Document:

AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN SIGA
         PHARMACEUTICALS, INC. AND DENNIS E. HRUBY DATED JANUARY 1, 1998

Paragraph 2 of the above Agreement shall be deleted in its entirety and replaced
with the following:

The Corporation hereby employs Hruby and Hruby hereby accepts employment with
the Corporation for the period beginning on the date of this Agreement and
ending on December 31, 2000 (the "Initial Term"), or upon the earlier
termination of the Term pursuant to Section 7. The foregoing notwithstanding,
Corporation shall have the right to terminate Hruby's employment under this
Agreement upon 90 days written notice and such termination will be treated as
Termination with Cause pursuant to Section 8 of this Agreement. Corporation also
agrees that the Term will not terminate prior to March 31, 2000. The termination
of Hruby's employment under this Agreement shall end the Term but shall not
terminate Hruby's or the Corporation's other agreements in this Agreement,
except as otherwise provided in this Agreement.

AGREED AND ACCEPTED:

SIGA PHARMACEUTICALS, INC.

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

Date: 10/15/99

By:  /s/ Dennis E. Hruby
     -------------------------
     Dennis E. Hruby

Date: 10/18/99AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN SIGA TECHNOLOGIES,
         INC. (FORMERLY SIGA PHARMACEUTICALS, INC.) AND THOMAS KONATICH
                               DATED APRIL 1, 1998

Effective January 19, 2000, the above Employment Agreement shall be amended as
follows:

Section 1. Employment for Term. shall be deleted in its entirety and replaced
with the following:

      The Corporation hereby employs Konatich and Konatich hereby accepts
employment with the Corporation for the period beginning on the date of this
Agreement and ending on April 1, 2002 (the "Initial Term"), or upon the earlier
termination of the Term pursuant to Section 6. The termination of Konatich's
employment under this Agreement shall end the Term but shall not terminate
Konatich's or the Corporation's other agreements in this Agreement, except as
otherwise provided herein.

Section 3. Compensation. (b) Stock Options. shall remain in its entirety and the
following shall be added:

      In addition to the above options to purchase 95,000 shares of the
Corporation's Common Stock, Konatich is hereby granted additional options as
follows: Pursuant to the Corporation's stock option plan and subject to
stockholder approval of the Corporation's Amended 1996 Incentive and
Non-Qualified Stock Option Plan, Konatich is hereby granted options to purchase
100,000 shares at an exercise price of $2.00 per share, the closing bid price of
the Common Stock of the Corporation on January 19, 2000, the date of this
Amendment. The options shall expire on January 19, 2010. These 100,000 options
will vest in eight equal installments on every three month anniversary of the
date of this Amendment, January 19, 2000. All unvested options shall
automatically vest upon the closing of a transaction in which at least 50.1% of
all outstanding shares are acquired by a person or entity in a change of control
transaction. In the event the closing bid price of the Company's common stock is
at least $10.00 per share for twenty consecutive trading days prior to January
19, 2001, the first four installments, or the unvested portion of the balance
thereof, shall immediately vest. Similarly, an additional 25,000 options shall
immediately vest if the closing bid price for such twenty day period is $15.00
per share, and an additional 25,000 options if the closing bid price equals or
exceeds $20.00 per share. The Company will provide a stock option agreement
providing, among other things, that all vested and non-vested stock options will
terminate immediately upon termination for Cause. In the event of termination
for any other reason, all vested options must be exercised within ninety (90)
days of termination and all non-vested options will terminate immediately.

AGREED AND ACCEPTED:

SIGA TECHNOLOGIES, INC.

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

By:  /s/ Thomas Konatich
     -----------------------
     Thomas Konatich--------------------------- NOTICE OF GRANT AWARD ------------------------------
SMALL BUSINESS INNOVATION RESEARCH PROG                   Issue Date: 06/21/1999

Department of Health and Human Services
National Institutes Of Health
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES
--------------------------------------------------------------------------------

Grant Number: 1 R43 AI46043-01
Principal Investigator: HRUBY, DENNIS E MD
Project Title: BETA-LACTAM INHIBITOR OF PILUS BIOGENESIS

TOM KONATICH - CHIEF FINANCIAL 0
SIGA PHARMACEUTICALS, INC
420 LEXINGTON AVENUE, SUITE 620
NEW YORK, NY 10170

Budget Period: 07/01/1999 - 12/31/1999
Project Period: 07/01/1999 - 12/31/1999

Dear Business Official:

The National Institutes of Health hereby awards a grant in the amount of
$109,072 (see "Award Calculation" in Section I) to SIGA PHARMACEUTICALS, INC. in
support of the above referenced project. This award is pursuant to the authority
of 42 USC 241 42 CFR PART 52 15 USC 638 and is subject to attached terms and
conditions.

Acceptance of this award including attached Terms and Conditions is acknowledged
by the grantee when funds are drawn down or otherwise obtained from the grant
payment system.

Award recipients are responsible for appropriate acknowledgment of NIH support
when preparing publications, or issuing statements, press releases, request for
proposals, bid solicitations, and other documents describing projects or
programs funded in whole or in part with NIH support.

If you have any questions about this award, please contact the individual(s)
referenced in the attachments.

Sincerely yours,

/s/ Annette Hanopole

Annette Hanopole
Grants Management Officer
NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

Attachments

<PAGE>

SECTION I - AWARD DATA - 1 R43 AI46043-01

AWARD CALCULATION (U.S. Dollars):

Salaries and Wages                                 $ 42,000
Personnel Costs                                    $ 42,000
Consultant Services                                $ 10,000
Supplies                                           $ 15,000
Travel Costs                                       $  1,500
Other Costs                                        $  5,000
Direct Costs                                       $ 73,500
F&A Costs                                          $ 29,400
APPROVED BUDGET                                    $102,900
Fee                                                $  6,172
TOTAL                                              $109,072

FISCAL INFORMATION:
CFDA Number: 93.856
EIN: 1133864870A1
Document Number: R3AI46043A
IC / CAN / FY1999

AI / 8425710 / 109,072

NIH ADMINISTRATIVE DATA:

PCC: M52 / OC: 41.4A / Processed: HANOPOLEA 990617 0201

SECTION II - PAYMENT/HOTLINE INFORMATION - 1 R43 AI46043-0l

For Payment and HHS Office of Inspector General Hotline Information, see the NIH
Home Page at http://www.nih.gov/grants/policy/awardconditions.htm

SECTION III - TERMS AND CONDITIONS - 1 R43 AI46043-0l

This award is based on the application submitted to, and as approved by, the NIH
on the above-titled project and is subject to the terms and conditions
incorporated either directly or by reference in the following:

a. The grant program legislation and program regulation cited in this Notice of
Grant Award.

b. The restrictions on the expenditure of federal funds in appropriations acts,
to the extent those restrictions are pertinent to the award.

c. 45 CFR Part 74 or 45 CFR Part 92 as applicable.

d. The NIH Grants Policy Statement, including addenda in effect as of the
beginning date of the budget period.

e. This award notice, INCLUDING THE TERMS AND CONDITIONS CITED BELOW.

(see NIH Home Page at http://www.nih.gov/grants/policy/awardconditions.htm for
certain references cited above.)

This grant is included under Expanded Authorities.

This grant is excluded from Streamlined Noncompeting Award Procedures (SNAP).

Treatment of Program Income:
Additional Costs

None of the funds appropriated in this title for the National Institutes of
Health and the

<PAGE>

Alcohol, Drug Abuse, and Mental Health Administration shall be used to pay the
salary of an individual, through a grant or other extramural mechanism, at a
rate in excess of $125,900 per year.

The fee or profit provided as part of this grant award is in addition to
allowable direct and indirect costs. If the total amount of direct and indirect
costs awarded is not spent, a proportionate amount of the fee or profit must be
shown as an unobligated balance on the Financial Status Report.

PAYMENT INFORMATION: The awardee organization will receive information and forms
from the Payment Management System of the Department of Health and Human
Services regarding requests for cash, manners of payment, and associated
reporting requirements. Payment may be made on a cost-reimbursement or advance
basis. Cost reimbursements may be requested monthly, quarterly, or at other
periodic intervals. Advance payments may be requested on a monthly basis only.
The telephone number for the Payment Management System Office is (301) 443-1660.

The total fixed fee for your Phase II project is $6,174 and is included in the
maximum allowable total costs. This fee is incrementally funded proportionately
for each budget period. $6,174 are allotted for payment of fixed fee for the
budget period covered by this Notice of Grant Award. Additional funds for the
remainder of the total fixed fee are intended to be allotted by a future
Notice(s) of Grant Award, and is reflected in the future year total cost
commitment base on this Notice of Grant Award. Unless and until such future
Notice(s) of Grant Award is (are) issued, the Government will not be obligated
to reimburse the grantee organization for more than the funds currently allotted
for payment of the fixed fee. An adjustment of the fee will be made in the event
the grant is terminated or future support is withheld. The fee allotted under
this Notice of Grant Award is to be drawn down from the HHS Payment System in
increments proportionate to the draw down of funds for costs.

Normally, the awardee organization retains the principal worldwide patent rights
to any invention developed with United States government support. Under Title 37
Code of Federal Regulations Part 401, the Government receives a royalty-free
license for its use, reserves the right to require the patent holder to license
others in certain circumstances, and requires that anyone exclusively licensed
to sell the invention in the United States must normally manufacture it
substantially in the United States. To the extent authorized by Title 35 United
States Code Section 205, the Government will not make public any information
disclosing a Government-supported invention for a 4-year period to allow the
awardee organization a reasonable time to file a patent application, nor will
the Government release any information that is part of that application.

When purchasing equipment or products under this SBIR award, the grantee shall
use only American-made items whenever possible.

The above referenced grant is scheduled to expire on December 31, 1999. Unless
an application for competitive renewal is funded, grant closeout documents must
be submitted within 90 days of the expiration of the grant. Grant closeout
documents consist of a Financial Status Report (OMB 269) , Final Invention
Statement (HHS 568) and a Final Progress Report.

The Final Progress Report may be typed on plain white paper and should include,
at a minimum, a summary statement of progress toward the achievement of the
originally stated aims, a list of results (positive and/or negative) considered
significant, and a list of publications resulting from the project as well as
plans for further publications. An original and one copy are required.

Please send the Final Progress Report and Final Invention Statement & a copy of
the Financial Status Report to the following address:

ATTENTION: CLOSEOUT
NIH, NIAID, Division of Extramural Activities
Grants Management Branch
Room 2200, Rockledge Drive, MSC-7614
Bethesda, Maryland 20892-7614

The Financial Status Report should be sent to:

Division of Financial Management, NIH

<PAGE>

9000 Rockville Pike, MSC-2052
Building 31, Room B1B05A
Bethesda, Maryland 20892-2052

Program Official Contact:
Christopher Tseng, Ph.D.
(301) 496-7453

Grants Management Contact:
Annette Hanopole
(301) 402-5937
ahanopole@niaid.nih.gov

Karen McVay, Grants Specialist

SPREADSHEET

GRANT NUMBER: 1 R43 AI46043-0l

P.1.: HRUBY, DENNIS E

INSTITUTION: SIGA PHARMACEUTICALS, INC.

                                                       YEAR 01
                                                       =======
Salaries and Wages                                      42,000
Personnel Costs                                         42,000
Consultant Services                                     10,000
Supplies                                                15,000
Travel Costs                                             1,500
Other Costs                                              5,000
TOTAL DC                                                73,500
TOTAL F&A                                               29,400
TOTAL COST                                             102,900
FEE                                                      6,172

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