AMENDED & RESTATED EMPLOYMENT AGREEMENT

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AGREEMENT (the “Agreement”), made in New York, New York as of January   22, 2007, between SIGA Technologies, Inc., a Delaware corporation (the “Company”), and   Dr. Dennis E. Hruby (“Executive”).

WHEREAS, the Company desires to employ Executive as its   Chief Scientific Officer, and Executive desires to accept such employment on the terms and conditions hereinafter set forth;

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and agreements hereinafter set forth, the Company and Executive agree as follows:

1.   Term. Unless earlier terminated in accordance with Section 4 hereof, the term of this Agreement shall be the three-year period commencing as of the date hereof and ending on January 22, 2010   (the “Term”), with each year of the Term beginning on January 23 (each year of the Term, a “Term Year”).

2.   Employment.

(a)   Employment by the Company; Director . Executive agrees to be employed by the Company during the Term upon the terms and subject to the conditions set forth in this Agreement. Executive shall serve as the Chief Scientific Officer of the Company and shall report to the Board of Directors and Chief Executive Officer of the Company.

(b)   Performance of Duties . Throughout his employment with the Company, Executive shall faithfully and diligently perform Executive’s duties in conformity with the directions of the Company and serve the Company to the best of Executive’s ability. Except as permitted pursuant to Section 2(c) below, Executive shall devote his full business time and best efforts to the business and affairs of the Company. In his capacity as the Chief Scientific Officer of the Company, Executive shall have such duties and responsibilities as he may be assigned by the Board of Directors and Chief Executive Officer of the Company not inconsistent with his position as Chief Scientific Officer   of the Company.

(c)   Appointment at Oregon State University . Executive shall be permitted to continue with his part-time appointment as a faculty member of Oregon State University, provided that such duties do not interfere with his duties as Chief Scientific Officer of the Company and subject in all cases to ongoing approval of the Board of Directors of the Company.

3.   Compensation and Benefits .

(a)   Base Salary . The Company agrees to pay to Executive a base salary (“Base Salary”) at the annual rate of $250,000, subject to any cost of living adjustments as

may be approved by the Board of Directors of the Company. Payments of the Base Salary shall be payable in equal installments in accordance with the Company’s standard payroll practices.

(b)   Annual Bonus . The Company may, in its sole discretion, pay to Executive an annual cash bonus of up to fifty percent (50%) of his Base Salary, but in any event will pay an annual cash bonus of no less than twenty five percent (25%) of his Base Salary. The Company may also, in its sole discretion, pay to Executive an additional bonus in an amount to be determined by the Board of Directors in its sole discretion. Such additional bonus, if any, may be payable in cash or options to purchase Common Stock or restricted shares of Common Stock, as determined by the Board of Directors in its sole discretion. Any such cash bonus shall be paid, and any such options or restricted shares shall be issued, no later than March 15 of the year following the year in which the Board of Directors determined such bonus, or, if later, by the date that is 2½ months following the end of the Company’s fiscal year in which the Board of Directors determined such bonus.

(c)   Benefits and Perquisites . Executive shall be entitled to participate in, to the extent Executive is otherwise eligible under the terms thereof, the benefit plans and programs, and receive the benefits and perquisites, generally provided by the Company to senior executives of the Company, including without limitation family medical insurance (subject to applicable employee contributions). Executive shall be entitled to receive vacation days in accordance with Company policy, such days to be accrued in accordance with Company policy.

(d)   Business Expenses . The Company agrees to reimburse Executive for all reasonable and necessary travel, business entertainment and other business expenses incurred by Executive in connection with the performance of his duties under this Agreement. Such reimbursements shall be made by the Company on a timely basis upon submission by Executive of vouchers in accordance with the Company’s standard procedures.

(e)   Indemnification . The Company shall indemnify Executive, to the fullest extent permitted by its certificate of incorporation, for any and all liabilities to which he may be subject as a result of, in connection with or arising out of his employment by the Company hereunder, as well as the costs and expenses (including reasonable attorneys’ fees) of any legal action brought or threatened to be brought against him or the Company as a result of, in connection with or arising out of such employment or board service. Executive shall be entitled to the full protection of any insurance policies which the Company may elect to maintain generally for the benefit of its officers.

(f)   No Other Compensation or Benefits; Payment . The compensation and benefits specified in this Section 3 and in Section 5 of this Agreement shall be in lieu of any and all other compensation and benefits. Payment of all compensation and benefits to Executive specified in this Section 3 and in Section 5 of this Agreement (i) shall be made in accordance with the relevant Company policies in effect from time to time to the extent the same are consistently applied, including normal payroll practices, and (ii) shall be subject to all legally required and customary withholdings.

(g) Cessation of Employment . In the event Executive shall cease to be employed by the Company for any reason, Executive’s compensation and benefits shall cease

4.   Termination of Employment . Executive’s employment hereunder may be terminated prior to the end of the Term under the following circumstances.

(a)   Death . Executive’s employment hereunder shall terminate upon Executive’s death.

(b)   Executive Becoming Totally Disabled . The Company may terminate Executive’s employment hereunder at any time after Executive becomes “Totally Disabled.” For purposes of this Agreement, Executive shall be “Totally Disabled” in the event Executive is unable to perform the duties and responsibilities contemplated under this Agreement for a period of either (A) 120 consecutive days or (B) 6 months in any 12-month period due to physical or mental incapacity or impairment. During any period that Executive fails to perform Executive’s duties hereunder as a result of incapacity due to physical or mental illness (the “Disability Period”), Executive shall continue to receive the compensation and benefits provided by Section 3 of this Agreement until Executive’s employment hereunder is terminated; provided, however, that the amount of base compensation and benefits received by Executive during the Disability Period shall be reduced by the aggregate amounts, if any, payable to Executive under any disability benefit plan or program provided to Executive by the Company.

(c)   Termination by the Company for Cause . The Company may terminate Executive’s employment hereunder for Cause at any time after providing written notice to Executive. For purposes of this Agreement, the term “Cause” shall mean any of the following: (i) Executive’s neglect or failure or refusal to perform his duties under this Agreement (other than as a result of total or partial incapacity due to physical or mental illness); (ii) any act by or omission of Executive constituting gross negligence or willful misconduct in connection with the performance of his duties that could reasonably be expected to materially injure the reputation, business or business relationships of the Company or any of its affiliates; (iii) perpetration of an intentional and knowing fraud against or affecting the Company or any of its affiliates or any customer, client, agent, or employee thereof; (iv) the commission by or indictment of Executive for (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud (“indictment,” for these purposes, meaning a United States-based indictment, probable cause hearing or any other procedure pursuant to which an initial determination of probable or reasonable cause with respect to such offense is made); (v) the breach of a covenant set forth in Section 6; or (vi) any other material breach of this Agreement.

(d)   Termination by the Company Without Cause . The Company may terminate Executive’s employment hereunder at any time for any reason or no reason by giving Executive thirty (30) days prior written notice of the termination. Following any such notice, the Company may reduce or remove any and all of Executive’s duties, positions and titles with the Company.

(e) Termination by Executive for Good Reason . Executive may terminate his employment hereunder for Good Reason at any time after providing written notice to the Company. For purposes of this Agreement, the term “Good Reason” shall mean any of the

following: (i) the Company fails to pay the compensation described in Section 3(a) of this Agreement (in accordance with, and subject to, such provisions); (ii) Executive no longer holds the office of Chief Scientific Officer   or offices of equivalent stature, or his functions and/or duties as Chief Scientific Officer   are materially diminished; or (iii) Executive’s job site is relocated to a location which is more than fifty (50) miles from Corvallis Oregon, unless the parties mutually agree to such relocation.

(f)   Termination Upon a Change in Control . If the Company terminates Executive’s employment hereunder without Cause within 90 days after the occurrence of the Change in Control Executive shall be entitled to the payments provided for by Section 5(d). For purposes of this Agreement, a “Change in Control” shall be conclusively deemed to have occurred if any of the following shall have taken place:

(i)   the consummation of a transaction or a series of related transactions pursuant to which any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”), other than the Executive, his designee(s) or “affiliate(s)” (as defined in Rule 12b-2 under the Exchange Act), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing forty percent (40%) or more of the combined voting power of the Company’s then outstanding securities;

(ii)   stockholders of the Company approve a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than eighty percent (80%) of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or

(iii)   the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of, or the Company sells or disposes of, all or substantially all of the Company’s assets.

(g)   Termination by Executive Without Good Reason . Executive may terminate his employment hereunder at any time for any reason or no reason by giving the Company thirty (30) days prior written notice of the termination. Following any such notice, the Company may reduce or remove any and all of Executive’s duties, positions and titles with the Company, and any such reduction or removal shall not constitute Good Reason.

5.   Compensation Following Termination . In the event that Executive’s employment hereunder is terminated, Executive shall be entitled only to the following compensation and benefits upon such termination:

(b)   Termination Prior to the Expiration of the Term by Reason of Death or Executive Becoming Totally Disabled; Termination Prior to the Expiration of the Term by the Company for Cause; Termination Prior to the Expiration of the Term by Executive Without Good Reason . In the event that Executive’s employment is terminated prior to the expiration of the Term (i) by reason of Executive’s death pursuant to Section 4(a) or Executive becoming Totally Disabled pursuant to Section 4(b), (ii) by the Company for Cause pursuant to Section 4(c) or (iii) by Executive without Good Reason pursuant to Section 4(g), Executive (or his estate, as the case may be) shall be entitled only to the Standard Termination Payments.

(c)   Termination Prior to the Expiration of the Term by the Company Without Cause; Termination Prior to the Expiration of the Term by Executive for Good Reason . In the event that Executive’s employment is terminated prior to the expiration of the Term by the Company without Cause pursuant to Section 4(d) or by Executive for Good Reason pursuant to Section 4(e), Executive shall be entitled only to the following:

(d)   Termination Upon a Change of Control . In the event that the Company terminates Executive’s employment upon a Change in Control other than for Cause pursuant to Section 4(f), Executive shall be entitled only to the following:

(i)   the Standard Termination Payments;

(ii)   the continued payment of the Base Salary (as determined pursuant to Section 3(a)) for two years (such sums to be paid at the times and in the amounts such Base Salary would have been paid had Executive’s employment not terminated); provided, however, that if necessary to comply with Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and applicable administrative guidance and regulations, the payment of such sums shall be made as follows: (A) no payments shall be made for a six-month period following the date of termination, (B) an amount equal to six months of Base Salary shall be paid in a lump sum six months following the date of termination, and (C) during the period beginning six months following the date of termination through the remainder of the twelve-month period, payment of the Base Salary shall be made at the times and in the amounts such Base Salary would have been paid had Executive’s employment not terminated; and

(iii)   the Company shall take all such action as is necessary such that all stock options and other stock-based grants to Executive shall, immediately and irrevocably vest and become exercisable as of the date of termination and shall remain exercisable for a period of not less than two (2) years from the date of termination.

(e)   Effect of Material Breach of Section 6 on Compensa