EX-99 4 s815700.txt EXHIBIT 13 EXHIBIT 13 MacAndrews & Forbes Holdings Inc. 35 East 62nd Street New York, New York 10021 October 8, 2003 SIGA Technologies, Inc. 420 Lexington Avenue, Suite 601 New York, New York 10170 Attention: Thomas N. Konatich Dear Mr. Konatich: Reference is made to the Securities Purchase Agreement (the "Purchase Agreement"), dated August 13, 2003, by and between SIGA Technologies, Inc. (the "Company") and MacAndrews & Forbes Holdings Inc. ("M & F"), as supplemented by those letter agreements dated August 13, 2003 and October 8, 2003 by which M & F assigned in part its right to purchase Shares and Warrants to certain Permitted Transferees (the "Assignees") as set forth on Schedule A thereto. Capitalized terms used but not defined herein shall have the meanings set forth in the Purchase Agreement. In accordance with Section 3(b) of the Purchase Agreement, M & F and the Assignees hereby deliver this Option Notice with respect to (A) an aggregate of 6,250,000 Tranche B Shares, at the Per Share Purchase Price, and (B) for no additional consideration, Tranche B Warrants to purchase an aggregate of 3,125,000 Warrant Shares. In accordance with Section 4(c) of the Purchase Agreement, a Closing with respect to (x) an aggregate of 1,499,587 Tranche B Shares, at the Per Share Purchase Price, and (y) for no additional consideration, Tranche B Warrants to purchase an aggregate of 749,794 Warrant Shares (together, "Tranche B-1") shall occur on the Tranche B Closing Date and a Closing with respect to (i) an aggregate of 4,750,413 Tranche B Shares, at the Per Share Purchase Price, and (ii) for no additional consideration, Tranche B Warrants to purchase an aggregate of 2,375,206 Warrant Shares (together, "Tranche B-2") shall occur immediately following receipt of the Required Stockholder Approval. The allocation of the Tranche B Shares and Tranche B Warrants among M & F and the Assignees is described in more detail on Schedule A hereto. Subject to the satisfaction of the conditions set forth in Section 8 of the Purchase Agreement, we are prepared to fund the Tranche B-1 Aggregate Purchase Price without the need for the three or five business day periods set forth in Sections 4(a) and (c), respectively, of the Purchase Agreement. * * * * * Sincerely, MACANDREWS & FORBES HOLDINGS INC. By: /s/ Howard Gittis ----------------------------------- Name: Howard Gittis Title: Vice Chairman [SIGNATURE PAGE TO OPTION EXERCISE] MICHAEL C. BOROFSKY /s/ Michael C. Borofsky ------------------------- [SIGNATURE PAGE TO OPTION EXERCISE] MATTHEW A. DRAPKIN /s/ Matthew A. Drapkin ----------------------- [SIGNATURE PAGE TO OPTION EXERCISE] PAUL G. SAVAS /s/ Paul G. Savas ------------------ [SIGNATURE PAGE TO OPTION EXERCISE] BARRY F. SCHWARTZ /s/ Barry F. Schwartz ---------------------- [SIGNATURE PAGE TO OPTION EXERCISE] TODD J. SLOTKIN /s/ Todd J. Slotkin -------------------- [SIGNATURE PAGE TO OPTION EXERCISE] TransTech Pharma, Inc. By: /s/ Adnan Mjalli ----------------------------------- Name: Adnan Mjalli Title: President and Chief Executive Officer [SIGNATURE PAGE TO OPTION EXERCISE]
Schedule A ---------- Tranche B-1 Exercise -------------------- ------------------------------- --------------- ----------------------------------------------- ------------ Aggregate purchase price which Purchaser is Number of to pay for Tranche B Shares at the Per Share Number of Tranche B Purchase Price (Tranche B Warrants to be Tranche B Name of Purchaser Shares issued for no additional consideration) Warrants ------------------------------- --------------- ----------------------------------------------- ------------ M & F 1,396,462 $2,010,905.28 698,232 ------------------------------- --------------- ----------------------------------------------- ------------ Michael C. Borofsky 12,500 $18,000.00 6,250 ------------------------------- --------------- ----------------------------------------------- ------------ Matthew A. Drapkin 12,500 $18,000.00 6,249 ------------------------------- --------------- ----------------------------------------------- ------------ Paul G. Savas 15,625 $22,500.00 7,813 ------------------------------- --------------- ----------------------------------------------- ------------ Barry F. Schwartz 31,250 $45,000.00 15,625 ------------------------------- --------------- ----------------------------------------------- ------------ Todd J. Slotkin 31,250 $45,000.00 15,625 ------------------------------- --------------- ----------------------------------------------- ------------ TOTAL 1,499,587 $2,159,405.28 749,794 ------------------------------- --------------- ----------------------------------------------- ------------
Tranche B-2 Exercise -------------------- ------------------------------- --------------- ---------------------------------------------- ------------- Aggregate purchase price which Purchaser is Number of to pay for Tranche B Shares at the Per Share Number of Tranche B Purchase Price (Tranche B Warrants to be Tranche B Name of Purchaser Shares issued for no additional consideration) Warrants ------------------------------- --------------- ---------------------------------------------- ------------- M & F 1,278,191 $1,840,595.04 639,095 ------------------------------- --------------- ---------------------------------------------- ------------- TransTech Pharma 3,472,222 $4,999,999.68 1,736,111 ------------------------------- --------------- ---------------------------------------------- ------------- TOTAL 4,750,413 $6,840,594.72 2,375,206 ------------------------------- --------------- ---------------------------------------------- -------------