EXHIBIT 13
MacAndrews & Forbes Holdings Inc.
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
October 8, 2003
SIGA Technologies, Inc.
000 Xxxxxxxxx Xxxxxx, Xxxxx 000
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxx X. Xxxxxxxx
Dear Xx. Xxxxxxxx:
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/ Xxxxxx Xxxxxx
-----------------------------------
Name: Xxxxxx Xxxxxx
Title: Vice Chairman
[SIGNATURE PAGE TO OPTION EXERCISE]
XXXXXXX X. XXXXXXXX
/s/ Xxxxxxx X. Xxxxxxxx
-------------------------
[SIGNATURE PAGE TO OPTION EXERCISE]
XXXXXXX X. XXXXXXX
/s/ Xxxxxxx X. Xxxxxxx
-----------------------
[SIGNATURE PAGE TO OPTION EXERCISE]
XXXX X. XXXXX
/s/ Xxxx X. Xxxxx
------------------
[SIGNATURE PAGE TO OPTION EXERCISE]
XXXXX X. XXXXXXXX
/s/ Xxxxx X. Xxxxxxxx
----------------------
[SIGNATURE PAGE TO OPTION EXERCISE]
XXXX X. XXXXXXX
/s/ Xxxx X. Xxxxxxx
--------------------
[SIGNATURE PAGE TO OPTION EXERCISE]
TransTech Pharma, Inc.
By: /s/ Xxxxx Xxxxxx
-----------------------------------
Name: Xxxxx Xxxxxx
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
------------------------------- --------------- ----------------------------------------------- ------------
Xxxxxxx X. Xxxxxxxx 12,500 $18,000.00 6,250
------------------------------- --------------- ----------------------------------------------- ------------
Xxxxxxx X. Xxxxxxx 12,500 $18,000.00 6,249
------------------------------- --------------- ----------------------------------------------- ------------
Xxxx X. Xxxxx 15,625 $22,500.00 7,813
------------------------------- --------------- ----------------------------------------------- ------------
Xxxxx X. Xxxxxxxx 31,250 $45,000.00 15,625
------------------------------- --------------- ----------------------------------------------- ------------
Xxxx X. Xxxxxxx 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
------------------------------- --------------- ---------------------------------------------- -------------
