WAIVERS dated as of October 25, 2007 (this “Waiver”) to the AMENDED AND RESTATED
CREDIT AGREEMENT dated as of January 31, 2007, as amended by a Consent and First
Amendment dated as of June 6, 2007 (collectively, “Credit Agreement”), among NU
HORIZONS ELECTRONICS CORP. (the “Borrower”), the Lenders, the Co-Syndication
Agents and the Documentation Agent parties thereto, and CITIBANK, N.A., as
Administrative Agent.
 
WITNESSETH

WHEREAS, the Borrower has requested that the Administrative Agent and the
Required Lenders agree to waive compliance with certain provisions of the Credit
Agreement; and

WHEREAS, the Administrative Agent has obtained the consent of the Required
Lenders to execute this Waiver, but only upon the terms and conditions set forth
herein;

NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and in consideration of the premises contained herein,
the parties hereto agree as follows:

1.
Defined Terms. Unless otherwise defined herein, capitalized terms which are
defined in the Credit Agreement are used herein as defined therein.

2.
Waivers.

(A)
SEC Reports. Until the earlier of the following (such earlier date, the
“Financial Statement Waiver Termination Date”) of:

(i)     the last date on which the Borrower has filed with the Securities and
Exchange Commission each of its report on Form 10-Q for the second quarter of
its 2008 fiscal year ended August 31, 2007, its amended report on Form 10-Q for
the first quarter of its 2008 fiscal year ended May 31, 2007 and its amended
report on Form 10-K for the 2007 fiscal year ended February 28, 2007 (the
“Specified SEC Reports”); and

(ii)     December 31, 2007;

the Lenders hereby: (y) waive the requirements under clauses (1) and (2) of
Section 5.1 of the Credit Agreement that the Borrower deliver the Specified SEC
Reports and the Borrower’s consolidated and consolidating financial statements
and the compliance certificates required to be delivered under such clauses of
the referenced Section of the Credit Agreement in connection with such reports
or such financial statements, and (z) agree that until such time as the
Financial Statement Termination Date has occurred, the failure to deliver the
Specified SEC Reports and any consequences arising solely from such failure
shall not be deemed a material adverse change for purposes of Section 3.2 of the
Credit Agreement.

(B)     Litigation. Until the earlier of the following (such earlier date, the
MAC Litigation Waiver Termination Date):
 

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(i)     the date upon which the Borrower advises the Administrative Agent that
the action entitled “Louis Grasso, individually and on behalf of all others
similarly situated, Plaintiff(s) v. Vitesse SemiConductor Corporation, Louis
Tomasetta, Yatin Mody, Eugene F. Hovanec, Silicon Valley Bank, Nu Horizons
Electronics Corp., Titan Supply Chain Services Corp. (formerly known as Titan
Logistics Corp.) and KPMG LLP, Defendant(s)” pending in the Central District of
California: United States District Court, CA Case #CV06-2529 (the “MAC
Litigation”) will result in a probable and quantifiable material adverse effect
on the business, operations, property or financial or other condition of the
Borrower and its Subsidiaries taken as a whole (a “MAC Determination”), provided
however, the obligation of the Borrower to so advise the Administrative Agent of
a MAC Determination shall not be deemed to prevent the Administrative Agent and
the Lenders from independently making a MAC Determination. Borrower and
Administrative Agent each agree to notify the other party within five (5) days
of making any MAC Determination; and

(ii)     December 31, 2008;

the Lenders hereby waive Section 3.6(b) of the Credit Agreement and agree that
the pendency of the MAC Litigation shall not constitute a breach of such
representation.

(C)        Cross Default. Until such time as a waiver is obtained of a cross
default, if any, under Section 20.8(g) of the Singapore Facility, as hereinafter
defined, to the extent any cross default under same to the Credit Agreement has
occurred and has not been cured or remedied by grant of the waivers in (A) and
(B) above, the Lenders waive the application of Section 8(e) of the Credit
Agreement with respect to any such cross default under the Singapore Facility to
the Credit Agreement. “Singapore Facility” means the revolving credit facility
in the amount of US $30,000,000.00 made available under the Revolving Credit
Facility Deed guaranteed by the Borrower for the Borrower’s Foreign Subsidiary,
Nu Horizons Electronics Asia Pte Ltd with the Hong Kong and Shanghai Banking
Corporation Limited, as Facility Agent, dated November 20, 2006, as same may be
amended.

3.     Agreements. (a) The Borrower agrees that until such time as the Financial
Statement Waiver Termination Date has occurred, the amount of the Borrowing
Base, as calculated in accordance with clause (ii) of the definition of same,
will be deemed reduced by the amount of $7,500,000.

(b)  The Borrower agrees that in consideration for the Lenders executing this
Waiver, it shall pay a fee (the “Waiver Fee”) to the Administrative Agent for
the account of each Lender that executed and delivered the Waiver on or prior to
5:00 p.m. (New York City time) on October 25, 2007 (or such later time as the
Borrower and the Administrative Agent shall agree) in an amount equal to $15,000
to be shared pro rata among the waiving Lenders in proportion to their Revolving
Credit Commitments. The Waiver Fee shall be earned upon the effective date of
this Waiver and shall be payable on October 31, 2007.

(c)  The Borrower agrees that it will supplement the reports required by Section
5.1(4) of the Credit Agreement by providing copies of all pleadings filed in the
MAC Litigation and copies of the correspondence and communications with the
Borrower’s insurance carriers with respect to same. Additionally, the Borrower
will provide the Administrative Agent with: (i) commencing with the calendar
quarter ended December 31, 2007, updates, within ten (10) days of the end of
each calendar quarter with respect to its own internal investigations related to
the MAC Litigation to the extent that counsel to the Borrower reasonably
determines that disclosure would not constitute a waiver of attorney-client
privilege with respect to such information; and (ii) prompt notice of any
material developments in the MAC Litigation (whether or not same would
constitute a MAC Determination) since the date of the last quarterly report.
Such additional reporting will include its counsel’s evaluation of Borrower’s
position in the MAC Litigation.
 

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(d)  The Borrower agrees that it will not borrow under or otherwise utilize the
Singapore Facility until the waiver specified in 2(C) above is obtained.

4.      Conditions to Effectiveness of this Waiver. This Waiver shall become
effective upon receipt by the Administrative Agent of counterparts of this
Waiver duly executed or consented to by the Borrower, the Administrative Agent
and the Required Lenders.

5.  Borrower’s Acknowledgments. The Borrower acknowledges and agrees that the
Borrower has no claims, counterclaims, offsets, or defenses to the Loan
Documents and the performance of the Borrower’s obligations thereunder or if the
Borrower did have any such claims, counterclaims, offsets or defenses to the
Loan Documents or any transaction related to the Loan Documents, the same are
hereby waived, relinquished and released in consideration of execution and
delivery of this Waiver.

6.  Acknowledgement of Guarantors. The Guarantors acknowledge and consent to all
of the terms and conditions of this Waiver and agree that this Waiver and all
documents executed in connection herewith do not operate to reduce or discharge
the Guarantors’ obligations under the Credit Agreement or the other Loan
Documents. The Guarantors further acknowledge and agree that the Guarantors have
no claims, counterclaims, offsets, or defenses to the Loan Documents and the
performance of the Guarantors’ obligations thereunder or if the Guarantors did
have any such claims, counterclaims, offsets or defenses to the Loan Documents
or any transaction related to the Loan Documents, the same are hereby waived,
relinquished and released in consideration of execution and delivery of this
Waiver.

7.  Continuing Effect; No Other Waiver. Except as expressly set forth in this
Waiver, all of the terms and provisions of the Loan Documents are ratified and
confirmed, and are and shall remain in full force and effect and the Borrower
shall continue to be bound by all of such terms and provisions.

The Waiver provided for herein is limited as specified herein and shall not
constitute any other waiver of the Loan Documents. The Borrower acknowledges and
agrees that nothing in this Waiver shall constitute an indication of the
Lenders’ willingness to consent to any other amendment or waiver of any other
provision of the Credit Agreement or a waiver of any Default or Event of Default
not referenced in this Waiver or for any other time period.
 

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8.      Expenses.  The Borrower agrees to pay and reimburse the Administrative
Agent for all its reasonable out-of-pocket costs and expenses incurred in
connection with the preparation and delivery of this Waiver, including, without
limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

9.     Counterparts. This Waiver may be executed by one or more of the parties
to this Waiver on any number of separate counterparts (including by telecopy),
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. A set of the copies of this Waiver signed by the
parties hereto shall be delivered to the Borrower and the Administrative Agent.
The execution and delivery of this Waiver by any Lender, or by the
Administrative Agent with the consent of any Lender, shall be binding upon such
Lender’s successors and assigns (including transferees of its commitments and
Loans in whole or in part prior to effectiveness hereof) and binding in respect
of all of its commitments and Loans, including any acquired subsequent to its
execution and delivery hereof and prior to the effectiveness hereof.

10.     GOVERNING LAW. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
 

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be executed
and delivered by their respective duly authorized officers as of the date first
above written.
 

        Borrower:  
 
 
HORIZONS ELECTRONICS CORP.
      By:   /s/ Kurt Freudenberg  

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Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

        Guarantors:  
   
NIC COMPONENTS CORP.        By:   /s/ Kurt Freudenberg  

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Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

 

        NU HORIZONS INTERNATIONAL CORP.  
   
   
    By:   /s/ Kurt Freudenberg  

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Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

 

        NUV INC.  
   
   
    By:   /s/Kurt Freudenberg   

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Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

        TITAN SUPPLY CHAIN SERVICES CORP.  
   
   
    By:   /s/ Kurt Freudenberg  

--------------------------------------------------------------------------------

Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

 

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        RAZOR ELECTRONICS, INC.  
   
   
    By:   /s/ Kurt Freudenberg  

--------------------------------------------------------------------------------

Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

 
 

        NuXCHANGE B2B SERVICES, INC.  
   
   
    By:   /s/ Kurt Freudenberg  

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Kurt Freudenberg
Executive Vice President, Treasurer and
Chief Financial Officer
   

 

        Administrative Agent:  
   
 
 
CITIBANK, N.A., as Administrative Agent
        By:   /s/ Stuart N. Berman  

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Stuart N. Berman
Vice President
   

 

        Documentation Agent:  
   
 

BANK OF AMERICA, N.A.,
as Documentation Agent
        By:   /s/ Steven J. Melicharek  

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Steven J. Melicharek
Senior Vice President
   

 

        Syndication Agent:  
   
 

JPMORGAN CHASE BANK, N.A.,
as Syndication Agent
        By:   /s/ Alicia T. Schreibstein  

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Alicia T. Schreibstein
Vice President
   

 

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ISRAEL DISCOUNT BANK OF NEW
YORK, as Syndication Agent
 
   
   
    By:   /s/ Scott Fishbein  

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Scott Fishbein
First Vice President
   

 

           
   
   
    By:   /s/ Roy Grossman  

--------------------------------------------------------------------------------

Roy Grossman
Senior Vice President
   

   
 

 Notice Addresses:   Lenders:

 

       CITIBANK, N.A. CITIBANK, N.A.
730 Veterans Memorial Highway
Hauppauge, NY 11788
 
   
    By:   /s/ Stuart N. Berman  

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Stuart N. Berman
Vice President
   

 

      JPMORGAN CHASE BANK, N.A. JPMORGAN CHASE BANK, N.A. 395 North Service
Road, Floor 3
Melville, NY 11747  
   
    By:   /s/ Alicia T. Schreibstein  

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Alicia T. Schreibstein
Vice President
   

   

       ISRAEL DISCOUNT BANK OF NEW YORK ISRAEL DISCOUNT BANK OF NEW YORK
511 Fifth Avenue 
New York, NY 10017
 
   
    By:   /s/ Scott Fishbein  

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Scott Fishbein
First Vice President
   

 

           
   
   
    By:   /s/ Roy Grossman  

--------------------------------------------------------------------------------

Roy Grossman
Senior Vice President
   

 

       BANK OF AMERICA, N.A. BANK OF AMERICA, N.A.
1185 Avenue of the Americas
New York, NY 10036
 
   
    By:   /s/ Steven J. Melicharek  

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Steven J. Melicharek
Senior Vice President
   

   

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      SOVEREIGN BANK SOVEREIGN BANK 330 South Service Road
Melville, NY 11474   
   
    By:   /s/ Christine Gerula  

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Christine Gerula   Senior Vice President

 

     
HSBC BANK USA, NATIONAL
ASSOCIATION  
HSBC BANK USA, NATIONAL
ASSOCIATION
534 Broad Hollow Road
Melville, NY 11747  
   
    By:   /s/ Christopher J. Mendelsohm  

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Christopher J. Mendelsohn
First Vice President
   

  

      NORTH FORK BANK, NORTH FORK BANK
A DIVISION OF CAPITAL ONE, N.A.
275 Broadhollow Road
Melville, NY 11747
CAPITAL ONE, N.A.
    By:   /s/Kevin Brown   

--------------------------------------------------------------------------------

Kevin Brown
Senior Vice President
   

 

      BANK LEUMI USA BANK LEUMI USA
48 South Service Road
Suite 200
Melville, NY 11747
 
   
    By:   /s/ Paul Tine  

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Paul Tine   First Vice President

 
 

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