Document:

Exhibit 10.1

                               FIRST AMENDMENT TO
                                 LOAN AGREEMENT

                  FIRST AMENDMENT, dated as of March 23, 2004 (this
"Amendment"), to the Loan Agreement, dated January 14, 2003, by and between
KELTIC FINANCIAL PARTNERS, LP, a Delaware limited partnership ("Lender"), and
IEC ELECTRONICS CORP. ("Borrower"), a corporation organized and existing
pursuant to the laws of the state of Delaware. The above referenced documents
and all other agreements, instruments, certificates and documents pursuant to or
incident thereto or in connection therewith are herein referred to as the "Loan
Documents".

                              W I T N E S S E T H :
                              - - - - - - - - - - -

                  WHEREAS, Lender and Borrower are parties to that certain Loan
Agreement, dated January 14, 2003 (the "Loan Agreement"); and

                  WHEREAS, Borrower has notified Lender of certain operational
changes within its business; and

                  WHEREAS, Borrower has requested that Lender modify certain
requirements of the Loan Agreement to accommodate such operational changes; and

                  WHEREAS, Lender has agreed to modify certain provisions of the
Loan Agreement, but only subject to the terms and conditions contained herein;

                  NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt, adequacy and sufficiency of which
are hereby acknowledged, the parties to this Amendment hereby agree as follows:

         1.       Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings ascribed to such terms in the Loan Agreement.

         2.       Amendments.

                  A.       Section 1.25 of the Loan Agreement is deleted in its
entirety and replaced with the following:

         "1.25    "Fixed Charge Coverage Ratio" shall mean:

                      (a)  with respect to a fiscal quarter beginning with the
                           fiscal quarter ending March 31, 2004 through the
                           fiscal quarter ending December 31, 2004, the ratio of
                           EBITDA for such fiscal quarter, plus the Carry
                           Forward Amount for such fiscal quarter, over the sum
                           of (i) interest and fees on Indebtedness, (ii)
                           principal on any loans, (iii) principal on any other
                           indebtedness, (iv) taxes, (v) cash dividends, and
                           (vi) distributions paid on subordinated debt or
                           equity, in each case paid of payable during such
                           fiscal quarter, and;

<PAGE>

                      (b)  with respect to a fiscal quarter beginning with the
                           fiscal quarter ending March 31, 2005 and thereafter,
                           the ratio of EBITDA for such fiscal quarter, plus the
                           Carry Forward Amount for such fiscal quarter, over
                           the sum of (i) interest and fees on Indebtedness,
                           (ii) principal on any loans, (iii) principal on any
                           other indebtedness, (iv) capital expenditures, (v)
                           taxes, (vi) cash dividends, and (vii) distributions
                           paid on subordinated debt or equity, in each case
                           paid of payable during such fiscal quarter"

                  B.       Section 9.20 of the Loan Agreement is deleted in its
entirety and replaced with the following:

         "9.20 Capital Expenditures. Make or agree to make Capital Expenditures
         in an amount which exceeds $50,000 for each fiscal year, beginning with
         the fiscal year ending September 30, 2004, provided, however, that
         Borrower may make or agree to make Capital Expenditures in excess of
         such amount without the prior consent of Lender if (i) such expenditure
         does not exceed $15,000 individually, and (ii) aggregate Capital
         Expenditures for such fiscal year does not exceed $150,000."

                  C.       Section 9.21 of the Loan Agreement is deleted in its
entirety and replaced with the following:

         "9.21 EBITDA. Permit Borrower's EBITDA to be less than (i) $400,000 for
         each fiscal quarter beginning with the fiscal quarter ending March 31,
         2004, through and including the fiscal quarter ending December 31,
         2004, and (ii) $450,000 for each fiscal quarter beginning with the
         fiscal quarter ending March 31, 2005 and thereafter, in each case
         calculated for each fiscal quarter on an individual, non-cumulative
         basis."

         3.       Representations and Warranties. To induce Lender to enter into
this Amendment, Borrower hereby represents, warrants and acknowledges that:

                  A.       The execution, delivery and performance by Borrower
of this Amendment and the performance of the Loan Agreement, as amended hereby:
i) are within its powers; ii) have been duly authorized by all necessary
corporate action; and iii) are not in contravention of any provision of its
certificate of formation, articles of incorporation or other organizational
documents.

                  B.       No Defaults or Events of Default have occurred and
are continuing as of the date hereof.

                  C.       This Amendment has been duly executed and delivered
by or on behalf of Borrower.

                  D.       The Loan Agreement, as amended hereby, constitutes a
legal, valid and binding obligation of Borrower enforceable against Borrower in
accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditor's rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

                  E.       All Obligations outstanding under the Loan Agreement
are duly payable in accordance with the terms of the Loan Agreement without any
defense, offset, counterclaim or recoupment whatsoever.

                                       2
<PAGE>

                  F.       The representations and warranties of Borrower
contained in the Loan Agreement and each other Loan Document shall be true and
correct on and as of the date first written above with the same effect as if
such representations and warranties had been made on and as of such date, except
that any such representation and warranty which is expressly made only as of a
specified date need only be true as of such date.

         4.       Conditions Precedent. The obligations of Lender under this
Amendment is subject to and conditioned upon each of the following conditions
precedent:

         (a)  Execution of this Amendment by an authorized officer(s) of
Borrower.

         5.       No Other Consents/Waivers. Except as otherwise provided for
herein, the Loan Agreement shall be unmodified and shall continue in full force
and effect in accordance with its terms, and except as expressly provided for
herein, this Amendment shall not be deemed to be a waiver of, or consent under,
any term or condition of any Loan Document and shall not be deemed to prejudice
any right or rights which Lender may now have or may have in the future under or
in connection with any Loan Document or any of the instruments or agreements
referred to therein, as the same may be amended from time to time.

         6.       Non-Waiver. Lender's agreement to enter into this Amendment is
not and shall not be construed as a waiver of any current or future default
under the Revolving Note, the Loan Agreement or any other Loan Document, nor
shall it preclude Lender from proceeding against Borrower on any such default.
This Amendment is also not a relinquishment of any rights or remedies Lender may
have in connection with the Revolving Note, the Loan Agreement or any other Loan
Document.

         7.       Waiver of Rights. By its execution of this Amendment, Borrower
expressly waives any and all rights to assert a claim, counterclaim or defense
which now exists against Lender arising out of or in any way connected with the
Loan Agreement, the Revolving Note or any other Loan Document or in any other
transaction between Lender and Borrower. The foregoing waiver shall apply to any
action instituted by any of the undersigned and to any action or proceeding
brought against any of the undersigned by Lender.

         8.       Acknowledgement of Debt. By execution of this Amendment,
Borrower acknowledges that there is due and owing as of March 19, 2004 the
principal sum of $366,666.62, which sums are not subject to any defense,
counterclaim or set-off.

         9.       Further Discussions. Borrower acknowledges that discussions
may take place between itself and Lender after the date hereof concerning
additional modifications of the Revolving Note, the Term Loans, the Loan
Agreement and the Loan Documents. Lender in its sole and absolute discretion may
terminate any such discussions at any time and for any reason or no reason and
Lender shall have no liability for failing to engage in or terminating any such
discussions. While the parties hereto may reach preliminary agreement as to any
additional modifications of one or more provisions of the Loan Agreement, the
Revolving Note, the Term Loans and/or the Loan Documents, none of the
undersigned shall be bound by any such agreement on any individual point until
agreement is reached on every issue and the agreement on all such issues has
been reduced to a written agreement signed by Lender and Borrower. Further, the
Loan Agreement may only be amended by a written agreement executed by Borrower
and Lender and no negotiations or other actions undertaken by Lender shall
constitute a waiver of Lender's rights under this agreement, the Loan Agreement,
the Revolving Note, the Term Loans or other Loan Documents except to the extent
specifically set forth in a written agreement complying with the provisions of
this paragraph.

                                       3
<PAGE>

         10.      GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD
TO ITS CONFLICT OF LAW PRINCIPLES.

         11.      WAIVER OF JURY TRIAL. BORROWER AND LENDER ACKNOWLEDGE AND
AGREE THAT ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM,
BROUGHT OR INSTITUTED BY BORROWER OR LENDER ON OR WITH RESPECT TO ANY LOANS, THE
OBLIGATIONS OR THE RELEVANT DOCUMENTS OR THE DEALINGS OF THE PARTIES WITH
RESPECT HERETO OR THERETO SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY AND
EACH PARTY HEREBY WAIVES THE RIGHT TO TRIAL BY JURY.

         12.      Counterparts. This Amendment may be executed by the parties
hereto on any number of separate counterparts and all said counterparts, when
taken together, shall be deemed to constitute one and the same original
instrument.

                           [SIGNATURE PAGE TO FOLLOW]

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of the day and year first written
above.

                                            KELTIC FINANCIAL PARTNERS, LP
                                                 By its General Partner,
                                            Keltic Financial Services LLC

                                            /s/ JOHN P. REILLY
                                            --------------------------------
                                            By:     John P. Reilly
                                            Title:  Managing Partner

                                            IEC ELECTRONICS CORP.

                                            ------------------------------
                                            By:
                                            Title:

                                       4NON-EMPLOYEE DIRECTOR AGREEMENT

     This Non-Employee Director Agreement (the "Agreement") executed this 24th
day of December, 2003, is by and between GK Intelligent Systems, Inc., a
Delaware corporation, located at 2602 Yorktown Place, Houston, Texas 77056
(the "Company"), and Dick Meador (the "Director") is made in consideration of
the mutual promises made herein and set forth as follows:

                            ARTICLE 1.

                        TERM OF AGREEMENT

      1.1   This Agreement will become effective on January 1, 2004, and will
continue in effect for a term of one (1) year, until December 31, 2004, unless
it is terminated as provided in Article 6, below.

                            ARTICLE 2.

               SERVICES TO BE PERFORMED BY DIRECTOR

      2.1   Services.  Director agrees to serve on the Board of Directors of
the Company for the Term of this Agreement.

      2.2   Method of Performing Services.  Director will determine the
method, details, and means of performing the above-described services.
Director may perform the Services under this Agreement at any suitable time
and location of Director's choice, however the Director shall make himself
available to the Company as set forth in Section 4.3.

      2.3   Status of Director.  Director is and shall remain a non-employee
of the Company.  Director and any agents or employees of Director shall not
act as an officer or employee of Company.  Director has no authority to assume
or create any commitment or obligation on behalf of, or to bind, Company in
any respect in an individual capacity.

                            ARTICLE 3.

                           COMPENSATION

      3.1   Share Fee.  As compensation under this Agreement, the Director
will receive at the Director's election and option,  three hundred thousand
(300,000) shares Company's Common Stock, $0.001 par value (the "Shares"), a
non-employee director stock option to purchase three hundred thousand
(300,000) shares, or a Warrant to purchase three hundred thousand (300,000)
shares.   Any option or warrant issued pursuant to this agreement will contain
a provision for the cashless exercise of said option or warrant.  The price of
any Shares issued or purchased pursuant to this Agreement shall be deemed to
be $0.08 per Share, which is one hundred percent (100%) of the fair market
value of the Shares on the date hereof.

      3.2   Payment of Expenses.  Director shall be responsible for his normal
and customary overhead business expenses incurred in performing services under
this Agreement, including without limitation, telephone, facsimile, postage,
photocopying, supplies, rent, and insurance.  Travel expenses and other
extraordinary expenses in relation to the Company shall require the Director
to obtain the prior written approval of Company.  Where Director is required
to travel outside the State of Texas on business, all travel arrangements will
be at business class, and if not available, then based on available first
class travel accommodations.

                            ARTICLE 4.

                     OBLIGATIONS OF DIRECTOR

      4.1   Non-Exclusive Relationship.  Company acknowledges and agrees that
the relationship with Director is non-exclusive and Director may represent,
perform services for, and contract with, as many additional Companys, persons
or companies as Director in Director's sole discretion sees fit.

      4.2   Director's Qualifications.  Director represents and warrants that
Director has the qualifications and skills necessary to perform the services
under this Agreement in a competent and professional manner, and is able to
fulfill the requirements of this Agreement.  Director shall comply with all
applicable federal, state and local laws in the performance of its obligations
hereunder, and all materials used by Director in fulfilling its obligations
under this Agreement shall not infringe upon any third party copyright,
patent, trade secret or other proprietary right.  Director acknowledges and
agrees that failure to perform all the services required under this agreement
constitutes a material breach of the Agreement.

      4.3   Availability of Director.  Director acknowledges and agrees that a
material consideration of this Agreement is that Director be in charge of all
services rendered to Company under this Agreement.  Further, that the
availability of the Director be the equivalent of one (1) regular business day
per month and that the unavailability of such services shall constitute a
material breach of this Agreement.  Should Company not avail itself of
Director's services, from one week to the next, such availability will not be
accumulated without Director's express approval.

      4.4   Indemnity.  Director agrees to indemnify, defend, and hold Company
free and harmless from all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries, and deficiencies, including
interest, penalties, attorneys' fees, and costs, including without limitation
expert witnesses' fees, that Company may incur as a result of a breach by
Director of any representation or agreement contained in this Agreement.

      4.5   Assignment.  Neither this Agreement nor any duties or obligations
under this Agreement may be assigned by Director without the prior written
consent of Company.

                            ARTICLE 5.

                      OBLIGATIONS OF COMPANY

      5.1   Compliance with Requests.  Company agrees to comply with all
reasonable requests of Director necessary to the performance of Director's
duties under this Agreement.

      5.2   Place of Work.  Company agrees to furnish an office for Director
on Company's premises for use by Director from time-to-time when visiting the
New York/Houston areas to facilitate his performance of the above-described
services.

      5.3   Company Provided Information.  Company assumes full responsibility
for the accuracy and completeness of all information provided to Director.

      5.4   Indemnity.  Company agrees to indemnify, defend, and hold Director
free and harmless from all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries, and deficiencies, including
interest, penalties, attorneys' fees, and costs, including without limitation
expert witnesses' fees, that Director may incur as a result of any information
provided to Director by Company under this Agreement.

                            ARTICLE 6.

                     TERMINATION OF AGREEMENT

      6.1   Termination on Notice.  Notwithstanding any other provision of
this Agreement, either party may terminate this Agreement at any time by
giving thirty (30) days written notice to the other party.  Unless otherwise
terminated as provided in this Agreement, this Agreement will continue in
force until the Services provided for in this Agreement have been fully and
completely performed.

      6.2   Termination on Occurrence of Stated Events.  This Agreement will
terminate automatically on the occurrence of any of the following events:

            6.2.1   Unavailability of Director to manage and oversee all
      services rendered to Company by Director under this Agreement;

            6.2.2   Bankruptcy or insolvency of either party;

            6.2.3   Dissolution of the Company; and/or,

            6.2.4   Any assignment of this Agreement by Director without the
      prior written consent of Company.

      6.3   Termination for Default.  If either party defaults in the
performance of this Agreement or materially breaches any of its provisions,
the non-breaching party may terminate this Agreement by giving written
notification to the breaching party.  Termination will take effect immediately
on receipt of notice by the breaching party or five (5) days after mailing of
notice, whichever occurs first.  For the purposes of this paragraph, material
breach of this Agreement includes, but is not limited to, the following:

            6.3.1   Director's failure to perform the services specified in
      this Agreement;

            6.3.2   Director's material breach of any representation or
      agreement contained in Article 4, above; and/or,

            6.3.3   Company's material breach of any representation or
      agreement contained in Article 5, above.

                            ARTICLE 7.

                       COMPANY INFORMATION

      7.1   Nondisclosure/Nonuse of Company Information.  Director agrees that
all information provided by Company to Director under this Agreement shall not
be disclosed or used by Director for any purpose other than Director's
performance under this Agreement.

      7.2   Confidential Information.  Any written, printed, graphic, or
electronically or magnetically recorded information furnished by Company for
Director's use is and shall remain the sole property of Company.  This
proprietary information includes, but is not limited to, investor lists,
marketing information, planning, drawings, specifications, and information
concerning Company's employees, products, services, prices, and operations.
Director will keep this confidential information in the strictest confidence,
and will not disclose it by any means to any person except with Director's
prior written approval, and only to the extent necessary to perform the
services under this Agreement.  This prohibition also applies to Director's
employees, agents, and subcontractors.  On termination of this Agreement or
request by Company, Director will return within two (2) days any confidential
information in Director's possession to Company.

                            ARTICLE 8.

                        GENERAL PROVISIONS

      8.1   Notices.  Any notices to be given by either party to the other
shall be in writing and may be transmitted either by personal delivery or by
mail, registered or certified, postage prepaid with return receipt requested.
Mailed notices shall be addressed to the parties at the addresses appearing in
the introductory paragraph of this Agreement, but each party may change that
address by written notice in accordance with this section.  Notices delivered
personally shall be deemed communicated as of the date of actual receipt.
Mailed notices shall be deemed communicated as of five (5) days after the date
of mailing.

      8.2   Attorneys' Fees and Costs.  If this Agreement gives rise to a
lawsuit or other legal proceeding between any of the parties hereto, the
prevailing party shall be entitled to recover court costs, necessary
disbursements (including expert witnesses' fees) and reasonable attorneys'
fees, in addition to any other relief such party may be entitled.

      8.3   Entire Agreement.  This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties hereto with respect
to the services provided by Director to Company under this Agreement, and
contains all of the covenants and agreements between the parties with respect
to this Agreement in any manner whatsoever.  Each party to this Agreement
acknowledges that no representations, inducements, promises, or agreements,
orally or otherwise, have been made by any party, or anyone acting on behalf
of any party, which are not embodied herein, and that no other agreement,
statement, or promise not contained in this Agreement shall be valid or
binding.

      8.4   Modifications.  Any modification of this Agreement will be
effective only if it is in writing signed by the party to be charged.

      8.5   Effect of Waiver.  The failure of either party to insist on strict
compliance with any of the terms, covenants, or conditions of this Agreement
by the other party shall not be deemed a waiver of that term, covenant, or
condition, nor shall any waiver or relinquishment of any right or power at any
one time or times be deemed a waiver or relinquishment of that right or power
for all or any other times.

      8.6   Partial Invalidity.  If any provision in this Agreement is held by
a court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall nevertheless continue in full force without being
impaired or invalidated in any way.

      8.7   Law Governing Agreement.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas.

      8.8   Jurisdiction/Venue.  Jurisdiction and venue for any dispute
arising out of this Agreement shall be exclusively in the city of Houston,
State of Texas.

      8.9   Construction.  If any construction is to be made of any provision
of this Agreement, it shall not be construed against either party on the
ground such party was the drafter of the Agreement or any particular
provision.

      8.10  Time.  Time is of the essence in this Agreement.

      8.11  Corporate Authorization.  If any signatory of this Agreement is a
corporation, said signatory represents and warrants that this Agreement and
the undersigned's execution of this Agreement have been duly authorized and
approved by the corporation's Board of Directors.  The undersigned officers
and representatives of the corporation(s) executing this Agreement on behalf
of the corporation(s) represent and warrant they are officers of the
corporation(s) with full authority to execute this Agreement on behalf of the
corporation(s).

      IN WITNESS WHEREOF, the undersigned have executed this Agreement,
effective as of the date first above written.

COMPANY:                                    DIRECTOR:
GK Intelligent Systems, Inc.

/s/  Gary F. Kimmons                        /s/ Dick Meador
____________________________                _____________________________
By:  Gary F. Kimmons                        Dick Meador
Its: President

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