Document:

Exhibit 10.31

 

IEC Electronics Corp.

 

Amended Salary Arrangement with Executive
Officers

 

On November 21, 2012, the independent members
of the Board of Directors of IEC Electronics Corp. (the “Company”) upon recommendation of the Compensation Committee
approved for the Chief Executive Officer, and the Compensation Committee approved for the other executive officers, the following
increases in the base salary payable to them:

 

	Name and Title	 	Existing Base Salary	 	 	Modified Base Salary	 	 	Effective Date
	W. Barry Gilbert, 
 Chairman & CEO	 	$	326,000	 	 	$	350,000	 	 	11/1/2012
	Jeffrey T. Schlarbaum,
 President	 	$	254,500	 	 	$	267,000	 	 	1/1/2013
	Donald S. Doody,
 EVP of Operations	 	$	207,600	 	 	$	228,000	 	 	1/1/2013

 

No change was made to the amount of compensation payable to
Insero & Co. CPAs, P.C., in respect of the services provided by Vincent A. Leo as Chief Financial Officer of the Company.IEC Electronics Corp.

 

Summary of 2013 Management Incentive
Plan ("2013 MIP")

  

 

 

The 2013 MIP is a cash
incentive plan that 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 Chief Financial Officer
is not eligible for Awards under the 2013 MIP. The 2013 MIP was approved by the Compensation Committee on November 21, 2012.

 

A precondition for
payment of all Awards is achievement of a threshold minimum level of company-wide Net Income Before Taxes (“Plan Threshold”).
The Plan Threshold for fiscal 2013 is $11,000,000.

 

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 ("Goals"). For fiscal 2013, 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)	Economic Value (applicable to all Participants based on company-wide results). Economic Value is
calculated as Net Income Before Taxes minus the Capital Charge on Working Capital.

 

The Compensation Committee has assigned
a weighting factor, varying from 25% to 40%, to each 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 Goal for each Participant (“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)           target performance
levels for each Goal for each Participant (“Target(s)”), based on the Company budget.

 

    	1

    	 

    

 

If all Targets are achieved by each respective
Participant, 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 performance is less than Target but at least the Minimum
with respect to any Goal, a payment less than the Award at Target will be paid to the applicable Participant, pro rated
between a payment of 10% of base salary applicable to achievement at the Minimum and such Participant’s potential Target
Award. If the Target for a Goal is surpassed, the Target Award will increase pro rata up to a cap of 200% of the Target
level Award. The Compensation Committee has the right to review and consider performance above the 200% cap. No Award will be made
with respect to a Goal if the applicable Minimum is not achieved.

 

After the end of the
fiscal year, the Compensation Committee will determine the extent to which the 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%. Use of the modification factor is not expected to be an annual event. 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.

 

The Compensation Committee
reserves the right in its discretion to modify categories or goals. In addition, (i) the Compensation Committee may adjust the
plan for gains or losses that arise from non-operating events and that affect Net Income (for example, “clawbacks”
related to acquisitions), and (ii) the Goals set forth in the 2013 MIP are based upon the organic growth of the Company. The impact
of acquisitions will be reviewed separately by the Compensation Committee.

 

Payment of any Award
to a Participant generally will be made within fifteen (15) days after receipt by the Company of the audited financial statements
for fiscal 2013. In order to receive an Award, a Participant must be an employee of the Company on the date such Award is to be
paid.

 

    	2IEC Electronics Corp.

 

Summary of 2013 Long-Term Incentive Plan

 

 

  

The purpose of the
Company's Long-Term Incentive Plan ("LTIP") is to motivate the Company’s executive officers 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 Company’s Chief Financial Officer is not eligible for awards under the 2013 LTIP.

 

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 2013 was approved by the Compensation Committee on November 21, 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, measured company-wide, and pre-established by the Compensation Committee. The Compensation Committee
has established a single performance goal (“Goal”) for fiscal 2013, revenue growth, which is the metric that
the Compensation Committee believes is key to building long-term stockholder value. Revenue growth was chosen as an objective measure
of building long-term stockholder value because it best captures the nature of the Company’s business strategy. IEC’s
customers seek contract manufacturing partners that provide high quality, long-term stable capabilities that enhance their supply
chain. Establishing and growing these relationships requires several years to build trust, and once that trust is established,
these relationships can extend over several years. Moreover, potential customers often rely on IEC’s current customers as
tangible signals of IEC’s capabilities. Growing revenues today generates future revenues and hence future value for the shareholders.

 

The Compensation Committee
also has established:

 

(i)      a minimum plan entry performance
level (“Minimum”), 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 performance level
(“Target”), based on the Company budget.

 

If the Goal is achieved at Target, the
respective Participants will earn Awards 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 – 20%. If performance
is less than the Target, but at least the Minimum, the Award will be pro rated, using a calculation base of 50% of the Award
at Target for achievement at exactly the Minimum. If the Target is surpassed, the Award at Target will increase pro rata
up to a cap of 200% of the Target level Award. The Compensation Committee has the right to review and consider performance above
the 200% cap. No Award will be made if the 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 MKT for all trading days falling within the period beginning July 1, 2013 and ending September
30, 2013.

 

After the end of the
fiscal year, the Compensation Committee will determine the extent to which the Goal has 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%. Use of the modification factor
is not expected to be an annual event. 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.

 

All Awards shall be
evidenced by a Restricted Stock Award Agreement in the manner set forth in 2010 Plan. Each Award will be subject to a five-year
period of restriction designed to provide a retention incentive, and until earned through vesting 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 Restricted Stock 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.

 

Awards earned as provided
above generally will be made within fifteen (15) days after receipt by the Company of the audited financial statements for fiscal
2013. 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 independent director members of the Board
approve the Equity Award.

 

The Compensation Committee
reserves the right in its discretion to modify categories or goals. In addition, (i) the Compensation Committee may adjust the
plan for non-operating events that affect goals, and (ii) the Performance Goals set forth in the 2013 LTIP are based upon the organic
growth of the Company. The impact of acquisitions will be reviewed separately by the Compensation Committee.

 

    	- 2 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]