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                                                                    Exhibit 10.5

                            EQUIPMENT AND COMMERCIAL
                       REVOLVING LINE OF CREDIT AGREEMENT

     This Equipment and Commercial Revolving Line of Credit Agreement (the
"Agreement") is dated as of September 30, 2001 and entered into by and between
HITTITE MICROWAVE CORPORATION, a Delaware corporation with a principal place of
business at 12 Elizabeth Drive, Chelmsford, Massachusetts 01824 (the "BORROWER")
and CITIZENS BANK OF MASSACHUSETTS, successor by merger to USTrust (together
with its successors and assigns the "Bank"), a Massachusetts bank with a
principal place of business at 28 State Street, Boston, Massachusetts 02109.

     WHEREAS, on July 18, 1997, USTrust extended to the Borrower a revolving
line of credit facility in the amount of One Million ($1,000,000.00) Dollars as
set forth in a Credit Agreement dated July 18, 1997, which agreement has been
amended on various occasions, most recently by a Fourth Amendment to Credit
Agreement and Ratification of Loan Documents - Revolving Line dated February 26,
2001;

     WHEREAS, on October 28, 1998, USTrust extended to the Borrower an equipment
line of credit in the amount of Seven Hundred Fifty Thousand and 00/100 Dollars
($750,000.00) for the purchase of equipment as set forth in a Credit Agreement
dated October 28, 1998, which agreement has been amended on various occasions,
most recently by a Fifth Amendment to Credit Agreement and Ratification of Loan
Documents dated August 1, 2001;

     WHEREAS, the Borrower has requested that the Bank increase the revolving
line of credit to Four Million ($4,000,000.00) Dollars; (ii) extend the Maturity
Date of the revolving line of credit to May 31, 2003, and (iii) extend the
Conversion Date of the $4,000,000.00 Equipment Line of Credit from September 30,
2001 to May 31, 2002, and subject to the terms and conditions hereof, the Bank
has agreed, and, in connection with the foregoing, the parties have agreed to
consolidate the foregoing agreements into one credit agreement and re-document
the related agreements and promissory notes;

     NOW THEREFORE, the parties hereto hereby agree as follows:

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01.    DEFINED TERMS. As used in this Agreement, the following
terms have the following meanings (terms defined in the singular to have the
same meaning when used in the plural and vice versa):

     "AFFILIATE" or "AFFILIATES" means a person or entity which is a parent,
subsidiary or brother/sister corporation of or a person or entity who or which
owns or holds a significant ownership interest in or in which a significant
ownership interest is owned or held by, the Borrower, or is, directly or
indirectly, controlled by, or is under common control with, the Borrower.

     "CAPITAL LEASES" means capital leases, conditional sales contracts and
other title retention agreements relating to the purchase or acquisition of
capital assets.

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     "COLLATERAL" means all property which is subject or is to be subject to the
Liens granted by the Loan Documents.

     "COMMITMENT" means the Bank's obligation to make Loans to the Borrower
pursuant to Sections 2.011 and 2.012 in the amount referred to therein.

     "COST OF FUNDS RATE" means the per annum rate of interest for the term
selected by the Borrower which Lender is presumed to pay or is offering to pay,
for wholesale liabilities, adjusted for reserve requirements and such other
requirements as may be imposed by federal, state or local government and
regulatory agencies as determined and announced by Citizens Financial Group or
its successors.

     "DEFAULT" means any of the events specified in Section 8.01, whether or not
any requirement for the giving of notice, the lapse of time, or both, or any
other condition, has been satisfied.

     "DIVIDENDS" means, for the applicable period, the aggregate of all amounts
paid or payable (without duplication) as dividends, distributions or other owner
withdrawals with respect to Borrower's shares of stock, whether now or hereafter
outstanding and includes any purchase, redemption or other retirement of any
shares of the Borrower's stock, directly or indirectly through a Subsidiary of
the Borrower or otherwise and includes return of capital by the Borrower to its
shareholders.

     "EQUIPMENT CREDIT" shall have the meaning assigned to such term in Section
2.012.

     "EVENT OF DEFAULT" means any of the events specified in Section 8.01,
provided that any requirement for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.

     "GAAP" or "Generally Accepted Accounting Principles" shall mean generally
accepted accounting principles as defined by controlling pronouncements of the
Financial Accounting Standards Board, as amended or supplemented from time to
time.

     "INDEBTEDNESS" means, as to any Person, all obligations, contingent or
otherwise, that in accordance with GAAP should be classified as liabilities upon
such Person's balance sheet or to which reference should be made by footnotes
thereto, but in any event including (1) indebtedness or liability for borrowed
money or for the deferred purchase price of property or services (including
trade obligations); (2) obligations as lessee under any Capital Leases, as such
term is defined by the Financial Accounting Standards Board; (3) current
liabilities in respect of unfunded vested benefits under any Plan as defined in
the Employee Retirement Income Security Act of 1974; (4) obligations under
letters of credit issued for the account of any Person; (5) all guaranties,
endorsements (other than for collection or deposit in the ordinary course of
business), and other contingent obligations to purchase, to provide funds for
payment, to supply funds to invest in any Person, or otherwise to assure a
creditor against loss; and (6) obligations secured by any Lien on property owned
by the Person, whether or not the obligations have been assumed.

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     "LIEN" means any mortgage, deed of trust, pledge, security interest,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
other), or preference, priority, or other security agreement or preferential
arrangement, charge, or encumbrance of any land or nature whatsoever (including,
without limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the Uniform
Commercial Code or comparable law of any jurisdiction to evidence any of the
foregoing).

     "LOAN OR LOANS" shall have the meaning assigned to such term in Section
2.011 and 2.012.

     "LOAN DOCUMENTS" means this Agreement, the Revolving Credit Note, the
Master Equipment Promissory Note, the Equipment Installment. Note(s), the
Security Agreement, the UCC Financing Statement(s) and all other related
documents and instruments executed and delivered by Borrower to the Bank and all
of even date herewith, and all extensions and modifications thereof, and all
amendments and supplements thereto.

     "NOTES" shall mean the Revolving Credit Note, the Master Equipment
Promissory Note and the Equipment Installment Notes, as defined in Sections
2.011 and 2.012.

     "OBLIGATIONS" means all the Borrower's Indebtedness to the Bank and all of
the Borrower's other liabilities to the Bank of every kind, nature and
description, direct or indirect, secured or unsecured, joint, several, joint and
several, absolute or contingent, due or to become due, now existing or hereafter
arising, regardless of how such Indebtedness or liability arises or by what
agreement or instrument it may be evidenced, or whether evidenced by any
agreement or instrument, including, but not limited, to the Loans, any other
Indebtedness or liability of the Borrower under this Agreement or any other Loan
Document or under any other financing agreement between the Bank and the
Borrower, including the obligation to reimburse the Bank for any draws under
letters of credit issued or to be issued for the account of the Borrower, and
all amounts owing by the Borrower to the Bank by reason of purchases made by the
Borrower and financed by the Bank which amounts, whether or not matured and
whether or not disputed, may be charged to the Borrower's account hereunder,
with or without prior notice to the Borrower, and all obligations of the
Borrower to the Bank to perform acts or refrain from taking any action. Without
limiting the generality of the foregoing, the term "Obligations" shall include
all obligations evidenced by the Notes and by a promissory note dated March 5,
2001 in the original principal amount of $1,047,665.00; a promissory note dated
October 2, 2000 in the original principal amount of $952,335.00; a promissory
note dated May 18, 2000 in the original principal amount of $ 406,677.00; a
promissory note dated January 12, 2000 in the original principal amount of
$320,147.00; a promissory note dated June 29, 1999 in the original principal
amount of $554,000.00; a promissory note dated December 16, 1998 in the original
principal amount of $257,455.00; a promissory note dated October 28, 1998 in the
original principal amount of $740,722.49; and a promissory note dated October
28, 1998 in the original principal amount of $211,715.00. "Other Bank Documents"
shall have the meaning assigned to such term in Section 8.01.

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     "PERSON" means an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
governmental authority, or other entity of whatever nature.

     "PRIME RATE" shall mean the rate of interest announced by Bank from time
to time as the Citizens Bank Prime Rate, it being understood that such rate
is a reference rate and not necessarily the lowest fate of interest charged
by the Bank. The rate of interest payable hereunder shall be changed
effective as of that day on which a change in the Prime Rate becomes
effective. In the event the Bank ceases to publish a Prime Rate, then the
term Prime Rate shall mean the Bank's prime rate or then announced base rate,
which in each case most closely approximates the Prime Rate. Interest will be
computed on the basis of a 360-day year for the actual number of days elapsed.

     "REVOLVING CREDIT" shall have the meaning assigned to such term in Section
2.011.

     "REVOLVING CREDIT NOTE" shall have the meaning assigned to such term in
Section 2.012.

     "REVOLVING PERIOD" shall have the meaning assigned to such term in
Section 2.03.

     "SECURITY AGREEMENT" shall have the meaning assigned to such term in
Section 3.01.

     "SUBORDINATED DEBT" means all indebtedness of the Borrower to
shareholders of the Borrower which has been subordinated to the Obligations
by subordination agreements prepared by or otherwise approved by the Bank in
writing.

     "SUBSIDIARY" or "SUBSIDIARIES" means, as to any Person, a corporation of
which shares of stock having ordinary voting power (other than stock having such
power only by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation are at the time
owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person.

     "TANGIBLE NET WORTH" means the excess of total assets over total
liabilities, total assets and total liabilities each to be determined in
accordance with Generally Accepted Accounting Principles consistent with those
applied in the preparation of the financial statements referred to in Sections
5.08(1) and (2) excluding, however, from the determination of total assets all
assets which would be classified as intangible assets under generally accepted
accounting principles, including, without limitation, goodwill, patents,
trademarks, trade names, copyrights, franchises, and intangibles, and excluding
the value of leasehold improvements and other leasehold assets.

     "TERMINATION DATE" in the case of the Revolving Credit means May 31, 2003,
unless extended as provided hereafter. The Bank may extend the term of the
Revolving Credit for periods of one year, commencing on June 1, 2003 and on the
same day of each year thereafter. It shall, however, be in the sole discretion
of the Bank as to whether to grant any such extension and the failure of the
Bank to do so shall be based solely on such reasons as the Bank deems proper.

     "TOTAL LIABILITIES" means total Indebtedness determined in accordance with
Generally Accepted Accounting Principles (GAAP).

     SECTION 1.02.    ACCOUNTING TERMS. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP consistent with that
applied in the

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preparation of the financial statements referred to in Section 4.04, and all
financial data submitted pursuant to this Agreement shall be prepared in
accordance with such principles, except interim financial data may be subject to
year-end adjustments.

                                   ARTICLE II
                          AMOUNT AND TERMS OF THE LOANS

     SECTION 2.011.   REVOLVING CREDIT. The Bank shall, from time to time,
prior to the Termination Date, make loans to the Borrower under and pursuant to
the terms of the Revolving Credit Note of even date (the "Revolving Credit
Note"), as it may be extended or renewed, substituted or replaced, in an
aggregate amount not to exceed Four Million ($4,000,000.00) Dollars (the
"Revolving Credit"). The loans made pursuant to this section and Section 2.012
shall be known as the "Loan" or "Loans", as the context requires or permits.

     SECTION 2.012.   EQUIPMENT CREDIT. The Bank shall, from time to time, prior
to May 31, 2002 (the "Conversion Date"), make equipment loans to the Borrower
("Equipment Credit") in an aggregate amount not to exceed Four Million
($4,000,000.00) Dollars, with the Equipment Credit evidenced by a Master
Equipment Promissory Note. Each advance under the Equipment Credit shall reduce
the availability under the Master Equipment Promissory Note. Not later than the
Conversion Date (or earlier, for all or any portion of outstanding advances, at
the Borrower's election), the remaining outstanding balance of the Master
Equipment Promissory Note shall termed out for a period of not more than Sixty
(60) months, said term to be selected by the Borrower. Advances which are termed
out shall be evidenced by a separate commercial promissory note (each an
"Equipment Installment Note" and collectively the "Equipment Installment Notes")
in a form substantially identical to Exhibit A-1. Amounts borrowed prior to the
Conversion Date which have not been termed out prior to the Conversion Date and
which have been repaid prior to the Conversion Date shall be available for
reborrowing up to the Conversion Date, but not thereafter.

     The Borrower shall be entitled to borrow up to 80% percent of the retail
invoice cost of new equipment purchased with the Loans pursuant to the Equipment
Credit, with the Bank to have a first lien on all such equipment.

     SECTION 2.02.    NOTICE AND MANNER OF BORROWING. The Borrower shall give
the Bank notice prior to 12:00 p.m. with respect to the Revolving Credit and
with respect to the Equipment Credit two (2) Business Days written notice either
in accordance with the terms hereof or via facsimile (effective upon receipt) of
a request for any Loan.

     SECTION 2.03.    INTEREST.

          (a)    The Borrower shall pay interest to the Bank on the outstanding
and unpaid principal amount of the Loans made under the Revolving Credit, at a
floating rate per annum equal to the aggregate of (i) Prime Rate minus (ii) one
half (0.50 %) Percent. Any principal amount not paid when due (at maturity, by
acceleration, or otherwise) shall bear interest thereafter until paid at a rate
equal to four (4%) percentage points greater than the rate which would otherwise
be applicable (the "DEFAULT RATE").

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          (b)    The Borrower shall pay interest only for advances made under
the Equipment Credit for the period prior to the Conversion Date, or, at such
earlier time as the Borrower elects, if Borrower elects to term out all or a
portion of the advances under the Equipment Credit prior to the Conversion Date.
Effective on the Conversion Date, or earlier, for such portions of the Equipment
Credit as the Borrower elects to term out earlier, the outstanding balance shall
be repaid over up to sixty (60) months, at an interest rate, at the election of
the Borrower, of either (1) a floating rate of interest equal to the Prime Rate
in effect from time to time (the "Prime Rate Option"); or (ii) a fixed rate for
the term of the Equipment Installment Note equal to the aggregate of (i) the
Bank's Cost of Funds Rate plus (ii) 200 basis points (the "COST OF FUNDS
OPTION").

     After acceleration or maturity, interest shall accrue and be payable at a
rate of interest equal to four (4%) percent higher than would otherwise be in
effect for each and all of the Notes. Interest shall be calculated on a 360 day
year for the actual days elapsed.

     SECTION 2.04.    BORROWING BASE.  The term "Borrowing Base" as used herein
shall mean the aggregate of:

               (i)    Eighty (80%) percent of the unpaid face amount of
                      Qualified Accounts (as defined below) (the product of the
                      aforesaid calculation being the "Eligible Account
                      Availability"); and

               (ii)   the lesser of (1) Fifty (50%) percent of the lower of cost
                      or market value of all Eligible Inventory (as defined
                      below), not to exceed, in any event, $2,000,000.00; or (2)
                      Fifty (50%) of the Eligible Account Availability
                      ("Eligible Inventory Availability").

     By way of example, if Qualified Accounts are $2,000,000.00 and Eligible
Inventory is $8,000,000.00, the Borrower, would have Eligible Account
Availability of $1,600,000.00 (80% of $2,000,000.00) and Eligible Inventory
Availability of $800,000.00 (50% of $1,600,000.00) for a Borrowing Base of
$2,400,000.00.

     The aforesaid advance rates are subject to review and modification upon
determination by the Bank, after its field examination(s), that the quality of
the accounts or Eligible Inventory require, in the Bank's sole discretion,
adjustment.

     Whenever the outstanding principal balance of all loans under the Revolving
Credit exceed the Borrowing Base, Borrower shall immediately pay to Bank the
excess of the outstanding principal balance of the Revolving Credit loans over
the Borrowing Base.

     SECTION 2.05.    REVOLVING CREDIT LIMIT.  The term "Revolving Credit Limit"
as used herein shall mean an amount equal to the lesser of (i) Four Million
($4,000,000.00) Dollars or (ii) the Borrowing Base.

     SECTION 2.06.    PAYMENT. Borrower hereby authorizes and directs Bank, in
Bank's sole discretion (provided, however, Bank shall have no obligation to do
so) to charge any of Borrower's accounts under the control of Bank if the
Borrower has failed to timely pay any

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amount due hereunder or after the occurrence of an Event of Default or demand.
Bank shall promptly notify Borrower of any such charges or applications.

     SECTION 2.07.    PREPAYMENTS. The Borrower may at anytime prepay without
premium or penalty while a variable rate of interest is in effect and shall pay
such prepayment fees as is provided in the Notes when a fixed rate is in effect.

     SECTION 2.08.    DEFINITION OF QUALIFIED ACCOUNT. The term "Qualified
Account", as used herein, means an account, as such term is defined by the
Massachusetts UCC (hereinafter an "Account") owing to Borrower which met the
following specifications at the time it came into existence and continues to
meet the same until it is collected in full:

          (a)    The Account is not more than sixty (60) days past due nor more
than ninety (90) days past invoice date;

          (b)    The Account arose from the performance of services or an
outright sale of goods by Borrower, such goods have been shipped to the account
debtor, and Borrower has possession of, or has delivered to Bank, shipping and
delivery receipts evidencing such shipment;

          (c)    The Account is not subject to any prior assignment, claim,
lien, or security interest, and Borrower will not make any further assignment
thereof or create any further security interest therein, nor permit Borrower's
rights therein to be reached by attachment, levy, garnishment or other judicial
process;

          (d)    The Account is net of set-offs, credits, allowances or
adjustments by the account debtor, and the account debtor has not disputed its
liability thereon and has not returned any of the goods from the sale of which
the Account arose;

          (e)    The Account arose in the ordinary course of Borrower's business
and did not arise from the performance of services or a sale of goods to a
supplier or employee of the Borrower;

          (f)    No notice of bankruptcy or insolvency of the account debtor has
been received by or is known to the Borrower;

          (g)    The Account is not owed by an account debtor which is a foreign
corporation or whose principal place of business is outside the United States of
America unless FCIA insured or backed by a letter of credit, except in the
Bank's sole and absolute discretion;

          (h)    The Account is not owed by an entity which is a parent,
brother/sister, subsidiary or affiliate of Borrower;

          (i)    The Account is not evidenced by a promissory note, unless such
note has been delivered to the Bank;

          (j)    The Account did not arise out of any sale made on a bill and
hold, dating or delayed shipment basis;

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          (k)    The Account is not owed by a governmental agency or entity of
any kind; or

          (l)    Bank, in accordance with its credit policies, has deemed the
Account to be otherwise unacceptable for any reason;

PROVIDED THAT if, at any time Twenty (20%) percent or more of the aggregate
amount of the Accounts due from any account debtor are more than ninety (90)
days past due or more than one hundred twenty (120) days past the invoice date,
none of the Accounts (then existing or hereafter or thereafter arising) due from
such account debtor shall be deemed to be Qualified Accounts until such time as
less than Twenty (20%) percent of the Accounts due from such account debtor are
(as a result of actual payments received thereon) more than ninety (90) days
past due more or one hundred twenty (120) days past the invoice date. Accounts
payable by Borrower to an account debtor shall be netted against Accounts due
from such account debtor and the difference (if positive) shall constitute
Qualified Accounts from such account debtor for purposes of determining the
Borrowing Base (notwithstanding paragraph (d) above). Characterization of any
Account due from an account debtor as a Qualified Account shall not be deemed a
determination by Bank as to its actual value nor in any way obligate Bank to
accept any Account subsequently arising from such account debtor to be, or to
continue to deem such Account to be, a Qualified Account. It is Borrower's
responsibility to determine the credit-worthiness of account debtors and all
risks concerning the same and collection of Accounts are with Borrower; and all
Accounts whether or not Qualified Accounts constitute Collateral.

     The Bank, in its sole discretion, may, on a case by case basis, by written
notice, waive one or more of the specifications enumerated above required of a
Qualified Account, provided however, a waiver of a specification or requirement
in one instance shall not be deemed a waiver of any other specification nor a
waiver of said specification or requirement on any other occasion.

     SECTION 2.10.    ELIGIBLE INVENTORY. The term "Eligible Inventory", as used
herein, means Borrower's raw materials and finished goods which are initially
and at all times until sold: new and unused (except, with Bank's written
approval, used equipment held for sale or lease), in first-class condition,
merchantable and saleable through normal trade channels; at a location which has
been identified in writing to Bank; subject to a perfected security interest in
favor of Bank; owned by Borrower free and clear of any lien except in favor of
Bank; not held by any distributor; not obsolete; not scrap, waste, defective
goods and the like; have been produced by Borrower in accordance with the
Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations
and orders promulgated thereunder; not stored with a bailee, warehouseman or
similar party unless Bank has given its prior written consent thereto and
Borrower has caused each such bailee, warehouseman or similar party to issue and
deliver to Bank warehouse receipts in Bank's name for such Inventory; and have
not been designated by Bank, in accordance with its normal credit policies, as
unacceptable for any reason by notice to Borrower. No work in process shall be
included in Eligible Inventory. Inventory that is being shipped overseas and is
"on the water" will be deemed Eligible Inventory provided that, prior to
shipment of such inventory, the Bank is furnished with the specifics of such
inventory and evidence that property and casualty insurance is in place for such
inventory in such form as the Bank reasonably requires and names the Bank as
loss payee.

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     SECTION 2.11.    BANK'S REPORTS. After the end of each month, Bank may
render to Borrower a statement regarding Borrower's loan account under the
Revolving Credit with Bank hereunder. Each statement and the information
contained therein shall be considered correct and to have been accepted by
Borrower and, in the absence of manifest error, shall be conclusively binding
upon Borrower in respect of all charges, debits and credits of whatsoever nature
contained therein under or pursuant to this Agreement, and the closing balance
shown therein, unless Borrower notifies Bank in writing of any discrepancy
within twenty (20) days from the mailing by Bank to Borrower of any such monthly
statement.

     SECTION 2.12.    LETTERS OF CREDIT. At the request of the Borrower, and
upon the execution of letter of credit documentation satisfactory to Bank, Bank,
within the limits of the Borrowing Base, as then computed and also within the
limits of the Revolving Credit Limit shall issue letters of credit and/or
acceptances from time to time for the account of the Borrower (hereinafter
collectively "Letter(s) of Credit"). The Letters of Credit shall be on terms
mutually acceptable to Bank and the Borrower. A loan in an amount equal to any
amount paid by Bank under a Letter of Credit shall be deemed made to Borrower,
without request therefor, immediately upon any payment by Bank on such Letter of
Credit. In connection with the issuance of any Letter of Credit, Borrower shall
pay to Bank a percentage of the face amount of any Letter of Credit according to
the fee schedule then in effect at Bank, plus transaction fees at Bank's
customary rates, and all other normal and customary fees charged by Bank.
Borrower hereby authorizes and directs Bank, in Bank's sole discretion
(provided, however, Bank shall have no obligation to do so) to pay all such fees
and costs as the same become due and payable and to treat the same as a loan to
Borrower, which shall be added to Borrower's loan balance pursuant to this
Agreement. For purposes of computing the Revolving Credit, all Letters of Credit
and one hundred (100%) percent of acceptances shall be deemed to be Loans.

                                   ARTICLE III
                              CONDITIONS PRECEDENT

     SECTION 3.01.    CONDITION PRECEDENT TO LOANS. The agreement of the Bank
(at its discretion) to make the initial Loans (and all subsequent Loans) to the
Borrower is subject to the condition precedent that the Bank shall have received
on or before the day of such Loan each of the following in form and substance
satisfactory to the Bank and its counsel:

     (1)  NOTE(S). The Note(s) executed and delivered by the Borrower;

     (2)  SECURITY AGREEMENT. A Security Agreement (All Assets) duly executed by
          the Borrower (the "Security Agreement"), together with acknowledgment
          copies of the Financing Statements (UCC-1) duly filed under the
          Uniform Commercial Code from all jurisdictions necessary or, in the
          opinion of the Bank, desirable to perfect a first priority security
          interest and evidence satisfactory to the Bank indicating that no
          party claims an interest in any of the collateral identified in the
          Security Agreement.

     (3)  OTHER DOCUMENTS. Such other and further documents, agreements and
          instruments as the Bank or Bank's counsel deems appropriate or
          necessary.

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     SECTION 3.02.    CONDITIONS PRECEDENT TO ALL LOANS. The agreement of the
Bank (at its discretion) to make each Loan (including the initial Loan) shall be
subject to the further conditions precedent that on the date of such Loan:

     (1)  The following statements shall be true and upon request by the Bank,
          the Bank shall have received a certificate signed by duly authorized
          officers of the Borrower, dated the date of such Loan, stating that:

          (a)  The Borrower's representations and warranties contained in
               Article IV of this Agreement and in the Security Agreement and
               the other Loan Documents are correct on and as of the date of
               such Loan as though made on and as of such date;

          (b)  No Default or Event of Default has occurred and is continuing, or
               would result from such Loan or other event has occurred which
               would constitute an Event of Default but for the requirement that
               notice be given or time elapse or both; and

          (c)  There has been no material adverse change in the assets,
               liabilities, financial condition or business of the Borrower
               since the date of their, financial statements most recently
               delivered to the Bank.

     (2)  Each request for a Loan under the Equipment Credit shall be
          accompanied by a bill of sale, certificate of title or other
          certificate of ownership (including the executed application to add a
          lien holder), if applicable, an executed Installment Note, a separate
          security agreement, to the extent deemed necessary or appropriate by
          the Bank, and UCC-1 financing statements, if requested by the Bank,
          and such other documents as may reasonably be required by Bank or its
          counsel (including executed application(s) to add the Bank as a lien
          holder in the case of motor vehicles; and

     (3)  The Bank shall have received such other approvals, opinions,
          assurances or documents as the Bank may reasonably request from the
          Borrower.

                                   ARTICLE IV
                          REPRESENTATION AND WARRANTIES

     The Borrower represents and warrants to the Bank that:

     SECTION 4.01.    INCORPORATION, GOOD STANDING, AND DUE QUALIFICATION. The
Borrower is a corporation duly incorporated, validly existing, and in good
standing under the laws of The Commonwealth of Massachusetts; has the corporate
power and authority to own its assets and to transact the business in which it
is now engaged or proposed to be engaged in; and is duly qualified as a foreign
corporation and in good standing under the laws of each other jurisdiction in
which such qualification is required.

     SECTION 4.02.    CORPORATE POWER AND AUTHORITY. The execution, delivery,
and performance by the Borrower of the Loan Documents to which it is a party
have been duly

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authorized by all necessary corporate action and do not and will not (1) require
any consent or approval of the stockholders of such corporation; (2) contravene
such corporation's charter or bylaws; (3) violate any provision of any law,
rule, regulation (including, without limitation, Regulation U of the Board of
Governors of the Federal Reserve System), order, writ, judgment, injunction,
decree, determination, or award presently in effect having applicability to such
corporation; (4) result in a breach of or constitute a default under any
indenture or loan or credit agreement or any other agreement, lease, or
instrument to which such corporation is a party or by which it or its properties
may be bound or affected; (5) result in, or require, the creation or imposition
of any Lien upon or with respect to any of the properties now owned or hereafter
acquired by such corporation, except as provided in this Agreement; and (6)
cause such corporation to be in default under any such law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award or any such
indenture, agreement, lease, or instrument.

     SECTION 4.03.    LEGALLY ENFORCEABLE AGREEMENT. This Agreement is, and each
of the other Loan Documents when delivered under this Agreement will be, legal,
valid, and binding obligations of the Borrower, enforceable against the Borrower
in accordance with their respective terms, except to the extent that such
enforcement may be limited by applicable bankruptcy, insolvency, and other
similar laws affecting creditors' rights generally.

     SECTION 4.04.    FINANCIAL STATEMENTS OF THE BORROWER. The financial
statements of the Borrower for the fiscal year then ended, and the accompanying
footnotes, and the interim balance sheet and the related statement of income and
retained earnings for the period then ended, copies of which have been furnished
to the Bank, are complete and correct and fairly present the financial condition
of the Borrower as at such dates and the results of the operations of the
Borrower for the periods covered by such statements, all in accordance with GAAP
consistently applied (subject to year-end adjustments in the case of the interim
financial statements), and since the date through which the financial statements
cover, there has been no material adverse change in the condition (financial or
otherwise), business, or operations of the Borrower. There are no liabilities of
the Borrower, fixed or contingent, which are material but are not reflected in
the financial statements or in the notes thereto, other than liabilities arising
in the ordinary course of business. No information, exhibit, or report furnished
by the Borrower to the Bank in connection with the negotiation of this Agreement
contained any material misstatement of fact or omitted to state a material fact
or any fact necessary to make the statement contained therein not materially
misleading.

     SECTION 4.05.    OTHER AGREEMENTS. The Borrower is not a party to any
indenture, loan, or credit agreement, or to any lease or other agreement or
instrument, or subject to any charter or corporate restriction which could have
a material adverse effect on the business, properties, assets, operations, or
conditions, financial or otherwise, of the Borrower, or the ability of the
Borrower to carry out its obligations under the Loan Documents to which it is a
party. The Borrower is not in default in any respect in the performance,
observance, or fulfillment of any of the obligations, covenants, or conditions
contained in any agreement or instrument material to its business to which it is
a party.

     SECTION 4.06.    LITIGATION. There is no pending or, to the Borrowers
knowledge, threatened, action or proceeding against or affecting the Borrower
before any court,

                                     - 11 -
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governmental agency, or arbitrator which may, in any one case or in the
aggregate, materially adversely affect the financial condition, operations,
properties, or business of the Borrower or the ability of the Borrower to
perform each of its obligations under the Loan Documents.

     SECTION 4.07.    NO DEFAULTS ON OUTSTANDING JUDGMENTS OR ORDERS. The
Borrower has satisfied all judgments and is not in default with respect to any
judgment, writ, injunction, decree, rule, or regulation of any court,
arbitrator, or federal, state, municipal, or other governmental authority,
commission, board, bureau, agency, or instrumentality, domestic or foreign.

     SECTION 4.08.    OWNERSHIP AND LIENS. The Borrower has title to, or valid
leasehold interests in, all of its properties and assets, real and personal,
including the properties and assets and leasehold interests reflected and the
financial statements referred to in Section 4.04 (other than any properties or
assets disposed of in the ordinary course of business), and none of the
properties and assets owned by the Borrower and none of its interests are
subject to any Lien, except such as may be permitted pursuant to Section 6.01 of
this Agreement.

     SECTION 4.09.    SUBSIDIARIES AND OWNERSHIP OF STOCK.  There is currently
one subsidiaries as set forth on Schedule 4.09. Except for said subsidiary, the
Borrower has no investments in the stock or securities of any other corporation,
firm, trust or other entity. The Borrower will promptly give the Bank notice of
the formation or acquisition of any additional subsidiaries

     SECTION 4.10.    OPERATION OF BUSINESS. The Borrower possesses all
licenses, permits, franchises, patents, copyrights, trademarks, and trade names,
or rights thereto, to conduct its business substantially now as conducted and as
presently proposed to be conducted, and the Borrower is not in violation of any
rights of others with respect to any of the foregoing.

     SECTION 4.11.    TAXES. The Borrower has filed all income tax returns,
excise tax returns and other tax returns (federal, state, and local) required to
be filed and have paid all taxes, assessments, and governmental charges and
levies thereon to be due, including interest and penalties. To the best of
Borrower's knowledge, no audit or investigation is presently being conducted
with regard to any tax return or tax obligation of the Borrower.

     SECTION 4.12.    ERISA. No employee pension benefit plan or other plan
(within the meaning of Section 3(2) of the Employees Retirement Income Security
Act of 1974, as amended ("ERISA")) which is or was sponsored at any time since
June 30, 1984, by the Borrower or any member of a controlled group of
corporations within the meaning of Section 414(b) of the Internal Revenue Code
of 1954, as amended (the "Code"), or any member of a group of commonly
controlled trades or businesses (whether or not incorporated) within the meaning
of Section 414(c) of the Code of which the Borrower is a member ("Plan"): (i)
has incurred an "accumulated funding deficiency" (within the meaning of Section
302(a)(2) of ERISA or which could result in a liability of Borrower (which
liability could materially affect the financial condition Of the Borrower) under
Section 409 of ERISA or Section 4975 of the Code or pursuant to any agreement or
statute with respect to liabilities incurred by any person under such sections.
No material liability to the Pension Benefit Guaranty Corporation ("PBGC"), to a
Plan, or to any participant in or beneficiary of a Plan has been

                                     - 12 -
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or, to the present knowledge of Borrower, is expected to be incurred with
respect to any Plan by the Borrower and there has been no event or conditions
which presents a risk of termination of any Plan by PBGC.

     SECTION 4.13.    HAZARDOUS MATERIAL.  Neither the Borrower nor any person
for whose conduct the Borrower is legally responsible has ever:

          (a)  owned, occupied, or operated a site or vessel on which any
               hazardous materials or oil was or is stored, transported, or
               disposed of (the terms site, vessel, and hazardous materials or
               oil respectively being used in this Agreement shall be deemed to
               have the meanings given those terms in M.G.L. c. 21E), except in
               compliance with all laws, ordinances and regulations pertaining
               thereto; or

          (b)  directly or indirectly transported, or arranged for the transport
               of any hazardous materials or oil, except in compliance with all
               laws, ordinances and regulations pertaining thereto; or

          (c)  caused or been legally responsible for any release or threat of
               release of any hazardous materials or oil; or

          (d)  received notification from any federal, state, or other
               governmental authority of any potential or known release or
               threat of release of any hazardous material or oil from any site
               or vessel owned, occupied, or operated by the Borrower or any
               person for whose conduct the Borrower is responsible, and/or of
               the occurrence of any expense or loss by such governmental
               entity.

     SECTION 4.14.    LABOR DISPUTES AND ACTS OF GOD. Neither the business nor
the properties of the Borrower have been affected by any fire, explosion,
accident, strike, lockout or other labor dispute, drought, storm, hail,
earthquake, embargo, act of God or of the public enemy, or other casualty
(whether or not covered by insurance) materially and adversely affecting such
business or properties or the operation of the Borrower.

     SECTION 4.15.    COMPLIANCE. The Borrower has not violated, nor is the
Borrower in violation of, any applicable law or regulation, which violation
would have a material and adverse effect on the business or operations of the
Borrower or any order, judgment, or decree. The Borrower is not a party to any
contract or other agreement, or subject to any restrictions under its charter
documents, by-laws or other corporate instrument, or subject to any order,
judgment, rule, regulation, or decree of any court or governmental authority,
which materially and adversely affects its business, properties, assets or
financial condition or which restricts or otherwise limits its incurring of the
Loan or its performance and observance of its Obligations. Neither the execution
and delivery by the Borrower nor the compliance by Borrower with the terms and
conditions of this Agreement, or any Loan Document to which the Borrower is a
party, conflicts or will conflict with constitutes or will constitute a default
under, or results or will result in any violation if, the charter documents or
By-laws of the Borrower, any award of any arbitrator, any law, any order,
judgment, rule, regulation or decree of any court or governmental

                                     - 13 -
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authority, or any agreement or instrument to which the Borrower is a party or
any of its property is subject; nor does the same result nor will it result in
the creation of imposition of any Lien upon any of its property except the Liens
created by this Agreement or any other Loan Document.

     SECTION 4.16.    NO CHANGE OF NAME.  The Borrower has never changed its
name.

     SECTION 4.17.    FEDERAL / STATE CONTRACTS. The Borrower has no material
contracts or orders to provide goods or services to, and there are no material
account receivables due to the Borrower from the United States government or any
state government or any subdivision or agency thereof.

     SECTION 4.18.    OFFICERS, DIRECTORS AND SHAREHOLDERS. The officers,
directors and stockholders of the Borrower are as set forth on Schedule 4.18
annexed hereto and upon any changes or additions, the Borrower will promptly
notify the Bank in writing.

                                    ARTICLE V
                              AFFIRMATIVE COVENANTS

     So long as the Notes or any of them shall remain unpaid or the Bank shall
have any commitment under this Agreement, the Borrower will:

     SECTION 5.01.    MAINTENANCE OF EXISTENCE. Preserve and maintain its
corporate existence and good standing in the jurisdiction of its incorporation,
and qualify and remain qualified as a foreign corporation in each jurisdiction
in which such qualification is required.

     SECTION 5.02.    MAINTENANCE OF RECORDS. Keep adequate records and books of
account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Borrower,
including complete records of all accounts (as defined in the Massachusetts
Uniform Commercial Code) of the Borrower.

     SECTION 5.03.    MAINTENANCE OF PROPERTIES/FRANCHISES. Maintain, keep, and
preserve all of its properties (tangible and intangible) necessary or useful in
the proper conduct of its business in good working order and condition, ordinary
wear and tear excepted. Borrower shall maintain in full force and effect all
rights, franchises, patents, licenses, permits and privileges necessary for the
proper conduct of its business.

     SECTION 5.04.    CONDUCT OF BUSINESS. Continue, and cause each Subsidiary
and Affiliate to continue, to engage in an efficient and economical manner in a
business of the same general type as conducted by it on the date of this
Agreement.

     SECTION 5.05.    MAINTENANCE OF INSURANCE. Maintain insurance with
financially sound and reputable insurance companies or associations in such
amounts and covering such risks as the Bank shall require and as are usually
carved by companies engaged in the same or a similar business and similarly
situated, which insurance may provide for reasonable deductibility from coverage
thereof.

                                     - 14 -
<Page>

     SECTION 5.06.    COMPLIANCE WITH LAWS. Comply in all material respects with
applicable laws, rules, regulations, and orders, such compliance to include,
without limitation, paying before the same become delinquent all taxes,
assessments, and governmental charges imposed upon it or upon its property,
noncompliance with which would have a material and adverse effect on the
business and operations of the Borrower.

     SECTION 5.07.    RIGHT OF INSPECTION. At any reasonable time and from time
to time, upon at least three business days notice to the Borrower (or one day
after an Event of Default, while such Event of Default is continuing), permit
the Bank or any agent or representative thereof to examine and make copies of
and abstracts from the records and books of account of, and visit the properties
of, the Borrower and any Subsidiary or Affiliate, and to discuss the affairs,
finances, and accounts of the Borrower and any Subsidiary or Affiliate with any
of their respective officers and directors and the Borrower's or an Affiliate's
independent accountants. In addition to the foregoing, from time to time, as
deemed necessary by the Bank, in the Bank's discretion, field examinations by
the Bank's auditors may be conducted, and the actual, reasonable costs and
expenses of the such field examinations shall be borne by the Borrower;
provided, however, prior to an Event of Default, the Borrower shall not be
required to pay for more than one field examination in any calendar year. After
an Event of Default, the Bank may conduct such field examinations at such
frequency as the Bank, in its reasonable discretion, deems necessary or
appropriate with the Borrower to pay for all actual, reasonable costs and
expenses of all such field examinations.

     SECTION 5.08.    REPORTING REQUIREMENTS.  Furnish to the Bank:

     (1)  QUARTERLY FINANCIAL STATEMENTS. (i) As soon as available and, in any
          event, within forty-five (45) days after the end of every fiscal
          quarter, company prepared balance sheets and income statements,
          noting, without limitation, all assets and liabilities, of the
          Borrower as of the end of such quarter and retained earnings of the
          Borrower, which in the case of each quarter's financial statements
          shall be certified by the President or Treasurer of the Borrower as
          being true, accurate and complete and fairly presenting the financial
          condition of the Borrower;

     (2)  ANNUAL FINANCIAL STATEMENTS. As soon as available and, in any event,
          within one hundred. twenty (120) days after the end of each fiscal
          year of the Borrower, the financial statements of the Borrower,
          including, without limitation, a balance sheet of the Borrower as of
          the end of such fiscal year and a statement of income and retained
          earnings of the Borrower for such fiscal year, and a statement of
          change in financial position of the Borrower for such fiscal year, all
          in reasonable detail and stating in comparative form the respective
          figures for the corresponding date and period in the prior fiscal year
          prepared in accordance with GAAP consistently applied and audited by
          independent certified public accountants selected by the Borrower and
          approved by the Bank, which approval shall not be unreasonably
          withheld, and certified by the President or Treasurer of the Borrower.
          Copies of all management reports furnished to the Borrower from the
          Borrower's accountants shall also be furnished to the Bank;

                                     - 15 -
<Page>

     (3)  QUARTERLY COMPLIANCE CERTIFICATES. Within fifteen (15) days after the
          end of each quarter, a Covenant Compliance Certificate in the form of
          Exhibit 5.08(3) or such other form as the Bank requires.

     (4)  RECEIVABLES AGINGS. Within forty-five (45) days after the end of each
          quarter, receivables agings in such form as the Bank reasonably
          requests.

     (5)  BORROWING BASE CERTIFICATES. Within five (5) days after the end of
          each month during which any sums are outstanding under Revolving
          Credit, a Borrowing Base certificate in the form of Exhibit 5.08(5) or
          such other form as the Bank requires.

     (6)  NOTICE OF LITIGATION. Promptly after the commencement thereof, notice
          of all actions, suits, and proceedings before any court or
          governmental department, commission, board, bureau, agency, or
          instrumentality, domestic or foreign, affecting the Borrower or any
          Subsidiary or Affiliate, which, if determined adversely to the
          Borrower or any Subsidiary or Affiliate, could have a material adverse
          effect on the financial condition, properties, or operations of the
          Borrower or any Subsidiary or Affiliate. Any suit seeking in excess of
          One Hundred Thousand Dollars ($100,000.00) shall be deemed material
          for notice purposes;

     (7)  NOTICE OF DEFAULTS AND EVENTS OF DEFAULT. As soon as possible and in
          any event within ten (10) days after the occurrence of each Default or
          Event of Default, a written notice setting forth the details of such
          Default or Event of Default and the action which is proposed to be
          taken by the Borrower with respect thereto;

     (8)  QUARTERLY BACKLOG SCHEDULE. Within fifteen (15) days after the end of
          each quarter, a Backlog Schedule in such form as the Bank requires;
          and

     (9)  GENERAL INFORMATION. Such other information respecting the condition
          or operations, financial or otherwise of the Borrower and any
          Subsidiary or Affiliate, as the Bank may, from time to time,
          reasonably request, including, without limitation, annually, current
          equipment lists, financial statements and tax returns.

     SECTION 5.09.    DEFERRED COMPENSATION PAYMENTS. Pay or cause to be paid
when due all amounts necessary to fund in accordance with their terms all such
deferred compensation plans, whether now in existence or hereafter created, and
the Borrower will not withdraw from participation in, permit the termination or
partial termination of, or permit the occurrence of any other event with respect
to, any deferred compensation plan maintained for the benefit of its employees
under circumstances that could result in liability to the Pension Guaranty
Corporation, or any of its successors or assigns, or to the entity which
provides funds for such deferred compensation plan.

     SECTION 5.10.    ADDITIONAL DOCUMENTS. From time to time, execute and
deliver to the Bank all such other and further instruments or documents and take
or cause to be taken all such other and further action as the Bank may
reasonably request in order to effect and confirm or vest more securely in the
Bank all rights contemplated in this Agreement.

                                     - 16 -
<Page>

     SECTION 5.11.    USE OF PROCEEDS.  The proceeds of the Revolving Credit are
to be used only for working capital needs of the Borrower. The proceeds of the
Equipment Loan are to be used only for the equipment needs of the Borrower.

     SECTION 5.12.    BANK ACCOUNTS.  During the period any Loan is
outstanding, the Borrower shall maintain all primary bank and operating
accounts, (including checking accounts) with the Bank.

                                   ARTICLE VI
                               NEGATIVE COVENANTS

     So long as the Notes, or any of them, shall remain unpaid or the Bank shall
have any commitment under this Agreement, the Borrower will not:

     SECTION 6.01.    LIENS. Create, incur, assume, or suffer to exist, or
permit any Subsidiary or Affiliate to create, incur, assume, or suffer to exist,
any Lien upon or with respect to any of its properties, now owned or hereafter
acquired, except:

     (1)  Liens in favor of the Bank;

     (2)  Liens for taxes or assessments or other government charges or levies
          if not yet due and payable or, if due and payable, if they are being
          contested in good faith by appropriate proceedings and for which
          appropriate reserves are maintained.

     (3)  Purchase money security interests in equipment financed by vendors,
          provided that the aggregate of all purchase money financings shall not
          exceed Two Million ($2,000,000.00) Dollars.

     (4)  Deposits or pledges made in connection with, or to secure payment of,
          workmen's compensation, unemployment insurance, old age pensions or
          other social security; liens in respect of judgments or awards to the
          extent such judgments or awards are otherwise permitted hereunder;

     (5)  Encumbrances in the nature of zoning restrictions, easements, and
          rights or restrictions of record on the use of real property which do
          not materially detract from the value of such property or impair its
          use in the business of the owner or lessee;

     (6)  Liens (other than judgments and awards) created by or resulting from
          any litigation or legal proceeding, provided the execution or other
          enforcement thereof is effectively stayed and the claims secured
          thereby are being actively contested in good faith by appropriate
          proceedings satisfactory to the Bank; and

     (7)  Liens arising by operation of law to secure landlords, lessors or
          renters under leases or rental agreements made in the ordinary course
          of business and confined to the premises or property rented.

                                     - 17 -
<Page>

     SECTION 6.02.    MERGERS, ETC. WITHOUT THE CONSENT OF THE BANK. Merge or
consolidate with, or sell, assign, lease, or otherwise dispose of (whether in
one transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to any Person, or acquire all
or substantially all of the assets or the business of any Person, or permit any
Subsidiary or Affiliate to do so, except that (1) any Subsidiary or Affiliate
may merge into or transfer assets to the Borrower, and (2) any Subsidiary or
Affiliate may merge into or consolidate with or transfer assets to any other
Subsidiary or Affiliate.

     SECTION 6.03.    ADDITIONAL INDEBTEDNESS. Except (1) for indebtedness
secured by the liens permitted under Section 6.01; and (2) indebtedness to
vendors from capitalized leases and/or to suppliers of inventory, which
indebtedness shall not exceed One Million ($1,000,000.00) Dollars in the
aggregate, issue evidence of Indebtedness or create, assume, become contingently
liable for, or suffer to exist Indebtedness in addition to indebtedness to the
Bank; provided, however, that the Borrower may incur trade payables which are
incurred or arise in the ordinary course of the Borrower's business.

     SECTION 6.04.    SECURITY INTERESTS.  Notwithstanding anything to the
contrary contained herein, grant to any party, other than the Bank, a security
interest in any assets of the Borrower, and/or any Affiliate or Subsidiary,
except as permitted in 6.01.

     SECTION 6.05.    GUARANTIES, ETC. Assume, guarantee, endorse, or otherwise
be or become directly or contingently responsible or liable, or permit any
Subsidiary to assume, guarantee, endorse, or otherwise be: or become directly or
contingently responsible or liable (including, but not limited to, an agreement
to purchase any obligation, stock, assets, goods, or services, or to supply or
advance any funds, assets, goods, or services, or to maintain or cause such
Person to maintain a minimum working capital or net worth, or otherwise to
assure the creditors of any Person against loss) for obligations of any Person,
except guaranties by endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

     SECTION 6.06.    TRANSACTION WITH AFFILIATES. Enter into any transaction,
including, without limitation, the purchase, sale or exchange of property or,
the rendering of any service, with any Affiliate or Subsidiary, or permit any
Subsidiary or Affiliate to enter into any transaction, including, without
limitation, the purchase, sale, or exchange of property or the rendering of any
service, with any Affiliate or Subsidiary, except in the ordinary course of and
pursuant to the reasonable requirements of the Borrower's or such Subsidiary's
or Affiliate's business and upon fair and reasonable terms no less favorable to
the Borrower or such Subsidiary or Affiliate than would obtain in a comparable
arm's-length transaction with a Person not an Affiliate or Subsidiary.

     SECTION 6.07.    DIVIDENDS. Declare or pay any Dividends to shareholders;
or purchase, redeem, retire,. or otherwise acquire for value any of its capital
stock now or hereafter outstanding; or make any distribution of assets to its
shareholders as such whether in cash, assets, or obligations of the Borrower; or
allocate or otherwise set apart any sum for the payment of any dividend or
distribution on or for the purchase, redemption, or retirement of, any shares of
its capital stock; or make any other distribution by reduction of capital or
otherwise in respect of any shares of its capital stock; except that (1) the
Borrower may declare and

                                     - 18 -
<Page>

deliver dividends and make distributions payable solely in common stock of the
Borrower; and (2) such other Dividends as the Borrower deems appropriate
provided that the payment of such Dividends does not cause the Borrower to be in
default of any of its covenants hereunder and that no default has occurred,
which with the passage of time or the giving of notice; or both, could result in
an Event of Default hereunder.

     SECTION 6.08.    CHANGE OF NAME OR LOCATION. Change its name or conduct its
business under any trade name or style other than as hereinabove set forth or
change its chief executive office, places of business or the present locations
of its assets or records relating thereto from those address(es) hereinabove set
forth.

     SECTION 6.11.    MANAGEMENT, CAPITAL STRUCTURE. Make or consent to a
material change in the ownership or capital structure of the Borrower, which
results in Dr. Yalcin Ayasli ceasing to be actively involved in management of
the business or, prior to an underwritten public offering of securities of the
Borrower, results in Dr. Yalcin Ayasli ceasing to own at least Fifty-one (51%)
percent of the common stock of the Borrower.

                                   ARTICLE VII
                               FINANCIAL COVENANTS

     SECTION 7.01.    DEBT COVERAGE RATIO. Borrower shall maintain a Minimum
Debt Service Coverage Ratio of 1.25 to 1 on a rolling four (4) quarters basis.
For purposes of this Agreement, the term "Debt Service Coverage Ratio" shall
mean: earnings before interest and taxes, plus depreciation, plus principal
amortization, minus unfinanced capital expenditures minus Dividends minus cash
taxes divided by interest expenses plus current maturities of long term
Indebtedness (including Capital Leases).

     SECTION 7.02.    MINIMUM TANGIBLE NET WORTH.  Borrower shall maintain a
minimum Tangible Net Worth of at least Seventeen Million ($17,000,000.00)
Dollars.

     SECTION 7.03.    MAXIMUM INDEBTEDNESS TO TANGIBLE NET WORTH.  Borrower
shall maintain a Total Indebtedness to Tangible Net Worth ratio of not more than
0.75 to 1.0.

     The foregoing requirements shall be measured in accordance with GAAP and
monitored quarterly by the financial statements required to be delivered by
Section 5.08(2).

                                EVENTS OF DEFAULT

     SECTION 8.01.    EVENTS OF DEFAULT.  RIGHTS AND REMEDIES UPON DEFAULT.

          (a)    Upon the occurrence of any one or more of the following events
(herein, each an "Event of Default") Bank may decline to make any or all further
loans hereunder or under any other agreements with Borrower, and any and all
Obligations of the Borrower to Bank shall become immediately due and payable, at
the option of Bank without notice or demand:

                                     - 19 -
<Page>

               (i)    The failure of the Borrower to pay the principal of, or
                      interest on, any promissory note now or hereafter executed
                      and delivered by the Borrower to the Bank within five (5)
                      days of when due;

               (ii)   Any representation or warranty made or deemed made by the
                      Borrower in this Agreement, by the Borrower in any of the
                      Loan Documents, or in connection with any Loan Document,
                      shall prove to have been incorrect in any material respect
                      on or as of the date made or deemed made;

               (iii)  The Borrower shall fail to perform or observe any material
                      term, covenant, or agreement contained in any Loan
                      Document (other than payments of any promissory note) on
                      the part of each of them to be performed or observed, and
                      fail to cure within fifteen (15) days of written notice;

               (iv)   The Borrower shall (a) fail to pay any material
                      indebtedness for borrowed money (other than the Notes) of
                      such party, or a subsidiary, as the case may be, or any
                      interest or premium thereon, when due (whether by
                      scheduled maturity, required prepayment, acceleration,
                      demand, or otherwise), (whether or not related to this
                      transaction or owed to the Bank or another person) or (b)
                      fail to perform or observe any material term, covenant, or
                      condition on its part to be performed or observed under
                      any agreement or instrument relating to any such
                      indebtedness, when required to be performed or observed
                      and such failure continues beyond any applicable grace
                      period, if the effect of such failure to perform or
                      observe is to accelerate, or to permit the acceleration
                      after the giving of notice or passage of time, or both, of
                      the maturity of such indebtedness, if such failure to
                      perform or observe has not been waived by the holder of
                      such indebtedness; or any such indebtedness shall be
                      declared to be due and payable, or required to be prepaid
                      (other than by a regularly scheduled required prepayment),
                      prior to the stated maturity thereof. For purposes of this
                      subsection material indebtedness shall be deemed to mean
                      indebtedness in excess of $25,000.00;

               (v)    The Borrower (a) shall generally not, or shall be unable
                      to, or shall admit in writing its inability to pay its
                      debts as such debts become due; or (b) shall make an
                      assignment for the benefit of creditors, petition or apply
                      to any tribunal for the appointment of a custodian,
                      receiver, or trustee for it or a substantial part of its
                      assets; or (c) shall commence any proceeding under any
                      bankruptcy, reorganization, arrangements, readjustment of
                      debt, dissolution, or liquidation law or statute of any
                      jurisdiction, whether now or hereafter in effect; or (d)
                      shall have any such petition or application filed or any
                      such proceeding commenced against it in

                                     - 20 -
<Page>

                      which  an order for relief is entered or adjudication or
                      appointment is made; or (e) by any act or omission shall
                      indicate its consent to, approval of, or acquiescence in
                      any such petition, application, or proceeding, or order
                      for relief, or the appointment of a custodian, receiver,
                      or trustee for all or any substantial part of its
                      properties; or (f) shall suffer any such custodianship,
                      receivership, or trusteeship to continue undischarged for
                      a period of thirty (30) days;

               (vi)   One or more judgments, decrees, or orders for the payment
                      of money shall be rendered against the Borrower and such
                      judgments, decrees, or orders shall continue unsatisfied
                      and in effect for a period of ten (10) days without being
                      vacated, discharged, satisfied, or stayed or bonded
                      pending appeal;

               (vii)  The service of any process on the Bank seeking to attach
                      by trustee process any assets of the Borrower held by the
                      Bank;

               (viii) The Borrower shall fail to perform or observe any material
                      term, covenant or agreement contained in documents
                      evidencing, securing or accompanying this Agreement and/or
                      any and all other Obligations, whether now existing or
                      made hereafter, of the Borrower, whether as maker,
                      guarantor or endorser or otherwise, to the Bank, (all
                      documents evidencing such obligations being the "Other
                      Bank Documents") and failure to cure within the applicable
                      grace period, or, if no grace period is specified, then
                      within ten (10) days of written notice;

               (ix)   Any levy, seizure, attachment, execution or similar
                      process shall be issued or levied or a filing against or
                      relating to the Borrower of (A) a federal tax lien in
                      favor of the United States of America or any political
                      subdivision of the United States of America, or (B) a
                      state tax lien in favor of any state of the United States
                      of America or any political subdivision of any such state
                      on any of the property of the Borrower, which remains
                      undischarged for ten (10) days or the entry of any
                      judgment(s) against Borrower, which judgment(s) is not
                      satisfied or appealed from (with execution or similar
                      process stayed) within thirty (30) days of its entry; or

               (x)    The Borrower shall dissolve or liquidate, or be dissolved
                      or liquidated, or cease to legally exist, or, if a
                      corporation or partnership, merge or consolidate, or be
                      merged or consolidated with or into any other corporation;

               (xi)   The Bank believes that any material adverse change in the
                      assets, liabilities, financial condition or business of
                      the Borrower shall have occurred since the date of any
                      financial statements delivered

                                     - 21 -
<Page>

                      to the Bank before or after the date of this Note or the
                      Bank believes in good faith that the prospect of payment
                      of any obligation or the performance of any agreement of
                      the Borrower is impaired or the Bank deems itself
                      insecure;

               (xii)  Any security agreement or mortgage now or hereafter
                      delivered, or security interest granted, by or in
                      connection with this Agreement or any other loan document
                      by the Borrower (including this Agreement) shall at any
                      time after its execution and delivery and for any reason
                      cease (a) to create a valid and perfected first priority
                      security interest in and to the property purported to be
                      subject to such security agreement or mortgage or (b) to
                      be in full force and effect or shall be declared null and
                      void, or the validity or enforceability thereof shall be
                      contested by the Borrower shall deny it has any further
                      liability or obligation under the relevant security
                      agreement, or mortgage or the Borrower shall fail to
                      perform any of its material obligations under the relevant
                      security agreement or mortgage or other loan document; or

               (xiii) The Borrower moves its principal banking and/or borrowing
                      relationship to a bank other than the Bank.

     Upon the occurrence of an Event of Default, Bank may declare any obligation
Bank may have hereunder to be canceled, declare all Obligations of Borrower to
be due and payable and proceed to enforce payment of the Obligations and to
exercise any and all of the rights and remedies afforded to Bank by the Uniform
Commercial Code or under the terms of this Agreement or otherwise. The
occurrence of any such Event of Default shall also constitute, without notice or
demand, a default under all other agreements between Bank and the Borrower,
whether individually or jointly with others and all other instruments and papers
given Bank by the Borrower, whether such agreements, instruments, or papers now
exist or hereafter arise. In addition, upon the occurrence of an Event of
Default, if Bank proceeds to enforce payment of the Obligations, Borrower shall
be obligated to deliver to Bank cash collateral in an amount equal to the
aggregate amounts then undrawn on all outstanding Letters of Credit or
acceptances issued or guaranteed by Bank for the account of Borrower, and Bank
may proceed to enforce payment of the same and to exercise all rights and
remedies afforded to Bank by the Uniform Commercial Code or under the terms of
this Agreement or otherwise. Upon the occurrence of, and during the continuance
of, an Event of Default, the Borrower, as additional compensation to the Bank
for its increased credit risk, promises to pay interest on all Obligations
(including, without limitation, principal, whether or not past due, past due
interest and any other amounts past due under this Agreement) at the Default
Rate.

          (b)    Upon (i) the filing of any complaint, application, or petition
by or against the Borrower initiating any matter in which the Borrower is or may
be granted any relief from the debts of the Borrower pursuant to the Bankruptcy
Code, or (ii) the filing of any involuntary petition which is not dismissed
within sixty (60) days of filing, the Bank's obligation hereunder shall be
canceled immediately, automatically, and without notice, and all Obligations of
the

                                     - 22 -
<Page>

Borrower then outstanding shall become immediately due and payable without
presentation, demand, or notice of any kind to the Borrower.

          (c)    Any sale or other disposition of the Collateral maybe at public
or private sale upon such terms and in such manner as the Bank deems advisable,
having due regard to compliance with any statute or regulation which might
affect, limit or apply to the Bank's disposition of the Collateral. The Bank may
conduct any such sale or other disposition of the Collateral upon the Borrower's
premises. Unless the Collateral is perishable or threatens to decline speedily
in value, or is of a type customarily sold on a recognized market (in which
event the Bank shall provide the Borrower with such notice as may be practicable
under the circumstances), the Bank shall give the Borrower at least the greater
of the minimum notice required by law or seven (7) days prior written notice of
the date, time and place of any proposed public sale, and of the date after
which any private sale or other disposition of the Collateral may be made. The
Bank may purchase the Collateral, or any portion of it at any such sale.

          (d)    In connection with the Bank's exercise of the Bank's rights
after the occurrence of an Event of Default, the Bank may enter upon, occupy and
use any premises owned or occupied by the Borrower, and may exclude the Borrower
from such premises or portion thereof as may have been so entered upon,
occupied, or used by the Bank. The Bank shall not be required to remove any of
the Collateral from any such premises upon the Bank's taking possession thereof,
and may render any Collateral unusable to the Borrower. In no event shall the
Bank be liable to the Borrower for use or occupancy by the Bank of any premises
pursuant to this Agreement.

          (e)    Upon (i) the filing of any complaint, application, or petition
by or against the Borrower initiating any matter in which the Borrower is or may
be granted any relief from the debts of the Borrower pursuant to the Bankruptcy
Code; (ii) the filing of any involuntary petition; (iii) the filing of any
federal or state tax lien; or (iv) the appointment of a receiver, without regard
to any permitted cure or grace period, the Bank shall be automatically and
immediately relieved from being required to make any additional Loans or to
advance additional funding of any kind or nature, without any notice of any kind
to the Borrower, unless and until such matters are discharged or satisfied in
the Bank's sole judgment, and without prejudice to any and all of the Bank's
other rights and remedies under this Agreement.

     SECTION 8.02.    CROSS-DEFAULT. It is acknowledged and agreed that a
default (a) hereunder shall also constitute a default under all Other Bank
Documents and any and all loans from the Bank to the Borrower, whether or not
related to this transaction and (b) under any of the Other Bank Documents
(whether or not related to this transaction) shall also constitute a default
hereunder.

                                   ARTICLE IX
                                  MISCELLANEOUS

     SECTION 9.01.    AMENDMENTS, ETC. No amendment, modification, termination,
or waiver of any provision of any Loan Document to which the Borrower is a
party, nor consent to any departure by the Borrower from any Loan Document to
which it is a party, shall in any event

                                     - 23 -
<Page>

be effective unless the same shall be in writing and signed by the Bank, and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose given.

     SECTION 9.02.    NOTICES, ETC. Unless otherwise specified herein, all
notices and other communications provided for under this Agreement and under the
other Loan Documents to which the Borrower are a party shall be in writing and
mailed via certified mail, return receipt requested, or by a national overnight
courier company or hand delivered, if to the Borrower at 12 Elizabeth Drive,
Chelmsford, Massachusetts 01824, Attention: Dr. Yalcin Ayasli, with a copy
thereof to Robert V. Jahrling III, Esquire, and Christine Conley, Esquire, both
of Choate, Hall & Stewart, One Exchange Place, Boston, Massachusetts 02109; and
if to the Bank, at its address at 331 Montvale Avenue, Woburn, Massachusetts
01801, Attention: Nathan E. Pusey, Vice President, with a copy thereof to
Richard J. Levin, Esquire, Cumsky & Levin LLP, 6 University Road, Cambridge,
Massachusetts 02138; and as to each party, at such other address as shall be
designated by such party in a written notice to the other party complying as to
delivery with the terms of this Section 9.02. All such notices and communication
shall be effective when deposited in the mail, addressed as aforesaid, except
that notices to the Bank shall not be effective until received by the Bank.

     SECTION 9.03.    CONSENT. The Borrower may take any action herein
prohibited or omit to perform any act required to be performed by the Borrower
if the Borrower shall obtain the Bank's prior written consent to each such
action, or omission to act. No waiver on the Bank's part on any one occasion
shall be deemed a waiver on any other occasion. The Bank shall not be deemed to
have waived any of its rights hereunder unless such waiver shall be in writing
and duly signed by an authorized officer of the Bank.

     SECTION 9.04.    NO WAIVER; REMEDIES. No failure on the part of the Bank to
exercise, and no delay in exercising, any right, power, or remedy under any Loan
Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any right under any Loan Document preclude any other or further
exercise of any other right, power or remedy in the Loan Documents and all such
rights, powers and remedies are cumulative and not exclusive of any remedies
provided bylaw. The Bank shall not be required to have recourse to any
collateral before enforcing its rights or remedies against the Borrower. The
Borrower hereby waives presentment and protest of any instrument and any notice
thereof.

     THE BORROWER HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION IN
WHICH IT MAY BE A PARTY, WHETHER ARISING OUT OF, UNDER, OR BY REASON OF THIS
AGREEMENT OR ANY LOAN DOCUMENT OR ANY OTHER TRANSACTION HEREUNDER OR BY REASON
OF ANY OTHER CAUSE OR DISPUTE OF ANY KIND OR NATURE WHATSOEVER BETWEEN IT OR
THEM AND THE BANK.

     SECTION 9.05.    SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the Borrower, and the Bank and their respective
successors and assigns, except that the Borrower may not assign or transfer any
of it's rights under any Loan Document to which the Borrower is a party without
the prior written consent of the Bank.

     SECTION 9.06.    COSTS, EXPENSES, AND TAXES. Borrower shall pay to Bank on
demand any and all reasonable counsel fees and other expenses incurred by Bank
in connection

                                     - 24 -
<Page>

with the preparation, interpretation, enforcement, or amendment of this
Agreement, or of any documents relating thereto, and any and all expenses,
including, but not limited to, all attorneys' fees and expenses, and all other
expenses of like or unlike nature which may be expended by Bank or in the
prosecution or defense of any action or concerning any matter growing out of or
connected with the subject matter of this Agreement, the Obligations or the
Collateral or any of Bank's rights or interests therein or thereto, including,
without limiting the generality of the foregoing, any reasonable counsel fees or
expenses incurred in any bankruptcy or insolvency proceedings and all costs and
expenses incurred or paid by Bank in connection with the administration
supervision, protection or realization on any security held by Bank for the debt
secured hereby, whether such security was granted by Borrower or by any other
person primarily or secondarily liable (with or without recourse) with respect
to such debt, and all costs and expenses incurred by Bank in connection with the
defense, settlement or satisfaction of any action, claim or demand asserted
against Bank in connection with the debt secured hereby, all of which amounts
shall be considered advances to protect Bank's security, and shall be secured
hereby. In addition, the Borrower shall pay any and all stamp and other taxes
and fees payable or determined to by payable in connection with the execution,
delivery, filing and recording of any of the Loan Documents and the other
documents to be delivered under any such Loan Documents, and agrees to save the
Bank harmless from and against any and all liabilities with respect to or
resulting from any delay in paying or omission to pay such taxes and fees.

     SECTION 9.07.    RIGHT OF SETOFF. Upon the occurrence and during the
continuance of any Event of Default, the Bank is hereby authorized at any time
and from time to time, without notice to the Borrower (any such notice being
expressly waived by the Borrower), to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Bank to or for the credit or the
account of the Borrower against any and all of the obligations of the Borrower
now or hereafter existing under this Agreement or the Notes or any other Loan
Document, irrespective of whether or not the Bank shall have made any demand
under this Agreement or the Notes or such other Loan Document and although such
obligations may be unmatured. The Bank agrees promptly to notify the Borrower
after any such setoff and application, provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights
of the Bank under this Section 9.07. are in addition to other rights and
remedies (including, without limitation, other rights of setoff) which the Bank
may have. Any and all instruments, documents, policies and certificates of
insurance, securities, goods, accounts, choses in action, general intangibles,
chattel papers, cash, property and the proceeds thereof (whether or not the same
are Collateral or proceeds thereof hereunder) owned by Borrower or in which
Borrower has an interest, which now or hereafter are at any time in possession
or control of Bank or in transit by mail or carrier to or from Bank or in the
possession of any third party acting in Bank's behalf, without regard to whether
Bank received the same in pledge, for safekeeping, as agent for collection or
transmission or otherwise or whether Bank had conditionally released the same,
shall constitute additional security for the Obligations and may be applied at
any time following the occurrence of an Event of Default or an event which with
notice or the lapse of time, or both, would constitute an Event of Default, to
any Obligations which are then owing, whether due or not due. Bank shall be
entitled to presume, in the absence of clear and specific written notice to the
contrary hereinafter provided by Borrower to Bank, that any and all deposits
maintained by Borrower with Bank are general accounts as to which no person or
entity other than Borrower has any legal or equitable interest whatsoever.

                                     - 25 -
<Page>

     SECTION 9.08.    GOVERNING LAW.  This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of The Commonwealth of
Massachusetts.

     SECTION 9.09.    SEVERABILITY OF PROVISIONS. Any provision of any Loan
Document which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of such Loan
Documents or affecting the validity or enforceability of such provision in any
other jurisdiction.

     SECTION 9.10.    HEADINGS.  Article and Section headings in the Loan
Documents are included in such Loan Documents for the convenience of reference
only and shall not constitute a part of the applicable Loan Documents for any
other purpose.

     SECTION 9.11.    WAIVER. The Borrower hereby waives notice of nonpayment,
demand, presentment, protest and notice thereof with respect to any and all
instruments, notice of acceptance hereof, notice of loans or advances made,
credit extended, collateral received or delivered, or any other action taken in
reliance hereon, and all other demands and notices of any description, except
such as are expressly provided for herein. No delay or omission on Bank's part
in exercising any right, remedy or option shall operate as a waiver or such or
any other right, remedy or option or of any default.

     SECTION 9.12.    TERMINATION. This Agreement shall continue to be fully
operative until all transactions entered into, rights hereunder or interest
created or Obligations incurred have been fully disposed of, concluded or
liquidated. The security interests, Liens and rights granted to Bank hereunder
shall continue in full force and effect until all Obligations have been
satisfied.

     SECTION 9.13.    AUTHORITY. The Bank is authorized to make loans under the
terms of this Agreement upon the request, either written or oral, in the name of
Borrower of any officer identified in Schedule 4.18 or other persons, from time
to time, holding the offices of President, Treasurer or Chief Financial officer
and such other officers and authorized signatories as may from time to time be
set forth in separate banking and borrowing resolutions.

     IN WITNESS WHEREOF, the parties have executed or caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written and shall take effect as a sealed instrument.

                              HITITTE MICROWAVE CORPORATION

                              By:   /s/ Yalcin Ayasli
                                    -------------------------------------------
                              Name: Dr. Yalcin Ayasli
                                    President and Treasurer

                                     - 26 -
<Page>

                              CITIZENS BANK OF MASSACHUSETTS

                              By:   /s/ Nathan F. Pusey
                                    -------------------------------------------
                              Name: Nathan F. Pusey, Vice President

                        THE COMMONWEALTH OF MASSACHUSETTS

Middlesex, ss.                                                 October 19, 2001

     Then personally appeared Dr. Yalcin Ayasli, President and Treasurer of
Hittite Microwave Corporation, known to me, and acknowledged the foregoing to be
his duly authorized and free act and deed as President and Treasurer and the
free act and d ed of Hittite Microwave Corporation.

                              /s/ William Sylvanowicz
                              -------------------------------------------
                              Notary Public
                              My commission expires: Feb 8, 2002

                                     - 27 -<Page>

                                                                    Exhibit 10.6

                               SECURITY AGREEMENT
                                  (ALL ASSETS)

         THIS SECURITY AGREEMENT is entered into at Boston, Massachusetts, as of
this 30th day of September, 2001 by and between HITTITE MICROWAVE CORPORATION, a
Delaware corporation with a principal place of business at 12 Elizabeth Drive,
Chelmsford, Massachusetts 01824 (hereinafter called the "Borrower") and CITIZENS
BANK OF MASSACHUSETTS (hereinafter called the "Bank") with its principal place
of business at 28 State Street, Boston, Massachusetts 02109.

         Except for certain masks located at various foundries, the tangible
Collateral, including the Inventory and Equipment, which is the subject matter
of this Agreement is, and, except as otherwise provided herein, will be, kept
at: 12 Elizabeth Drive, Chelmsford, Massachusetts 01824. The Borrower warrants
that the Borrower has no places of business except as set forth in the preceding
sentence. All records concerning Borrower's accounts, contract rights and other
property are at 12 Elizabeth Drive, Chelmsford, Massachusetts 01824.

         1.       In consideration of the Bank's extending credit and other
financial accommodations to the Borrower, the Borrower hereby grants to the Bank
a security interest in (including, without limitation, a lien on and pledge of)
all of the Borrower's Collateral (as hereinafter defined).

         The security interest granted by this Agreement is given to and shall
be held by the Bank as security for the payment and performance of all
Obligations (as hereinafter defined). The Bank shall have the unrestricted right
from time to time to apply the proceeds of any of the Collateral to any of the
Obligations, as the Bank in its sole discretion may determine.

         During the continuance of this Agreement the Borrower will, at such
intervals as the Bank may request, notify the Bank, upon a form satisfactory to
the Bank, of all Collateral which has come into existence since the date hereof
or the date of the last such notification, including, without limitation, the
delivery of schedules of the Collateral and/or proceeds resulting from the sale
or other disposition thereof.

         2.       The following definitions shall apply:

         (a)      "Collateral" shall mean all the Borrower's present and future
right, title and interest in and to any and all of the following property,
whether such property be now existing or hereafter created, acquired or arising
or now or hereafter received by or belonging or owing to the Borrower:

         (i)      All Inventory;

         (ii)     All accounts, (as these terms are defined in the Uniform
Commercial Code, as hereafter defined), including, without limiting the
generality of the foregoing,

                                      - 1 -
<Page>

"Health-Care-Insurance Receivables", accounts receivable, and all contract
rights, and chattel paper, including without limiting the generality of the
foregoing, "Electronic Chattel Paper", regardless of whether or not any of the
foregoing constitute proceeds of other Collateral;

         (iii)    All general intangibles, regardless of whether or not they
constitute proceeds of other Collateral, including, without limitation, all the
Borrower's rights (which the Bank may exercise or not as it in its sole
discretion may determine) to acquire or obtain goods and/or services with
respect to the manufacture, processing, storage, sale, shipment, delivery or
installation of any of the Borrower's Inventory or other Collateral;

         (iv)     All products and accessions to any of the Collateral;

         (v)      All liens, guaranties, securities, rights, remedies and
privileges pertaining to any of the Collateral, including the right of stoppage
in transit;

         (vi)     All tax refunds of every kind and nature to which the Borrower
is now or hereafter may become entitled no matter however arising, including,
without limitation, loss carry back refunds;

         (vii)    All obligations, debts and liabilities owing to the Borrower
of every kind and nature, from any person, firm or corporation or any other
legal entity, whether now existing or hereafter arising, now or hereafter
received by or belonging or owing to Borrower, for goods sold by it or for
services rendered by it, or however otherwise same may have been established or
created, all guarantees and securities therefor, all right, title and interest
of Borrower in the merchandise or services which gave rise thereto, including
the rights of reclamation and stoppage in transit, all rights to replevy goods,
and all rights of an unpaid seller of merchandise or services, and all choses in
action;

         (viii)   All goodwill, trade secrets, records, files, computer
programs, and software and data, customer lists, ledger sheets, trade names,
trade secrets, copyrights, trademarks and patents;

         (ix)     All documents and instruments (whether negotiable or
nonnegotiable, and regardless of their being attached to chattel paper),
including, without limitation, all notes, bills, drafts and acceptances and all,
security entitlements, financial assets and other investment property, as these
terms are defined in the Uniform Commercial Code;

         (x)      All Equipment, including without limitation, machinery,
furniture, trade fixtures and all other goods used in the conduct of the
Borrower's business, and including, without limitation, all motor vehicles now
or hereafter owned or acquired by the Borrower;

         (xi)     All books and records (including, without limiting the
generality of the foregoing all electronically recorded data), all whether now
owned or existing or hereafter acquired, created or arising, including, without
in any way limiting the generality of the foregoing, those relating to its
accounts;

                                      - 2 -
<Page>

         (xii)    All deposit accounts and other bank accounts of any kind
maintained by the Borrower with any bank, trust company, investment firm or
fund, or any similar institution or organization;

         (xiii)   All commercial tort claims, letters of credit and letter of
credit rights, as these terms are defined in the Uniform Commercial Code; and

         (xiv)    All proceeds of Collateral of every kind and nature and in
whatever form, including, without limitation, both cash and noncash proceeds
resulting or arising from the rendering of services by the Borrower or the sale
or other disposition by the Borrower of the Inventory or other Collateral and
all insurance proceeds payable under insurance policies relating to any items of
Collateral and rents and profits resulting from the temporary use of Collateral;

         (b)      "Contract Rights" or "contract rights" means the rights of the
Borrower to payment under contracts not yet earned by performance and not
evidenced by instruments or chattel paper.

         (c)      "Inventory" shall include, without limitation, any and all
goods, wares, merchandise and other tangible personal property, including raw
materials, work in process, supplies and components, and finished goods, whether
held by the Borrower for sale or other disposition, and also including any
returned or repossessed Inventory detained from or rejected for entry into the
United States by the appropriate governmental authorities, all products of and
accessions to Inventory and including documents of title, whether negotiable or
nonnegotiable, representing any of the foregoing.

         (d)      "Debtor(s)" shall mean the Borrower's customers who are
indebted to the Borrower.

         (e)      "Obligation(s)" shall include, without limitation, all loans,
advances, indebtedness, notes, liabilities and amounts, liquidated or
unliquidated, owing by the Borrower and/or its parent, subsidiaries or
affiliates, including without limitation, to the Bank at any time, each of every
kind, nature and description, whether arising under this Agreement or otherwise,
and whether secured or unsecured, direct or indirect (that is, whether the same
are due directly by the Borrower to the Bank; or are due indirectly by the
Borrower to the Bank as endorser or guarantor, or as obligor of obligations due
to third persons which have been endorsed or assigned to the Bank; or
otherwise), absolute or contingent, due or to become due, now existing or
hereafter contracted, including, without limitation, all obligations arising
from or related to a Equipment and Commercial Revolving Line of Credit Agreement
of even date, as it may be amended, modified, extended or replaced (hereinafter
the "Credit Agreement"), and any and all overdrafts of Borrower. Said term shall
also include all interest and other charges chargeable to the Borrower and all
costs and expenses referred to in Paragraph 7 of this Agreement.

         (f)      "Patents" shall include all of the Borrower's right, title and
interest, present and future, in and to (a) all letters patent of the United
States or any other country, all right, title and interest therein and thereto,
and all registrations and recordings thereof,

                                      - 3 -
<Page>

including without limitation applications, registrations and recordings in the
United States Patent and Trademark Office or in any similar office or agency of
the United States and State thereof or any other country or any political
subdivision thereof, all whether now owned or hereafter acquired by the
Borrower, and (b) all reissues, continuations, continuations-in-part or
extensions thereof and all licenses thereof; and all proceeds of the foregoing
and all proceeds of any insurance on the foregoing.

         (g)      "Trademarks" shall include all of the Borrower's right, title
and interest, present and future, in and to (a) all trademarks, trade names,
trade styles, service marks, prints and labels on which said trademarks, trade
names, trade styles and service marks have appeared or appear, designs and
general intangibles of like nature, now existing or hereafter adopted or
acquired, all right, title and interest therein and thereto, and all
registrations and recordings thereof, including without limitation applications,
registrations and recordings in the United States Patent and Trademark Office or
in any similar office or agency of the United States, any State thereof, or any
other country or any political subdivision thereof, all whether now owned or
hereafter acquired by the Borrower; (b) all reissues, extensions or renewals
thereof and all licenses thereof; and (c) the goodwill of the business
symbolized by each of the Trademarks, and all customer lists and other records
of the Borrower relating to the distribution of products bearing the Trademarks;
and all proceeds of the foregoing and all proceeds of any insurance on the
foregoing.

         (h)      "Person" or "party" shall include individuals, firms,
corporations and all other entities.

         (i)      "Event of Default" shall mean the occurrence of any one or
more of the Events of Default as defined in the Credit Agreement, or in any
other loan document now or hereafter executed by the Borrower related to the
Obligations, as they may be hereafter amended, modified, substituted or replaced
(collectively the "Loan Documents"), or the occurrence of any of the following
events:

         (1)      This Agreement shall at any time after its execution and
delivery and for any reason cease (a) to create a valid and perfected first
priority security interests in and to the property purported to be subject to
such security agreement or (b) to be in full force and effect or shall be
declared null and void, or the validity or enforceability thereof shall be
contested by the Borrower or any affiliate, subsidiary or guarantor of the
Borrower;

         (i)      "Equipment" shall mean and include all the Borrower's
machinery, equipment, furniture, trade fixtures, motor vehicles, and intending
to include all tangible personal property utilized in the conduct of the
Borrower's business (but excluding therefrom Inventory, as that term is defined
in the Code), and all replacements or substitutions therefor and all accessions
thereto.

         All words and terms used in this Agreement other than those
specifically defined in Paragraph 2, and except as specifically otherwise
provided elsewhere in this Agreement, shall be deemed to have the meanings
accorded to them in the Massachusetts

                                      - 4 -
<Page>

Uniform Commercial Code, as amended from time to time (herein the "Code" or the
"Uniform Commercial Code".

         3.       The Bank hereby authorizes and permits the Borrower to hold,
process, sell, use or consume in the manufacture or processing of finished
goods, or otherwise dispose of the Inventory for fair consideration, all in the
ordinary course of the Borrower's business, excluding, however (but without
limiting the generality of the foregoing), sales to creditors or in bulk or
sales or other dispositions occurring under circumstances which would or could
create any lien or interest adverse to the Bank's security interest or other
rights hereunder in the proceeds resulting therefrom. The Bank also hereby
authorizes and permits the Borrower to receive from the Debtors all amounts due
as proceeds of the Collateral at the Borrower's own cost and expense, and also
liability, if any, subject to the direction and control of the Bank at all
times; and the Bank may at any time, after an Event of Default has occurred,
terminate all or any part of the authority and permission herein or elsewhere in
this Agreement granted to the Borrower with reference to the Collateral.

         Until the Bank shall otherwise notify the Borrower, all proceeds of and
collections of Collateral shall be retained by the Borrower and used solely for
the ordinary and usual operation of the Borrower's business. From and after
notice by the Bank to the Borrower, all proceeds of and collections of the
Collateral shall be held in trust by the Borrower for the Bank and shall not be
commingled with the Borrower's other funds or deposited in any bank account of
the Borrower; and the Borrower agrees to deliver to the Bank on the dates of
receipt thereof by the Borrower, duly endorsed to the Bank or to the bearer, or
assigned to the Bank, as may be appropriate, all proceeds of the Collateral in
the identical form received by the Borrower.

         4.       Prior to an Event of Default, the Borrower may grant such
allowances or other adjustments to Debtor(s) as the Borrower may reasonably deem
to accord with sound business practice, including, without limiting the
generality of the foregoing, accepting the return of all or any part of the
Inventory (subject to the provisions set forth in this Agreement with reference
to returned Inventory). After an Event of Default, no such allowance or
adjustment shall be made without obtaining the Bank's written consent in each
instance.

         5.       Intentionally deleted.

         6.       Intentionally deleted.

         7.       The Borrower shall pay to the Bank any and all costs and
expenses (including, without limitation, reasonable attorney's fees, court
costs, litigation and other expenses) incurred or paid by the Bank in
establishing, maintaining, protecting or enforcing any of the Bank's rights or
the Obligations, including, without limitation, any and all such costs and
expenses incurred or paid by the Bank in defending the Bank's security interest
in, title or right to the Collateral or in collecting or attempting to collect
or enforcing or attempting to enforce payment of the Collateral.

                                      - 5 -
<Page>

         8.       From and after notice to the Borrower pursuant to Paragraph 3,
at the expiration of such period of time after receipt by the Bank as the Bank
determines is reasonably sufficient to allow for clearance or payment of any
items, the cash proceeds of the Collateral shall be credited to the Obligations,
it being specifically understood and agreed, however, that an account
receivable, contract right, general intangible, negotiable or nonnegotiable
instrument (other than a check), or other non-cash proceeds shall not be so
credited until actual payment thereof. All such credits shall, however, be
conditional upon final payment to the Bank of the items giving rise to them and
if any item is not so paid, the amount of any credit given for it shall be
charged as a debit in said Borrower's loan account, if any, or against any
deposit account of the borrower with the Bank, whether or not the item is
returned.

         9.       The Borrower shall hold its books and records relating to the
Collateral in a manner satisfactory to the Bank; and shall deliver to the Bank
from time to time promptly at its request, all invoices, original documents of
title, contracts, chattel paper, instruments and any other writings relating
thereto, and other evidence of performance of contracts, or evidence of shipment
or delivery of the merchandise or of the rendering of services; and the Borrower
will deliver to the Bank promptly at the Bank's request from time to time
additional copies of any or all such papers of writings, and such other
information with respect to any of the Collateral and such schedules of
Inventory, schedules of accounts and such other writings as the Bank may in its
sole discretion deem to be necessary or effectual to evidence any loan hereunder
or the Bank's security interest in the Collateral.

         10.      The Borrower shall promptly make, stamp or record such entries
or legends on the Borrower's books and records or on any of the Collateral as
the Bank shall request from time to time to indicate and disclose that the Bank
has a security interest in such Collateral.

         11.      The Bank, or its representatives, at any time and from time to
time, upon not less than three (3) business days notice (or one (1) days notice
after the occurrence of Event of Default, while such Event of Default is
continuing) shall have the right, and the Borrower will permit them:

                  (a)      to examine, check, make copies of or extracts from
                  any of the Borrower's books, records and files (including,
                  without limitation, orders, and original correspondence);

                  (b)      to inspect and examine the Borrower's Inventory or
                  other Collateral and to check and test the same as to quality,
                  quantity, value and condition; and the Borrower agrees to
                  reimburse the Bank for its reasonable costs and expenses in so
                  doing; and

                  (c)      to verify the Collateral or any portion or portions
                  thereof or the Borrower's compliance with the provisions of
                  this Agreement.

                                      - 6 -
<Page>

         12.      The. Borrower will execute and deliver to the Bank any
writings and do all things necessary, effectual or requested by the Bank to
carry into effect the provisions and intent of this Agreement, or to vest more
fully in or assure to the Bank (including, without limitation, all steps to
create and perfect) the security interest in the Collateral granted to the Bank
by this Agreement or to comply with applicable statute or law and to facilitate
the collection of the Collateral, including the furnishing at the Borrower's own
cost and expense, at such intervals as the Bank may establish from time to time,
of reports, financial data arid analyses satisfactory to the Bank.

         13.      The Borrower covenants with and warrants to the Bank:

         (a)      That all Equipment and Inventory in which the Bank is now or
hereafter given a security interest pursuant to this Agreement will at all times
be kept and maintained in good order and condition at the sole cost and expense
of the Borrower.

         (b)      That the Borrower will maintain in force one or more policies
of insurance on all Equipment, Inventory and all other tangible Collateral
against risks of fire (with customary extended coverage), sprinkler leakage,
theft, loss or damage and other risks customarily insured against by companies
engaged in businesses similar to that of the Borrower in such amounts,
containing such terms, in such form, for such periods, covering such hazards and
written by such companies as may be satisfactory to the Bank, such insurance to
be payable to the Bank as its interest may appear in the event of loss; the
policies for the same shall be deposited with the Bank; no loss shall be
adjusted thereunder without the Bank's approval; and all such policies shall
provide that they may not be canceled without first giving at least ten (10)
days' written notice of cancellation to the Bank. In the event that the Borrower
fails to provide evidence of the maintenance of such insurance satisfactory to
the Bank, the Bank may, at its option, secure such insurance and charge the cost
thereof to the Borrower and as a debit charge in the Borrower's loan account, if
any, or any other accounts of the Borrower with the Bank. At the option of the
Bank, all insurance proceeds received from any loss or damage to any of the
Collateral which, in the aggregate with the loss or damage to all other
Collateral caused by the same or any related occurrence, is estimated to total
Twenty-Five 'Thousand ($25,000.00) Dollars or more shall be applied either to
the replacement or repair thereof or as a payment on account of the Obligations.

         (c)      That at the date hereof the Borrower is (and as to Collateral
that the Borrower may acquire after the date hereof, will be) the lawful owner
of the Collateral, and that the Collateral, and each item thereof, is, will be,
and shall continue to be free of all restrictions, liens, encumbrances, or other
right, title or interest (other than the security interest therein granted to
the Bank hereby and, except as set forth on Exhibit A hereto), credits,
defenses, recoupments, set-offs, or counterclaims whatsoever; that the Borrower
has and will have full power and authority to grant to the Bank a security
interest in, and will not transfer, assign, sell (except sales or other
dispositions in the ordinary course of business in respect to Inventory as
expressly permitted in Paragraph 3 of this Agreement), pledge, encumber, subject
to lien or grant any security interest in any of the Collateral (or any of the
Borrower's right, title or interest therein) to any person other than the Bank;
that to the best of Borrower's knowledge and belief, the Collateral is and will
be valid and

                                      - 7 -
<Page>

genuine in all respects; and that to the best of Borrower's knowledge and
belief, all accounts receivable arise out of legally enforceable and existing
contracts, in accordance with their tenor; and that upon the Borrower's
acquisition of any interest in contract rights, it shall in writing immediately
notify the Bank thereof, specifically identifying the same as contract rights,
and, except for such contract rights, no part of the Collateral (or the validity
or enforceability by the Bank thereof) is or shall be contingent upon the
fulfillment of any agreement or condition whatsoever and that the Collateral,
other than Inventory, shall represent unconditional and undisputed bona fide
indebtedness by the Debtor for sales or leases of Inventory shipped and
delivered or services rendered by the Borrower to Debtor, and is not and will
not be subject to any discount (except such cash or trade discounts as may be
shown on any invoice, contract or other writing delivered to the Bank); and that
the Borrower will warrant and defend the Bank's right to and interest in the
Collateral against all claims and demands of all persons whatsoever.

         (d)      That no contract right, account, general intangible or chattel
paper is or will be represented by any note or other instrument (negotiable or
otherwise), and that no contract right, account or general intangible is, or
will be represented by any conditional or installment sales obligation or other
chattel paper, except such instruments or chattel paper as have been or
forthwith upon receipt by the Borrower will be delivered to the Bank (duly
endorsed or assigned, as may be appropriate), such delivery, in the case of
chattel paper, to include all executed copies except those in the possession of
the installment buyer (provided, that if the Bank elects to leave chattel paper
in the possession of the Borrower, such procedure shall be subject to the
Borrower's compliance with the provisions of Paragraph 10 hereof and to the
Bank's right to require delivery and endorsement or assignment of such chattel
paper by the Borrower to the Bank whenever the Bank shall so request); and that
any security for or guaranty of any of the Collateral shall be delivered to the
Bank immediately upon receipt thereof by the Borrower, with such assignments and
endorsements thereof as the bank may request.

         (e)      (i)      That, except as the Bank may otherwise approve in
writing, and except for sale, processing, use, consumption or other disposition
in the ordinary course of business pursuant to Paragraph 3 of this Agreement,
the Borrower will keep all Inventory at one or more of the locations specified
in the preamble to this Agreement or such other locations as the Borrower
designates in writing to the Bank by notice given at least thirty (30) days
prior to the relocation of such inventory.

                  (ii)     That the Borrower shall, during the term of this
Agreement, keep the Bank currently and accurately informed in writing of each
location where the Borrower's records relating to its accounts and contract
rights, respectively, are kept, and shall not remove such records, or any of
them, to another state without giving the Bank at least thirty (30) days'
prior written notice thereof.

                  (iii)    That the Borrower's chief executive office is
correctly stated in the preamble to this Agreement, that the Borrower shall,
during the term of this Agreement, keep the Bank currently and accurately
informed writing of each of its other places of business, and that the
Borrower shall not change the location of such chief office or open

                                      - 8 -
<Page>

any new, or close, move or change any existing or new place of business without
giving the Bank at least thirty (30) days' prior written notice thereof.

         (f)      That the Bank shall not be deemed to have assumed any
liability or responsibility to the Borrower or any third person for the
correctness, validity or genuineness of any instruments or documents that may be
released or endorsed to the Borrower by the Bank (which shall automatically be
deemed to be without recourse to the Bank in any event), or for the existence,
character, quantity, quality, condition, value or delivery of any goods
purporting to be represented by any such documents; and that the Bank, by
accepting such security interest in the Collateral, or by releasing any
Collateral to the Borrower, shall not be deemed to have assumed any obligation
or liability to any supplier or Debtor or to any other third party, and the
Borrower agrees to indemnify and defend the Bank and hold it harmless in respect
to any claim or proceeding arising out of any matter referred to in this
Paragraph 13(f).

         (g)      Intentionally deleted

         (h)      That the Borrower will immediately notify the Bank of any loss
or damage to, or material diminution in or any occurrence which would adversely
affect the value of, the Inventory or other Collateral. In the event that the
Bank, in its sole discretion, shall determine that there has been any such loss,
damage or material diminution in value, the Borrower will, whenever the Bank so
requests, pay to the Bank within such period as the Bank shall specify such
amount as the Bank, in its sole discretion, shall have determined represents
such loss, damage or material diminution in value (any such payment, however,
not to affect the Bank's security interest in such Inventory or other
Collateral).

         (i)      That the Bank may from time to time in the Bank's discretion
hold and treat any deposits or other sums at any time credited by or due from
the Bank to the Borrower and any securities or other property of the Borrower in
the possession of the Bank, whether for safekeeping or otherwise, as collateral
security for and apply or set the same off against any Obligations after an
Event of Default has occurred. Without limiting the generality of the foregoing,
if at any time the amount of the revolving credit as then set by the Bank shall
be exceeded, the Borrower shall pay cash to the Bank in the amount of such
excess if the Bank so requests, or the Bank may charge such amount against any
deposit account of the Borrower with the Bank.

         (j)      That if any of the Collateral includes a charge for, or if any
loan by the Bank to the Borrower shall be subject to any tax payable to any
government al taxing authority, the Borrower shall pay such. tax independently
when due. The Bank may retain the full proceeds of the Collateral and the
Borrower will indemnify and save the Bank harmless from any loss, cost,
liability or expense (including, without limitation, reasonable attorney's
fees), in connection therewith.

         (k)      That at any time or times and whether or not an Event of
Default has occurred, the Bank may notify any Debtor or Debtors of its security
interest in the Collateral and Collect all amounts due thereon; and the Borrower
agrees, at the request of the Bank, to notify all or any of the Debtors in
writing of the Bank's security interest in

                                      - 9 -
<Page>

the Collateral in whatever manner the Bank requests, and if the Bank so
requests, to permit the Bank to mail such notices at the Borrower's expense.

         (l)      That the Bank may, at its option, from time to time, discharge
any taxes, liens or encumbrances on any of the Collateral, or take any other
action that the Bank may deem proper to repair, maintain or preserve any of the
Collateral, and the Borrower will pay to the Bank on demand or the Bank in its
sole discretion may charge to the Borrower all amounts so paid or incurred by it
or as a debit charge against the Borrower's loan account, if any, or any other
deposit account of the Borrower with the Bank

         (m)      If any of Borrower's accounts arise out of contracts with the
United States or any department, agency, or instrumentality thereof, Borrower
will immediately notify Bank thereof in writing and execute any instruments and
take any steps required by Bank in order that all monies due and to become due
under such contracts-shall be assigned to Bank and notice thereof given to the
Government under the Federal Assignment of Claims Act.

         (n)      That all representations now or hereafter made by the Borrower
to the Bank, whether in this Agreement or in any supporting or supplemental
reports, statements or documentation, including, without limitation, statements
relating to the Collateral and financial statements, are, and will be, at and as
of the date when made true and correct in all respects.

         (o)      That the Equipment shall always remain personal property
regardless of its attachment to realty in any manner, and if this [ ] is
checked: (i) the Equipment is to be attached to the real estate described as
follows: (ii) the record owner of which real estate is: and (iii) the Borrower
will deliver to the Bank, in form and substances satisfactory to the Bank, a
disclaimer of any interest in the Collateral executed by all persons now or
hereafter claiming any interest in said real estate.

         (p)      Except for the Bank's gross negligence or willful misconduct,
Borrower will indemnify and save Bank harmless from all loss, costs, damage,
liability or expenses (including, without limitation, court costs and reasonable
attorneys, fees) that Bank may sustain or incur by reason of defending or
protecting this security interest or the priority thereof or enforcing the
Obligations, or in the prosecution or defense of any action or proceeding
concerning any matter growing out of or in connection with this Agreement and/or
any other documents now or hereafter executed in connection with this Agreement
and/or the Obligations and/or the Collateral. This indemnity shall survive the
repayment of the Obligations and the termination of Bank's agreement to make
loans available to Borrower and the termination of this Agreement.

         (q)      Intentionally Omitted

         (r)      Borrower hereby grants to Bank for a term to commence on the
date of this Agreement and continuing thereafter until all debts and Obligations
of any kind or character owed to Bank are fully paid and discharged, a
non-exclusive irrevocable royalty-free license in connection with the Bank's
exercise of its rights hereunder, to use,

                                     - 10 -
<Page>

apply or affix any trademark, trade name logo or the like and to use any
patents, in which the Borrower now or hereafter has rights, which license may be
used by Bank upon and after the occurrence of any one or more of the Events of
Default, provided, however, that such use by Bank shall be suspended if such
Events of Default are cured. This license shall be in addition to, and not in
lieu of, the inclusion of all of Borrower's trademarks, service marks,
tradenames, logos, goodwill, patents, franchises and licenses in the Collateral;
in addition to the right to use said Collateral as provided in this paragraph,
Bank shall have full right to exercise any and all of its other rights regarding
Collateral with respect to such trademarks, service marks, tradenames, logos,
goodwill, patents, franchises and licenses.

         14.      The Borrower hereby irrevocably constitutes and appoints the
Bank as the Borrower's true and lawful attorney, with full power of
substitution, at the sole cost and expense of the Borrower but for the sole
benefit of the Bank, to be exercised only after an Event of Default, to convert
the Collateral into cash, including without limitation, completing the
manufacture or processing of work in process, and the sale (either public or
private) of all or any portion or portions of the Inventory and other
Collateral; to enforce collection of the Collateral, either in its own name or
in the name of the Borrower, including, without limitation, executing releases,
compromising or settling with any Debtors and prosecuting, defending,
compromising or releasing any action relating to the Collateral; to receive,
open and dispose of all mail addressed to the Borrower and to take therefrom any
remittances or proceeds of Collateral in which the Bank has a security interest;
to notify Post Office authorities to change the address for delivery of mail
addressed to the Borrower to such address as the Bank shall designate; to
endorse the name of the Borrower in favor of the Bank upon any and all checks,
drafts, money orders, notes, acceptances or other instruments of the same or
different nature; to sign and endorse the name of the Borrower on and to receive
as secured party any of the Collateral, any invoices, schedules of Collateral,
freight or express receipts, or bills of lading, storage receipts, warehouse
receipts, or other documents of title of the same or different nature relating
to the Collateral; to sign the name of the Borrower or any notice to the Debtors
or on verification of the Collateral; and to sign and/or file or record on
behalf of the Borrower any financing or other statement in order to perfect or
protect the Bank's security interest, without any signature of the Debtor to the
extent permitted by any applicable law. The Bank shall not be obliged to do any
of the acts or exercise any of the powers hereinabove authorized, but if the
Bank elects to do any such act or exercise any such power, it shall not be
accountable for more than it actually receives as a result of such exercise of
power, and it shall not be responsible to the Borrower except for willful
misconduct in bad faith. All powers conferred upon the Bank by this Agreement,
being coupled with an interest, shall be irrevocable so long as any Obligation
of the Borrower to the Bank shall remain unpaid.

         Whenever the Bank deems it desirable that any legal action be
instituted with respect to any Collateral or that any other action be taken in
an attempt to effectuate collection of any Collateral, the Bank may reassign the
item in question to the Borrower (and if the Bank shall execute any such
reassignment, it shall automatically be deemed to be without recourse to the
Bank in any event) and require the Borrower to proceed with such legal or other
action at the Borrower's sole liability, cost and expense, in which

                                     - 11 -
<Page>

event all amounts collected by the Borrower on such item shall nevertheless be
subject to the provisions of the last sentence of Paragraph 3 of this Agreement.

         15.      The Bank is hereby authorized, at its election, at any time or
times after an Event of Default events has occurred, or without any further
demand or notice except to such extent as notice may be required by applicable
law, to sell or otherwise dispose of all or any of the Collateral at public or
private sale; and the Bank may also exercise any and all other rights and
remedies of a secured party under the Code or which are otherwise accorded to it
by applicable law, all as the Bank may determine. If notice of a sale or other
action by the Bank is required by applicable law, the Borrower agrees that five
(5) days' written notice to the Borrower, or the shortest period of written
notice permitted by such law, whichever is larger, shall be sufficient; and that
to the extent permitted by such law, the Bank, its officers, attorneys and
agents may bid and become purchasers at any such sale, if public, and may
purchase at any private sale any of the Collateral that is of a type customarily
sold on a recognized market or which is the subject of widely distributed
standard price quotations, and any sale (public or private) shall be free from
any right of redemption, which the Borrower hereby waives and releases. No
purchaser at any sale (public or private) shall be responsible for the
application of the purchase money. Any balance of the net proceeds of sale
remaining after paying all direct Obligations of the Borrower to the Bank, and
all costs and expenses of manufacturer, processing, completion or installation
of the Inventory; collection, storage, custody, sale and delivery of the
Inventory, the Equipment, and/or the Collateral, including, without limitation,
reasonable attorneys' fees, and after retaining as collateral security or
applying as the Bank may elect (in whole or in part at any time and from time to
time) amounts equal to the aggregate of all other Obligations shall be returned
to the Borrower or to such other party as may be legally entitled thereto; and
if there is a deficiency, the Borrower shall be responsible for the same, with
interest. Upon demand by the Bank, the Borrower shall assemble the Collateral
and make it available to the Bank at a place designated by the Bank which is
reasonably convenient to the Bank and the Borrower.

         16.      The Borrower waives notice of nonpayment, demand, presentment,
protest or notice of protest of the Collateral, and all other notices, consents
to any renewals or extensions of time of payment thereof, and generally waives
any and all suretyship defenses and defenses in the nature thereof. No delay or
omission of the Bank in exercising or enforcing any of its rights, powers,
privileges, remedies, immunities or discretions (all of which are hereinafter
collectively referred to as the "Bank's rights and remedies") hereunder shall
constitute a waiver thereof; and no waiver by the Bank of any default of the
Borrower hereunder shall operate as a waiver of any other default hereunder. No
term or provision hereof shall be waived, altered or modified except with the
prior written consent of the Bank, which consent makes explicit reference to
this Agreement. Except as provided in the preceding sentence, no other agreement
or transaction, of whatsoever nature, entered into between the Bank and the
Borrower at any time (whether before, during or after the effective date or term
of this Agreement), shall be construed in any particular as a waiver,
modification or limitation of any of the Bank's rights and remedies under this
Agreement (nor shall anything in this Agreement be construed as a waiver,
modification or limitation of any of the Bank's rights and remedies

                                     - 12 -
<Page>

under any such other agreement or transaction) but all of the Bank's rights and
remedies not only under the provisions of this Agreement but also under any such
other agreement or transaction shall be cumulative and not alternative or
exclusive, and may be exercised by the Bank at such time or times and in such
order of preference as the Bank in its sole discretion may determine.

         17.      If any provision of this Agreement or portion of such
provision or the application thereof to any person or circumstance shall to any
extent be held invalid or unenforceable, the remainder of this Agreement (or the
remainder of such provision) and the application thereof to other persons or
circumstances shall not be affected thereby.

         18.      This Agreement shall be binding upon and inure to the benefit
of the respective successors and assigns of the parties hereto, and shall remain
in full force and effect (and the Bank shall be entitled to rely thereon,
notwithstanding payment of all Obligations of the Borrower to the Bank at any
time or times) until terminated as to future transactions by written notice from
either party to the other party of the termination hereof; provided that any
such termination shall not release or affect any Collateral in which the bank
already has a security interest or any Obligations incurred or rights accrued
hereunder prior to the effective date of such notice (as hereinafter defined) of
such termination. Notwithstanding any such termination, the Bank shall have a
security interest in all Collateral to secure the payment and performance of
Obligations arising after such termination as a result of commitments or
undertakings made or entered into by the Bank prior to such termination. Upon
the later to occur of the effective date of any such termination and the date on
which all Obligations are paid in full, the Bank shall terminate its security
interests in the Collateral and the Bank shall deliver to Borrower termination
statements with respect thereto. The Bank may transfer and assign this Agreement
and deliver the Collateral to the assignee, who shall thereupon have all of the
rights and obligations of the Bank; and the Bank shall then be relieved and
discharged of any responsibility or liability with respect to this Agreement and
the Collateral.

         19.      Intentionally Omitted

         20.      This Agreement is intended to take effect as a sealed
instrument and has been executed or completed and is to be performed in
Massachusetts, and it and all transactions thereunder or pursuant thereto shall
be governed as to interpretation, validity, effect, rights, duties and remedies
of the parties thereunder and in all other respects by the domestic laws of The
Commonwealth of Massachusetts.

         21.      Notwithstanding the existence of any other security interests
in the Collateral described in this Agreement held by the Bank or by any other
party, or the existence of any other mortgage or security interest in any other
property or collateral of the Borrower or of any co-obligor, guarantor or
endorser held by the Bank or any other party, the Bank shall have the right to
determine the order in which any or all of said collateral and property,
including the Collateral, shall be subjected to the remedies provided herein and
in any other security agreement or mortgage granted by the Borrower or any other
party and the right to determine the order in which any or all portions of the
Obligations secured hereby are satisfied from the proceeds realized upon

                                     - 13 -
<Page>

the exercise of the remedies provided herein or therein. The Borrower and any
party who consents to this interest in the said Collateral and other property
and who has actual or constructive notice hereof hereby waives and shall be
deemed to have waived any and all rights to require the marshalling of assets in
connection with the exercise of any of the remedies permitted by applicable law
or provided herein.

         22.      Any notices under or pursuant to this Agreement shall be
deemed duly received by the Borrower and effective if delivered in hand to any
officer or agent of the Borrower, or if mailed by registered or certified mail,
return receipt requested, addressed to the Borrower at the Borrower's last
address on the Bank's records.

         Any notices to the Bank under or pursuant to this Agreement shall be
mailed to the Bank by registered, certified, or express mail, return receipt
requested, addressed to the Bank as follows:

                  Citizens Bank of Massachusetts
                  331 Montvale Avenue
                  Woburn, MA 01801
                  Attn: Nathan E. Pusey

         and shall be deemed effective two (2) business days after receipt by
         the Bank,

                               HITITTE MICROWAVE CORPORATION

                               By: /s/ Yalcin Ayasli
                                   --------------------------------------------
                               Name: Dr. Yalcin Ayasli, President and Treasurer

                               CITIZENS BANK OF MASSACHUSETTS

                               By: /s/ Nathan E. Pusey
                                   --------------------------------------------
                               Name: Nathan E. Pusey, Vice President

                                     - 14 -
<Page>

                        THE COMMONWEALTH OF MASSACHUSETTS

Middlesex, ss                                                   October __, 2001

         Then personally appeared Yalcin Ayasli, President and Treasurer of
Hittite Microwave Corporation, known to me, and acknowledged the foregoing to be
his duly authorized and free act and deed as President and Treasurer and the
free act and deed of Hittite Microwave Corporation.

                               /s/ William Sylvanowicz
                               ------------------------------------------
                               Notary Public
                               My commission expires:  February 8, 2002

                                     - 15 -

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