Document:

Exhibit 10.71

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
(the “Agreement”), made this 20th day of November 2012 (the “Effective Date”), is entered into by and between
Lexington Technology Group, Inc. (the “Company”) and Jeff Ronaldi (the “Executive”).

 

1.                 
Term of Employment. The Company agrees to employ Executive, and Executive agrees to work for the Company, upon the
terms set forth in this Agreement, for the period commencing on November 9, 2012 (the “Commencement Date”) and ending
on the three-year anniversary of the Commencement Date, unless sooner terminated in accordance with the provisions of Section 4
or extended as hereinafter provided (such period, as it may be extended or terminated, is the Agreement “Term”). Beginning
on the third anniversary of the Commencement Date, and on each anniversary of the Commencement Date thereafter, the Term shall
extend for an additional one year period from the then current expiration date of the Term unless at least 90 days prior to the
anniversary date either Executive or the Company provides written notice to the other party electing not to extend the Term.

 

2.                 
Title; Capacity. The Company will employ Executive, and Executive agrees to work for the Company, as its Chief Executive
Officer to perform the duties and responsibilities inherent in such position and such other duties and responsibilities consistent
with such position (including travel, as required) as the Company’s Board of Directors (the “Board”, and if the
Merger (as defined below) is consummated, “Board” shall mean the Board of Directors of Document Security Systems, Inc.
for all purposes in this Agreement) shall from time to time assign to him. Executive shall report directly to the Board and shall
be subject to the supervision of, and shall have such authority as is delegated to him by, the Board, which authority shall be
sufficient to perform his duties hereunder. Executive shall be a full time employee and shall devote his full business time and
best efforts in the performance of the foregoing, provided (i) that he may accept board memberships or participate in charitable
and similar organizations which are not in conflict with his primary obligations to the Company, further provided that such activities
shall be approved by the Board, which approval shall not be unreasonably withheld; and (ii) he may perform related services as
described in Section 6.4 below.

 

3.                 
Compensation, Equity and Benefits.

 

3.1             
Salary. The Company shall pay Executive an annual base salary of $350,000, less applicable payroll withholdings,
which shall be payable in accordance with the Company’s customary payroll practices (the “Base Salary”). Such
Base Salary shall not be reduced during Executive’s employment unless a proportionate reduction is generally applied to all
senior executives. The Board shall review the Executive’s salary and performance not less often than annually and shall consider
the Executive for appropriate base salary increases, if any, as are applied to other Company executives.

 

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3.2             
Discretionary Bonus. During the Term of this Agreement, and in the Company’s sole discretion, the Executive
shall be eligible to receive an annual bonus (subject to applicable withholdings) at the end of each calendar year based on the
Executive and the Company successfully achieving targeted annual performance objectives established by the Board (the “Annual
Bonus”). The Board, in its sole discretion, shall determine the extent to which the Executive has achieved the performance
objectives upon which the Annual Bonus is based, and the amount of Annual Bonus to be paid to the Executive, if any. The Annual
Bonus is not earned until it is approved in writing by the Board. To receive such Annual Bonus, the Executive must still be employed
with the Company as of December 31 of the year for which the Annual Bonus is payable and not be in breach of this Agreement. The
Annual Bonus shall be payable prior to March 15 of the following calendar year. The Executive shall receive a pro-rata portion
of the Annual Bonus that relates to calendar year 2012 based on the actual Commencement Date. Notwithstanding anything in this
Section 3.4 to the contrary, in the event that the Merger is consummated, the determination as to whether the Company has achieved
the performance objectives will be based on the performance of Document Security Systems, Inc.

 

3.3             
Equity.

 

(a)               
Common Stock Award. On the Effective Date, the Company shall grant Executive 100,000 shares of common stock of the
Company (the “Stock Grant”), pursuant and subject to the terms of a Restricted Stock Agreement between the Executive
and the Company. The Stock Grant shall initially be unvested, and shall vest on the ninetieth day following the grant date.

 

(b)              
Option Award. On the Effective Date or as soon thereafter as administratively practical, the Company shall grant
the Executive a non-statutory option to purchase up to 1,800,000 shares of the Company’s common stock (the “Option”),
pursuant and subject to the terms of a Stock Option Agreement. The exercise price for each share of the Company’s common
stock subject to the Option shall be $1.67, which price is in excess of the fair market value of one share of the Company’s
common stock on the grant date, as determined by the Board of Directors in accordance with Treasury Regulation §1.409A-1(b)(5)(iv).
 One half of the Option shall vest in 12 equal quarterly tranches, beginning February 15, 2013 and on each May 15, August
15, November 15 and February 15 thereafter through November 15, 2015. Vesting of the remaining one half of the Option shall not
commence unless and until the merger of DSSIP, Inc. into Lexington Technology Group, Inc. (the “Merger”) is completed
pursuant to the terms of the Agreement and Plan of Merger among Document Security Systems, Inc., DSSIP, Inc., Lexington Technology
Group, Inc., and Hudson Bay Master Fund Ltd., as representative of the Company Stockholders solely for the purposes of Sections
1.16 and 6.1(e) and Article VIII of the Agreement and Plan of Merger, dated as of September 28, 2012, (the “Merger Agreement”).
Following the completion of the Merger, the remaining one half of the Options shall vest in 12 equal tranches, with a tranche to
vest on the last day of each calendar quarter commencing on the last day of the calendar quarter in which the Merger is completed.
Subject to Section 5.2, Executive must be employed on each vesting date in order for the Option to vest on such date.

 

(c)               
Nothing in this Agreement shall prohibit the Company from awarding additional Option Grants or other equity awards to the
Executive in addition to the equity awards set forth in the Agreement.

 

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3.4             
Fringe Benefits. Executive shall be entitled to participate in all benefit programs that the Company establishes
and makes available to its executive employees, including health care and option plans. Executive shall be entitled to receive
three (3) weeks of paid vacation per year. The Executive shall not be entitled to carry over any accrued, unused vacation days
from year to year. Executive understands that, except when prohibited by applicable law, the Company’s benefit plans and
fringe benefits may be amended by the Company from time to time in its sole discretion.

 

3.5             
Expenses. The Company shall reimburse Executive for reasonable travel, entertainment, mileage, and other business
expenses incurred by Executive in the performance of his duties hereunder in accordance with the Company's general policies, as
amended from time to time. If a business expense reimbursement is not exempt from Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”), any reimbursement in one calendar year shall not affect the amount that may be reimbursed
in any other calendar year, and a reimbursement (or right thereto) may not be exchanged or liquidated for another benefit or payment.
Any business expense reimbursements subject to Section 409A of the Code shall be made no later than the end of the calendar year
following the calendar year in which such business expense is incurred by Executive.

 

4.                 
Termination of Agreement Term. The Term shall terminate upon the occurrence of any of the following:

 

4.1             
Termination for Cause. At the election of the Company, for Cause upon written notice by the Company to Executive.
For the purposes of this Section 4.1, “Cause” for termination shall be deemed to exist upon the occurrence of any of
the following:

 

(a)               
a good faith finding by the Board or a committee thereof that Executive has engaged in dishonesty, gross negligence or misconduct
which, if curable, has not been cured by Executive within thirty (30) days after he shall have received written notice from the
Company stating with reasonable specificity the nature of such conduct;

 

(b)              
a good faith finding by the Board that Executive has engaged in conduct that materially injures the Company, which, if curable,
has not been cured by Executive within thirty (30) days after he shall have received written notice from the Company stating with
reasonable specificity the nature of such conduct;

 

(c)               
Executive’s conviction or plea of nolo contendere to any felony or crime involving moral turpitude, fraud or embezzlement;
or

 

(d)              
a good faith finding by the Board that Executive has committed a material breach of this Agreement, which, if curable, has
not been cured by Executive within thirty (30) days after he shall have received written notice from the Company stating with reasonable
specificity the nature of such breach.

 

4.2             
Termination by the Company without Cause. At the election of the Company without Cause, upon not less than thirty
(30) days’ prior written notice by Company to the Executive.

 

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4.3             
Death or Disability. As of the last day of the month following the death or determination of disability of Executive.
As used in this Agreement, “disability” shall mean Executive (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months; or (ii) solely to the extent necessary to satisfy Section 409A of the
Code, Executive has a "disability" or is "disabled" within the meaning of Section 409A of the Code.

 

4.4             
Voluntary Termination by Executive. At the election of Executive, upon not less than thirty (30) days’ prior
written notice by Executive to the Company.

 

4.5             
Expiration of the Agreement Term. The Executive’s employment will end at the conclusion of the Term, provided
proper notice has been given pursuant to Section 1 of this Agreement.

 

5.                 
Effect of Termination.

 

5.1             
In the event that Executive’s employment is terminated (a) for Cause pursuant to Section 4.1; (b) without Cause pursuant
to Section 4.2, provided such termination occurs on or before the ninetieth day following the Commencement Date; (c) because of
the Executive’s Death or Disability pursuant to Section 4.3; (d) at the election of Executive pursuant to Section 4.4; or
(e) upon expiration of the Term pursuant to Section 4.5, the Company shall have no further obligation under this Agreement
other than to (x) pay to Executive the compensation earned prior to the last day of his actual employment by the Company; and (y)
to reimburse Executive for expenses incurred prior to termination in accordance with Section 3.5.

 

5.2             
In the event that Executive’s employment is terminated pursuant to Section 4.2, provided such termination occurs on
or after the ninety-first day following the Commencement Date and except as provided for below: (a), the Company shall pay Executive
separation pay in an amount equal to six (6) months of Executive’s Base Salary then in effect commencing on the eighth day
after the Release (as defined herein) is effective and irrevocable and continuing on a payroll basis and for a period of six months
thereafter; (b) the Options will continue to vest during the six (6) month period following the termination of employment (c) if
Executive exercises his right under the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”) to continue
participation in the Company’s health insurance plan, the Company shall pay its normal share of the costs for such coverage
for six (6) months; and (d) the Company shall reimburse Executive for expenses incurred prior to termination in accordance
with Section 3.5. If the Company elects the Extended Restrictive Covenant Period (as that term is defined in Section 6.3 below),
then the separation pay and vesting periods described in Sections 5.2(a), (b), and (c) above shall extend from six (6) months to
twelve (12) months. No payments shall be made to Executive under this Section 5.2 unless Executive first signs a release of claims
in a form reasonably satisfactory to the Company (the “Release”), and the Release is effective and irrevocable prior
to the date that is the sixtieth (60th) day following the termination date, and Executive observes his post-employment obligations
as set forth in Section 6 below. The Company shall have no further obligations under this Section except as specified herein. If
the payment of any COBRA or health insurance premiums would otherwise violate the nondiscrimination rules or cause the reimbursement
of claims to be taxable under the Patient Protection and Affordable Care Act of 2010, together with the Health Care and Education
Reconciliation Act of 2010 (collectively, the “Act”) or Section 105(h) of the U.S. Tax Code (the “Code”),
the Company paid premiums shall be treated as taxable payments and be subject to imputed income tax treatment to the extent necessary
to eliminate any discriminatory treatment or taxation under the Act or Section 105(h) of the Code.

 

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5.3             
Section 409A Compliance. The severance benefits provided for in Section 5.2 are intended to constitute an “involuntary
separation pay plan” with respect to termination without Cause pursuant to Treas. Reg. §1.409A-1(b)(9)(iii) or a short-term
deferral under Treas. Reg. §1.409A-1(b)(4) and thus not “nonqualified deferred compensation” subject to Section
409A of the Code. If such severance benefit is deemed to provide benefits that constitute “nonqualified deferred compensation”
with respect to a termination without Cause, then the following interpretations apply to this Agreement: (i) Any termination of
Executive’s employment triggering payment of the severance benefit must constitute a “separation from service”
under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) before distribution of such benefits can commence.
To the extent that the termination of Executive’s employment does not constitute a separation from service under Section
409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h) (as the result of further services that are reasonably anticipated
to be provided by Executive to the Company at the time his employment terminates hereunder), any payment hereunder that constitutes
non-qualified deferred compensation subject to Section 409A of the Code shall be delayed until after the date of a subsequent event
constituting a separation from service under Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. §1.409A-1(h). For purposes
of clarification, this section shall not cause any forfeiture of benefits on Executive’s part, but shall only act as a delay
until such time as a “separation from service” occurs; (ii) If Executive is a “specified employee” (as
that term is used in Section 409A of the Code and regulations and other guidance issued thereunder) on the date his separation
from service becomes effective, any benefits payable hereunder that constitute non-qualified deferred compensation under Section
409A of the Code shall be delayed until the earlier of (A) the business day following the six-month anniversary of the date his
separation from service becomes effective, and (B) the date of his death, but only to the extent necessary to avoid such penalties
under Section 409A of the Code. On the earlier of (A) the business day following the six-month anniversary of the date his separation
from service becomes effective, and (B) his death, the Company shall pay Executive in a lump sum the aggregate value of the non-qualified
deferred compensation that the Company otherwise would have paid him prior to that date pursuant to this Agreement. It is intended
that the severance benefit and each separate payment and installment thereof shall be treated as a separate “payment”
for purposes of Section 409A of the Code. Neither the Company nor Executive shall have the right to accelerate or defer the delivery
of any such payments or benefits except to the extent specifically permitted or required by Section 409A of the Code. If the sixty
(60) day period in which the Executive must Execute the Release begins in one taxable year of the Executive and ends in the later
taxable year, any taxable benefits paid to the Executive under Section 5.2 will be made in the later taxable year.

 

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6.                 
Nondisclosure and Noncompetition.

 

6.1             
Proprietary Information.

 

(a)               
Executive agrees that all information and know-how, whether or not in writing, of a private, secret or confidential nature
concerning the Company’s business or financial affairs (collectively, “Proprietary Information”) is and shall
be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include inventions,
products, processes, methods, techniques, formulas, designs, drawings, slogans, tests, logos, ideas, practices, projects, developments,
plans, research data, financial data, personnel data, computer programs, and customer and supplier data, or other materials or
information relating to the Company’s business and activities and the manner in which the Company does business. Executive
will not disclose any Proprietary Information to others outside the Company except in the performance of his duties or use the
same for any unauthorized purposes without written approval by an officer of the Company, either during or after his employment,
unless and until such Proprietary Information has become public knowledge or generally known within the industry without fault
by Executive, or unless otherwise required by law.

 

(b)              
Executive agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program
listings, or other written, photographic, electronic or other material containing Proprietary Information, whether created by Executive
or others, which shall come into his custody or possession, shall be and are the exclusive property of the Company to be used by
Executive only in the performance of his duties for the Company.

 

(c)               
Executive agrees that his obligation not to disclose or use information, know-how and records of the types set forth in
paragraphs (a) and (b) above, also extends to such types of information, know-how, records and tangible property of subsidiaries
and joint ventures of the Company, customers of the Company or suppliers to the Company or other third parties who may have disclosed
or entrusted the same to the Company or to Executive in the course of the Company’s business.

 

6.2             
Noncompetition and Nonsolicitation.

 

(a)               
During Executive’s employment and for a period of twelve (12) months after the termination of Executive’s employment
with the Company, Executive will not directly or indirectly, absent the Company’s prior written approval, render services
of a business, professional or commercial nature to any other person or entity that competes with the Company in the same geographical
area where the Company does business at the time this covenant is in effect (or where the Company has made, as of the effective
date of termination, active plans to do business), whether such services are for compensation or otherwise, whether alone or in
conjunction with others, as an employee, as a partner, or as a shareholder (other than as the holder of not more than 1% of the
combined voting power of the outstanding stock of a public company), officer or director of any corporation or other business entity,
or as a trustee, fiduciary or in any other similar representative capacity.

 

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(b)              
During Executive’s employment and for a period of twelve (12) months after the termination of Executive’s employment
with the Company, Executive will not, directly or indirectly, recruit, solicit or induce, or attempt to recruit, solicit or induce
any employee or employees of the Company to terminate their employment with, or otherwise cease their relationship with, the Company.

 

(c)               
During Executive’s employment and for a period of twelve (12) months after the termination of Executive’s employment
with the Company, Executive will not, directly or indirectly, solicit, divert or take away, or attempt to solicit, divert or take
away, the business or patronage of any of the clients, customers or accounts of the Company or the prospective clients, customers
or accounts of the Company.

 

6.3             
If the Executive’s employment is terminated pursuant to Section 4.2, then the post-employment periods set forth in
Section 6.2 above shall be six (6) months rather than twelve (12) months, unless the Company, no later than thirty (30) days after
the date of Executive’s termination, elects by written notice to Executive to extend the post-employment obligation period
under this Section 6.3 from six (6) months to twelve (12) months (the “Extended Restrictive Covenant Period”).

 

6.4             
The Company acknowledges that Executive manages, and will continue to manage, several portfolios. Accordingly, the restrictions
set forth in Sections 6.2 and 6.3 above shall not apply with respect to any services Executive provides regarding any portfolio
identified in the Confidential Exhibit A of the Memorandum of Understanding the Company and Executive entered into separately
on November 13th, 2012.

 

6.5             
If any restriction set forth in this Section 6 is found by any court of competent jurisdiction to be unenforceable because
it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be
interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

6.6             
The restrictions contained in this Section 6 are necessary for the protection of the business and goodwill of the Company
and are considered by Executive to be reasonable for such purpose. Executive agrees that any breach of this Section 6 will cause
the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies
which may be available, the Company shall have the right to seek specific performance and injunctive relief.

 

6.7             
Other Agreements. Executive represents that his performance of all the terms of this Agreement as an employee of
the Company does not and will not breach any (i) agreement to keep in confidence proprietary information, knowledge or data
acquired by him in confidence or in trust prior to his employment with the Company or (ii) agreement to refrain from competing,
directly or indirectly, with the business of any previous employer or any other party. Executive represents that all information
Executive provided to the Company regarding Executive’s education, work background, experience and lack of post-employment
restrictions are all true and accurate and the Company is entitled to rely on such representations.

 

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7.                 
Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective
upon (a) the date of receipt, if sent by personal delivery (including delivery by reputable overnight courier), or (b) the date
of receipt or refusal, if deposited in the United States Post Office, by registered or certified mail, postage prepaid and return
receipt requested, or (c) by facsimile transmission at the address of record of Executive or the Company, or at such other place
as may from time to time be designated by either party in writing.

 

8.                 
Entire Agreement. This Agreement, and those documents referenced herein, constitute the entire agreement between
the parties and supersedes all prior agreements and understandings, whether written or oral relating to the subject matter of this
Agreement.

 

9.                 
Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and
Executive.

 

10.             
Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with the laws of the State
of Delaware, applied without giving effect to any conflicts-of-law principles. Any action or proceeding relating to this Agreement
or Executive’s employment shall be venued exclusively in the state or federal courts located in New York City, New York.

 

11.             
Assumption by Successors. Any successor of the Company shall succeed to all of the Company’s duties, obligations,
rights and benefits hereunder. The obligations of Executive are personal and shall not be assigned by him.

 

12.             
No Waiver. No delay or omission by a party in exercising any right under this Agreement shall operate as a waiver
of that or any other right. A waiver or consent given by a party on any one occasion shall be effective only in that instance and
shall not be construed as a bar or waiver of any right on any other occasion.

 

13.             
Severability. In case any provision of this Agreement shall be invalid, illegal or otherwise unenforceable, the validity,
legality and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

 

14.             
Survival. Upon the termination of the Term and any termination of this Agreement, the obligations of the parties
under Sections 5 and 6 shall survive and continue in effect in accordance with their terms.

 

15.             
Jury Waiver. Executive and the Company each waive any right to a jury trial in any action arising out of or relating
to a breach or alleged breach of this Agreement.

 

(Signature Page Follows)

 

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	 	/s/ Jeff Ronaldi
	 	Jeff Ronaldi
	 	 
	 	Date: _____________________________________

  

  

LEXINGTON TECHNOLOGY GROUP, INC.

 

 

By:_____________________________________

 

Its:

 

Date: _____________________________________

 

    	9Exhibit 10.12

 

IEC ELECTRONICS CORP.

 

OPTION AWARD AGREEMENT

PURSUANT TO

2010 OMNIBUS INCENTIVE COMPENSATION PLAN

 

(Incentive Stock Option)

 

OPTION AWARD AGREEMENT,
executed in duplicate as of the ____ day of_______, 20___, between IEC Electronics Corp., a Delaware corporation (the "Company"),
and_________________, an officer [employee] of the Company (the "Optionee").

 

RECITALS:

 

A.           In
accordance with the provisions of the 2010 Omnibus Incentive Compensation Plan of the Company (the "Plan") and pursuant
to a resolution duly adopted by the Compensation Committee of the Board of Directors of the Company on ________________________,
the Company is authorized to execute and deliver this Agreement on the terms and conditions herein set forth.

 

B.           All
capitalized terms in this Agreement shall have the meaning assigned to them in the Plan.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereto agree
as follows:

 

1.          Grant
of Option. Subject to all the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Optionee
as of ____________________ (the "Date of Grant") an Incentive Stock Option (the "Option") to purchase up to
_________ shares of common stock of the Company (such number being subject to adjustment as provided in Section 10), $.01 par value,
on the terms and conditions herein set forth. The Option shall be exercisable from time to time during the option term specified
in Section 3 at the Option Exercise Price specified in Section 2.

 

    	 

    	 

    

 

2.          Option
Exercise Price. The option exercise price per share of common stock covered by this Option shall be $_______.

 

3.          Option
Term. This Option shall have a term of seven (7) years measured from the Date of Grant and shall accordingly expire at 5:00
p.m. (Eastern Time) on ________________(the “Expiration Date”), unless sooner terminated in accordance with Section
7.

 

4.          Exercise.
This Option may be exercised:

 

(a) with respect to all or any
part of ___________% of the shares covered hereby at any time on or after________________________;

 

(b) with respect to all or any
part of ______ % of the shares covered hereby (and with respect to which this option has not yet been exercised) at any time on
or after________________________;

 

(c) with respect to all or any
part of _______________% of the shares covered hereby (and with respect to which this option has not yet been exercised) at any
time on or after________________________; and

 

(d) with respect to all or any
part of all of the shares covered hereby (and with respect to which this option has not yet been exercised) at any time on or after
________________________.

 

5.          Non-Transferability
of Option. This Option shall be exercisable during Optionee’s lifetime only by Optionee and may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by Optionee’s will or by the laws of descent and distribution.
Any attempted assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to the provisions hereof,
and the levy of any execution, attachment, or similar process upon the Option, shall be null and void and without effect.

 

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6.            Manner
of Exercising Option.

 

(a)          In
order to exercise this Option with respect to all or any part of the shares of Stock for which this Option is at the time exercisable,
Optionee (or any other person or persons exercising the Option) must take the following actions:

 

(i)          Execute
and deliver to the Company a Notice of Exercise (“Notice”) (in the form attached to this Agreement) for the shares
of Stock for which the Option is exercised, which Notice may require the Optionee to certify in a manner acceptable to the Company
that Optionee is in compliance with the terms and conditions of the Plan and this Agreement; and

 

(ii)         Pay
the aggregate Option Exercise Price for the purchased shares in one or more of the following forms:

 

(A)         by
cash, wire transfer or check made payable to the Company;

 

(B)         in
shares of Stock held by Optionee (or any other person or persons exercising the Option) for at least six (6) months and valued
at Fair Market Value on the date of exercise; or

 

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(C)         through
a special sale and remittance procedure pursuant to which Optionee shall concurrently provide irrevocable instructions (I) to the
approved brokerage firms to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate Option Exercise Price payable for the purchased shares
plus all applicable federal, state and local income and employment taxes required to be withheld by the Company by reason of such
exercise and (II) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm in order
to complete the sales transaction.

 

Except to the extent
the sale and remittance procedure is utilized in connection with the Option exercise, payment of the Option Exercise Price must
accompany the Notice delivered to the Company in connection with the Option exercise.

 

In the event this Option
is exercised by any person or persons other than the Optionee, the Notice shall be accompanied by appropriate proof of the right
of such person or persons to exercise the Option.

 

(iii)        Make
appropriate arrangements with the Company for the satisfaction of all federal, state and local income and employment tax withholding
requirements applicable to the Option exercise.

 

(b)          As
soon as practical after the date of exercise, the Company shall issue to or on behalf of Optionee (or any other person or persons
exercising this Option) a certificate for the purchased shares of Stock, with the appropriate legends, if any, affixed thereto.

 

(c)          In
no event may this Option be exercised for any fractional shares.

 

7.            Termination
of Employment.

 

If the Optionee has a
Termination of Employment (as defined in the Plan), the following provisions shall apply:

 

(a)          Death.
If the Optionee’s Termination of Employment is on account of death, then unvested Options shall be forfeited, and Options,
to the extent they are vested on the date of Termination of Employment, may be exercised, in whole or in part, by the Optionee’s
Designated Beneficiary (as defined in the Plan) at any time on or before the earlier to occur of (x) the Expiration Date of the
Option and (y) the first anniversary of the date of such Termination of Employment.

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(b)          Disability.
If the Optionee’s Termination of Employment is on account of Disability, unvested Options shall be forfeited, and Options,
to the extent they are vested on the date of Termination of Employment, may be exercised, in whole or in part, by the Optionee
at any time on or before the earlier to occur of (x) the Expiration Date of the Option and (y) the first anniversary of the date
of such Termination of Employment.

 

(c)          Cause.
If the Optionee’s Termination of Employment is on account of cause, all outstanding Options, vested and unvested, shall terminate
and be forfeited on the date of such Termination of Employment.

 

(d)          Other
Reasons. If the Optionee’s Termination of Employment is for any reason other than those enumerated in Sections (a) through
(c), unvested Options shall be forfeited, and Options, to the extent they are vested on the date of Termination of Employment,
may be exercised, in whole or in part, by the Optionee at any time on or before the earlier to occur of (x) the Expiration Date
of the Option and (y) three (3) months after the date of such Termination of Employment.

 

(e)          Death
After Termination of Employment. If (i) the Optionee’s Termination of Employment is for any reason other than death and
(ii) the Optionee dies after such Termination of Employment but before the date the Options must be exercised as set forth in the
preceding subsections, unvested Options shall be forfeited, and any Options, to the extent they are vested on the date of the Optionee’s
death, may be exercised, in whole or in part, by the Optionee’s Designated Beneficiary at any time on or before the earlier
to occur of (x) the Expiration Date of the Option and (y) the first anniversary of the date of death.

 

    	5

    	 

    

 

8.            Detrimental
Activities.

 

(a)          The
Committee may cancel, rescind, suspend, withhold or otherwise limit or restrict this Option at any time if Optionee is not in compliance
with all applicable provisions of this Agreement and the Plan, or if Optionee engages in any “Detrimental Activity”.
For purposes of this Agreement, “Detrimental Activity” includes: (i) the rendering of services for any organization
or engaging directly or indirectly in any business which is or becomes competitive with the Company, or which organization of business,
or the rendering of services to such organization or business, is or becomes otherwise prejudicial to in conflict with the interests
of the Company; (ii) the disclosure to anyone outside the Company, or the use in other than the Company’s business, without
prior written authorization from the Company, of any confidential information or material relating to the business of the Company,
acquired by the Optionee either during or after employment with the Company; (iii) activity that results in termination of Optionee’s
employment for cause; (iv) a violation of any rules, policies, procedures or guidelines of the Company, including, but not limited
to, the Company’s Code of Conduct; (v) any attempt, directly or indirectly, to induce any employee of the Company to be employed
or perform services elsewhere or any attempt, directly or indirectly, to solicit the trade or business of any current or prospective
customer, supplier or partner of the Company or (vi) any other conduct or act determined by the Board to be injurious, detrimental
or prejudicial to any interest of the Company.

 

    	6

    	 

    

 

 

(b)          Upon
exercise of this Option, Optionee, if requested by the Company, shall certify in a manner acceptable to the Company that Optionee
is in compliance with the terms and conditions of the Plan.

 

(c)          In
the event Optionee engages in Detrimental Activity under the provisions of (i)-(vi) of Section 8(a) prior to, or during the six
months after, any exercise of this Option, such exercise may be rescinded within two years thereafter. In the event of any such
rescission, Optionee shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded
exercise, in such manner and on such terms and conditions as may be required, and the Company shall be entitled to set-off against
the amount of any such gain any amount owned to Optionee by the Company.

 

9.          General
Restriction. This Option shall be subject to the requirement that if at any time the Board of Directors in its discretion shall
determine that the listing, registration or qualification of the shares subject to such Option on any securities exchange or under
any state or federal law, or the consent or approval of any government regulatory body, is necessary or desirable as a condition
of, or in connection with, the granting of such Option or the issuance or purchase of shares thereunder, such Option may not be
exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Board of Directors.

 

    	7

    	 

    

 

10.          Option
Adjustments; Change in Control.

 

(a)          In
the event of a stock dividend, stock split or other change in corporate structure or capitalization affecting the common stock
or any other transaction (including, without limitation, an extraordinary cash dividend) which, in the determination of the Compensation
Committee (the "Committee") of the Board of Directors, affects the common stock such that an adjustment is required in
order to preserve the benefits or potential benefits intended to be made available under the Plan, then the Committee, in its sole
discretion, shall equitably adjust any or all of (i) the number and kind of shares of stock subject to this Option, and (ii) the
exercise price with respect to the foregoing, provided that the number of shares subject to this Option shall always be a whole
number; provided, however, each such adjustment shall comply with the rules of Section 424(a) of the Code and in no event shall
any adjustment be made which would render any the options granted hereby to be other than Incentive Stock Options for purposes
of Section 422 of the Code.

 

(b)          In
the event of a Change in Control (as defined in the Plan), the first paragraph of Article X of the Plan shall not apply, and this
Option shall be deemed to be fully vested and exercisable immediately prior thereto, and the Committee in its sole discretion may
(i) provide that, unless this Option is exercised in connection with such event, this Option shall expire upon consummation of
such event, or (ii) terminate this Option upon such terms and conditions as it shall provide, which termination shall require payment
or other consideration which the Committee deems equitable in the circumstances.

 

11.         Amendment
to this Option Award Agreement. The Committee may modify or amend this Option if it determines, in its sole discretion, that
amendment is necessary or advisable in the light of any addition to or change in the Internal Revenue Code or in the regulations
issued thereunder, or any federal or state securities laws or other law or regulation, which change occurs after the date of grant
of this Option and by its terms applies to this Option. No amendment of this Option, however, may, without the consent of the Optionee,
make any changes which would adversely affect the rights of such Optionee.

 

    	8

    	 

    

 

12.         Notices.
Notices hereunder shall be in writing and if to the Company shall be delivered personally to the Secretary of the Company or mailed
to its principal office, 105 Norton Street, P.O. Box 271, Newark, New York 14513, addressed to the attention of the Secretary and,
if to the Optionee, shall be delivered personally or mailed to the Optionee at Optionee’s address as the same appears on
the records of the Company.

 

13.         Stockholder
Rights. This Option does not confer upon the holder thereof any rights as a stockholder of the Company until such person shall
have exercised the Option, paid the Option Exercise Price and become a holder of record of the purchased shares of Stock

 

14.         Interpretations
of this Agreement. All decisions and interpretations made by the Committee with regard to any question arising hereunder or
under the Plan shall be binding and conclusive on all persons having an interest in this Option. The Option granted hereunder,
and the common stock which may be issued upon exercise thereof, are subject to the provisions of the Plan. In the event there
is any conflict between the provisions of this Agreement and those of the Plan, the provisions of this Agreement shall govern.

 

15.         Successors
and Assigns. This Agreement shall bind and inure to the benefit of the parties hereto and the successors and assigns of the
Company and, to the extent provided in Section 7, to the personal representatives, legatees and heirs of the Optionee.

 

IN WITNESS WHEREOF,
the Company has caused this Option Award Agreement to be executed on the day and year first above written.

 

	 	IEC ELECTRONICS CORP.
	 	 	 
	 	By:	 
	 	 	W. Barry Gilbert
	 	Its:	Chief Executive Officer, President and 

Chairman of the Board

 

    	9

    	 

    

 

ACCEPTANCE

 

I, ________________________,
hereby certify that I have read and fully understand the foregoing Option Award Agreement. I acknowledge that I have been apprised
that it is the intent of the Company that Optionees obtain and retain an equity interest in the Company. I hereby execute this
Option Award Agreement to indicate my acceptance of this Option and my intent to comply with the terms thereof.

 

	 	 
	 	Optionee
	 	 
	 	 
	 	Street Address

 

	 	 	 	 
	 	City	State	Zip Code

 

    	10

    	 

    

 

EXHIBIT A

 

_________________, 20__

IEC Electronics Corp.

105 Norton Street

P. O. Box 271

Newark, NY 14513

 

Attention: Secretary

 

Dear Sir:

 

This is to
notify you that I hereby elect to exercise my option rights
to                             shares
of common stock of IEC Electronics Corp. (the "Company") granted under the Option Award Agreement (the
"Agreement"),
dated                                           , 20__, issued to me pursuant to the 2010 Omnibus Incentive Compensation Plan (the
"Plan"). The option exercise price pursuant to such Agreement, as adjusted, is $____________ per share or
$__________ in the aggregate.

 

In payment of the full option exercise price,
I enclose (please complete as appropriate):

 

		(a)	my check payable to IEC Electronics Corp. in the amount of $__________.

 

		(b)	__________ shares of common stock of the Company owned by me for at least six months, free of any
liens or encumbrances and having a fair market value of $_________.

 

		(c)	an authorization letter which gives irrevocable instructions to the Company to deliver the stock
certificates representing the shares for which the option is being exercised directly to ______________ (name and address of broker)
together with a copy of the instructions to _______________ (name of broker) to sell such shares and promptly deliver to the Company
the portion of the proceeds equal to the total purchase price and withholding taxes due, if any.

 

I hereby certify that I am in compliance
with the terms and conditions of the Plan and the Agreement and, in particular, that I have not engaged in any Detrimental Activity
as defined in Section 8(a) of the Agreement. I understand, acknowledge and agree that in the event I fail to comply with the provisions
of (i) – (vi) of Section 8(a) of the Agreement during the period specified in Section 8(c) of the Agreement, the exercise
of this Option may be rescinded by the Company and I may become obligated to pay the Company the amount of any gain realized or
payment received as a result of the rescinded exercise, all as set forth in Section 8(c) of the Agreement.

 

	 	Very truly yours,
	 	 
	 	 
	 	Optionee's Signature

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