|Exhibit 10.4                                                                                                                                                                                                         
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|IGI, INC.                                                                                                                                                                                                            
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|INCENTIVE STOCK OPTION GRANT                                                                                                                                                                                         
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|This Incentive Stock Option (the "Option"), granted as of <Grant_Date>, is granted by IGI, Inc., ("IGI") to <First_Name><Last_Name>, (the "Optionee"), an employee of IGI (hereinafter referred to as the "Company").
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| |    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | If the Optionee dies, then his legal representative or the person or persons to whom his rights under the Option shall pass by will or by the applicable laws of descent and distribution shall be entitled, within twelve months after the date of his death, to exercise the Option to the extent that the Optionee would have been entitled to exercise the Option on the date of his death, provided that the termination date of this Option Grant shall not have occurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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| |    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | The Optionee shall hold the Option shares for investment and not with a view to, or for resale in connection with, any public distribution of such shares, and if requested, shall deliver to the Company appropriate certificates to that effect. This restriction shall terminate upon the registration of such shares under federal and state securities laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
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| |    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | In the event that the Company, upon the advise of counsel, deems it necessary to list upon official notice of issuance any shares to be issued pursuant to the Plan on a national securities exchange or to register under the Securities Act of 1933 or other applicable federal or state statute any shares to be issued pursuant to the Plan, or to qualify any such shares for exemption from registration requirements of the Securities Act of 1933 under the Rules and Regulations of the Securities and Exchange Commission or for similar exemption under state law, then the Company shall notify the Optionee to that effect and no Option Shares shall be issued until such registration, listing or exemption has been obtained. The Company shall make prompt application for any such registration, listing or exemption pursuant to federal or state law or rules of such securities exchange which it deems necessary and shall make reasonable efforts to cause such registration, listing or exemption to become and remain effective.
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| | 4. | Option Non-Transferable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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| |    | The Option may not be transferred by the Optionee or by operation of law other than by will or by the laws of descent and distribution. It may be exercised during the lifetime of the Optionee only by him.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
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| | 5. | Right to Terminate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| |    | Nothing contained in the Option Grant shall restrict the right of the Company to terminate the employment of the Optionee at any time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
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| | 6. | Dissolution or Reorganization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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| |    | Prior to dissolution, liquidation, merger, consolidation, or reorganization of the Company, (the "Event"), the Board may decide to terminate each outstanding option. If the Board so decides, each option shall terminate as of the effective date of the Event, but the Board shall suspend the exercise of all outstanding options a reasonable time prior to the Event, giving each Optionee not less than fourteen days written notice of the date of suspension, prior to which an Optionee may purchase in whole or in part the Option Shares available to him as of the date of receipt of the notice. If the Event is not consummated, the suspension shall be removed and all options shall continued in full force and effect.
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| | 7. | Restrictions on Transfer of Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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| |    | The shares of stock issued on exercise of the Option shall be subject to any restrictions on transfer then in effect pursuant to the Certificate of Incorporation or By-Laws of the Company and to any other restrictions or provisions attached hereto and made a part hereof or set forth in any other contract or agreement with the optionee.                                                                                                                                                                                                                                                                                                                                                                                        
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| | 8. | If the Option granted hereby is an incentive stock option, any disposition by the Optionee of Optioned Shares purchased under the Option within two years from the date of grant or within one year after their transfer to the Optionee will deprive the Optionee of certain tax benefits with respect to the Option which might otherwise be available. Option holders are urged to review the Prospectus for the offering under which the Option is granted for a more detailed discussion of the federal tax consequences of such a disposition under current law. Optionee recognizes that they are responsible for all personal applicable federal and state taxes that may arise from the grant or the exercise thereof.          

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|IGI, Inc.                         
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|<First_Name> <Last_Name>, Optionee

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|IGI, INC.                                                                                                                                                                                                  
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|NON-QUALIFIED STOCK OPTION GRANT                                                                                                                                                                           
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|This Non-Qualified Option, granted as of________________, (the "Option") is granted by IGI, Inc., ("IGI) to_______________, (the "Optionee"), a Director of IGI (hereinafter referred to as the "Company").
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|                     |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | to qualify any such shares for exemption from registration requirements of the Securities Act of 1933 under the Rules and Regulations of the Securities and Exchange Commission or for similar exemption under state law, then the Company shall notify the Optionee to that effect and no Option Shares shall be issued until such registration, listing or exemption has been obtained. The Company shall make prompt application for any such registration, listing or exemption pursuant to federal or state law or rules of such securities exchange which it deems necessary and shall make reasonable efforts to cause such registration, listing or exemption to become and remain effective.
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|                     | 4. | Option Non-Transferable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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|                     |    | The Option may not be transferred by the Optionee or by operation of law other than by will or by the laws of descent and distribution. It may be exercised during the lifetime of the Optionee only by him                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|                     | 5. | Right to Terminate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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|                     |    | Nothing contained in the Option Grant shall restrict the right of shareholder to remove the Optionee as Director or their right to not re-elect the Optionee as a Director.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|                     | 6. | Dissolution or Reorganization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|                     |    | Prior to dissolution, liquidation, merger, consolidation, or reorganization of the Company, (the "Event"), the Board may decide to terminate each outstanding option. If the Board so decides, each option shall terminate as of the effective date of the Event, but the Board shall suspend the exercise of all outstanding options a reasonable time prior to the Event, giving each Optionee not less than fourteen days written note of the date of suspension, prior to which an Optionee may purchase in whole or in part the Option Shares available to him as of the date of receipt of the notice. If the Event is not consummated, the suspension shall be removed and all options shall continue in full force and effect.
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|                     | 7. | Restrictions on Transfer of Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
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|                     |    | The Shares of stock issued on exercise of the Option shall be subject to any restrictions on transfer then in effect pursuant to the Certificate of Incorporation or By-Laws of the Company and to any other restrictions or provisions attached hereto and made a part hereof or set forth in any other contract or agreement with the Optionee.                                                                                                                                                                                                                                                                                                                                                                                     
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|IGI, Inc.           
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|XXXXXXXXXX, Optionee |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Rajiv Mathur
President and CEO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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