IGI INC
EXHIBIT 10.1
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><b><font size=2>Exhibit 10.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>October 4, 2006</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Univest Management EPSP,</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>c/o Frank Gerardi, Trustee</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>149 West Village Way</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Jupiter, FL 33458</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p  style='margin-top:0pc;margin-right:0pc;margin-bottom:1.0pc; margin-left:0pc'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Re:</font></p> </td>
        <td width="183" nowrap valign=top style='padding:0pc 0pc 1.0pc 0pc; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Secured Promissory Note</font></u></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>Dear Mr. Gerardi:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In connection with Secured Promissory Note, dated December 12, 2005 (the &#147;Note&#148;), as amended by letter agreement dated January 30, 2006, and by letter agreement dated July 21, 2006, in favor of Univest Management EPSP, c/o Frank Gerardi, Trustee (the &#147;Holder&#148;), this letter sets forth the agreement of the parties hereto to amend the maturity date of said Note and to lower the interest rate effective as of October 1, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>By execution hereof, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that the Note is amended by:</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>1.  Replacing the last sentence of the first paragraph thereof (definition of Maturity Date) with:</font></p>


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            <p  style='margin-left:0pc;text-align:justify;text-indent: 0pc'>&nbsp;<i></i></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>As used herein, the "</font></i><u><i><font size=2>Maturity Date</font></i></u><i><font size=2>" means December 31, 2006</font></i><font size=2>; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>2</font><i><font size=2>.  </font></i><font size=2>Reducing</font><i><font size=2> </font></i><font size=2>the Stated Interest Rate (also referred to as the Amended Stated Interest Rate) to 10%, for interest accruing on or after October 1, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.06in; text-indent:0.47in;text-align:justify;'><font size=2>All other provisions of the Note, as amended from time to time, shall remain in full force and effect.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The parties shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other parties hereto may reasonably request in order to carry out the intent an accomplish the purposes of this letter agreement.  This agreement may be signed in counterparts and by facsimile.</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.53in;text-align:justify;'><font size=2>Please signify your agreement with the foregoing by signing a copy of this letter where indicated and returning it to the undersigned.</font></p>


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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>Sincerely,</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font SIZE=2>IGI, INC.</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-top:1.0pt;margin-right:0pc;margin-bottom: 0pc;margin-left:0pc;text-align:justify;text-indent: 0pc'><font size=1>&nbsp;</font></p> </td>
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            <p  style='margin-top:1.0pt;margin-right:0pc;margin-bottom: 0pc;margin-left:0pc;text-align:justify;text-indent: 0pc'><font size=2>By</font></p> </td>
        <td width="286" valign=top style='border-bottom:solid black .5pt; padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>/s/Carlene Lloyd</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="33" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="286" valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>Name: Carlene Lloyd</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="33" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="286" valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>Title:&nbsp;&nbsp;Vice President of Finance</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font SIZE=2>ACCEPTED AND AGREED:</font></p> </td>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="319" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>By:&nbsp;&nbsp;UNIVEST MANAGEMENT EPSP</font></p> </td>
        <td width="319" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="319" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td>
        <td width="319" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>/s/ Frank Geradi</font></p> </td>
        <td width="319" nowrap valign=top style='padding:0pc 0pc 0pc 0pc'>
            <p  style='margin-top:1.0pt;margin-right:0pc;margin-bottom: 0pc;margin-left:0pc;text-align:justify;text-indent: 0pc'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=2>Frank Gerardi, Trustee</font></p> </td>
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            <p  style='margin-bottom:0pc;text-align: justify;text-indent:0pc'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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