Document:

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                                                                     EXHIBIT 4.3

                    COLLATERAL AGENCY AND SECURITY AGREEMENT

                  THIS COLLATERAL AGENCY AND SECURITY AGREEMENT, dated as of
April 23, 2003 (this "Agreement"), among ELCOM INTERNATIONAL, INC., a Delaware
corporation (the "Company"), Andres Escallon, as Collateral Agent ("Collateral
Agent") and the holders of the Debentures which are signatories hereto (the
"Secured Parties");

                                   WITNESSETH:

                  WHEREAS, the Company shall from time to time issue 10%
Convertible Senior Debentures (the "Debentures") in a 2003 private placement
(the "Offering") pursuant to a Subscription Agreement between the Company and
each Secured Party, a copy of which agreement is available for inspection at the
Company's principal office at 10 Oceana Way, Norwood, Massachusetts 02062;

                  WHEREAS, the Secured Parties have conditioned their purchase
of the Debentures upon the Company's granting a security interest in favor of
the Secured Parties as contemplated hereby;

                  WHEREAS, the Secured Parties desire to appoint a collateral
agent for the purposes of facilitating the perfection and enforcement of the
security interests created hereby;

                  In consideration of the mutual promises hereof, and other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the parties hereby agree as follows:

                  1. Defined Terms. Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the
Debentures. As used in this Agreement, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and the plural forms of the terms defined).

                  "Agreement" means this Agreement (including without limitation
each amendment, if any) unless the context otherwise clearly requires.

                  "Collateral" means all of the personal property and
intellectual property of the Company, wherever located, and now owned or
hereafter acquired, including without limitation: Accounts, Chattel Paper,
Inventory, Equipment, Instruments, Investment Property, Documents, Deposit
Accounts, Letter-of-Credit Rights, General Intangibles (including Payment
Intangibles), Supporting Obligations; and to the extent not listed above as
original collateral, Proceeds and Products of the foregoing (each capitalized
term used herein which is defined in Article 8 or Revised Article 9 of the UCC
has the meaning ascribed to such term by the UCC).
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                  "Debentures" means the 10% Convertible Senior Debentures
issued by the Company from time to time in the Offering, as the same may be
amended or supplemented from time to time.

                  "Event of Default" means the occurrence of any event which
constitutes an Event of Default under the Debentures.

                  "Lien" means any lien, security interest or other charge or
encumbrance of any kind, or any other type of preferential arrangement,
including, without limitation, the lien or retained security title of a
conditional vendor and any easement, right of way or other encumbrance on title
to real property.

                  "Obligations" shall mean all financial and other obligations
of the Company to the holders of the Debentures pursuant to the Debentures and
all Related Expenses.

                  "Permitted Liens" means (a) Liens for taxes not yet due or
which are being actively contested in good faith by appropriate proceedings and
for which adequate reserves have been established in accordance with generally
accepted accounting principles, (b) other statutory Liens incidental to the
conduct of the Company's business or the ownership of the Collateral or other
assets which do not in the aggregate materially detract from the value of the
Collateral or materially impair the use thereof in the operation of the
Company's business, (c) any Lien created hereunder, and (d) purchase money Liens
on fixed assets provided that such Lien only attaches to the property being
acquired and secures only that amount necessary for the acquisition of such
property.

                  "Ratable Portion" means, with respect to any Secured Party,
the quotient (expressed as a percentage) obtained at any time by dividing (x)
the principal amount of such Secured Party's Debenture(s) by (y) the sum of the
aggregate amount of all outstanding Debentures.

                  "Related Expenses" means any and all costs, liabilities, and
expenses (including without limitation, losses, damages, penalties, claims,
actions, reasonable attorney's fees and legal expenses, judgments, suits, and
disbursements) incurred by, imposed upon, or asserted against, the Collateral
Agent or any Secured Party in connection with any attempt by the Collateral
Agent or any Secured Party: (a) to preserve, perfect, or enforce any security
interest evidenced by this Agreement, (b) to obtain payment, performance, and
observance of any and all of the Obligations to the extent specified herein or
in the Debentures, (c) to maintain, insure, collect, preserve, repossess, and
dispose of any of the Collateral, or (d) incidental or related to (a) through
(c) above including, without limitation, interest thereupon from the date
incurred, imposed, or asserted until paid at the rate payable with respect to
the Debentures, but in no event greater than the highest rate permitted by law.

                  "Required Secured Parties" means Secured Parties holding at
least fifty-one percent (51%) of the aggregate amount of the Obligations
outstanding under the Debentures at the time of determination.

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                  "UCC" means the Uniform Commercial Code as in effect from time
to time in the Commonwealth of Massachusetts.

                  2. Security. The Company grants a security interest in the
Collateral to the Collateral Agent, for the benefit of the Purchasers, to secure
the payment or performance of the Obligations.

                  3. Representations and Warranties: In addition to the
representations and warranties set forth in the Debenture, the Company
represents and warrants to Collateral Agent and the Secured Parties as follows:

                  3.01 Company's chief executive office is located at 10 Oceana
Way, Norwood, Massachusetts 02062. All of Company's records relating to Accounts
are located at its aforesaid chief executive office.

                  3.02 Except in the case of Inventory being shipped to or from
Company in the ordinary course of business, all Collateral consisting of Goods
is located at those locations set forth on Schedule A attached hereto. Except as
set forth on Schedule A hereto, such premises are owned by the Company.

                  3.03 The Company's state of incorporation is the State of
Delaware, and the Company's exact legal name is as set forth in the first
paragraph of this Agreement.

                  3.04 The Company has rights in or the power to transfer the
Collateral, and its title to the Collateral is free of all adverse Liens (other
than Permitted Liens) and restrictions on transfer or pledge, except as created
by this Security Agreement and except as permitted by the Debentures.

                  4. Perfection; Possession; Control. The Company authorizes the
Collateral Agent to file one or more financing statements (the "Financing
Statements") describing the Collateral. The Company shall have possession of the
Collateral, except where expressly otherwise provided in this Security Agreement
or where the Collateral Agent chooses to perfect its security interest by
possession in addition to the filing of the Financing Statements. Where
Collateral is in the possession of a third party, the Company will, upon the
Collateral Agent's request, join with the Collateral Agent in notifying the
third party of the Collateral Agent's security interest and obtaining an
acknowledgment from the third party that such third party is holding the
Collateral for the benefit of the Collateral Agent. The Company will cooperate
with the Collateral Agent in obtaining control with respect to the Collateral
consisting of Deposit Accounts, Investment Property, Letter-of-Credit Rights and
Electronic Chattel Paper.

                  5. Further Assurances. The Company will make and do all such
acts and things as the Collateral Agent may from time to time reasonably require
for the better evidencing, validation, perfection or other protection of its
security interest or to enable it to enforce its rights and remedies hereunder
with respect to any Collateral, all at Company's expense.

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                  6. Collateral Agent May Perform. Unless otherwise provided
herein, if Company fails to perform any agreement contained herein, upon ten
(10) days' prior notice, Collateral Agent may, and upon the request of the
Required Secured Parties shall, itself perform or cause performance, of such
agreement, and the expenses of Collateral Agent incurred in connection therewith
shall be payable by Company under Section 15 hereof. However, the powers
conferred on Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, Collateral Agent shall
have no duty as to any Collateral or as to the taking of any necessary steps to
preserve rights against prior parties or any other rights pertaining to any
Collateral.

                  7. Schedules. Upon request by Collateral Agent, Company will
furnish to Collateral Agent as of the date hereof and from time to time
hereafter statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral as
Collateral Agent may reasonably request, all in reasonable detail.

                  8. Change of Name; State of Incorporation; Corporate
Existence. Without the Collateral Agent's prior written consent, the Company
will not (a) change the state of its incorporation, (b) change its corporate
name without providing Collateral Agent with 30 days' prior written notice, or
(c) in one transaction or a series of transactions, merge into or consolidate
with any other entity, or sell all or substantially all of its assets.

                  9. Transfer of Collateral; Liens; Locations. Without
Collateral Agent's prior written consent, Company will not (a) sell or otherwise
transfer the Collateral or any part thereof (other than (i) Inventory in the
ordinary course of business and (ii) Equipment which shall, in the good faith
judgment of the Company, have become obsolete or no longer useful in the
business of the Company) outside the ordinary course of business, (b) permit a
Lien on the Collateral except for Permitted Liens, or (c) move or permit anyone
else to move material amounts of the Collateral or any part thereof from the
location or locations specified herein in Schedule A, provided, however, that
Collateral may be moved to different locations without the Collateral Agent's
prior written consent if (i) the Collateral Agent is notified of the new
location within 10 days after such moving, and (ii) the Collateral Agent's Lien
on such Collateral continues to be a perfected Lien in such new location.

                  10. Insurance. The Company shall, at its own expense, insure
the Collateral at all times against such risks as is customary for businesses of
the type owned by the Company and will provide the Collateral Agent with
evidence thereof as often as the Collateral Agent shall reasonably request. Each
policy of insurance shall (a) name the Collateral Agent as a loss payee as its
interest shall appear and (b) provide for not less than thirty (30) days' prior
written notice to the Collateral Agent of the cancellation of or any material
reduction in coverage provided by such policy. If the Company fails to maintain
satisfactory insurance, the Collateral Agent as the Company's agent may, but
shall not be required to, immediately obtain such insurance or obtain insurance
covering only the Collateral Agent's interest; if the Collateral Agent elects to
do either, the Company shall repay upon demand all amounts the Collateral Agent
so expends, and, until such repayment, such amounts shall be part of the
Obligations hereunder.

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                  11. Remedies. Upon the occurrence and continuation of an Event
of Default, in addition to the rights and remedies provided for elsewhere in
this Agreement, and under the UCC, the Collateral Agent may, and upon the
request of the Required Secured Parties shall, exercise the following rights and
remedies:

                  11.01 Possession of Collateral. The Collateral Agent may, and
upon the request of the Required Secured Parties shall, take immediate
possession of the Collateral and all Proceeds relating to such Collateral and:
(a) exercise any and all rights and remedies of the Company in respect of the
Collateral, (b) require the Company, at the Company's expense, to assemble the
Collateral and make it available to the Collateral Agent at the Company's
Norwood, Massachusetts-area facilities, (c) enter any of the premises of the
Company or wherever any Collateral shall be located and to keep and store the
same on such premises until sold. If the premises on which the Collateral is
located is owned or leased by the Company, then the Company shall not charge the
Collateral Agent for storage of such Collateral on such premises, occupy any
premises owned or leased by Company where the Collateral or any part thereof is
assembled for a reasonable period in order to effectuate its rights and remedies
hereunder or under law, without obligation to Company in respect of such
occupation and Collateral Agent may exclude Company, its agents, employees and
servants therefrom, and having and holding the same may use, operate, manage and
conduct the business of Company and do any acts which it deems necessary or
desirable to preserve the value and marketability of the Collateral, or any part
thereof or interest therein, all without prior notice to Company, except as
specifically provided below with respect to a formal public or private sale
(including, without limitation, the right to fill and ship in accordance with
then existing purchase orders, the right to solicit orders; and to do all such
things and acts as Collateral Agent deems reasonably necessary or desirable in
order to maximize the value of the Collateral) and upon every such entry,
Collateral Agent, at the expense of Company, shall have the right to manage and
operate and carry on the business thereof and exercise all rights and powers of
Company with respect thereto in the name of Company or otherwise as is
reasonably deemed appropriate, after deducting the expenses of conducting the
business thereof and of all maintenance, repairs, replacements, alterations,
additions, betterments and improvements and amounts necessary to pay for taxes,
assessments, insurance and prior insurance or other proper charges upon the
Collateral, Company's business or any part thereof, as well as just and
reasonable compensation for its services and for all attorneys, counsel, agents,
clerks, servants and other employees by it engaged and employed, shall apply the
moneys arising as aforesaid pursuant to the provisions of this Agreement (except
as required by applicable law, nothing contained herein shall be construed to
impose upon Collateral Agent any obligation to preserve or protect the
Collateral or Company's business following the occurrence of an Event of
Default). Collateral Agent may demand that Company deliver to Collateral Agent
all of Company's books and records in respect of the Collateral.

                  11.02 Notification of Account Debtors. Company irrevocably
authorizes and directs each account debtor to honor any demand by Collateral
Agent that all payments in the respect of the Accounts thereafter be paid
directly to Collateral Agent.

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                  11.03 Enforcement of Accounts. Collateral Agent may, and upon
the request of the Required Secured Parties shall, enforce payment of the
Accounts by suit or otherwise, but Collateral Agent shall have no duty to
institute any suit or to take any other action to enforce the Accounts (or any
security therefor) or, having started any such suit or attempt, thereafter to
continue the same. In each case Collateral Agent may proceed with counsel of
Collateral Agent's choosing and Company agrees to reimburse Collateral Agent for
Collateral Agent's out-of-pocket costs and expenses including, without
limitation, attorney's fees, court costs and costs of sale.

                  11.04 Foreclosure of Liens. The Collateral Agent may, and upon
the request of the Required Secured Parties shall, foreclose the Liens created
under this Agreement or under any other agreement relating to the Collateral.

                  11.05 Disposition of Collateral. The Collateral Agent may, and
upon the request of the Required Secured Parties shall, sell or to otherwise
dispose of all or any Collateral in its then condition, or after any further
manufacturing or processing thereof, at public or private sale or sales,
wholesale dispositions, or sales pursuant to one or more contracts, with such
notice as may be required by law, in lots or in bulk, for cash or on credit, all
as the Collateral Agent, in its discretion, may deem advisable in accordance
with applicable laws. The Collateral Agent shall have the right to conduct such
sales on the Company's premises, without charge therefor, and such sales may be
adjourned from time to time in accordance with applicable law without further
requirement of notice to the Company. Each Secured Party shall have the right to
bid or credit bid any such sale on its own behalf.

                  11.06 Application of Collateral. The Collateral Agent, with or
without proceeding with sale or foreclosure or demanding payment of the
Obligations, shall have the right, without notice, at any time, to appropriate
and apply to any Obligations any and all Collateral in the possession of the
Collateral Agent or the Secured Parties.

                  12.      The Collateral Agent.

                  12.01 Appointment as Collateral Agent. Each Secured Party
irrevocably appoints the Collateral Agent to act as Collateral Agent under this
Agreement and any other agreements affecting the Collateral for the benefit of
such Secured Party, with full authority to take such actions, and to exercise
such powers, on behalf of the Secured Parties in respect of this Agreement and
the other agreements with respect to the Collateral as are herein and therein
respectively delegated to the Collateral Agent or as are reasonably incidental
to those delegated powers. The Collateral Agent in such capacity shall be deemed
to be an independent contractor of the Secured Parties. Each Secured Party
hereby expressly agrees that, unless requested by the Collateral Agent upon the
concurrence of the Required Secured Parties, none of the Secured Parties will
take or cause to be taken, in respect of the Obligations or the Collateral, any
action or remedy that is independent from the actions or remedies taken or to be
taken (or the decision not to take any action or remedy) by the Collateral
Agent.

                  12.02 Nature of Appointment. The Collateral Agent shall have
no fiduciary relationship with any Secured Party by reason of this Agreement or
any other agreement relating

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to the Collateral. The Collateral Agent shall not have any duty or
responsibility whatsoever to any Secured Party except those expressly set forth
in this Agreement. Without limiting the generality of the foregoing, each
Secured Party acknowledges that the Collateral Agent is acting as such solely as
a convenience to the Secured Parties and not as a manager of the Obligations
evidenced by the Debentures. This Section 12 does not confer any rights upon the
Company or anyone else (except the Secured Parties), whether as a third party
beneficiary or otherwise.

                  12.03 Collateral Agent as a Secured Party; Other Transactions.
The Collateral Agent's rights as a Secured Party under this Agreement shall not
be affected by its serving as the Collateral Agent. The Collateral Agent and its
Affiliates may generally transact any Secured Party, financial, trust, advisory
or other business with the Company without notice to the Secured Parties,
without accounting to the Secured Parties, and without prejudice to the
Collateral Agent's rights as a Secured Party under this Agreement except as may
be expressly required under this Agreement.

                  12.04 Instructions from Secured Parties. The Collateral Agent
shall not be required to exercise any discretion or take any action as to
matters not expressly provided for by this Agreement (including, without
limitation, collection and enforcement actions in respect of the Collateral or
this Agreement) except that the Collateral Agent shall take such action (or omit
to take such action) as may be reasonably requested of it in writing by the
Required Secured Parties with instructions and which actions and omissions shall
be binding upon all of the Secured Parties; provided, however, that the
Collateral Agent shall not be required to act (or omit any act) if, in its
judgment, any such action or omission might expose the Collateral Agent to
personal liability or might be contrary to this Agreement or any applicable Law.

                  12.05 Secured Party's Diligence. Each Secured Party: (a)
represents and warrants that it has made its own decision to enter into this
Agreement and the Debentures and (b) agrees that it will make its own decision
as to taking or not taking future actions in respect of this Agreement and the
Debentures; in each case without reliance on the Collateral Agent or any other
Secured Party and on the basis of its independent credit analysis and its
independent examination of and inquiry into such documents and other matters as
it deems relevant and material.

                  12.06 No Implied Representations. The Collateral Agent shall
not be liable for any representation, warranty, agreement or obligation of any
kind of any other party to this Agreement or anyone else, whether made or
implied by the Company in this Agreement, the Debentures or any other agreement
or documents or by a Secured Party in any notice or other communication or by
anyone else or otherwise.

                  12.07 Sub-Collateral Agents. The Collateral Agent may employ
agents and shall not be liable (except as to money or property received by it or
its agents) for any negligence or willful misconduct of any such agent selected
by it with reasonable care.

                  12.08 Collateral Agent's Diligence. The Collateral Agent shall
not be required: (a) to keep itself informed as to anyone's compliance with any
provision of this Agreement, the Debentures or any other agreement, (b) to make
any inquiry into the properties, financial

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condition or operation of the Company or any other matter relating to this
Agreement, the Debentures or any other agreement, (c) to report to any Secured
Party any information that the Collateral Agent or any of its Affiliates may
have or acquire in respect of the properties, business or financial condition of
the Company or any other matter relating to this Agreement, the Debentures or
any other agreement or (d) to inquire into the validity, effectiveness or
genuineness of this Agreement, the Debentures or any other agreement.

                  12.09 Notice of Default. The Collateral Agent shall not be
deemed to have knowledge of any Event of Default unless and until it shall have
received a written notice describing it and citing the relevant provision of
this Agreement or the Debenture. The Collateral Agent shall give each Secured
Party reasonably prompt notice of any such written notice except, of course, to
any Secured Party that shall have given the written notice.

                  12.10 Collateral Agent's Liability. Neither the Collateral
Agent nor any of its directors, officers, employees, attorneys, and other agents
shall be liable for any action or omission on their respective parts except for
gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, the Collateral Agent: (a) may consult with legal counsel,
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice or such counsel, accountants or experts which have
been selected by the Collateral Agent with reasonable care; (b) makes no
warranty or representation to any Secured Party and shall not be responsible to
any Secured Party for any statements, warranties or representations made in or
in connection with this Agreement, the Debentures or any agreement, including,
without limitation, the truth of the statements made in any certificate
delivered by the Company in this Agreement, the Debentures, any Offering
document or other agreement related to any of the foregoing, the Collateral
Agent being entitled for the purposes of determining fulfillment of the
conditions set forth therein to rely conclusively upon any certificate signed by
the Company; (d) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of this
Agreement or the Debentures or to inspect the property (including the books and
records) of the Company; (e) shall not be responsible to any Secured Party for
the due execution, legality, validity, enforceability, genuineness, sufficiency
or value of this Agreement, or collateral covered by any agreement, the
Debentures or any other agreement or document and (f) shall incur no liability
under or in respect of this Agreement, the Debentures or any other agreement or
document by acting upon any notice, consent, certificate or other instrument or
writing (which may be by telecopy) believed by it in good faith to be genuine
and correct and signed or sent by the proper party or parties.

                  Neither the Collateral Agent nor any of its directors,
officers, employees or sub-Collateral agents shall have any responsibility to
the Company on account of the failure of or delay in performance or breach by
any Secured Party of any of its obligations hereunder or to any Secured Party on
account of the failure of or delay in performance or breach by any other Secured
Party or the Company of any of their respective obligations hereunder, under the
Debentures or under any other agreement or in connection herewith or therewith.
The Secured Parties each hereby acknowledge that the Collateral Agent shall be
under no duty to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement unless it shall be requested in
writing to do so by the Required Secured Parties.

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                  12.11 Collateral Agent's Indemnity. The Secured Parties shall
indemnify the Collateral Agent, in its capacity as Collateral Agent, (to the
extent the Collateral Agent is not reimbursed by the Company) from and against:
(a) any loss or liability (other than any caused by the Collateral Agent's gross
negligence or willful misconduct) incurred by the Collateral Agent as such in
respect of this Agreement (as the Collateral Agent), (b) the fees charged to the
Company (to the extent not paid by the Company) by the Collateral Agent for
performing its obligations hereunder, (c) any Related Expenses and (d) any
out-of-pocket expenses incurred in defending itself or otherwise related to this
Agreement or the Collateral (other than any caused by the Collateral Agent's
gross negligence or willful misconduct) including, without limitation,
reasonable fees and disbursements of legal counsel of its own selection
(including, without limitation, the reasonable interdepartmental charges of its
salaried attorneys) in the defense of any claim against it or in the prosecution
of its rights and remedies as the Collateral Agent (other than the loss,
liability or costs incurred by the Collateral Agent in the defense of any claim
against it by the Secured Parties arising in connection with its actions in its
capacity as Collateral Agent); provided, however, that each Secured Party shall
be liable for only its Ratable Portion of the whole loss or liability.

                  12.12 Resignation or Removal of Collateral Agent. The
Collateral Agent may resign as Collateral Agent effective ten (10) Business Days
after giving notice thereof to the Secured Parties for any reason, and the
Collateral Agent may be removed at the unanimous election of all of the Secured
Parties (other than the Secured Party that is also the Collateral Agent) for any
reason. If the Collateral Agent shall resign or be removed as Collateral Agent
under this Agreement, the Required Secured Parties shall appoint from among the
Secured Parties (other than the Secured Party that has resigned or was removed)
a successor Collateral Agent for the Secured Parties, which successor Collateral
Agent shall be reasonably acceptable to the Company. If, however, in the case of
resignation by the Collateral Agent, no successor Collateral Agent shall have
been appointed by the time such resignation becomes effective, then the retiring
Collateral Agent may, on behalf of the Secured Parties, appoint a successor
Collateral Agent from among the remaining Secured Parties. Upon appointment
(whether effected by the Required Secured Parties or the retiring Collateral
Agent on behalf of the Secured Parties), the successor Collateral Agent shall
succeed to the rights, powers and duties of the Collateral Agent, and the term
"Collateral Agent" shall mean such successor Collateral Agent, effective upon
its appointment, and the former Collateral Agent's rights, powers and duties as
Collateral Agent shall be terminated, without any other or further act or deed
on the part of such former Collateral Agent or any of the parties to this
Agreement or any holder of the Debentures. After any retiring Collateral Agent's
resignation or removal hereunder as Collateral Agent, the provisions of Section
12.11 shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Collateral Agent under this Agreement.

                  13. Pro-Rata Treatment. Any and all (i) payments made by the
Company upon any of the Debentures (whether as principal or interest), (ii)
collections with respect to the enforcement of the obligations of the Company
hereunder and the enforcement of the Liens created hereby and (iii) payments
made by the Company to the Collateral Agent pursuant hereto, shall be shared
with each of the Secured Parties in accordance with its Ratable Portion. Each
Secured Party that receives any payment amount in excess of its respective
Ratable Portion,

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agrees that it shall hold it in trust for the benefit of, and shall pay it to,
any Secured Party receiving less than its respective Ratable Portion.

                  14. Collateral Agent as Attorney-In-Fact. Collateral Agent is
hereby irrevocably appointed Company's attorney-in-fact, with full authority in
the place and stead of Company and in the name of Company, upon the occurrence
and during the continuance of an Event of Default (unless otherwise specified),
to take any action and to execute any instrument which Collateral Agent may deem
necessary or advisable to accomplish the purposes of this Agreement, to the
extent permitted by applicable law, to take any and all appropriate action and
to execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Agreement.

                  15. Indemnification; Expenses. Company agrees to indemnify
Collateral Agent and each of the Secured Parties from and against any and all
claims, losses and liabilities growing out of or resulting from its breach or
violation of this Agreement, the Debentures and any other agreement or document
executed in connection therewith (including, without limitation, enforcement of
this Agreement), except claims, losses or liabilities resulting from Collateral
Agent's or any Secured Party's gross negligence or willful misconduct. Company
will upon demand pay to Collateral Agent the amount of any and all reasonable
expenses, including all attorneys' fees, expenses and fees of any experts and
agents, which Collateral Agent or any Secured Party may incur consistent with
the terms of this Agreement and the Debentures in connection with (a) the
administration of this Agreement, (b) the custody, preservation, use or
operation of, or the sale of, collection from, or other realization upon, any of
the Collateral, as provided for herein, (c) the exercise or enforcement of any
of the rights of Collateral Agent under this Agreement, (d) the failure by
Company to perform or observe any of the provisions hereof or (e) any
environmental or other laws relating to Company, the Collateral, the Offering or
the transactions contemplated hereby.

                  16. Security Interest Absolute. All rights of Collateral Agent
and the security interests hereunder, and all obligations of Company hereunder,
shall be absolute and unconditional, irrespective of (a) any lack of validity or
enforceability of the Debenture or any other agreement or instrument relating
thereto; (b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the obligations or any other amendment or waiver of
or any consent to any departure from this Agreement or the Debentures; (c) any
exchange, release or non-perfection of any other collateral, or any release or
amendment or waiver of or consent to departure from any guaranty, for all or any
of the obligations; or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Company or a third
party grantor of a security interest other than the performance and payment of
the Obligations in full.

                  17. Notice. Any notices and other communications provided for
hereunder shall be in writing (including telecopied) and mailed by first class
mail (return receipt requested), telecopied or hand delivered, if to the
Company, at its address at 10 Oceana Way, Norwood, Massachusetts 02062,
Attention: Chairman and Chief Executive Officer, if to any Secured Party, at the
address set forth below its name on the signature pages hereof; and if to the
Collateral Agent, at his address at 10 Foxhill Road, Wellesley, MA 02481,
Attention: /s/ Andres Escallon,

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or as to each party, at such other address as shall be designated by such party
in a written notice to each of the other parties. All such notices and
communications shall (a) be effective five (5) business days after deposited,
postage prepaid, in the US mails and (b) be effective on the next business day
when deposited, prepaid, with any nationally recognized overnight delivery
service.

                  18. No Waiver; Remedies Cumulative; Amendment. Each right,
power or privilege specified in this Agreement is in addition to, not in
limitation of, any other rights, powers and privileges Collateral Agent may
otherwise have or acquire by other contract or otherwise. No course of dealing,
omission or delay by Collateral Agent in the exercise of any right, power or
privilege referred to in this Agreement shall operate as a waiver thereof, nor
shall any partial exercise thereof preclude any further exercise thereof, as
Collateral Agent may exercise each such right, power and privilege either
independently or concurrently and as often and in such order as Collateral Agent
deems expedient. The Collateral Agent, upon the request of the Required Secured
Parties, may consent to any waiver, release of collateral or consent requested
by the Company or execute any amendment to this Agreement (except that the
amendment of this Section 18 and the definitions of "Required Secured Parties"
and "Ratable Portion" shall require the consent of all of the Secured Parties).

                  19. Termination; Succession; Assignment. This Agreement shall
(a) terminate on April 23, 2005, (b) benefit Collateral Agent, its successors,
assigns and any other holder who derives from Collateral Agent title to or
interest in any Obligations and (c) shall bind Company and Company's heirs,
executors, administrators, successors and assigns. Without limiting the
generality of the foregoing, Collateral Agent may assign or otherwise transfer
all or any portion of its rights under this Agreement held by it to any other
person or entity, and such other person or entity shall thereupon become vested
with all the benefits in respect thereof granted to Collateral Agent herein or
otherwise. Upon (x) the payment and performance in full of all of the
Obligations or (y) the occurrence of a conversion as described in Section B of
the Debentures, and upon the termination of any and all obligations of
Collateral Agent hereunder, the security interest granted hereby shall terminate
and all rights to the Collateral shall revert to Company. Upon any such
termination, Collateral Agent will, at Company's expense, execute and deliver to
Company such documents as Company shall reasonably request to evidence such
termination.

                  20. Section Headings. The section headings in this Agreement
are included for convenience of reference only and shall not constitute part of
this Agreement for any other purposes.

                  21. Illegality. If any provision in this Agreement, the
Debentures or any other agreement related thereto shall for any reason be or
become illegal, void or unenforceable, that illegality, voidness or
unenforceability shall not affect any other provision.

                  22. Entire Agreement. This Agreement, Debentures and the fee
letter between the Collateral Agent and the Company of even date herewith set
forth the entire agreement of the parties as to the transactions contemplated by
this Agreement.

                  23. Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which

                                       11
<PAGE>
when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement. Each Secured Party,
upon becoming a holder of a Debenture, shall execute a counterpart of this
Agreement in the form of an acknowledgment as set forth below and, until such
fully executed acknowledgment is delivered to the Collateral Agent and the
Company, no such Secured Party shall be entitled to the benefits of this
Agreement.

                  24. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS
UNLESS OTHERWISE DEFINED HEREIN OR IN THE DEBENTURE TERMS USED IN ARTICLE 9 OF
THE UCC ARE USED HEREIN AS THEREIN DEFINED.

                            {Signature Page Follows}

                                       12
<PAGE>
                  IN WITNESS WHEREOF, the undersigned have caused this Agreement
to be executed by their officers duly authorized to execute the same on the day
and year first above written.

                                   ELCOM INTERNATIONAL, INC.

                                   /s/ Melinda Ellett
                                   -----------------------------------
                                   By: Melinda Ellett
                                       -------------------------------
                                   Title: Corporate Secretary
                                          ----------------------------

                                   /s/ Andres Escallon
                                   ----------------------------------
                                   Andres Escallon, Collateral Agent

                                       13
<PAGE>
                         ACKNOWLEDGMENT OF SECURED PARTY

                  The undersigned hereby acknowledges and agrees and becomes a
party to that certain Collateral Agency and Security Agreement, dated as of
April 23, 2003, among /s/ Andres Escallon as Collateral Agent, Elcom
International, Inc. (the "Company") and the Secured Parties which are
signatories thereto.

/s/ Andres Escallon
--------------------------------

Print Name:
           ---------------------
Title:
      --------------------------
Date:
     ---------------------------

Address for Notices:
(no P.O. Boxes please)

---------------------------------
---------------------------------
---------------------------------
Attention:
Fax: (   ) ----------------------

                                       14
<PAGE>
                                   SCHEDULE A
                                       TO
                    COLLATERAL AGENCY AND SECURITY AGREEMENT

Location of Chief Executive Office

10 Oceana Way, Norwood, Massachusetts 02062

Locations of Goods Collateral

10 Oceana Way, Norwood, Massachusetts 02062

                                       15<PAGE>
                                                                   Exhibit 10.23

                      FOURTH AMENDMENT TO REVOLVING CREDIT
                             AND SECURITY AGREEMENT

     THIS FOURTH AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT (the
"Agreement") is entered into as of May 30, 2003 by and among Robotic Vision
Systems, Inc., a corporation organized under the laws of the State of Delaware
(the "Borrower"), the financial institutions which are now or which hereafter
become a party hereto (collectively, the "Lenders" and individually a "Lender")
and PNC BANK, NATIONAL ASSOCIATION ("PNC"), as agent for Lenders (PNC, in such
capacity, the "Agent").

                                    RECITALS

     WHEREAS, the Borrower and PNC entered into a Revolving Credit and Security
Agreement dated April 28, 2000 (as has been and may be further amended, the
"Loan Agreement"); and

     WHEREAS, the Borrower, PNC, Middlefield Ventures, Inc., Intel Corp. and Pat
V. Costa entered into a Subordination, Forbearance and Waiver of Offset Rights
Agreement dated April 11, 2003 (as may be further amended, the "Forbearance
Agreement"); and

     WHEREAS, the Borrower and PNC have agreed to modify the terms of the Loan
Agreement as set forth in this Agreement.

     NOW, THEREFORE, in consideration of PNC's continued extension of credit
and the agreements contained herein, the parties agree as follow:

                                   AGREEMENT

     1.   ACKNOWLEDGMENT OF BALANCE. Borrower acknowledges that the most recent
statement of account sent to Borrower with respect to the Obligations is
correct.

     2.   MODIFICATION OF LOAN AGREEMENT. The Loan Agreement be and hereby is
modified as follows:

               A.   The definition of "Revolving Interest Rate" contained in
          Section I.1.2 of the Loan Agreement is hereby deleted and a new
          definition is substituted therefor to read as follows: "Revolving
          Interest Rate" shall mean an interest rate per annum equal to the Base
          Rate plus two (2%) per cent with respect to Domestic Rate Loans.

               B.   The Termination Date as set forth in Section 13.1 is hereby
          deleted and replaced with the new Termination Date of August 14, 2003.

     3.   MODIFICATION OF FORBEARANCE AGREEMENT. The Forbearance Agreement be
and hereby is modified as follows:

               A.   Paragraph 23(vi) is hereby deleted and a new paragraph
          23(vi) is substituted to read as follows: "Forbearance Period" shall
          mean the period commencing on the date hereof and ending on the
          earlier to occur of August 14, 2003 or the date that any Forbearance
          Default occurs.

                                       1
<PAGE>
     4.   ACKNOWLEDGMENTS. Borrower acknowledges and represents that:

          A.   the Loan Agreement, the Forbearance Agreement and the Other
     Documents, as amended hereby, are in full force and effect without any
     defense, claim, counterclaim, right or claim of set-off;

          B.   to the best of its knowledge, no default by the Agent or Lenders
     in the performance of their duties under the Loan Agreement, the
     Forbearance or the Other Documents has occurred;

          C.   all representations and warranties of the Borrower contained
     herein and in the Other Documents are true and correct in all material
     respects as of this date, except for any representation or warranty that
     specifically refers to an earlier date; and except for representations and
     warranties that are categorized as "Designated Defaults;"

          D.   Borrower has taken all necessary action to authorize the
     execution and delivery of this Agreement; and

          E.   this Agreement is a modification of an existing obligation and is
     not a novation.

     5.   PRECONDITIONS. As preconditions to the effectiveness of any of the
modifications, consents, or waivers contained herein, the Borrower shall
deliver to the Agent, simultaneously with the execution hereof: (i) Secretary's
Certificate of the Borrower containing Resolutions authorizing the execution of
this Agreement; (ii) the first installment of the Forbearance Fee in the amount
of $12,500; and (iii) Agent's counsel's fees.

     6.   FORBEARANCE FEE. The Borrower shall pay to the Agent a Forbearance
Fee in the amount of $100,000 as follows: $12,500 on the date hereof; $12,500
on June 30, 2003; $50,000 on July 21, 2003; and $25,000 on August 8, 2003.
Except for the payment of $12,500 due on the date hereof, no further portion of
the Forbearance Fee shall be due and payable if, as of the date such payment is
due, the Obligations have been paid in full. Failure of the Borrower to pay the
above mentioned fees on the dates set forth above shall be deemed an Event of
Default under the Loan Agreement.

     7.   POST-CONDITIONS. The Borrower shall: (i) by June 3, 2003 deliver to
the Agent evidence that an amount of not less than $300,000 (less expenses and
back rent owed by Borrower to its Landlord) has been received by the Borrower
from Sick A.G. resulting from the settlement of a $500,000 hold-back from the
sale of Borrower's former material handling division; (ii) by June 5, 2003
complete the implementation of a full cash dominion program in favor of the
Agent; (iii) by June 16, 2003 deliver to the Agent evidence that the Borrower
has received additional Subordinated Debt (in form and substance satisfactory to
the Agent) of at least $2,000,000, or additional equity of at least $2,000,000;
(iv) by June 30, 2003 deliver to the Agent either (A) a letter of interest
regarding the sale of the Semiconductor Equipment Group in form satisfactory to
the Agent, or (B) a letter of interest regarding the sale of the Acuity Cimatrix
division that is satisfactory to the Agent in all respect; or (C) a proposal
from an alternate lender to refinance Borrower's Obligations due to the Agent in
all respects satisfactory to the Agent; (v) by July 15, 2003 deliver to the
Agent either (A) a definitive letter of intent with respect to the sale of the
Semiconductor Equipment Group in form and substance satisfactory to the Agent,
or (B) a definitive letter of intent with respect to the sale of the Acuity
Cimatrix division in form and substance satisfactory to the Agent, or (C) an
unconditional commitment from an alternative lender to refinance the Obligations
due PNC in form and substance satisfactory to the Agent; and (vi) by July 14,
2003 deliver to the Agent cash flow projections through August 14, 2003. Failure
by the Borrower to comply with any of the provisions contained in this paragraph
7 shall be deemed an Event of Default under the Loan Agreement.

                                       2

<PAGE>
     8.   MISCELLANEOUS. This Agreement shall be construed in accordance with
and governed by the laws of the State of New York, without reference to that
state's conflicts of law principles. This Agreement, the Loan Agreement, the
Forbearance Agreement and the Other Documents constitute the sole agreement of
the parties with respect to the subject matter thereof and supersede all oral
negotiations and prior writings with respect to the subject matter thereof. No
amendment of this Agreement, and no waiver of any one or more of the provisions
hereof shall be effective unless set forth in writing and signed by the parties
hereto. The illegality, unenforceability or inconsistency of any provision of
this Agreement shall not in any way affect or impair the legality,
enforceability or consistency of the remaining provisions of this Agreement, the
Loan Agreement, the Forbearance Agreement or the Other Documents. This
Agreement, the Loan Agreement, the Forbearance Agreement and the Other Documents
are intended to be consistent. However, in the event of any inconsistencies
among this Agreement, the Loan Agreement, the Forbearance Agreement and any of
the Other Documents, the terms of this Agreement, then the Loan Agreement, shall
control. This Agreement may be executed in any number of counterparts and by the
different parties on separate counterparts. Each such counterpart shall be
deemed an original, but all such counterparts shall together constitute one and
the same agreement.

     9.   DEFINITIONS. The terms used herein and not otherwise defined or
modified herein shall have the meanings ascribed to them in the Loan Agreement
and the Forbearance Agreement. The terms used herein and not otherwise defined
or modified herein or defined in the Loan Agreement and the Forbearance
Agreement shall have the meanings ascribed to them by the Uniform Commercial
Code as enacted in New York.

     IN WITNESS WHEREOF, the undersigned have signed and sealed this Agreement
the day and year first above written.

                                        ROBOTIC VISION SYSTEMS, INC.

                                        By:   /s/ Pat V. Costa
                                           --------------------------------
                                              NAME: PAT V. COSTA
                                              TITLE: PRESIDENT

                                        PNC BANK, NATIONAL ASSOCIATION

                                        By:   /s/ John C. Williams
                                           --------------------------------
                                              NAME: JOHN C. WILLIAMS
                                              TITLE: VICE PRESIDENT

                                       3

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