kl03017_ex10-3.htm


    
      

    


    EXHIBIT
10.3

     

    March 11,
2009

     

    


     

    Dr.
Dennis E. Hruby

    333
1st
Street E.

    Apt.
201

    Albany,
OR 97321

    


    


    Dear Dr.
Hruby:

    


    This letter sets forth proposals for
the amendment of your employment agreement with SIGA Technologies, Inc., dated
as of January 22, 2007 (as amended, modified or supplemented, the “Original
Employment Agreement”).

    


    
      	
               
      

            	
              1.

            	
              We
      hereby propose to amend the Original Employment Agreement by adding the
      following sentence at the end of Section
1:

            


    

    


    
      	
               
      

            	
              “In
      addition, unless either party hereto provides notice of its desire not to
      renew this Agreement thirty (30) days prior to the expiration of the Term,
      this Agreement shall automatically renew for additional one (1) year
      periods commencing upon the expiration of the initial Term (or any such
      subsequent Term), with each such additional year thereafter being made
      part of the Term and each such additional year, thereafter a Term
      Year.  In the event that the Company provides notice of its
      desire not to renew this Agreement in accordance with the preceding
      sentence, Executive shall be entitled to the continued payment of the Base
      Salary (as determined pursuant to Section 3(a)) for one year (such sums to
      be paid at the times and in the amounts such Base Salary would have been
      paid had Executive’s employment
continued).”

            


    

    


    
      	
               
      

            	
              2.

            	
              We
      hereby propose to amend the Original Employment Agreement by replacing
      Section 2(a) with the following:

            


    

    


    
      	
               
      

            	
              “Employment by the
      Company.  Executive agrees to be employed by the Company
      during the Term upon the terms and subject to the conditions set forth in
      this Agreement.  Executive shall serve as the Chief Scientific
      Officer of the Company and shall report to the Board of
      Directors, the Chief Executive Officer or any other executive officer of
      the Company in a position senior to
him.”

            


    

    


    
      	
               
      

            	
              3.

            	
              We
      hereby propose to amend the Original Employment Agreement by replacing the
      last sentence of Section 2(a) with the
  following:

            


    

    


    
      	
               
      

            	
              “In
      his capacity as the Chief Scientific Officer of the Company, Executive
      shall have such duties and responsibilities as he may be assigned by the
      Board of Directors, Chief Executive Office or other executive officer of
      the Company in a position senior to him not inconsistent with his position
      as Chief Scientific Officer of the
Company.”

            


    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
 

    
      	
               
      

            	
              4.

            	
              We
      hereby propose to amend the Original Employment Agreement by replacing the
      first sentence of Section 3(a) with the
  following:

            


    

    


    
      	
               
      

            	
              “Base
      Salary.  The Company agrees to pay to Executive a base
      salary (“Base Salary”) at the annual rate of $275,000, subject to any cost
      of living adjustments as may be approved by the Board of Directors of the
      Company.”

            


    

    


    
      	
               
      

            	
              5.

            	
              We
      hereby propose to amend the Original Employment Agreement by adding the
      following sentence at the end of Section
3(a):

            


    

    


    
      	
               
      

            	
              “The
      Base Salary set forth in this Section 3(a) shall be effective as of March
      1, 2009.”

            


    

    


    
      	
               
      

            	
              6.

            	
              We
      hereby propose to amend the Original Employment Agreement by replacing the
      first sentence of Section 3(b) with the
  following:

            


    

    


    
      	
               
      

            	
              “Annual
      Bonus.   The Company may, in its sole discretion,
      pay to Executive an annual cash bonus of up to $150,000, but in any event
      will pay an annual cash bonus of no less than
  $75,000”

            


    

    


    


    If you
agree to the foregoing, please sign where indicated below and return the signed
copy to me.  Otherwise, the agreement will continue in full force and
effect, without amendment.

    


    


                                                                    Sincerely,

    


                                                                    SIGA TECHNOLOGIES,
INC.

    


    


                                                                    /s/ Eric
Rose                             


                                                                    Name:  Eric
Rose

                                                                    Title: Chief
Executive Officer

    


     

    AGREED
AND ACCEPTED

    


    


    


    /s/ Dennis E.
Hruby                   
                                                      

    Dr.
Dennis E. Hruby

    


    Date:   March 11,
2009