LOAN AND SECURITY AGREEMENT
This Loan and Security Agreement is entered into as of November ___, 2006 by and between IGI,
Inc., a Delaware corporation with an address of 105 Lincoln Avenue, Buena, New Jersey 08310
("Borrower") and Pharmachem Laboratories, Inc. with an address of 266 Harrison Avenue, Kearny, New
Jersey 07032 (together with its successors and assigns, "Lender").
For value received, and in consideration of the granting by Lender of financial accommodations to or
for the benefit of Borrower, including without limitation respecting the Obligations (as hereinafter defined),
Borrower represents to and agrees with Lender, as of the date hereof and as of the date of each loan,
credit and/or other financial accommodation, as follows:
1. Revolving Loans . Lender agrees to make revolving loans (the "Revolving Loans") to or for the
account of Borrower, upon Borrower's request therefor, in an aggregate amount of a maximum
of One Million Dollars ($1,000,000.00) (the "Revolving Loan Amount") or such greater
amounts as may from time to time be established by Lender, subject to the terms and conditions
set forth herein. The Revolving Loans shall be evidenced by that certain Revolving Note, of
even date herewith (the "Revolving Note") by Borrower in favor of Lender in the face amount
of the Revolving Loan Amount. This Agreement, the Revolving Note, and any and all
documents, amendments or renewals executed and delivered in connection with any of the
foregoing are collectively hereinafter referred to as the "Loan Documents." Amounts borrowed
and repaid may be reborrowed one or more times.
2. Revolving Loan Record . Lender shall keep a record of all Revolving Loans, and payments
thereon and other appropriate debits and credits as provided by this Agreement.
3. Interest . Interest respecting the Revolving Loans will be charged to Borrower on the principal
amount from time to time outstand