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    EXHIBIT
      10.1

     

    FOURTH
      AMENDMENT TO LOAN AGREEMENT

     

    This
      Fourth Amendment to Loan Agreement (this “Amendment”) is entered into as of
      September 12, 2006, between IEC
      ELECTRONICS CORP.,
      a
      corporation organized and existing pursuant to the laws of the State of
      Delaware, with its principal executive office and place of business at 105
      Norton Street, Newark, New York 14513 (the “Borrower”) and KELTIC
      FINANCIAL PARTNERS, LP,
      a
      Delaware limited partnership, with a place of business at 555 Theodore Fremd
      Avenue, Suite C-207, Rye, New York 10580 (the “Lender”) to amend a Loan
      Agreement, dated January 14, 2003, between the Borrower and the Lender, as
      amended by First Amendment to Loan Agreement, dated March 23, 2004, a Second
      Amendment to Loan Agreement, dated as of January 7, 2005, and a Third Amendment
      to Loan Agreement, dated September 30, 2005, each between the Borrower and
      the
      Lender (the “Loan Agreement”).

     

    BACKGROUND

     

    The
      Borrower has requested that the Lender increase the maximum amount available
      under the Loan Agreement to $5,535,000, extend the maturity date of the Loan
      Agreement and modify certain other terms contained in the Loan Agreement, and
      the Lender is willing to do so, subject to the terms hereafter set
      forth.

     

    Now,
      therefore, for valuable consideration, the receipt and sufficiency of which
      is
      hereby acknowledged, the Borrower and the Lender agree as follows:

     

    1.  Recitals.
      The
      above recitals are true and correct in all respects and form an integral part
      of
      this Amendment.

     

    2.  Definitions.
      Unless
      otherwise defined in this Amendment, all capitalized terms will have the
      meanings given them in the Loan Agreement.

     

    3.  Amendments.
      The
      Borrower and the Lender agree to amend the Loan Agreement as
      follows:

     

    (a)  The
      current definition of “Eligible Receivables” is amended by deleting subclause
      (g) and replacing it with the following:

     

    (g)
      the
      total unpaid Receivables of the Account Debtor and its Affiliates exceeds 15%
      of
      the net amount of all Receivables, to the extent of such excess; provided that
      any such Receivable in excess of 15% shall be considered an Eligible Receivable
      so long as (i) Borrower shall monitor closely the related Account Debtor’s
      financial condition, (ii) Borrower shall provide Lender periodic updates with
      respect to such Account Debtor’s financial condition and (iii) Borrower shall
      provide Lender with such further financial information related to such Account
      Debtor as the Lender may request. Should there be any material deterioration
      in
      any such Account Debtor’s financial condition or any required financial
      information shall not be available, Lender may (x) apply strictly the 15%
      limitation, establish a lower percentage or exclude all Receivables of such
      Account Debtor, (y) establish reserves or (z) require Borrower to take other
      steps to mitigate collection risks. The foregoing conditions do not limit any
      other provision of this Agreement providing a basis for determining that a
      Receivable is an ineligible Receivable or otherwise providing Lender
      rights.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (b)  The
      current definition of “Loan Interest Rate” in the Loan Agreement is deleted and
      replaced with the following:

     

    “Loan
      Interest Rate”
shall
      mean, the per annum interest rate equal to the prime rate published in the
      “Money Rates” column of The Wall Street Journal from time to time or, in the
      event that The Wall Street Journal is not available at any time, such rate
      published in another publication as determined by Lender, plus 100 basis
      points.

     

    (c)  The
      current definition of “Maximum Facility” in the Loan Agreement is deleted and
      replaced with the following:

     

    “Maximum
      Facility”
shall
      mean $5,535,000.00

     

    (d)  The
      current definition of “Termination Date” in the Loan Agreement is deleted and
      replaced with the following:

     

    “Termination
      Date”
shall
      mean the earlier of (a) September 12, 2009 or (b) the date on which Lender
      terminates this Agreement pursuant to Section 12.1 of this
      Agreement.

     

    (e)  Advances
      of the Revolving Loan.
      Section
      2.1 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

    “Subject
      to the terms and conditions of this Agreement and relying upon the
      representations and warranties set forth in this Agreement, for so long as
      no
      Default or Event of Default exists, Lender shall lend to Borrower on its
      request, a sum (“Borrowing Capacity”) equal to the lesser of: 

     

      (a)
      the
      Maximum Facility reduced by the outstanding principal balance of the Real Estate
      Loan; or 

     

      (b)
      the
      sum of (i) up 85% of the net face amount of Borrower’s Eligible Receivables;
      (ii) the lesser of $1,500,000 or 35% of the Value of Borrower’s Eligible
      Inventory, but the amount computed under this clause (ii) shall in no event
      exceed 40% of the sum of the amounts computed pursuant to clauses (i) and (ii)
      of this Section 2.1(b); and (iii) the amount of any permitted Overadvances
      as
      described in the next paragraph. Value shall mean the lesser of cost or the
      fair
      market value of such Inventory.

     

    In
      addition to the amounts computed in (b)(i) and (ii) above, Lender will permit
      Borrower to receive additional Advances in an aggregate principal amount
      outstanding at any one time not to exceed the lesser of (A) $1,000,000 or (B)
      an
      amount that would not cause the outstanding principal of Advances to exceed
      the
      Maximum Facility reduced by the then outstanding principal balance of the Real
      Estate Loan (each, an “Overadvance” and collectively “Overadvances”) provided
      that (i) all outstanding Overadvances shall be repaid within 60 days of the
      making of the initial Overadvance occurring during any Overadvance Period,
      (ii)
      no Overadvances shall be outstanding for a period of at least 30 days between
      each Overadvance Period and (iii) no Default or Event of Default shall have
      occurred and be continuing. “Overadvance Period” means each period of no more
      than 60 days during which Overadvances are outstanding.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    Within
      the limits of the Borrowing Capacity, and subject to the limitations set forth
      in this Agreement, Borrower may borrow, repay and reborrow
      Advances.”

     

    (f)  Term
      Loan.
      Section
      2.2 of the Loan Agreement is amended by deleting the last two sentences thereof
      and replacing them with the following:

     

    “The
      Lender shall also make a loan in the amount of $535,000 to the Borrower as
      of
      September 12, 2006 (the “Real Estate Loan”), which shall be payable by Borrower
      in accordance with the terms of a replacement term note attached hereto as
      Exhibit
      B-2.”

     

    (g)  Interest
      on Loans.
      Section
      3.1 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

     “Borrower
      shall pay interest monthly, in arrears, on the first day of each month, on
      the
      unpaid principal amount of the Revolving Loan, and on the principal balance
      of
      the Real Estate Loan, at a fluctuating rate which is equal to the Loan Interest
      Rate, except all Overadvances shall accrue interest at a rate per annum equal
      to
      the Loan Interest Rate, plus 100 basis points (the “Overadvance Loan Interest
      Rate”). Notwithstanding the foregoing, on and after the occurrence of a Default
      or Event of Default, Borrower shall pay interest on the Loans at a rate which
      is
      3.5% per annum above the Loan Interest Rate or the Overadvance Loan Interest
      Rate (as the case may be); provided, however, in no event shall any interest
      to
      be paid under this Agreement or under any Loan Document exceed the maximum
      rate
      permitted by law. 

     

    (h)  Liquidated
      Damages.
      Section
      3.6 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

    “If
      Borrower prepays the principal of the Revolving Loan to Lender (other than
      from
      time to time from working capital) or if the outstanding Obligations become
      due
      prior September 12, 2009 because of a payment default or other material default
      of Borrower, Borrower shall pay to Lender at the time of such prepayment,
      liquidated damages in an amount equal to: (a) two percent (2%) of the Maximum
      Facility if the prepayment is made prior to September 12, 2007 or (b) one
      percent (1%) of the Maximum Facility if the prepayment is made on or after
      September 12, 2007 but before September 12, 2008 and (c) one half of one percent
      (1/2%) of the Maximum Facility if the repayment occurs on or after September
      12,
      2008. Borrower shall give Lender at least ninety (90) days’ advance written
      notice (“Termination Notice”) of Borrower’s election to terminate the
      availability of the Revolving Loans under this Agreement prior to September
      12,
      2009. The Termination Notice shall be irrevocable and shall specify the
      effective date of such termination, which effective date shall not be less
      than
      ninety (90) days after the giving of the Termination Notice and shall be in
      no
      event later than September 12, 2009. All the Obligations shall become due and
      payable on such effective date specified in the Termination Notice, and after
      such effective date, Lender shall have no obligation to make any Advance(s)
      to
      Borrower. No liquidated damages will be payable if (x) Borrower establishes
      to
      the reasonable satisfaction of Lender that Borrower requires an increase to
      the
      Maximum Facility to support internal growth or acquisitions, (y) Lender does
      not
      agree to provide the required increase in the Maximum Facility (whether or
      not
      to provide such increase being in the sole and absolute discretion of Lender),
      and (z) Borrower finds another lender to provide such increased facility and
      prepays the Revolving Loan and the Real Estate Loan from the proceeds of such
      increased facility.”

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (i)  Facility
      Fee.
      Section
      3.3 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

    “Borrower
      shall pay to Lender monthly, in arrears, on the first day of each month a
      facility fee in an amount equal to .40% per annum of the Total
      Facility.
      If at
      any time the aggregate outstanding principal balance of the Revolving Loan
      (including any Overadvances) exceeds $5,000,000.00, the facility fee will be
      increased for the remainder of the year and for each year thereafter so that
      it
      shall equal .40% per annum of the Maximum Facility. The facility fee is deemed
      earned in full for each year on the date hereof and on each anniversary hereof,
      except if the facility fee is so increased during a year, the increase
      applicable to the remainder of the year is deemed earned in full as of the
      date
      of such increase.” 

     

    (j)  Collateral
      Management Fee.
      Section
      3.4 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

    “Borrower
      shall pay to Lender monthly, in arrears, on the first day of each month, a
      collateral management fee in an amount of $1,000.”

     

    (k)  Field
      Examination Fees. Section
      3.5 of the Loan Agreement is amended by deleting it in its entirety and
      replacing it with the following:

     

    “Borrower
      shall promptly reimburse Lender for all costs and expenses associated with
      periodic field examinations and fixed asset appraisals performed by Lender
      and
      its agents, as deemed necessary by Lender; provided, however, Lender shall
      perform such examinations and appraisal no more than once per year and at a
      cost
      not to exceed $9,000 per year, in each case so long as an Event of Default
      has
      not occurred.”

     

    (l)  Exhibits.
      Exhibit
      A of the Loan Agreement is replaced by the Replacement Revolving Note in the
      form of Exhibit A attached to this Amendment. Exhibit B-2 of the Loan Agreement
      is replaced by the Replacement Term Note in the form of Exhibit B-2 attached
      to
      this Amendment.

     

    4.  No
      Claims.
      The
      Borrower acknowledges that it does not have any claim, counterclaim, cause
      of
      action, defense, recoupment or right of offset (each a “Claim” and collectively
“Claims”) relating in any way to (i) this Amendment, the Obligations or the Loan
      Documents , (ii) the enforceability of the Loan Documents, (iii) the validity
      or
      enforceability of any of the Loan Documents or (iv) any act, claim or statement
      of fact that would or might lessen, eliminate or modify any of the Lender’s
      rights or remedies pursuant to any of the Loan Documents or in connection with
      any of the Collateral; provided, however, that if notwithstanding the foregoing,
      the Borrower shall purport to have any such Claim, the Borrower hereby
      irrevocably and forever waives such Claim. 

     

    5.  No
      Waivers.
      Nothing
      in this Amendment shall constitute a waiver by the Lender of any of default
      or
      event of default or any of the Lender’s rights arising as a result of the such
      default or event of default or other rights or remedies arising pursuant to
      any
      of the Loan Documents or in connection with any of the Obligations or the
      Collateral and the rights and remedies of the Lender shall remain for all
      purposes in full force and effect. Except as expressly amended by this
      Amendment, the Loan Agreement and the other Loan Documents remain in full force
      and effect.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6.  Ratification.
      The
      Borrower ratifies and reaffirms the Loan Agreement, as amended hereby, and
      the
      other Loan Documents, and agrees that the Collateral secures the Obligations,
      including, without limitation, those arising under the Loan Agreement, as
      amended hereby. 

     

    7.  Miscellaneous.
      This
      Amendment is governed by and is to be construed in accordance with the internal
      laws of the State of New York. 

     

    
      
        
        

      

      
        5Exhibit 10.1

    KUHLMAN
      COMPANY, INC.

     

     

    
      	 	Investor Relations
              Contact:
	 	
              James
                Palczynski or Joe Teklits

            
	 	
              Integrated
                Corporate Relations, Inc.

            
	 	
              (203)
                682-8200

            
	 	 
	 	Company
              Contact:
	 	
              Scott
                Kuhlman, Chief Executive Officer

            
	 	
              Kuhlman
                Company, Inc.

            
	 	
              (612)
                767-2400

            

    

     

     

    KUHLMAN
      COMPANY RECEIVES AMEX COMPLIANCE NOTICE 

     

     

    Minneapolis,
      Minnesota - January 26, 2005 - Kuhlman Company, Inc. (AMEX:KUL), a provider
      of
      European-inspired, tailored clothing for men and women, today reported that
      on
      September 26, 2006, the Company received notice from the American Stock Exchange
      (“AMEX”) that the Company was not in compliance with certain of AMEX’s continued
      listing requirements. Specifically, the Company was not in compliance with
      Section 1003(a)(ii) of the AMEX Company Guide, the AMEX shareholder equity
      requirement of shareholder’s equity of less than $4,000,000 and/or net losses in
      three out of four most recent fiscal years, as well as with Section 1003(a)(iv)
      of the AMEX Company Guide because, in the opinion of AMEX, the Company’s
      financial condition is impaired and it appears questionable, in the opinion
      of
      AMEX, as to whether the Company will be able to continue operations and/or
      meet
      its obligations as they mature. The Company intends to submit a plan to AMEX
      by
      October 26, 2006 advising AMEX what action it has taken, or will take, that
      would bring the Company into compliance. No assurance can be given that AMEX
      will find such plan acceptable and that The Company can maintain its AMEX
      listing. 

     

    About
      Kuhlman Company, Inc.

    Kuhlman
      is a specialty retailer and wholesale provider of branded men's and women's
      apparel, through company-owned retail stores and under private labels through
      other large retailers. Kuhlman opened its first retail store in July 2003 and
      now operates 32 retail stores in 13 states. Kuhlman has approximately 140
      employees and its corporate office is located in Minneapolis, MN. Additional
      information regarding Kuhlman and its apparel, and store locations can be found
      at http://www.kuhlmancompany.com.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Forward-Looking
      Statements

    Some
      of
      the statements made in this release are forward-looking statements. These
      forward-looking statements are based upon our current expectations and
      projections about future events and generally relate to our plans, objectives
      and expectations for our business. Although our management believes that the
      plans and objectives expressed in these forward-looking statements are
      reasonable, the outcome of su2ch plans, objectives and expectations involve
      risks and uncertainties and our
      actual future results may be materially different from the plans, objectives
      and
      expectations expressed in these forward-looking statements. Specific factors
      that might cause actual results to differ from our current expectations include,
      but are not limited to:

    

    
      	
            	·	
              our
                ability to anticipate and identify style
                trends

            

    

    
      	
            	·	
              our
                ability to identify and secure favorable retail
                locations

            

    

    
      	
            	·	
              our
                ability to establish successful vendor relationships and obtain quality
                products on a timely basis

            

    

    
      	
            	·	
              our
                ability to hire and develop successful retail salespeople and
                managers

            

    

    
      	
            	·	
              our
                ability to identify and develop additional wholesale
                relationships

            

    

    
      	
            	·	
              our
                ability to compete successfully against other retailers and market
                our
                styles in a profitable manner, and

            

    

    
      	
            	·	
              other
                factors expressed in our periodic filings with the United States
                Securities and Exchange Commission, specifically including those
                risk
                factors contained in the Company’s current report on Form 8-K filed on
                June 16, 2005.

            

    

    

    For
      the
      foregoing reasons, readers and investors are cautioned that there also can
      be no
      assurance that the outcomes expressed in our forward-looking statements included
      in release will prove to be accurate. In light of the significant uncertainties
      inherent in such forward-looking statements, the inclusion of such information
      should not be regarded as a representation or warranty by the Company or any
      other person that the Company’s objectives and plans will be achieved in any
      specified time frame, if at all. The Company does not undertake any obligation
      to update any forward-looking statements or to announce revisions to any
      forward-looking statements.

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