HYTEK MICROSYSTEMS, INC. EXHIBIT 10.3

                DIRECTOR'S NONSTATUTORY STOCK OPTION AGREEMENT

                               (Subsequent Option)





         Hytek Microsystems, Inc., a California   corporation   (the "Company"),
has granted to ________________________(the "Optionee") an option to purchase a 
total of 5,000   shares of the Company's  Common Stock (the  "Optioned  Stock"),
at the price set forth herein, and in all respects subject to the terms,  
definitions and provisions of the 1991 Directors' Stock Option Plan (the "Plan")
adopted by the Company, which is  incorporated  herein by reference.  The terms 
defined in the Plan shall have the same defined meanings herein.



         1.       Nature of the Option.  This Option is a  nonstatutory  option 
and is not  intended to qualify for any special tax benefits to the Optionee.



         2.       Exercise  Price. The  exercise  price is $____ for each Share,
which is 100% of the fair market value of the Common Stock on the date of grant 
of this Option, as determined in accordance with the Plan.



         3.       Exercise of Option.  This Option  shall be exercisable  during
its term in  accordance  with the provisions of the Plan as follows:


                  (a)      Right to Exercise.


                           (i)      This Option shall  become  exercisable  
cumulatively  in  installments,  to the extent of approximately  one-twelfth of 
the Optioned Stock subject to the Option on per  month  following  the  date of 
grant of this  Option  specified  on the signature page, as follows:

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Number of Months After        Number of Shares        Cumulative Number of
      Grant Date            Becoming Exercisable       Shares Exercisable
          1                         416                           416
          2                         417                           833
          3                         417                         1,250
          4                         416                         1,666
          5                         417                         2,083
          6                         417                         2,500
          7                         416                         2,916
          8                         417                         3,333
          9                         417                         3,750
          10                        416                         4,166
          11                        417                         4,583
          12                        417                         5,000
                                  -----
                   TOTAL          5,000

However, in no event shall this Option be exercisable until shareholder approval
of the  amendment to the Plan  approved by the Board on  September  11, 1997 has
been obtained.

                           (ii)     This Option may not be exercised for a 
fraction of a Share.

                           (iii)    In the event of the  Optionee's  termination
of service  as a Director  due to death or any other  reason, the exercisability
of this  Option is governed by Sections 4 and 5 of this Agreement.


                  (b) Method of Exercise.  This Option shall be  exercisable  by
written  notice,  which shall state the  election  to exercise  the Option,  the
number of Shares in  respect of which the  Option is being  exercised,  and such
other  representations  and  agreements,  if any, as to the holder's  investment
intent  with  respect to such  Shares of Common  Stock as may be required by the
Company  pursuant to the  provisions of the Plan.  Such written  notice shall be
signed by the Optionee and shall be delivered in person or by certified  mail to
the Secretary of the Company. The written notice shall be accompanied by payment
of the exercise price.


                  (c)      Method of Payment.  Payment of the exercise price 
shall be by any of the  following,  or a combination thereof, at the election of
the Optionee:

                           (i)      cash;

                           (ii)     check; or

                           (iii)  surrender  of other  Shares of Common Stock of
                  the Company,  which either (A) have been owned by the Optionee
                  for more than six months on the date of  surrender or (B) were
                  not acquired,  directly or indirectly,  from the Company,  and
                  which have a fair market value on the date of surrender  equal
                  to the exercise  price of the Shares with respect to which the
                  Option is being exercised.


                  (d) Restrictions on Exercise. This Option may not be exercised
if the  issuance of such  Shares upon such  exercise or the method of payment of
consideration  for such Shares would  constitute  a violation of any  applicable
federal or state  securities  or other law or  regulations,  or if such issuance
would not comply with the requirements of any stock exchange or quotation system
upon  which the  Shares  may then be listed or  quoted.  As a  condition  to the
exercise of this  Option,  the  Company  may  require  the  Optionee to make any
representation  and warranty to the Company as may be required by any applicable
law or regulation.


         4. Termination of Status as a Director. If the Optionee ceases to serve
as a Director,  he or she may, but only within one year after the date he or she
ceases to be a Director of the Company,  exercise this Option to the extent that
he or she was  entitled to exercise it at the date of such  termination.  To the
extent that the Optionee was not entitled to exercise this Option at the date of
such termination,  this Option shall be cancelled as of such date. To the extent
that the Optionee does not exercise this Option with respect to the  exercisable
Shares within the time  specified  herein,  the Option shall be cancelled at the
end of such time.


         5.       Death of Optionee.


                  (a) Death  While  Serving as a  Director.  In the event of the
death of the Optionee  during the term of this Option  while still  serving as a
Director,  this Option may be exercised,  at any time within one year  following
the date of death,  by the  Optionee's  estate or by a person who  acquired  the
right to  exercise  this  Option by bequest or  inheritance.  In such case,  the
exercisability of this Option shall be accelerated in full such that it shall be
exercisable  during such one-year  period with respect to all Shares  subject to
the Option.  To the extent that this Option is not exercised with respect to the
exercisable Shares subject hereto within the time specified herein,  this Option
shall be cancelled as of the end of such time.


                  (b) Death after Termination.  In the event of the death of the
Optionee within one year after the Optionee's  termination of Continuous  Status
as a  Director,  this  Option  may be  exercised,  at any time  within  one year
following  the date of  death,  by the  Optionee's  estate  or by a  person  who
acquired the right to exercise this Option by bequest or  inheritance,  but only
to the  extent  of the  right  to  exercise  that  had  accrued  at the  date of
termination. To the extent that this Option is not exercised with respect to the
exercisable Shares subject hereto within the time specified herein,  this Option
shall be cancelled as of the end of such time.


         6. Non-Transferability of Option. This Option may not be sold, pledged,
assigned,  hypothecated,  transferred or disposed of in any manner other than by
will or by the laws of descent  and  distribution  or  pursuant  to a  qualified
domestic  relations  order as  defined  by the  Code or Title I of the  Employee
Retirement  Income Security Act, or the rules  thereunder.  The designation of a
beneficiary by the Optionee does not  constitute a transfer.  This Option may be
exercised,  during the  lifetime  of the  Optionee,  only by the  Optionee  or a
transferee  permitted  by this  Section  6. The  terms of this  Option  shall be
binding upon the executors, administrators, heirs, successors and assigns of the
Optionee.


         7. Term of Option. This Option may not be exercised more than ten years
from the date of grant  hereof,  and may be  exercised  during such term only in
accordance  with the Plan and the  terms  of this  Option.  Notwithstanding  the
provisions of Sections 4 and 5 hereof,  in no event may this Option be exercised
after its ten-year term has expired.


         8.  Taxation  Upon Exercise of Option.  The Optionee  understands  that
exercise  of this  Option  will  result in the  recognition  of  income  for tax
purposes either on such exercise date or at a later time within six months after
such exercise, which income will be in an amount equal to the excess of the fair
market  value  on the  applicable  tax  date of the  Shares  purchased  over the
exercise price paid for such Shares. Because the application of the tax laws and
regulations  to persons who are subject to Section  16(b) of the Exchange Act is
complex,  the  Optionee  is  advised  to  contact a tax  advisor  at the time of
exercise  concerning  the  effect  of the  tax  laws on  such  exercise  and the
desirability  of filing an 83(b) election in connection with the exercise of the
Option. Upon a resale of such Shares by the Optionee, any difference between the
sale price and the fair  market  value of the Shares on the date of  exercise of
the  Option,  to the extent not already  included in income,  will be treated as
capital gain or loss.

DATE OF GRANT:  ______________, 199__


                                                     HYTEK MICROSYSTEMS, INC.,
                                                     a California corporation


                                                     By:________________________

                                                     Title:_____________________

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                              CONSENT OF SPOUSE
                              -----------------

         The  undersigned  spouse of Optionee  has read and hereby  approves the
terms and conditions of the Plan and this Option Agreement.  In consideration of
the  Company's  granting  his or her spouse the right to purchase  Shares as set
forth in the Plan and this Option Agreement, the undersigned hereby agrees to be
irrevocably  bound by the  terms  and  conditions  of the  Plan and this  Option
Agreement  and further  agrees that any  community  property  interest  shall be
similarly bound.  The undersigned  hereby appoints the  undersigned's  spouse as
attorney-in-fact  for the undersigned  with respect to any amendment or exercise
of rights under the Plan or this Option Agreement.



                                                     Spouse of Optionee



<PAGE>


                           ACKNOWLEDGEMENT OF OPTION
                           -------------------------

          The  Optionee  acknowledges  receipt  of the  Option and a copy of the
Plan.  The  Optionee  represents  that he or she is familiar  with the terms and
provisions  thereof and hereby  accepts this Option  subject to all of the terms
and  provisions  thereof.  The  Optionee  hereby  agrees to  accept as  binding,
conclusive  and final all  decisions  or  interpretations  of the Board upon any
questions arising under the Plan.


         Dated: _________________, 199_


                                                     ___________________________
                                                     Optionee