<PAGE>
                                                                    EXHIBIT 10.3

                        ACCRUED SALARY PAYMENT AGREEMENT

          THIS ACCRUED SALARY PAYMENT AGREEMENT (this "Agreement") is effective
as of 21 December 2005, by and between ELCOM INTERNATIONAL, INC., a Delaware
corporation (the "Company") and ROBERT J. CROWELL, its Chairman and Chief
Executive Officer, the ("Executive").

                                    RECITALS:

          A. WHEREAS, over the past several years, the Executive has reduced the
payment of certain portions of his Base Salary, on a voluntary and temporary
basis, which amount continues to be owed to him by the Company and accrued for
in its accounts.

          B. WHEREAS, the Company is in the process of completing a private
placement of shares to be listed on the AIM Exchange, which shares will be
admitted to the AIM (the "Admission"), the Company and Executive desire to
establish the terms by which the Company shall pay Executive his Accrued Salary
Amount after Admission. The Accrued Salary Amount, which will change based on
the date of Admission as defined herein, is shown on Exhibit A.

          NOW, THEREFORE, in consideration of the premises and mutual covenants
described herein, the Company and Executive agree as follows:

1.   Payment of Accrued Salary Amount.

     1.1  The Company shall only begin to pay Executive the "Accrued Salary
          Amount" (as defined below) on the terms set forth in this Agreement
          upon the Company achieving after the date of this Agreement two
          sequential quarterly periods of positive operating cash flow,
          (excluding for the avoidance of doubt cash inflows from financing).
          For purposes of this Agreement, Accrued Salary Amount shall mean all
          amounts of Base Salary temporarily reduced voluntarily by Executive to
          assist the Company's cash availability.

     1.2  The Company shall pay the Accrued Salary Amount in installments (each,
          an "Accrued Salary Payment"), each less applicable payroll taxes,
          withholdings and deductions. The Board, in its sole discretion, shall
          determine the specific amount of any such Accrued Salary Payment;
          provided, however, that the aggregate amount of each installment of
          the Accrued Salary Payment payable by the Company in any one calendar
          month, shall be for the determination of the Board, dependent upon the
          extent of the Company's positive operating cash flow and the Company's
          other financial commitments as shown by the Company's latest monthly
          accounts. Provided always that where an Accrued Salary Payment has
          become payable, it shall be no more than the remaining unpaid balance
          of the Accrued Salary Amount but subject to that no less than
          twenty-five percent (25%)

<PAGE>

          and no greater than fifty percent (50%) of the Company's positive
          operating cash flow for the month immediately prior thereto.

     1.3  If, having achieved two sequential quarterly periods of positive
          operating cash flow it is determined by the Board that in any
          subsequent month(s) the Company did not achieve positive operating
          cash flow, the Company shall immediately discontinue payment of the
          remaining Accrued Salary Amount until the Company achieves its next
          monthly period where it has positive cash flow to which clause 1.2
          will then apply accordingly.

     1.4  In the event the Company experiences a fresh cash infusion of more
          than $500,000 in any particular month (a "Cash Infusion Event"), such
          as by the sale of a large software license, receipt of loan proceeds,
          advance or issue of securities, or other cash infusion event, the
          Board, taking into consideration the cash requirements of the Company,
          may elect to pay the Executive an Accrued Salary Payment of an amount
          equal to a maximum of 10% of the cash received in the Cash Infusion
          Event.

     1.5  The Executive shall not himself vote on any resolution of the Board
          regarding any decision or determination that the Board is entitled to
          make under this Agreement.

2.   Miscellaneous.

     2.1  Interpretation. All questions of interpretation, construction or
          application arising under this Agreement will be decided solely by the
          Board of Directors of the Company.

     2.2  Severability. In the event that any provision or term of this
          Agreement is determined by any judicial, quasi-judicial or
          administrative body to be void or not enforceable for any reason, it
          is the agreed upon intent of the parties hereto that all other
          provisions or terms of the Agreement will remain in full force and
          effect and that the Agreement will be enforceable as if such void or
          unenforceable provision or term had never been a part hereof.

     2.3  Change of Control. If, subsequent to Admission, more than fifty
          percent (50%) of the issued shares in the capital of the Company is
          acquired by one or more persons acting together (a "Change of
          Control"), then the amount (if any) of the outstanding Accrued Salary
          Amount together with accrued interest on the same (if any) shall be
          paid to the Executive in full, in a lump sum payment, as an integral
          part of the Change of Control arrangement or agreement itself. For the
          avoidance of doubt a Change of Control shall not be triggered where
          shares in the capital of the Company are transferred as between the
          Smith & Williamson Group (as defined below). For purposes of this
          Agreement, Smith & Williamson Group means Smith & Williamson
          Investment Management Limited ("SWIM"), its subsidiaries and
          subsidiary undertakings and any holding company or parent


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<PAGE>

          undertaking of SWIM and all other subsidiaries and subsidiary
          undertakings of any holding company or parent undertaking of SWIM.

     2.4  No Rights In Any Property of the Company. The undertakings of the
          Company herein constitute merely the unsecured promise of the Company
          to make the payments as provided for herein. No property of the
          Company is or will, by reason of this Agreement, be held in trust for
          Executive, nor any other person will have by reason of this Agreement
          any rights, title or interest of any kind in or to any property of the
          Company.

     2.5  Death or Other Termination. In the event the Executive's employment
          terminates with the Company under any circumstances, this Agreement
          will remain in effect and the Company will pay, as per the conditions
          set forth herein, the Accrued Salary Amount directly to Executive or,
          in the event of his death, to his estate.

     2.6  Conflict. In the event of a conflict between the terms and conditions
          of this Agreement and the terms and conditions of the Employment
          Agreement, the terms and conditions of this Agreement shall control.

     2.7  Counterparts. This Agreement may be executed in multiple counterparts,
          each of which will be deemed an original and all of which will
          constitute one and the same document.

     2.8  Governing Law. This Agreement is executed in and will be construed in
          accordance with and governed by the laws of the State of
          Massachusetts, County of Norfolk, without giving effect to the
          conflict of laws provisions thereof.

                            [Signature Page Follows]


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<PAGE>

     IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of
the day and year first above written.

                                        ELCOM INTERNATIONAL, INC.


                                        By: /s/ John E. Halnen
                                            ------------------------------------
                                        Name: John E. Halnen
                                        Title: President


                                        /s/ Robert J. Crowell
                                        ----------------------------------------
                                        ROBERT J. CROWELL
                                        Title: Executive


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<PAGE>

                                    EXHIBIT A

CONFIDENTIAL
SALARY ACCRUED AS OF 11/12/05
ROBERT CROWELL
ACCRUED SALARY

<TABLE>
<CAPTION>
     A               B                   C
  Pre-AIM         Accrued          2005 Accrued
  April-04    Remainder 2004   to 12 November 2005(1)
-----------   --------------   ----------------------
<S>           <C>              <C>
$327,447.00     $105,000.00          $315,000.00
</TABLE>

Note 1: This amount will change depending upon the date of Admission.


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