Document:

Media Development
                               Services Agreement

                                     Between

                               Open-i Media, Inc.

                                       And

                             SIGA Technologies, Inc.

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                               SERVICE AGREEMENT

      This Agreement is made as of March 9, 2000, ("Effective Date") by and
between SIGA Technologies, Inc., a corporation with its principal place of
business at 420 Lexington Ave., Suite 620, New York, NY 10017 ("SIGA") and
Open-i Media, Inc., a corporation with offices at 73 Franklin Street, New York,
NY 10013 ("Open-i").

                                    RECITALS

      A. SIGA is engaged in the development of internet-based multimedia tools
and products for use by its clients and customers.

      B. Open-i is a multimedia development firm with experience in the design
and production of media appropriate to SIGA's business. SIGA wishes to engage
Open-i to provide such services.

      C. This Agreement shall establish the terms and conditions for services
performed by Open-i for SIGA. These terms govern the general conduct of
contracting including disclosure of information and intellectual property rights
and, where a conflict may occur, supersede the terms of any purchase order
issued for such services.

      NOW, THEREFORE, in consideration of these premises and the mutual
covenants contained herein, the parties agree as follows:

      1. Services. Open-i shall provide the services set forth on the attached
Exhibit A (the "Scope of Work"), or as otherwise agreed upon by the parties.

      2. Fees and Expenses. As compensation for the services provided under this
Agreement, SIGA shall pay to Open-i fees for services rendered ("Fees"), in
accordance with the schedule set forth on the attached Exhibit B. For all Fees
payable in stock, the stock shall be common stock of SIGA Technologies, Inc. and
shall be valued at the closing price on the Effective Date, which is $9.1875 per
share. Open-i shall be entitled to reimbursement for all reasonable ordinary and
necessary expenses directly incurred in connection with the performance of the
consulting services provided hereunder ("Expenses"). Any expense in excess of
Five Hundred Dollars ($500.00) shall be subject to the prior written approval of
SIGA. Travel and living expenses and Consultant's overhead (i.e. office rent and
insurance) are not reimbursable expenses.

      3. Invoices and Payment. Within ten (10) business days following the end
of each calendar month. Open-i shall submit to SIGA an invoice, setting forth
Fees accrued (hours billed, if applicable), and Expenses incurred by Open-i.
during the preceding month, specifying dates, time spent. and a description of
the billable activity, during the preceding month. Invoices shall include
documentary evidence for all Expenses, in form and content reasonably
satisfactory to SIGA. All fees payable by SIGA for a given month shall be paid
within 30 days following the date when each monthly invoice is submitted.

                                       2.
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      4. Term and Termination. This Agreement shall be effective as of the
Effective Date. This agreement may be terminated by SIGA with or without cause,
upon fifteen (15) days written notice of the termination. Open-i shall have the
right to terminate this Agreement in the event of a material breach by the other
party, provided that written notice has been given and SIGA has not cured the
material breach within thirty (30) days of receipt of the notice. SIGA may
terminate this agreement immediately upon written notice, if the material breach
by Open-i constitutes a violation of Section 7, which notice shall specify such
breach. Upon expiration or earlier termination of this Agreement prior to
completion of the services outlined in Exhibit A, Open-i shall deliver to SIGA
copies of all work in progress and other materials developed for SIGA hereunder.
The following provisions shall survive expiration or earlier termination of this
Agreement: Sections 2 and 3 (with respect only to services rendered to SIGA by
Open-i prior to the date of termination), and Sections 5, 6, 7, 8, 9, and 11.

      5. Reporting Requirements and Records. Open-i shall keep the designated
representative of SIGA apprised of all material developments in Consultant's
tasks, and shall regularly provide oral summaries of Consultant's progress. SIGA
may, from time to time, request written summaries, which Open-i shall provide to
SIGA in a timely fashion. Upon the request of SIGA, Open-i shall make available
to SIGA finished or completed draft documents, work in progress, and other data
maintained or developed by Open-i in connection with Open-i's performance under
this Agreement. Open-i agrees to retain such records, documents and data for a
period of not less than one (1) year from termination or expiration of this
Agreement. All materials prepared by' Open-i under this Agreement for the
benefit of SIGA shall become the sole property of SIGA upon delivery, and shall
not be used by Open-i for any other purposes.

      6. Status of Open-i as an Independent Contractor. Open-i shall at all
times be and be deemed to be an independent contractor with SIGA. SIGA is
interested only in the results obtained by Open-i, and Open-i shall have sole
control of the manner and means of performing Open-i's obligations hereunder.
Open-i hereby acknowledges that SIGA will not be required to withhold state and
Federal income taxes, or to make payments for FICA, unemployment insurance or
any other payroll taxes, and that Open-i will report such earnings as corporate
earnings when he files his state and Federal income tax returns. Open-i shall be
obligated to pay federal and state income tax, if any, on any money earned
pursuant to this Agreement. Open-i will not be entitled to workers compensation,
or be covered by any benefits or compensation plans provided for SIGA employees.
Open-i is neither an employee nor an agent of SIGA and shall not, under any
circumstances, have authority to create any contract or obligation, express or
implied, on behalf of, in the name of or binding upon SIGA.

      7. Confidentiality Requirement. It is agreed during Open-i's retention and
thereafter that both SIGA and Open-i shall maintain as confidential any and all
information obtained from SIGA the other, whether oral or stored in any media,
including, but not limited to, technical or non-technical data, formulas,
patterns, compilations, programs, software, models, data models, object models,
class libraries, architectures, devices, methods, techniques, drawings,
processes, financial and customer data, product plans, and templates, or
developed in the course of Open-i's services under this Agreement, which
information is of a confidential and proprietary nature and was not previously
known to to the other or publicly available, prior to disclosure of such
information to the parties by SIGA the other or prior to development of such
information under this Agreement. This obligation shall cease only when such
information becomes publicly available through publication by either party SIGA
or rightful publication by others.

      7.1 Notwithstanding anything else contained in this Agreement to the
contrary, SIGA and Open-i shall be free to use the "Residuals" for any purpose,
including use in development, manufacture, marketing, and maintenance of its own
or third parties' products and services; provided that neither party may avoid
its confidentiality obligations in this Agreement for item of confidential
information merely by having a person commit such item to memory so as to reduce
it to intangible form. "Residuals" shall mean anything in non-tangible form (as
opposed to

                                       3.
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written or documentary form, which includes disk, tape, paper or electronic
form) which may be retained by any party having had rightful access to the
Confidential Information during the term of this Agreement; provided, however,
that it shall not include any trade secret nor any patents, copyrights, or
trademarks of either of the parties or a client of SIGA.

      8. Assignment of Intellectual Property Rights. It is agreed that all
right, title and interest Open-i may have in and to any intellectual property
(conceived either individually or jointly), including any inventions, whether
patentable or not, any mask work rights, trademarks, or copyrights and which
arise out of Open-i's performance under this Agreement, shall be the property of
SIGA, and Open-i shall execute all papers necessary for obtaining or perfecting
any patents, trademarks or copyrights or other similar rights in any such
intellectual property. Where applicable, works of authorship created by Open-i
for SIGA in the performance of this Agreement shall be considered "works made
for hire" as defined under U.S. Copyright Law.

      8.1 Open-i has non-exclusive, non-transferable, irrevocable, perpetual,
royalty-free right and license to reproduce, distribute, perform, display, and
create derivative works any of the materials delivered by Open-i under this
Agreement for Open-i's business, provided that Open-i removes all SIGA materials
therein provided to Open-i under this Agreement.

      9. Information of Contractor or Third Parties. Open-i warrants that work
performed under this Agreement will or have been original to Open-i, and will
not infringe upon any rights of others or contain libelous material. In
performance of its obligations under this Agreement, Open-i shall, to the best
of its knowledge and ability, avoid infringement of any patent, copyright, mask
work right, or trademark, or the disclosure of any trade secret or other
confidential and proprietary of other any third party. Even when permission has
been obtained from the affected third party(ies) Open-i agrees that it shall not
knowingly furnish or use any such patented or copyrighted information or any
such mask work or trademarks in the performance of this Agreement, nor shall
Open-i knowingly use the trade secrets or other confidential and proprietary
information of Open-i or others, without the prior written consent of SIGA.
Open-i shall indemnify SIGA in the event of an infringement action by any third
party against SIGA arising out of Open-i's use of any patents, copyrights, mask
work rights, trademarks, trade secrets, or other confidential and proprietary
information.

      10. Representations of the parties. As a material inducement for both
parties to enter into this Agreement, the parties hereby represent to the other
and agree as follows: (a) each party holds any and all required and necessary
rights and licenses in order for Open-i to undertake the services to be provided
hereunder; (b) Consultant, and all contractors employed by either party to
complete work hereunder, shall be fully capable of performing the obligations
required to complete such work in a professional, safe and workmanlike manner;
(c) each party shall at all times comply with all Federal, State and local laws
and ordinances applicable to its obligations under this Agreement; and (d) each
party shall acquire and maintain in good standing its own insurance, including
unemployment compensation, disability insurance, automobile insurance, and
general liability insurance.

      11. General Provisions.

            (a) Waivers. Any waiver of any right under this Agreement must be in
writing and signed by the waiving party.

            (b) Written Agreement to Govern. This Agreement is the entire
understanding between the parties relating to the subjects it covers and
supersedes all other prior agreements, representations and covenants, oral or
written. Amendments to this Agreement must be in writing and signed by both
parties.

                                       4.
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            (c) Attorneys' Fees. The prevailing party in any arbitration, action
or other proceeding brought to enforce this Agreement shall be entitled to
recover its reasonable attorneys' fees, costs, and expenses in connection with
such action or proceeding from the either party.

            (d) Severability. If any term or provision of this Agreement is
deemed unenforceable for any reason, such provision shall be severed from this
Agreement and shall not affect the remainder of this Agreement.

            (e) Governing Law. This Agreement shall be governed in accordance
with the laws of the State of California.

            (f) Dispute Resolution. Any disputes between the parties which
cannot be resolved among themselves or shall be resolved in the state or federal
courts located in New York, NY. Open-i hereby agrees and submits to the
jurisdiction of these courts for the purpose of this Agreement.

            (g) Further Assurances. In addition to the actions specifically
mentioned in this Agreement, the parties shall each do whatever may be
reasonably necessary to accomplish the transactions contemplated in this
Agreement. Wherever this Agreement requires the consent of the other party,
unless otherwise specified, such consent shall not be unreasonably withheld or
delayed.

            (h) Counterparts. This Agreement may be executed in any number of
counterparts and all such counterparts taken together shall be deemed to
constitute one and the same agreement.

            (i) Recitals and Attachments. The recitals set forth above and the
attached Schedule(s) shall be deemed to be a part of this Agreement as though
such provisions had been set forth in full in this Agreement.

            (j) Notices and Other Communications. Every notice required by this
Agreement shall be delivered either by (i) personal delivery, (ii) overnight
courier requiring the signature of the recipient (e.g. Federal Express), (iii)
postage prepaid return receipt requested certified mail, or (iv) by facsimile
transmission confirmed by delivery of a copy in accordance with the methods
described in (i), (ii) or (iii), above, addressed to the party for whom intended
at the addresses appearing below the recipient's signature, below, or at such
other address as the intended recipient shall have designated by written notice.

                                       5.
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      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the day and date first written above.

SIGA:                         Open-i:

SIGA Technologies, Inc.       Open-i Media, Inc.
a Delaware corporation        A New York corporation

By: /s/ [Illegible]           By: /s/ [Illegible]
    -------------------           ------------------
Its: Chief Executive          Its: President
     Officer

Address:                      Address:

420 Lexington Ave.            73 Franklin Street
Suite 620                     Ground Floor
New York, NY 10017            New York, NY 10013
Attn: Joshua Schein           Attn: James Chong
Fax: (212)697-3130            Fax: (212)343-1065

                                       6.[LETTERHEAD OF ROSS PRODUCTS DIVISION o ABBOTT LABORATORIES]

                                OPTION AGREEMENT

This Agreement, effective as of the date signed by both parties, is between ROSS
PRODUCTS DIVISION of Abbott Laboratories, with principal offices at 625
Cleveland Avenue, Columbus, Ohio 43215 ("Abbott") and SIGA TECHNOLOGIES having
an office at 420 Lexington Ave. Suite 620, New York, New York 10170 (hereinafter
SIGA).

      1.    SIGA has developed new technology for expressing peptides on the
            surface of gram positive bacteria. SIGA plans to administer these
            genetically modified bacteria to individuals as a vehicle for
            delivering peptides.

      2.    Oregon State University has discovered a new group of peptides
            capable of producing an antigenic response to Chlamydia.

      3.    SIGA has licensed this technology from Oregon State University and
            is interested in determining if it can express these chlamydia
            peptides on the surface of a gram positive organism, thereby
            creating a vaccine.

      4.    Abbott is interested in potentially obtaining a chlamydia vaccine
            and is willing to fund SIGA's R&D program, in exchange for being
            offered rights to future products.

By execution and delivery of this Agreement, the parties agree as follows:

                                 1.0 DEFINITIONS

Where used in this Agreement, the following terms shall have the meanings as
described below and the singular shall be deemed to include the plural and vice
versa;

1.1   "Affiliate" shall mean any corporation or other entity that directly, or
      indirectly through one or more intermediaries, controls, is controlled by,
      or is under common control with the designated party, but only for so long
      as such relationship exists. For the purposes of this section, "Control"
      shall mean ownership of at least fifty percent (or such lesser percent as
      may be the maximum that may be owned by foreign interests pursuant to the
      laws of the country of incorporation) of the shares of stock entitled to
      vote for directors in the case of a corporation and at least fifty percent
      (or such lesser percent as may be the maximum that may be owned by foreign
      interests pursuant to the laws of the country of

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      domicile) of the interests in profits in the case of a business entity
      other than a corporation.

1.2   Agreement means this Agreement, including all Exhibits attached hereto.

1.3   Compound means proteins, or fragments thereof, encoded by the Inc. or Tro
      genes of Chlamydia spp., as well as any other substance developed by,
      acquired by or licensed to SIGA that is capable of producing a protective
      response against the etiologic agent of a sexually transmitted diseases in
      mammals.

1.4   Expression Vector means a recombinant gram positive bacteria that
      expresses, is capable of expressing, or contains Compound.

1.5   FDA means the United States Food and Drug Administration or any successor
      entity thereto.

1.6   Research Project refers to a study in which SIGA and Abbott will determine
      if: 1) the Inc A, B and/or C peptides can be expressed on the surface of a
      gram positive bacteria, and 2) if the transformed bacteria will confer
      immunity against infection by chlamydia, in test animals. The specific
      milestones to be achieved in the Research Project, the time for their
      completion, and the manner by which they should be evaluated and
      documented have been mutually agreed upon by the research personnel of
      SIGA and Abbott and are outlined in Exhibit B.

1.7   Final ReDort means the report provided to Abbott by SIGA, providing all
      requested data, observations, Know-How, technical information, samples,
      results, etc., at the conclusion of the Research Project, as outlined in
      Exhibit B.

1.8   Confidential Information means any information including, but not limited
      to, ideas, proposals, plans, Know-How, reports, drawings, designs, data,
      discoveries, inventions, Improvements, suggestions, specifications,
      samples, components and materials relating to the Product, Expression
      Vector or Compound and all information relating to the manufacture,
      formulation, analysis, stability, pharmacology, toxicology, pathology,
      clinical data, results of clinical efficacy studies, clinical effects and
      indications for use of the Product, Expression Vector, or Compound which a
      party discloses to the other party, except for any information which:

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      (i)   is known to the receiving party at the time of disclosure;

      (ii)  is disclosed to the receiving party, by a third party, who has a
            right to make such disclosure;

      (iii) is in the public domain as a result of acts by a third person
            obtaining such information as a matter of right; or information
            which is independently developed by or for the receiving party.

1.9   Effective Date means the date on which the Agreement has been signed by
      both parties.

1.10  Exclusive License means a license whereby Abbott's rights shall be sole
      and exclusive and shall operate to exclude all others, including SIGA.

1.11  Improvements means any and all new developments relating to the Compound,
      Expression Vector, Product or Know-How made by SIGA, including improved
      methods of manufacture and production techniques, and shall include, but
      not be limited to, developments intended to enhance the safety and
      efficacy of the Compound, Expression Vector, or Product in the health care
      field.

1.12  Know-How means that proprietary technology developed by SIGA for
      manufacturing, using, or formulating Compound, Expression Vector, or
      Product including, but not limited to, manufacturing data, formulation or
      production technology, methods of synthesis, isolation and purification
      methods and other manufacturing information required to manufacture
      Compound, Expression Vector or Product and that proprietary data developed
      by SIGA related to pharmacology, toxicology, pathology, clinical data,
      results of clinical efficacy studies, clinical effects and indications for
      use of the Product, Expression Vector or Compound.

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<PAGE>

1.13  Patents means: (i) any patent or patent application listed in Exhibit A;
      (ii) any patent or patent application hereafter filed or acquired by SIGA
      and any patent or patent application under which SIGA becomes licensed
      (and has a right to sublicense), during the term of this Agreement and
      within the scope of this Agreement regarding the Compound, Expression
      Vector, Product, their manufacture, use or sale, including methods of use
      and screening or processes that use the Compound; (iii) all patents
      arising from applications identified in (i) or (ii) and any divisions,
      continuations and continuations-in-part defined in (i) or (ii); (iv) any
      extension, renewal or reissue of a patent identified in (i), (ii) or
      (iii); and (v) any counterparts wherever issued of any patents identified
      in (i) through (iv). SIGA shall promptly notify Abbott of any such patent
      or patent application hereafter acquired or filed by SIGA and any patent
      or patent application under which SIGA becomes licensed and with the right
      to sublicense to Abbott, and such patent or patent application shall be
      added to Exhibit A.

1.14  Product means any composition, preparation, admixture, dosage form,
      delivery vehicle, etc., which contains Compound, Expression Vector, or a
      combination of Compound and Expression Vector.

1.15  Proprietary Rights means all of SIGA's property rights (except Patent
      Rights) and all of SIGA's interests of every nature in, to, or covering
      the Compound, Expression Vector, Product or preparations containing the
      Compound and/or Expression Vector, or the manufacture or use of them or
      any of them, to the extent that such property rights and interests are of
      such legal status and nature as to permit the same to be lawfully licensed
      and, without limiting the generality thereof, specifically include
      unpatented inventions, ideas, data, Know-How, technology, trade secrets,
      and Confidential Information.

1.16  Territory means the entire world.

1.17  SIGA Intellectual Property shall mean all inventions, improvements,
      technical information, data, or discoveries, whether patentable or not,
      which are conceived and reduced to practice solely by employees of SIGA in
      carrying out the Research Project. For the purposes of this Agreement,
      SIGA Intellectual Property shall be considered to be an Improvement as
      detailed in section 1.11. SIGA Intellectual Property shall belong to SIGA.

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<PAGE>

1.18  Joint Intellectual Property shall mean all inventions, data, technical
      information, or discoveries, whether patentable or not, which are: 1)
      jointly conceived or jointly reduced to practice by an employee of SIGA
      and an employee of ABBOTT, or 2) conceived of by an employee of SIGA or
      ABBOTT and reduced to practice by an employee of the other party, in
      carrying out the Research Project. For the purposes of this Agreement,
      SIGA's rights in Joint intellectual Property shall be considered
      Improvement as detailed in section 1.11. Joint Intellectual Property shall
      belong jointly to SIGA and Abbott.

1.19  ABBOTT Intellectual Property shall mean all inventions, data, technical
      information or discoveries, whether patentable or not, which are conceived
      and reduced to practice solely by employees of ABBOTT in carrying out the
      Research Project. Abbott Intellectual Property shall belong to Abbott and
      shall not be subject to the terms and conditions of this Agreement.

1.20  Field shall mean sexually transmitted diseases (STD's).

                        2.0 EXCLUSIVE OPTION TO NEGOTIATE

2.1   Grant SIGA hereby grants to Abbott the exclusive option to negotiate an
      Exclusive License, to SIGA's Patents and Proprietary Rights in the Field,
      as more fully set forth in sections 3 and 4, upon the terms and conditions
      set forth in this Agreement.

2.2   Exercise Abbott may exercise its option by written notice to SIGA at any
      time during the Option Period. Unless the option is exercised during the
      Option Period, the parties shall have no further rights or obligations
      under this Agreement, except as provided in section 9 regarding
      Confidential Information.

2.3   Period a.) Option Period for Chlamydia: The option period for Chlamydia
      ("Chlamydia Option Period") shall commence on the Effective Date and
      shall terminate six (6) months after Abbott's acceptance of the Final
      Report (the "Termination Date"), unless extended by the mutual consent of
      the parties. In the event that Abbott exercises its option, then the
      Chlamydia Option Period shall be extended for an additional six (6) months
      after the Termination Date, to allow the parties to negotiate the
      remaining terms of the license agreement (i.e. twelve (12) months after
      the receipt of the Final Report).

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            b.) Option Period for STD's other than Chlamydia: The option period
      for STD's other than Chlamydia ("STD Option Period" and together with the
      Chlamydia Option Period, the "Option Period") shall commence on the
      Effective Date and shall terminate on March 31, 2001, unless extended by
      the mutual consent of the parties. In the event that Abbott exercises its
      option, then the option shall be extended until September 30, 2001 to
      allow the negotiation of the remaining terms of the license agreement. The
      expiration of the broader option for STD's shall have no adverse impact
      upon Abbott's option relating to chlamydia as described in Section 2.3(a)
      above.

2.4   Payments In consideration for this option, Abbott shall pay to SIGA, one
      hundred and twenty thousand dollars ($120,000.00) contingent upon the
      completion of the milestones listed below:

      a)    Forty Thousand Dollars ($40,000.00) upon the execution of this
            Agreement by both parties;

      b)    Forty Thousand Dollars ($40,000.00) upon the completion by SIGA of
            Milestone #1, and

      c)    Forty Thousand Dollars ($40,000.00) upon the completion of Milestone
            #2 by SIGA, and acceptance by Abbott of the Final Report.

2.5   Extension of Option Period With SIGA's consent, Abbott may extend the
      Option Periods described above in Section 2.3(a) and (b) by providing
      SIGA, prior to the Termination Date, additional funding to further its
      research efforts directed to the development of a chlamydia vaccine.
      Abbott's Option Period shall automatically be extended until six (6)
      months after Abbott's acceptance of the Final Report for such additional
      research. If Abbott exercises its option, then as described in Section
      2.3, the Option Period shall be extended an additional six (6) months
      after exercise, to allow the parties to negotiate the remaining terms of
      the license agreement (i.e. twelve (12) months after the acceptance of the
      Final Report).

                              3.0 TERMS OF LICENSE

The specific terms of the license agreement shall be negotiated by the parties
upon Abbott's exercise of its option granted hereunder. However any such license
shall at a minimum contain the following terms:

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<PAGE>

3.1   Scope SIGA shall grant to Abbott an Exclusive License in the Territory to
      make, have made, import, export, use, offer for sale, and sell Compound,
      Expression Vectors, and Product under the Patents and Proprietary Rights
      in the Field, with the right to grant sublicenses to Affiliates and third
      persons. Any such license shall be irrevocable.

3.2   Improvements SIGA shall grant to Abbott a royalty-free, (other than the
      underlying royalty to be negotiated pursuant to this paragraph)
      irrevocable Exclusive License in the Territory to make, have made, import,
      export, use, offer to sell and sell any Improvements, under the Patents
      and Proprietary Rights in the Field, with the right to grant sublicenses
      to Affiliates and Third Parties.

                             4.0 LICENSE NEGOTIATION

4.1   Good Faith In the event that Abbott exercises its option hereunder, each
      party agrees to negotiate in good faith the remaining terms of the license
      agreement.

4.2   Negotiation with Third Party During the Option Period, SIGA shall not
      offer or grant to any person or entity (other than Abbott) any right under
      the Patents and Proprietary Rights in the Field, and shall not discuss or
      negotiate with, or consider or accept any offer from, any person or entity
      (other than Abbott) concerning any rights relating to the Patents or
      Proprietary Rights in the Field.

                              5.0 RESEARCH PROJECT

5.1   SIGA shall use all reasonable efforts to conduct and complete the Research
      Project as outlined in Exhibit B. SIGA warrants that all work shall be
      conducted according to scientifically accepted standards and all
      applicable laws, rules and regulations. SIGA further agrees that all
      applicable NIH guidelines regarding the handling and disposal of genetic
      materials shall be observed.

5.2   SIGA shall use all reasonable efforts to meet the Completion Dates
      specified in Exhibit B for the Research Project.

5.3   The parties shall keep each other advised of the status of the Research
      Project. This shall be done by telephone conferences and/or written
      correspondence between

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<PAGE>

      personnel of Abbott and SIGA at least once monthly, and up to weekly, if
      requested by either party. SIGA shall communicate to Abbott and provide
      copies as requested of all data, information, discoveries, etc. generated
      in the Research Project.

5.4   SIGA shall allow the personnel of Abbott associated with the Research
      Project, the opportunity to inspect the facilities and laboratories where
      the Research Project is being carried out. Abbott shall give an advance
      notice of at least five (5) business days. Abbott shall conduct such
      inspection during normal business hours. SIGA shall make their personnel
      working on the Research Project available for consultations during any
      such inspection, provided that such consultations do not interfere in a
      material manner with the Research Project. SIGA shall allow personnel of
      Abbott to inspect notebooks, reports, and other documentation relating to
      the Research Project.

5.5   SIGA shall not subcontract or delegate any of the work associated with the
      Research Project, to a third party, without the prior written consent of
      Abbott.

5.6   In addition to the updates described above for the chlamydia project, SIGA
      shall keep Abbott apprised of all research and development efforts in
      other STD diseases within the scope of its option. The updates shall be
      carried out in the same manner as described in sections 5.3 and 5.4 above.

                            6.0 TERM AND TERMINATION

6.1   Term Unless otherwise terminated as herein provided, this Agreement shall
      commence on the Effective Date and shall terminate at the conclusion of
      the Option Period or any extension thereof.

6.2   Early Termination

      (i)   Bankruptcy or Material Breach. A party may terminate this Agreement
            by giving to the other party sixty (60) days prior written notice as
            follows:

            (A)   To the extent permitted by law, upon the bankruptcy or the
                  insolvency of the other party; or

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            (B)   Upon the material breach of this Agreement by the other party,
                  if the breach is not cured within sixty (60) days after
                  written notice thereof to the party in default.

6.3   Consequences of Termination

      (i)   Survival of Liability. Termination or expiration of this Agreement
            shall not relieve the parties of any obligation accruing prior
            thereto and shall be without prejudice to the rights and remedies of
            either party with respect to any antecedent breach of any of the
            provisions of this Agreement.

                       7.0 REPRESENTATIONS AND WARRANTIES

SIGA represents and warrants that:

(a)   SIGA has the full right and power to perform the obligations and grant the
      option to the Exclusive License in the Field set forth in this Agreement
      and there are no outstanding agreements, assignments or encumbrances in
      existence in conflict with the provisions of this Agreement;

(b)   to the best of SIGA's knowledge, there are no actions, threatened or
      pending, before any court relating to the Patents and/or Proprietary
      Rights;

(c)   SIGA has not authorized others to practice the Patents and/or Proprietary
      Rights in the Field;

(d)   SIGA owns and possesses all right, title and interest in and to the
      Patents and the Proprietary Rights, or has obtained an exclusive license
      to the Patents and the Proprietary Rights (with the right to grant
      sublicenses) and, to the best of SIGA's knowledge, no third person has
      acquired, owns or possesses any right, title or interest in or to the
      Patents and/or Proprietary Rights that is in conflict with the rights
      granted to Abbott herein;

(e)   SIGA has no agreement with any third person which:

      (i) gives any rights to such third person; or

      (ii) imposes obligations upon SIGA or gives any rights to SIGA which, in
      either case, would materially adversely affect the rights of Abbott or the
      obligations of SIGA under this Agreement; and

                                                                               9
<PAGE>

(f)   All of the inventors named in the patents and patent applications listed
      in Exhibit A have assigned, or are under an obligation to assign, to SIGA,
      or to its licensor, all of their right, title and interest in the
      inventions claimed.

(g)   To the best of SIGA's knowledge, there are no other patents or patent
      applications that SIGA is the owner or licensee of, or has an interest in,
      that would dominate Abbott's commercialization of the Compound, Expression
      Vector, or Product.

                               8.0 PATENT MATTERS

8.1   Unless otherwise agreed to by the parties, during the Option Period and
      any extension thereof, SIGA shall diligently prosecute all Patents. SIGA
      shall consult with Abbott regarding the prosecution of the Patents. This
      shall include: 1) providing Abbott with a copy of any communication
      received from the United States Patent and Trademark Office, or any
      foreign equivalent, regarding one of the Patents, 2) providing Abbott with
      a copy of any response SIGA is planning to file in response to such
      communication, and 3) providing Abbott an opportunity to review and
      comment upon such proposed response, SIGA shall be responsible for all the
      costs associated with filing, prosecuting and maintaining licensed
      patents.

8.2   At the conclusion of the Research Project, counsel for the respective
      parties shall confer and determine how to protect the SIGA Intellectual
      Property and Joint Intellectual property. If the parties decide that
      patent filings should be made, then each party agrees to make available to
      the other all information in its possession required to complete the
      patent filing and prosecution. Each party shall cooperate with the other
      and execute those documents required to complete the patent filing and
      prosecution thereof. SIGA shall be responsible for preparing and filing
      all such patent applications. SIGA shall provide Abbott ample opportunity
      to review and comment on such patent applications prior to their filing.
      The costs and prosecution of such applications shall be handled as
      described in Section 8.1.

                                                                              10
<PAGE>

                               9.0 CONFIDENTIALITY

9.1   Confidentiality Neither party, their respective officers, directors,
      stockholders, consultants, agents and advisors, shall use or disclose any
      Confidential Information received by it pursuant to this Agreement without
      the prior written consent of the other. This obligation will continue for
      a period of five (5) years after expiration or prior termination of this
      Agreement or any extension thereof.

9.2   Disclosure Nothing contained in this Article shall be construed to
      restrict the parties from disclosing Confidential Information or this
      Agreement as required:

      (i)   for regulatory, tax or customs reasons;

      (ii)  for securities' law purposes;

      (iii) for audit purposes;

      (iv)  by Court order or other government order or request, as long as
            reasonable efforts have been made to assure its confidentiality or
            the other party is timely notified to make such efforts; or

      (iv)  from using such Confidential Information as is reasonably necessary
            to perform acts permitted by this Agreement.

                                10.0 NO PUBLICITY

No party shall issue any publicity, news release or other public announcement,
written or oral, whether to the public press, stockholders or otherwise,
relating to this Agreement or performance hereunder, or use the name of the
other in any publicity, news release or other public announcement, except with
the prior written consent of the other party.

                                 11.0 ASSIGNMENT

      This Agreement may not be assigned or transferred by either party. Either
party may assign this Agreement in the event that all, or substantially all, of
the business and assets of such party, are sold or transferred.

                                                                              11
<PAGE>

                           12.0 SUCCESSORS AND ASSIGNS

      This Agreement shall inure to the benefit of and be binding upon the
parties hereto, their successors and permitted assigns.

                          13.0 RELATIONSHIPS OF PARTIES

The relationship of the parties under this Agreement is that of independent
contractors. Nothing contained in this Agreement is intended, or is to be
construed, so as to constitute the parties as partners, joint ventures, or
either party as an agent or employee of the other. Neither party has any express
or implied rights under this Agreement to assume or create any obligation on
behalf of, or in the name of, the other, or to bind the other party to any
contract, agreement, or undertaking with any third party, and no conduct of the
parties shall be deemed to imply such a right.

                                  14.0 EXHIBITS

All exhibits referenced herein are hereby made a part of this Agreement. No
Exhibit may be modified without the mutual consent of both parties, which must
be in writing. (Except that new patents or patent applications may be added to
Exhibit A.)

                                   15.0 WAIVER

No waiver by either party of any default, right, or remedy shall be effective
unless in writing. Nor shall any such waiver operate as a waiver of any other or
of the same default, right, or remedy respectively, on a future occasion.

                              16.0 ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between Abbott and SIGA with
respect to the subject matter hereof and shall not be modified, amended or
terminated except as herein provided, or except by another agreement in writing
executed by the parties hereto.

                                                                              12
<PAGE>

                                 17.0 SEVERABLE

The provisions of this Agreement are severable, and in the event that any
provisions of this Agreement are determined to be invalid or unenforceable under
any controlling body of the law, such invalidity or unenforceability shall not
in any way affect the validity or enforceability of the remaining provisions
hereof.

                                  18.0 NOTICES

Any and all notices provided for hereunder shall be sent to the respective
parties at the following addresses by certified or registered mail, return
receipt requested, or sent by an internationally recognized overnight delivery
service:

       If to ABBOTT:     Senior Counsel
                         Department 108150
                         625 Cleveland Avenue
                         Columbus, Ohio 43215

       If to SIGA:       CEO
                         SIGA TECHNOLOGIES
                         420 Lexington Ave.
                         Suite 620
                         New York, New York 10170

The effective date of such notice shall be the date it is received by the
receiving party.

                               19.0 GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of
the State of Illinois, not including its conflicts of law principals.

                      20.0 Alternative Dispute Resolution.

                                                                              13
<PAGE>

In the event of a dispute between the parties regarding this Agreement the
parties agree to amicably try to settle the dispute. Further, the parties agree
that any dispute that arises in connection with this Agreement shall first be
presented to the respective presidents of the Ross Products Division of Abbott
and of SIGA for resolution. If no resolution is reached, then such dispute shall
be resolved by binding Alternative Dispute Resolution ("ADR") in the manner
described in Exhibit C.

The parties hereto have caused this Agreement to be duly executed by their duly
authorized representatives as of the date first written above.

ACCEPTED:                                  ACCEPTED:

ROSS PRODUCT DIVISION                      SIGA TECHNOLOGIES, INC,

By:/s/ Arthur L. Hecker                    By: /s/ Joshua D. Schein
   Arthur L. Hecker, Ph.D.                     Joshua D. Schein, PH.D.
   Vice President                              CHIEF EXECUTIVE OFFICER
   Research & Development

Date: 3/4/00                               Date: 2/28/00

                                                                              14

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