**Form      of First Amendment to Challenge Award**

**Option      Agreement Dated as of September 29, 2006**

**IEC      Electronics Corp.**

**First      Amendment to Option Award Agreement**

**RECITALS:**

|   | A. | In                accordance with the provisions of the 2001 Stock Option and Incentive                Plan                (the “Plan”) and pursuant to resolutions duly adopted by the Board of                Directors of the Company on _________ 2005, the Company and Optionee                executed an Option Agreement, a copy of which is attached hereto                as                Exhibit A, pursuant to which Optionee was granted a Stock Option                (the                “Option”) to purchase up to ___________ shares of common stock of the                Company in accordance with the terms and conditions set forth in                the                Option Agreement. |
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|   | B. | As                of the date of this Amendment, no options have                vested. |
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|   | C. | The                Company and Optionee desire to modify certain provisions of the Option                Agreement in the manner set forth                herein. |
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|  | 1. | Definitions.                Capitalized                terms used and not otherwise defined herein shall have the meanings                ascribed to such terms in the Option                Agreement. |
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|   | 2. | Amendments. |
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|   | A. | Section                4 (b) of the Option Agreement is deleted in its entirety and replaced                with                the following: |
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|  |   | (b)                Notwithstanding the vesting schedule set forth in Section 4 (a),                if the                performance goal set forth in Section 4 (a) (i) is not achieved for                the                fiscal year ending September 30, 2006, the shares provided for in                such                subsection shall be added to the number of shares provided for in                Section                4 (a) (ii), making a total of [33.34% of the Award shares] that will                vest                and be exercisable if the Company’s Net Sales for the fiscal year ending                September 30, 2007 equal or exceed $35 Million. If the Company’s Net Sales                for the fiscal year ending September 30, 2007 equal $30 Million but                are                less than $35 Million, the shares will vest and be exercisable as                follows: |
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|  | (a) | [16.67%                of the Award shares] if the Company’s Net Sales equal $30 Million |
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|  | (b) | ___                shares for each $100 of the Company’s Net Sales above $30 Million but less                than $35 Million. Fractional shares shall be rounded to the nearest                whole                share. |
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|  | (c) | [33.34%                of the Award shares] if the Company’s Net Sales equal or exceed $35                Million. |
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|   | 3. | Except                as otherwise provided herein, the Option Agreement shall be unmodified                and                shall continue in full force and effect in accordance with its                terms. |
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| IEC                Electronics Corp. |
|--------------------------------------|
|                                 |   |
| By:                                  |   |

| Optionee: |   |   |
|-----------|--------|--------|

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