Document:

Exhibit 10.1

 

May 25, 2012

 

Mr. Barry Gilbert

Chief Executive Officer

IEC Electronics Corp.

105 Norton St.

P. O. Box 271

Newark, NY 14513-0271

 

Dear Barry:

 

Please reference our letter of December 28, 2011 (the “Agreement”)
related to Insero & Company CPAs, P.C. (the “Firm”) agreement to provide Outsource Accounting Services to IEC Electronics
Corp (“IEC”, or the “Company”).

 

We have mutually agreed that (i) the Firm will continue to make
Vincent A. Leo available to provide CFO services to the Company under the revised title, “Chief Financial Officer”,
and (ii) the first paragraph of the section of the Agreement titled, “Fee arrangements” shall be modified to read:

 

For the services described above, we will charge a fixed fee
of $25,000 per month. In the event other members of our team are engaged in the delivery of Services, we will discuss with you
in advance the impact on our fees.

 

All of the other terms and conditions of the Agreement remain
unchanged and in full force and effect.

 

Please feel free to contact me directly should you have any
questions, and if the above terms are acceptable to you, please execute and return a copy of this letter confirming your agreement
to the same.

 

Very truly yours,

 

/s/ Nancy E. Catarisano

Nancy E. Catarisano, CPA

Partner

Insero & Company CPAs, P.C

 

	 	Accepted and approved for:
	 	 
	 	IEC ELECTRONICS CORP.
	 	 
	 	 
	 	By: 	/s/ W. Barry Gilbert
	 	 	W. Barry Gilbert
Chairman and Chief Executive Officer
	 	Dated:	May 25, 2012Exhibit 10.2

 

IEC Electronics Corp.

Summary of 2012 Management Incentive Plan
(“2012 MIP”)

 

The 2012 MIP is a cash incentive plan which
links awards to performance results and is designed to provide cash incentive awards (“Awards”) to the executive officers
(the “Participants”) of the Company: the Chief Executive Officer (the “CEO”), the President, and the Executive
Vice President of Operations (“EVP”). The Company’s CFO is not eligible for Awards under the 2012 MIP. The 2012
MIP was finalized by the Compensation Committee on May 23, 2012.

 

A precondition for payment of all Awards
is achievement of a threshold minimum level of company-wide Net Income Before Taxes and Incentives (“Plan Threshold”).
For purposes of the MIP, non-operating events such as acquisition escrow clawbacks are excluded from calculation of Net Income.
The Plan Threshold for fiscal 2012 is $9,000,000.

 

If the Plan Threshold is met, each Participant
is eligible to receive an Award, if any, determined on the basis of the degree of achievement of certain specified corporate level
fiscal year performance objectives (“Performance Goals”). For fiscal 2012, Performance Goals based upon the following
measurements were established:

 

(i)Net Income Before Taxes and Incentives (applicable
to all Participants based on company-wide results),

 

(ii)Sales (for the CEO based on company-wide results,
and for the President and EVP, based upon respective divisional results), and

 

(iii)Cash Flow from Operations (applicable only
to the CEO based on company-wide results).

 

The Compensation Committee has assigned
a weighting factor, varying from 25% to 50%, to each Performance Goal for each Participant, with the total of the weighting factors
for each Participant being 100%.

 

In addition to the Plan Threshold, the Compensation
Committee has established:

 

(i)minimum plan entry performance levels for each
Performance Goal for each Participant (“Performance Goal Minimum(s)”), set at a level in excess of prior fiscal year
achievement to assure that stockholders receive the first portion of the benefit of increased value, and

 

(ii)a target goal (the “Target”) for
each Performance Goal for each Participant based on the Company budget.

 

If all Performance Goals are achieved by
each respective Participant at the Target level, Awards will be earned by that Participant equal to the following percentages of
base salary: (i) for the CEO - 60%, (ii) for the President – 55%, and (iii) for the EVP – 55%. If, with respect to
any Participant Performance Goal, less than the applicable Target, but at least the Performance Goal Minimum, is achieved, a payment
less than the Target Award will be paid to the applicable Participant, pro rated between a payment of 10% of base salary applicable
to achievement at exactly all Performance Goal Minimums and such Participant’s potential Target Award. If the Target for
a Participant Performance Goal is surpassed, the Target Award will increase pro rata up to a cap of 200% of the Target level Award.
No Award will be made with respect to a Performance Goal if the applicable Performance Goal Minimum is not achieved.

 

    	 

    	 

    
 

After the end of the fiscal year, the Compensation
Committee will determine the extent to which the Performance Goals have been achieved by each respective Participant and will calculate
the amount of the Award to be paid to each (the “Calculated Award”). However, (i) based on his evaluation of the President’s
or EVP’s performance, the CEO may recommend that the Calculated Award for that Participant be modified by plus or minus up
to 25%, and (ii) the Compensation Committee may recommend that the Calculated Award for the CEO be modified by plus or minus up
to 25%. All modifications to a Calculated Award for any Participant must be approved by the Compensation Committee. Additionally,
any modification to the Calculated Award for the CEO must be approved by the independent members of the Board of Directors. Use
of the modification factor is not expected to be an annual event, but is to be used sparingly, when the actual results achieved,
whether positive or negative, are not appropriately reflected in the Calculated Award.

 

The Compensation Committee reserves the
right in its discretion to modify categories or goals. Among others, the Performance Goals set forth in the 2012 MIP are based
upon the organic growth of the Company and do not reflect the impact of any acquisitions. The Compensation Committee will separately
review the impact of acquisitions, if any.

 

Payment of any Award to a Participant will
be made within fifteen (15) days after receipt by the Company of the audited financial statements for fiscal 2012. In order to
receive an Award, a Participant must be an employee of the Company on the date such Award is to be paid.Exhibit 10.3

 

IEC Electronics Corp.

Summary of 2012 Long-Term Incentive Plan

 

The purpose of the Company’s Long-Term Incentive
Plan (“LTIP”) is to motivate the Company’s executive officers (in 2012 not including the CFO) and certain designated
key employees (collectively, the “Participants”) to enhance the long-term value of the Company by aligning their interests
with those of the stockholders. The LTIP is also designed to help attract and retain talented personnel with outstanding abilities
and skills.

 

The LTIP provides for awards of restricted
stock (“Awards”) to be made under the Company’s 2010 Omnibus Incentive Compensation Plan (“2010 Plan”),
to enable and encourage the Participants to increase their ownership in the Company by rewarding achievement of a high level of
corporate financial performance through providing opportunities to participate in stockholder gains. The LTIP for fiscal 2012 was
approved by the Compensation Committee at its meeting on May 23, 2012.

 

The LTIP measures Company performance over
a one-year fiscal period and the Award is paid out at the end of the fiscal period based on the attainment of annual performance
goals (“Performance Goals”), measured company-wide, pre-established by the Compensation Committee. The Performance Goals
established for fiscal 2012 are based on two metrics which the Compensation Committee believes are key to the Company’s long-term
financial success:

 

(i) Net Income Before Tax and

(ii) Return on Sales.

 

For purposes of the LTIP, non-operating events such as acquisition
escrow clawbacks are excluded from calculation of Net Income. Each Performance Goal is weighted 50%.

 

The Compensation Committee also has established:

 

(i)minimum plan entry performance levels for each
Performance Goal (“Performance Goal Minimum(s)”), set at a level in excess of prior fiscal year achievement to assure
that stockholders receive the first portion of the benefit of increased value, and

 

(ii)a target goal (the “Target”) for
each Performance Goal based on the Company budget.

 

If both Performance Goals are achieved at
the Target level, Awards will be earned by the Participants with a value equal to the following percentages of base salary: (i)
for the CEO – 60%, (ii) for the President – 55%, (iii) for the EVP – 55% and (iv) for other Participants –
15-20%. The Compensation Committee will determine appropriate treatment for any newly hired permanent CFO. If less than the applicable
Target, but at least the Performance Goal Minimum, for any Performance Goal is achieved, the Award will be pro rated, using a calculation
base of 50% of Target Award for achievement at exactly the Performance Goal Minimum level. If the Target for a Performance Goal
is surpassed, the Target Award will increase pro rata up to a cap of 200% of the Target level Award. No Award will be made with
respect to a Performance Goal if the applicable Performance Goal Minimum is not achieved.

 

The equivalent dollar value of each Award,
as calculated based on the applicable percentage of base salary, is the “Calculated Value”. Each Award will be number
of shares of restricted stock equal to the Calculated Award divided by the average closing price of the Company’s common
stock on the NYSE/Amex for the 90 days prior to October 1, 2012.

 

    	 

    	 

    
 

After the end of the fiscal year, the Compensation
Committee will determine the extent to which the Performance Goals have been achieved and approve the amount of the Equity Award
to be paid to each Participant. However, (i) based on his evaluation of a Participant’s performance, the CEO may recommend
that the Calculated Value for that Participant be modified by plus or minus up to 25%, and (ii) the Compensation Committee may
recommend that the Calculated Value for the CEO be modified by plus or minus up to 25%. All modifications to a Calculated Value
for any Participant must be approved by the Compensation Committee. Additionally, any modification to the Calculated Value for
the CEO must be approved by the independent members of the Board of Directors. Use of the modification factor is not expected to
be an annual event, but is to be used sparingly, when the actual results achieved, whether positive or negative, are not appropriately
reflected in the Calculated Award.

 

All Awards shall be evidenced by an Award
Agreement in the manner set forth in 2010 Plan. Each Award will be subject to a five-year period of restriction, during which period
the restricted stock may not be sold or otherwise transferred. As to one half (1/2) of the restricted shares, the restrictions
will lapse and the shares will vest on the date four (4) years after the date the Award is granted. As to the other one half (1/2)
of the shares, the restrictions will lapse and the shares will vest on the date five (5) years after the date the Award is granted.
If a Participant’s employment with the Company is terminated for any reason whatsoever, other than death, disability, retirement
or change in control, before the lapse of the restrictions, the unvested restricted stock will be deemed forfeited by the Participant
and will be returned to or cancelled by the Company. The Award Agreements may contain such other terms and conditions deemed appropriate
by the Compensation Committee. Such provisions need not be uniform among all grants of Awards among all Participants. The Compensation
Committee may, at its discretion, authorize the Company to pay or reimburse a Participant the amount of any income taxes the Participant
incurs with the Award.

 

Awards earned as provided above will be
made within fifteen (15) days after receipt by the Company of the audited financial statements for fiscal 2012. In order to receive
an Equity Award, a Participant must be an employee of the Company on the date such Equity Award is granted. For purposes of the
LTIP, the grant date is the date on which the Compensation Committee approves the Equity Awards for all Participants except the
Chief Executive Officer, for whom the grant date will be the date on which the Board approves the Equity Award.

 

The Compensation Committee reserves the
right in its discretion to modify categories or goals. Among others, the Performance Goals set forth in the 2012 LTIP are based
upon the organic growth of the Company and do not reflect the impact of any acquisitions. The Compensation Committee will separately
review the impact of acquisitions, if any.

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