Document:

Note No. [ ]

THIS NOTE AND THE SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED.  THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS
TO THE SECURITIES  UNDER SAID ACT OR AN OPINION OF COUNSEL  SATISFACTORY  TO THE
CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

                            DETTO TECHNOLOGIES, INC.

                    SUBORDINATED CONVERTIBLE PROMISSORY NOTE

                                                                  XXXXX 28, 2005

$XX,000.00                                                   Seattle, Washington

      FOR VALUE  RECEIVED,  DETTO  TECHNOLOGIES,  INC.,  a Delaware  corporation
("Company"),  promises  to  pay to  XXXXXXXXXX.  ("Holder"),  or its  registered
assigns,  the  principal  sum of  $XX,000.00 or such lesser amount as shall then
equal the outstanding  principal amount hereof,  together with interest from the
date of this  Note on the  unpaid  principal  balance  at a rate  equal to eight
percent (8%) per annum. All unpaid principal,  together with any then unpaid and
accrued  interest and other  amounts  payable  hereunder,  shall be converted to
stock pursuant to Section 6 (unless  previously  converted pursuant to Section 6
hereof) on the earlier of (i) March 31, 2005 (the "Maturity  Date") or (ii) when
such amounts are made automatically due and payable upon or after the occurrence
of an Event of Default (as defined  below).  The following is a statement of the
rights of Holder and the conditions to which this Note is subject,  and to which
the Holder hereof, by the acceptance of this Note, agrees:

      1. DEFINITIONS. As used in this Note, the following capitalized terms have
the following meanings:

            (a) "Holder"  shall mean the Person  specified  in the  introductory
paragraph  of this Note or any  Person  who shall at the time be the  registered
holder of this Note.

            (b)  "Indebtedness" of a Person shall mean and include the aggregate
amount of, without  duplication (i) all obligations for borrowed money, (ii) all
obligations evidenced by bonds, debentures,  notes or other similar instruments,
(iii) all obligations to pay the deferred purchase price of property or services
(other  than  accounts  payable  incurred  in the  ordinary  course of  business
determined in accordance with generally accepted  accounting  principals),  (iv)
all obligations  with respect to capital leases,  (v) all guaranty  obligations,
(vi) all  obligations  created or arising  under any  conditional  sale or other
title retention  agreement with respect to property acquired by such Person, and
(vii) all reimbursement and other payment obligations,  contingent or otherwise,
in respect of letters of credit.

            (c) "Company" includes the corporation initially executing this Note
and any Person which shall succeed to or assume the obligations of Company under
this Note.

            (d) "Person" shall mean and include an individual, a partnership,  a
corporation  (including  a business  trust),  a joint stock  company,  a limited
liability  company,  an  unincorporated  association,  a joint  venture or other
entity or a governmental authority.

                                      -2-
<PAGE>

            (e) "Senior Indebtedness" shall mean, unless expressly  subordinated
to or made on a parity with the amounts due under this Note,  the  principal  of
(and  premium,  if any),  unpaid  interest  on and amounts  reimbursable,  fees,
expenses,  costs of  enforcement  and  other  amounts  due in  connection  with,
Indebtedness   of  Company  to  Imperial   Bank  or  other   current  or  future
institutional Indebtedness.

      2. INTEREST.  Accrued  interest on this Note shall be payable at such time
as the outstanding principal amount is converted pursuant to Section 6 and shall
be paid in shares of Common Stock (as defined in Section 6(a) below).

      3.  EVENTS  OF  DEFAULT.  The  occurrence  of any of the  following  shall
constitute an "Event of Default" under this Note:

            (a) Breaches of  Covenants.  The Company  shall fail in any material
respect to observe or perform any covenant,  obligation,  condition or agreement
contained  in this Note (other than those  covenants  specified  in Section 3(a)
hereof) and (i) such  failure is not  remedied,  cured or waived for a period of
thirty (30) days after the Company  has notice of the  failure,  or (ii) if such
failure is not curable  within such  thirty (30) day period,  but is  reasonably
capable of cure within sixty (60) days,  either (A) such failure shall  continue
for sixty (60) days or (B) Company  shall not have  commenced a cure in a manner
reasonably satisfactory to Holder within the initial thirty (30) day period; or

            (b) Representations  and Warranties.  Any representation or warranty
made by Company to Holder in this Note shall be untrue in any  material  respect
when made; or

            (c)  Voluntary  Bankruptcy or  Insolvency  Proceedings.  The Company
shall  (i) apply for or  consent  to the  appointment  of a  receiver,  trustee,
liquidator  or  custodian  of  itself  or of all or a  substantial  part  of its
property,  (ii) be unable,  or admit in writing its inability,  to pay its debts
generally as they mature, (iii) make a general assignment for the benefit of its
or any of its creditors, (iv) be dissolved or liquidated in full or in part, (v)
become  insolvent  (as  such  term  may be  defined  or  interpreted  under  any
applicable statute),  (vi) commence a voluntary case or other proceeding seeking
liquidation,  reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect
or consent to any such relief or to the  appointment of or taking  possession of
its  property  by any  official  in an  involuntary  case  or  other  proceeding
commenced  against it, or (vii) take any action for the purpose of effecting any
of the foregoing; or

            (d) Involuntary  Bankruptcy or Insolvency  Proceedings.  Proceedings
for the appointment of a receiver,  trustee,  liquidator or custodian of Company
or of all or a substantial part of the property thereof,  or an involuntary case
or other proceedings  seeking  liquidation,  reorganization or other relief with
respect to Company or the debts  thereof  under any  bankruptcy,  insolvency  or
other similar law now or hereafter in effect shall be commenced and an order for
relief entered or such  proceeding  shall not be dismissed or discharged  within
thirty (30) days of commencement.

      4. RIGHTS OF HOLDER UPON DEFAULT.  Upon the  occurrence or existence of an
Event of  Default  pursuant  to  Paragraphs  3(a) or (b)  hereof and at any time
thereafter  during the continuance of such Event of Default,  Holder may, acting
alone and by written  notice to  Company,  declare all  outstanding  obligations
payable  by  Company  hereunder  to  be  immediately  due  and  payable  without
presentment,  demand,  protest or any other notice of any kind, all of which are
hereby   expressly   waived,   anything   contained   herein  to  the   contrary
notwithstanding.  Upon the  occurrence  or  existence  of any  Event of  Default
described in Paragraphs  3(c) and 3(d) hereof,  immediately  and without notice,
all outstanding  obligations  payable by Company  hereunder shall  automatically
become immediately due and payable, without presentment,  demand, protest or any
other notice of any kind,  all of which are hereby  expressly  waived,  anything
contained herein to the contrary  notwithstanding.  In addition to the foregoing
remedies,  upon the occurrence or existence of any Event of Default,  Holder may
exercise  any other  right,  power or remedy  otherwise  permitted to it by law,
either by suit in equity or by action at law, or both.

                                      -3-
<PAGE>

      5.  SUBORDINATION.  The  indebtedness  evidenced by this Note is a general
unsecured liability and is hereby expressly  subordinated,  to the extent and in
the manner  hereinafter  set forth,  in right of payment to the prior payment in
full of all of Company's current and future Senior Indebtedness.

      6. CONVERSION.

            (a)  Automatic   Conversion.   Effective   March  31st,   2005,  the
outstanding  principal  amount  of this  Note  (and  accrued  interest  upon the
election of the Company) shall be converted  automatically,  without any further
act of the Company or its shareholders,  into fully paid nonassessable shares of
Common Stock of the Company or such other series of preferred  securities issued
by the Company in a financing transaction after the date hereof, such conversion
to be  deemed  to  occur  simultaneously  with  the  closing  of  the  financing
transaction  and the  number  of  shares  of  Common  Stock  issuable  upon such
conversion to be determined  in accordance  with the  provisions of this Section
6(a).  The  Common  Stock  will  contain  what  is  commonly  called  "Piggyback
Registration  Rights"  which will be subject to customary  market  stand-off and
underwriter cutback provisions.

            The number of shares of Common Stock to be issued to the Holder upon
such  conversion  shall  be  determined  by  dividing  (A)  the  sum of (i)  the
outstanding  principal  balance and (ii) all accrued and unpaid interest through
the date of conversion  (if elected to be converted by the Company),  by (B) the
lesser  of the  price  per  share of the  Common  Stock in any  round of  equity
financing for which the company must issue shares, or one dollar ($1.00).

            In the alternative, at the Holder's sole option, Holder may elect to
convert into any financing  terms to which the Company has agreed after the date
hereof,  even if related  transaction  has not been fully  consummated  by March
31st,  2005; in such event,  Holder's note shall remain  unconverted  until such
closing has  occurred.  In the event that such closing does not occur,  Holder's
note shall then immediately  convert  according to the formula  described in the
precedent paragraph.

            (b) Issuance of Securities  on  Conversion.  As soon as  practicable
after  conversion of this Note,  the Company,  at its expense,  will cause to be
issued in the name of and delivered to the Holder of this Note, a certificate or
certificates  representing the number of fully paid and nonassessable  shares of
Common Stock to which Holder shall be entitled on such conversion. No fractional
shares will be issued on conversion of this Note.

            (c)  Termination  of Rights.  All rights  with  respect to this Note
shall  terminate  upon the  issuance of shares of the Common  Stock  issued upon
conversion  of this  Note,  whether  or not  this  Note  has  been  surrendered.
Notwithstanding  the foregoing,  the Holder agrees to surrender this Note to the
Company for cancellation as soon as is practicable  following conversion of this
Note.

      7.  SUCCESSORS  AND  ASSIGNS.  Subject  to the  restrictions  on  transfer
described in Section 9 below,  the rights and  obligations of Company and Holder
shall be binding upon and benefit the successors, assigns, heirs, administrators
and transferees of the parties.

      8. WAIVER AND AMENDMENT. Any provision of this Note may be amended, waived
or modified upon the written consent of Company and Holder.

      9. TRANSFER OF THIS NOTE OR SECURITIES ISSUABLE ON CONVERSION HEREOF. This
Note may only be transferred with the written consent of Company and Holder.

                                      -4-
<PAGE>

      10.  TREATMENT OF NOTE.  To the extent  permitted  by  generally  accepted
accounting  principles,  Company will treat, account and report the Note as debt
and not equity for  accounting  purposes and with  respect to any returns  filed
with federal, state or local tax authorities.

      11. NOTICES.  All notices and other  communications  required or permitted
hereunder shall be in writing,  shall be effective when given,  and shall in any
event be deemed to be given upon receipt or, if earlier, (a) five (5) days after
deposit with the U.S.  Postal Service or other  applicable  postal  service,  if
delivered by first class mail, postage prepaid, (b) upon delivery,  if delivered
by hand,  (c) one  business  day after the  business day of deposit with Federal
Express or similar  overnight  courier,  freight prepaid or (d) one business day
after the  business day of a facsimile  transmission,  if delivered by facsimile
transmission  with  copy by first  class  mail,  postage  prepaid,  and shall be
addressed (i) if to the Holder, at the Holder's address as set forth in the Note
Purchase Agreement or on the register maintained by the Company,  and (ii) if to
the Company,  at the address of its principal  corporate  offices  (Attn:  Chief
Executive Officer), or at such other address as a party may designate by written
notice to the other party pursuant to the provisions above.

      12.  GOVERNING  LAW.  This  Note  and  all  actions  arising  out of or in
connection  with this Note shall be governed by and construed in accordance with
the laws of the State of  Washington,  without  regard to the  conflicts  of law
provisions of the State of Washington or of any other state.

                                      -5-
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Note to be issued as of the date
first written above.

                                          DETTO TECHNOLOGIES, INC.
                                          a Delaware corporation

                                          By:
                                             -----------------------------------

                                          Print Name:
                                                     ---------------------------
                                          Title:
                                                --------------------------------

I HAVE READ, UNDERSTAND AND AGREE TO THE TERMS SET FORTH HEREIN.

                                          HOLDER

                                          By:
                                             -----------------------------------

                                          Print Name:
                                                     ---------------------------
                                          Title:
                                                --------------------------------

          [Signature Page to Subordinated Convertible Promissory Note]

                                      -6-Exhibit 10.1

                         EXECUTIVE EMPLOYMENT AGREEMENT

     This Executive Employment Agreement (the "Agreement") is made as of May 9,
2005 (the "Effective Date"), between Staktek Holdings, Inc., a Delaware
corporation (the "Company"), and Wayne Lieberman ("Executive").

     WHEREAS, the Company desires to retain the services of Executive as
President;

     WHEREAS, the Parties desire to enter into this Agreement to set forth the
terms and conditions of Executive's employment by the Company and to address
certain matters related to Executive's employment with the Company;

     NOW, THEREFORE, in consideration of the foregoing and the mutual provisions
contained herein, and for other good and valuable consideration, the Parties
hereto agree as follows:

     1. Employment. Effective on the Effective Date and subject to the terms and
conditions of this Agreement, the Company agrees to employ Executive as its
President, and Executive agrees to perform the duties associated with that
position diligently and to the reasonable satisfaction of the Company's Board of
Directors. From the Effective Date until termination of this Agreement,
Executive will devote Executive's full business time, attention and energies to
the business of the Company. Executive will report to the Chief Executive
Officer of the Company, and will comply with the reasonable directives,
policies, and guidelines established by the Company's Board of Directors from
time to time.

     2. Term and Termination.

     (a) Term. Executive will be employed under this Agreement for an initial
     term of two (2) years (the "Initial Term"), beginning on the Effective
     Date. This Agreement shall renew for successive one (1) year periods after
     the completion of the Initial Term unless either party gives written notice
     of termination at least forty-five (45) days prior to the expiration of the
     Initial Term, or any renewal term. As set forth in Section 3(d), upon
     termination by the Company without Cause, Executive shall be entitled to
     Severance Benefits. In the event the Initial Term or any subsequent renewal
     term expires and the Agreement is no longer in effect, the only provision
     that shall survive is Section 8 and Section 3 to the extent that there are
     any amounts payable to Executive.

     (b) Termination. Notwithstanding the foregoing, either party may terminate
     this Agreement at any time, with or without Cause (defined below), by
     giving written notice of termination to the other party. Upon termination,
     neither party will have any continuing obligation to the other party,
     except that the provisions of Sections 3(c), 3(d), 5, 7 and 8 and, to the
     extent not theretofore paid or provided in respect of services rendered
     prior to the date of termination, the provisions of Section 4, will survive
     any termination of this Agreement and will remain in effect in accordance
     with their terms.

     (c) Cause. For purposes of this Agreement, a termination of employment is
     for "Cause" if the termination occurs because of Executive's: (i)
     unauthorized use or disclosure of the confidential information or trade
     secrets of the Company, which use or disclosure causes, or could reasonably
     be expected to cause, material harm to the Company; however, Company
     confidential information or trade secrets does not include any information

<PAGE>

     that has become publicly known and made generally available through no
     wrongful act of Executive, or information already known to Executive prior
     to entering into this Agreement. Further, disclosure of confidential
     information or trade secrets made in the ordinary course of the Company's
     business under a non-disclosure agreement and in the best interest of the
     Company shall not be deemed an unauthorized use or disclosure; (ii)
     conviction of, or plea of "guilty" or "no contest" to, a felony or any
     crime involving moral turpitude; (iii) willful misfeasance or gross
     misconduct in the performance of Executive's duties; (iv) substance abuse
     that in any manner materially interferes with the performance of
     Executive's duties; (v) chronic absence from work for reasons other than
     illness; or (vi) failure to perform Executive's assigned duties, after
     receiving written notice from the Company, which shall be based on
     reasonable grounds relating to failure to perform, and an opportunity of at
     least thirty (30) days or whatever additional time may be reasonably
     necessary, not to exceed ninety (90) days, to correct any such failure
     and/or dispute the original notice.

     3. Compensation.

     (a) Beginning on the Effective Date, and thereafter during the term of
     Executive's employment, the Company will pay Executive a base salary at the
     rate of $22,916.66 per month (the "Base Salary"), payable in accordance
     with the standard payroll practices of the Company in effect from time to
     time. All of Executive's compensation under this Agreement will be subject
     to deduction and withholding authorized by Executive or required by
     applicable law. Salary adjustments will be determined by the Board of
     Directors, in its sole and absolute discretion, on at least an annual
     basis; however, under no circumstances may Executive's salary be reduced
     below the Base Salary without his consent.

     (b) Beginning on the Effective Date, Executive will be eligible to
     participate in the Company's profit sharing program (attached hereto as
     Exhibit A, and as may be amended by the Company from time to time) on
     substantially the same terms as other executives of the Company.
     Executive's maximum potential payout under the program is 100% of
     Executive's annual base salary. Executive is entitled to a minimum bonus
     payment of $25,000 per quarter for each quarter beginning with the second
     quarter of 2005 and ending with the first quarter of 2006. After March 31,
     2006, Executive is not entitled to any minimum bonus payment.

     (c) Upon approval by the Company's Board of Directors, Executive will be
     granted (i) an option to purchase up to Five Hundred Seven Thousand Five
     Hundred Seven (507,507) shares of the Company's common stock, and (ii) an
     option to purchase an additional Five Hundred Thousand (500,000) shares of
     the Company's common stock, which with respect to (ii), exercisability is
     subject to approval of the Company's stockholders (both grants,
     collectively the "Option Shares"), at an exercise price equal to the
     closing price on Nasdaq on the first day following the Company's restricted
     trading period with respect to its first quarter 2005 earnings
     announcement. Consistent with the terms of the Company's 2003 Stock Option
     Plan, 25% will vest on the first anniversary of the Effective Date of this
     Agreement, with the remaining Shares vesting in equal monthly installments
     over the following thirty-six (36) months of Executive's employment with
     the Company. Except as otherwise provided in this Agreement, vesting of
     Option Shares shall cease upon the termination of Executive's employment
     with the Company. The Option will be structured as an incentive stock
     option to the extent permitted by IRS regulations. Following a "Change in
     Control" (as defined in the 2003 Option Plan), the Option will vest in full
     if: (A) the Option is not assumed or substituted by the successor or; (B)
     if the Executive's employment is terminated without Cause during the first
     twenty-four (24) months following the closing of the Change in Control
     transaction.

                                       2
<PAGE>

     (d) In the event of a termination without Cause, the Company agrees: (A) to
     continue to pay Executive his then-current Base Salary for an additional
     twelve (12) months following the termination date, with the payments to be
     made in accordance with the Company's standard payroll practices, and on
     the Company's normal paydays; and (B) to accelerate vesting of the Option
     Shares that would have vested over the twelve (12) months following the
     termination date; however, if required by Section 409A of the Internal
     Revenue Code, these payments and acceleration may not begin until the first
     day of the seventh month following Executive's termination of employment.
     The payments and the accelerated vesting of Option Shares set forth in this
     section shall be referred to collectively as the "Severance Benefits."
     Executive's right to the Severance Benefits is expressly conditioned on
     Executive's execution of a customary general release of claims in favor of
     the Company, its affiliates and their respective directors, officers,
     employees, shareholders and partners, and his compliance with the surviving
     provisions of this Agreement and the Company's Confidentiality Agreement.

     4. Executive Benefits. Beginning on the Effective Date and thereafter
during the term of this Agreement, the Company will provide to Executive such
fringe benefits and perquisites that the Company provides to other executives of
the Company, including four (4) weeks of vacation and participation in all
Company health, dental and other employee benefit plans. In addition, the
Company will reimburse Executive for reasonable out-of-pocket business expenses
incurred and documented in accordance with the policies of the Company in effect
from time to time. The Company will reimburse Executive for up to $100,000 in
relocation expenses, as well as one house-hunting trip to Austin, Texas for
Executive and his immediate family in accordance with Staktek's Travel Policy,
subject to the terms and conditions of the relocation agreement attached as
Exhibit B. In addition, for a period of one (1) year from the Effective Date,
Executive is entitled to purchase up to $1.5 million of treasury shares of the
Company's common stock directly from the Company as a private placement, at a
price per share equal to the closing price on Nasdaq on the date of purchase.
This stock will not be subject to vesting but will be subject to Rule 144
promulgated under the Securities Act of 1933, other applicable state and federal
securities laws and the Company's policy on insider trading, including the
Company's restricted trading periods. The Company agrees to reimburse Executive
to up to $5,000 for Executive's current life insurance policy, as long as
Executive provides copies of receipts.

     5. Restrictive Covenants.

     (a) Consideration For Promise To Refrain From Competing. Executive agrees
     that his services to the Company are special and unique; that the Company's
     disclosure of confidential and proprietary information, trade secrets, and
     specialized training and knowledge to Executive and Executive's level of
     compensation, Severance Benefits and other benefits are in consideration of
     and conditioned upon Executive's covenant not to compete with Company
     following his termination as provided for in this Section 5. Executive
     further acknowledges and agrees that the benefits received by Executive
     pursuant to this Agreement constitute adequate consideration for
     Executive's agreement to this Section 5. Executive acknowledges that this
     consideration is adequate for Executive's promises contained within this
     Section 5 and gives rise to the Company's interest in ensuring that he
     refrains from post-termination competition as provided for herein.

                                       3
<PAGE>

     (b) Covenant Not to Compete. The "Noncompetition Period" will begin on the
     Effective Date and end twelve (12) months after the date on which
     Executive's employment with the Company terminates for any reason (the
     "Termination Date"). During the Noncompetition Period, Executive will not,
     directly or indirectly, on Executive's own behalf or as an officer,
     director, employee, consultant or other agent of, or as a stockholder,
     partner or other investor in, any person or entity (other than the Company
     or its affiliates):

          (i) Engage in (i) the development, design, manufacture or sale of
          memory module stacking technology, (ii) the development, design,
          manufacture or sale of DIMM manufacturing technology, or (iii) any
          other business of the Company (the "Competing Business"), in each case
          for any competing business within any geographic area in which the
          Company or its subsidiaries conducts any business (including the
          United States) (the "Territory"). Executive shall not be precluded
          from working for any company so long as he does not engage in the
          specific prohibited activities described herein this section.

          (ii) Directly or indirectly influence or attempt to influence any
          customer, potential customer, supplier or accounts of the Company or
          its subsidiaries located within the Territory to purchase, sell or
          lease goods or services relating to a Competing Business other than
          from or to the Company; or

          (iii) Solicit, encourage, or take any other action which is intended,
          directly or indirectly, to induce any other employee of the Company to
          terminate such employee's employment with the Company, or interfere in
          any manner with the contractual or employment relationship between the
          Company and any other employee of the Company, or hire or attempt to
          hire any former employee of the Company whose termination from
          employment has been effective for ninety (90) days or less.

Provided, however, that the foregoing restrictions will not apply to any
investment in publicly traded securities constituting not more than 5% of the
outstanding securities in any class of such securities. For purposes of this
Agreement, the term "affiliate" means with respect to any person or entity any
other person or entity controlling, controlled by or under common control with
such person or entity. For purposes of this Section 5, the definition of
"Business" will be the business of the Company as of the date of Executive's
termination and the business of the Company actually proposed to be entered into
as evidenced by written and adopted business plans of the Company.

     6. Directors' and Officers' Insurance. Company shall maintain a minimum of
Ten Million Dollars ($10,000,000) of Directors' and Officers' ("D&O") Insurance
while Executive is employed. The D&O policy shall be a third-party product. The
Company's failure to maintain uninterrupted D&O insurance coverage shall be
deemed a material breach of this Agreement, which shall entitle Executive to the
Severance Benefits, as defined and described above in Section 3(d).

     7. Enforcement

     (a) Executive represents to the Company that Executive is willing and able
     to engage in businesses other than a Competing Business within the
     Territory and that enforcement of the restrictions set forth in Section 5
     would not be unduly burdensome to Executive. The Company and Executive
     acknowledge and agree that the restrictions set forth in Section 5 are
     reasonable as to time, geographic area and scope of activity and do not
     impose a greater restraint than is necessary to protect the goodwill and
     other business interests of the Company, and Executive agrees that that the
     Company is justified in believing the foregoing.

                                       4
<PAGE>

     (b) If the provisions of Section 5 are found by a court of competent
     jurisdiction to contain unreasonable or unnecessary limitations as to time,
     geographical area or scope of activity, then such court is hereby directed
     to reform such provisions to the minimum extent necessary to cause the
     limitations contained therein as to time, geographical area and scope of
     activity to be reasonable and enforceable.

     (c) Executive acknowledges and agrees that the Company would be irreparably
     harmed by any violation of Executive's obligations under Section 5 hereof
     and that, in addition to all other rights or remedies available at law or
     in equity, the Company will be entitled to injunctive and other equitable
     relief to prevent or enjoin any such violation. If Executive violates
     Section 5, the period of time during which the provisions thereof are
     applicable will automatically be extended for a period of time equal to the
     time that Executive began such violation until such violation permanently
     ceases.

     8. Confidentiality and Proprietary Rights. Executive agrees to read, sign
and abide by a Confidentiality Agreement, which is attached hereto as Exhibit A
and incorporated herein by reference.

     9. Mediation. In the event that any disputes arise between the Parties with
respect to this Agreement, the Parties acknowledge and agree that prior to
initiating any litigation regarding such dispute, they shall submit their
dispute to a mutually agreeable mediator for purposes of conducting non-binding
mediation in an effort to resolve the dispute without the necessity of
litigation.

     10. No Obligation to Third Party. Executive represents and warrants that
Executive is not under any obligation to any person or other third party and
does not have any other interest which is inconsistent or in conflict with this
Agreement, or which would prevent, limit, or impair Executive's performance of
any of the covenants hereunder or Executive's duties as an employee of the
Company.

     11. Entire Agreement. This Agreement, along with the agreements and
documents that make up the 2003 Stock Option Plan and the Company's Employee
Innovations and Proprietary Rights Assignment Agreement (which are incorporated
herein by reference), embodies the complete agreement of the parties with
respect to the subject matter hereof and supersedes any prior written, or prior
or contemporaneous oral, understandings or agreements between the parties that
relate in any way to the subject matter hereof. This Agreement may be amended
only in writing executed by the Company and Executive.

     12. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the respective heirs, executors, administrators, legal
representatives and successors of the Company and Executive.

     13. Notice. Any notice required or permitted under this Agreement must be
in writing and will be deemed to have been given when delivered personally, by
telecopy or by overnight courier service or three days after being sent by mail,
postage prepaid, to (a) if to the Company, to the Company's principal place of
business, or (b) if to Executive, to Executive's residence or to Executive's
latest address then contained in the Company's records (or to such changed
address as such person may subsequently give notice of in accordance herewith).

                                       5
<PAGE>

     14. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH SUBSTANTIVE LAWS OF TEXAS, WITHOUT GIVING EFFECT
TO ANY CONFLICTS OF LAW, RULE OR PRINCIPLE THAT MIGHT REQUIRE THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION.

     15. Counterparts. This Agreement may be executed in counterparts and by
different parties hereto on separate counterparts, each of which counterparts,
when so executed and delivered, shall be deemed to be an original and all of
which counterparts, taken together, shall constitute but one and the same
Agreement.

                                       6
<PAGE>

     IN WITNESS WHEREOF, the Company and Executive have executed and delivered
this Agreement as of the date first above written.

                                             STAKTEK HOLDINGS, INC.

                                             By:    /s/ James W. Cady
                                                    -----------------
                                             Name:  James W. Cady
                                             Title: CEO

                                             EXECUTIVE

                                             /s/ Wayne Lieberman
                                             -------------------

                                             WAYNE LIEBERMAN

                                       7
<PAGE>

                                    Exhibit A

                                       8

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