THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Staktek Holdings, Inc. (STAK)

3/8/2006 Proxy Information

Mr. Cady has provided consulting services to Staktek Holdings, Inc. on a limited basis since April 2006. He retired as Chief Technology Officer of Staktek Holdings, Inc. in April 2006. Mr. Cady served as the acting Chief Technology Officer since May 2005 and was named to the position of Chief Technology Officer in October 2005. He was President from the closing of the Staktek acquisition in August 2003 until May 2005, and as Chief Executive Officer until October 2005.

Relationship with Austin Ventures

Austin Ventures and its affiliates beneficially own approximately 75% of our outstanding common stock. Set forth below is a brief description of the existing relationships and agreements between Austin Ventures and us.

Board of Directors

Joseph Aragona, a general partner of Austin Ventures, is Chairman of our Board of Directors and serves as Chair of our Nominating and Governance Committee. Clark Jernigan, a principal of Austin Ventures, is one of our directors and serves as Chair of our Compensation Committee. Edward Olkkola, an operating partner of Austin Ventures, is one of our directors.

Registration Rights

Austin Ventures has registration rights with respect to the shares of our common stock that it holds.