SETTLEMENT AGREEMENT Sally Chapman Hytek Microsystems

Exhibit 10.11

SETTLEMENT AGREEMENT

Xxxxx Xxxxxxx

V.

Hytek Microsystems

The undersigned agree that the above referenced litigation, and all claims which were and could have been raised therein, is settled upon the following terms:

1. Xxxxxxx shall resign from the Company effective no later than 5 months from this date, or at any earlier date as determined by the Company in its sole discretion. Xxxxxxx shall assist with a transition to any replacement. Xxxxxxx will be permitted to seek other employment, so long as she is adequately performing her duties with the Company.

2. Upon the effective date of resignation, Xxxxxxx will receive severance payment of $85,000, payable over a 12-month period in equal installments, plus Company provided health insurance for such period.

3. Xxxxxxx shall receive payment of the sum of $40,000 upon full execution of a release as provided herein.

4. Xxxxxxx shall receive an additional payment of $45,000 upon the effective date of her resignation as provided in Paragraph 1.

5. Hytek shall execute a letter of reference for Xxxxxxx as set forth in Exhibit A, attached hereto.

6. Xxxxxxx shall execute a Release of All Claims and Covenant Not to Xxx releasing the Company from any claims which have been or could have been raised in the litigation and/or arising from Xxxxxxx’x employment with Hytek.

Dated this 31^st day of July, 2003.

						Hytek Microsystems, Inc.
/s/ Xxxxx Xxxxxxx						/s/ Xxxx X. Xxxx
by Xxxxx Xxxxxxx						by Xxxx Xxxx
						Its CEO/President

APPENDIX A

To Whom it May Concern:

Hytek employed Xxxxx Xxxxxxx as Accounting Manger, Controller and Chief Financial Officer. She worked for the Company for over five (5) years, and in these capacities directed the Company’s financial division commendably. She also worked with the Company through a transition to her replacement once she announced her intent to resign. We consider her a competent and loyal financial professional.