorney for
      enforcement or is enforced by the Buyer through any legal proceeding; or (ii)
      an
      attorney is retained to represent the Buyer in any bankruptcy, reorganization,
      receivership or other proceedings affecting creditors' rights and involving
      a
      claim under this Agreement; or (iii) an attorney is retained to represent the
      Buyer in any other proceedings whatsoever in connection with this Agreement,
      then the Company shall pay to the Buyer, as incurred by the Buyer, all
      reasonable costs and expenses including attorneys' fees incurred in connection
      therewith, in addition to all other amounts due hereunder.

     

    (p) Failure
      or Indulgence Not Waiver.
      No
      failure or delay in the exercise of any power, right or privilege hereunder
      shall operate as a waiver thereof, nor shall any single or partial exercise
      of
      any such power, right or privilege preclude other or further exercise thereof
      or
      of any other right, power or privilege.

    

    *    
      *     *     *    
*

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Buyer and the Company have caused this Common Stock Purchase Agreement to be
      duly executed as of the date first written above.

    

      
        	
                THE
                  COMPANY:

              
	 	 
	
                HEMISPHERX
                  BIOPHARMA, INC.

              
	 	 
	
                By:

              	
                s/
                  William A. Carter

              
	
                Name:
                  William A. Carter, M.D.

              
	
                Title:
                  Chairman and CEO

              
	 	 
	
                BUYER:

              
	 	 
	
                FUSION
                  CAPITAL FUND II, LLC

              
	
                BY:
                  FUSION CAPITAL PARTNERS, LLC

              
	
                BY:
                  ROCKLEDGE CAPITAL CORPORATION

              
	 	 
	
                By:

              	
                s/Joshua
                  B. Scheinfeld

              
	
                Name:
                  Joshua B. Scheinfeld

              
	
                Title:
                  President

              

      

       

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

    

    
      	
              SCHEDULES

            
	 	 	 
	
              Schedule
                3(a)

            	 	
              Subsidiaries

            
	
              Schedule
                3(c)

            	 	
              Capitalization

            
	
              Schedule
                3(e)

            	 	
              Conflicts

            
	
              Schedule
                3(f)

            	 	
              1934
                Act Filings

            
	
              Schedule
                3(g)

            	 	
              Material
                Changes

            
	
              Schedule
                3(h)

            	 	
              Litigation

            
	
              Schedule
                3(k)

            	 	
              Intellectual
                Property

            
	
              Schedule
                3(m)

            	 	
              Liens

            
	
              Schedule
                3(q)

            	 	
              Certain
                Transactions

            
	 	 	 
	
              EXHIBITS

            
	 	 	 
	
              Exhibit
                A

            	 	
              Form
                of Company Counsel Opinion

            
	
              Exhibit
                B

            	 	
              Form
                of Officer’s Certificate

            
	
              Exhibit
                C

            	 	
              Form
                of Resolutions of Board of Directors of the Company

            
	
              Exhibit
                D

            	 	
              Form
                of Secretary’s Certificate

            
	
              Exhibit
                E

            	 	
              Form
                of Letter to Transfer Agent

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    DISCLOSURE
      SCHEDULES

    

    Schedule
      3(a) – Subsidiaries

    

    Schedule
      3(c) - Capitalization

    

    Schedule
      3(e) - No Conflicts

    

    Schedule
      3(f) - 1934 Act Filings

    

    Schedule
      3(g) - Absence of Certain Changes

    

    Schedule
      3(h) - Litigation

    

    Schedule
      3(k) - Intellectual Property Rights

    

    Schedule
      3(m) - Title

    

    Schedule
      3(q) - Transactions with Affiliates

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF COMPANY COUNSEL OPINION

    

    Capitalized
      terms used herein but not defined herein, have the meaning set forth in the
      Common Stock Purchase Agreement. Based on the foregoing, and subject to the
      assumptions and qualifications set forth herein, we are of the opinion
      that:

    

    1. The
      Company is a corporation existing and in good standing under the laws of the
      State of Delaware. The Company is qualified to do business as a foreign
      corporation and is in good standing in the State of Pennsylvania.

     

    2. The
      Company has the corporate power to execute and deliver, and perform its
      obligations under, each Transaction Document to which it is a party. The Company
      has the corporate power to conduct its business as, to the best of our
      knowledge, it is now conducted, and to own and use the properties owned and
      used
      by it.

     

    3. The
      execution, delivery and performance by the Company of the Transaction Documents
      to which it is a party have been duly authorized by all necessary corporate
      action on the part of the Company. The execution and delivery of the Transaction
      Documents by the Company, the performance of the obligations of the Company
      thereunder and the consummation by it of the transactions contemplated therein
      have been duly authorized and approved by the Company's Board of Directors
      and
      no further consent, approval or authorization of the Company, its Board of
      Directors or its stockholders is required, except as contemplated in the
      Transaction Documents. The Transaction Documents to which the Company is a
      party
      have been duly executed and delivered by the Company and are the valid and
      binding obligations of the Company, enforceable against the Company in
      accordance with their terms except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting creditor’s rights and remedies.

     

    4. The
      execution, delivery and performance by the Company of the Transaction Documents,
      the consummation by the Company of the transactions contemplated thereby
      including the offering, sale and issuance of the Commitment Shares, and the
      Purchase Shares in accordance with the terms and conditions of the Common Stock
      Purchase Agreement, and fulfillment and compliance with terms of the Transaction
      Documents, does not and shall not: (i) conflict with, constitute a breach
      of or default (or an event which, with the giving of notice or lapse of time
      or
      both, constitutes or could constitute a breach or a default), under (a) the
      Certificate of Incorporation or the Bylaws of the Company, (b) any material
      agreement, note, lease, mortgage, deed or other material instrument to which
      to
      our knowledge the Company is a party or by which the Company or any of its
      assets are bound, (ii) result in any violation of any statute, law, rule or
      regulation applicable to the Company, or (iii) to our knowledge, violate any
      order, writ, injunction or decree applicable to the Company or any of its
      subsidiaries.

     

    5. The
      issuance of Purchase Shares and Commitment Shares pursuant to the terms and
      conditions of the Transaction Documents has been duly authorized up to the
      Exchange Cap and Commitment Shares are validly issued, fully paid and
      non-assessable, to our knowledge, free of all taxes, liens, charges,
      restrictions, rights of first refusal and preemptive rights. 14,816,757 shares
      of Common Stock have been properly reserved for issuance under the Common Stock
      Purchase Agreement. When issued and paid for in accordance with the Common
      Stock
      Purchase Agreement, the Purchase Shares shall be validly issued, fully paid
      and
      non-assessable, to our knowledge, free of all taxes, liens, charges,
      restrictions, rights of first refusal and preemptive rights. 650,000 shares
      of
      Common Stock have been properly reserved for issuance as Additional Commitment
      Shares under the Common Stock Purchase Agreement. When issued in accordance
      with
      the Common Stock Purchase Agreement, the Additional Commitment Shares shall
      be
      validly issued, fully paid and non-assessable, to our knowledge, free of all
      taxes, liens, charges, restrictions, rights of first refusal and preemptive
      rights. To
      our
      knowledge, the execution and delivery of the Registration Rights Agreement
      do
      not, and the performance by the Company of its obligations thereunder shall
      not,
      give rise to any rights of any other person for the registration under the
      1933
      Act of any shares of Common Stock or other securities of the Company which
      have
      not been waived.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    6. As
      of the
      date hereof, the authorized capital stock of the Company consists of _______
      shares of common stock, par value $______ per share, of which to our knowledge
      __________ shares are issued and outstanding. Except as set forth on Schedule
      3(c) of the Common Stock Purchase Agreement, to our knowledge, there are no
      outstanding shares of capital stock or other securities convertible into or
      exchangeable or exercisable for shares of the capital stock of the
      Company.

     

    7. Assuming
      the accuracy of the representations and your compliance with the covenants
      made
      by you in the Transaction Documents, the offering, sale and issuance of the
      Commitment Shares to you pursuant to the Transaction Documents is exempt from
      registration under the 1933 Act and the securities laws and regulations of
      the
      States of Delaware, Pennsylvania and Illinois.

     

    8. Other
      than that which has been obtained and completed prior to the date hereof, no
      authorization, approval, consent, filing or other order of any federal or state
      governmental body, regulatory agency, or stock exchange or market, or any court,
      or, to our knowledge, any third party is required to be obtained by the Company
      to enter into and perform its obligations under the Transaction Documents or
      for
      the Company to issue and sell the Purchase Shares as contemplated by the
      Transaction Documents.

     

    9.
      The
      Common Stock is registered pursuant to Section 12(g) of the 1934 Act. To our
      knowledge, since January 1, 2007, the Company has been in compliance with the
      reporting requirements of the 1934 Act applicable to it. To our knowledge,
      since
      January 1, 2007, the Company has not received any written notice from the
      Principal Market stating that the Company has not been in compliance with any
      of
      the rules and regulations (including the requirements for continued listing)
      of
      the Principal Market.

     

    We
      further advise you that to our knowledge, except as disclosed on Schedule 3(h)
      in the Common Stock Purchase Agreement, there is no action, suit, proceeding,
      inquiry or investigation before or by any court, public board or body, any
      governmental agency, any stock exchange or market, or self-regulatory
      organization, which has been threatened in writing or which is currently pending
      against the Company, any of its subsidiaries, any officers or directors of
      the
      Company or any of its subsidiaries or any of the properties of the Company
      or
      any of its subsidiaries. 

    

    In
      addition, we have participated in the preparation of the Registration Statement
      (SEC File #________) covering the sale of the Purchase Shares, the Commitment
      Shares including the prospectus dated ____________, contained therein and in
      conferences with officers and other representatives of the Company (including
      the Company’s independent auditors) during which the contents of the
      Registration Statement and related matters were discussed and reviewed and,
      although we are not passing upon and do not assume any responsibility for the
      accuracy, completeness or fairness of the statements contained in the
      Registration Statement, on the basis of the information that was developed
      in
      the course of the performance of the services referred to above, considered
      in
      the light of our understanding of the applicable law, nothing came to our
      attention that caused us to believe that the Registration Statement (other
      than
      the financial statements and schedules and the other financial and statistical
      data included therein, as to which we express no belief), as of their dates,
      contained any untrue statement of a material fact or omitted to state any
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    FORM
      OF OFFICER’S CERTIFICATE

    

    This
      Officer’s Certificate (“Certificate”)
      is
      being delivered pursuant to Section 7(e) of that certain Common Stock Purchase
      Agreement dated as of _________, (“Common
      Stock Purchase Agreement”),
      by
      and between HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Company”),
      and
FUSION
      CAPITAL FUND II, LLC (the
      “Buyer”).
      Terms
      used herein and not otherwise defined shall have the meanings ascribed to them
      in the Common Stock Purchase Agreement.

    

    The
      undersigned, ___________, ______________ of the Company, hereby certifies as
      follows:

    

    1. I
      am the
      _____________ of the Company and make the statements contained in this
      Certificate;

    

    2. The
      representations and warranties of the Company are true and correct in all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 of the Common
      Stock Purchase Agreement, in which case, such representations and warranties
      are
      true and correct without further qualification) as of the date when made and
      as
      of the Commencement Date as though made at that time (except for representations
      and warranties that speak as of a specific date);

    

    3. The
      Company has performed, satisfied and complied in all material respects with
      covenants, agreements and conditions required by the Transaction Documents
      to be
      performed, satisfied or complied with by the Company at or prior to the
      Commencement Date.

    

    4.
       The
      Company has not taken any steps, and does not currently expect to take any
      steps, to seek protection pursuant to any Bankruptcy Law nor does the Company
      or
      any of its Subsidiaries have any knowledge or reason to believe that its
      creditors intend to initiate involuntary bankruptcy or insolvency proceedings.
      The Company is financially solvent and is generally able to pay its debts as
      they become due.

    

    IN
      WITNESS WHEREOF, I have hereunder signed my name on this ___ day of
      ___________.

    

      
        	
                 

              
	
                Name:

              
	
                Title:

              

      

    

    

    The
      undersigned as Secretary of HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation, hereby certifies that ___________ is the duly elected,
      appointed, qualified and acting ________ of _________ and that the signature
      appearing above is his genuine signature.

    

      
        	
                 

              
	
                Secretary
                  

              

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-1

    

    FORM
      OF COMPANY RESOLUTIONS 

    FOR
      SIGNING PURCHASE AGREEMENT

    

    UNANIMOUS
      WRITTEN CONSENT OF 

    HEMISPHERX
      BIOPHARMA, INC.

    

    Pursuant
      to Section ______ of the _________, the undersigned, being all of the directors
      of HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Corporation”) do hereby consent to and adopt the
      following resolutions as the action of the Board of Directors for and on behalf
      of the Corporation and hereby direct that this Consent be filed with the minutes
      of the proceedings of the Board of Directors:

    

    WHEREAS,
      there has been presented to the Board of Directors of the Corporation a draft
      of
      the Common Stock Purchase Agreement (the “Purchase Agreement”) by and between
      the Corporation and Fusion Capital Fund II, LLC (“Fusion”), providing for the
      purchase by Fusion of up to Thirty Million Dollars ($30,000,000) of the
      Corporation’s common stock, par value $0.001 (the “Common Stock”);
      and

    

    WHEREAS,
      after careful consideration of the Purchase Agreement, the documents incident
      thereto and other factors deemed relevant by the Board of Directors, the Board
      of Directors has determined that it is advisable and in the best interests
      of
      the Corporation to engage in the transactions contemplated by the Purchase
      Agreement, including, but not limited to, the issuance of 650,000 shares of
      Common Stock to Fusion as an initial commitment fee (the “Initial Commitment
      Shares”) and the sale of shares of Common Stock to Fusion up to the available
      amount under the Purchase Agreement (the "Purchase Shares").

    

    Transaction
      Documents

     

    NOW,
      THEREFORE, BE IT RESOLVED, that the transactions described in the Purchase
      Agreement are hereby approved and ________________________________________
      (the
“Authorized Officers”) are severally authorized to execute and deliver the
      Purchase Agreement, and any other agreements or documents contemplated thereby
      including, without limitation, a registration rights agreement (the
“Registration Rights Agreement”) providing for the registration of the shares of
      the Company’s Common Stock issuable in respect of the Purchase Agreement on
      behalf of the Corporation, with such amendments, changes, additions and
      deletions as the Authorized Officers may deem to be appropriate and approve
      on
      behalf of, the Corporation, such approval to be conclusively evidenced by the
      signature of an Authorized Officer thereon; and

     

    FURTHER
      RESOLVED, that the terms and provisions of the Registration Rights Agreement
      by
      and among the Corporation and Fusion are hereby approved and the Authorized
      Officers are authorized to execute and deliver the Registration Rights Agreement
      (pursuant to the terms of the Purchase Agreement), with such amendments,
      changes, additions and deletions as the Authorized Officer may deem appropriate
      and approve on behalf of, the Corporation, such approval to be conclusively
      evidenced by the signature of an Authorized Officer thereon; and

     

    FURTHER
      RESOLVED, that the terms and provisions of the Form of Transfer Agent
      Instructions (the “Instructions”) are hereby approved and the Authorized
      Officers are authorized to execute and deliver the Instructions (pursuant to
      the
      terms of the Purchase Agreement), with such amendments, changes, additions
      and
      deletions as the Authorized Officers may deem appropriate and approve on behalf
      of, the Corporation, such approval to be conclusively evidenced by the signature
      of an Authorized Officer thereon; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Execution
      of Purchase Agreement

     

    FURTHER
      RESOLVED, that the Corporation be and it hereby is authorized to execute the
      Purchase Agreement providing for the purchase of common stock of the
      Corporation; and

     

    Issuance
      of Common Stock

     

    FURTHER
      RESOLVED, that the Corporation is hereby authorized to issue 650,000 shares
      of
      Common Stock to Fusion Capital Fund II, LLC as Initial Commitment
      Shares and that upon issuance of the Initial Commitment Shares pursuant to
      the
      Purchase Agreement, the Initial Commitment Shares shall be duly authorized,
      validly issued, fully paid and nonassessable with no personal liability
      attaching to the ownership thereof; and

     

    FURTHER
      RESOLVED, that the Corporation is hereby authorized to issue shares of Common
      Stock upon the purchase of Purchase Shares up to the available amount under
      the
      Purchase Agreement in accordance with the terms of the Purchase Agreement and
      that, upon issuance of the Purchase Shares pursuant to the Purchase Agreement,
      the Purchase Shares will be duly authorized, validly issued, fully paid and
      nonassessable with no personal liability attaching to the ownership thereof;
      and

     

    FURTHER
      RESOLVED, that the Corporation shall initially reserve __________ shares of
      Common Stock for issuance as Purchase Shares under the Purchase Agreement.
      

     

    FURTHER
      RESOLVED, that the Corporation is hereby authorized to issue 650,000 shares
      of
      Common Stock (subject to equitable adjustment for any reorganization,
      recapitalization, non-cash dividend, stock split or other similar transaction)
      in connection with the purchase of Purchase Shares (the “Additional Commitment
      Shares”) in accordance with the terms of the Purchase Agreement and that, upon
      issuance of the Additional Commitment Shares pursuant to the Purchase Agreement,
      the Additional Commitment Shares will be duly authorized, validly issued, fully
      paid and nonassessable with no personal liability attaching to the ownership
      thereof; and

     

    FURTHER
      RESOLVED, that the Corporation shall initially reserve 650,000 shares of Common
      Stock (subject to equitable adjustment for any reorganization, recapitalization,
      non-cash dividend, stock split or other similar transaction) for issuance as
      Additional Commitment Shares under the Purchase Agreement.

     

    Approval
      of Actions

     

    FURTHER
      RESOLVED, that, without limiting the foregoing, the Authorized Officers are,
      and
      each of them hereby is, authorized and directed to proceed on behalf of the
      Corporation and to take all such steps as deemed necessary or appropriate,
      with
      the advice and assistance of counsel, to cause the Corporation to consummate
      the
      agreements referred to herein and to perform its obligations under such
      agreements; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    FURTHER
      RESOLVED, that the Authorized Officers be, and each of them hereby is,
      authorized, empowered and directed on behalf of and in the name of the
      Corporation, to take or cause to be taken all such further actions and to
      execute and deliver or cause to be executed and delivered all such further
      agreements, amendments, documents, certificates, reports, schedules,
      applications, notices, letters and undertakings and to incur and pay all such
      fees and expenses as in their judgment shall be necessary, proper or desirable
      to carry into effect the purpose and intent of any and all of the foregoing
      resolutions, and that all actions heretofore taken by any officer or director
      of
      the Corporation in connection with the transactions contemplated by the
      agreements described herein are hereby approved, ratified and confirmed in
      all
      respects.

    

    IN
      WITNESS WHEREOF, the Board of Directors has executed and delivered this Consent
      effective as of __________, 2008.

    
      
        	
                 

              
	 
	
                 

              
	 
	
                 

              

      

    

    

    being
      all
      of the directors of HEMISPHERX
      BIOPHARMA, INC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C-2

    

    FORM
      OF COMPANY RESOLUTIONS APPROVING REGISTRATION STATEMENT

    

    UNANIMOUS
      WRITTEN CONSENT OF 

    HEMISPHERX
      BIOPHARMA, INC.

    

    Pursuant
      to Section ______ of the _________, the undersigned, being all of the directors
      of HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Corporation”) do hereby consent to and adopt the
      following resolutions as the action of the Board of Directors for and on behalf
      of the Corporation and hereby direct that this Consent be filed with the minutes
      of the proceedings of the Board of Directors.

    

    WHEREAS,
      there has been presented to the Board of Directors of the Corporation a Common
      Stock Purchase Agreement (the “Purchase Agreement”) by and among the Corporation
      and Fusion Capital Fund II, LLC (“Fusion”), providing for the purchase by Fusion
      of up to Thirty Million Dollars ($30,000,000) of the Corporation’s common stock,
      par value $0.001 (the “Common Stock”); and

    

    WHEREAS,
      after careful consideration of the Purchase Agreement, the documents incident
      thereto and other factors deemed relevant by the Board of Directors, the Board
      of Directors has approved the Purchase Agreement and the transactions
      contemplated thereby and the Company has executed and delivered the Purchase
      Agreement to Fusion; and

    

    WHEREAS,
      in connection with the transactions contemplated pursuant to the Purchase
      Agreement, the Company has agreed to file a registration statement with the
      Securities and Exchange Commission (the “Commission”) registering the Commitment
      Shares (as defined in the Purchase Agreement) and the Purchase Shares (as herein
      defined in the Purchase Agreement) and to list the Commitment Shares and
      Purchase Shares on the American Stock Exchange; 

     

    WHEREAS,
      the management of the Corporation has prepared an initial draft of a
      Registration Statement on Form ___ (the “Registration Statement”) in order to
      register the sale of the Purchase Shares and the Commitment Shares
      (collectively, the “Shares”); and

     

    WHEREAS,
      the Board of Directors has determined to approve the Registration Statement
      and
      to authorize the appropriate officers of the Corporation to take all such
      actions as they may deem appropriate to effect the offering.

     

    NOW,
      THEREFORE, BE IT RESOLVED, that the officers and directors of the Corporation
      be, and each of them hereby is, authorized and directed, with the assistance
      of
      counsel and accountants for the Corporation, to prepare, execute and file with
      the Commission the Registration Statement, which Registration Statement shall
      be
      filed substantially in the form presented to the Board of Directors, with such
      changes therein as the Chief Executive Officer of the Corporation or any Vice
      President of the Corporation shall deem desirable and in the best interest
      of
      the Corporation and its shareholders (such officer’s execution thereof including
      such changes shall be deemed to evidence conclusively such determination);
      and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    FURTHER
      RESOLVED, that the officers of the Corporation be, and each of them hereby
      is,
      authorized and directed, with the assistance of counsel and accountants for
      the
      Corporation, to prepare, execute and file with the Commission all amendments,
      including post-effective amendments, and supplements to the Registration
      Statement, and all certificates, exhibits, schedules, documents and other
      instruments relating to the Registration Statement, as such officers shall
      deem
      necessary or appropriate (such officer’s execution and filing thereof shall be
      deemed to evidence conclusively such determination); and 

     

    FURTHER
      RESOLVED, that the execution of the Registration Statement and of any amendments
      and supplements thereto by the officers and directors of the Corporation be,
      and
      the same hereby is, specifically authorized either personally or by the
      Authorized Officers as such officer’s or director’s true and lawful
      attorneys-in-fact and agents; and

     

    FURTHER
      RESOLVED, that the Authorized Officers are hereby designated as “Agent for
      Service” of the Corporation in connection with the Registration Statement and
      the filing thereof with the Commission, and the Authorized Officers hereby
      are
      authorized to receive communications and notices from the Commission with
      respect to the Registration Statement; and

     

    FURTHER
      RESOLVED, that the officers of the Corporation be, and each of them hereby
      is,
      authorized and directed to pay all fees, costs and expenses that may be incurred
      by the Corporation in connection with the Registration Statement;
      and

     

    FURTHER
      RESOLVED, that it is desirable and in the best interest of the Corporation
      that
      the Shares be qualified or registered for sale in various states; that the
      officers of the Corporation be, and each of them hereby is, authorized to
      determine the states in which appropriate action shall be taken to qualify
      or
      register for sale all or such part of the Shares as they may deem advisable;
      that said officers be, and each of them hereby is, authorized to perform on
      behalf of the Corporation any and all such acts as they may deem necessary
      or
      advisable in order to comply with the applicable laws of any such states, and
      in
      connection therewith to execute and file all requisite papers and documents,
      including, but not limited to, applications, reports, surety bonds, irrevocable
      consents, appointments of attorneys for service of process and resolutions;
      and
      the execution by such officers of any such paper or document or the doing by
      them of any act in connection with the foregoing matters shall conclusively
      establish their authority therefor from the Corporation and the approval and
      ratification by the Corporation of the papers and documents so executed and
      the
      actions so taken; and

     

    FURTHER
      RESOLVED, that if, in any state where the securities to be registered or
      qualified for sale to the public, or where the Corporation is to be registered
      in connection with the public offering of the Shares, a prescribed form of
      resolution or resolutions is required to be adopted by the Board of Directors,
      each such resolution shall be deemed to have been and hereby is adopted, and
      the
      Secretary is hereby authorized to certify the adoption of all such resolutions
      as though such resolutions were now presented to and adopted by the Board of
      Directors; and

     

      FURTHER
      RESOLVED, that the officers of the Corporation with the assistance of counsel
      be, and each of them hereby is, authorized and directed to take all necessary
      steps and do all other things necessary and appropriate to effect the listing
      of
      the Shares on the American Stock Exchange.

     

    Approval
      of Actions

     

    FURTHER
      RESOLVED, that, without limiting the foregoing, the Authorized Officers are,
      and
      each of them hereby is, authorized and directed to proceed on behalf of the
      Corporation and to take all such steps as are deemed necessary or appropriate,
      with the advice and assistance of counsel, to cause the Corporation to take
      all
      such action referred to herein and to perform its obligations incident to the
      registration, listing and sale of the Shares; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    FURTHER
      RESOLVED, that the Authorized Officers be, and each of them hereby is,
      authorized, empowered and directed on behalf of and in the name of the
      Corporation, to take or cause to be taken all such further actions and to
      execute and deliver or cause to be executed and delivered all such further
      agreements, amendments, documents, certificates, reports, schedules,
      applications, notices, letters and undertakings and to incur and pay all such
      fees and expenses as in their judgment shall be necessary, proper or desirable
      to carry into effect the purpose and intent of any and all of the foregoing
      resolutions, and that all actions heretofore taken by any officer or director
      of
      the Corporation in connection with the transactions contemplated by the
      agreements described herein are hereby approved, ratified and confirmed in
      all
      respects.

    

    IN
      WITNESS WHEREOF, the Board of Directors has executed and delivered this Consent
      effective as of __________, 2008.

     

    
      
        
          	
                   

                
	 
	
                   

                
	 
	
                   

                

        

      

    

    

    being
      all
      of the directors of HEMISPHERX
      BIOPHARMA, INC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

    

    FORM
      OF SECRETARY’S CERTIFICATE

    

    This
      Secretary’s Certificate (“Certificate”) is being delivered pursuant to Section
      7(k) of that certain Common Stock Purchase Agreement dated as of __________,
      (“Common Stock Purchase Agreement”), by and between HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Company”) and FUSION
      CAPITAL FUND II, LLC
      (the
“Buyer”), pursuant to which the Company may sell to the Buyer up to Thirty
      Million Dollars ($30,000,000) of the Company's Common Stock, par value $0.001
      per share (the "Common Stock"). Terms used herein and not otherwise defined
      shall have the meanings ascribed to them in the Common Stock Purchase
      Agreement.

    

    The
      undersigned, ____________, Secretary of the Company, hereby certifies as
      follows:

    

    1. I
      am the
      Secretary of the Company and make the statements contained in this Secretary’s
      Certificate.

    

    2. Attached
      hereto as Exhibit
      A
      and
Exhibit
      B
      are
      true, correct and complete copies of the Company’s bylaws (“Bylaws”) and
      Certificate of Incorporation (“Articles”), in each case, as amended through the
      date hereof, and no action has been taken by the Company, its directors,
      officers or shareholders, in contemplation of the filing of any further
      amendment relating to or affecting the Bylaws or Articles.

    

    3. Attached
      hereto as Exhibit
      C
      are
      true, correct and complete copies of the resolutions duly adopted by the Board
      of Directors of the Company on _____________, at which a quorum was present
      and
      acting throughout. Such resolutions have not been amended, modified or rescinded
      and remain in full force and effect and such resolutions are the only
      resolutions adopted by the Company’s Board of Directors, or any committee
      thereof, or the shareholders of the Company relating to or affecting (i) the
      entering into and performance of the Common Stock Purchase Agreement, or the
      issuance, offering and sale of the Purchase Shares and the Commitment Shares
      and
      (ii) and the performance of the Company of its obligation under the Transaction
      Documents as contemplated therein.

    

    4. As
      of the
      date hereof, the authorized, issued and reserved capital stock of the Company
      is
      as set forth on Exhibit
      D
      hereto.

    

    IN
      WITNESS WHEREOF,
      I have
      hereunder signed my name on this ___ day of ____________.

    
      

        
          	
                   

                
	
                  Secretary
                    

                

        

         

      

    

    The
      undersigned as ___________ of HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation, hereby certifies that ____________ is the duly elected,
      appointed, qualified and acting Secretary of _________, and that the signature
      appearing above is his genuine signature.

    
      

        
          	
                   

                

        

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      E

    

    FORM
      OF LETTER TO THE TRANSFER AGENT FOR THE ISSUANCE OF THE 

    COMMITMENTS
      SHARES AT SIGNING OF THE PURCHASE AGREEMENT

    

    [COMPANY
      LETTERHEAD]

    

    [DATE]

    

    Continental
      Stock Transfer & Trust Co 

    17
      Battery Place

    8th
      Floor

    New
      York,
      NY 10004

    Attention:
      Bill Seegraber  

    

    Re:
      Issuance of Common Shares to Fusion Capital Fund II, LLC 

    

    Dear
      ________,

    

    On
      behalf
      of HEMISPHERX
      BIOPHARMA, INC.,
      (the
“Company”), you are hereby instructed to issue as
      soon as possible 650,000
      shares of our common stock in the name of Fusion
      Capital Fund II, LLC.
      The
      share certificate should be dated [DATE OF THE COMMON STOCK PURCHASE AGREEMENT].
      I have included a true and correct copy of a unanimous written consent executed
      by all of the members of the Board of Directors of the Company adopting
      resolutions approving the issuance of these shares. The shares should be issued
      subject to the following restrictive legend:

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE,
      SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      APPLICABLE STATE SECURITIES LAWS, UNLESS SOLD PURSUANT TO: (1) RULE 144 UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR (2) AN OPINION OF HOLDER’S COUNSEL,
      IN A CUSTOMARY FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR
      APPLICABLE STATE SECURITIES LAWS.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      share
      certificate should be sent as
      soon as possible via overnight mail
      to the
      following address:

    

    Fusion
      Capital Fund II, LLC

    222
      Merchandise Mart Plaza, Suite 9-112

    Chicago,
      IL 60654

    Attention:
      Steven Martin

    

    Thank
      you
      very much for your help. Please call me at ______________ if you have any
      questions or need anything further.

    

    HEMISPHERX
      BIOPHARMA, INC.

    

      
        	
                BY:

              	   

	 	
                [name]

              
	 	
                [title]Exhibit
      10.2

    EXECUTION
      COPY

     

    REGISTRATION
      RIGHTS AGREEMENT

    

    REGISTRATION
      RIGHTS AGREEMENT
      (this
      "Agreement"),
      dated
      as of July 2, 2008, by and between HEMISPHERX
      BIOPHARMA, INC., a
      Delaware corporation, (the "Company"),
      and
FUSION
      CAPITAL FUND II, LLC
      (together with it permitted assigns, the “Buyer”).
      Capitalized terms used herein and not otherwise defined herein shall have the
      respective meanings set forth in the Common Stock Purchase Agreement by and
      between the parties hereto, dated as of the date hereof (as amended, restated,
      supplemented or otherwise modified from time to time, the "Purchase
      Agreement").

    

    WHEREAS:

     

    A. The
      Company has agreed, upon the terms and subject to the conditions of the Purchase
      Agreement, to issue to the Buyer (i) up to Thirty Million Dollars ($30,000,000)
      of the Company's common stock, par value $0.001 per share (the "Common
      Stock")
      (the
      "Purchase
      Shares"),
      and
      (ii) such number of shares of Common Stock as is required pursuant to Section
      4(e) of the Purchase Agreement (the "Commitment
      Shares");
      and

    

    B. To
      induce
      the Buyer to enter into the Purchase Agreement, the Company has agreed to
      provide certain registration rights under the Securities Act of 1933, as
      amended, and the rules and regulations thereunder, or any similar successor
      statute (collectively, the "1933
      Act"),
      and
      applicable state securities laws.

    

    NOW,
      THEREFORE,
      in
      consideration of the promises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged,
      the Company and the Buyer hereby agree as follows:

    

    
      	
            	1.	
              DEFINITIONS.

            

    

    

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    a. "Investor"
      means
      the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights
      under this Agreement and who agrees to become bound by the provisions of this
      Agreement in accordance with Section 9 and any transferee or assignee thereof
      to
      whom a transferee or assignee assigns its rights under this Agreement and who
      agrees to become bound by the provisions of this Agreement in accordance with
      Section 9.

    

    b. "Person"
      means
      any person or entity including any corporation, a limited liability company,
      an
      association, a partnership, an organization, a business, an individual, a
      governmental or political subdivision thereof or a governmental
      agency.

    

    c. "Register,"
      "registered,"
      and
      "registration"
      refer
      to a registration effected by preparing and filing one or more registration
      statements of the Company in compliance with the 1933 Act and pursuant to Rule
      415 under the 1933 Act or any successor rule providing for offering securities
      on a continuous basis ("Rule
      415"),
      and
      the declaration or ordering of effectiveness of such registration statement(s)
      by the United States Securities and Exchange Commission (the "SEC").

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    d. "Registrable
      Securities"
      means
      the Purchase Shares which have been, or which may from time to time be, issued
      or issuable to the Investor upon
      purchases of the Available Amount under the Purchase Agreement (without regard
      to any limitation or restriction on purchases) and the Commitment Shares issued
      or issuable to the Investor and any shares of capital stock issued or issuable
      with respect to the Purchase Shares, the Commitment Shares or
      the
      Purchase Agreement as a result of any stock split, stock dividend,
      recapitalization, exchange or similar event or otherwise, without regard to
      any
      limitation on purchases under the Purchase Agreement.

    

    e. "Registration
      Statement"
      means
      the registration statement of the Company covering only the sale of the
      Registrable Securities.

    

    
      	
            	2.	
              REGISTRATION.

            

    

    

    a. Mandatory
      Registration.
      The
      Company shall within twenty (20) Business Days from the date hereof file with
      the SEC the Registration Statement. The Registration Statement shall register
      only the Registrable Securities and no other securities of the Company. The
      Investor and its counsel shall have a reasonable opportunity to review and
      comment upon such registration statement or amendment to such registration
      statement and any related prospectus prior to its filing with the SEC. Investor
      shall furnish all information reasonably requested by the Company for inclusion
      therein. The Company shall use its best efforts to have the Registration
      Statement or amendment declared effective by the SEC at the earliest possible
      date. The Company shall use reasonable best efforts to keep the Registration
      Statement effective pursuant to Rule 415 promulgated under the 1933 Act and
      available for sales of all of the Registrable Securities at all times until
      the
      earlier of (i) the date as of which the Investor may sell all of the Registrable
      Securities without restriction pursuant to Rule 144(k) promulgated under the
      1933 Act (or successor thereto) or (ii) the date on which (A) the Investor
      shall
      have sold all the Registrable Securities and no Available Amount remains under
      the Purchase Agreement (the "Registration
      Period").
      The
      Registration Statement (including any amendments or supplements thereto and
      prospectuses contained therein) shall not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein,
      or
      necessary to make the statements therein, in light of the circumstances in
      which
      they were made, not misleading.

    

    b. Rule
      424 Prospectus.
      The
      Company shall, as required by applicable securities regulations, from time
      to
      time file with the SEC, pursuant to Rule 424 promulgated under the 1933 Act,
      the
      prospectus and prospectus supplements, if any, to be used in connection with
      sales of the Registrable Securities under the Registration Statement. The
      Investor and its counsel shall have a reasonable opportunity to review and
      comment upon such prospectus prior to its filing with the SEC. The Investor
      shall use its reasonable best efforts to comment upon such prospectus within
      one
      (1) Business Day from the date the Investor receives the final version of such
      prospectus. 

    

    c. Sufficient
      Number of Shares Registered.
      In the
      event the number of shares available under the Registration Statement is
      insufficient to cover all of the Registrable Securities, the Company shall
      amend
      the Registration Statement or file a new registration statement (a ”New
      Registration Statement”),
      so as
      to cover all of such Registrable Securities as soon as practicable, but in
      any
      event not later than ten (10) Business Days after the necessity therefor arises.
      The Company shall use it reasonable best efforts to cause such amendment and/or
      New Registration Statement to become effective as soon as practicable following
      the filing thereof. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	
            	3.	
              RELATED
                OBLIGATIONS.

            

    

    

    With
      respect to the Registration Statement and whenever any Registrable Securities
      are to be registered pursuant to Section 2(b) including on any New Registration
      Statement, the Company shall use its reasonable best efforts to effect the
      registration of the Registrable Securities in accordance with the intended
      method of disposition thereof and, pursuant thereto, the Company shall have
      the
      following obligations:

    

    a. The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to any registration statement and
      the
      prospectus used in connection with such registration statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
      be
      necessary to keep the Registration Statement or any New Registration Statement
      effective at all times during the Registration Period, and, during such period,
      comply with the provisions of the 1933 Act with respect to the disposition
      of
      all Registrable Securities of the Company covered by the Registration Statement
      or any New Registration Statement until such time as all of such Registrable
      Securities shall have been disposed of in accordance with the intended methods
      of disposition by the seller or sellers thereof as set forth in such
      registration statement.

    

    b. The
      Company shall permit the Investor to review and comment upon the Registration
      Statement or any New Registration Statement and all amendments and supplements
      thereto at least two (2) Business Days prior to their filing with the SEC,
      and
      not file any document in a form to which Investor reasonably objects. The
      Investor shall use its reasonable best efforts to comment upon the Registration
      Statement or any New Registration Statement and any amendments or supplements
      thereto within two (2) Business Days from the date the Investor receives the
      final version thereof. The Company shall furnish to the Investor, without charge
      any correspondence from the SEC or the staff of the SEC to the Company or its
      representatives relating to the Registration Statement or any New Registration
      Statement.

    

    c. Upon
      request of the Investor, the Company shall furnish to the Investor, (i) promptly
      after the same is prepared and filed with the SEC, at least one copy of such
      registration statement and any amendment(s) thereto, including financial
      statements and schedules, all documents incorporated therein by reference and
      all exhibits, (ii) upon the effectiveness of any registration statement, a
      copy
      of the prospectus included in such registration statement and all amendments
      and
      supplements thereto (or such other number of copies as the Investor may
      reasonably request) and (iii) such other documents, including copies of any
      preliminary or final prospectus, as the Investor may reasonably request from
      time to time in order to facilitate the disposition of the Registrable
      Securities owned by the Investor.

    

    d. The
      Company shall use reasonable best efforts to (i) register and qualify the
      Registrable Securities covered by a registration statement under such other
      securities or "blue sky" laws of such jurisdictions in the United States as
      the
      Investor reasonably requests, (ii) prepare and file in those jurisdictions,
      such
      amendments (including post-effective amendments) and supplements to such
      registrations and qualifications as may be necessary to maintain the
      effectiveness thereof during the Registration Period, (iii) take such other
      actions as may be necessary to maintain such registrations and qualifications
      in
      effect at all times during the Registration Period, and (iv) take all other
      actions reasonably necessary or advisable to qualify the Registrable Securities
      for sale in such jurisdictions; provided, however, that the Company shall not
      be
      required in connection therewith or as a condition thereto to (x) qualify to
      do
      business in any jurisdiction where it would not otherwise be required to qualify
      but for this Section 3(d), (y) subject itself to general taxation in any such
      jurisdiction, or (z) file a general consent to service of process in any such
      jurisdiction. The Company shall promptly notify the Investor who holds
      Registrable Securities of the receipt by the Company of any notification with
      respect to the suspension of the registration or qualification of any of the
      Registrable Securities for sale under the securities or "blue sky" laws of any
      jurisdiction in the United States or its receipt of actual notice of the
      initiation or threatening of any proceeding for such purpose.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    e. As
      promptly as practicable after becoming aware of such event or facts, the Company
      shall notify the Investor in writing of the happening of any event or existence
      of such facts as a result of which the prospectus included in any registration
      statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state a material fact required to be stated therein or necessary to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading, and promptly prepare a supplement or amendment to such
      registration statement to correct such untrue statement or omission, and deliver
      a copy of such supplement or amendment to the Investor (or such other number
      of
      copies as the Investor may reasonably request). The Company shall also promptly
      notify the Investor in writing (i) when a prospectus or any prospectus
      supplement or post-effective amendment has been filed, and when a registration
      statement or any post-effective amendment has become effective (notification
      of
      such effectiveness shall be delivered to the Investor by facsimile on the same
      day of such effectiveness and by overnight mail), (ii) of any request by the
      SEC
      for amendments or supplements to any registration statement or related
      prospectus or related information, and (iii) of the Company's reasonable
      determination that a post-effective amendment to a registration statement would
      be appropriate.

    

    f. The
      Company shall use its reasonable best efforts to prevent the issuance of any
      stop order or other suspension of effectiveness of any registration statement,
      or the suspension of the qualification of any Registrable Securities for sale
      in
      any jurisdiction and, if such an order or suspension is issued, to obtain the
      withdrawal of such order or suspension at the earliest possible moment and
      to
      notify the Investor of the issuance of such order and the resolution thereof
      or
      its receipt of actual notice of the initiation or threat of any proceeding
      for
      such purpose.

    

    g. The
      Company shall (i) cause all the Registrable Securities to be listed on each
      securities exchange on which securities of the same class or series issued
      by
      the Company are then listed, if any, if the listing of such Registrable
      Securities is then permitted under the rules of such exchange, or (ii) secure
      designation and quotation of all the Registrable Securities on the Principal
      Market. The Company shall pay all fees and expenses in connection with
      satisfying its obligation under this Section.

    

    h. The
      Company shall cooperate with the Investor to facilitate the timely preparation
      and delivery of certificates (not bearing any restrictive legend) representing
      the Registrable Securities to be offered pursuant to any registration statement
      and enable such certificates to be in such denominations or amounts as the
      Investor may reasonably request and registered in such names as the Investor
      may
      request.

    

    i. The
      Company shall at all times provide a transfer agent and registrar with respect
      to its Common Stock.

    

    j. If
      reasonably requested by the Investor, the Company shall (i) immediately
      incorporate in a prospectus supplement or post-effective amendment such
      information as the Investor believes should be included therein relating to
      the
      sale and distribution of Registrable Securities, including, without limitation,
      information with respect to the number of Registrable Securities being sold,
      the
      purchase price being paid therefor and any other terms of the offering of the
      Registrable Securities; (ii) make all required filings of such prospectus
      supplement or post-effective amendment as soon as notified of the matters to
      be
      incorporated in such prospectus supplement or post-effective amendment; and
      (iii) supplement or make amendments to any registration statement.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    k. The
      Company shall use its reasonable best efforts to cause the Registrable
      Securities covered by the registration statement to be registered with or
      approved by such other governmental agencies or authorities as may be necessary
      to consummate the disposition of such Registrable Securities.

     

    l. Within
      one (1) Business Day after any registration statement which includes the
      Registrable Securities is ordered effective by the SEC, the Company shall
      deliver, and shall cause legal counsel for the Company to deliver, to the
      transfer agent for such Registrable Securities (with copies to the Investor)
      confirmation that such registration statement has been declared effective by
      the
      SEC in the form attached hereto as Exhibit
      A.
      Thereafter, if requested by the Buyer at any time, the Company shall require
      its
      counsel to deliver to the Buyer a written confirmation whether or not the
      effectiveness of such registration statement has lapsed at any time for any
      reason (including, without limitation, the issuance of a stop order) and whether
      or not the registration statement is current and available to the Buyer for
      sale
      of all of the Registrable Securities.

    

    m. The
      Company shall take all other reasonable actions necessary to expedite and
      facilitate disposition by the Investor of Registrable Securities pursuant to
      any
      registration statement.

    

    
      	
            	4.	
              OBLIGATIONS
                OF THE INVESTOR.

            

    

    

    a. The
      Company shall notify the Investor in writing of the information the Company
      reasonably requires from the Investor in connection with any registration
      statement hereunder. The Investor shall furnish to the Company such information
      regarding itself, the Registrable Securities held by it and the intended method
      of disposition of the Registrable Securities held by it as shall be reasonably
      required to effect the registration of such Registrable Securities and shall
      execute such documents in connection with such registration as the Company
      may
      reasonably request.

    

    b. The
      Investor agrees to cooperate with the Company as reasonably requested by the
      Company in connection with the preparation and filing of any registration
      statement hereunder.

    

    c. The
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event or existence of facts of the kind described in Section
      3(f) or the first sentence of 3(e), the Investor will immediately discontinue
      disposition of Registrable Securities pursuant to any registration statement(s)
      covering such Registrable Securities until the Investor's receipt of the copies
      of the supplemented or amended prospectus contemplated by Section 3(f) or the
      first sentence of 3(e). Notwithstanding anything to the contrary, the Company
      shall cause its transfer agent to promptly deliver shares of Common Stock
      without any restrictive legend in accordance with the terms of the Purchase
      Agreement in connection with any sale of Registrable Securities with respect
      to
      which an Investor has entered into a contract for sale prior to the Investor's
      receipt of a notice from the Company of the happening of any event of the kind
      described in Section 3(f) or the first sentence of 3(e) and for which the
      Investor has not yet settled.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	
            	5.	
              EXPENSES
                OF REGISTRATION.

            

    

    

    All
      reasonable expenses, other than sales or brokerage commissions, incurred in
      connection with registrations, filings or qualifications pursuant to Sections
      2
      and 3, including, without limitation, all registration, listing and
      qualifications fees, printers and accounting fees, and fees and disbursements
      of
      counsel for the Company, shall be paid by the Company.

    

    
      	
            	6.	
              INDEMNIFICATION.

            

    

    

    a. To
      the
      fullest extent permitted by law, the Company will, and hereby does, indemnify,
      hold harmless and defend the Investor, each Person, if any, who controls the
      Investor, the members, the directors, officers, partners, employees, agents,
      representatives of the Investor and each Person, if any, who controls the
      Investor within the meaning of the 1933 Act or the Securities Exchange Act
      of
      1934, as amended (the "1934
      Act")
      (each,
      an "Indemnified
      Person"),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, attorneys' fees, amounts paid in settlement or expenses, joint
      or several, (collectively, "Claims")
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the SEC, whether pending or threatened, whether or not an indemnified
      party is or may be a party thereto ("Indemnified
      Damages"),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in the Registration Statement, any New Registration Statement
      or
      any post-effective amendment thereto or in any filing made in connection with
      the qualification of the offering under the securities or other "blue sky"
      laws
      of any jurisdiction in which Registrable Securities are offered ("Blue
      Sky Filing"),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading, (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      the
      final prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading, (iii) any violation or alleged violation by the Company
      of
      the 1933 Act, the 1934 Act, any other law, including, without limitation, any
      state securities law, or any rule or regulation thereunder relating to the
      offer
      or sale of the Registrable Securities pursuant to the Registration Statement
      or
      any New Registration Statement or (iv) any material violation by the Company
      of
      this Agreement (the matters in the foregoing clauses (i) through (iv) being,
      collectively, "Violations").
      The
      Company shall reimburse each Indemnified Person promptly as such expenses are
      incurred and are due and payable, for any reasonable legal fees or other
      reasonable expenses incurred by them in connection with investigating or
      defending any such Claim. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(a): (i) shall
      not apply to a Claim by an Indemnified Person arising out of or based upon
      a
      Violation which occurs in reliance upon and in conformity with information
      furnished in writing to the Company by such Indemnified Person expressly for
      use
      in connection with the preparation of the Registration Statement, any New
      Registration Statement or any such amendment thereof or supplement thereto,
      if
      such prospectus was timely made available by the Company pursuant to Section
      3(c) or Section 3(e); (ii) with respect to any superceded prospectus, shall
      not
      inure to the benefit of any such person from whom the person asserting any
      such
      Claim purchased the Registrable Securities that are the subject thereof (or
      to
      the benefit of any person controlling such person) if the untrue statement
      or
      omission of material fact contained in the superceded prospectus was corrected
      in the revised prospectus, as then amended or supplemented, if such revised
      prospectus was timely made available by the Company pursuant to Section 3(c)
      or
      Section 3(e), and the Indemnified Person was promptly advised in writing not
      to
      use the incorrect prospectus prior to the use giving rise to a violation and
      such Indemnified Person, notwithstanding such advice, used it; (iii) shall
      not
      be available to the extent such Claim is based on a failure of the Investor
      to
      deliver or to cause to be delivered the prospectus made available by the
      Company, if such prospectus was timely made available by the Company pursuant
      to
      Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in
      settlement of any Claim if such settlement is effected without the prior written
      consent of the Company, which consent shall not be unreasonably withheld. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of the Indemnified Person and shall survive the transfer
      of
      the Registrable Securities by the Investor pursuant to Section 9.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    b. In
      connection with the Registration Statement or any New Registration Statement,
      the Investor agrees to severally and not jointly indemnify, hold harmless and
      defend, to the same extent and in the same manner as is set forth in Section
      6(a), the Company, each of its directors, each of its officers who signs the
      Registration Statement or any New Registration Statement, each Person, if any,
      who controls the Company within the meaning of the 1933 Act or the 1934 Act
      (collectively and together with an Indemnified Person, an "Indemnified
      Party"),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
      or
      Indemnified Damages arise out of or are based upon any Violation, in each case
      to the extent, and only to the extent, that such Violation occurs in reliance
      upon and in conformity with written information about the Investor set forth
      on
Exhibit
      B
      attached
      hereto and furnished to the Company by the Investor expressly for use in
      connection with such registration statement; and, subject to Section 6(d),
      the
      Investor will reimburse any reasonable legal or other expenses reasonably
      incurred by them in connection with investigating or defending any such Claim;
      provided, however, that the indemnity agreement contained in this Section 6(b)
      and the agreement with respect to contribution contained in Section 7 shall
      not
      apply to amounts paid in settlement of any Claim if such settlement is effected
      without the prior written consent of the Investor, which consent shall not
      be
      unreasonably withheld; provided, further, however, that the Investor shall
      be
      liable under this Section 6(b) for only that amount of a Claim or Indemnified
      Damages as does not exceed the net proceeds to the Investor as a result of
      the
      sale of Registrable Securities pursuant to such registration statement. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of such Indemnified Party and shall survive the transfer
      of
      the Registrable Securities by the Investor pursuant to Section 9. 

    

    c. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses to
      be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the indemnifying party, the representation by such counsel of the
      Indemnified Person or Indemnified Party and the indemnifying party would be
      inappropriate due to actual or potential differing interests between such
      Indemnified Person or Indemnified Party and any other party represented by
      such
      counsel in such proceeding. The Indemnified Party or Indemnified Person shall
      cooperate fully with the indemnifying party in connection with any negotiation
      or defense of any such action or claim by the indemnifying party and shall
      furnish to the indemnifying party all information reasonably available to the
      Indemnified Party or Indemnified Person which relates to such action or claim.
      The indemnifying party shall keep the Indemnified Party or Indemnified Person
      fully apprised at all times as to the status of the defense or any settlement
      negotiations with respect thereto. No indemnifying party shall be liable for
      any
      settlement of any action, claim or proceeding effected without its written
      consent, provided, however, that the indemnifying party shall not unreasonably
      withhold, delay or condition its consent. No indemnifying party shall, without
      the consent of the Indemnified Party or Indemnified Person, consent to entry
      of
      any judgment or enter into any settlement or other compromise which does not
      include as an unconditional term thereof the giving by the claimant or plaintiff
      to such Indemnified Party or Indemnified Person of a release from all liability
      in respect to such claim or litigation. Following indemnification as provided
      for hereunder, the indemnifying party shall be subrogated to all rights of
      the
      Indemnified Party or Indemnified Person with respect to all third parties,
      firms
      or corporations relating to the matter for which indemnification has been made.
      The failure to deliver written notice to the indemnifying party within a
      reasonable time of the commencement of any such action shall not relieve such
      indemnifying party of any liability to the Indemnified Person or Indemnified
      Party under this Section 6, except to the extent that the indemnifying party
      is
      prejudiced in its ability to defend such action.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    d. The
      indemnification required by this Section 6 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Indemnified Damages are incurred.

    

    e. The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar right of the Indemnified Party or Indemnified Person against
      the indemnifying party or others, and (ii) any liabilities the indemnifying
      party may be subject to pursuant to the law.

    

    
      	
            	7.	
              CONTRIBUTION.

            

    

    

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however, that: (i) no seller of
      Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from
      any seller of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (ii) contribution by any seller of Registrable Securities
      shall be limited in amount to the net amount of proceeds received by such seller
      from the sale of such Registrable Securities.

    

    
      	
            	8.	
              REPORTS
                AND DISCLOSURE UNDER THE SECURITIES ACTS.

            

    

    

    With
      a
      view to making available to the Investor the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the Investor to sell securities of the Company to the public
      without registration ("Rule
      144"),
      the
      Company agrees, at the Company’s sole expense, to:

    

    a. make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

    

    b. file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements and the filing of such reports and other documents
      is required for the applicable provisions of Rule 144; and

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    c. furnish
      to the Investor so long as the Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company that it has complied with
      the reporting and or disclosure provisions of Rule 144, the 1933 Act and the
      1934 Act, (ii) a copy of the most recent annual or quarterly report of the
      Company and such other reports and documents so filed by the Company, and (iii)
      such other information as may be reasonably requested to permit the Investor
      to
      sell such securities pursuant to Rule 144 without registration.

    

    d. take
      such
      additional action as is requested by the Investor to enable the Investor to
      sell
      the Registrable Securities pursuant to Rule 144, including, without limitation,
      delivering all such legal opinions, consents, certificates, resolutions and
      instructions to the Company’s Transfer Agent as may be requested from time to
      time by the Investor and otherwise fully cooperate with Investor and Investor’s
      broker to effect such sale of securities pursuant to Rule 144.

    

    The
      Company agrees that damages may be an inadequate remedy for any breach of the
      terms and provisions of this Section 8 and that Investor shall, whether or
      not
      it is pursuing any remedies at law, be entitled to equitable relief in the
      form
      of a preliminary or permanent injunctions, without having to post any bond
      or
      other security, upon any breach or threatened breach of any such terms or
      provisions.

    

    
      	 	
              9.

            	
              ASSIGNMENT
                OF REGISTRATION RIGHTS.

            

    

    

    The Company
      shall not assign this Agreement or any rights or obligations hereunder without
      the prior written consent of the Investor. The Investor may not assign its
      rights under this Agreement without the written consent of the Company, other
      than to an affiliate of the Investor controlled by Steven G. Martin or Joshua
      B.
      Scheinfeld.

    

    
      	
            	10.	
              AMENDMENT
                OF REGISTRATION RIGHTS.

            

    

    

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with the written consent of the Company and the
      Investor.

    

    
      	
            	11.	
              MISCELLANEOUS.

            

    

    

    a. A
      Person
      is deemed to be a holder of Registrable Securities whenever such Person owns
      or
      is deemed to own of record such Registrable Securities. If the Company receives
      conflicting instructions, notices or elections from two or more Persons with
      respect to the same Registrable Securities, the Company shall act upon the
      basis
      of instructions, notice or election received from the registered owner of such
      Registrable Securities.

    

    b. Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one (1) Business Day after deposit with a nationally recognized
      overnight delivery service, in each case properly addressed to the party to
      receive the same. The addresses and facsimile numbers for such communications
      shall be:

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company:

    Hemispherx
      Biopharma, Inc.

    1617
      JFK
      Blvd., Suite 660

    Philadelphia,
      PA 19103

    Telephone:       
      215-988-0080

    Facsimile:        
      215-988-1739

    Attention:        
      Chief
      Executive Officer

    

    With
      a
      copy to:

    Silverman
      Sclar Shin & Byrne PLLC

    381
      Park
      Ave. South, Suite 1601

    New
      York,
      NY 10016

    Telephone:       
      212-779-8600

    Facsimile:        
      212-779-8858

    Attention:        
      Richard
      Feiner 

    

    If
      to the
      Investor:

    Fusion
      Capital Fund II, LLC

    222
      Merchandise Mart Plaza, Suite 9-112

    Chicago,
      IL 60654

    Telephone:       
      312-644-6644

    Facsimile:        
      312-644-6244

    Attention:        
      Steven
      G.
      Martin

    

    or
      at
      such other address and/or facsimile number and/or to the attention of such
      other
      person as the recipient party has specified by written notice given to each
      other party three (3) Business Days prior to the effectiveness of such change.
      Written confirmation of receipt (A) given by the recipient of such notice,
      consent, waiver or other communication, (B) mechanically or electronically
      generated by the sender's facsimile machine containing the time, date, recipient
      facsimile number and an image of the first page of such transmission or (C)
      provided by a nationally recognized overnight delivery service, shall be
      rebuttable evidence of personal service, receipt by facsimile or receipt from
      a
      nationally recognized overnight delivery service in accordance with clause
      (i),
      (ii) or (iii) above, respectively.

    

    c. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

    

    d. The
      corporate laws of the State of Delaware shall govern all issues concerning
      the
      relative rights of the Company and its stockholders. All other questions
      concerning the construction, validity, enforcement and interpretation of this
      Agreement shall be governed by the internal laws of the State of Illinois,
      without giving effect to any choice of law or conflict of law provision or
      rule
      (whether of the State of Illinois or any other jurisdictions) that would cause
      the application of the laws of any jurisdictions other than the State of
      Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting the City of Chicago, for the adjudication
      of any dispute hereunder or in connection herewith or with any transaction
      contemplated hereby or discussed herein, and hereby irrevocably waives, and
      agrees not to assert in any suit, action or proceeding, any claim that it is
      not
      personally subject to the jurisdiction of any such court, that such suit, action
      or proceeding is brought in an inconvenient forum or that the venue of such
      suit, action or proceeding is improper. Each party hereby irrevocably waives
      personal service of process and consents to process being served in any such
      suit, action or proceeding by mailing a copy thereof to such party at the
      address for such notices to it under this Agreement and agrees that such service
      shall constitute good and sufficient service of process and notice thereof.
      Nothing contained herein shall be deemed to limit in any way any right to serve
      process in any manner permitted by law. If any provision of this Agreement
      shall
      be invalid or unenforceable in any jurisdiction, such invalidity or
      unenforceability shall not affect the validity or enforceability of the
      remainder of this Agreement in that jurisdiction or the validity or
      enforceability of any provision of this Agreement in any other jurisdiction.
      EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    e. This
      Agreement, and the Purchase Agreement constitute the entire agreement among
      the
      parties hereto with respect to the subject matter hereof and thereof. There
      are
      no restrictions, promises, warranties or undertakings, other than those set
      forth or referred to herein and therein. This Agreement and the Purchase
      Agreement supersede all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof and thereof.

    

    f. Subject
      to the requirements of Section 9, this Agreement shall inure to the benefit
      of
      and be binding upon the permitted successors and assigns of each of the parties
      hereto.

    

    g. The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

    

    h. This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

    

    i. Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

    

    j. The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent and no rules of strict construction
      will
      be applied against any party.

    

    k. This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    *
      * * * * *

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Registration Rights Agreement to be duly executed
      as of
      day and year first above written.

    

    
      	THE
              COMPANY:
	 	 
	HEMISPHERX
              BIOPHARMA, INC.
	 	 
	
              By:

            	
              s/William
                A. Carter

            
	Name:
              William A. Carter, M.D.
	Title:
              Chairman & CEO
	 	 
	BUYER:
	 	 
	FUSION
              CAPITAL FUND II, LLC
	BY:
              FUSION CAPITAL PARTNERS, LLC
	BY:
              ROCKLEDGE CAPITAL CORPORATION
	 	 
	
              By:

            	
              s/Joshua
                B. Scheinfeld

            
	Name:
              Joshua B. Scheinfeld
	Title:
              President

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    TO
      REGISTRATION RIGHTS AGREEMENT

    

    FORM
      OF NOTICE OF EFFECTIVENESS

    OF
      REGISTRATION STATEMENT

    

    [Date]

    

    Continental
      Stock Transfer & Trust Co 

    17
      Battery Place

    8th
      Floor

    New
      York,
      NY 10004

    Attention:              Bill
      Seegraber  

    

    Re:
      [__________]

    

    Ladies
      and Gentlemen:

    

    We
      are
      counsel to HEMISPHERX
      BIOPHARMA, INC.,
      a
      Delaware corporation (the “Company”),
      and
      have represented the Company in connection with that certain Common Stock
      Purchase Agreement, dated as of _________, 2008 (the “Purchase
      Agreement”),
      entered into by and between the Company and Fusion Capital Fund II, LLC (the
      “Buyer”)
      pursuant to which the Company has agreed to issue to the Buyer shares of the
      Company's Common Stock, par value $0.001 per share (the “Common
      Stock”),
      in an
      amount up to Thirty Million Dollars ($30,000,000) (the “Purchase
      Shares”),
      in
      accordance with the terms of the Purchase Agreement. In connection with the
      transactions contemplated by the Purchase
      Agreement, the Company has registered with the U.S. Securities & Exchange
      Commission the following shares of Common Stock:

    

    
      	 	
              (1)

            	
              _________
                shares of Common Stock to be issued upon purchase from the Company
                by the
                Buyer from time to time (the“Purchase
                Shares.”).

            

    

    

    
      	 	
              (2)

            	
              650,000
                shares of Common Stock which have been issued to the Buyer as a commitment
                fee (the “Initial
                Commitment Shares”). 

            

    

    

    
      	 	
              (3)

            	
              650,000
                additional Commitment Shares to be issued in connection with each
                purchase
                of Purchase Shares (the “Additional
                Commitment Shares” and
                together with the Initial Commitment Shares,“Commitment
                Shares”).
                

            

    

    

    Pursuant
      to the Purchase Agreement, the Company also has entered into a Registration
      Rights Agreement, dated as of __________, 2008, with the Buyer (the “Registration
      Rights Agreement”)
      pursuant to which the Company agreed, among other things, to register the
      Purchase Shares and
      the
      Commitment Shares under the Securities Act of 1933, as amended (the “1933
      Act”).
      In
      connection with the Company's obligations under the Purchase Agreement and
      the
      Registration Rights Agreement, on _______, 2008, the Company filed a
      Registration Statement (File No. 333-_________) (the “Registration
      Statement”)
      with
      the Securities and Exchange Commission (the “SEC”)
      relating to the sale of the Purchase Shares and the Commitment
      Shares.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
      connection with the foregoing, we advise you that a member of the SEC's staff
      has advised us by telephone that the SEC has entered an order declaring the
      Registration Statement effective under the 1933 Act at _____ P.M. on __________,
      200_ and we have no knowledge, after telephonic inquiry of a member of the
      SEC's
      staff, that any stop order suspending its effectiveness has been issued or
      that
      any proceedings for that purpose are pending before, or threatened by, the
      SEC
      and the Purchase Shares and the Commitment Shares are available for sale under
      the 1933 Act pursuant to the Registration Statement and may issued without
      any
      restrictive legend.

    

    
      	Very
              truly yours,
	[Company
              Counsel]
	 
	
              By:

            	
               

            

    

    

    CC:          
       Fusion
      Capital Fund II, LLC

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    TO
      REGISTRATION RIGHTS AGREEMENT

    

    Information
      About The Investor Furnished To The Company By The Investor

    Expressly
      For Use In Connection With The Registration Statement

    

    As
      of the
      date of the Purchase Agreement, Fusion Capital beneficially owned 448,814 shares
      of common stock of the Company. Steven G. Martin and Joshua B. Scheinfeld,
      the
      principals of Fusion Capital, are deemed to be beneficial owners of all of
      the
      shares of common stock owned by Fusion Capital. Messrs. Martin and Scheinfeld
      have shared voting and investment power over the shares being offered under
      the
      prospectus filed with the SEC in connection with the transactions contemplated
      under the Purchase Agreement. Fusion Capital is not a licensed broker dealer
      or
      an affiliate of a licensed broker dealer.

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