EXHIBIT 10.53
                                                                   -------------

                  SETTLEMENT, RELEASE, AND SEVERANCE AGREEMENT

This Settlement, Release and Severance Agreement (hereinafter "Agreement") is
made and entered into by and between Raphael Auphan (hereinafter referred to as
the "Releasor" or "Employee" and Extended Systems Incorporated, a corporation,
and its officers, principals, agents, employees, directors, representatives,
insurers, and all other persons or entities acting for, by or through any of
them (individually and/or collectively referred to herein as the "Releasees").

A.   Whereas, the Releasor's date of hire with Extended Systems Incorporated
     (the "Company") was April 17, 2000.

B.   Whereas, the Releasor's active employment with the Company will be
     terminated without cause on June 30, 2003 (the "Termination Date").

C.   Whereas, the Company has agreed to pay severance in the total amount of
     $70,002 (less taxes) which represents six months of base pay plus $7760.16
     in lieu of fringe benefits and $18,000 in lieu of relocation benefits to
     Releasee in exchange and as consideration for execution by Releasor of this
     Agreement. In addition, as per employment agreement, employee will be paid
     for all accrued but unused vacation time as of June 30, 2003 at a daily
     rate of $537.65.

Now therefore, in consideration of the agreements and covenants contained in
this Settlement, Release, and Indemnity Agreement, it is hereby understood and
agreed by and between the parties hereto as follows:

1.   That in consideration of severance payment in the amount of $70,002 (less
     taxes), which represents six months of base pay plus $7760.16 in lieu of
     fringe benefits and $18,000 in lieu of relocation benefits, the Releasor
     does hereby release, acquit, and forever discharge the Releasees,
     individually and collectively, of and from any and all claims, actions,
     causes of actions, demands, rights, damages, costs, expenses, and
     compensation whatsoever which the Releasor now has or may hereafter
     acquire, arising out of or in any way connected with any and all known and
     unknown, foreseen and unforeseen rights, claims, and damages resulting from
     or in any way arising out of Releasor's employment with Releasee. This
     release and discharge by the Releasor (on behalf of Releasor, heirs,
     spouses, and assigns) in favor of the Releasees includes, but is not
     limited to, all claims and damages allowable by law or equity for any and
     all events, occurrences, and circumstances occurring by and between the
     Releasor and the Releasees arising from or in any way connected with
     Releasor's employment with the Company up to and including the Termination
     Date.

2.   This release applies to all charges, complaints, claims, liabilities,
     obligations, promises, agreements, controversies, damages, actions, causes
     of action, suits, rights demands, costs, losses, debts and expenses
     (including attorney's fees and costs actually incurred) of any nature
     whatsoever known or unknown, suspected or unsuspected, including, but not
     limited to, rights under the Age Discrimination in Employment Act of 1967,
     as amended, Title VII of the Civil Rights Act of 1964, as amended, and
     other federal, state, or local laws, including without limitation common
     law prohibiting discrimination, claims growing out of any legal
     restrictions on the Company's right to terminate employees ("Claim" or
     "Claims"), which Releasor now has, owns or holds, or claims to have owned
     or held, or which Releasor at any time hereinafter may have owned or held
     or claimed to have owned or held against the Company. Releasor has been
     given at least fourteen (14) days within which to consider this settlement
     agreement.

3.   That it is understood and agreed by the Releasor and the Releasees that, as
     additional consideration for this Agreement, the proprietary and
     confidential information regarding the Company obtained by Releasor during
     his employment with the Company and the terms and conditions of this
     Agreement are strictly confidential and shall not be revealed to any one
     other than legal counsel representing the parties, tax preparers or tax
     consultants, or such other individuals or entities agreed to by the parties
     in writing, or by order of a court of competent jurisdiction. The parties
     to this Agreement further agree that these confidentiality provisions are
     significant and material provisions of this Agreement and are to be
     strictly adhered to and enforced.
<PAGE>
     Releasor agrees that he or she shall never, directly or indirectly, use,
     disseminate, disclose, lecture upon or publish any information concerning
     financial information, patents, copyrights, inventions, trade secrets,
     technical processes, methods, formulas, techniques, proprietary rights,
     products, services, and technical information of Extended Systems to any
     third party or to the public without the written consent of Extended
     Systems. Releasor acknowledges and agrees that he can be held liable to
     Extended Systems for damages caused by any improper disclosure of Extended
     Systems information. This shall not prohibit a discussion of information
     that has been previously distributed and is generally known in the
     computer-related industry.

     It is agreed that during the term of this Agreement any inventions or
     improvements of ESI products, processes, or programs conceived, designed or
     developed by Releasor on or before the date 6 months after the Termination
     Date that relate to the subject matter of materials supplied or products
     manufactured by ESI or that relate to the research and development of ESI
     shall be property of ESI and shall be communicated by Releasor to ESI
     without delay. Releasor agrees to execute any necessary documents to
     establish ESI's ownership of the matters referred to in this paragraph or
     to transfer ownership from Releasor to Extended Systems. All matters
     referred to in this paragraph shall be protected against nondisclosure in
     the manner as CONFIDENTIAL INFORMATION under this Agreement.

     a)   Releasor also agrees that for a period of (6) months after the
          Termination Date he shall not seek or solicit any business from any
          Customer in connection with the Restricted Business and in way that
          has a negative business impact for Extended Systems. Restricted
          Business means the design, development, manufacture, production,
          marketing and sale or delivery of software programs, products or
          services relating to the server synchronization of mobile information
          devices, universal mobile connectivity, or mobile data management
          devices.

     b)   In addition, Releasor also agrees that for a period of (6) months from
          the Termination date, he shall not carry out, engage and/or accept
          employment in any business or trade which is competitive with Exended
          Systems in the Restricted Business except for the ownership for
          investment purposes of no more than 5% of the issued ordinary shares
          of any company listed on any stock exchange. This includes work done
          for companies such as Pumatech; Excellenet; Sybase, and Synchrologic;

4.   Releasor also agrees that for a period of six (6) months after the
     termination of their employment with Extended Systems Incorporated, that
     they shall not induce or attempt to induce any employee, agent or
     consultant of Extended Systems Incorporated or any subsidiary to terminate
     his or her association with Extended Systems Incorporated or any
     affiliates. Extended Systems Incorporated and Releasor agree that the
     provisions of this paragraph contain restrictions that are not greater than
     necessary to protect the interests of Extended Systems Incorporated. In the
     event of the breach or threatened breach by Releasor of this paragraph,
     Extended Systems Incorporated, in addition to all other remedies available
     to it at law or in equity, will be entitled to seek injunctive relief
     and/or specific performance to enforce this paragraph.

5.   That it is understood and agreed by the Releasor that no promise,
     inducement or agreement not stated herein has been made to him or her and
     that this Agreement contains the entire agreement among the parties hereto,
     and that the terms of this Agreement are contractual and not mere recitals.

6.   That it is understood and agreed by the Releasor that this Agreement is
     entered into in the state of Idaho and shall be construed and interpreted
     in accordance with Idaho law.

7.   Releasor also certifies that they do not have in their possession or
     control, and that they have not taken or will not take from the Company
     premises, any Company property. Company property includes, but is not
     limited to, products, tools, inventory, or proprietary data or copies
     thereof including engineering notebooks, patent applications, technical
     reports, or other documents, which are not generally available to the
     public. Releasor will retain all confidential information in trust and
     confidence for Extended Systems Incorporated and not disclose or discuss it
     with anyone or use it for personal gain. Releasor recognizes that these
     obligations continue beyond termination until the information becomes
     public or Extended Systems Incorporated grants written permission to use or
     disclose it.

8.   Releasor further understands and agrees that all work they have done to
     this point will be turned over to the company prior to their termination
     date.

DATED as of June 3rd, 2003.                     /s/ Raphael Auphan
             Month    Day                       -------------------------
                                                Employee and Releasor


DATED as of June 4th, 2003.                     /s/ Steven D. Simpson
             Month    Day                       -------------------------
                                                Extended Systems