TRANSCRYPT INTERNATIONAL INC
EXHIBIT 10.11
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<BR></FONT><FONT SIZE=2><B>EXHIBIT&nbsp;10.11    <BR>  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT SIZE=2><B>
<IMG SRC="g958567.jpg" ALT="TRANSCRYPT LOGO" WIDTH="270" HEIGHT="139">
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<P><FONT SIZE=2>August&nbsp;13,
2001 </FONT></P>

<P><FONT SIZE=2>Massoud
Safavi<BR>
8712 Old Dominion Drive<BR>
McLeon, VA 22102 </FONT></P>

<P><FONT SIZE=2>Dear
Massoud: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
letter is intended to serve as formal notification that your Employment Agreement dated September&nbsp;10, 1999 will not be renewed, per your discussion on August&nbsp;9, 2001,
with Michael Jalbert, Chairman/CEO. Please consider this letter formal written notice of the Company's intent not to renew, as provided in Section&nbsp;1 of your Employment Agreement. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
October&nbsp;16, 2001, you will become the Senior Vice President/Chief Financial Officer for Transcrypt, continuing your status as an officer of Transcrypt, as an employee at
will. Following is an outline of the Company's offer to continue your employment after your Employment Agreement expires on October&nbsp;15, 2001, </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
will continue in the position of Senior Vice President/CFO (and officer) in an at-will basis without a written employment agreement.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>In
that capacity, you will be covered by all benefits applicable to your position under then existing company policies. One exception is additional severance
pay. In addition to the severance benefits
available to you under the Transcrypt severance Benefit Plan, should you be eligible for benefits under the Plan as determined by the Plan Administrator, the company will pay to you an additional
amount of severance pay so that the total amount of severance pay payable to you equals 52 weeks of your Current Base Salary, notwithstanding the maximum benefits specified in the Plan. Any such
additional payment will be made outside of the administration of the Plan, and this agreement does not constitute an amendment to or modification of the Plan. The schedule for these payments will be
made in accordance with the severance benefit plan.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>You
will continue to report to the Chairman/Chief Executive Officer.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
annual salary will remain at $200,000.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>Your
monthly car allowance of $550 (grossed up) will continue. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Massoud,
we look forward to your continued contributions in this new role. </FONT></P>

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<TD WIDTH="100%"><FONT SIZE=2>Sincerely,</FONT></TD>
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<TD WIDTH="100%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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<TD WIDTH="100%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>NANCY MORRISON</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Nancy Morrison<BR></FONT> <FONT SIZE=2><I>Vice President, Human
Resources</I></FONT></TD>
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