Exhibit 10.1

SUPPLEMENTAL SALARY CONTINUATION AND NON-COMPETITION AGREEMENT AND RELEASE OF CLAIMS (“SUPPLEMENTAL AGREEMENT”)

Between

IEC ELECTRONICS CORP (“IEC” or “Company”)

And

JEFFERY T. SCHLARBAUM (“Executive”)

WHEREAS, Executive and IEC have entered into a Salary Continuation and Non-Competition Agreement dated and effective as of October 1, 2010 (the “Agreement”); and

WHEREAS, the parties wish to amend and supplement that agreement and to provide for the release of claims provided for in paragraph 2.3(ii) thereof; now, therefore

IT IS AGREED BY AND BETWEEN EXECUTIVE AND IEC AS FOLLOWS:

Executive, for himself and his agents, representatives, heirs, beneficiaries and assigns, to the greatest extent permitted by law, knowingly and voluntarily releases and forever discharges IEC and its directors, officers, agents, employees and representatives, from any and all claims, demands, rights, actions or causes of action, liabilities, damages, costs, expenses, losses, obligations, indemnities, judgments, suits, matters and issues of any kind or nature whatsoever, including both known and unknown claims, contingent or absolute, suspected or unsuspected, disclosed or undisclosed, matured or unmatured, of any nature whatsoever, whether individual, class, direct, derivative, representative or otherwise, that have been, could have been or in the future could be asserted against the IEC at any time prior to the date of the execution of this Supplemental Agreement, including, but not limited to a release of any rights or claims he may have under:

Except as provided below, Executive, for himself and his agents, representatives, heirs, beneficiaries and assigns, promises never to file a suit, charge, complaint, demand, action, or otherwise assert any claims against the IEC or its directors, officers, employees, agents or representatives on any matter arising from his employment with IEC or separation therefrom, including, but not limited to, the claims referenced above, and Executive represents that no such claim or demand presently is pending, and that if any action does exist or is hereafter brought, that he expressly waives any claim to any form of relief or recovery and agrees to reimburse IEC for all payments provided hereunder, as well as the reasonable costs and attorneys’ fees incurred in defending such action.

Executive understands that nothing in this Supplemental Agreement shall be construed to prohibit him from participating in any investigation or proceedings of any federal or state agency including the Equal Employment Opportunity Commission ("EEOC") and/or from communicating with EEOC, but only to the extent such right is protected under the law, provided, however, to the extent any such proceeding has been or is brought, Executive expressly waives any claim to any form of monetary or other damages or any other form of recovery or relief in connection with any such action, or in connection with any action brought by a third party.

If to the Company:

IEC Electronics Corp.

105 Norton Street

Newark, NY 14513

Attn. Chairman and Chief Executive Officer

with a copy to:

Harris Beach PLLC

99 Garnsey Road

Pittsford, NY 14534

Attn. Beth Ela Wilkens

If to Executive:

Jeffery T. Schlarbaum

14 Cobble Creek Drive

Victor, New York 14564

with a copy to:

Paul Keneally, Esq.

Underberg & Kessler LLP

300 Bausch &Lomb Place

Rochester, New York 14604

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of February 25, 2013.