Document:

Exhibit
10.46

     

    EMPLOYMENT
AGREEMENT

     

    Peerless
Systems Corporation, a Delaware Corporation, (the “Company”) and its
successors and assigns, and Edward M. Gaughan, a natural person (“Executive”)
(collectively, the “Parties”), make this
EMPLOYMENT AGREEMENT (“Agreement”) as of
December 3, 2008 (“Commencement
Date”).

     

    RECITALS

     

    1.           WHEREAS,
Executive is currently employed by the Company as the Acting
President.

     

    2.           WHEREAS,
the Company wishes to employ Executive and Executive wishes to be employed by
Company in said position.

     

    3.           WHEREAS,
the Company and Executive thus enter into this Employment Agreement to outline
the terms and conditions of Executive’s new position with Company and except as
set forth herein, simultaneously wish to extinguish any and all obligations owed
by each Party to the other arising out of their prior employment
relationship.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, the Company and Executive agree as follows:

     

    AGREEMENT

     

    1.                      Employment.

     

    (a)                 At-Will.  The
Term of this Agreement shall begin on the Commencement Date and shall continue
“at-will” until either party elects to terminate this Agreement pursuant to
Paragraph 5 (the “Term”).

     

    (b)               
Duties and
Responsibilities.  The Executive will report to William
Neil  (“Neil”), the Board of Directors (the “Board”), or another
appointee of the Board.  Executive shall be employed as Acting
President and Vice President/Head of Sales and shall perform and
discharge well and faithfully the duties which may be assigned to him from time
to time by the Board and/or Neil in connection with the conduct of the Company’s
business as well as those duties which are normally and customarily vested in an
Acting President and Vice President/Head of Sales of a corporation.

     

    Executive’s
job responsibilities shall include, but not be limited to, anything reasonably
requested or required of Executive on behalf of the Company.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (c)               
Extent of Services and
Business Activities.  Executive shall devote his full-time
efforts to the business of the Company and shall not devote time to other
activities except with the prior consent of the Board of the
Company.  Executive covenants and agrees that for so long as he is
employed by the Company, Executive shall not, whether as an executive, employee,
employer, consultant, agent, principal, partner, member, stockholder, corporate
officer or director, or in any other individual or representative capacity,
whether or not for compensation, engage in or participate in or render services
to any other, provided, however, that,
notwithstanding the foregoing, Executive (a) may invest in securities of any
entity, solely for investment purposes and without participating in the business
thereof, if (x) such securities are traded on any national securities exchange
or the National Association of Securities Dealers, Inc. Automated Quotation
System, and (y) Executive does not, directly or indirectly, own two percent (2%)
or more of any class of securities of such entity.

     

    (d)       
        Location.  During
the Term, Executive shall regularly perform his duties from his home office
located in the state of Kentucky or at the request of the Board, at the
Company’s principal location (the “Headquarters”).  In addition to
spending time at the Headquarters, Executive may be required to travel from time
to time in order to perform his duties hereunder.

     

    2.                      Compensation.

     

    (a)        
        Base
Salary.  Executive shall be paid an annual base salary (“Base Salary”) during
the Term of two hundred thousand dollars ($200,000.00).  Executive’s
Base Salary shall be payable in installments consistent with the payroll
practices established by the Company with respect to its senior executive
employees.

     

    (b)               
 Retention
Bonus.  Executive shall be entitled to receive a retention
provided Executive remains employed by the Company in good standing as of the
applicable payment date:

     

    
      
        
          
            
              	
                      Payment Date

                    	 	
                      Amount

                    	 
	 
      	 	 	 
	
                      January
      31, 2009

                    	 	$	17,500	 
	 
      	 	 	 	 
	
                      March
      31, 2009

                    	 	$	10,000	 
	 
      	 	 	 	 
	
                      August
      30, 2009

                    	 	$	25,000	 
	 
      	 	 	 	 
	
                      May
      31, 2010

                    	 	$	40,000	 

            

          

        

      

    

     

    (c)           Performance Achievement
Bonus.  In addition, Executive is eligible to earn the
following Performance Achievement Bonuses provided that Executive remains
employed by the Company in good standing as of the applicable payment date and
has accomplished the task(s) set forth below as determined by the Board in its
sole discretion:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    Payment Date

                  	 	
                    Amount

                  	 	
                    Task

                  
	 
      	 	 	 	 
      
	
                    August
      30, 2009

                  	 	$	25,000	 	
                    Revenue
      from operations for the six months ending January 31, 2009 exceeds $4.5
      million or greater

                  
	 
      	 	 	 	 	 
      
	
                    Upon
      Company’s receipt of First $2 million Kyocera Mita
Corporation

                    (“KMC”)
      Payment

                  	 	$	12,500	 	
                    Subject
      to Company’s receipt of entire KMC payment amount

                  
	 
      	 	 	 	 	 
      
	
                    Upon
      Company’s receipt of Second $2 million KMC Payment

                  	 	$	12,500	 	
                    Subject
      to Company’s receipt of entire KMC payment
  amount

                  

          

        

      

    

     

    (d)      Incentive
Compensation.  Executive is also eligible to receive the
following incentive payments provided Executive remains employed by the Company
in good standing as of the applicable payment date and has reached the threshold
payment requirements as determined by the Board of the Company in its sole
discretion:

     

    
      
        
          
            	
                    Payment Date

                  	 	
                    Estimated Amount

                  	 	
                    Threshold/Calculation

                  
	 
      	 	 	 	 
      
	
                    October
      31, 2008

                  	 	$	43,225	 	
                    $.0065
      per dollar of revenue actually received by Company for 1 H FY 2009 Revenue
      of

                    $6.65
      million.

                  
	 
      	 	 	 	 	 
      
	
                    March
      31, 2009

                  	 	$	26,950	 	
                    $.007
      per dollar of revenue actually received by Company, if Company achieves 2
      H FY 2009 revenue of

                    $3.85
      million or greater.

                  
	 
      	 	 	 	 	 
      
	
                    August
      30, 2009

                  	 	$	75,000	 	
                    5%
      of all amounts actually received by the Company on new business revenue
      (less costs, which shall include third party Intellectual Property)
      generated by Executive from a new division of an existing customer and 10%
      of all amounts actually received by the Company on new business revenue
      (less costs, which shall include third party Intellectual Property)
      generated by Executive from a new
customer.

                  

          

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    The
Parties acknowledge that the amounts set forth above as “Estimated” amounts and
thus are not guaranteed.  The actual amount of Incentive Compensation
will be based on Executive’s actual performance in conjunction with the
Threshold requirements.

     

    (e)           Payment.  Payment
of all compensation to Executive hereunder shall be made in accordance with the
relevant written Company policies in effect from time to time, including normal
payroll practices, and shall be subject to all applicable employment and
withholding taxes.  This provision shall survive the termination of
Executive’s employment with the Company, for any reason.

     

    3.           Other Employment
Benefits.

     

    (a)           Business
Expenses.  Upon submission of itemized expense statements, in
the manner as shall be specified by the Company, Executive shall be entitled to
reimbursement for reasonable business and travel expenses duly incurred by
Executive in the performance of his duties under this Agreement, pursuant to
written Company policy and any relevant written policies established by the
Board and provided to Executive.

     

    (b)           Benefit
Plans.  To the extent offered by the Company, Executive shall
be entitled to participate, on a basis commensurate with his position, in the
Company’s medical insurance, retirement (e.g., non-matching 401(k)
plan) and other benefit plans pursuant to their terms and conditions during the
Term of this Agreement. Nothing in this Agreement shall preclude the Company or
any affiliate of the Company from terminating or amending any employee benefit
plan or program from time to time.

     

    (c)           Vacation.  Executive
shall be credited with Six Hundred and Sixty-One (661) vacation hours as of the
execution of this Agreement.  Executive agrees to use a minimum of
Eighty (80) of those hours during the 2008 calendar year and another One Hundred
Sixty (160) hours ending the calendar year 2010.  Executive must
exhaust the remaining balance of his vacation bank during the 2011 calendar
year.  Executive acknowledges that he is not entitled to accrue any
further vacation until all vacation balances are exhausted.  However,
once exhausted Executive will again begin to accrue vacation at the rate
applicable to other senior executives of the Company.

    
      
         

      

      
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    (d)           No Other
Benefits.  Executive understands and acknowledges that the
compensation and benefits specified in Paragraphs 2 and 3 of this Agreement are
the only compensation and benefits he is entitled to receive under this
Agreement.

     

    4.     
      Confidentiality; Unfair
Competition; Non-Solicitation Agreement.  Concurrent with
Executive’s execution of this Agreement, Executive shall execute and deliver to
the Company a non-disclosure and confidentiality agreement in the form attached
hereto as Exhibit
A (the “Non-Disclosure
Agreement”).  The terms of the Non-Disclosure Agreement are
incorporated by this reference as if set forth in full.

     

    5.          
 Termination of
Employment.

     

    (a)           Termination of At-Will
Employment.  Either the Company or Executive may terminate
Executive’s employment at any time with or without advance notice or
cause.  In such an event, Executive will only be entitled to the
Accrued Obligations as set forth below.

     

    (b)           Payments Upon
Termination.  If Executive’s employment is terminated for any
reason by either party, the Company shall promptly pay or provide to the
Executive, or his estate, (i) the Executive’s earned but unpaid Base Salary
accrued through the date of termination, (ii) accrued, but unpaid, vacation time
through such date of termination, (iii) any Bonus or Incentive Compensation
required to be paid to the Executive pursuant to this Agreement, to the extent
earned prior to the date of termination and payable, but not previously paid,
(iv) reimbursement of any business expenses incurred by the Executive prior to
the Date of Termination that are reimbursable under Paragraph 3(a) above, and
(v) any vested benefits and other amounts due to Executive under any plan,
program, policy of, or other agreement with, the Company(subsections (i) to (v),
above, are referred to together as the “Accrued
Obligations”).

     

    (c)           Severance
Payments.  In addition, in the event Executive’s employment is
terminated by the Company without Cause (as Cause is defined below) and
Executive executes a general release in favor of the Company in the form
attached hereto as Exhibit “B” no later than thirty (30) days following
Executive’s last day of employment with the Company (but not before Executive’s
last day of employment) Executive shall receive the equivalent of nine (9)
months Base Salary payable in one lump sum within ten (10) business days from
Executive’s full execution of such release agreement less deductions required by
law.  Executive shall also receive reimbursement for nine (9) months
of COBRA premiums for Executive’s existing healthcare coverage and shall have
ninety (90) days from his last day of employment to exercise any vested but
unexercised stock options.

     

    For
purposes of Section 5(c) only, Cause shall be defined as (i) Executive’s
conviction, pleading guilty or no contest with respect to a felony involving
dishonesty or moral turpitude, (ii) Executive’s commission of any act of theft,
fraud, dishonesty, or falsification of any employment or Company records, (iii)
Executive’s engagement in misconduct that is detrimental to the Company’s
reputation or business, (iv) Executive’s refusal without proper legal reason to
substantially perform the duties and responsibilities required of Executive, or
(v) any breach by Executive of any material term of this Agreement (including
without limitation the Non-Disclosure Agreement) and/or of Executive’s fiduciary
duties to the Company.

    
      
         

      

      
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    6.       
    Executive’s Duties Upon
Termination.

     

    (a)           Cooperation.  After
notice of termination, Executive shall, at the Company’s expense and subject to
Executive’s professional availability, cooperate with the Company, as reasonably
requested by the Company, to effect a transition of Executive’s responsibilities
and to ensure that the Company is aware of all matters being handled by
Executive.

     

    (b)           Return of Company
Property.  Within seven days of the termination of Executive’s
employment under this Agreement for any reason, Executive will return all
Company property in Executive’s possession to the Company.

     

    (c)           Resignation of
Office.  On the termination of Executive’s employment for
whatever reason, Executive agrees that Executive shall resign any directorship
or any other offices held by Executive in the Company or any subsidiary of the
Company.

     

    7.      
     Assignment and
Transfer.  Executive’s rights and obligations under this
Agreement shall not be transferable by assignment or otherwise, and any
purported assignment, transfer or delegation thereof shall be
void.  This Agreement shall be assignable by the Company and inure to
the benefit of, and be binding upon and enforceable by, any purchaser of
substantially all of Company’s assets, any corporate successor to Company or any
assignee thereof; provided however that such assignee assumes in writing the
Company’s obligations thereunder.

     

    8.       
    No Inconsistent
Obligations.  This Agreement and the Accompanying
Non-Disclosure Agreement shall represent the sole agreement with Company as to
the subject matter herein, and Executive has no other employment relationship
and is not subject to any other employment agreement with the Company or any
other affiliate of the Company and Executive has no obligations, legal or
otherwise, inconsistent with the terms of this Agreement or with Executive
undertaking employment with the Company.  Executive represents and
warrants that Executive has the right and power to enter into this Agreement, to
perform Executive’s obligations hereunder and by entering into this Agreement
and performing Executive’s obligations hereunder Executive is not in conflict
with any agreement with any third party.  The Company represents and
warrants that the Company has all requisite corporate power and authority to
execute and deliver this Agreement and to perform its obligations
hereunder.

     

    9.     
      Mutual Release of Claims
Under Prior Employment Arrangement.  In exchange and as
consideration for each Party entering into this Agreement, each Party agrees to
release the other from any claims they may have against the other, as stated
below:

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    (a)           Each
Party hereby voluntarily, knowingly and willingly releases, acquits and forever
discharges the other Party including, without limitation, each of their former,
current and future parents, subsidiaries, divisions, affiliates, predecessors,
successors and assigns and all of their current, former and future agents,
employees, officers, directors, shareholders, members, joint ventures,
attorneys, representatives, predecessors, successors, assigns, owners and
servants) from any and all claims, costs or expenses of any kind or nature
whatsoever, whether known or unknown, foreseen or unforeseen, which against any
or all of them any Party ever had, now has or hereinafter may have, against the
other Party, up to and including the date of the Parties’ execution of this
Agreement.

     

    (b)           It
is a condition hereof, and it is the Parties intention in the execution of the
General Release in subparagraph 9(a), above, that the same shall be effective as
a bar to each and every claim hereinabove specified, and in furtherance of this
intention, the Parties hereby expressly waive any and all rights and benefits
conferred upon them by Section 1542 of the California Civil Code (or its
Kentucky equivalent), which provides:

     

    A
general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement with
the debtor.

     

    (c)           Executive
further acknowledges and agrees that he is not owed any wages, commissions,
bonuses, MBO’s, accrued but unused vacation pay or unreimbursed business
expenses except as set forth herein arising out of or relating to Executive’s
prior employment with the Company.

     

    10.           Miscellaneous.

     

    (a)           Survival.  The
provisions of this Agreement, including, without limitation Paragraphs 10(c)
(Arbitration), contained herein shall survive the termination of
employment.

     

    (b)           Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Kentucky without regard to conflict of law principles.

     

    (c)           Arbitration
.  With the exception of any claims for workers compensation,
unemployment insurance, claims before any governmental administrative agencies
or claims related to the National Labor Relations Act, any controversy relating
to this Agreement or Employee’s employment shall be settled by binding
arbitration according to the American Arbitration Association’s Employment
Arbitration Rules and Mediation Procedures (available at http://www.adr.org) and
subject to the Federal Arbitration Act and the Federal Rules of Civil Procedure
(including their mandatory and permission rights to discovery.)  This
provision to arbitrate applies to both Company and Executive.  Such
arbitration shall be presided over by a single arbitrator in
Delaware.  Such binding arbitration is applicable to any and all
claims under state and federal employment related statutes including, without
limitation, the Fair Employment and Housing Act, the Age Discrimination in
Employment Act, the Family Medical Leave Act, the Title VII of the Civil Rights
Act and any similar statute law or regulation of the state of Kentucky, as well
as any claims related to a claimed breach of this Agreement.  The
Company shall bear all costs uniquely associated with the arbitration process,
including the arbitrator’s fees where required by law.  The arbitrator
shall have the authority to award any damages authorized by law, including,
without limitation, costs and attorneys’ fees.  The Parties agree to
execute all documents necessary to keep the documents, findings, and award, if
any, of the arbitration confidential, including, without limitation, execution
of a protective order.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (d)           Amendment. This
Agreement may be amended only by a writing signed by Executive and by a duly
authorized representative of the Company (other than Executive) as approved by
the Board.

     

    (e)           Severability. If any
term, provision, covenant or condition of this Agreement, or the application
thereof to any person, place or circumstance, shall be held to be invalid,
unenforceable or void, the remainder of this Agreement and such term, provision,
covenant or condition as applied to other persons, places and circumstances
shall remain in full force and effect, provided however, that any such provision
found invalid, unenforceable or void shall be deemed amended only to the extent
necessary and shall preserve the intent of the parties hereto.

     

    (f)           Construction. The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this Agreement. The
language in all parts of this Agreement shall be in all cases construed
according to its fair meaning and not strictly for or against the Company or
Executive.

     

    (g)           Nonwaiver. No failure
or neglect of either party hereto in any instance to exercise any right, power
or privilege hereunder or under law shall constitute a waiver of any other
right, power or privilege or of the same right, power or privilege in any other
instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by
an officer of the Company (other than Executive) or other person duly authorized
by the Company.

     

    (h)           I.R.C.
409A.  Unless otherwise expressly provided, any payment of
compensation by Company to Executive, whether pursuant to this Agreement or
otherwise, shall be made within two and one-half months (21⁄2 months) after the
later of the end of the calendar year of the Company’s fiscal year in which
Executive’s right to such payment vests (i.e., is not subject to a “substantial
risk of forfeiture” for purposes of Code Section 409A of the Internal Revenue
Code of 1986, as amended (“Code”)).  To the extent that any severance
payments come within the definition of “involuntary severance” under Code
Section 409A, such amounts up to the lesser of two times the Executive’s annual
compensation for the year preceding the year of termination or two times the
401(a)(17) limit for the year of termination, shall be excluded from “deferred
compensation” as allowed under Code Section 409A, and shall not be subject to
the following Code Section 409A compliance requirements.  All payments
of “nonqualified deferred compensation” (within the meaning of Section 409A) are
intended to comply with the requirements of Code Section 409A, and shall be
interpreted in accordance therewith. Neither party individually or in
combination may accelerate any such deferred payment, except in compliance with
Code Section 409A, and no amount shall be paid prior to the earliest date on
which it is permitted to be paid under Code Section 409A.  In the
event that Executive is determined to be a “key employee” (as defined in Code
Section 416(i) (without regard to paragraph (5) thereof)) of Company at a time
when its stock is deemed to be publicly traded on an established securities
market, payments determined to be “nonqualified deferred compensation” payable
following termination of employment shall be made no earlier than the earlier of
(i) the last day of the sixth (6th) complete calendar month following such
termination of employment, or (ii) Executive’s death, consistent with the
provisions of Code Section 409A.  Any payment delayed by reason of the
prior sentence shall be paid out in a single lump sum at the end of such
required delay period in order to catch up to the original payment
schedule.   Notwithstanding anything herein to the contrary, no
amendment may be made to this Agreement if it would cause the Agreement or any
payment hereunder not to be in compliance with Code Section
409A.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (i)           Notices. All notices,
requests, demands, claims and other communications hereunder will be in
writing.  Any notice, request, demand, claim or other communication
hereunder will be deemed duly given as of the day such information is sent by
registered or certified mail, return receipt requested, postage prepaid, and
addressed to the intended recipient as set forth below:

     

    If to
Executive:

     

    Mr.
Edward M. Gaughan

    14605
Woodlake Trace

    Louisville,
Kentucky  40245

    Tel:       502-245-3090

    Fax:    
 502-245-0896

     

    If to
Company:

     

    Peerless
Systems Corporation,

    a
Delaware corporation

    Attn:  Mr.
William Neil

    2381
Rosecrans Avenue, Suite 400

     

    El
Segundo, CA 90245

     

    Tel:
(310) 297-3146

     

    with an
additional copy to (which copy will not constitute notice):

    

    Chairman
of Board

    2381
Rosecrans Avenue, Suite 400

    El
Segundo, CA 90245

     

    
      
         

      

      
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    Any party
may send any notice, request, demand, claim, or other communication hereunder to
the intended recipient at the address set forth above using any other means
(including personal delivery, expedited courier, messenger service, telecopy,
telex, ordinary mail, or electronic mail), but no such notice, request, demand,
claim, or other communication will be deemed to have been duly given unless and
until it is received by the intended recipient (which shall be evidenced by fax
or e-mail confirmation, or registered receipt, or declaration via a
messenger).  Any Party may change the address to which notices,
requests, demands, claims, and other communications hereunder are to be
delivered by giving the other Parties notice in the manner herein set
forth.

     

    (i)           Assistance in
Litigation. Executive shall, during and after termination of employment,
upon reasonable notice, furnish such information and proper assistance to the
Company as may reasonably be required by the Company in connection with any
litigation in which it or any of its subsidiaries or affiliates is, or may
become a party; provided, however, that such assistance following termination
shall be furnished at mutually agreeable times and for mutually agreeable
compensation.

     

    (j)           Employee
Acknowledgment. The undersigned Executive hereby acknowledges that he has
had the option to consult legal counsel in regard to this Agreement, that he has
read and understands this Agreement, that he is fully aware of its legal effect,
and that he has entered into it freely and voluntarily and based on his own
judgment and not on any representations or promises other than those contained
in this Agreement.  Further, Executive hereby agrees to abide by all
federal, state, and local laws, ordinances and regulations.

     

    (k)           Counterparts. This
Agreement may be executed in two (2) or more counterparts, each of which will be
deemed an original and all of which together will constitute one and the same
instrument.

     

    (l)           Entire Agreement.
This Agreement, previously executed Change of Control Severance Agreement and
the documents referenced herein and executed herewith contain the entire
agreement and understanding between the Parties hereto and supersede any prior
or contemporaneous written or oral agreements, representations and warranties
between them respecting the subject matter hereof.

     

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
date set forth above.

    

    
      
        
          
            
              
                	
                        Peerless
      Systems Corporation, Inc. (“Company”)

                      	 
	 
      	 
      	 
	
                        By: 

                      	
                        /s/ William R. Neil

                      	 
	
                        Name:  William
      R. Neil

                      	 
	
                        Title:
      Acting Chief Executive Officer and Chief Financial Officer

                      	 
	 
      	 
      	 
	
                        Dated:

                      	
                        December 10, 2008

                      	 
	 
      	 
      	 
	
                        Mr.
      Edward M. Gaughan (“Executive”)

                      	 
	 
      	 
      	 
	
                        Dated: 

                      	
                        Edward M. Gaughan

                      	 

              

            

          

        

      

    

    
      
         

      

      
        10Unassociated Document

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT AGREEMENT (the
“Agreement”) dated
April 28, 2010 by
and between Nu Horizons
Electronics Corp. (the “Company”) and Martin Kent (the
“Executive”).

     

    The
Company desires to employ Executive and to enter into an agreement embodying the
terms of such employment;

     

    Executive
desires to accept such employment and enter into such an agreement;

     

    In
consideration of the promises and mutual covenants herein and for other good and
valuable consideration, the parties agree as follows:

     

    1.      Term of
Employment.  Subject to the provisions of Section 9 of
this Agreement, Executive shall be employed by the Company for a period
commencing on May 3, 2010 (the “Effective Date”) and ending on the fourth
anniversary of the Effective Date (the “Initial Term”) on the terms and subject
to the conditions set forth in this Agreement. The Initial Term shall be
automatically extended for successive one-year periods (the “Additional Terms”)
unless either party provides at least ninety (90) days’ written notice of its
intent not to extend the term of the Agreement. The Initial Term and any
Additional Terms shall be referred to as the “Employment Term.” In the event of
delivery of such notice, the Agreement and Executive’s employment shall
terminate at the end of the Initial Term or Additional Term, as the case may be.
The provisions of Sections 10 of this Agreement shall survive any
termination of this Agreement or Executive’s termination of employment
hereunder.

     

    2.      Position.

     

    a.           During
the Employment Term, Executive shall serve as the Company’s President and Chief
Executive Officer.  The Executive shall report to the Company’s Board
of Directors (the “Board”) regarding the Company’s business
operations.  The Executive shall oversee and manage the affairs of the
Company’s business, and shall have overall supervision and control of the
Company’s day-to-day business activities consistent with the Company’s past
business practices.  During the Employment Term, the Executive shall
be granted such additional authority as may be required from time to time by the
Board, consistent with the Executive’s position with the Company.

     

    b.           The
Executive shall be nominated to serve as a member of the Board.  Upon
any election of the Executive to serve on the Board or the board of directors of
any of the Company’s subsidiaries or affiliates, he will serve as a director
thereof without additional compensation.

     

    c.           During
the Employment Term, Executive shall perform faithfully and loyally and to the
best of Executive’s abilities, the duties assigned to Executive
hereunder.  Executive shall use Executive’s best efforts, skills, and
abilities to promote the business and interests of the Company in a professional
manner.  During the Employment Term, Executive will devote Executive’s
full business time and best efforts to the performance of Executive’s duties
hereunder and will not engage in any other business, profession or occupation
which would conflict or interfere with the rendition of such services, either
directly or indirectly, without the prior written consent of the
Board.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    d.           Executive
shall provide services hereunder primarily from the Company’s offices in
Coventry, England until he secures the appropriate visa to work in the United
States, after which Executive shall provide services primarily from the
Company’s offices in Melville, New York.  Executive agrees to
cooperate with the Company in providing documentation that will facilitate the
issuance of a visa for this purpose.

     

    3.      Base
Salary.  During the Employment Term, the Company shall pay
Executive a base salary at the annual rate of $425,000 (the “Base Salary”),
payable in regular installments in accordance with the Company’s usual payment
practices for senior executives.

     

    4.      Bonus
Compensation.  In addition to Base Salary, Executive shall be
entitled to an incentive bonus for each fiscal year during the Employment Term,
based upon Executive’s performance relative to specified quantitative goals (the
“Quantitative Bonus”) and qualitative goals (the “Qualitative Bonus” and,
together with the Quantitative Bonus, the “Bonus”) to be mutually agreed, which
goals will be approved by the Board and the Compensation Committee of the Board
in respect of each such fiscal year. The Bonus shall be paid to Executive no
later than 30 days following the delivery to the Company by its independent
registered public accounting firm of such firm’s signed, final report with
respect to the Company’s consolidated financial statements for the applicable
completed fiscal year. In order for any Bonus to be earned and received by
Executive, Executive must be employed and in good standing on the last day of
the relevant fiscal year.

     

    a.           Quantitative Bonus:
The Quantitative Bonus, if any, will be in amount up to 70% of the Executive’s
Base Salary (i.e.
$297,500) (the “Maximum Quantitative Bonus”).  The amount of the
Quantitative Bonus will be calculated based on reaching a minimum achievement
goal (the “Minimum”), at which level Executive shall begin to have the right to
receive a portion of such Quantitative Bonus, a target achievement goal (the
“Target”), where Executive shall have the right to receive one-half of the
Maximum Quantitative Bonus, and an overachievement goal (the “Maximum”), where
Executive shall have the right to receive the maximum incentive amount of the
Maximum Quantitative Bonus. The actual incentive payment amount will be
calculated, based on actual results attained, prorated on a straight-line basis
between the Minimum and the Target, or the Target and the Maximum, as
applicable.

     

    
      	
               
      

            	
              (i)

            	
              For
      the Company’s fiscal year ending February 28, 2011 (“Fiscal 2011”), the
      Quantitative Bonus will be calculated based on the Company’s achievement
      of certain levels of consolidated pre-tax income in an amount to be
      determined, and may exclude the impact of charges for extraordinary,
      unusual, non-recurring or other items that the Compensation Committee
      determines should not be included.  The Quantitative Bonus
      payable to Employee shall be calculated, based on actual results of the
      Company in respect of Fiscal 2011, prorated on a straight-line basis
      between the Minimum and the Target, or the Target and the Maximum,
      whichever is applicable.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    b.           Qualitative Bonus:
The Qualitative Bonus, if any, shall be in an amount up to 30% of the
Executive’s Base Salary (i.e. $127,500), with a target
bonus in an amount equal to 15% of the Executive’s Base Salary (i.e. $63,750). The
Qualitative Bonus amount will be such amount as the Board and the Compensation
Committee shall determine in their sole and absolute discretion.  All
or any portion of the Qualitative Bonus may be paid in the form of stock
compensation in the sole and absolute discretion of the Board and Compensation
Committee.

     

    5.      Stock
Options:  On the business day following the date hereof, the
Board will grant to Executive options to acquire 360,000 shares of the Company’s
common stock (the “Stock Options”).  The Stock Options will have the
terms set forth below and be otherwise subject to the terms of the Company’s
2002 Key Employee Stock Incentive Plan:

     

    a.           an
exercise price equal to the closing stock price on the date of
grant;

     

    b.           a
term of 10 years from the date of grant;

     

    c.           vest
in four equal annual installments commencing on the first anniversary of the
date of grant; provided, that Executive shall not be permitted to exercise any
such vested options unless the closing stock price of the common stock shall be
no less than $5.00 per share for at least 10 consecutive trading days prior to
the date of exercise; and

     

    d.           automatically
become fully exercisable without regard to price in the event of a sale or
change of control of the Company.

     

    6.      Employee
Benefits.

     

    a.           Executive
and his spouse shall be entitled to all benefits available to other of the
senior executives and their spouses, including health, dental and other
insurance programs and 401(k) plans, if any, subject in each case to the
generally applicable terms and conditions of the plan or program in
question.  Notwithstanding the foregoing, these benefits may be
modified or eliminated at the Company’s sole discretion, at any time, without
compensation or notice to Executive.

     

    b.           Executive
shall be entitled to four weeks’ paid vacation annually.  Vacation
shall be taken at such times so as not to materially interfere with the
performance of Executive’s duties hereunder and the schedule of which shall be
as mutually agreed upon by Executive and the Company.  Executive may
not carry forward accrued unused vacation, if any, to any subsequent calendar
year.

     

    c.           During
Executive’s employment hereunder, the Company shall provide the Executive with a
monthly car allowance of $1,000.

     

    d.           The
Company shall reimburse the Executive for twelve (12) round-trip business class
airline tickets from the United Kingdom to New York during the first year
of Employment Term to be used by Executive and/or Executive’s family
members. For the purposes of this Agreement, “family members” shall mean
Executive’s spouse, parents, children and siblings, whether by blood, marriage
or adoption.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    7.      Relocation Expenses.
The Company shall reimburse Executive for living expenses actually incurred by
Executive to live on Long Island, New York before he moves into a permanent
residence on Long Island during the first year of the Employment Term in an
amount not to exceed $30,000.  The Company shall reimburse Executive
for the reasonable moving costs and expenses incurred by the Executive in
connection with the physical move to the Long Island, New York area in an
amount not to exceed $50,000.  The Company shall reimburse Executive
for legal expenses associated with the physical move to the Long Island,
New York area in an amount not to exceed $5,000.

     

    8.      Reimbursement of
Expenses.  During the Employment Term, the Executive may incur
reasonable expenses in connection with conducting and promoting the business and
affairs of the Company, including expenses for travel and similar items, subject
to reasonable limitations and restrictions set by the Company from time to
time.  The Company will reimburse the Executive for such business
expenses and any other expenses for which he has the right to reimbursement
hereunder upon the presentation by the Executive of an itemized account of such
expenditures, consistent with procedures established by the Company, together
with such bills, receipts or other documentary evidence as shall be required by
the Company for tax or accounting purposes which reimbursement shall be made at
the times provided and otherwise in accordance with the Company’s reimbursement
policy.

     

    9.      Termination.

     

    a.           Notwithstanding
anything in this Agreement to the contrary, the Company shall have the right to
terminate this Agreement at any time, with or without cause.

     

    b.           Should
the Company terminate this Agreement “for cause” or the Executive terminates
this Agreement without “good reason,” the Executive shall be paid his Base
Salary through the date of termination and shall be reimbursed for any expenses
properly incurred prior to the date of termination, but shall have no further
entitlement to compensation, benefits or other remuneration
whatsoever.  For purposes of this Agreement, “for cause” shall
mean:

     

    (1)                           Any
material breach by Executive of the terms of this Agreement or intentional
refusal by the Executive to perform his duties hereunder; or

     

    (2)                           Any
act by the Executive constituting a felony under the laws of the State of New
York or the United States, or any act which is dishonest, deceitful, or involves
moral turpitude or which results in material gain or personal enrichment at the
expense of the Company; or

     

    (3)                           Any
act by the Executive constituting a violation of the Company's harassment,
discrimination, electronic communications and code of conduct policies;
or

     

    (4)                           Any
failure or refusal by the Executive to act subject to and in accordance with the
lawful direction of the Company or its agents; or

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (5)                           Any
willful, intentional or grossly negligent act by the Executive having the effect
of injuring the reputation of the Company.

     

    c.           Should
the Company elect to terminate this Agreement without cause or the Executive
terminates this Agreement for “good reason,” provided that the Executive
executes a separation agreement and general release, the Executive shall be
entitled to receive (i) his Base Salary through the date of termination,
(ii) any earned but unused vacation, (iii) any unreimbursed expenses
properly incurred prior to the last day of work, and (iv) severance pay
equal to six months’ of the Executive’s Base Salary, which shall be payable over
such six-month period.  For purposes of this Agreement, “good reason”
shall mean (A) the failure of the Company to pay or cause to be paid
Executive’s Base Salary or Bonus when due hereunder or (B) any substantial
and sustained diminution in Executive’s authority or responsibilities from those
described in Section 2 hereof; provided that either of the events described
in clauses (A) and (B) of this Section shall constitute good reason only if
the Company fails to cure such event within 45 days after receipt from Executive
of written notice of the event which constitutes good reason; provided, further,
that “good reason” shall cease to exist for an event on the 60th day following
the later of its occurrence or Executive’s knowledge thereof, unless Executive
has given the Company written notice thereof prior to such date.

     

    d. Should
this Agreement terminate due to the Executive’s death or disability, the
Executive shall be paid his Base Salary through the date of termination and
shall be reimbursed for any expenses properly incurred prior to the date of
termination, but shall have no further entitlement to compensation, benefits or
other remuneration whatsoever. For purposes of this Agreement, “disability”
shall mean a physical or mental condition which prevents Executive from
performing the essential functions of his position with the Company, with or
without a reasonable accommodation, for more than ninety (90) consecutive
calendar days or for more than ninety (90) Business Days in any 365-day period.
For the purposes of this Agreement, a “Business Day” shall mean the days between
and including Monday to Friday and do not include public holidays and
week-ends.

     

    e. Should
the Executive elect to terminate this Agreement without “good reason,” Executive
agrees that he shall give the Company three (3) months’ notice of his intent to
terminate his employment (the “Notice Period”). During the Notice Period, the
Executive will continue to be entitled to receive his Base Salary (but not any
performance bonus), his fiduciary duties and his obligations to the Company will
continue, and Executive shall cooperate in the transition of his
responsibilities. The Company shall have the right, in its sole discretion, to
direct that the Executive no longer come into the office during the Notice
Period.

     

    f.           If
the Executive’s employment is terminated by the Company other than “for cause”
on or before the first anniversary of the Effective Date, in addition to any
other amounts payable pursuant to this Section 9, the Company shall
reimburse the Executive for expenses actually incurred by him in an amount not
to exceed $50,000 in connection with his physical relocation to the United
Kingdom, together with real estate commissions and legal expenses actually
incurred by the Executive in connection with the sale of his Long Island home in
an amount not to exceed $50,000.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    g.           Upon
termination of Executive’s employment for any reason, Executive shall resign, as
of the date of such termination and to the extent applicable, from the Board
(and any committees thereof) and the Board of Directors (and any committees
thereof) of any of the Company’s affiliates.

     

    10. Restrictive
Covenants.

     

    a.           Confidential
Information.  During and after the Employment Term, Executive
shall not, directly or indirectly in one or a series of transactions, disclose
to any person, or use or otherwise exploit for his own benefit or for the
benefit of anyone other than the Company, any Confidential Information of the
Company (as hereinafter defined), whether or not reduced to writing or physical
embodiment and whether prepared by Executive or not.  Confidential
Information may be disclosed in good faith by Executive in connection with the
performance of his duties under this Agreement.  Executive shall have
no obligation hereunder to keep any Confidential Information confidential if and
to the extent disclosure of any thereof is specifically required by law;
provided, however, that in the event disclosure is required by law, Executive
shall provide the Company with prompt notice of such requirement, prior to
making the disclosure, so that the Company may seek an appropriate protective
order.  The terms of this Section 10 shall survive the termination of
Executive’s employment with the Company, regardless of who terminates the
Agreement, or the reasons therefor.  At the conclusion of Executive’s
employment with the Company, for any reason, Executive shall immediately return
and deliver to the Company any and all computers, hard drives, papers, books,
records, documents, memoranda, manuals, e-mail, electronic or magnetic
recordings or data, including all copies thereof, laptops, pagers, personal
digital assistants, cell phones, corporate credit cards, keys, and/or access
cards, and any other property  belonging to the Company or any
affiliate, containing Confidential Information, or relating to the Company or
any affiliate’s business, which are in Executive’s possession, whether prepared
by Executive or others.  If at any time after termination of
Executive’s employment with the Company, for any reason, Executive determines
that Executive has any Confidential Information in Executive’s possession or
control, Executive shall immediately return to the Company all such Confidential
Information in Executive’s possession or control, including all copies and
portions thereof.  For purposes of this Agreement, “Confidential
Information” means information, regardless of form or characteristic, which: (a)
the Company does not make available to the public, industry, or third parties;
and (b) relates to the Company’s business operations, products, processes,
business plans, purchasing, marketing, clients, suppliers, or service
providers.  “Confidential Information” includes, but is not limited to
the following: financial information and data; cost, margin and profit
information and data; business plans; customer lists; research; development
plans and strategies; new product ideas; sales and marketing plans and
strategies; price information and policies; and any confidential information
that has been entrusted to the Company by another person or entity under an
obligation of confidentiality.

     

    b.           Non-Competition.  While
actually employed and for a period of twelve (12) months following the
termination of employment (the “Restricted Period”), Executive shall not engage
in any Competitive Activity

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    c.           Non-Solicitation of
Executives.  During the Employment Term and the Restricted
Period, Executive shall not, directly or
indirectly:  (1) solicit, induce, or attempt to influence, any
employee of the Company, its subsidiaries or affiliates to terminate their
employment with the Company, its subsidiaries or affiliates; or
(2) solicit, hire or retain as an employee or independent contractor, or
assist any third party in the solicitation, hiring, or retention as an employee
or independent contractor, any person who during the previous 12 months was
an employee of the Company, or any of its subsidiaries or
affiliates.

     

    d.           Non-Solicitation of Clients
or Potential Clients.  During the Employment Term and the
Restricted Period, Executive shall not, directly or indirectly, solicit any
Client or Potential Client of the Company, its subsidiaries or affiliates with
whom Executive had contact or a relationship, directly or indirectly, during and
within the scope of his employment with the Company or any of its subsidiaries
or affiliates, for the purpose or with the intent of encouraging or inducing
such Client or Potential Client to curtail, limit, or cancel their business with
the Company, its subsidiaries or affiliates.

     

    e.           Acknowledgement.  Executive
acknowledges and agrees that the time periods referred to in the paragraphs
above are reasonable and valid in duration and scope and in all other
respects.  Executive also represents that Executive’s financial
resources, experience and capabilities are such that the enforcement of the
foregoing covenants will not prevent Executive from earning a livelihood, and
acknowledges that it would cause the Company serious and irreparable injury and
cost if Executive were to use his ability and knowledge in competition with the
Company or to otherwise breach the obligations contained in this
Agreement.  If the scope of any of the restrictions set forth above
are deemed by any arbitration panel, court or other tribunal to be too broad to
permit enforcement of such restriction to its full extent, then such restriction
shall be enforced to the maximum extent permitted by law, and Executive hereby
consents and agree that such scope may be judicially modified accordingly in any
proceeding brought to enforce such restriction.

     

    f.           Liquidated
Damages.  The parties hereto agree that the damages that may be
suffered by the Company as a result of any violations of Section 10 would be
extremely difficult to ascertain.  Accordingly, the Executive and the
Company agree that in the event of an actual breach by Executive of
Section 10, the Company shall be entitled to preliminary and permanent
injunctions enjoining Executive from violating such provisions and Executive
shall pay to the Company, as liquidated damages, and not as a penalty, an amount
equal to 100% of Executive Revenues during the twelve month period immediately
preceding the termination of Executive’s employment with the Company
(“Liquidated Damages’).  The Executive shall also be required to pay
the Company an amount equal to the excess, if any of (A) the amount of
commissions earned by the Executive and the Executive’s new employer as a direct
or indirect result of the Executive’s efforts during the Restricted Period, over
(B) the Liquidated Damages.  The parties further agree that in
the event of a threatened breach by the Executive of Section 10, the
Company shall be entitled to preliminary and permanent injunctions enjoining
Executive from violating such provisions.  In the event the liquidated
damages provision of this Section 10 is determined to be void or otherwise
inapplicable or unenforceable, the Company shall have the right to avail itself
of any and all other remedies without limitation.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    g.           Definitions.
 

    (i)  “Competitive
Activity” means that Executive, whether acting alone or in conjunction with
others, directly or indirectly (x) Renders services for any organization or
engages (either as owner, investor, partner, stockholder, employer, employee,
consultant, advisor, or director) directly or indirectly, in any business which
is or becomes competitive with the business of the Company, its subsidiaries or
affiliates; or (y) Induces any customer or Client of the Company, its
subsidiaries or affiliates with whom Executive had contacts or relationships,
directly or indirectly, during and within the scope of his employment with the
Company or any of its subsidiaries or affiliates, to curtail, limit, or cancel
their business with the Company, its subsidiaries or
affiliates.  Executive reserves the right to seek clarification
regarding whether activity falls within the scope of “Competitive Activity,” as
defined herein, by submitting a written request for clarification to the Board
and General Counsel.  The Board and General Counsel shall determine
whether such activity is prohibited under this provision of the Agreement and
provide a written response within a reasonable period of time which shall not
exceed thirty (30) days. Notwithstanding the foregoing, Competitive
Activity shall not mean the purchase of stock or other securities of an
organization or business so long as it is listed upon a recognized securities
exchange or traded over-the-counter and such investment does not represent a
greater than five percent equity interest in the organization or
business.

     

    (ii)  “Client”
means a person or entity to or from which the Company purchased products or to
or for which the Company otherwise performed work or provided services during
the two-year period prior to the termination of Executive's employment; and
“Potential Client” means a person or entity the Company solicited, contacted or
submitted a proposal for the purchase or sale of products, performance of work
or services during said two year period.

     

    11. Representations and
Warranties.  The Executive represents and warrants to the
Company that he is not bound by any agreement or any other existing or previous
obligation or business relationship which conflicts with, or may conflict with,
or which will or could prevent the full performance of Executive's duties and
obligation hereunder, Executive's acceptance of employment with the Company will
not cause Executive to be in breach of any employment or other agreement. In
addition, Executive agrees to follow Executive's policies and procedures
contained in the Company's Code of Business Conduct and Ethics, which Code may
be amended from time to time. In the event of any conflict between the terms of
this Agreement and the Code, the terms of this Agreement shall be
controlling.

     

    12. Miscellaneous.

     

    a.           Governing Law; Consent to
Jurisdiction.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York,
irrespective of any conflict of law principles.  Executive consents to
the jurisdiction of the state courts of and federal courts located in the State
of New York for the enforcement of the obligations evidenced by this
Agreement and expressly waives any defense based upon venue or forum non
conveniens.

     

    b.           Entire
Agreement/Amendments.  This Agreement contains the entire
understanding of the parties with respect to the employment of Executive by the
Company.  There are no restrictions, agreements, promises, warranties,
covenants or undertakings between the parties with respect to the subject matter
herein other than those expressly set forth herein.  This Agreement
may not be altered, modified, or amended except by written instrument signed by
the parties hereto.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    c.           No
Waiver.  The failure of a party to insist upon strict adherence
to any term of this Agreement on any occasion shall not be considered a waiver
of such party’s rights or deprive such party of the right thereafter to insist
upon strict adherence to that term or any other term of this
Agreement.

     

    d.           Severability.  In
the event that any one or more of the provisions of this Agreement shall be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions of this Agreement shall not be
affected thereby.

     

    e.           Assignment.  This
Agreement, and all of Executive’s rights and duties hereunder, shall not be
assignable or delegable by Executive.  Any purported assignment or
delegation by Executive in violation of the foregoing shall be null and void
ab initio and of no
force and effect.  This Agreement may be assigned by the Company to a
person or entity which is an affiliate or a successor in interest to
substantially all of the business operations of the Company.  Upon
such assignment, the rights and obligations of the Company hereunder shall
become the rights and obligations of such affiliate or successor person or
entity.

     

    f.           Set
Off.  The Company’s obligation to pay Executive the amounts due
hereunder shall be subject to set-off, counterclaim or recoupment of amounts
owed by Executive to the Company or its affiliates.

     

    g.           Compliance with IRC Section
409A.  Notwithstanding anything herein to the contrary,
(i) if at the time of Executive’s termination of employment with the
Company Executive is a “specified employee” as defined in Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) and the deferral of
the commencement of any payments or benefits otherwise payable hereunder as a
result of such termination of employment is necessary in order to prevent any
accelerated or additional tax under Section 409A of the Code, then the
Company will defer the commencement of the payment of any such payments or
benefits hereunder (without any reduction in such payments or benefits
ultimately paid or provided to Executive) until the date that is six months
following Executive’s termination of employment with the Company (or the
earliest date as is permitted under Section 409A of the Code) and (ii) if
any other payments of money or other benefits due to Executive hereunder could
cause the application of an accelerated or additional tax under
Section 409A of the Code, such payments or other benefits shall be deferred
if deferral will make such payment or other benefits compliant under
Section 409A of the Code, or otherwise such payment or other benefits shall
be restructured, to the extent possible, in a manner, determined by the Board,
that does not cause such an accelerated or additional tax.

     

    h.           Successors; Binding
Agreement.  This Agreement shall inure to the benefit of and be
binding upon personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.

     

    i.           Notice.  For
the purpose of this Agreement, notices and all other communications provided for
in the Agreement shall be in writing and shall be deemed to have been duly given
when delivered by hand or overnight courier or three days after it has been
mailed by United States registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below in this
Agreement, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    If to the
Company:

     

    Nu
Horizons Electronics Corp.

    70 Maxess
Road,

    Melville,
New York 11747

    Attn:
Richard Schuster

    Facsimile:
(631) 396- 5060

    

    with a
copy to:

     

    Nancy D.
Lieberman, Esq.

    Farrell
Fritz, PC

    1320
RexCorp Plaza

    Uniondale,
NY  11556

    Facsimile:  (516)
227-0777

    

    If to
Executive:

     

    To the
most recent address of Executive set forth in the personnel records of the
Company.

     

    j.           Prior
Agreements  This Agreement supersedes all prior agreements and
understandings (including verbal agreements) between Executive and the Company
and/or its affiliates regarding the terms and conditions of Executive’s
employment with the Company and/or its affiliates.

     

    k.           Cooperation.  Executive
shall provide Executive’s reasonable cooperation in connection with any action
or proceeding (or any appeal from any action or proceeding) which relates to
events occurring during Executive’s employment hereunder.  This
provision shall survive any termination of this Agreement.

     

    l.           Withholding
Taxes.  The Company may withhold from any amounts payable under
this Agreement such Federal, state and local taxes as may be required to be
withheld pursuant to any applicable law or regulation.

     

    m.           Counterparts.  This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
day and year first above written.

     

    
      
        
          	
                  Nu
      Horizons Electronics Corp.

                	 
      	
                  Martin
      Kent

                
	 
      	 
      	 
      
	
                  By:

                	
                  /s/ Richard Schuster

                	 
      	
                  /s/ Martin Kent

                
	
                  Name:

                	
                     Richard
      Schuster

                	 
      	 
      
	
                  Title:

                	
                   
       Interim President

                	 
      	 
      
	 
      	
                   
       Senior Executive Vice President

                	 
      	 
      
	 
      	
                    
      and Chief Operating Officer

                	 
      	 
      

        

      

    

     

    
      
         

      

      
        11

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