EXHIBIT 10.1

                                 Amendment No. 1
                                       to
                              Employment Agreement




This Amendment No. 1 to the Employment  Agreement (the "Agreement")  dated as of
December  13,  2002  ("Agreement  Date")  by and  between  Financial  Industries
Corporation, a Texas company ("Company"),  and Thomas C. Richmond ("Executive"),
a resident of Texas.  The parties desire to enter into this Amendment,  which is
intended  to  modify  certain  terms  and   conditions  of  the  Agreement.   In
consideration  of the  mutual  agreements  contained  herein,  the  Company  and
Executive agree as follows:


     1.   Section 3.1 of the Agreement is hereby amended in its entirety to read
          as follows:

          3.1  Employment Period. The term of Executive's  employment under this
               Agreement (the "Employment  Period") shall begin on the Agreement
               Date and end on February 13, 2004.  At the end of the  Employment
               Period,  Executive  shall be entitled to receive the payments set
               forth in paragraph 3 of this  Amendment  No. 1 to the  Employment
               Agreement.

     2.   Section 4.2 of the Agreement is hereby deleted in its entirety.


     3.   Article IV  -Compensation  is amended by the addition of the following
          new section:

          4.2  Severance  Payment.  Following the end of the Employment  Period,
               Executive  shall be entitled to receive,  as severance  payments,
               bi-weekly  payments  of  $7,307.70  each,  net of any  applicable
               deductions  for federal  income taxes and other  related  payroll
               taxes,  in  accordance  with  the  FIC  Insurance  Group  Payroll
               Calendar  (hereinafter   referred  to  as  "Installments").   The
               Installments  shall be payable  beginning  on February  26, 2004,
               with the final  payment  being  made on the  second  regular  FIC
               Insurance Group Payroll date for the month of December 2005.

               During the period that the Installments are payable:


                                     - 1 -





               (a)  the  Company  will  use its  best  efforts  to  provide  for
                    Executive's  continued  participation  in  the  medical  and
                    dental  insurance  plans for which Executive was enrolled as
                    of January 1, 2004,  for which  Executive will make the same
                    contribution  to the  cost  of such  benefits  as is made by
                    active  employees  participating  in such plans.  If, at any
                    time during the period that  Installments  are payable,  the
                    Company  is  unable to  provide  for  Executive's  continued
                    participation  in said medical and dental  plans,  Executive
                    may apply for COBRA  participation.  If Executive enrolls in
                    COBRA,  the  Company  will  contribute  to the  cost of such
                    coverage,  for the period commencing with the effective date
                    of such COBRA  enrollment  and ending on the date of payment
                    of the final Installment, the difference between the cost of
                    COBRA  coverage  and the  amount of  contributions  which an
                    active   employee  of  the  Company  would  be  required  to
                    contribute for  participation in the medical benefit plan of
                    the Company;

               (b)  Executive  will not be eligible to  participate  in the 401K
                    plan  sponsored  by the  Company  and  he  will  not  accrue
                    additional benefits under the defined benefit plan; and

               (c)  the Company will provide  Executive  with life insurance and
                    accidental death benefit  insurance in an amount  comparable
                    to the amount for which Executive was enrolled as of January
                    1,  2004.  Executive  will  contribute  to the  cost of such
                    benefits  on the same basis  that he would have  contributed
                    had he continued as an active employee.


     4.   All  capitalized  terms in this  Amendment  shall have the meaning set
          forth in the Agreement,  in the absence of a different  definition set
          forth herein.


     5.   To the extent that any terms of this Amendment are  inconsistent  with
          the express terms of the Agreement,  this Amendment shall control. All
          other terms in the Agreement shall remain in full force and effect.


                                     - 2 -





     IN WITNESS WHEREOF,  Company and Executive have caused this Amendment to be
executed as of this 13th day of February, 2004.


Financial Industries Corporation


By:    /s/ Theodore A. Fleron
    _____________________________

Title:  Vice President and Secretary





       /s/ Thomas C. Richmond
    ______________________________
    Thomas C. Richmond


                                     - 3 -