Document:

EMPLOYMENT AGREEMENT

      This Employment Agreement (this "Agreement"), effective as of January 19,
2000, between SIGA TECHNOLOGIES, INC., a Delaware corporation (with its
successors and assigns, referred to as the "Corporation") and Judson Cooper
(referred to as "Cooper").

                             Preliminary Statement

      The Corporation desires to employ Cooper, and Cooper wishes to be employed
by the Corporation, upon the terms and subject to the conditions set forth in
this Agreement. The Corporation and Cooper also wish to enter into the other
agreements set forth in this Agreement, all of which are related to Cooper's
employment under this agreement.

                                   Agreement

      Cooper and the Corporation therefore agree as follows:

            1. Employment for Term. The Corporation hereby employs Cooper and
Cooper hereby accepts employment with the Corporation for the period beginning
on the date of this Agreement and ending January 19, 2005. (the "Initial Term"),
or upon the earlier termination of the Term pursuant to Section 6. This
Agreement shall be automatically renewed for additional one-year periods (the
"Renewal Terms;" together with the Initial Term, the "Term") unless either party
notifies the other in writing of its intention not to so renew this Agreement no
less than 180 days prior to the expiration of the Initial Term or a Renewal
Term. The termination of Cooper's employment under this Agreement shall end the
Term but shall not terminate Cooper's or the Corporation's other agreements in
this Agreement, except as otherwise provided herein.

      2. Position and Duties. During the Term, Cooper shall serve as Chairman
and Executive Vice President of the Corporation. During the Term, Cooper shall
also hold such additional positions and titles as the Board of Directors of the
Corporation (the "Board") may determine from time to time. During the Term,
Cooper shall devote as much time as is necessary to satisfactorily perform his
duties as an employee of the Corporation.

      3. Compensation.

            (a) Base Salary. The Corporation shall pay Cooper a base salary,
beginning on the first day of the Term and ending on the last day of the Term,
of not less than $250,000 per annum, payable at least monthly on the
Corporation's regular pay cycle for professional employees.

            (b) Stock Options. Pursuant to the Corporation's stock option plan
and subject to stockholder approval of the Corporation's Amended 1996 Incentive
and Non-Qualified Stock Plan, the Corporation shall grant to Cooper
fully-vested options to purchase 500,000 shares of the Corporation's Common
Stock exercisable at $2.00 per share, the closing bid price of the Common stock
of the Corporation on the date hereof. The options shall expire on the tenth
anniversary of this Agreement.

            (c) Annual Increases. The Base Salary shall be increased at the end
of each year of service by the greater of (i) 5% or (ii) a percentage equal to
the increase, if any, in the United States Department of Labor Consumer Price
Index (or comparable index, if available) for the New York metropolitan area
over the previous 12 months.

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            (d) Other and Additional Compensation. The preceding sections
establish the minimum compensation during the Term and shall not preclude the
Board from awarding Cooper a higher salary or any bonuses or stock options in
the discretion of the Board during the Term at any time. The Company will adopt
a bonus plan and Cooper will be eligible to participate in such plan. The
Corporation shall pay Cooper a monthly car allowance of $500.

      4. Employee Benefits. During the Term, Cooper shall be entitled to the
employee benefits including vacation, 401(k) plan, health plan and other
insurance benefits made available by the Corporation to any other officers or
key employees of the Corporation.

      5. Expenses. The Corporation shall reimburse Cooper for actual
out-of-pocket expenses incurred by him in the performance of his services for
the Corporation upon the receipt of appropriate documentation of such expenses.

      6. Termination.

            (a) General. The Term shall end immediately upon Cooper's death. The
Term may also end for Cause or Disability, as defined in Section 7.

            (b) Notice of Termination. Promptly after it ends the Term, the
Corporation shall give Cooper notice of the termination, including a statement
of whether the termination was for Cause or Disability (as defined in Section
7(a) and 7(b) below). The Corporation's failure to give notice under this
Section 6(b) shall not, however, affect the validity of the Corporation's
termination of the Term.

            (c) Effective Termination by the Corporation. If the Corporation
reassigns Cooper's base of operations outside of New York City, or materially
reduces Cooper's duties during the term, including replacing Cooper as Chief
Executive Officer, then, at his option, Cooper may treat such reduction in
duties as a termination of the Term without Cause by the Corporation.

      7. Severance Benefits.

            (a) "Cause Defined". "Cause" means (i) willful malfeasance or
willful misconduct by Cooper in connection with his employment; (ii) Cooper's
gross negligence in performing any of his duties under this Agreement; (iii)
Cooper's conviction of, or entry of a plea of guilty to, or entry of a plea of
nolo contendre with respect to, any crime other than a traffic violation or
infraction which is a misdemeanor; (iv) Cooper's material breach of any written
policy applicable to all employees adopted by the Corporation which is not cured
to the reasonable satisfaction of the Corporation within fifteen (15) business
days after notice thereof; or (v) material breach by Cooper of any of his
agreements in this Agreement which is not cured to the reasonable satisfaction
of the Corporation within fifteen (15) business days after notice thereof.

            (b) Disability Defined. "Disability" shall mean Cooper's incapacity
due to physical or mental illness that results in his being substantially unable
to perform his duties hereunder for six consecutive months (or for six months
out of any nine month period). During a period of Disability, Cooper shall
continue to receive his base salary hereunder, provided that if the Corporation
provides Cooper with disability insurance coverage, payments of Cooper's base
salary shall be reduced by the amount of any disability insurance payments
received by Cooper due to such coverage. The Corporation shall give Cooper
written notice of termination which shall take effect sixty (60) days after the
date it is sent to Cooper unless Cooper shall have returned to the performance
of his duties hereunder during such sixty (60) day period (whereupon such notice
shall become void).

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            (c) Termination. If the Corporation ends the Term for Cause or
Disability, or if Cooper resigns as an employee of the Corporation for reasons
other than a material breach by the Corporation of its obligations under this
Agreement or a material reduction of Cooper's duties as provided in Section
6(c), or if Cooper dies, then the Corporation shall have no obligation to pay
Cooper any amount, whether for salary, benefits, bonuses, or other compensation
or expense reimbursements of any kind, accruing after the end of the Term, and
such rights shall, except as otherwise required by law, be forfeited immediately
upon the end of the Term, except that payments under 3(a) shall continue unless
the Corporation ends the Term for Cause or if Cooper resigns for reasons other
than a material breach by the Corporation of its obligations under this
Agreement or a material reduction of his duties as provided in Section 6(c). If
the Corporation ends the Term without Cause, then the Corporation will be
obligated to continue to pay Cooper's salary and all other amounts due hereunder
for the remainder of the Term. In addition, in the event of a change in the
ownership of greater than fifty percent (50%) of the Corporation's outstanding
voting stock or any transaction described in Section 9(b), Cooper may elect to
terminate this agreement as if it were a termination by the Corporation without
Cause, and the Corporation shall be obligated to pay Cooper's salary for the
remainder of the Term.

      8. Confidentiality, Ownership, and Covenants.

            (a) "Corporation Information" and "Inventions" Defined. "Corporation
Information" means all information, knowledge or data of or pertaining to (i)
the Corporation, its employees and all work undertaken on behalf of the
Corporation, and (ii) any other person, firm, corporation or business
organization with which the Corporation may do business during the Term, that is
not in the public domain (and whether relating to methods, processes,
techniques, discoveries, pricing, marketing or any other matters). "Inventions"
collectively refers to any and all inventions, trade secrets, ideas, processes,
formulas, source and object codes, data, programs, other works of authorship,
know-how, improvements, research, discoveries, developments, designs, and
techniques regarding any of the foregoing.

            (b) Confidentiality. (i) Cooper hereby recognizes that the value of
all trade secrets and other proprietary data and all other information of the
Corporation not in the public domain disclosed by the Corporation in the course
of his employment with the Corporation may be attributable substantially to the
fact that such confidential information is maintained by the Corporation in
strict confidentiality and secrecy and would be unavailable to others without
the expenditure of substantial time, effort or money. Cooper, therefore, except
as provided in the next two sentences, covenants and agrees that all Corporation
Information shall be kept secret and confidential at all times during the Term
and for the five (5) year period after the end of the Term and shall not be used
or divulged by him outside the scope of his employment as contemplated by his
Agreement, except as the Corporation may otherwise expressly authorize by action
of the Board. In the event that Cooper is requested in a judicial,
administrative or governmental proceeding to disclose any of the Corporation
Information, Cooper will promptly so notify the Corporation so that the
Corporation may seek a protective order of other appropriate remedy and/or waive
compliance with this Agreement. If disclosure of any of the Corporation
Information is required, Cooper may furnish the material so required to be
furnished, but Cooper will furnish only that portion of the Corporation
Information that legally is required.

            (ii) Cooper also hereby agrees to keep the terms of this Agreement
confidential to the same extent that the Corporation maintains such
confidentiality (except with regard to any disclosure by the Corporation
required under applicable securities laws).

            (c) Ownership of Inventions, Patents and Technology. Cooper hereby
assigns to the Corporation all of Cooper's rights (including patent rights,
copyrights, trade secret rights, and all other rights throughout the world),
title and interest in and to Inventions, whether or not patentable or
registrable under copyright or similar statutes, made or conceived or reduced to
practice or learned by Cooper, either alone or jointly with others, during the
course of the performance of services for the Corporation. Cooper shall also
assign to, or as directed by, the Corporation, all of Cooper's right, title and
interest in and to any and all Inventions, the full title to which is required
to be in the United States government of any of its

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agencies. The Corporation shall have all right, title and interest in all
research and work product produced by Cooper as an employee of the Corporation,
including, but not limited to, all research materials and lab books.

            (d) Non-Competition Period Defined. "Non-Competition Period" means
the period beginning at the end of the Term and ending one (1) year after the
end of the Term.

            (e) Covenants Regarding the Term and Non-Competition Period. Cooper
acknowledges and agrees that his services pursuant to this Agreement are unique
and extraordinary; that the Corporation will be dependent upon Cooper for the
development of its products; and that he will have access to and control of
confidential information of the Corporation. Cooper further acknowledges that
the business of the Corporation is international in scope and cannot be confined
to any particular geographic area. For the foregoing reasons and to induce the
Corporation to enter this Agreement, Cooper covenants and agrees that, subject
to Section 8(h), during the Term and the Non-Competition Period Cooper shall not
unless with written consent of the Corporation:

      (i)   engage in any business related to the research and development of
            the products or processes in which the Corporation is engaged in
            during the Term or in any other business conducted by the
            Corporation during the Term (collectively the "Prohibited Activity")
            in the World for his own account;

      (ii)  become interested in any individual, corporation, partnership or
            other business entity (a "Person") engaged in any Prohibited
            Activity in the World, directly or indirectly, as an individual,
            partner, shareholder, officer, director, principal, agent, employee,
            trustee, consultant or in any other relationship or capacity;
            provided, however, that Cooper may own directly or indirectly,
            solely as an investment, securities of any Person which are traded
            on any national securities exchange if Cooper (x) is not a
            controlling person of, or a member of a group which controls, such
            person or (y) does not, directly or indirectly, own 5% or more of
            any class of securities of such person; or

      (iii) directly or indirectly hire, employ or retain any person who at any
            time during the Term was an employee of the Corporation or directly
            or indirectly solicit, entice, induce or encourage any such person
            to become employed by any other person.

            (f) Remedies. Cooper hereby acknowledges that the covenants and
agreements contained in Section 8 are reasonable and valid in all respects and
that the Corporation is entering into this Agreement, inter alia, on such
acknowledgement. If Cooper breaches, or threatens to commit a breach, of any of
the Restrictive Covenants, the Corporation shall have the following rights and
remedies, each of which rights and remedies shall be independent of the other
and severally enforceable, and all of which rights and remedies shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Corporation under law or in equity: (i) the right and remedy to have the
Restrictive Covenants specifically enforced by any court having equity
jurisdiction, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Corporation and that
money damages will not provide an adequate remedy to the Corporation; (ii) the
right and remedy to require Cooper to account for and pay over to the
Corporation such damages as are recoverable at law as the result of any
transactions constituting a breach of any of the Restrictive Covenants; (iii) if
any court determines that any of the Restrictive Covenants, or any part thereof,
is invalid or unenforceable, the remainder of the Restrictive Covenants shall
not thereby be affected and shall be given full effect, without regard to the
invalid portions; and (iv) if any court construes any of the Restrictive
Covenants, or any part thereof, to be unenforceable because of the duration of
such provision or the area covered thereby, such court shall have the power to
reduce the duration or area of such provision and, in its reduced form, such
provision shall then be enforceable and shall be enforced.

            (g) Jurisdiction. The parties intend to and hereby confer
jurisdiction to enforce the Restrictive Covenants upon the courts of any
jurisdiction within the geographical scope of such Covenants. If the courts of
any one or more such jurisdictions hold the Restrictive Covenants wholly
unenforceable by

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reason of the breadth of such scope or otherwise, it is the intention of the
parties that such determination not bar or in any way affect the Corporation's
right to the relief provided above in the courts of any other jurisdiction,
within the geographical scope of such Covenants, as to breaches of such
Covenants in such other respective jurisdiction such Covenants as they relate to
each jurisdiction being, for this purpose, severable into diverse and
independent covenants.

            (h) Cooper's agreements and covenants under Section 8(e) shall
automatically terminate if the Corporation ends the Terms without Cause or
Cooper resigns due to a material breach by the Corporation of its obligations
under this Agreement or a material reduction of Cooper's duties as provided in
Section 6(c).

      9. Successors and Assigns.

            (a) Cooper. This Agreement is a personal contract, and the rights
and interests that the Agreement accords to Cooper may not be sold, transferred,
assigned, pledged, encumbered, or hypothecated by him. All rights and benefits
of Cooper shall be for the sole personal benefit of Cooper, and no other person
shall acquire any right, title or interest under this Agreement by reason of any
sale, assignment, transfer, claim or judgement or bankruptcy proceedings against
Cooper. Except as so provided, this Agreement shall inure to the benefit of and
be binding upon Cooper and his personal representatives, distributes and
legatees.

            (b) The Corporation. This Agreement shall be binding upon the
Corporation and inure to the benefit of the Corporation and of its successors
and assigns, including (but not limited to) any corporation that may acquire all
or substantially all of the corporation's assets or business or into or with
which the Corporation may be consolidated or merged. In the event that the
Corporation sells all or substantially all of its assets, merges or
consolidates, otherwise combines or affiliates with another business, dissolves
and liquidates, or otherwise sells or disposes of substantially all of its
assets and Cooper does not elect to treat any such transaction as a termination
by the Corporation without Cause pursuant to Section 7(c), then this Agreement
shall continue in full force and effect. The Corporation's obligations under
this Agreement shall cease, however, if the successor to, the purchaser or
acquirer either of the Corporation or of all or substantially all of its assets,
or the entity with which the Corporation has affiliated, shall assume in writing
the Corporation's obligations under this Agreement (and deliver and executed
copy of such assumption to Cooper), in which case such successor or purchaser,
but not the Corporation, shall thereafter be the only party obligated to perform
the obligations that remain to be performed on the part of the Corporation under
this Agreement.

      10. Change in Control. Upon the completion of a transaction resulting in a
Change in Control of the Corporation or any transaction described in Section
9(b), the Corporation shall pay to Cooper, in consideration of his work on
behalf of the Corporation, a one time cash payment equal to one and one-half
percent (1.5%) of the total consideration received by the Corporation. "Change
in Control" shall mean any merger or consolidation of the Corporation into or
with another corporation, or any reorganization, recapitalization or like
transaction or series of transactions having substantially equivalent effect and
purpose, at the conclusion of which such merger, consolidation, reorganization,
recapitalization or like transaction the holders of the voting capital stock of
the Corporation immediately prior to such transaction or series of transactions
own less than a majority of the voting capital stock of the acquiring entity or
entity surviving or resulting from such transaction or series of transactions
immediately thereafter, or any sale, transfer or other disposition of all or
substantially all of the assets or capital stock of the Corporation.

      11. Sale, Merger or Spin-out of Subsidiary. Upon the sale, merger or
public spin-out of any wholly-owned or partially-owned subsidiary of the
Corporation, or of any material asset of the Corporation, Cooper shall receive a
success fee equal to one and one-half percent (1.5%) of the value of SIGA's
shares of the subsidiary, or of the value of the material asset, upon the sale,
merger or spin-out. In the event the subsidiary or material asset is sold for
cash, the 1.5% success fee shall be paid for in cash. In the event the
subsidiary or material asset is sold for equity in another company, the 1.5%
success fee shall be paid for in the form of equity received by the Corporation.
In the event of a merger or public spin-out of

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the subsidiary or of any material asset of the Corporation, the 1.5% success fee
shall be paid for in the form of shares of the subsidiary or in the form of
equity received by the Corporation.

      12. Entire Agreement. This Agreement represents the entire agreement
between the parties concerning Cooper's employment with the Corporation and
supersedes all prior negotiations, discussions, understanding and agreements,
whether written or oral, between Cooper and the Corporation relating to the
subject matter of this Agreement.

      13. Amendment or Modification, Waiver. No provision of this Agreement may
be amended or waived unless such amendment or waiver is agreed to in writing
signed by Cooper and by a duly authorized officer of the Corporation. No waiver
by any party to this Agreement or any breach by another party of any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of a similar or dissimilar condition or provision at the same
time, any prior time or any subsequent time.

      14. Notices. Any notice to be given under this Agreement shall be in
writing and delivered personally or sent by overnight courier or registered or
certified mail, postage prepaid, return receipt requested, addressed to the
party concerned at the address indicated below, or to such other address of
which such party subsequently may give notice in writing:

If to Cooper:           Judson Cooper
                        420 Lexington Avenue
                        Suite 620
                        New York, NY 10170
                        Fax: 212-697-3130

If to the Corporation:  SIGA TECHNOLOGIES, INC.
                        420 Lexington Avenue
                        Suite 620
                        New York, NY 10170
                        Fax: 212-697-3130
                        Attention: Joshua D. Schein

with a copy to:         Orrick, Herrington and Sutcliffe
                        666 Fifth Avenue
                        New York, NY 10103
                        Attention: Jeffrey Fessler

Any notice delivered personally or by overnight courier shall be deemed given on
the date delivered and any notice sent by registered or certified mail, postage
prepaid, return receipt requested, shall be deemed given on the date mailed.

      15. Severability. If any provision of this Agreement or the application of
any such provision to any party or circumstances shall be determined by any
court of competent jurisdiction to be invalid and unenforceable to any extent,
the remainder of this Agreement or the application of such provision to such
person or circumstances other than those to which it is so determined to be
invalid and unenforceable shall not be affected, and each provision of this
Agreement shall be validated and shall be enforced to the fullest extent
permitted by law. If for any reason any provision of this Agreement containing
restrictions is held to cover an area or to be for a length of time that is
unreasonable or in any other way is construed to be too broad or to any extent
invalid, such provision shall not be determined to be entirely null, void and of
no effect; instead, it is the intention and desire of both the Corporation and
Cooper that, to the extent that the provision is or would be valid or
enforceable under applicable law, any court of competent jurisdiction shall
construe and interpret or reform this Agreement to provide for a restriction

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having the maximum enforceable area, time period and such other constraints or
conditions (although not greater than those contained currently contained in
this Agreement) as shall be valid and enforceable under the applicable law.

      16. Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations.

      17. Headings. All descriptive headings of sections and paragraphs in this
Agreement are intended solely for convenience of reference, and no provision of
this Agreement is to be construed by reference to the heading of any section or
paragraph.

      18. Withholding Taxes. All salary, benefits, reimbursements and any other
payments to Cooper under this Agreement shall be subject to all applicable
payroll and withholding taxes and deductions required by any law, rule or
regulation of and federal, state or local authority.

      19. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together constitute one and same instrument.

      20. Applicable Law; Arbitration. The validity, interpretation and
enforcement of this Agreement and any amendments or modifications hereto shall
be governed by the laws of the State of New York, as applied to a contract
executed within and to be performed in such State. The parties agree that any
disputes shall be definitively resolved by binding arbitration before the
American Arbitration Association in New York, New York and consent to the
jurisdiction to the federal courts of the Southern District of New York or, if
there shall be no jurisdiction, to the state courts located in New York County,
New York, to enforce any arbitration award rendered with respect thereto. Each
party shall choose one arbitrator and the two arbitrators shall choose a third
arbitrator. All costs and fees related to such arbitration (and judicial
enforcement proceedings, if any) shall be borne by the unsuccessful party.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.

                                        SIGA TECHNOLOGIES INC

                                        By:       /s/ Joshua D. Schein
                                                  -----------------------
                                                  Joshua D. Schein
                                                  Chief Executive Officer

                                                  /s/ Judson Cooper
                                                  -----------------------
                                                  Judson Cooper

                                       7SETTLEMENT AGREEMENT

                                      AND

                             MUTUAL GENERAL RELEASE

      This Settlement Agreement and Mutual General Release (hereinafter
"Agreement") is entered into this 17th day of February, 2000 between Washington
University (hereinafter "WU"), having its principal office at One Brookings
Drive, Saint Louis, Missouri 63130 and Scott Hultgren, Ph.D., Professor of
Molecular Microbiology at WU, and SIGA Pharmaceuticals, Inc. (hereinafter
"SIGA"), a corporation duly organized and existing under the laws of the State
of Delaware and having its principal office at 420 Lexington Avenue, Suite 620,
New York, New York 10170.

                                    Recitals

      WHEREAS, WU through its research funded in part by WU, SIGA and others
have developed intellectual property comprising patent rights, copyrights,
know-how and technical data;

      WHEREAS, SIGA is in the business of researching, developing, and
commercializing products based upon such intellectual property rights;

      WHEREAS, on or about July 9, 1997 Dr. Hultgren and SIGA entered into a
personal consulting agreement (hereinafter "PCA") under which Dr. Hultgren
agreed to provide consulting services to SIGA regarding, among other things,
providing scientific scrutiny of programs funded by SIGA with respect to the
appropriateness of its research and development
<PAGE>

programs and potential impact of alternative technologies, advising SIGA
concerning developments in research and the potential of such developments as a
basis for developing new products and recommending persons who might be
appropriate as consultants or scientific staff for SIGA;

      WHEREAS, on or about February 6, 1998 WU and SIGA entered into a Research
Collaboration and Licensing Agreement which was amended by letter agreement on
October 21, 1998 (hereinafter "RCLA") regarding the intellectual property rights
associated and generated under a research collaboration between SIGA and WU with
Dr. Hultgren as the primary investigator under the agreement;

      WHEREAS, on or about July 23, 1999, WU made a demand for arbitration
regarding disputes arising from the RCLA pursuant to the rules of the American
Arbitration Association as required under the RCLA, and on July 26, 1999, SIGA
made a counter-demand for arbitration;

      WHEREAS, on or about July 28, 1999 SIGA brought suit against Dr. Hultgren
in the United States District Court for the Southern District of New York
alleging various causes of action relating to the subject matter of both the PCA
and the RCLA;

      WHEREAS, the parties hereto wish to settle the disputes regarding the RCLA
and the PCA, and any other disputes which exist or may exist between them on the
terms stated herein;

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      NOW, THEREFORE, in consideration of the mutual promises and covenants
contained in this Agreement, and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by all the parties
hereto, the parties agree as follows:

                            Covenants and Conditions

      1. Research Collaboration and Licensing Agreement. The Research
Collaboration and Licensing Agreement (hereinafter "RCLA") between WU and SIGA
and all rights granted therein (except as specifically noted below) are
terminated effective February 6, 1999. No obligations imposed on either party
under the RCLA, except for the maintenance of confidentiality regarding the
other party's confidential information under Article 7 of the RCLA, will survive
termination. Title to all equipment purchased under the RCLA and physically
maintained by WU hereby vests in WU.

      2. Personal Consulting Agreements. All personal consulting agreements
between SIGA and any WU faculty members and/or employees, including the PCA
between SIGA and Dr. Hultgren, are hereby terminated. SIGA will neither propose
nor enter into any new consulting agreements with WU faculty members and/or
employees without first receiving WU's written consent.

      3. Mutual Releases. Except with respect to the obligations created by or
arising out of this Agreement, SIGA for itself and on behalf of its parent,
subsidiary, and other affiliated corporations, divisions, directors, officers,
employees, agents, affiliates, representatives, and assigns who may claim
through it hereby release, acquit and forever discharge and covenant not to sue
individually or collectively WU, Dr. Hultgren and/or their agents, employees,
insurers,

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directors, officers, successors and assigns for, of and from any and all claims,
demands, damages, debts, liabilities, accounts, reckonings, obligations, costs,
expenses, liens, actions and causes of action of every kind and nature
whatsoever, including right to contribution or indemnification, equitable or
declaratory relief, whether now known or unknown, suspected or unsuspected,
which SIGA or its related parties either now has, owns or holds or at any time
heretofore ever had, owned or held, or could, shall or may hereafter have, own
or hold, resulting or to result from occurrences that happened at any time up
until the signing of this agreement, including, but not limited to, those
relating to, based upon or arising out of the RCLA, the PCA, or any other
personal consulting agreement with WU faculty members and/or employees, or any
of the facts or transactions asserted in the aforesaid arbitration proceedings
and suit by any of the parties. (All of which released claims are hereinafter
referred to as "SIGA's Released Matters"), SIGA and Dr. Hultgren will promptly
file after the effective date of this Agreement a Stipulation of Discontinuance
with Prejudice of SIGA's action against Dr. Scott Hultgren in Action no. 99 Civ,
6017 (DAB) pending in the United States District Court for the Southern District
of New York.

      Except with respect to the obligations created by or arising out of this
Agreement, WU, Dr. Hultgren, for themselves and an behalf of their agents,
employees, insurers, directors, officers, successors, assigns and others who may
claim through them hereby release, discharge and covenant not to sue
individually or collectively SIGA, its parent, subsidiary and other affiliated
corporations, divisions, directors, officers, employees, agents, insurers and
its successors and assigns for, of and from any and all claims, demands,
damages, debts, liabilities, accounts, reckonings, obligations, costs, expenses,
liens, actions and causes of action of every kind and nature whatsoever,
including right to contribution or indemnification, equitable or declaratory
relief, whether now known or unknown, suspected or unsuspected, which WU, Dr.

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Hultgren or their related parties either now has, owns or holds or at any time
heretofore ever had, owned or held, or could, shall or may hereafter have, or
own or hold, resulting or to result from occurrences that happened at any time
prior to the signing of this agreement, including, but not limited to, those
relating to, based upon or arising out of the RCLA, the PCA, or any other
personal consulting agreement with WU faculty members and/or employees, or any
of the facts or transactions which were or could have been asserted in the
aforesaid arbitration proceedings and suit by any of the parties. (All of which
released claims are hereinafter referred to as "WU's Released Matters").

      The parties shall promptly file a mutual termination notice with the
American Arbitration Association concluding such proceedings in accordance with
this settlement.

      It is the intention of the parties that this Agreement shall be effective
as a full and final accord and satisfaction and mutual release of and from all
of SIGA's Released Matters and WU's Released Matters.

      4. Contract Construction. The parties hereby agree that this Agreement
shall be construed, interpreted, and applied in accordance with the following:

            a. The invalidity or unenforceability of any provision hereof shall
in no way affect the validity or enforceability of any other provision of this
Agreement.

            b. This Agreement contains the entire agreement among the parties
hereto and supersedes and cancels all previous agreements, negotiations,
commitments and writings with respect to the subject matter hereof, and may not
be released, discharged, abandoned, changed, or modified in any manner, orally
or in writing, except by an instrument in writing signed by a duly

                                       5
<PAGE>

authorized officer of each of the parties hereto. Any attempt to modify this
Agreement orally or in writing not duly executed by all parties hereto shall be
void.

            c. This Agreement shall be deemed executed and delivered within the
state of Missouri, and the rights and obligations of the parties hereunder shall
be construed and enforced in accordance with, and governed by, the laws of the
State of Missouri.

            d. No waiver of any breach of any term or provision of this
Agreement shall be construed to be, nor shall be, a waiver of any other breach
of this Agreement.

      5. Effective date. The effective date of this Agreement shall be the date
on which this Agreement is finally executed by all parties hereto.

      6. Confidentiality of the Agreement. Each party agrees to keep secret and
confidential the terms of this agreement except as follows. WU and its related
parties may disclose this Agreement and its terms to the extent necessary to
negotiate rights in the technology and related intellectual property to
prospective or future existing licensees or other recipients of such rights, or
to the extent necessary for it to comply with requirements for financial grant
applications or other funding agreements related to the technology. SIGA may
disclose this Agreement and its terms to the extent necessary for it to comply
with its reporting obligations as a public company, to the extent necessary for
it to comply with requirements for financial grant applications or other funding
agreements related to the technology, to the extent necessary to make required
bona fide disclosures to prospective investors in SIGA and to the extent
necessary to negotiate rights in

                                       6
<PAGE>

technology and related intellectual property to prospective clients regarding
pharmaceutical transactions when such disclosure should reasonably be made. All
parties may disclose portions of this Agreement as necessary for each party to
comply with a valid Court Order, federal and/or state agency or private action
subpoenas, provided reasonable notice is given to the other party of the Order
or subpoena prior to responding thereto.

      7. Warranty of Persons executing this Agreement. Each person whose
signature appears below warrants and guarantees, on behalf of him or herself,
and on behalf of the party for whom he or she is executing this Agreement, that
such person had been duly authorized and has full authority to execute this
Agreement on behalf of the party for whom he or she is executing this Agreement.

      8. Publicity. Notwithstanding any provisions of this Agreement:

            a. Neither WU nor Dr. Hultgren may use the name or marks of SIGA or
of any of its employees or subcontractors in advertising, publicity or otherwise
without the prior written approval of SIGA; or

            b. Neither SIGA nor any of its affiliates or employees may use the
name or marks of WU, nor the name of Dr. Hultgren, nor the names of other
investigators or employees of WU in advertising, publicity or otherwise without
the prior written approval of WU.

      9. Patent Expenses. WU will reimburse SIGA the cost of patent expenses
arising from the RCLA in the amount of $37,037.04 within thirty (30) days of the
execution of this agreement.

                                       7
<PAGE>

      10. Patent Rights. SIGA disclaims any rights, title or interest in and
hereby expressly assigns any rights, title and interest it has or may claim to
have in any proprietary technology, patents, patent applications, inventions and
improvements related to the RCLA project as defined in sections 1.8, 1.11 (as
amended, 10/21/98), 1.12, 1.17, and 1.18 of the RCLA to WU, whether developed by
WU employees or contractors and/or by SIGA employees or contractors. This
agreement does not encompass certain rights, title or interest SIGA has or
claims in certain patents and/or patent applications not arising from the RCLA
and which are specifically set forth in Appendix A attached hereto. In
particular, as to the patent rights associated with U.S. patent application
serial no. 60/140,990 (DegP Periplasmic Protease), Washington University and
SIGA each claim rights in said application based on inventorship by their
respective employees or agents. As to the remaining patents and/or patent
applications set forth in Appendix A, Washington University and SIGA each claim
rights in said patents or applications, on Washington University's part, based
on inventorship by its employees or agents, and on SIGA's part, based on
inventorship by employees or agents of Symbicom (AB) and on a written assignment
of Symbicom's patent rights therein to SIGA. Unless otherwise indicated by
subsequent agreement, WU and SIGA will equally share responsibility for the
administration and the expenses for the prosecution of patent applications
and/or patents specifically set forth in Appendix A attached hereto.

      WU and SIGA have entered into a licensing agreement regarding U.S. Patent
Number 5,834,591 entitled "Polypeptides and Antibodies Useful for the Diagnosis
and Treatment of Pathogenic Neisseria and Other Micro Organisms having Type IV
Pilin" which technology was incorporated into the RCLA by letter amendment dated
October 21, 1998. The licensing agreement is attached hereto as Appendix B and
is hereby incorporated into this agreement.

                                       8
<PAGE>

      11. Licensing Revenues. WU agrees to pay SIGA a licensing revenue of 20%
of the first $2,000,000.00 of net licensing revenues (that is, up to
$400,000.00) that derive from the commercialization of products covered by valid
claims under any patent rights of section 10 of this Agreement, and 10% of the
next $1,0O0,000.00 of the net licensing revenues (that is, up to an additional
$100,000.00) that derive from the commercialization of products covered by valid
claims under any patent rights of section 10 of this Agreement, with the total
payment of licensing revenues to SIGA not to exceed $500,000.00 under any
circumstances. WU and SIGA agree that "net licensing revenues" includes
licensing fees, license maintenance fees, milestone payments and royalties, but
that "net licensing revenues" expressly excludes any research support funds.

      12. Government Rights. This Agreement is subject to any rights pursuant to
research funding from the Federal Government, if any, and will be modified as
necessary to conform to government regulations.

      13. Admissions. Nothing in this Agreement or the settlement of this
dispute shall constitute or be construed as an admission with respect to the
merits of any claim or cause of action, or of any other matter of law or fact
heretofore asserted in any proceeding by any party hereto. The parties further
agree that no representation of fact or opinion has been made by one of them to
the other with respect to the extent or nature of the claims or damages in order
to induce this compromise.

                                       9
<PAGE>

                [SENNIGER, POWERS, LEAVITT & ROEDEL LETTERHEAD]

                               February 18, 2000

Sigmund S. Wissner-Gross, Esq.
Heller, Horowitz & Feit, P.C.
292 Madison Avenue
New York, NY 10017

Re:   Washington University vs. SIGA Pharmaceuticals, Inc.
      Our File WSHU 2007

Dear Sigmund:

      Enclosed please find fully executed originals of the Settlement Agreement
and Release and Nonexclusive License Agreement.

      I will call you soon to discuss matters related to the pending patent
estate.

                                        Yours truly,

                                        /s/ G. Harley Blosser

                                        G. Harley Blosser

GHB/bk
Enclosures
cc: Andrew Neighbour (via fax)

                                       10
<PAGE>

      14. Agent. No party shall be deemed to be an agent of another party as a
result of any transaction under or related to this Agreement, and shall not in
any way pledge the other party's credit or incur any obligation on behalf of the
other party.

      15. Advice of Counsel. Each party has had the advice of counsel of their
own choosing before executing this Agreement. Each party also acknowledges that
they have reviewed this Agreement prior to execution and the execution hereof is
their free act and deed.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed in their respective corporate names by their duly authorized
officers, or in their individual capacity, as of the dates indicated.

                                        /s/ Scott Hultgren
                                        ----------------------------------------
                                        Dr. Scott Hultgren

                                        Date: 2/17/00
                                              ----------------------------------

SIGA Pharmaceuticals, Inc.

By: /s/ Joshua D. Schein
    ------------------------------------

Name: Joshua D. Schein
      ----------------------------------

Title: Chief Executive Officer
       ---------------------------------

Date: 2/14/00
      ----------------------------------

Washington University

By: /s/  Theodore J. Cicero
    ------------------------------------

Name: Theodore J. Cicero, Ph.D.
      ----------------------------------

Title: Vice Chancellor for Research
       ---------------------------------

Date: 2/17/00
      ----------------------------------

                                       11
<PAGE>

                                   APPENDIX A

                                 Patent Rights

1.    U.S. Serial Number 60/140,990

      DegP Periplasmic Protease, a New Anti-Infective Target and an In Vivo
      Assay for DegP Protease Function.

2.    New Zealand Application 311902:

      Treatment or Prophylaxis of Diseases Caused by Pilus-Forming Bacteria.

3.    Japanese Application Number 514666

      Treatment or Prophylaxis of Diseases Caused by Pilus-Forming bacteria

4.    Australian Patent Number 704114

      Compounds and Pharmaceutical Compositions for the Treatment and
      Prophylaxis of Bacterial Infections.

5.    Canadian Application Number 2176808

      Compounds and Pharmaceutical Compositions for the Treatment and
      Prophylaxis of Bacterial Infections.

6.    European Patent Application Number 95902653

      A New Method for the Treatment and Prophylaxis of Bacterial Infection.

7.    U.S. Serial Number 08/154,035 - Abandoned

      Treatment or Prophylaxis of Diseases Caused by Pilus-Forming Bacteria.

8.    U.S. Serial Number O8/462,436

      Method for Treatment and Prophylaxis of Bacterial Infections.

9.    U.S. Serial Number 08/465,275

      Treatment or Prophylaxis of Diseases Caused by Pilus-Forming Bacteria.

10.   U.S. Serial Number 08/640,877

      Compounds and Pharmaceutical Compositions for the Treatment and
      Prophylaxis of Bacterial Infections.

11.   PCT/US94/13455 - Abandoned

      Treatment or Prophylaxis of Diseases Caused by Pilus-Forming Bacteria.
<PAGE>

                                   APPENDIX B
<PAGE>

                         NONEXCLUSIVE LICENSE AGREEMENT

                                    Between

                       Washington University in St. Louis
                                    Licensor

                                      And

                           SIGA Pharmaceuticals, Inc.
                                    Licensee

Introduction: This Agreement is made and entered into this ___ day of February,
2000 by and between Washington University in St. Louis, a corporation
established by special act of the Missouri General Assembly approved February
22, 1853 and acts amendatory thereto, having its principal office at One
Brookings Drive, St. Louis, Missouri 63130 (hereinafter "WU") and SIGA
Pharmaceuticals, Inc., having its principal office at 420 Lexington Ave, Suite
620, New York, NY 10120 (hereinafter "SIGA"). WU and SIGA may be referred to
individually as a "Party" or collectively as the "Parties".

1.    Background. WU is the owner of certain Patent Rights, Tangible Research
      Property and Technical Information (collectively, Intellectual Property,
      all as hereinafter defined) relating to polypeptides and antibodies useful
      for the diagnosis and treatment of pathogenic Neisseria and other
      organisms having Type IV pilin, and WU has the right to grant licenses
      thereto. WU wishes to allow the Intellectual Property to be used to
      further scientific research and for new product development and other
      applications in the public interest and is willing to grant a license for
      such uses. SIGA represents to WU that it has the necessary product
      development, manufacturing and marketing capabilities to commercialize
      products based on such Intellectual Property. SIGA desires to obtain a
      license to use these properties and information for its own commercial
      research and development endeavors upon the terms and conditions set forth
      in this Agreement. In consideration of these premises and the mutual
      promises contained herein, the Parties further agree as follows.

2.    Definitions. For the purposes of this Agreement, the following words and
      phrases will have the meanings assigned to them below.

2.1   Agreement: This nonexclusive license agreement.

2.2   Calendar Half/Year: Each six months period or portion thereof beginning on
      January 1 or July 1; or each twelve month period, or portion thereof,
      beginning on January 1.

2.3   Combination Product: Any product that is comprised in part of a Licensed
      Product and in part of one or more other components which are not
      themselves Licensed Products (the "Other Components"). Other Components do
      not include surfactants, diluents and carriers.

2.4   Effective Date: [The day, month and year written in the Introduction].

2.5   Field: Human and veterinary antimicrobial therapeutic and prophylactic
      compounds and vaccines.

2.6   First Commercial Sale: The date of first transfer by SIGA or its
      Sublicensees to an unrelated third party of a Licensed Product for
      compensation (including equivalent cash value for trades or other non-cash
      payments). The transfer of Licensed Products by SIGA and its Sublicensees
      strictly for its own laboratory research and development purposes,
      beta-testing and/or clinical testing does not constitute a First
      Commercial Sale for the purposes of this Agreement, provided that SIGA
      receives no payment for such Licensed Product in excess of the fully
      burdened (i.e., direct and indirect) costs of producing and transporting
      such materials.

2.7   Intellectual Property: Patent Rights patents and patent applications,
      trademarks, service marks, copyrights, mask works, trade secrets, Tangible
      Research Property and Technical Information.

2.8   Licensed Product: Any product or service which is made, made for, used,
      sold or imported by SIGA and/or its Sublicensees which (a) in the absence
      of this license Agreement would infringe at least one valid claim, (b)
      uses, is used in, or is made using a process covered by a valid claim, or
      (c) is made with or derived from a compound or composition covered by a
      valid claim. Licensed Product includes any product made, and method or
      process used, in whole or in part using Tangible Research Property or
      Technical Information.

2.9   Net Sales: For purposes of computing royalties, gross amounts received by
      SIGA or its Sublicensees for Sales of Licensed Products less qualifying
      costs, taxes and discounts, as set forth below, which are

<PAGE>

      actually invoiced and borne by SIGA and its Sublicensees. Deductions for
      calculating Net Sales are limited to the following:

2.9.1   Trade, quantity and cash discounts

2.9.2   Credits, allowances or refunds, not exceeding the original invoice
        amount, for claims, damaged goods, rejections or returns.

2.9.3   Prepaid outbound transportation expenses and freight insurance premiums

2.9.4   Excise, sale, use, value added or other taxes levied by a governmental
        agency, other than income taxes.

2.10  Patent Rights: US Patent No. 5,834,591 and all foreign counterparts,
      continuations, continuations-in-part, divisions, extensions,
      reexaminations and reissues thereof, which trace their earliest priority
      filing date by unbroken lineage to this patent and its parent
      applications.

2.11  Sale: Any transaction in which a Licensed Product is exchanged for value.
      A Sale of a Licensed Product will be deemed to have been made at the time
      SIGA or its Sublicensee invoices, ships, or receives value for, whichever
      occurs first, a Licensed Product.

2.12  Sublicensee: A person or entity to which SIGA has granted a sublicense
      under the license rights granted to SIGA in Article 3 of this Agreement.

2.13  Sublicensing Revenue: All fees and cash equivalent for securities,
      equipment and other property received by SIGA from its Sublicensees for
      the grant of any sublicense. Said Sublicensing Revenue will exclude any
      research payments made to SIGA by any Sublicensee.

2.14  Tangible Research Property: The physical embodiments of Patent Rights and
      Technical Information, including all progeny and derivatives thereof.

2.15  Technical Information: All ideas, data, know-how, trade secrets, research
      information, methods, procedures or processes, biological or chemical
      materials, owned by WU, resulting from research performed by or under the
      direction of Dr. Stephan Normark et al, which contribute to the practice
      of the inventions in the Patent Rights and the commercialization of
      Licensed Products.

2.16  Term: Commences on the Effective Date and continues until the expiration
      of the last of the patents included in the Patent Rights to expire,
      unless earlier terminated in accordance with this Agreement. A patent will
      be understood to expire at midnight on the day of its expiration.

2.17  Territory: Anywhere in the world except for countries to which export of
      technology or goods is prohibited by applicable U.S. export control laws
      or regulations.

2.18  Valid Claim: A claim (a) of a pending Patent Rights patent application
      which claim has not been pending for longer than seven years, or (b) of an
      issued and unexpired Patent Rights patent which has not been held invalid
      or unenforceable by a court or other governmental agency of competent
      jurisdiction in a decision or order that is not subject to an appeal.

3.    License Grant. Subject to the terms and conditions set forth in this
      Agreement, WU hereby grants to SIGA and SIGA hereby accepts, the following
      license during the Term in the Territory:

3.1   A nonexclusive, fee- and royalty-bearing license, including the right to
      grant sublicenses, under the Intellectual Property, to make, have made,
      sell, offer for sale, use, and import Licensed Products in the Field.

3.2   The right to grant sublicenses granted to SIGA under this Agreement is
      subject to the following conditions:

3.2.1   In each sublicense, SIGA must prohibit the Sublicensee from further
        sublicensing and require that the Sublicensee is subject to the terms
        and conditions of the license granted to SIGA under this Agreement.

3.2.2   Within thirty days of the effective date of any sublicense, SIGA must
        send to WU a complete copy of the sublicense. If the original sublicense
        is written in a language other than English, then SIGA must also send to
        WU within the allotted time a translation of the sublicense written in
        English.

3.2.3   If SIGA enters bankruptcy or receivership, voluntarily or involuntarily,
        Sublicensing Revenue then or thereafter due to SIGA will, upon notice
        from WU to any Sublicensee, become owed directly to WU for the account
        of SIGA. WU will remit to SIGA any amounts received that exceed the sum
        actually owed by SIGA to WU.

3.2.4   Any sublicense granted by SIGA under this Agreement will remain in
        effect in the event that this Agreement is terminated prior to
        expiration. Any Sublicensee will automatically become a direct licensee
        of WU under the rights originally sublicensed to it by SIGA provided the

<PAGE>

      Sublicensee did not cause the termination of this Agreement and the
      Sublicensee agrees to comply with all the terms of this Agreement and to
      fulfill all the responsibilities of SIGA hereunder.

3.2.5 SIGA will be primarily liable to WU for all of SIGA's obligations
      contained in this Agreement. Any act or omission by a Sublicensee that
      would be a breach of this Agreement if imputed to SIGA will be deemed to
      be a breach by SIGA of this Agreement.

3.3   The license "to have made" granted in Section 3.1 means that SIGA or its
      Sublicensee may contract with a third party or parties to manufacture
      Licensed Products for SIGA or its Sublicensee. SIGA will require any
      contractors to assume confidentiality obligations consonant with Article 6
      of this Agreement.

3.4   SIGA and its Sublicensees have no ownership rights of any kind in the
      Intellectual Property licensed under this Agreement. All ownership rights
      remain the property of WU. WU will retain all original versions of
      Tangible Research Property and Technical Information licensed and will
      retain control over the same at all times. The delivery of Tangible
      Research Property and Technical Information and grant of license rights
      thereto under this Agreement do not constitute a sale of the same.

3.5   In accordance with Public Laws 96-517, 97-256 and 98-620, codified at 35
      U.S.C. section section 200-212, the United States government retains
      certain rights to inventions arising from federally supported research or
      development. Under these laws and implementing regulations, the government
      may impose requirements on such Inventions. Licensed Products embodying
      inventions subject to these laws and regulations sold in the United States
      must be substantially manufactured in the United States. The license
      rights granted in this Agreement are expressly made subject to these laws
      and regulations as they may be amended from time to time. SIGA agrees to
      abide by these laws and regulations.

3.6   SIGA will ensure that where applicable "Patent Pending" or the Patent
      Rights patent number or application serial number appears on all Licensed
      Products or their labels.

4.    Fees, Payments and Royalties.

4.1   License Maintenance Payments. SIGA must pay to WU non-refundable,
      non-creditable license maintenance payments as follows:

4.1.1 Payment equal to $10,000 per each Calendar Year Beginning on January 1,
      2001 and each year thereafter.

4.1.2 The payments required in Sections 4.1.1 must be made no later than January
      31 of each respective Calendar Year. License maintenance payments cease
      the Calendar Year following the Year in which the First Commercial Sale in
      the U.S. of a Licensed Product occurs.

4.2   SIGA will pay WU ten percent (10%) of all Sublicensing Revenue received
      from its Sublicensees within 30 days of receipt by SIGA.

4.3   Milestone Payments. SIGA will pay the following milestone payments for
      each discrete molecule that is a Licensed Product under this Agreement as
      follows:

      i.    Completion of Phase I IND clinical trials - $50,000;

      ii.   Completion of Phase II IND clinical trials - $50,000;

      iii.  Completion of Phase III IND clinical trials - $200,000; and

      iv.   Product approval (PLA) - $250,000

4.4   Minimum Royalty. SIGA must pay to WU a non-refundable minimum royalty of
      $50,000 for each Licensed Product sold by SIGA and/or its Sublicensees.
      The first calendar period for which the minimum royalty will be paid will
      begin on the first day of the Calendar Half following the Calendar Half in
      which the First Commercial Sale in the U.S. of that Licensed Product
      occurs.

4.5   Earned Royalty. SIGA must pay to WU an earned royalty of one percent (1%)
      of the Net Sales of Licensed Product(s) made, made for, used, imported or
      sold by SIGA or its Sublicensees.

4.5.1   Earned royalties paid are fully creditable against minimum royalties
        called for in Section 4.4 for the period in which the earned royalties
        are accumulated and reported.

4.5.2   Earned royalties will be accumulated and reported each Calendar Half.
        SIGA will pay to WU earned royalties accumulated during a Calendar Half
        on the January 31 or July 31 immediately following the end of that
        Calendar Half.

4.6     Licensed Products may be made, used, imported or sold in combination
        with or as part of other products which are covered by a claim of a
        third party's patent or by other intellectual property rights of a third
        party, requiring a license to enable
<PAGE>

      SIGA to make, use, sell or offer for sale, or import Combination Products.
      To calculate the value of Net Sales of Combination Products, the gross
      sales of such Products will be multiplied by the fraction A/(A + B) where
      A is the fair market value of the Licensed Product when sold separately,
      and B is the fair market value of the Other Component when sold
      separately. Allowed deductions may then be subtracted from the proportion
      of gross sales attributable to the Licensed Product to compute Net Sales.

4.7   When a Licensed Product or its manufacture, use, sale or importation is
      covered by more than one Valid Claim or patent or patent application
      within the Patent Rights licensed hereunder, SIGA will only be obligated
      to pay royalties and fees or make payments as if there were only one Valid
      Claim.

4.8   Patent expenses will be borne equally by WU and SIGA. SIGA will reimburse
      WU within thirty (30) days of receipt of invoices for one half of incurred
      patent expenses. If WU grants additional nonexclusive licenses, then
      future costs will be borne pro rata by WU, SIGA, and all such licensees.

5.    Place and Method of Payment; Reports and Records; Audit; Interest.

5.1   All dollar ($) amounts referred to in this Agreement are expressed in
      United States dollars. All payments to WU under this Agreement must be
      made in United States dollars by check or electronic transfer payable to
      "Washington University". Any Sales revenues for Licensed Products received
      by SIGA in currency other than United States dollars will be converted to
      United States dollars at the conversion rate for the foreign currency as
      published in the eastern edition of The Wall Street Journal as of the last
      business day in the United States of the applicable Calendar Half.

5.2   Checks will be dispatched to WU's correspondence address given in Article
      14 below. Electronic transfers will be made to a bank account designated
      by WU.

5.3   SIGA must deliver to WU within the time provided in Article 4 for making
      the respective payment after the end of each Calendar Half in which earned
      royalties are owed and payable, a written report setting forth the
      calculation of the payments made to WU for that Calendar Half, including
      at least the following:

5.3.1   The number of Licensed Products manufactured, sold, used or imported and
        volume of Sales by country.

5.3.2   Gross receipts for Sales of Licensed Products including total amounts
        invoiced, billed or received.

5.3.3   Allowed deductions as defined in Section 2.9, giving totals by each
        type.

5.3.4   Net Sales of Licensed Products by country.

5.3.5   Royalties, fees and payments due to WU giving totals for each category.

5.3.6   Earned royalty amounts credited against minimum royalty payments or vice
        versa.

5.4   SIGA must maintain, and require its Sublicensees to maintain, complete and
      accurate books of account and records which would enable an independent
      auditor to verify the amounts paid as royalties, fees and payments under
      this Agreement. The books and records must be maintained for five years
      following the Calendar Half after submission of the reports required by
      this Article. Upon reasonable notice by WU, SIGA must give WU (or auditors
      or inspectors appointed by and representing WU) access to all books and
      records relating to Sales of Licensed Products by SIGA to conduct an audit
      or review of those books and records. This access must be available at
      least once during each Calendar Half, for a reasonable time, during
      regular business hours, during the Term of the Agreement and for the five
      calendar years following the year in which termination or expiration
      occurs. If the independent auditor determines that amounts paid to WU as
      royalties, fees and payments by SIGA differ by 5% or more from amounts
      actually owed for any Calendar Half, then SIGA must pay WU the costs and
      expenses of its accountants and auditors in connection with the review and
      audit.

5.5   Any amounts that are not paid by SIGA to WU within thirty (30) days of the
      due date will accrue interest from the due date until payment is made at
      an annual rate equal to two percent above the prime rate published in the
      Eastern edition of The Wall Street Journal during the period of arrearage
      (or the maximum allowed by law, if less than prime.) This provision
      applies to all payments that SIGA must make under this Agreement.

6.    Confidentiality.

6.1   All Patent Rights patent applications, Tangible Research Property and
      Technical Information designated by WU representatives as confidential at
      the time of delivery to SIGA, or within a reasonable period after said
      delivery, and all of Articles 4 and 5 of this Agreement, are Confidential
      Information.
<PAGE>

6.2   SIGA will maintain in secrecy and not disclose to any third party any of
      WU's Confidential Information after it has been so designated. SIGA will
      ensure that its employees have access to WU's Confidential Information
      only on a need-to-know basis and are obligated by written agreement to
      keep SIGA's confidentiality obligations under this Agreement.

6.3   The obligations of confidentiality specified in this Article will not
      extend to Confidential Information which:

6.3.1   Becomes part of the public domain through no fault of SIGA.

6.3.2   Was known to SIGA before disclosure to SIGA by WU as established by
        clear and convincing documentary evidence;

6.3.3   Comprises identical subject matter to that which had been originally and
        independently developed by SIGA personnel without knowledge or use of
        any WU Confidential Information; or

6.3.4   Was disclosed to SIGA by a third party, having a right to make the
        disclosure.

6.4   Notwithstanding the other terms of this Article 6, SIGA may, to the extent
      necessary, use Confidential Information to secure governmental approval to
      clinically test or market a Licensed Product, to comply with a court order
      or governmental rule or regulation, or to show to a potential contractor
      subject to an appropriate confidentiality agreement. SIGA will, in any
      such use, take all reasonably available steps to maintain confidentiality
      of the disclosed information and to guard against any further disclosure.

7.    Representations and Warranties.

7.1   WU represents and warrants that:

7.1.1   WU is a corporation organized, existing and in good standing under the
        laws of Missouri.

7.1.2   It has the authority to enter into this Agreement and that the person
        signing on its behalf has the authority to do so.

7.1.3   To the best of its knowledge, it is the owner (subject to any rights
        retained by the U.S. government by operation of law of the Intellectual
        Property licensed in this Agreement and that it has the authority to
        grant the licenses set forth herein.

7.2   SIGA represents and warrants that:

7.2.1   It is a corporation duty organized, existing, and in good standing under
        the laws of Delaware.

7.2.2   The execution, delivery and performance of this Agreement have been
        authorized by all necessary corporate action on the part of SIGA and
        that the person signing the Agreement on behalf of SIGA has the
        authority to do so.

7.2.3   The making or performance of this Agreement would not violate any
        separate agreement it has with any other person or entity.

7.2.4   It is not a party to any agreement or arrangement that would prevent it
        from performing its duties and fulfilling its obligations to WU under
        this Agreement.

7.2.5   Has the insurance coverage called for in Article 10.

7.2.6   Is unaware of any pending litigation or claims against SIGA that could
        impair its ability or capacity to perform and fulfill its duties and
        obligations under this Agreement.

7.3   Nothing in this Agreement is or will be construed as:

7.3.1   A warranty or representation by WU as to the validity or scope of its
        Patent Rights, Tangible Research Property or Technical Information.

7.3.2   Granting by implication, estoppel or otherwise any licenses or rights
        under patents or other intellectual property rights of WU or other
        persons, other than the rights expressly granted above to Intellectual
        Property identified on the attached Exhibits.

7.3.3   An obligation to furnish any technology or technological information
        other than that identified in the attached Exhibits.

7.3.4   A grant of rights to either Party to use the name of the other in
        advertising, publicity, or otherwise, except as expressly authorized
        herein, without the permission of the other Party.

7.4   THE INTELLECTUAL PROPERTY IS PROVIDED "AS IS" AND WU MAKES NO
      REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
      IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
      FITNESS OF ANY LICENSED PRODUCT FOR A PARTICULAR PURPOSE, OR THAT THE USE
      OF ANY

<PAGE>

      LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR
      OTHER RIGHTS, OR ANY OTHER EXPRESS OR IMPLIED WARRANTIES. WU WILL NOT BE
      LIABLE TO SIGA ITS SUCCESSORS, ASSIGNS, CONTRACTORS OR SUBLICENSEES OR ANY
      THIRD PARTY REGARDING ANY CLAIM ARISING FROM SIGA's USE OF LICENSED
      INTELLECTUAL PROPERTY OR ANY LICENSED PRODUCT OR FROM THE MANUFACTURE,
      USE, IMPORTATION OR SALE OF LICENSED PRODUCTS, OR ANY CLAIM FOR LOSS OF
      PROFITS, LOSS OR INTERRUPTION OF BUSINESS, OR FOR INDIRECT, SPECIAL OR
      CONSEQUENTIAL DAMAGES OF ANY KIND.

8.    Infringement, Enforcement, and Defense.

8.1   This license includes the right, revocable by WU, to bring actions in WU's
      name to enforce the Intellectual Property rights against third parties or
      to defend the same in WU's name against claims by third parties, subject
      to the terms and conditions set forth in this Agreement

8.2   WU and SIGA will immediately give to the other written notice of any known
      or suspected infringement of the Patent Rights or unauthorized use of the
      Tangible Research Property or Technical Information by third parties.

8.3   SIGA at its sole expense, if SIGA is the sole licensee (or prorated with
      other licensees if any), will attempt to abate any infringement of the
      Patent Rights or unauthorized use of Tangible Research Property or
      Technical Information by third parties. SIGA has the right to institute
      and conduct actions against third parties for infringement and unfair
      trade practices through outside counsel of its choice who are reasonably
      acceptable to WU. SIGA will keep WU informed of all proceedings and
      provide copies of all pleadings and other papers related to such actions.
      WU will provide reasonable assistance to SIGA in prosecuting any such
      actions.

8.4   SIGA at its sole expense will defend third party claims of patent or
      intellectual property infringement and injury, death or product liability
      brought against SIGA and/or WU. SIGA will have the right to conduct the
      defense of such actions through outside counsel of its choice who are
      reasonably acceptable to WU. WU will provide all reasonable assistance for
      the defense of such claims and SIGA will keep WU informed of all
      proceedings and provide copies of all pleadings and other papers related
      to such actions.

8.5   If more than one nonexclusive licensee participates in bringing or
      defending an action under this Article, then the costs and fees for such
      action will be shared pro-rata among such licensees.

8.6   Notwithstanding anything stated herein to contrary, SIGA will not be
      permitted to settle or compromise any claim or action in a manner that may
      impose restrictions or obligations on WU or grant rights or concessions to
      Intellectual Property or Licensed Products without WU's prior written
      consent.

8.7   SIGA will be entitled to offset 50% of its attorney's fees and expenses
      incurred in abating third party infringement or unfair trade practices or
      bringing or defending any action against third parties under this Article,
      against the royalties due under Sections 4.4 and 4.5.

9.    Indemnification. SIGA and its Sublicensees will indemnify, defend and hold
      harmless WU, its trustees, faculty, staff, students and agents from and
      against any and all liability, loss, damage, action, claim or expense
      (including attorney's fees and costs at trial and appellate levels) in
      connection with any claim, suit, action, demand or judgment arising out of
      (a) the use of any Intellectual Property in the design, development,
      production, manufacture, sale or offer for sale, use, importation, lease,
      marketing or promotion of any Licensed Product by SIGA or its
      Sublicensees, contractors or agents or (b) injury or death to any person,
      or damage to property caused or allegedly caused by or relating in any way
      to any person's use of any Licensed Products, or (c) any third party claim
      that any use or licensing of the Intellectual Property under this
      Agreement violates or infringes that party's intellectual property rights.
      In legal actions undertaken or defended by SIGA pursuant to this
      indemnification provision, SIGA may select counsel of its own choice who
      are reasonably acceptable to WU.

10.   Insurance.

10.1  SIGA and its Sublicensees will at all times comply, through insurance or
      self-insurance, with all statutory workers' compensation and employers'
      liability requirements covering all employees with respect to activities
      undertaken in performance of this Agreement. This requirement may be met
      by insurance or self-insurance coverage provided to SIGA by a Sublicensee.

10.2  In addition to the foregoing, SIGA and any Sublicensees as appropriate,
      will at appropriate times obtain and maintain occurrence-based Broad Form
      Comprehensive General Liability (BFCGL) insurance with a reputable and
      financially secure insurance carrier(s) having at least an "A" rating and
      An A.M. Best Class Size of at least X. Deviations from the rating or class
      size must be approved in advance by WU. The BFCGL insurance will include,
      among all other coverages standing in

<PAGE>

such BFCGL policies, coverage for product liability and contractual liability.

10.3  The insurance will provide to SIGA or each Sublicensee minimum annual
      limits of $2 million in liability insurance for the WU Licensed Products,
      and list WU as an additional insured.

10.4  All policies will be purchased and kept in force during the term of the
      Agreement.

10.5  SIGA or any Sublicensee as appropriate, will provide WU with a certificate
      of insurance and will provide a complete copy of the insurance policy to
      WU as soon as one becomes available and notices or subsequent renewals.
      The certificate must provide that SIGA's carrier will notify WU in writing
      at least thirty days prior to cancellation or material change in coverage.

10.6  WU may periodically evaluate the adequacy of the minimum coverages of
      insurance specified in this Article. WU reserves the right to require SIGA
      to adjust the insurance coverages. The specified minimum coverages do not
      constitute a limitation on SIGA's or its Sublicensees' obligation to
      indemnify WU under this Agreement.

11.   Termination.

11.1  SIGA may terminate this Agreement with or without cause on ninety days
      written notice to WU. The license rights granted hereunder terminate at
      the end of the ninety day period.

11.2  WU may terminate on thirty days written notice to SIGA upon breach by SIGA
      of the Agreement. The termination becomes effective at the end of the
      thirty day period unless SIGA has fully cured the breach within the thirty
      days.

11.3  If SIGA enters bankruptcy or receivership, voluntarily or involuntarily,
      all obligations of WU and all rights (but not obligations) of SIGA and
      this Agreement terminate immediately without the need for either WU or
      SIGA to take any action.

11.4  Upon termination of this Agreement for any reason, SIGA must return to WU
      all Confidential Information (as defined in Article 6) received from WU
      during the Term of this Agreement.

11.5  On termination by either Party for any reason, the license rights granted
      to SIGA under Article 3 terminate when termination of the Agreement is
      effective. SIGA's obligations to pay fees, royalties or other payments
      accruing prior to termination survive termination.

12.   Use of Names. Neither Party may use the name of the other for any
      commercial, advertisement, or promotional purpose without the written
      consent of the other.

13.   Assignment or Pledge of Agreement. Neither this Agreement nor any portion
      of it may be assigned by either Party to anyone else without the written
      consent of the other Party, and such consent will not be unreasonably
      withheld. Notwithstanding this, SIGA may assign the entire Agreement,
      without WU's consent, to an entity that succeeds to substantially all of
      its business or assets by way of merger, sale, acquisition or otherwise,
      provided that the successor agrees in writing to assume all the
      obligations and liabilities of SIGA to WU. The rights granted in this
      Agreement may not be pledged in any way by SIGA or any Sublicensee to
      secure any purchase, lease or loan.

14.   Notice. Any required or permissive notice under this Agreement will be
      sufficient if in writing and delivered personally, by recognized national
      overnight courier, or by registered or certified mail, postage prepaid and
      return receipt requested, to the address below and will be deemed to have
      been given as of the date shown on the receipt if by certified or
      registered mail, or the day following dispatch if by overnight courier.

If to WU:

Washington University
Center of Technology Management
Campus Box 8013
660 South Euclid Avenue
St. Louis MO 63110

If to SIGA:

Joshua D. Schein
SIGA Pharmaceuticals, Inc.
420 Lexington Avenue
Suite 620
New York, NY 10120

15.   General Provisions.

15.1  This Agreement will be governed and interpreted according to the laws of
      Missouri.

15.2  None of the terms or this Agreement can be waived except by mutual written
      consent of the Parties.

15.3  This Instrument comprises the entire agreement and understanding of the
      Parties relating to the subject matter of the Agreement.
<PAGE>

15.4  This Agreement cannot be changed, modified or amended except by a written
      instrument subscribed by authorized representatives of the respective
      Parties.

15.5  Neither Party is an agent or contractor of the other as a result of any
      transaction under or related to this Agreement. Neither Party may in any
      way pledge the other party's credit or incur any obligation on behalf of
      the other Party.

15.6  Each Party is liable to the other only for actual damages for breach of
      this Agreement or any warranty contained herein, and not for any special,
      consequential, incidental, or indirect damages arising out of this
      Agreement, however caused, under any theory of liability.

15.7  The provisions of this Agreement are severable in that if any provision in
      the Agreement is determined to be invalid or unenforceable under any
      controlling body of law, that will not affect the validity or
      enforceability of the remaining provisions of the Agreement.

15.8  If the performance of any obligation under this Agreement is prevented or
      impaired by acts of war, riot, acts or defaults of common carriers, or
      governmental laws or regulations, a Party will be excused from performance
      so long as such cause continued to prevent or impair that Party's
      performance. The Party claiming force majeure excuse must promptly notify
      the other Party of the existence of the cause and must at all times use
      diligent efforts to resume and complete performance. This Section 15.8
      will not excuse SIGA's obligation to pay fees, payments and royalties
      under Article 4 of the Agreement.

15.9  WU has no responsibility for product design and development, servicing,
      distribution, or marketing, or any decisions made or strategies devised in
      areas related to Licensed Products.

15.l0 Articles 4, 5, 6, 9, 10, and 12 above will survive expiration or
      termination of this Agreement.

15.11 This Agreement will be executed in two original versions, one belonging to
      each Party. The originals are valid counterparts of each other.

Witness: The parties have caused this Agreement to be executed in duplicate by
their duly qualified representatives.

For SIGA                                     For WU:

-----------------------------------          -----------------------------------
Signature                                    Signature
Name                                         Name
Title                                        Title

------------                                 ------------
Date                                         Date
<PAGE>

                         NON EXCLUSIVE LICENSE AGREEMENT

                                     Between

                       Washington University in St. Louis
                                    Licensor

                                       And

                           SIGA Pharmaceuticals, Inc.
                                    Licensee

Introduction: This Agreement is made end entered into this 17th day of February,
2000 by and between Washington University in St. Louis, a corporation
established by special act of the Missouri General Assembly approved February
22, 1853 and acts amendatory thereto, having its principal office at One
Brookings Drive, St. Louis, Missouri 63130, (hereinafter "WU") and SIGA
Pharmaceuticals, Inc., having its principal office at 420 Lexington Ave, Suite
620, New York, NY 10120 (hereinafter "SIGA"). WU and SIGA may be referred to
individually as a "Party" or collectively as the "Parties".

1.    Background. WU is the owner of certain Patent Rights, Tangible Research
      Property and Technical Information (collectively, Intellectual Property,
      all as hereinafter defined) relating to polypeptides and antibodies useful
      for the diagnosis and treatment of pathogenic Nelsseria and other
      organisms having type IV pllln, and WU has the right to grant licenses
      thereto. WU wishes to allow the Intellectual Property to be used to
      further scientific research end for new product development and other
      applications in the public interest and is willing to grant a license for
      such uses. SIGA represents to WU that it has the necessary product
      development, manufacturing and marketing capabilities to commercialize
      products based on such Intellectual Property. SIGA desires to obtain a
      license to use these properties and information for its own commercial
      research and development endeavors upon the terms and conditions set forth
      in this Agreement, In consideration of these premises and the mutual
      promises contained herein, the Parties further agree as follows.

2.    Definitions. For the purposes of this Agreement, the following words and
      phrases will have the meanings assigned to them below.

2.1   Agreement: This nonexclusive license agreement.

2.2   Calendar Half/Year: Each six month period or portion thereof beginning on
      January 1 or July 1; or each twelve month period, or portion thereof,
      beginning on January 1.

2.3   Combination Product: Any product that is comprised in part of a Licensed
      Product and in part of one or more other components which are not
      themselves Licensed Products (the "Other Components"). Other Components do
      not include surfactants, diluents and carriers.

2.4   Effective Date: [The day, month and year written in the Introduction].

2.5   Field: Human and veterinary antimicrobial therapeutic and prophylactic
      compounds and vaccines.

2.6   First Commercial Sale: The date of first transfer by SIGA or its
      Sublicensees to an unrelated third party of a Licensed Product for
      compensation (including equivalent cash value for trades or other non-cash
      payments). The transfer of Licensed Products by SIGA and its Sublicensees
      strictly for its own laboratory research and development purposes,
      beta-testing and/or clinical testing does not constitute a First
      Commercial Sale for the purposes of this Agreement, provided that SIGA
      receives no payment for such Licensed Product in excess of the fully
      burdened (i.e., direct and indirect) costs of producing end transporting
      such materials.

2.7   Intellectual Property: Patent Rights patents and patent applications,
      trademarks, service marks, copyrights, mask works, trade secrets, Tangible
      Research Property and Technical Information.

2.8   Licensed Product: Any product or service which is made, made for, used,
      sold or imported by SIGA and/or its Sublicensees which (a) in the absence
      of this license Agreement would infringe at least one valid claim, (b)
      uses, is used in, or is made using a process covered by a valid claim, or
      (c) is made with or derived from a compound or composition covered by a
      valid claim. Licensed Product includes any product made, and method or
      process used, in whole or in part using Tangible Research Property or
      Technical Information.

2.9   Net Sales: For purposes of computing royalties, gross amounts received by
      SIGA or its Sublicensees for Sales of Licensed Products less qualifying
      costs, taxes and discounts, as set forth below, which are
<PAGE>

      actually invoiced and borne by SIGA and its Sublicensees. Deductions for
      calculating Net Sales are limited to the following:

2.9.1     Trade, quantity and cash discounts

2.9.2     Credits, allowances or refunds, not exceeding the original invoice
          amount, for claims, damaged goods, rejections or returns.

2.9.3     Prepaid outbound transportation expenses and freight insurance
          premiums

2.9.4     Excise, sale, use, value added or other taxes levied by a
          governmental agency, other than income taxes.

2.10  Patent Rights: US Patent No. 5,834,591 and all foreign counterparts,
      continuations, continuations-in-part, divisions, extensions,
      reexaminations and reissues thereof, which trace their earliest priority
      filing date by unbroken lineage to this patent and its parent
      applications.

2.11  Sale: Any transaction in which a Licensed Product is exchanged for value.
      A Sale of a Licensed Product will be deemed to have been made at the time
      SIGA or its Sublicensee Invoices, ships, or receives value for, whichever
      occurs first, a Licensed Product.

2.12  Sublicensee: A person or entity to which SIGA has granted a sublicense
      under the license rights granted to SIGA in Article 3 of this Agreement.

2.13  Sublicensing Revenue: All fees and cash equivalent for securities,
      equipment and other property received by SIGA from its Sublicensees for
      the grant of any sublicense. Said Sublicensing Revenue will exclude any
      research payments made to SIGA by any Sublicensee.

2.14  Tangible Research Property: The physical embodiments of Patent Rights
      Information, including all progeny and derivatives thereof.

2.15  Technical Information: All ideas, data, know-how, trade secrets, research
      information, methods, procedures or processes, biological or chemical
      materials, owned by WU, resulting from research performed by or under the
      direction of Dr. Stephan Normark et al, which contribute to the practice
      of the inventions in the Patent Rights and the commercialization of
      Licensed Products.

2.16  Term: Commences on the Effective Date and continues until the expiration
      of the last of the patents included in the Patent Rights to expire, unless
      earlier terminated in accordance with this Agreement. A patent will be
      understood to expire at midnight on the day of its expiration.

2.17  Territory: Anywhere in the world except for countries to which export of
      technology or goods is prohibited by applicable U.S. export control laws
      or regulations.

2.18  Valid Claim: A claim (a) of a pending Patent Rights patent application
      which claim has not been pending for longer than seven years, or (b) of an
      issued and unexpired Patent Rights patent which has not been held Invalid
      or unenforceable by a court or other governmental agency of competent
      jurisdiction in a decision or order that is not subject to an appeal.

3.    License Grant. Subject to the terms and conditions set forth in this
      Agreement, WU hereby grants to SIGA and SIGA hereby accepts, the following
      license during the Term in the Territory:

3.1   A nonexclusive, fee- and royalty-bearing license, including the right to
      grant sublicenses, under the Intellectual Property, to make, have made,
      sell, offer for sale, use, and import Licensed Products in the Field.

3.2   The right to grant sublicenses granted to SIGA under this Agreement is
      subject to the following conditions:

3.2.1 In each sublicense, SIGA must prohibit the Sublicensee from further
      sublicensing and require that the Sublicensee is subject to the terms and
      conditions of the license granted to SIGA under this Agreement.

2.9.1     Trade, quantity and cash discounts

3.2.2     Within thirty days of the effective date of any sublicense, SIGA must
          send to WU a complete copy of the sublicense. If the original
          sublicense is written in a language other than English, then SIGA
          must also send to WU within the allotted time a translation of the
          sublicense written in English.

3.2.3     If SIGA enters bankruptcy or receivership, voluntarily or
          involuntarily, Sublicensing Revenue then or thereafter due to SIGA
          will, upon notice from WU to any Sublicensee, become owed directly to
          WU for the account of SIGA. WU will remit to SIGA any amounts received
          that exceed the sum actually owed by SIGA to WU.

3.2.4     Any sublicense granted by SIGA under this Agreement will remain in
          effect in the event that this Agreement is terminated prior to
          expiration. Any Sublicensee will automatically become a direct
          licensee of WU under the rights originally sublicensed to it by SEGA
          provided the
<PAGE>

          Sublicensee did not cause the termination of this Agreement and the
          Sublicensee agrees to comply with all the terms of this Agreement and
          to fulfill all the responsibilities of SIGA hereunder.

3.2.5     SIGA will be primarily liable to WU for all of SIGA's obligations
          contained in this Agreement. Any act or omission by a Sublicensee that
          would be a breach of this Agreement if imputed to SIGA will be deemed
          to be a breach by SIGA of this Agreement.

3.3   The license "to have made" granted in Section 3.1 means that SIGA or its
      Sublicensee may contract with a third party or parties to manufacture
      Licensed Products for SIGA or its Sublicensee. SIGA will require any
      contractors to assume confidentiality obligations consonant with Article 6
      of this Agreement.

3.4   SIGA and its Sublicensees have no ownership rights of any kind in the
      Intellectual Property licensed under this Agreement. All ownership rights
      remain the property of WU. WU will retain all original versions of
      Tangible Research Property and Technical Information licensed and will
      remain control over the same at all times. The delivery of Tangible
      Research Property and Technical Information and grant of license rights
      thereto under this Agreement do not constitute a sale of the same.

3.5   In accordance with Public Laws 96-517, 97-256 and 98-620, codified at 35
      U.S.C. ss.ss. 200-212, the United States government retains certain rights
      to Inventions arising from federally supported research or development.
      Under these laws and implementing regulations, the government may impose
      requirements on such inventions. Licensed Products embodying inventions
      subject to these laws and regulations sold in the United States must be
      substantially manufactured in the United States. The license rights
      granted in this Agreement are expressly made subject to these laws and
      regulations as they may be amended from time to time. SIGA agrees to abide
      by these laws and regulations.

3.6   SIGA will ensure that where applicable "Patent Pending" or the Patent
      Rights patent number or application serial number appears on all Licensed
      Products or their labels.

4.    Fees, Payments and Royalties.

4.1   License Maintenance Payments. SIGA must pay to WU non-refundable,
      non-creditable license maintenance payments as follows:

4.1.1     Payments equal to $10,000 per each Calendar Year beginning January 1,
          2001 and each year thereafter.

4.1.2     The payments required in Sections 4.1.1 must be made no later than
          January 31 of each respective Calendar Year. License maintenance
          payments cease the Calendar Year following the Year in which the First
          Commercial Sale in the U.S. of a Licensed Product occurs.

4.2   SIGA will pay WU ten percent (10%) of all Sublicensing Revenue received
      from its Sublicensees within 30 days of receipt by SIGA.

4.2   Milestone Payments. SIGA will pay the following milestone payments for
      each discrete molecule that is a Licensed Product under this Agreement as
      follows:

      i.    Completion of Phase I IND clinical trials - $50,000;
      ii.   Completion of Phase II IND clinical trials - $50,000;
      iii.  Completion of Phase III IND clinical trials - $200,000; and
      iv.   Product approval (PLA) - $250,000

4.4   Minimum Royalty. SIGA must pay to WU a non-refundable minimum royalty of
      $50,000 for each Licensed Product sold by SIGA and/or its Sublicensees.
      The first calendar period for which the minimum royalty will be paid will
      begin on the first day of the Calendar Half following the Calendar Half in
      which the First Commercial Sale in the U.S. of that Licensed Product
      occurs.

4.5   Earned Royalty. SIGA must pay to WU an earned royalty of one percent (1%)
      of the Net Sales of Licensed Product(s) made, made for, used, imported or
      sold by SIGA or its Sublicensees.

4.5.1     Earned royalties paid are fully creditable against minimum royalties
          called for in Section 4.4 for the period in which the earned royalties
          are accumulated and reported.

4.5.2     Earned royalties will be accumulated and reported each Calendar Half.
          SIGA will pay to WU earned royalties accumulated during a Calendar
          Half on the January 31 or July 31 immediately following the end of
          that Calendar Half.

4.6   Licensed Products may be made, used, imported or sold in combination with
      or as part of other products which are covered by a claim of a third
      party's patent or by other intellectual property rights of a third party,
      requiring a license to enable
<PAGE>

      SIGA to make, use, sell or offer for sale, or import Combination Products.
      To calculate the Value of Net Sales of Combination Products, the gross
      sales or such Products will be multiplied by the fraction A/(A + B) where
      A is the fair market value of the Licensed Product when sold separately,
      and B is the fair market value of the Other Component when sold
      separately. Allowed deductions may then be subtracted from the proportion
      of gross sales attributable to the Licensed Product to compute Net Sales.

4.7   When a Licensed Product or its manufacture, use, sale or importation is
      covered by more than one Valid Claim or patent or patent application,
      within the Patent Rights licensed hereunder, SIGA will only be obligated
      to pay royalties and fees or make payments as if there were only one Valid
      Claim.

4.8   Patent expenses will be borne equally by WU and SIGA. SIGA will reimburse
      WU within thirty (30) days of receipt of invoices for one half of incurred
      patent expenses. If WU grants additional non-exclusive licenses, then
      future costs will be borne pro rata by WU, SIGA, and all such licensees.

5.    Place and Method of Payment; Reports and Records; Audit; Interest.

5.1   All dollar ($) amounts referred to in this Agreement are expressed in
      United States dollars. All payments to WU under this Agreement must be
      made in United States dollars by check or electronic transfer payable to
      "Washington University". Any Sales revenues for Licensed Products received
      by SIGA in currency other than United States dollars will be converted to
      United States dollars at the conversion rate for the foreign currency as
      published in the Eastern edition of The Wall Street Journal as of the last
      business day in the United States of the applicable Calendar Half.

5.2   Checks will be dispatched to WU's correspondence address given in Article
      14 below. Electronic transfers will be made to a bank account designated
      by WU.

5.3   SIGA must deliver to WU within the time provided in Article 4 for making
      the respective payment after the end of each Calendar Half in which earned
      royalties are owed and payable, a written report setting forth the
      calculation of the payments made to WU for that Calendar Half, including
      at least the following:

5.3.1     The number of Licensed Products manufactured, sold, used or imported
          and volume of Sales by country.

5.3.2     Gross receipts for Sales of Licensed Products including total amounts
          invoiced, billed or received.

5.3.3     Allowed deductions as defined in Section 2.9, giving totals by each
          type.

5.3.4     Net Sales of Licensed Products by country.

5.3.5     Royalties, fees and payments due to WU giving totals for each
          category.

5.3.6     Earned royalty amounts credited minimum royalty payments or vice
          versa.

5.4   SIGA must maintain, and require its Sublicensees to maintain, complete and
      accurate books of account and records which would enable an independent
      auditor to verify the amounts paid as royalties, fees and payments under
      this Agreement. The books and records must be maintained for five years
      following the Calendar Half after submission of the reports required by
      this Article. Upon reasonable notice by WU, SIGA must give WU (or auditors
      or inspectors appointed by and representing WU) access to all books end
      records relating to Sales of Licensed Products by SIGA to conduct an audit
      or review of those books and records. This access must be available at
      least once during each Calendar Half, for a reasonable time, during
      regular business hours, during the Term of the Agreement and for the five
      calendar years following the year in which termination or expiration
      occurs. If the independent auditor determines that amounts paid to WU as
      royalties, fees and payments by SIGA differ by 5% or more from amounts
      actually owed for any Calendar Half, then SIGA must pay WU the costs and
      expenses of its accountants and auditors in connection with the review and
      audit.

5.5   Any amounts that are not paid by SIGA to WU within thirty (30) days of the
      due date will accrue interest from the due date until payment is made at
      an annual rate equal to two percent above the prime rate published in the
      Eastern edition of The Wall Street Journal during the period of arrearage
      (or the maximum allowed by law, if less than prime.) This provision
      applies to all payments that SIGA must make under this Agreement.

6.    Confidentiality.

6.1   All Patent Rights patent applications, Tangible Research Property and
      Technical Information designated by WU representatives as confidential at
      the time of delivery to SIGA, or within a reasonable period after said
      delivery, and all of Articles 4 and 5 of this Agreement, are Confidential
      Information.
<PAGE>

6.2   SIGA will maintain in secrecy and not disclose to any third party any of
      WU's Confidential Information after it has been so designated. SIGA will
      ensure that its employees have access to WU's Confidential Information
      only on a need-to-know basis and are obligated by written agreement to
      keep SIGA's confidentiality obligations under this Agreement.

6.3   The obligations of confidentiality specified in this Article will not
      extend to Confidential Information which:

6.3.1     Becomes part of the public domain through no fault of SIGA.

6.3.2     Was known to SIGA before disclosure to SIGA by WU as established by
          clear and convincing documentary evidence;

6.3.3     Comprises identical subject matter to that which had been originally
          and independently developed by SIGA personnel without knowledge or use
          of any WU Confidential Information; or

6.3.4     Was disclosed to SIGA by a third party having a right to make the
          disclosure.

6.4   Notwithstanding the other terms of this Article 6, SIGA may, to the extent
      necessary, use Confidential Information to secure governmental approval to
      clinically test or market a Licensed Product, to comply with a court order
      or governmental rule or regulation, or to show to a potential contractor
      subject to an appropriate confidentiality agreement. SIGA will, in any
      such use, take all reasonably available steps to  maintain confidentiality
      of the disclosed Information and to guard against any further disclosure.

7.    Representations and Warranties.

7.1   WU represents and warrants that:

7.1.1     WU is a corporation organized, existing and in good standing under the
          laws of Missouri.

7.1.2     It has the authority to enter into this Agreement and that the person
          signing on its behalf has the authority to do so.

7.1.3     To the best of its knowledge, it is the owner (subject to any rights
          retained by the U.S. government by operation of law) of the
          Intellectual Property licensed in this Agreement and that it has the
          authority to grant the licenses set forth herein.

7.2   SIGA represents and warrants that:

7.2.1     It is a corporation duly organized, existing, and in good standing
          under the laws of Delaware.

7.2.2     The execution, delivery and performance of this Agreement have been
          authorized by all necessary corporate action on the part of SIGA and
          that the person signing the Agreement on behalf of SIGA has the
          authority to do so.

7.2.3     The making or performance of this Agreement would not violate any
          separate agreement it has with any other person or entity.

7.2.4     It is not a party to any agreement or arrangement that would prevent
          it from performing its duties and fulfilling its obligations to WU
          under this Agreement.

7.2.5     Has the insurance coverage called for in Article 10.

7.2.6     Is unaware of any pending litigation or claims against SIGA that could
          impair its ability or capacity to perform and fulfill its duties and
          obligations under this Agreement.

7.3   Nothing in this Agreement is or will be construed as:

7.3.1     A warranty or representation by WU as to the validity or scope of its
          Patent Rights, Tangible Research Property or Technical Information.

7.3.2     Granting by implication, estoppel or otherwise any licenses or rights
          under patents or other intellectual property rights of WU or other
          persons, other than the rights expressly granted above to Intellectual
          Property identified on the attached Exhibits.

7.3.3     An obligation to furnish any technology or technological information
          other than that identified in the attached Exhibits.

7.3.4     A grant of rights to either Party to use the name of the other in
          advertising, publicity, or otherwise, except as expressly authorized
          herein, without the permission of the other Party.

7.4   THE INTELLECTUAL PROPERTY IS PROVIDED "AS IS" AND WU MAKES NO
      REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
      IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
      FITNESS OF ANY LICENSED PRODUCT FOR A PARTICULAR PURPOSE, OR THAT THE USE
      OF ANY
<PAGE>

      LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR
      OTHER RIGHTS, OR ANY OTHER EXPRESS OR IMPLIED WARRANTES. WU WILL NOT BE
      LIABLE TO SIGA ITS SUCCESSORS, ASSIGNS, CONTRACTORS OR SUBLICENSEES OR ANY
      THIRD PARTY REGARDING ANY CLAIM ARISING FROM SIGA's USE OF LICENSED
      INTELLECTUAL PROPERTY OR ANY LICENSED PRODUCT OR FROM THE MANUFACTURE,
      USE, IMPORTATION OR SALE OF LICENSED PRODUCTS, OR ANY CLAIM FOR LOSS OR
      PROFITS, LOSS OR INTERRUPTION OF BUSINESS, OR FOR INDIRECT, SPECIAL OR
      CONSEQUENTIAL DAMAGES OF ANY KIND.

8.    Infringement, Enforcement, and Defense.

8.1   This license includes the right, revocable by WU, to bring actions in WU's
      name to enforce the Intellectual Property rights against third parties or
      to defend the same in WU's name against claims by third parties, subject
      to the terms and conditions set forth in this Agreement.

8.2   WU and SIGA will immediately give to the other written notice of any known
      or suspected infringement of the Patent Rights or unauthorized use of the
      Tangible Research Property or Technical Information by third parties.

8.3   SIGA at its sole expense, if SIGA is the sole licensee (or prorated with
      other licensees if any), will attempt to abate any infringement of the
      Patent Rights or unauthorized use of Tangible Research Property or
      Technical Information by third parties. SIGA has the right to institute
      and conduct actions against third parties for Infringement and unfair
      trade practices through outside counsel of its choice who are reasonably
      acceptable to WU. SIGA will keep WU informed of all proceedings and
      provide copies of all pleadings and other papers related to such actions.
      WU will provide reasonable assistance to SIGA in prosecuting any such
      actions.

8.4   SIGA at its sole expense will defend third party claims of patent or
      intellectual property infringement and injury, death or product liability
      brought against SIGA and/or WU. SIGA will have the right to conduct the
      defense of such actions through outside counsel of its choice who are
      reasonably acceptable to WU. WU will provide all reasonable assistance for
      the defense of such claims and SIGA will keep WU informed of all
      proceedings and provide copies of all pleadings and other papers related
      to such actions.

8.5   If more than one nonexclusive licensee participates in bringing or
      defending an action under this Article, then the costs and fees for such
      action will be shared pro-rata among such licensees.

8.6   Notwithstanding anything stated herein to contrary, SIGA will not be
      permitted to settle or compromise any claim or action in a manner that may
      impose restrictions or obligations on WU or grant rights or concessions to
      Intellectual Property or Licensed Products without WU's prior written
      consent.

8.7   SIGA will be entitled to offset 50% of its attorney's fees end expenses
      incurred in abating third party infringement or unfair trade practices or
      bringing or defending any action against third parties under this Article,
      against the royalties due under Sections 4.4 and 4.5.

9.    Indemnification. SIGA and its Sublicensees will indemnify, defend and hold
      harmless WU, its trustees, faculty, staff, students and agents from and
      against any and all liability, loss, damage, action, claim or expense
      (including attorney's fees and costs at trial and appellate levels) in
      connection with any claim, suit, action, demand or judgment arising out of
      (a) the use of any Intellectual Property in the design, development,
      production, manufacture, sale or offer for sale, use, importation, lease,
      marketing or promotion of any Licensed Product by SIGA or its
      Sublicensees, contractors or agents or (b) injury or death to any person,
      or damage to property caused or allegedly caused by or relating in any way
      to any person's use of any Licensed Products, or (c) any third party claim
      that any use or licensing of the Intellectual Property under this
      Agreement violates or infringes that party's intellectual property rights.
      In legal actions undertaken or defended by SIGA pursuant to this
      indemnification provision, SIGA may select counsel of its own choice who
      are reasonably acceptable to WU.

10.   Insurance.

10.1  SIGA and its Sublicensees will at all times comply, through insurance or
      self-insurance, with all statutory workers' compensation and employers'
      liability requirements covering all employees with respect to activities
      undertaken in performance of this Agreement. This requirement may be met
      by insurance or self-insurance coverage provided to SIGA by a Sublicensee.

10.2  In addition to the foregoing, SIGA and any Sublicensees as appropriate,
      will at appropriate times obtain and maintain occurrence-based Broad Form
      Comprehensive General Liability (BFCGL) insurance with a reputable and
      financially secure insurance carrier(s) having at least an "A" rating and
      an A.M. Best Class Size of at least X. Deviations from the rating or class
      size must be approved in advance by WU. The BFCGL insurance will include,
      among all other coverages standing in
<PAGE>

      such BFCGL policies, coverage for product liability and contractual
      liability.

10.3  The Insurance will provide to SIGA or each Sublicensee minimum annual
      limits of $2 million in liability insurance for the WU Licensed Products,
      and list WU as an additional insured.

10.4  All policies will be purchased and kept in force during the term of the
      Agreement.

10.5  SIGA or any Sublicensee as appropriate, will provide WU with a certificate
      of insurance and will provide a complete copy of the insurance policy to
      WU as soon as one becomes available and notices of subsequent renewals.
      The certificates must provide that SIGA's carrier will notify WU in
      writing at least thirty days prior to cancellation or material change in
      coverage.

10.6  WU may periodically evaluate the adequacy of the minimum coverages of
      insurance specified in this Article. WU reserves the right to require SIGA
      to adjust the insurance coverages. The specified minimum coverages do not
      constitute a limitation on SIGA's or its Sublicensees' obligation to
      indemnify WU under this Agreement.

11.   Termination.

11.1  SIGA may terminate this Agreement with or without cause on ninety days
      written notice to WU. The license rights granted hereunder terminate at
      the end of the ninety day period.

11.2  WU may terminate on thirty days written notice to SIGA upon breach by SIGA
      of the Agreement. The termination becomes effective at the end of the
      thirty day period unless SIGA has fully cured the breach within the thirty
      days.

11.3  If SIGA enters bankruptcy or receivership, voluntarily or involuntarily,
      all obligations of WU and all rights (but not obligations) of SIGA and
      this Agreement terminate immediately without the need for either WU or
      SIGA to take any action.

11.4  Upon termination of this Agreement for any reason, SIGA must return to WU
      all Confidential Information (as defined in Article 6) received from WU
      during the Term of this Agreement.

11.5  On termination by either Party for any reason, the license rights granted
      to SIGA under Article 3 terminate when termination of the Agreement is
      effective. SIGA's obligations to pay fees, royalties or other payments
      accruing prior to termination survive termination.

12.   Use of Names. Neither Party may use the name of the other for any
      commercial, advertisement, or promotional purpose without the written
      consent of the other.

13.   Assignment or Pledge of Agreement. Neither this Agreement nor any portion
      of it may be assigned by either Party to anyone else without the written
      consent of the other Party, and such consent will not be unreasonably
      withheld. Notwithstanding this, SIGA may assign the entire Agreement,
      without WU's consent, to an entity that succeeds to substantially all of
      its business or assets by way of merger, sale, acquisition or otherwise,
      provided that the successor agrees in writing to assume all the
      obligations and liabilities of SIGA to WU. The rights granted in this
      Agreement may not be pledged in any way by SIGA or any Sublicensee to
      secure any purchase, lease or loan.

14.   Notice. Any required or permissive notice under this Agreement will be
      sufficient if in writing and delivered personally, by recognized national
      overnight courier, or by registered or certified mail, postage prepaid and
      return receipt requested, to the address below and will be deemed to have
      been given as of the date shown on the receipt if by certified or
      registered mail, or the day following dispatch if by overnight courier.

If to WU:

Washington University
Center of Technology Management
Campus Box 8013
660 South Euclid Avenue
St. Louis MO 63110

If to SIGA:

Joshua D. Schein
SIGA Pharmaceuticals, Inc.
420 Lexington Avenue
Suite 620
New York, NY 10120

15.   General Provisions.

15.1  This Agreement will be governed and interpreted according to the laws of
      Missouri.

15.2  None of the terms of this Agreement can be waived except by mutual written
      consent of the Parties.

15.3  This instrument comprises the entire agreement and understanding of the
      Parties relating to the subject matter of the Agreement.
<PAGE>

15.4  This Agreement cannot be changed, modified or amended except by a written
      instrument subscribed by authorized representatives of the respective
      Parties.

15.5  Neither Party is an agent or contractor of the other as a result of any
      transaction under or related to this Agreement. Neither Party may in any
      way pledge the other Party's credit or incur any obligation on behalf of
      the other Party.

15.6  Each Party is liable to the other only for actual damages for breach of
      this Agreement or any warranty contained herein, and not for any special,
      consequential, incidental, or indirect damages arising out of this
      Agreement, however caused, under any theory of liability.

15.7  The provisions of this Agreement are severable in that if any provision in
      the Agreement is determined to be invalid or unenforceable under any
      controlling body of law, that will not affect the validity or
      enforceability of the remaining provisions of the Agreement.

15.8  If the performance of any obligation under this Agreement is prevented or
      impaired by acts of war, riot, acts or defaults of common carriers, or
      governmental laws or regulations, a Party will be excused from performance
      so long as such cause continues to prevent or impair that Party's
      performance. The Party claiming force majeure excuse must promptly notify
      the other Party of the existence of the cause and must all times use
      diligent efforts to resume and complete performance. This Section 15.8
      will not excuse SIGA's obligation to pay fees, payments and royalties
      under Article 4 of the Agreement

15.9  WU has no responsibility for product design and development, servicing,
      distribution, or marketing, or any decisions made or strategies devised in
      areas related to Licensed Products.

15.l0 Articles 4, 5, 6, 9, 10, and 12 above will survive expiration or
      termination of this Agreement.

15.11 This Agreement will be executed in two original versions, one belonging to
      each Party. The originals are valid counterparts of each other.

Witness: The parties have caused this Agreement to be executed in duplicate by
their duly qualified representatives.

For SIGA                                    For WU:

/s/ Joshua D. Schein                        /s/ Andrew Neighbour
-----------------------------------         -----------------------------------
Signature                                   Signature
Name Joshua D. Schein                       Name Andrew Neighbour, Ph.D.
Title Chief Executive Officer               Title Associate Vice Chancellor
                                                  For Technology Management

2/14/00                                      2/17/00
----------                                   ----------
Date                                         Date

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