Document:

Ground Lease Agreement

 Exhibit 10.14 
 GROUND LEASE AGREEMENT 
 between 
 WINDCREST ECONOMIC DEVELOPMENT CORPORATION, as Landlord, 
 and RACKSPACE US, INC. as Tenant 
  

														
	1.	 			 	Definitions	  	1
		 	(a	)	 			 			 	Effective Date	  	1
		 	(b	)	 			 			 	Leased Premises	  	1
		 	(c	)	 			 			 	Lease Year	  	1
		 	(d	)	 			 			 	Permitees	  	1
		 	(e	)	 			 			 	Permitted Exceptions	  	1
		 	(g	)	 			 			 	Site Plan	  	1
	2.	 			 	Demise, Term	  	1
		 	(a	)	 			 			 	Demise and Grant of Leased Premises	  	1
		 	(b	)	 			 			 	Term	  	2
		 	(c	)	 			 			 	Reserved	  	2
		 	(d	)	 			 			 	Quiet Enjoyment	  	2
		 	(e	)	 			 			 	Landlord’s Title, Subordination	  	2
		 			 	(1	)	 			 	    Title	  	2
		 			 	(2	)	 			 	    Landlord’s Pledge and Subordination of Fee Title	  	2
		 			 	(3	)	 			 	    No Actions	  	3
		 			 	(4	)	 			 	    Authority	  	3
		 	(f	)	 			 			 	Condition of Leased Premises.	  	3
	3.	 			 	Rent	  	3
		 	(a	)	 			 			 	Rent	  	3
		 	(b	)	 			 			 	Tax Exemption	  	3
		 	(c	)	 			 			 	No Operation Required	  	4
	4.	 			 	Improvements, Signs, Additions and Repairs	  	4
		 	(a	)	 			 			 	Delivery of Leased Premises	  	4
		 	(b	)	 			 			 	Alterations and Improvements	  	4
		 	(c	)	 			 			 	No Mechanic’s Liens	  	5
		 	(d	)	 			 			 	Environmental	  	5
		 	(e	)	 			 			 	Repairs	  	6
		 	(f	)	 			 			 	Tenant’s Fixtures	  	6
	5.	 			 	Utilities	  	6
	6.	 			 	Use, Transfers or Assignments	  	6
		 	(a)	 	 			 			 	Tenant’s Use	  	6
		 	(b)	 	 			 			 	Assignment, Subletting	  	6
		 	(c)	 	 			 			 	Transfer, Mortgage by Landlord	  	6
		 	(d)	 	 			 			 	Tenant’s Purchase Option	  	6
		 			 	(1	)	 			 	    Purchase Option	  	6
		 			 	(2	)	 			 	    Exercise of Purchase Option	  	7
		 			 			 	(i	)	 	        Purchase Price	  	7
		 			 			 	(ii	)	 	        Conveyance	  	7

  

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		 		 		 	(iii)	 	        Closing Date	  	8
		 		 		 	(iv)	 	        No Encumbrances	  	8
		 		 	(3)	 		 	    Escrow of Deed and Bill of Sale	  	8
		 		 	(4)	 		 	    Memorandum of Purchase Option	  	8
	7.	 		 	Indemnification, Insurance	  	9
		 	(a)	 		 		 	Indemnification	  	9
		 	(b)	 		 		 	Tenant’s Insurance	  	9
		 	(c)	 		 		 	Worker Compensation	  	9
		 	(d)	 		 		 	Scope	  	9
		 	(e)	 		 		 	Waiver of Subrogation	  	9
	8.	 		 	Destruction, Condemnation	  	10
		 	(a)	 		 		 	Destruction	  	10
		 		 	(1)	 		 	    Cancellation	  	10
		 		 	(2)	 		 	    Restoration	  	10
		 		 	(3)	 		 	    Insurance Proceeds	  	10
		 	(b)	 		 		 	Condemnation	  	10
		 		 	(1)	 		 	    Taking of Parking or Access	  	10
		 		 	(2)	 		 	    Awards	  	10
		 		 	(3)	 		 	    Restoration	  	10
	9.	 		 	Default	  	10
		 	(a)	 		 		 	Events of Default	  	11
		 		 	(1)	 		 	    Obligations	  	11
		 		 	(2)	 		 	    Bankruptcy	  	11
		 	(b)	 		 		 	Landlord’s Remedies	  	11
		 		 	(1)	 		 	    No Termination	  	11
		 		 	(2)	 		 	    Waiver of Landlord’s Lien	  	11
		 		 	(3)	 		 	    Landlord’s and Tenant’s Remedies	  	11
	10.	 		 	Tenant’s Mortgagee Requirements	  	12
		 	(a)	 		 		 	Tenant’s Personal Property	  	12
		 	(b)	 		 		 	Right to Encumber	  	12
	11.	 		 	General Provisions	  	12
		 	(a)	 		 		 	Notice	  	12
		 	(b)	 		 		 	Entire Agreement	  	13
		 	(c)	 		 		 	Commission	  	13
		 	(d)	 		 		 	Force Majeure	  	13
		 	(e)	 		 		 	Surrender	  	14
		 	(f)	 		 		 	Reserved	  	14
		 	(g)	 		 		 	Applicable Law, Construction	  	14
		 	(h)	 		 		 	Time of the Essence	  	14
		 	(i)	 		 		 	Captions	  	14
		 	(j)	 		 		 	Gender, Number	  	14
		 	(k)	 		 		 	Counterparts	  	14
		 	(l)	 		 		 	Binding Effect	  	14

  

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 GROUND LEASE AGREEMENT 
 THIS GROUND LEASE AGREEMENT (“Lease”) is entered into by and between WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B
corporation created pursuant to the Texas Development Corporation Act of 1979, as amended (“Landlord”) and RACKSPACE US, INC., a Delaware corporation (“Tenant”). For valuable consideration the parties agree and act as follows:

 1. Definitions. The following terms have the meanings set forth below: 
 (a) Effective Date. The date this Lease is signed by both Landlord and Tenant as reflected on the signature page hereof. 
 (b) Leased Premises. Approximately 66.9915 acres of land (the “Land”) located in the City of San Antonio, Bexar County, Texas, described
by metes and bounds in Exhibit A hereto and depicted on the Site Plan attached hereto as Exhibit A-1, together with (i) any and all improvements now or hereafter situated on the Land, including but not limited to the existing
buildings constructed thereon comprising approximately 1,245,000 square feet (collectively, the “Improvements”), (ii) any and all fixtures, personal property and equipment now or hereafter situated on the Land and/or the Improvements,
and (iii) any and all appurtenances, easements and privileges pertaining to the Land, the Improvements and/or the items listed in clauses (i) and (ii) above. 
 (c) Lease Year. Each twelve (12) month period commencing on the first day of the first full month of the Term of this Lease following the
Effective Date, or anniversary of such date. 
 (d) Permitees. All partners, officers, directors, employees, agents, contractors,
customers, visitors and invitees of Tenant at the Leased Premises. 
 (e) Permitted Exceptions. The conditions, restrictions,
easements and encumbrances, if any, affecting title to the Leased Premises set forth in Exhibit B. 
 (f) Site Plan. The plat
map or drawing depicting the Leased Premises attached hereto as Exhibit A-1. 
 2. Demise, Term. 
 (a) Demise and Grant of Leased Premises. Landlord hereby leases to Tenant and Tenant accepts from Landlord under the terms, provisions and
conditions of this Lease the Leased Premises commencing on the Effective Date hereof and continuing until the expiration or earlier termination of the Term as hereinafter provided. 
  

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 (b) Term. The primary term (“Primary Term”) of this Lease shall commence as of the
Effective Date hereof, and shall expire on the last day of the Three Hundred Sixtieth (360th) full month following the Effective Date, subject to earlier termination as provided in paragraph 3(b) below. The Primary Term and any extension
thereof pursuant to paragraph 2(c) below is hereinafter referred to as the “Term”. 
 (c) Reserved. 
 (d) Quiet Enjoyment. Upon Tenant’s payment of all rent hereunder and observance and performance of all of the covenants, terms and conditions
to be observed and performed by Tenant pursuant to this Lease, Tenant shall have throughout the Term the peaceful, quiet and undisturbed use and possession of the Leased Premises and all rights and privileges appertaining thereto, subject to the
terms, conditions and provisions of this Lease. 
 (e) Landlord’s Title, Subordination. Landlord covenants, represents and
warrants to Tenant as follows: 
 (1) Title. Landlord hereby represents and warrants that it owns good and indefeasible fee simple
title in and to the Leased Premises, subject only to the Permitted Exceptions, and has full right and authority to make this Lease. This Lease shall not be recorded; however, to establish the status of Landlord’s title and to establish the
priority of this Lease as a condition of title, Landlord and Tenant shall execute on the date hereof a Memorandum of this Lease in the form attached hereto as Exhibit C which may be recorded by Tenant at any time following the Effective Date.
In the event this Lease is terminated for any reason, at the request of either Landlord or Tenant, the other party shall execute such documentation as may be reasonably required to terminate such Memorandum of Lease. Tenant shall have the right, at
its expense and as a condition to its obligations hereunder, to receive an Owner Policy of Title Insurance (with Leasehold Endorsement) covering the Leased Premises reflecting no exceptions other than the Permitted Exceptions. 
 (2) Landlord’s Pledge and Subordination of Fee Title. Landlord shall not at any time create or acquiesce to the creation of any liens
against the Leased Premises except those (i) created or to be created by Tenant as provided herein or (ii) imposed by operation of law. Upon Tenant’s request, from time-to-time, Landlord will pledge its fee title in and to the Leased
Premises to any lender(s) of Tenant and subordinate its title to the Leased Premises to any lien or liens created by Tenant in favor of such lender(s) to the extent such lien(s) secure loan(s) to Tenant used in whole or in part for the payment of
the Rent or the cost of constructing improvements to the Leased Premises or to refinance any such costs, and Landlord shall execute such documents as Tenant’s lender(s) may reasonably request to effectuate such pledge and subordination,
including but not limited to a deed of trust lien and other related security agreements conveying to Tenant’s lender(s) a first lien in and to fee title to the Leased Premises. Tenant shall be responsible for reimbursement of reasonable
out-of-pocket legal expenses incurred by Landlord in connection with the negotiation and preparation of documentation relating to such pledge and subordination. Notwithstanding the foregoing, any such subordination shall provide Landlord with the
right to a 30 day notice and cure period to pay the outstanding debt and to maintain ownership of the Leased Property. 
  

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 (3) No Actions. There are no actions, suits or proceedings pending or to the best of
Landlord’s knowledge, threatened against Landlord and affecting any portion of the Leased Premises, at law or in equity, or before any federal, state, municipal or other governmental court, department, commission, board, bureau, agency or
instrumentality, domestic or foreign. 
 (4) Authority. The execution and consummation of this Lease by Landlord has been duly
authorized and does not result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, agreement, instrument or obligation to which Landlord is a party or by which the Leased Premises or any portion thereof is
bound. 
 (f) Condition of Leased Premises. TENANT UNDERSTANDS AND ACKNOWLEDGES ITS ACCEPTANCE OF THE LEASED PREMISES IS WITHOUT
RECOURSE, REPRESENTATION OR WARRANTY (EXCEPT AS SPECIFICALLY SET OUT HEREIN) OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY AND LANDLORD IS LEASING THE LEASED PREMISES AS IS, WHERE IS, AND WITH ALL FAULTS, AND WITHOUT REPRESENTATIONS OR WARRANTY (ALL OF
WHICH LANDLORD HEREBY DISCLAIMS) AS TO FITNESS FOR ANY PARTICULAR PURPOSE, MERCHANTABILITY, DESIGN, QUALITY, LAYOUT, FOOTAGE, PHYSICAL CONDITION, OPERATION, COMPLIANCE WITH SPECIFICATIONS, ABSENCE OF LATENT DEFECTS, OR COMPLIANCE WITH LAWS AND
REGULATIONS. TENANT HEREBY ASSUMES ALL RISK AND LIABILITY (AND AGREES THAT GRANTOR SHALL NOT BE LIABLE FOR ANY SPECIAL, DIRECT, INDIRECT, CONSEQUENTIAL, OR OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATING TO THE OCCUPANCY, CONSTRUCTION, USE,
CONDITION, LOCATION, MAINTENANCE, REPAIR, OR OPERATION OF THE LEASED PREMISES. TENANT ACKNOWLEDGES THAT TENANT HAS INSPECTED THE LEASED PREMISES AND ACCEPTS THE LEASED PREMISES “AS IS”, “WHERE IS” AND “WITH ALL FAULTS”
AND HAS DELIVERED THE CERTIFICATION ATTACHED HERETO AS EXHIBIT D. 
 3. Rent. Tenant shall pay Landlord the following amounts:

 (a) Rent. Upon the Effective Date, Tenant shall pay to Landlord as rent
(“Rent”) for the Leased Premises the sum of Thirty-two Million Six Hundred Seventy-three Thousand One Hundred Thirty-seven and  55/100 Dollars ($32,673,137.55) in good and immediately payable funds, representing total prepayment of all sums of Rent due under this Lease. It is expressly understood that no additional Rent shall be payable by Tenant to
Landlord at any time with respect to the Primary Term. 
 (b) Tax Exemption. Landlord and Tenant acknowledge and agree that
contemporaneously with the execution hereof they have entered into a Master Economic Incentives Agreement (“EIA”) pursuant to which the Leased Premises is to be “tax exempt” (i.e. no real property taxes or other like assessments
(“Taxes”) are expected to be assessed against the Leased Premises), including without limitation, during the Exemption Period as defined in the EIA (the “Tax Exemption”). 
  

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 If during the Term of this Agreement, Taxes shall become due and owing concerning the Leased Premises
and/or the Personal Property, and Tenant has not terminated this Lease as provided in paragraph 6(d)(2) below, Tenant shall thereafter pay directly to the applicable taxing entity if permitted by such taxing entity; or, in the alternative, to
Landlord and such taxing entity by way of a joint check as tax cost (“Tax Cost”) the Taxes assessed against the Leased Premises for any prior, current or subsequent Lease Year during the Term. In such event, Tax Cost shall be paid
prior to the delinquency date for such Taxes, but in no event earlier than ten (10) days after written notice of the Tax Cost is delivered to Tenant by the applicable taxing authority, along with copies of statements of assessed value and tax
statements applicable to each Lease Year to which such Tax Cost applies. Tenant shall have the first and prior right to contest the amount or validity of the Taxes pertaining to the Leased Premises by appropriate administrative and legal proceedings
brought either in its own name, Landlord’s name or jointly, as Tenant deems appropriate. Landlord shall cooperate with Tenant in its efforts to minimize the Taxes to the lowest possible level but Landlord shall not be required to incur any cost
or expense in connection therewith. Landlord shall from time-to-time execute and deliver to Tenant whatever documents may be reasonably required by governmental authorities to evidence Tenant’s authority to contest Taxes attributable to the
Leased Premises. Landlord will send Tenant copies of any assessed values and statements received by Landlord promptly upon receipt and Tenant shall have the right, at its own expense, in good faith, to contest any such values, Taxes or payments in
lieu of Taxes and permit the items so contested to remain unpaid during the period of contest and any appeal therefrom, provided that prior to the date the Taxes would become delinquent, Tenant provides a bond or other security required by
applicable law and otherwise reasonably satisfactory to Landlord in the full amount of the unpaid Taxes, together with any penalties, interest or fees attributable thereto that are due or are reasonably anticipated to accrue between the date thereof
and the date of final payment of the Taxes. Landlord shall be responsible for payment of any and all Taxes attributable to the Rent to be paid by Tenant or other income of Landlord related to the Leased Premises. 
 (c) No Operation Required. Tenant shall have no obligation whatsoever to open or to operate or continue operations of any type within or upon the
Leased Premises, except that the parties acknowledge that the EIA provides for the loss or reduction in Tax Exemptions if a Cessation of Business Activities (as defined in the EIA) should occur. 
 4. Improvements, Signs, Additions and Repairs. 
 (a) Delivery of Leased Premises. Landlord shall deliver exclusive possession of the Leased Premises to Tenant upon the Effective Date, subject only to the Permitted Exceptions. 
 (b) Alterations and Improvements. Tenant may from time-to-time construct, alter, change, and/or demolish any improvements, signs, driveways,
parking areas or other improvements now or hereafter situated on the Leased Premises, including but not limited to the Improvements (all of such improvements constructed, altered and/or changed by Tenant during the Term being hereinafter referred to
collectively as the “Tenant Improvements”); provided, however, that any such construction, alterations, additions or changes shall be subject to the following: 
 (1) All such work shall be performed in a good and workmanlike manner; 
  

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 (2) Such construction, alterations, additions or changes shall not violate any building regulation
applicable to the Leased Premises, and shall be in compliance with all applicable building codes, rules, regulations and ordinances affecting construction of such alterations, additions and changes; and 
 (3) At Tenant’s election, Landlord shall serve as the general contractor for the construction of the Tenant Improvements to the extent necessary to
exempt the Tenant Improvements from sales and use taxes. In such event, Landlord and Tenant shall enter into a construction contract on terms and conditions mutually acceptable to each of them pursuant to which Landlord agrees to construct the
Tenant Improvements, Tenant agrees to pay all third-party costs approved by Tenant with respect to such construction with no additional costs to be charged to Landlord and with no fees being payable by Tenant to Landlord for its services as general
contractor, and Tenant agrees to indemnify and hold harmless Landlord from and against any liability, damages and third-party costs it may incur as a result of its so acting as the general contractor for the Tenant Improvements. 
 (c) No Mechanic’s Liens. Tenant shall not permit any mechanic’s or materialman’s liens to be filed against Landlord’s interest
in the Leased Premises arising out of the Tenant Improvements (unless the same are fully bonded so as to cause same to be removed in accordance with applicable law), and Tenant shall indemnify, and hold harmless Landlord from and against any costs,
liability or expense, including attorneys fees, attributable to any such liens. Tenant’s obligations under this paragraph 4(c) shall expressly survive the expiration or earlier termination of this Lease. 
 (d) Environmental. Tenant will conduct its business in a lawful manner and will not make or permit any unlawful use of the Leased Premises. Tenant
will, at its own expense, promptly comply with all laws, regulations, and ordinances affecting the Leased Premises and the cleanliness, safety, occupancy, and use thereof. Tenant shall indemnify, defend (using counsel acceptable to Landlord in its
reasonable discretion) and hold harmless Landlord from and against any cost, liability or expense arising out of or attributable to any claims, demands, causes of action, fines, penalties, liability or expenses (including attorney’s fees and
court costs) arising out of or related to the existence, removal or disposal of any toxic or hazardous substances or materials within or upon the Leased Premises caused by Tenant, its employees, agents or representatives during the Term of this
Lease following the Effective Date. For purposes hereof, the phrase “toxic or hazardous substances or materials” shall include items covered by the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
§§9601-75(1986), as amended by the Superfund Amendment and Reauthorization Act, Pub. L. No. 99-499, 100 Stat. 1613 (1986) (“CERCLA”), The Toxic Substances Control Act, 15 U.S.C. §2601 et seq., The Clean Water Act,
33 U.S.C. §1251 et seq., The Safe Drinking Water Act, 42 U.S.C. §§300(f)-300(j), and other federal, state and local laws now or hereafter in effect governing the existence, removal or disposal of toxic or hazardous substances or
materials. Tenant’s obligations under this paragraph 4(d) shall expressly survive the expiration or earlier termination of this Lease. 
  

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 (e) Repairs. Tenant shall, at its sole cost and expense, perform all repairs and preventative
maintenance necessary to maintain the Leased Premises in good condition and repair, ordinary wear and tear excepted, and keep the Leased Premises in compliance with applicable law throughout the Term. The foregoing shall not in any way impair or
limit Tenant’s right to make alterations or additions to the Leased Premises as set forth in paragraph 4(b) above. Tenant’s obligations under this paragraph 4(e) shall expressly survive the expiration or earlier termination
of this Lease. 
 (f) Tenant’s Fixtures. Tenant may install in or upon the Leased Premises such trade fixtures and equipment as
Tenant deems desirable and all of said items shall remain Tenant’s property whether or not affixed or attached to the Leased Premises, except to the extent Tenant elects to cause Landlord to acquire such property and lease it to Tenant as
provided in Section 3.7 of the EIA (“Personal Property Lease”). Tenant may remove such items from the Leased Premises at any time during the Term, except to the extent, if any, that such removal is prohibited by the Personal Property
Lease. Nothing contained in this Section 4(f) shall diminish Tenant’s obligations to maintain the Leased Premises pursuant to Section 4(e). 
 g) Platting, Approvals. Landlord and Tenant acknowledge that it may be necessary, from time-to-time, for Tenant to seek governmental approvals with respect to platting, zoning, permitting and/or obtaining
other permits in connection with its use and occupancy of the Leased Premises for the uses permitted hereby (collectively, “Approvals”). Landlord agrees to cooperate with Tenant with respect to its obtaining the Approvals
and to execute such documents as may be required of the owner of fee title to the Leased Premises in order for Tenant to obtain the Approvals, provided that Landlord shall not incur any costs or liabilities in connection therewith. 
 5. Utilities. Landlord hereby transfers and assigns to Tenant, commencing on the Effective Date, all rights and entitlements of Landlord
attributable to the use, delivery and consumption of utilities at the Leased Premises. Tenant shall arrange with the appropriate utility suppliers for services to the Leased Premises, pay all connection, meter and service charges and deposits
required to connect utilities to the Leased Premises, and pay such utility suppliers directly for such services. 
 6. Use, Transfers or
Assignments. 
 (a) Tenant’s Use. Except as prohibited or restricted by the Permitted Exceptions, Tenant may use the Leased
Premises for any lawful purpose. Notwithstanding the foregoing, Tenant acknowledges that failure to use the Leased Premises for Business Activities (as defined in the EIA) may result in the loss or reduction in the Tax Exemptions pursuant to the
EIA. 
 (b) Assignment, Subletting. Tenant may assign all or any part of this Lease or sublet all or any part of the Leased Premises
without Landlord’s consent. In the case of any assignment or sublease permitted hereunder, Tenant shall not be released from liability. In the event of any assignment of this Lease, Tenant shall provide written notice to Landlord of such
assignment, which notice shall include the name, address and telephone number of the assignee. 
  

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 (c) Transfer, Mortgage by Landlord. Landlord shall not convey or mortgage, or propose to convey or
mortgage, all or any part of its interest in the Leased Premises. 
 (d) Tenant’s Purchase Option. 
 (1) Purchase Option. For and in consideration of the sum of Fifty and No/100 Dollars ($50.00) and other good and valuable consideration paid by
Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged, the same constituting independent consideration for this Purchase Option, commencing upon the Effective Date and continuing throughout the Term (as the same may be
extended), Tenant shall have the continuing, exclusive right to purchase the Leased Premises from Landlord (the “Purchase Option”) pursuant to the terms, conditions, and provisions set forth hereinbelow. If Tenant elects to exercise the
Purchase Option, Tenant shall deliver to Landlord and the Escrow Agent (as defined in paragraph 6(d)(3) below) written notice (the “Purchase Option Notice”) of such election on or before thirty (30) days prior to the expiration
of the Term. Notwithstanding the foregoing, if Tenant has failed to deliver the Purchase Option Notice within such thirty (30) day period, the Purchase Option shall continue for a period of fifteen (15) days following Tenant’s receipt
of written notice from Landlord (“Option Termination Notice”) stating that “TENANT HAS FAILED TO DELIVER THE PURCHASE OPTION NOTICE WITHIN THE TIME PERIOD SPECIFIED IN PARAGRAPH 6(D) OF THE LEASE”, and unless Tenant
provides written notice to Landlord within such 15-day period following Tenant’s receipt of the Option Termination Notice that Tenant elects not to exercise the Purchase Option, then Tenant shall be deemed to have delivered the Purchase Option
Notice to Landlord and Escrow Agent within the time period required hereby and the parties shall proceed with the Purchase Closing as provided in (2) below. 
 (2) Exercise of Purchase Option. If Tenant elects (or is deemed to have elected) to exercise the Purchase Option, the following terms, provisions, and conditions shall apply to the closing thereof
(“Purchase Closing”): 
 (i) Purchase Price. The purchase price (the “Purchase Price”) for the Leased Premises
shall be the cash sum of One and No/100 Dollar ($1.00) plus the independent consideration previously paid by Tenant to Landlord as described above; it being expressly acknowledged that as of the Purchase Closing Tenant shall have paid to Landlord as
Rent the full fair market value of the Leased Premises and that the Purchase Price is in recognition of such fact and not a penalty. 
 (ii)
Conveyance. At the Purchase Closing, Landlord shall execute and deliver to Tenant all of the documents necessary to convey to Tenant good and indefeasible fee simple title in and to the Leased Premises by special warranty deed and a bill of
sale, as applicable, free and clear of all liens or encumbrances, other than (i) the Permitted Exceptions applicable thereto, and (ii) all other matters created (x) by, through, or under Tenant, or (y) by Landlord pursuant to the
written request of Tenant. Tenant may, at its expense, obtain an Owner Policy of Title Insurance insuring Tenant’s fee simple title subject only to the Permitted Exceptions. 
  

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 (iii) Closing Date. The Purchase Closing shall occur within thirty (30) days following
Tenant’s delivery (or deemed delivery) to Landlord of the Purchase Option Notice. 
 (iv) No Encumbrances. Landlord covenants
that it shall not create, or acquiesce in the creation of, any restrictions, easements, liens or encumbrances, other than the Permitted Exceptions, that affect the Leased Premises at any time during the Term of this Lease without the prior written
consent of Tenant, which consent may be withheld in Tenant’s sole discretion. Landlord further covenants that, except for the rights granted to Tenant hereunder, Landlord has not entered into any contracts or agreements to transfer, convey or
encumber the Leased Premises or grant any interest therein and, following the date hereof, Landlord shall not enter into any agreements to transfer, convey or otherwise encumber the Leased Premises or grant any interest therein. 
 (3) Escrow of Deed and Bill of Sale. Contemporaneously with the execution of this Lease, Landlord has delivered to Alamo Title Company, 112 E.
Pecan, San Antonio, Texas 78205 (Chris Varley) as escrow agent (“Escrow Agent”) a Special Warranty Deed and Assignment and Bill of Sale (“Bill of Sale”) in the forms attached hereto as Exhibit E-1 and Exhibit E-2
fully executed by Landlord conveying the Leased Premises to Tenant, which Special Warranty Deed and Bill of Sale are to be held in escrow by Escrow Agent in accordance with this paragraph 6(d)(3). Upon receipt or deemed receipt by Escrow
Agent of the Purchase Option Notice and the sum of $1.00, Escrow Agent shall release from escrow the Special Warranty Deed and Bill of Sale, insert in the appropriate spaces on the Special Warranty Deed and Bill of Sale the date of release from
escrow as the effective date of such documents, record the Special Warranty Deed in the Official Public Records of Real Property of Bexar County, Texas, deliver the Bill of Sale to Tenant, and disburse the $1.00 payment to Landlord, whereupon this
Lease shall terminate and neither Landlord or Tenant shall have any further obligations hereunder with respect to matters arising or attributable to the period following such termination. It is understood and agreed that such Special Warranty Deed
shall be delivered subject to all matters of record as of the date of this Lease that constitute Permitted Exceptions and all future matters of record that are created by, through or under Tenant or consented to by Tenant. 
 (4) Memorandum of Purchase Option. Landlord and Tenant shall include in the Memorandum of Ground Lease attached hereto as Exhibit C a
provision setting forth the rights of Tenant to acquire the Leased Premises as provided in this paragraph 6(d). 
 If Tenant acquires
the Leased Premises as provided hereinabove, effective as of the Purchase Closing, this Lease shall be of no further force and effect and neither party hereto shall have any further rights or obligations hereunder, except as expressly provided
herein. 
  

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 7. Indemnification, Insurance. 
 (a) Indemnification. IN ADDITION TO ANY OTHER PROVISIONS OF THIS LEASE, TENANT SHALL INDEMNIFY, HOLD HARMLESS, AND, AT LANDLORD’S OPTION,
DEFEND LANDLORD AND ITS OFFICERS, DIRECTORS, AGENTS AND EMPLOYEES (COLLECTIVELY, THE “INDEMNIFIED PARTIES”) FROM AND AGAINST ANY AND ALL LIABILITY, LIENS, CLAIMS, DEMANDS, DAMAGES, EXPENSES, FEES, COSTS, REASONABLE ATTORNEY’S FEES AND
LITIGATION COSTS, FINES, PENALTIES, SUITS, PROCEEDINGS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY KIND AND NATURE ARISING OUT OF TENANT’S USE, OCCUPANCY, CONSTRUCTION, MANAGEMENT OR CONTROL OF THE LEASED PREMISES, IMPROVEMENTS OR
TENANT’S OPERATIONS, CONDUCT OR ACTIVITIES, UNLESS AND TO THE EXTENT THE SAME IS DUE TO THE GROSS NEGLIGENCE OR INTENTIONAL ACTS OR OMISSIONS OF LANDLORD, ITS AGENTS, EMPLOYEES OR CONTRACTORS. TENANT’S OBLIGATIONS UNDER THIS SECTION 7(a)
SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THE LEASE TERM. THE FOREGOING INDEMNIFICATIONS ARE EXPRESSLY INTENDED AND SHALL OPERATE TO PROTECT AND INURE TO THE BENEFIT OF THE INDEMNIFIED PARTIES EVEN IF SOME OR ALL OF LIABILITIES ARE
ALLEGED OR PROVEN TO HAVE BEEN CAUSED BY THE NEGLIGENCE OR STRICT LIABILITY OF ANY ONE OR MORE OF THE INDEMNIFIED PARTIES. 
 (b)
Tenant’s Insurance. Tenant shall, at its expense, obtain comprehensive general liability insurance against all claims on account of bodily injury, personal injury or property damage for which Tenant may as a result of its business in the
Leased Premises become liable, with limits of not less than (1) $1,000,000.00 for bodily injury to or death of any one person, (2) $2,000,000.00 for any one occurrence for bodily injury to or death of one or more persons arising out of any
one occurrence, and (3) $1,000,000.00 per occurrence with respect to any property damage; with a $10,000,000.00 umbrella policy in addition to the foregoing policies. All polices of insurance to be maintained by Tenant hereunder may be
maintained by way of “blanket policies” insuring the Leased Premises and other premises and/or property owned or operated by Tenant or its Affiliates, and shall be subject to such self-insured retention as may be included in Tenant’s
policies. 
 (c) Worker Compensation. Tenant shall maintain workers’ compensation or similar insurance affording not less than
statutory coverage and providing not less than statutory limits or benefits for all employees of Tenant employed at the Leased Premises. 
 (d) Scope. Each policy to be provided by Tenant hereunder shall name Landlord or its designee as additional insured and shall also contain a provision whereby the insurer agrees that such policy shall not be cancelled except after
thirty (30) days’ written notice to Landlord or its designee. The insurance policies or duly executed certificates thereof, together with satisfactory evidence that the premium has paid, shall be deposited with Landlord on the date hereof;
and, thereafter, evidence of continuing insurance and premium payment shall be delivered to Landlord not less than thirty (30) days prior to the expiration of each policy required to be in force hereunder. If Tenant fails to maintain the
required insurance, Landlord may, but shall not be obligated to, obtain such insurance and be reimbursed upon demand. 
  

 9 

 (e) Waiver of Subrogation. Neither Landlord nor Tenant shall be liable by way of subrogation or
otherwise to the other party or to any insurance company insuring the other party for any loss or damage to any of the property of the Landlord or Tenant covered by insurance even though such loss or damage might have been occasioned by the
negligence of the Landlord or Tenant or their respective Permitees. This release shall be in effect only so long as the applicable insurance policies shall contain a clause or endorsement to the effect that the waiver shall not affect the right of
the insured to recover under such policies. Each party shall use its best efforts, including payment of any additional premium, to have its insurance policies contain the standard waiver of subrogation clause. In the event Landlord’s or
Tenant’s insurance carrier declines to include in such carrier’s policies a standard waiver of subrogation clause, Landlord or Tenant shall promptly notify the other party. 
 8. Destruction, Condemnation. 
 (a)
Destruction. 
 (1) Cancellation. If any portion of the Improvements situated on the Leased Premises shall be damaged or
destroyed, this Lease shall continue in full force and effect and shall not be affected thereby. 
 (2) Restoration. Tenant shall
remove the debris and cause the Leased Premises to be repaired or restored as Tenant may deem necessary or desirable, but in any event the Leased Premises shall be repaired or restored to a safe and sightly condition that is in compliance with all
applicable laws. 
 (3) Insurance Proceeds. All of Tenant’s insurance proceeds payable with respect to damage or destruction of
the improvements situated on the Leased Premises shall be retained by and be the property of Tenant. 
 (b) Condemnation. 

(1) Taking of Parking or Access. In the event of a taking by the power of eminent domain or conveyance in lieu thereof (“Taking”) of
the whole or any part of the Leased Premises, this Lease shall terminate as to the portion so taken but shall remain in full force and effect as to the balance of the Leased Premises. 
 (2) Awards. All compensation awarded for any Taking of the Leased Premises, including any interest of Landlord or Tenant therein, shall be the
property of Tenant, and Landlord hereby assigns to Tenant all of Landlord’s rights, title and interest in and to any and all such compensation. Tenant shall be entitled to claim, prove and/or receive in the condemnation proceeding all of the
award as is attributable to the Leased Premises. 
 (3) Restoration. If there is a Taking of all or part of the Leased Premises,
Tenant, at its sole expense, shall restore and rebuild the Leased Premises, in such manner as Tenant may elect, provided that the same shall be in accordance with all applicable laws. 
  

 10 

 9. Default. 
 (a) Events of Default. The following are events of default (“Events of Default”): 
 (1)
Obligations. Either party (“Defaulting Party”) fails to perform any obligation, covenant or condition or to comply with any provisions of the Lease and such failure continues for thirty (30) days after written notice from the
other party (“Non-Defaulting Party”), unless said default requires more than thirty (30) days to cure and the Defaulting Party commences a cure within thirty (30) days after written notice and thereafter maintains a diligent
effort to complete the cure. 
 (2) Bankruptcy. Either party files in any court pursuant to any statute a petition in bankruptcy or
insolvency or for reorganization or arrangement or makes an assignment for the benefit of creditors or any such petition is filed against a party and a receiver or trustee of all or any portion of that party’s property is appointed and such
proceeding is not dismissed or the trusteeship discontinued within ninety (90) days after such appointment. 
 (b) Landlord’s
Remedies. Upon the occurrence of an Event of Default by Tenant, Landlord shall have one or more of the following remedies: 
 (1) No
Termination. Because Tenant has prepaid all Rent due hereunder as of the Effective Date and has the option to purchase the Leased Premises as provided in paragraph 6(d), Landlord shall have no right to terminate this Lease due to
Tenant’s default and Landlord hereby waives any such right to which it may otherwise be entitled to terminate this Lease at law or in equity. 
 (2) Waiver of Landlord’s Lien. It is expressly understood and agreed that Landlord shall have no contractual or statutory landlord’s lien or security interest of any kind applicable to Tenant’s furniture, fixtures,
equipment, inventory, or other property located within the Leased Premises, and Landlord hereby waives and relinquishes any such contractual or statutory landlord’s lien applicable to Tenant’s property located within the Leased Premises.

 (3) Landlord’s and Tenant’s Remedies. Upon the occurrence of an Event of Default by a Defaulting Party, the
Non-Defaulting Party shall have the right to perform the applicable obligations not performed by the Defaulting Party on behalf of and at the expense of the Defaulting Party, and seek reimbursement from the Defaulting Party of all such expenses
incurred in connection therewith, together with interest thereon at the rate of twelve percent (12%) per annum from the date such expenses are incurred, and the Defaulting Party agrees to reimburse the Non-Defaulting Party for such expenses,
with interest on or before ten (10) days from written demand therefor, accompanied by reasonable supporting documentation evidencing such expenditures. Notwithstanding the foregoing, if Tenant files bankruptcy (voluntary or 

  

 11 

 
involuntary) following the expiration of the Exemption Period (as defined in the Walzem Road Redevelopment Project Master Economic Incentives Agreement among
Landlord, Tenant and others dated on or about the date hereof) and the same is not dismissed within sixty (60) days after filing, Landlord shall be entitled to “put” the Leased Premises to Tenant, at which time Tenant shall be deemed
to have delivered the Purchase Option Notice to Landlord and the Special Warranty Deed and the Bill of Sale described in paragraph 6(d)(3) shall be released from Escrow and accepted by Tenant as set forth in such paragraph, and thereafter
Tenant shall become the fee simple owner of the Leased Premises. 
 10. Tenant’s Mortgagee Requirements. 
 (a) Tenant’s Personal Property. Except as may otherwise be provided in the Personal Property Lease as described in paragraph 4(f)
above, the Tenant Improvements and all furniture, trade fixtures, inventory, stock-in-trade and related equipment (collectively, the “Personal Property”) installed by Tenant in the Leased Premises shall be and remain the property of Tenant
throughout the Term of this Lease. The Personal Property shall also be and remain the property of Tenant upon termination of this Lease, subject to the terms and provisions of the Personal Property Lease. At Tenant’s request and expense, unless
in conflict with the Personal Property Lease, Landlord shall execute such reasonable documents as Tenant and/or any mortgagee having an interest in Tenant’s Personal Property may request waiving any rights or claims of Landlord to such Personal
Property of Tenant. 
 (b) Right to Encumber. In addition to the other rights and obligations set forth in this paragraph 10,
and notwithstanding any other provision of the Lease to the contrary, Tenant shall have the right, at any time and from time to time, to encumber the leasehold estate created by this Lease and/or any of its trade fixtures, furniture or equipment to
any bank, thrift institution, insurance company, or other institutional lender or third party with notice to, but not the required consent of Landlord. Any Landlord’s statutory lien for rent or any security interest granted to Landlord in
Tenant’s furniture, fixtures or equipment is hereby waived in its entirety. With respect to any such mortgagee of Tenant’s leasehold interest and/or personal property and notwithstanding any other provisions of this Lease to the contrary,
Landlord agrees to give such mortgagee written notice of any default by Tenant and grants to such mortgagee an opportunity to cure any such default within the same time periods specified in this Lease for Tenant to cure any such default. Any such
notice shall be sent to Tenant’s mortgagee at the most recent address as to which Tenant or Tenant’s mortgagee shall have notified Landlord in writing. 
 11. General Provisions. 
 (a) Notice. “Notice” shall mean any notice, notification,
consent, approval, request, designation, submission, specification, election or other communication required or permitted under this Lease. All Notices shall be in writing and shall be deemed to have been given and received the earlier of
(1) the date the notice is delivered by one party to the other party personally or delivered to the party’s address by a party or by a delivery service which records delivery dates, or (2) three (3) days after the notice is
placed in the mail addressed to the other party at the party’s address, properly stamped, certified or registered mail, return receipt requested. A party’s address shall be as follows or as set forth in a notice to the other party:

  

 12 

			
	Landlord:	  	Ray Watson
		  	Director of Economic Development
		  	8601 Midcrown
		  	Windcrest, Texas 78239
		  	Fax: 210-655-8776
		
	With a copy to:	  	James P. Plummer
		  	Fulbright & Jaworski, LLP
		  	300 Convent, Suite 2200
		  	San Antonio, Texas 78205
		  	Fax: 210-270-7205
		
	Tenant:	  	Rackspace US, Inc.
		  	9725 Datapoint Drive, Suite 100
		  	San Antonio, Texas 78229
		  	Attention: Alan S. Schoenbaum
		  	Fax: 210-447-4031
		
	With a copy to:	  	Drenner & Golden Stuart Wolff, LLP
		  	300 Convent, Suite 2650
		  	San Antonio, Texas 78205
		  	Attention: Stephen L. Golden
		  	Fax: 210-745-3737

 (b) Entire Agreement. With the exception of the EIA, this Lease embodies the entire
agreement and understanding between the parties as to the lease of the Leased Premises by Tenant and supersedes all prior negotiations, agreements and understandings pertaining to such lease. Any provision of this Lease may be modified, waived or
discharged only by an instrument in writing signed by the party against which enforcement of such modification, waiver or discharge is sought. 
 (c) Commission. Tenant and Landlord hereby represent to each other that neither has entered into any agreement or understanding that would give rise to a real estate commission being owed in connection with this Lease, and each of
Landlord and Tenant shall indemnify and hold the other harmless against any commission, payment, interest or participation claimed on account of this Lease with any party under any alleged agreement or understanding entered into on that party’s
behalf with the person or entity claiming the commission, payment, interest or participation. 
 (d) Force Majeure. Each party shall
be excused from performing an obligation or undertaking provided for in this Lease for so long as such performance is prevented, 

  

 13 

 
delayed, retarded or hindered by an Act of God, fire, earthquake, flood, explosion, action of the elements, war, invasion, insurrection, riot, mob violence,
sabotage, strike, lockout, action of labor unions, requisitions, laws, or orders of government or civil or military authorities. 
 (e)
Surrender. Upon the expiration of the Term or earlier termination of this Lease, unless upon such termination Tenant acquires the Leased Premises pursuant to paragraph 6(d), Tenant shall surrender the Leased Premises to Landlord.
Tenant shall remove all Personal Property which are not fixtures (other than trade fixtures) installed by Tenant. All other installations or improvements, including all HVAC equipment, paneling, decorating, partitions, railings, mezzanine floors,
and galleries made by either party shall be and become upon installation the property of Landlord and shall be surrendered with the Leased Premises at the expiration or termination unless Landlord notifies Tenant to the contrary, in which event
Tenant may remove such property at its expense. Any property not promptly removed by Tenant under the provisions of this subparagraph may, at Landlord’s option, be deemed to have been abandoned by Tenant and may be retained by Landlord without
any claim by Tenant. Tenant shall in any event repair any damage to the Leased Premises caused by the removal of Tenant’s Personal Property. 
 (f) Reserved. 
 (g) Applicable Law, Construction. The laws of the State of Texas shall govern the validity,
performance and enforcement of this Lease. The invalidity or unenforceability of any provision of this Lease shall not affect or impair any other provision. If any provision of this Lease is capable of two constructions, one of which would render
the provision invalid and the other of which would make the provision valid, the provision shall have the meaning which renders it valid. The submission of this document for examination does not constitute an offer to lease, this document being
effective only upon execution and delivery by Landlord, Tenant and any guarantors. 
 (h) Time of the Essence. Time is of the essence
with respect to each provision, term and covenant of this Lease. 
 (i) Captions. The captions are for convenience and do not limit or
define the provisions of this Lease. 
 (j) Gender, Number. Whenever the sense of this Lease requires it, the use of (1) singular
number shall be deemed to include the plural, (2) the masculine gender shall be deemed to include the feminine or neuter gender, and (3) the neuter gender shall be deemed to include the masculine and feminine gender. 
 (k) Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an original, but all of which shall constitute one
instrument. 
 (l) Binding Effect. All provisions of this Lease shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. 
  

 14 

 [Signature Page Follows] 
  

 15 

 EXECUTED this 2nd day of August, 2007. 
  

			
	LANDLORD:
	
	WINDCREST ECONOMIC DEVELOPMENT CORPORATION
		
	By:	 	 /s/ F.R. Cain

	Name:	 	 F.R. Cain

	Title:	 	 City Administrator

	
	TENANT:
	
	RACKSPACE US, INC., a Delaware corporation
		
	By:	 	 /s/ Graham Weston

	Name:	 	 Graham Weston

	Title:	 	 Executive Chairman

  

			
	 EXHIBITS:
	    	 
	Exhibit A	    	- Metes and Bounds Description of Leased Premises
	Exhibit A-1	    	- Site Plan
	Exhibit B	    	- Permitted Exceptions
	Exhibit C	    	- Memorandum of Ground Lease
	Exhibit D	    	- Tenant’s As-Is Certificate and Agreement
	Exhibit E-1	    	- Special Warranty Deed
	Exhibit E-2	    	- Bill of Sale and Assignment

  

 16 

 EXHIBIT A 
 METES AND BOUNDS DESCRIPTION OF LEASED PREMISES 
 

 
  

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 5 

 EXHIBIT A-1 
 

 
  

 6 

 EXHIBIT B 
 PERMITTED EXCEPTIONS 
  

	1.	Terms, conditions and provisions of that certain Covenants, Conditions and Restrictions Agreement dated November 1, 2000, recorded in Volume 8630, page 1609, Real property
Records of Bexar County, Texas. 

  

	2.	Building set back line, 30 feet wide, along Walzem Road, as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of
survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	3.	Building setback line, 120 feet wide, measured from the North boundary line of Camelot Subdivision, Unit 7, along the south property line of Lot 37, as setback line of undetermined
width located at the southeast corner of Lot 37, as shown on plat recorded in Volume 9522, Pages 107-108 of the Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	4.	Public utility easement, of variable width, along Walzem Road, as dedicated to the City of San Antonio by instrument dated May 14, 1975, recorded in Volume 7599, Page 129 of
the Deed Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates,
Inc. 

  

	5.	Subsurface gas and electric easement, 20 feet wide, traversing and extending into Lots 37 and 38, as granted to the City of San Antonio by instrument dated July 24, 1975,
recorded in Volume 7683, Page 966 of the Deed Records, and as shown on the plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.LS.
No. 5811, Doucet & Associates, Inc. 

  

	6.	Electric and gas transmission, distribution and service line easement, 20 feet wide within Lot 38, as granted to the City of San Antonio by instrument dated May 18, 1984,
recorded in Volume 3216, Page 1141, of the Real Property Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S.
No. 5811, Doucet & Associates, Inc. 

  

	7.	 Electric and gas transmission, distribution and service line easements, of variable widths, located within Lots 37 and 38, as granted to the City of San Antonio by
instrument dated December 4, 1984, recorded in Volume 4906, Page 1394 (File No. 1976667) of the Real Property Records, and as shown on plat recorded in 

  

 1 

	 	 
Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S.
No. 5811, Doucet & Associates, Inc. 

  

	8.	Electric and gas transmission, distribution and service line easements. of variable widths, located within Lots 37 and 38, as granted to the City of San Antonio by instrument dated
December 4, 1984, recorded in Volume 6902, Page 166 and recorded in Volume 7005, Page 1663, of the Real Property Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	9.	City Public Service Board Easement, 40 feet wide, along the most eastern east property line of Lot 37, as shown on the plats recorded in Volume 7800, Pages 9-13 and Volume 9522,
Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	10.	Water line easements, 20 feet wide, traversing and extending into Lots 37 and 38, as granted to the City of San Antonio by instrument dated July 24, 1975, recorded in Volume
7653, Page 976 of the Deed Records, as amended by instrument dated April 16, 1976, recorded in Volume 7803, Page 598 of the Deed Records, as partially vacated by instrument dated June 18, 1984, recorded in Volume 3207, Page 498 of the Real
Property Records, and as shown on the plats recorded in Volume 7800, Pages 9-13 and Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	11.	Water line easement, 20 feet wide inside Lot 38, as granted to the City of San Antonio by instrument dated June 18, 1984, recorded in Volume 3153, Page 1982 of the Real
Property Records, as shown on the plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates,
Inc. 

  

	12.	Water line easement, 20 feet wide, located at the southeast corner of Lot 37, as granted to the City of San Antonio by instrument dated December 4, 1984, recorded in Volume
3351, Page 1166 of the Real Property Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	13.	Sanitary sewer easements, 16 feet wide, located within Lots 37 and 38, as granted to the City of San Antonio by instrument dated January 17, 1985, recorded in Volume 3352, Page
1925 of the Real Property Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas. 

  

 2 

	14.	Sanitary sewer easement, 10 feet wide, along the most eastern east property line of Lot 37, as shown on the plats recorded in Volume 7800, Pages 9-13 and Volume 9522, Pages 107-108,
Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	15.	Drainage easement, 25 feet wide, located west of, parallel with and adjacent to a portion of the east property line of Lot 37, as shown on plats recorded in Volume 7300, Pages
69-70, Volume 7800, Pages 9-13 and Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc.

  

	16.	Drainage easement, 60 feet wide, located at the southeast corner of Lot 37, as shown on plats recorded in Volume 7300, Pages 69-70, Volume 7800, Pages 9-13 and Volume 9522, Pages
107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	17.	Stormwater drainage easement, of variable width, located within Lots 37 and 38, as granted to the City of San Antonio by instrument dated January 17, 1985, recorded in Volume
3352, Page 1937 of the Real Property Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	18.	Underground telecommunication easements, of varying widths, located within Lots 37 and 38, as granted to Southwestern Bell Telephone Company by instrument dated June 1984, recorded
in Volume 3356, Page 1296 of the Real Property Records, and as shown on plat recorded in Volume 9522, Pages 107-108, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S.
No. 5811, Doucet & Associates, Inc. 

  

	19.	 Terms, conditions and provisions of that certain Easement and Operating Agreement dated September 10, 1974, recorded in Volume 7451, Page 649 of the Deed
Records of Bexar County, Texas, as amended by that certain Modification of Easement and Operating Agreement dated May 5, 1975, recorded in Volume 7693, Page 199 of the Deed Records of Bexar County, Texas, as amended by that certain Second
Amendment of Easement and Operating Agreement dated April 15, 1977, recorded in Volume 8069, Page 704 of the Deed Records as amended by that certain Third Amendment of Easement and Operating Agreement dated July 16, 1985, recorded in
Volume 4820, Page 1829 of the Real Property Records, and as amended by that certain Fourth Amendment of Easement and Operating 

  

 3 

	 	 
Agreement dated November 20, 1990, recorded in Volume 5004, Page 585 of the Real Property Records of Bexar County, Texas; assigned by Assignment of
Operating Agreement, dated April 15, 2002, recorded in Volume 9345, Page 1911, Real Property Records of Bexar County, Texas, said Easement and Operating Agreements having been assigned and assumed by instrument recorded in Volume 11286, Page
1402, Bexar County Real Property Records; assigned and assumed by Assignment And Assumption Of Operating Agreements, dated December 18, 2006, recorded in Volume 12639, Page 1583, Real Property Records of Bexar County, Texas; assigned and
assumed by Assignment And Assumption Of Operating Agreements, dated January 9, 2007, recorded in Volume 12639, Page 611, Real Property Records of Bexar County, Texas, assigned and assumed by Assignment And Assumption Of Operating Agreement,
dated January 9, 2007, recorded in Volume 12639, Page 1595, Real Property Records of Bexar County, Texas. As affected by Partial Mutual Release And Modification Of Easement And Operating Agreement, dated January 25, 2007, recorded in
Volume 12689. Page 1166, Real Property Records of Bexar County, Texas, as noted on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	20.	Terms, conditions and provisions of that certain Cross Easement Agreement dated July 16, 1985, recorded in Volume 4820, Page 1885, of the Real Property Records of Bexar County,
Texas; transferred by Assignment And Assumption Of Cross Easement Agreement, dated January 9, 2007, recorded in Volume 12639, Page 604, Real Property Records of Bexar County, Texas, transferred by Assignment And Assumption Of Cross Easement
Agreement, dated January 9, 2007, recorded in Volume 12639, Page 1609, Real Property Records of Bexar County, Texas, and transferred by Assignment And Assumption Of Operating Agreement, dated January 9, 2007, recorded in Volume 12639, Page
611, Real Property Records of Bexar County, Texas, as noted on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	21.	Non-access easement, 1 foot by 50 feet, along the south boundary of Lot 44, at its intersection with King Arthur Street, as shown on plat recorded in Volume 9551, Pages 187-188,
Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	22.	Drainage easement, 47 feet wide, along part of the south boundary of Lot 44, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of Bexar County, Texas,
as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	23.	Lo Vaca Gathering Co. Easement, 50 feet wide, entering the property at the south boundary of Lot 44, running north and turning west and turning northerly, recorded in Volume 7413,
Page 317 and Volume 7425, Page 387, Deed Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

 4 

	24.	Drainage easement, 25 feet wide, along the south portion of Lot 44, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of Bexar County, Texas, as shown
on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	25.	Existing drainage easement, 60 feet wide, entering Lot 44 at the west boundary and running east, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of
Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	26.	Overhang easement, 4 feet wide, adjacent to the west boundary of Lot 44, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of Bexar County, Texas, as
shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	27.	Sanitary sewer easement, 10 feet wide, across the most easterly portion of Lot 44, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of Bexar County,
Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	28.	Access easement, recorded in Volume 6935, Page 332, Deed Records of Bexar County, Texas, and modified by instruments recorded in Volume 8009, Page 221 and Volume 8273, Page 575,
Deed Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates. Inc. 

  

	29.	Easement Agreement with the City of San Antonio, recorded in Volume 4906, Page 1394, Real Property Records of Bexar County, Texas, as shown on plat of survey dated June 14,
2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	30.	Building setback lines, 120 feet from the south boundary of Lot 44, 30 feet from the west boundary along I.H. 35 of Lot 44, and 15 feet from the north boundary along Walzem Road
line of Lot 44, as shown on plat recorded in Volume 9551, Pages 187-188, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc.

  

	31.	Building setback line, 15 feet wide, increasing to 30 feet wide, along the Walzem Road property line, as shown on plat recorded in Volume 9522, Pages 105-106, Deed and Plat Records
of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

 5 

	32.	Drainage easement, 15 feet wide, and 100.72 feet in length, located at the most northwest corner of the subject property, as shown on plat recorded in Volume 9522, Pages 105-106,
Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	33.	Pipeline right-of-way, 50 feet wide, traversing the western portion of the subject property, granted to Magnolia Gas Company, by instruments recorded in Volume 1107, Page 478 and
Volume 1107, Page 485, Deed Records of Bexar County, Texas, additionally supplemented by instruments recorded in Volume 3405, Page 297 and Volume 3589, Page 371, Deed Records of Bexar County, Texas, as conveyed to Lo-Vaca Gathering Company by
instrument recorded in Volume 5905, Page 447, Deed Records of Bexar County, Texas, as further defined by instrument executed in multiple counterparts as recorded in Volume 7413, Page 317 and Volume 7425, Page 387, Deed Records of Bexar County,
Texas, and as shown on plat recorded in Volume 9522, Pages 105-106, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc.

  

	34.	Public utility easement, of variable width, along Walzem Road property line, as dedicated to the City of San Antonio, by instrument dated May 12, 1975, recorded in Volume 7599,
Page 111, Deed Records of Bexar County, Texas, and as shown on plat recorded in Volume 9522, Pages 105-106, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated June 14,2007, by Jason Ward R.P.L.S. No. 5811,
Doucet & Associates, Inc. 

  

	35.	Building setback line, 25 feet wide, along the front property line, as shown on plat recorded in Volume 7800, Pages 9-13, Deed and Plat Records of Bexar County, Texas, as shown on
plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S, No. 5811, Doucet & Associates, Inc. 

  

	36.	Overhang easement, 4 feet wide, along the front property line, as shown on plat recorded in Volume 7800, Pages 9-13, Deed and Plat Records of Bexar County, Texas, as shown on plat
of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	37.	Gas and electric easement, 20 feet wide, as shown on plat recorded in Volume 7800, Pages 9-13, Deed and Plat Records of Bexar County, Texas, as shown on plat of survey dated
June 14, 2007, by Jason Ward, R.P.L.S, No. 5811, Doucet & Associates, Inc. 

  

	38.	Lo Vaca Gathering Co. gas easement, 50 feet wide, as shown on plat recorded in Volume 7800, Pages 9-13, Deed and Plat Records of Bexar County, Texas, and recorded in Volume 7425,
Page 387, Deed Records of Bexar County, Texas, as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

 6 

	39.	Easement and operating agreement recorded in Volume 7451, Page 649 and modified in Volume 7693, Page 199, Deed Records of Bexar County, Texas, as noted on plat of survey dated
June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet &. Associates, Inc. 

  

	40.	Affidavit of Compliance recorded in Volume 11008, Page 851, Real Property Records of Bexar County, Texas, as noted on plat of survey dated June 14, 2007, by Jason Ward,
R.P.L.S. No. 5811, Doucet & Associates, Inc. 

  

	41.	The following matters as shown on plat of survey dated June 14, 2007, by Jason Ward, R.P.L.S. No. 5811, Doucet & Associates, Inc.: a) 12 (twelve) telephone risers
along the south property line, b) encroachment of improvements across the most southerly, northeast property line, and c) “Order Sign” adjacent to the most southerly northeast property line. 

  

	42.	Terms, conditions and provisions of that certain Declaration of Restrictive Covenants dated of even date herewith, recorded the Real Property Records of Bexar County, Texas as of
the date hereof. 

  

 7 

 EXHIBIT C 
 MEMORANDUM OF GROUND LEASE AGREEMENT 
 This Memorandum of Ground Lease Agreement made the
     day of             , 2007, by and between WINDCREST ECONOMIC DEVELOPMENT CORPORATION (hereinafter called “Landlord”) and RACKSPACE US, INC.,
a Delaware corporation (hereinafter called “Tenant”). 
 W I T N E S S E T H: 
 That for and in consideration of the sum of One and No/100 Dollar ($1.00), the receipt of which is hereby mutually acknowledged, and in consideration of
the executed original Ground Lease Agreement which is in the possession of each of the parties hereto, Landlord hereby leases to Tenant and Tenant hereby leases from Landlord that certain real property situated in the City of San Antonio, Bexar
County, Texas, and legally described by metes and bounds on Exhibit “A” attached hereto (the “Leased Premises”), together with any and all improvements, fixtures, personal property and equipment now or hereafter situated
thereon, and any and all appurtenances, easements and privileges pertaining thereto; 
 The Leased Premises hereby leased to Tenant for a Term commencing as of the Effective Date and terminating on the last day of the three hundred sixtieth (360th) month following the Effective Date, as such capitalized terms are defined in the Ground Lease Agreement. 
 The Lease contains a purchase option, which provides in part as follows: 
 “6(d) Tenant’s Purchase
Option. 
 (1) Purchase Option. For and in consideration of the sum of Fifty and No/100 Dollars ($50.00) and other
good and valuable consideration paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged, the same constituting independent consideration for this Purchase Option, commencing upon the Effective Date and continuing
throughout the Term (as the same may be extended), Tenant shall have the continuing, exclusive right to purchase the Leased Premises from Landlord (the “Purchase Option”) pursuant to the terms, conditions, and provisions set forth
hereinbelow. If Tenant elects to exercise the Purchase Option, Tenant shall deliver to Landlord and the Escrow Agent (as defined in paragraph 6(d)(3) below) written notice (the “Purchase Option Notice”) of such election on or before
thirty (30) days prior to the expiration of the Term. Notwithstanding the foregoing, if Tenant has failed to deliver the Purchase Option Notice within such thirty (30) day period, the Purchase Option shall continue for a period of fifteen
(15) days following Tenant’s receipt of written notice from Landlord (“Option Termination Notice”) stating that “TENANT HAS FAILED TO DELIVER THE PURCHASE OPTION NOTICE WITHIN THE TIME PERIOD SPECIFIED IN 

  

 1 

 
PARAGRAPH 6(D) OF THE LEASE”, and unless Tenant provides written notice to Landlord within such 15-day period following Tenant’s receipt of
the Option Termination Notice that Tenant elects not to exercise the Purchase Option, then Tenant shall be deemed to have delivered the Purchase Option Notice to Landlord and Escrow Agent within the time period required hereby and the parties shall
proceed with the Purchase Closing as provided in (2) below.” 
 Reference is hereby made to the Ground Lease Agreement for complete
statement of the rights and obligations of the Landlord and Tenant, respectively. 
 [Signature Page to Follow] 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum of Ground Lease Agreement as of the
date and year first written above. 
  

									
	TENANT:	 		 	LANDLORD:
			
	RACKSPACE US, INC. a Delaware corporation	 		 	 WINDCREST ECONOMIC
 DEVELOPMENT
CORPORATION

					
	By:	  	  
	 		 	By:	 	  

					
	Name:	  	  
	 		 	Name:	 	  

					
	Title:	  	  
	 		 	Title:	 	  

  

					
	STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF BEXAR	  	§	  	

 This instrument was acknowledged before me on the      day of
            , 2007, by                     , the
                     of Rackspace US, Inc., a Delaware corporation, on behalf of said corporation. 
  

	
	  

	Notary Public/State of Texas

  

					
	STATE OF TEXAS	  	§	  	
		  	§	  	
	 COUNTY OF             
	  	§	  	

 This instrument was acknowledged before me on the      day of
             2007, by                     , the
                     of Windcrest Economic Development Corporation, a Section 4B corporation created pursuant to the Texas Development
Corporation Act of 1979, as amended, on behalf of said Section 4B corporation. 
  

	
	  

	Notary Public/State of Texas

 AFTER RECORDING, PLEASE RETURN TO: 
 Stephen L. Golden 
 Drenner & Golden Stuart Wolff, LLP 
 300 Convent Street, Suite 2600 
 San Antonio, Texas 78205 
  

 3 

 EXHIBIT “A” to Memorandum of Ground Lease 
 [Legal Description] 
  

 4 

 EXHIBIT D 
 TENANT’S AS-IS CERTIFICATE AND AGREEMENT 
 THIS TENANT’S AS-IS CERTIFICATE AND
AGREEMENT (this “Agreement”), is made as of                  , 2007 by WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B
corporation created pursuant to the Texas Development Corporation Act of 1979, as amended (“Landlord”) and RACKSPACE, LTD., a Texas limited partnership (“Tenant”). 
 RECITALS 
 WHEREAS, pursuant to the
terms of that certain Ground Lease Agreement, dated as of                  , 2007, by and between Landlord and Tenant (as the same may have been amended or
modified, the “Lease Agreement”), Landlord agreed to lease to Tenant, inter alia, that certain real Leased Premises legally described on Exhibit A attached thereto and incorporated herein by this reference, the
improvements located thereon and certain rights appurtenant thereto, all as more particularly described in the Lease Agreement. Initially capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the
Lease Agreement; and 
 WHEREAS, the Lease Agreement requires, inter alia, that, as a condition precedent to Landlord’s
obligations under the Lease Agreement, Tenant shall execute and deliver this Agreement to Landlord at Closing. 
 NOW, THEREFORE, in
consideration of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Tenant hereby certifies and agrees as follows: 
 1. For purposes of this Agreement, the following terms shall have the following meanings: 
 “Assumed Liabilities” shall mean any and all Liabilities attributable to the physical condition of the Leased Premises, whether arising
or accruing before, on or after the date hereof and whether attributable to events or circumstances which have heretofore or may hereafter occur, including, without limitation, (a) all Liabilities with respect to the structural, physical, or
environmental condition of the Leased Premises; (b) all Liabilities relating to the release of or the presence, discovery or removal of any Hazardous Materials in, at, about or under the Leased Premises, or for, connected with or arising out of
any and all claims or causes of action based upon CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§9601 et seq., as amended by SARA (Superfund Amendment and Reauthorization Act of
1986) and as may be further amended from time to time), the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et seq., or any related claims or causes of action or any other Federal, State or municipal based statutory
or regulatory causes of 

  

 1 

 
action for environmental contamination at, in, about or under the Leased Premises; and (c) any tort claims made or brought with respect to the Leased
Premises or the use or operation thereof. Notwithstanding the foregoing, however, “Assumed Liabilities” shall not include any Liabilities arising out of or in connection with: 
  

	 	(i)	any claims made or causes of action brought by any governmental authority as a result of any violations of any applicable laws that were caused during the time that Landlord owned
title to the Leased Premises unless Tenant knows or is deemed to know about such claim or cause of action on or before the date hereof; and/or 

  

	 	(ii)	any and all Liabilities relating to the release of or the presence, discovery or removal of any Hazardous Materials introduced or installed by Landlord during its period of
ownership of the Leased Premises (but prior to the Effective Date of the Lease Agreement) to in, at, about or under the Leased Premises, or for, connected with or arising out of any and all
claims or causes of action based upon CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§9601 et seq., as amended by SARA (Superfund Amendment and Reauthorization Act of 1986) and as
may be further amended from time to time), the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et seq., or any related claims or causes of action or any other Federal, State or municipal based statutory or
regulatory causes of action for environmental contamination (collectively “Environmental Laws”) at, in, about or under the Leased Premises to the extent that any of the foregoing causes of actions or claims arise from or relate to any
environmental contamination or violation of Environmental Laws caused by Landlord during its period of ownership of the Leased Premises. 

 The items listed in clauses (i)-(ii) are referred to collectively as the “Excluded Liabilities”. 
 “Tenant’s Representatives” shall mean Tenant and any officers, directors and senior employees of Tenant involved with the negotiation of the Lease Agreement. 
 “deemed to know” (or words of similar import) shall have the following meaning: 
  

	 	(a)	Tenant shall be “deemed to know” of the existence of a fact or circumstance to the extent that: 

  

	 	(i)	any Tenant’s Representative has actual knowledge of such fact or circumstance, or 

  

 2 

	 	 (ii)
	 such fact or circumstance is disclosed by the Lease Agreement, or any other Document1 delivered to any Tenant’s Representative. 

  

	 	(b)	Tenant shall be “deemed to know” that any of Landlord’s warranties or representations is untrue, inaccurate or incorrect to the extent that: 

 

	 	(i)	any Tenant’s Representative has actual knowledge of information which is inconsistent with any of Landlord’s Warranties, or 

  

	 	(ii)	the Lease Agreement or any Document contains information which is inconsistent with any of Landlord’s warranties or representations. 

 “Documents” shall mean the documents and instruments applicable to the Leased Premises or any portion thereof that any of the Landlord
Parties deliver or make available to any Tenant’s Representative prior to the date hereof or which are otherwise obtained by any Tenant’s Representative prior to the date hereof, including, but not limited to, the Title Commitment, the
Survey, the Title Documents, and the Leased Premises Documents. 
 “Due Diligence” shall mean examinations, inspections,
investigations, tests, studies, analyses, appraisals, evaluations and/or investigations with respect to the Leased Premises, the Documents, and other information and documents regarding the Leased Premises, including, without limitation, examination
and review of title matters, applicable land use and zoning Laws and other Laws applicable to the Leased Premises, the physical condition of the Leased Premises, and the economic status of the Leased Premises. 
 “Hazardous Materials” shall mean any substance, chemical, waste or material that is or becomes regulated by any Federal, State or local
governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness or reactivity, including, without limitation, asbestos or any substance containing more than 0.1 percent asbestos, the group of
compounds known as polychlorinated biphenyls, flammable explosives, oil, petroleum or any refined petroleum product. 
 “Liabilities” shall mean, collectively, any and all losses, costs, damages, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever. 
 “Leased Premises Documents” shall mean, collectively, any documents or instruments which constitute, evidence or create or relate to any
portion of the Leased Premises. 
 “Landlord Parties” shall mean and include, collectively, (a) Landlord; (b) its
counsel; and (c) any third-party consultants engaged by Landlord to evaluate the feasibility of the Ground Lease. 
  

	1	Tenant is deemed to have knowledge if any fact or circumstance is disclosed by any Documents (a broadly defined term) delivered or made available t Buyer, whether or not Buyer has
actual conscious awareness of a particular fact. 

  

 3 

 2. Tenant acknowledges and agrees that, prior to the date hereof: (a) Landlord has made available to
Tenant, or otherwise allowed Tenant access to, the Leased Premises and certain books, records and files of Landlord related to the Leased Premises; (b) Tenant has conducted (or has waived its right to conduct) all due diligence as Tenant
considered necessary or appropriate (including due diligence with respect to Hazardous Materials or the environmental condition of the Leased Premises); (c) Tenant has reviewed, examined, evaluated and verified the results of its due diligence
to the extent it deems necessary or appropriate with the assistance of such experts as Tenant deemed appropriate; and (d) except for, and only to the extent of, Landlord’s warranties and representations contained in the Lease Agreement, is
acquiring the Leased Premises based exclusively upon its own due diligence. 
 3. Tenant acknowledges and agrees that, except for, and only
to the extent of, Landlord’s warranties and representations under the Lease Agreement: 
  

	 	(a)	The Leased Premises is being demised, and Tenant is accepting possession of the Leased Premises on the date hereof, “AS IS, WHERE IS, WITH ALL FAULTS”, with no right of
setoff or reduction in any payment of Rent or Additional Rent which may become due under the Lease Agreement. 

  

	 	(b)	None of the Landlord Parties have or shall be deemed to have made any verbal or written representations, warranties, promises or guarantees (whether express, implied, statutory or
otherwise) to Tenant with respect to the physical condition of the Leased Premises, any matter set forth, contained or addressed in the Documents (including, but not limited to, the accuracy and completeness thereof) or the results of Tenant’s
due diligence. 

  

	 	(c)	Tenant has confirmed independently all information that it considers material to its acceptance of the Leased Premises. 

  

	 	(d)	Except for, and only to the extent of, Landlord’s warranties and representations under the Lease Agreement, Tenant is not relying on (and Landlord and each of the other
Landlord Parties does hereby disclaim and renounce) any representations or warranties of any kind or nature whatsoever, whether oral or written, express, implied, statutory or otherwise, from any of the Landlord Parties, as to:

  

	 	(i)	the operation or performance of the Leased Premises, the income potential, economic status, uses, or the merchantability, habitability or fitness of any portion of the Leased
Premises for a particular purpose; 

  

	 	(ii)	the physical condition of the Leased Premises or the condition or safety of the Leased Premises or any component thereof, including, but not limited to, plumbing, sewer, heating,
ventilating and electrical systems, roofing, air conditioning, foundations, soils and geology, including Hazardous Materials, lot size, or suitability of the Leased Premises or any component thereof for a particular purpose;

  

 4 

	 	(iii)	the presence or absence, location or scope of any Hazardous Materials in, at, about or under the Leased Premises; 

  

	 	(iv)	whether the plumbing or utilities are in working order; 

  

	 	(v)	the habitability or suitability for occupancy of any structure and the quality of its construction; 

  

	 	(vi)	whether the improvements are structurally sound, in good condition, or in compliance with applicable Laws; 

  

	 	(vii)	the dimensions of the Leased Premises or the accuracy of square footage, sketches, or revenue or expense projections related to the Leased Premises; 

  

	 	(viii)	the locale of the Leased Premises, the leasing market for the Leased Premises, or the market assumptions Tenant utilized in its analysis of the Leased Premises and determination of
the Rent amount; and 

  

	 	(ix)	whether the Leased Premises is or would likely constitute a target of terrorist activity or other acts of war. 

  

	 	(e)	Except as otherwise set forth in the Lease Agreement, Landlord is under no duty to make any affirmative disclosures or inquiry regarding any matter which may or may not be known to
any of Landlord Parties regarding the physical condition of the Leased Premises, and Tenant, for itself and for its successors and assigns, hereby specifically waives and releases each of the Landlord Parties from any such duty that otherwise might
exist. 

 4. Except as may be provided in the Lease Agreement, any repairs or work required by Tenant are the sole
responsibility of Tenant, and Tenant agrees that there is no obligation on the part of Landlord to make any changes, alterations or repairs to the Leased Premises, including, without limitation, to cure any violations of Law, comply with the
requirements of any insurer or otherwise. Except as may be provided in the Lease Agreement, Tenant is solely responsible for obtaining any certificate of occupancy or any other approval or permit necessary for the transfer or occupancy of the Leased
Premises; provided, however, Landlord is responsible for any repairs or alterations necessary to obtain the same, at Landlord’s sole cost and expense. 
 5. Tenant (i) having inspected the Leased Premises as described above, (ii) having conducted, reviewed, examined, evaluated and verified the results of all due diligence to the extent Tenant deems
appropriate as described above, and (iii) having determined that Tenant shall accept the Leased Premises based exclusively upon its own due diligence (except for, and only to the extent of, Landlord’s warranties and representations under
the Lease Agreement, then, accordingly, Tenant agrees with Landlord that Tenant is in fact accepting the Leased Premises 

  

 5 

 
based exclusively upon its own due diligence, except for, and only to the extent of, Landlord’s warranties and representations under the Lease
Agreement, and to evidence the foregoing, Tenant agrees to release Landlord as set forth below. Accordingly, except as expressly provided hereinbelow in this Section 5, Tenant, for Tenant and Tenant’s successors and assigns, hereby
releases each of the Landlord Parties from, and waives any and all Assumed Liabilities against each of the Landlord Parties for or attributable to or in connection with the Leased Premises, whether arising or accruing before, on or after the date
hereof and whether attributable to events or circumstances which have heretofore or may hereafter occur. 
 Notwithstanding the foregoing, the release and
waiver set forth in this Section 5 is not intended and shall not be construed as (x) affecting or impairing any rights or remedies that Tenant may have against Landlord as a result of a breach of any of Landlord’s warranties
and representations under the Lease Agreement, or (y) shifting to Tenant any obligation, responsibility or liability for any Liability that does not constitute an Assumed Liability. Landlord hereby confirms it takes responsibility and liability
for the Excluded Liabilities. 
 6. Tenant hereby assumes and takes responsibility and liability for all Assumed Liabilities. Notwithstanding
the foregoing, nothing in this Section 6 shall be construed to affect or limit Tenant’s rights or remedies against Landlord as a result of Landlord’s breach of Landlord’s warranties and representations under the Lease
Agreement. 
 7. Tenant expressly understands and acknowledges that it is possible that unknown Assumed Liabilities may exist with respect to
the Leased Premises and that Tenant explicitly took that possibility into account in determining and agreeing to accept the Leased Premises, and that a portion of such consideration, having been bargained for between parties with the knowledge of
the possibility of such unknown Assumed Liabilities has been given in exchange for a full accord and satisfaction and discharge of all such Assumed Liabilities, except for Assumed Liabilities arising as a result of Landlord’s breach of
Landlord’s warranties and representations under the Lease Agreement. 
 8. Tenant acknowledges and agrees that the provisions of this
Agreement were a material factor in Landlord’s agreement to lease the Leased Premises to Tenant and, while Landlord has provided the Documents and cooperated with Tenant, Landlord is unwilling to lease the Leased Premises unless the Landlord
Parties are expressly released as set forth in Section 5 and Tenant assumes the obligations specified in Section 6. 
 9. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 10. If any term or provision of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement or the application of such
term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted
by law. 
  

 6 

 IN WITNESS WHEREOF, Tenant has executed this Agreement as of the date first set forth hereinabove.

  

			
	LANDLORD:
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	TENANT:
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 7 

 EXHIBIT E-1 
 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL
SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. 
 SPECIAL WARRANTY DEED 
  

					
	THE STATE OF TEXAS	  	§	    	
		  	§	    	KNOW ALL MEN BY THESE PRESENTS:
	COUNTY OF BEXAR	  	§	    	

 THAT THE UNDERSIGNED, Windcrest Economic Development Corporation (“Grantor”), a
Section 4B corporation created pursuant to the Texas Economic Development Corporation Act of 1979, as amended, for and in consideration of the sum of TEN DOLLARS ($10.00) cash, and other good and valuable consideration paid to Grantor by
Rackspace US, Inc. (“Grantee”), a Delaware corporation, the receipt and sufficiency of which are hereby fully acknowledged and confessed, has GRANTED, BARGAINED, SOLD and CONVEYED, and by these presents does hereby GRANT, BARGAIN, SELL and
CONVEY unto Grantee, whose address is 9725 Datapoint Drive, Suite 100, San Antonio, Texas 78229, Attn: General Counsel, all of Grantor’s rights, titles, benefits, easements, privileges and interests in and to that certain real property in Bexar
County, Texas being more particularly described in Exhibit “A” attached hereto and made part hereof for all purposes (the “Land”), together with all and singular the rights and appurtenances pertaining thereto,
including without limitation the improvements constructed thereon, strips or gores, adjacent streets, roads, alleys, rights-of-way, easements, licenses, reservations, privileges, rights of ingress and egress and fixtures (collectively, the
“Property”). 
 This conveyance is made and accepted subject to those certain matters set forth on Exhibit
“B” attached hereto and made a part hereof for all purposes (the “Permitted Exceptions”). 
 Except for the
special warranty of title contained herein, Grantor hereby specifically disclaims any warranty, guaranty, or representation, oral or written; past, present or future, of, as to, or concerning (i) the nature and condition of the Property,
including but not by way of limitation, the water, soil, geology and the suitability thereof, and of the Property, for any and all activities and uses which Grantee may elect to conduct thereon, income to be derived therefrom or expenses to be
incurred with respect thereto, or any obligations or any other matter or thing relating to or affecting the same; (ii) the manner of construction and condition and state of repair or lack of repair of any improvements located thereon;
(iii) the nature and extent of any easement, right-of-way, lease, possession, lien, encumbrance, license, reservation, condition or otherwise; and (iv) the compliance of the Property or the operation of the Property with any laws, rules,
ordinances, or regulations of any government or other body. IN CONNECTION WITH THE CONVEYANCE OF THE PROPERTY, GRANTOR HAS NOT MADE AND DOES NOT MAKE, ANY REPRESENTATIONS, WARRANTIES OR COVENANTS OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS
OR IMPLIED, WITH RESPECT TO THE QUALITY OR CONDITION OF THE PROPERTY, THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH GRANTEE MAY CONDUCT THEREON, COMPLIANCE BY THE PROPERTY WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS
OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR HABITABILITY, 

  

 1 

 
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SPECIFICALLY, GRANTOR DOES NOT MAKE ANY REPRESENTATIONS REGARDING HAZARDOUS WASTE, AS DEFINED BY THE
LAWS OF THE STATE OF TEXAS AND ANY REGULATIONS ADOPTED PURSUANT THERETO OR THE U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR THE DISPOSAL OF ANY HAZARDOUS WASTE OR ANY OTHER HAZARDOUS OR TOXIC SUBSTANCES IN OR ON THE
PROPERTY. Grantee hereby accepts the Property with the Property being in its present AS IS condition WITH ALL FAULTS. 
 GRANTEE ACKNOWLEDGES
AND AGREES THAT GRANTEE HAS LEASED THE PROPERTY FROM GRANTOR, IS FAMILIAR WITH THE PROPERTY, AND IS EXPERIENCED IN THE OWNERSHIP, DEVELOPMENT AND/OR OPERATION OF PROPERTIES SIMILAR TO THE PROPERTY AND THAT GRANTEE HAS INSPECTED THE PROPERTY TO ITS
SATISFACTION AND IS QUALIFIED TO MAKE SUCH INSPECTION. GRANTEE ACKNOWLEDGES THAT IT IS FULLY RELYING ON GRANTEE’S (OR GRANTEE’S REPRESENTATIVES’) INSPECTIONS OF THE PROPERTY AND NOT UPON ANY STATEMENT (ORAL OR WRITTEN) WHICH MAY HAVE
BEEN MADE OR MAY BE MADE (OR PURPORTEDLY MADE) BY GRANTOR OR ANY OF ITS REPRESENTATIVES. GRANTEE ACKNOWLEDGES THAT GRANTEE HAS (OR GRANTEE’S REPRESENTATIVES HAVE) THOROUGHLY INSPECTED AND EXAMINED THE PROPERTY TO THE EXTENT DEEMED NECESSARY BY
GRANTEE IN ORDER TO ENABLE GRANTEE TO EVALUATE THE CONDITION OF THE PROPERTY AND ALL OTHER ASPECTS OF THE PROPERTY (INCLUDING, BUT NOT LIMITED TO, THE ENVIRONMENTAL CONDITION OF THE PROPERTY); AND GRANTEE ACKNOWLEDGES THAT GRANTEE IS RELYING SOLELY
UPON ITS OWN (OR THEIR REPRESENTATIVES’) INSPECTION, EXAMINATION AND EVALUATION OF THE PROPERTY. GRANTEE HEREBY EXPRESSLY ASSUMES ALL RISKS, LIABILITIES, CLAIMS, DAMAGES AND COSTS (AND AGREES THAT GRANTOR SHALL NOT BE LIABLE FOR ANY SPECIAL,
DIRECT, INDIRECT, CONSEQUENTIAL, OR OTHER DAMAGES) RESULTING OR ARISING FROM OR RELATED TO THE OWNERSHIP, USE, CONDITION, LOCATION, MAINTENANCE, REPAIR OR OPERATION OF THE PROPERTY ATTRIBUTABLE TO THE PERIOD FROM AND AFTER THE DATE HEREOF.

 TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto the said
Grantee, its successors and assigns, forever; and Grantor does hereby bind Grantor and Grantor’s successors and assigns to WARRANT AND FOREVER DEFEND all and singular the Land unto Grantee, and Grantee’s successors and assigns, against
every person whomsoever claiming or to claim the same or any part thereof, by, through or under Grantor, but not otherwise, subject only to the Permitted Exceptions. 
 [SIGNATURE AND NOTARY PAGE TO FOLLOW] 
  

 2 

 EXECUTED this      day of
            , 2007, to be effective the      day of             ,
20    . 
  

			
	GRANTOR:
	
	WINDCREST ECONOMIC DEVELOPMENT CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

					
	THE STATE OF TEXAS	  	§	  	
		  	§	  	
	 COUNTY OF             
	  	§	  	

 The foregoing instrument was acknowledged before me this      day of
            , 200    , by                     ,
             of
                                        ,
the                      of
                                        ,
on behalf of said                         . 
  

	
	  

	Notary Public/State of Texas

  

 3 

 EXHIBIT “A” to Special Warranty Deed 
 LEGAL DESCRIPTION 
 [To Be Attached.]

  

 4 

 EXHIBIT “B” to Special Warranty Deed 
 PERMITTED EXCEPTIONS 
 [To Be Attached]

  

 5 

 EXHIBIT E-2 
 ASSIGNMENT AND BILL OF SALE 
  

					
	THE STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF BEXAR	  	§	  	

 WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B corporation created pursuant to
the Texas Economic Development Corporation Act of 1979, as amended (“Seller”), for valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Seller and Buyer, does hereby sell, assign and transfer to
Rackspace US, Inc., a Delaware corporation (“Buyer”), all of Seller’s right, title and interest in and to the following described property, rights and interests (the “Personal Property”) located on, affixed to or used
in connection with the real property described on Exhibit “A” attached to this Bill of Sale (the “Real Property”): 
 (i) all tangible personal property, mechanical systems, fixtures, equipment and machinery of any kind owned by Seller and located on or attached to, or used in connection with the Real Property or improvements situated thereon;
(ii) all access, air, water, riparian, development, utility, and solar rights appurtenant to the Real Property; (iii) site plans, surveys, plans and specifications, marketing materials and floor plans in Seller’s possession which
relate to the Real Property; (iv) all licenses and permits issued in connection with the construction and operation of the Real Property; and (v) rights to receive or install water, wastewater, electricity, gas, telephone,
telecommunications (including cable television, internet ISDN lines, etc.), drainage, or other utilities or services. 
 TO HAVE AND TO HOLD
the Personal Property unto said Buyer, its successors and assigns forever. 
 IT IS UNDERSTOOD AND AGREED THAT THIS SALE IS MADE “AS IS,
WHERE IS” AND WITH ALL FAULTS. All warranties, express or implied, are hereby disclaimed. 
 This Assignment is made and accepted
expressly subject to all matters to which the Special Warranty Deed of the Real Property from Buyer to Seller dated the same date as this Bill of Sale and Assignment is made subject. 
 This Bill of Sale may be executed in one or more counterparts, each of which shall have the force and effect of an original, and all of which shall
constitute but one and the same document. 
 [Signature page follows] 
  

 1 

 Executed this      day of
            , 2007 to be effective the      day of             ,
20    . 
  

			
	SELLER:
	
	WINDCREST ECONOMIC DEVELOPMENT CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 2 

 FIRST AMENDMENT TO GROUND LEASE AGREEMENT 
 THIS FIRST AMENDMENT TO GROUND LEASE AGREEMENT (the “First Amendment”) is made and entered into on this
     day of April 2008, to be effective as of August 31, 2007, by and between WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B corporation created pursuant to the Texas Development Corporation Act
of 1979, as amended (the “Landlord”), and RACKSPACE US, INC., a Delaware corporation (the “Tenant”). 
 WITNESSETH: 
 WHEREAS, Landlord and Tenant executed and entered into a certain Ground Lease
Agreement (the “Original Lease Agreement”) dated August 2, 2007, covering approximately 66.9915 acres of land and the improvements thereon located in the City of San Antonio, Bexar County, Texas (the “Leased
Premises”); 
 WHEREAS, Landlord and Tenant have agreed to enter into an Assignment and Assumption of Construction
Contract (the “Assignment”) dated as of even date herewith pursuant to which Tenant will assign its interest in that certain Construction and Design Agreement (“Construction Contract”) dated
August 31, 2007 by and between Tenant and Workstage LLC (“Contractor”) to Landlord; and 
 WHEREAS, in
connection with the Assignment, Tenant has agreed to pay amounts due and owing under the Construction Contract as additional Rent under the Lease and Tenant has agreed to execute a construction guaranty in favor of Contractor (the “Construction
Guaranty”) guarantying obligations under the Construction Contract as more particularly set forth therein. 
 NOW, THEREFORE, for
and in consideration of these premises, the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Landlord and Tenant agree as follows:

 1. Lease. The Original Lease Agreement and this First Amendment are collectively referred to as the “Lease.”
All terms used herein with initial capitalized letters shall have the defined meanings as in the Lease, unless otherwise defined in this First Amendment. In the event of any conflict in any prior provisions of the Lease with this First Amendment,
this First Amendment shall control. 
 2. Rent. Section 3(a) of the Lease is hereby amended and restated to read as follows:

 “(a) Rent. Upon the Effective Date, Tenant shall pay to Landlord as a portion of the rent for the Leased Premises the sum of
Thirty-Two Million Six Hundred Seventy-Three Thousand One Hundred Thirty-Seven and 55/100 Dollars ($32,673,137.55) (“Prepaid Rent”). From and after the full and final execution of the Assignment by Landlord and Tenant, Tenant
shall further pay to Landlord as additional rent amounts (including expenses, if any) due and payable by the owner under that certain Construction and Design Agreement dated August 31, 2007 (“Construction Contract”) by
and between Tenant and Workstage LLC, as the same has been assigned by Tenant to Landlord, as such amounts become due 

  

 51 

 
and payable under the Construction Contract in good and immediately payable funds (“Additional Rent”, and together with the Prepaid
Rent being referred hereunder to as “Rent”). Amounts paid by Tenant to the Contractor pursuant to a construction guaranty executed by Tenant in favor of Contractor shall constitute payments of Additional Rent hereunder. It is
expressly understood that no other Rent shall be payable by Tenant to Landlord at any time with respect to the Primary Term. 
 3.
Assignment of Construction Contract. Section 4(b)(3) of the Lease is hereby amended and restated to read as follows: 
 “At
Tenant’s election, Landlord shall assume the obligations under the Construction Contract for the construction of Tenant Improvements. In such event, Landlord and Tenant shall enter into the Assignment, pursuant to which Tenant shall agree to
pay the Additional Rent hereunder with no additional costs to be charged to Landlord and no additional fees being payable by Tenant to Landlord for its assumption of the Construction Contract, and Tenant shall agree to indemnify and hold harmless
Landlord from and against any liability, damages and third-party costs it may incur as a result of the assumption of the Construction Contract (except such liability, damages or third-party costs resulting from Landlord’s non-compliance with
the terms of the Assignment).” 
 4. Default. Section 9(b)(1) of the Lease is hereby amended and restated to read as
follows: 
 “(1) No Termination. Because Tenant has prepaid all Prepaid Rent due hereunder as of the Effective Date and has the
option to purchase the Leased Premises as provided in paragraph 6(d), Landlord shall have no right to terminate this Lease due to Tenant’s default and Landlord hereby waives any such right to which it may otherwise be entitled to terminate this
Lease at law or in equity.” 
 5. Tenant’s Personal Property. Section 10(a) of the Lease is hereby amended and restated
to read as follows: 
 “(a) Tenant’s Personal Property. Except as may otherwise be provided in the Personal Property Lease as
described in paragraph 4(f) above, all furniture, trade fixtures, inventory, stock-in-trade and related equipment (collectively, the “Personal Property”) installed by Tenant in the Leased Premises shall be and remain the property of Tenant
throughout the Term of this Lease. The Personal Property shall also be and remain the property of Tenant upon termination of this Lease, subject to the terms and provisions of the Personal Property Lease. At Tenant’s request and expense, unless
in conflict with the Personal Property Lease, Landlord shall execute such reasonable documents as Tenant and/or any mortgagee having an interest in Tenant’s Personal Property may request waiving any rights or claims of Landlord to such Personal
Property of Tenant.” 
 6. Other Terms. Except as expressly modified and amended hereby, all terms and conditions of the Lease
will remain in full force and effect as of the date thereof. Landlord and Tenant hereby ratify and affirm the Lease as modified and amended hereby, and each represents and warrants to the other that there are no offsets, counterclaims or impairments
to the obligations of either party under the Lease as amended hereby, to their respective knowledge. 
  

 52 

 7. Binding Effect. This First Amendment shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. 
 SIGNATURE PAGE ATTACHED 
  

 53 

 SIGNATURE PAGE 
 TO 
 FIRST AMENDMENT TO GROUND LEASE AGREEMENT 
  

			
	LANDLORD:
	
	WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B corporation created pursuant to the Texas Development Corporation Act of 1979, as amended 
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	TENANT:
	
	RACKSPACE US, INC., a Delaware corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 54Walzem Road Redevelopment Project Master Economic Incentives Agreement

 Exhibit 10.15 
 WALZEM ROAD REDEVELOPMENT 
 PROJECT 
 MASTER ECONOMIC INCENTIVES 
 AGREEMENT 
 August 2, 2007 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	PAGE
	ARTICLE 1	 	DEFINITIONS	  	3
			
	ARTICLE 2	 	RACKSPACE COMMITMENT AND RECAPTURE	  	.6
			
	ARTICLE 3	 	LEASED PROPERTY REDEVELOPMENT	  	9
			
	ARTICLE 4	 	EISENHAUER DEVELOPMENT	  	14
			
	ARTICLE 5	 	RACKER ROAD CONSTRUCTION	  	16
			
	ARTICLE 6	 	WALZEM INTERCHANGE	  	17
			
	ARTICLE 7	 	UTILITIES	  	17
			
	ARTICLE 8	 	WALZEM ROAD	  	18
			
	ARTICLE 9	 	WINDCREST DEVELOPMENT	  	18
			
	ARTICLE 10	 	BOUNDARY CHANGE AND TAX SPLlTS	  	18
			
	ARTICLE 11	 	SECURITY PROVISIONS	  	21
			
	ARTICLE 12	 	BOND FINANCING	  	22
			
	ARTICLE 13	 	MISCELLANEOUS	  	22

 WALZEM ROAD REDEVELOPMENT PROJECT MASTER ECONOMIC 
 INCENTIVES AGREEMENT 
 THIS WALZEM ROAD
REDEVELOPMENT PROJECT MASTER ECONOMIC INCENTIVES AGREEMENT (the “Agreement”) is hereby made and entered into effective as of August 2, 2007 (the “Effective Date”) by and between the CITY OF WINDCREST, TEXAS (the “City
of Windcrest”), the CITY OF SAN ANTONIO, TEXAS (the “City of San Antonio”), the COUNTY OF BEXAR, TEXAS (the “County”), the WINDCREST ECONOMIC DEVELOPMENT CORPORATION (the “Windcrest EDC”), the WINDCREST ECONOMIC
DEVELOPMENT COMPANY, LLC (the “Developer”) and RACKSPACE US, INC. (“Rackspace”). The City of Windcrest, the City of San Antonio, the County, the Windcrest EDC, the Developer and Rackspace may hereinafter be referred to
collectively as the “Parties.” 
 JOINT RECITALS OF ALL PARTIES 
 WHEREAS, the Parties (other than Rackspace) have approved this Agreement to offer economic incentives to Rackspace to retain its operations in the
community; and 
 WHEREAS, Article III, Section 52-a of the Texas Constitution expressly authorizes the State of Texas (the
“State”) and local governments to use public funds for the public purposes of development and diversification of the economy of the State, the elimination of unemployment or underemployment in the State, or the development or expansion of
transportation or commerce in the State; and 
 WHEREAS, consistent with Article III, Section 52-a of the Texas Constitution, the
Parties hereby make specific proposals to Rackspace for the purpose of inducing Rackspace to relocate its corporate headquarters to the Leased Property, as defined below, and thereby advance the public purposes of developing and diversifying the
economy of the State, eliminating unemployment or underemployment in the State, and developing or expanding transportation or commerce in the State; and 
 WHEREAS, to ensure that the benefits the Parties provide under this Agreement are utilized in a manner consistent with Article III, Section 52-a of the Texas Constitution, and other law, Rackspace has agreed to
comply with certain conditions for receiving those benefits, including performance measures relating to job creation; and 
 WHEREAS, the
Windcrest EDC is a Section 4B corporation created pursuant to the authority of the Development Corporation Act of 1979, as amended, Texas Revised Civil Statutes Annotated, Article 5190.6 (the “EDC Act”); and 
 WHEREAS, it has been determined that Section 4B(a)(3) of the EDC Act allows the Windcrest EDC to use funds in connection with land, buildings,
equipment, facilities, expenditures, targeted infrastructure, and improvements that the board of directors of the Windcrest EDC believes would promote new or expanded business development in the City of Windcrest; and 
  

 1 

 WHEREAS, it has been determined that pursuant to Section 23(a) of the EDC Act and Article
1396-2.02.A.(4) of the Texas Nonprofit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Revised Civil Statutes) (the “Nonprofit Corporation Act”) the Windcrest EDC may acquire certain real estate located partially in
the City of Windcrest and partially in the City of San Antonio; and 
 WHEREAS, it has been determined that as provided by Section 23(a)
of the EDC Act and pursuant to Article 1396-2.02.A.(8) of the Nonprofit Corporation Act, the Windcrest EDC may make contracts and incur liabilities, borrow money at such rates of interest as the Windcrest EDC may determine, issue its notes, bonds,
and other obligations, and secure any of its obligations by mortgage or pledge of all or any of its property, franchises, and income; and 
 WHEREAS, Rackspace has decided to relocate its U.S. corporate headquarters with up to 1,200 current employees and up to 3,300 future employees; and 
 WHEREAS, Rackspace intends to join with the Windcrest EDC to assist with the redevelopment of that certain tract of land and improvements comprising the property commonly known as the Windsor Park Mall and being more
particularly described in Exhibit “A” (the “Leased Property”) into a corporate headquarters for Rackspace (the “Leased Property Project”), and 
 WHEREAS, the Parties (other than Rackspace) intend to redevelop the Walzem Road corridor shown in Exhibit “B” herein (referred to herein as the
“Project Area”) with certain “projects”, as defined in the EDC Act, including (1) the development of a mixed use complex on land located along U.S. Interstate Highway 35 (“‘IH 35”) between Eisenhauer Road and
the Leased Property and being more particularly described in Exhibit “C” (the “Eisenhauer Development Tract”), which development shall be designed utilizing a “live, work, and play concept” and possibly contain
condominiums, apartments, grocery stores, restaurants, retail shopping and entertainment facilities (the “Eisenhauer Development”) that are important to Rackspace’s decision to relocate to the Leased Property, (2) the
construction of a public street from Walzem Road to Eisenhauer Road, the portion between the Mall and the pad sites along the IH 35 access road being more particularly shown on Exhibit “D” (“Racker Road”), (3) the
modernization of the IH 35 and the Walzem Road interchange and the widening of the service road on the north bound side from the Walzem Road exit to the Walzem Road interchange by the Texas Department of Transportation (“TDOT”),
(4) the undergrounding of utilities along Walzem Road, (5) converting the continuous turn lanes on Walzem Road into a divided street with appropriate medians and turn lanes, (6) the development of a primarily residential neighborhood
in the area more particularly described in Exhibit “E” (the “Walzem Neighborhood”), and (7) the development of up to twenty-three (23) acres shown on Exhibit “F” as residential homes and a retail power center
(the “Windcrest Development Site” and collectively all of the above shall be referred to as the “Walzem Road Redevelopment Project”), all of which will promote or develop new or expanded business development in the City of
Windcrest; and 
 WHEREAS, pursuant to the EDC Act, the Windcrest EDC has acquired the Leased Property; and 
 WHEREAS, the Windcrest EDC will lease to Rackspace the Leased Property; and 
  

 2 

 WHEREAS, Rackspace will locate its corporate headquarters on the Leased Property, bring the jobs
committed to herein and make additional improvements to the Leased Property; and 
 WHEREAS, Rackspace has required that a commitment be made
to complete the balance of the Walzem Road Redevelopment Project, as provided herein, in order to induce Rackspace to relocate its corporate headquarters to the Leased Property; and 
 WHEREAS, the Parties are desirous of having such proposals set forth in valid, binding and enforceable agreements to establish a working partnership
among the Parties; and 
 WHEREAS, Rackspace may accept this offer by executing this Agreement below; and 
 WHEREAS, the Parties endorse and believe it is in the best public interest to enter into this Agreement pursuant to which Rackspace is induced to locate
its corporate headquarters on the Leased Property; and 
 WHEREAS, on the Effective Date the commitments contained in this Agreement shall
become legally binding obligations of the Parties, which commitments are made in consideration of Rackspace’s decision to locate its corporate headquarters on the Leased Property. 
 AGREEMENTS 
 NOW, THEREFORE, upon and in consideration for the mutual promises
and covenants contained herein and for other valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 Section 1.1 “Additional Bonds” means any bonds, mortgages, or other obligations issued in addition to the Bonds. 
 Section 1.2 “Agreement” means this Agreement and any addendum to this Agreement agreed to by the Parties. 
 Section 1.3 “Annexed Area” means the property described in Exhibit “G”. 
 Section 1.4 “Bonds” means bonds, mortgages, or other obligations authorized to be issued by the Windcrest EDC under the provisions of the
EDC Act pursuant to Article 2 of this Agreement. 
 Section 1.5 “Boundary Change Agreement” means an agreement to be entered
into between the City of San Antonio and the City of Windcrest pursuant to Section 43.035 of the Local Government Code containing the terms and provisions of Article 9 of this Agreement. 
 Section 1.6 “Business Activities” means the operation by Rackspace of an information technology services business, including acting as the
U.S. corporate headquarters for such business, and the business operations of any assignee, tenant or subtenant of Rackspace approved by the City of Windcrest and located at the Leased Property. 
  

 3 

 Section 1.7 “City Economic Development Grant Agreement” means the agreement entered into
between the City of Windcrest and Rackspace contemporaneously with this Agreement, entered into pursuant to Chapter 380 of the Local Government Code, and containing the terms and provisions of Section 3.11 of this Agreement. 
 Section 1.8 “County Economic Development Grant Agreement” means the agreement entered into between the County and Rackspace contemporaneously
with this Agreement, pursuant to Chapter 381 of the Local Government Code, and containing the terms and provisions of Section 3.12 of this Agreement. 
 Section 1.9 “Cure Period” means that if either party believes the other is in default under any of the terms set forth in this Agreement it shall notify the allegedly defaulting party of the nature of
the breach as provided in Section 13.6. The party receiving notice of default shall have ninety (90) calendar days from the date such notice is received to cure the default. If the default has not been cured by that date this Agreement may
be terminated after giving ten (10) calendar days written notice. The non-defaulting party shall have the option, to be exercised reasonably and in good faith, to extend the Cure Period if the defaulting party commences to cure said default
within the ninety (90) day Cure Period and it is diligently pursuing such cure. 
 Section 1.10 “Developer Economic
Development Grant Agreement” means an agreement to be entered into between the City of Windcrest and the Developer pursuant to Chapter 380 of the Local Government Code containing the term and provisions of Section 4.3 of this Agreement.

 Section 1.11 “Exemption Period” has the meaning provided in Section 3.4 of this Agreement. 
 Section 1.12 “Force Majeure” means the occurrence of any of the following events that results in the impossibility of performance: war,
domestic terrorist acts, riots, strikes, embargoes, acts of God, earthquakes, fires, hurricanes, tornadoes, floods, wash outs, and unusually severe weather, interruption or unavailability of utilities, or due to failure of performance by suppliers.

 Section 1.13 “Leased Property” means that certain tract of land and improvements comprising the real property commonly known as
the Windsor Park Mall and being more particularly described in Exhibit “A”. The term also includes the improvements, additions and renovations made by Rackspace or Windcrest EDC to the Leased Property for use as part of the Leased Property
Project that become subject to the terms of the Mall Lease. 
 Section 1.14 “Leased Property Project” means the anticipated
corporate headquarters to be developed at the Leased Property for Rackspace. 
 Section 1.15 “Mall Lease” means an agreement
to be entered into between the Windcrest EDC, as landlord, and Rackspace, as tenant, for the lease of the Leased Property. The form of the Mall Lease is attached hereto as Exhibit “1”. 
 Section 1.16 “Personal Property Improvements” means the tangible personal property for use at the Leased Property Project, including that
leased by Rackspace from the Windcrest EDC. 
  

 4 

 Section 1.17 “PILOT Payment” means a payment to the City of Windcrest or other taxing unit
required by this Agreement that has ad valorem taxes as its basis of calculation, and includes any payment in lieu of the ad valorem property taxes that would otherwise be assessed for a given tax year against the Rackspace Corporate Headquarters
Property if it was not property tax exempt. 
 The parties acknowledge that Bexar Appraisal District may have not previously determined the
appraised value for property tax purposes that would typically be used to calculate the amount of taxes otherwise assessed against the Rackspace Corporate Headquarters Property since the property is exempt from appraisal for ad valorem property
taxes. Therefore, it is the intent of the parties that whenever it is necessary to determine the appraised value of the Rackspace Corporate Headquarters Property for the purpose of calculating a PILOT Payment, the parties and any appraisers selected
under this Agreement shall strive to determine what appraised value for property tax purposes would have been determined by the Bexar Appraisal District for the relevant time period. This shall be accomplished pursuant to the provisions in
Section 3.5 below. 
 If the Bexar Appraisal District takes steps to determine the appraised value for property tax purposes of the
Rackspace Corporate Headquarters Property or to determine the qualification of the Rackspace Corporate Headquarters Property for exemption under the EDC Act or other applicable law, Windcrest EDC and the City of Windcrest hereby automatically
designate Rackspace to act as their agent for property tax matters involving the Rackspace Corporate Headquarters Property, including for filing and management of any necessary protests or appeals. 
 Section 1.18 “Rackspace Corporate Headquarters Property” means the Leased Property, the Personal Property Improvements and the Real
Property Improvements (and any taxable leasehold or other possessory interest in the property) located in Bexar County, Texas that are owned by the Windcrest Economic Development Corporation and leased to Rackspace (or its assignees, tenants or
subtenants approved by the City of Windcrest) under this Agreement for use as part of the Leased Property Project. 
 Section 1.19
“Real Property Improvements” means the buildings and other property improvements owned by the Windcrest EDC and leased by Rackspace (or its assignees, tenants or subtenants approved by the City of Windcrest) for use at the Leased Property
Project. 
 Section 1.20 “Related Organizations” means an entity or person who (a) is directly or indirectly controlled
by, or under common control with Rackspace; (b) owns directly or indirectly fifty percent (50%) or more of the equity or voting interest of Rackspace; (c) is a successor by merger or other business combination with Rackspace such that
substantially all of the business assets of Rackspace remain in the merged or combined entity; or (d) an approved purchaser or assignee of Rackspace. 
 Section 1.21 “Relocation” or “Relocate” shall mean that Rackspace (or a Related Organization, which has taken the place of Rackspace) moves the Business Activities previously conducted at the
Leased Property to a location outside the Leased Property. 
 Section 1.22 “Section 4B(k) of the EDC Act” shall mean
Section 5190.6-4B(k) of the EDC Act and any other statute that enables the Rackspace Corporate Headquarters Property to be exempt from ad valorem property taxation. 
  

 5 

 ARTICLE 2 
 RACKSPACE COMMITMENT AND RECAPTURE 
 Section 2.1 Rackspace agrees to bring to and thereafter
maintain at the Leased Property the following number of employees by the following dates: 2,000 employees by December 31, 2009; 3,000 employees by December 31, 2010; and 4,500 employees by December 31, 2012, with a median total annual
payroll (salary and bonus) of not less than $51,000 (the “Employment Commitment”). The number of jobs, the median payroll, and the time to reach such Employment Commitments are (i) each subject to applicable events of Force Majeure,
and (ii) shall be automatically reduced to match the number of jobs and the amount of median payroll contained in an agreement between Rackspace and the State of Texas regarding any Texas Enterprise Fund grant received by Rackspace if the state
requirement is lower; however, the time to reach such Employment Commitments will not be reduced. 
 Section 2.2 
 (a) If Rackspace, a Related Organization, or a City of Windcrest-approved assignee or subtenant as provided below occupies and uses the Leased Property
for Business Activities and subsequently all or substantially all Business Activities (or a substantial portion thereof) at the Leased Property are ceased for a continuous period of three (3) months (hereinafter referred to as a “Cessation
of Business Activities”) during the Exemption Period for any reason, except if such cessation is caused by a Force Majeure, then the City of Windcrest shall have the right to terminate this Agreement upon delivery of the notices and expiration
of the Cure Period. Said termination shall be effective for the calendar year during which such Cessation of Business Activities occurred. 
 (b) Upon a termination under Section 2.2(a), an amount equal to the ad valorem taxes which would have been assessed by the City of Windcrest, Bexar County and North East Independent School District (“NEISD”) (hereafter
referred to collectively as the “Taxing Units”) against the Rackspace Corporate Headquarters Property for the calendar year in which the Cessation of Business Activity occurred, as if the property had not been exempt from property taxes,
shall be paid as a PILOT Payment by Rackspace to the City of Windcrest. 
 (c) In addition to the PILOT Payment under Section 2(b), upon
a termination under Section 2.2(a), an amount equal to the ad valorem taxes which would have been assessed by the City of Windcrest and Bexar County against the Rackspace Corporate Headquarters Property for the previous years during the
Exemption Period if the property had not been exempt from property taxes shall be paid as a PILOT Payment by Rackspace to the City of Windcrest. The City of Windcrest shall pay to the County the County’s portion of such PILOT Payment. A PILOT
Payment shall also be made to NEISD (or its foundation, at the City of Windcrest’s discretion) upon a termination under 2.2(a) for the same time period, but shall be calculated as follows. For each year of the Exemption Period, Rackspace shall
pay the amount required to offset the net amount of actual 

  

 6 

 
tax revenue and state aid loss to the NEISD for the given year(s) caused as a result of the Texas school finance laws and the tax-exempt nature of the
Rackspace Corporate Headquarters Property. The purpose of this payment is to make NEISD whole, but not to place it in any better position than if it had actually received the property taxes, after taking into account the effect such a receipt of
property taxes would have had on State funding to NEISD. To assist in determining the amounts due, the parties agree to utilize the services of the school finance consulting firms of either Moak, Casey & Associates, LLC of Austin, Texas or
Kavoussi & Associates of San Antonio, Texas, as determined by NEISD, the cost of which shall be paid by Rackspace but then credited as a reduction in the amount of the next PILOT Payment to NEISD. 
 (d) Any PILOT Payment under this Section 2.2 shall be paid by Rackspace to the City of Windcrest within ninety (90) calendar days from the date
the Cure Period has expired. The City of Windcrest shall pay any portion of such PILOT Payment due to other governmental entities within thirty (30) days after its receipt of such PILOT Payment. If a Cessation of Business Activity is caused by
a Force Majeure, Rackspace may continue or terminate this Agreement, for all or a portion of the Leased Property, without liability for any PILOT Payment or other penalty. 
 Section 2.3 If Rackspace, a Related Organization, or a City of Windcrest-approved assignee or subtenant as provided below fails to satisfy the
Employment Commitment during a calendar year in the Exemption Period, then for each such calendar year of noncompliance, Rackspace shall pay the City of Windcrest a PILOT Payment representing the property taxes that would have been assessed against
the Real Property Improvements or Personal Property Improvements by the City of Windcrest or Bexar County as if they were not property tax exempt, and the City of Windcrest shall distribute such PILOT Payments to the appropriate taxing entities. The
amount of the PILOT Payment shall be computed by multiplying the amount of property taxes that would have been assessed against the Real Property Improvements and Personal Property Improvements by the City of Windcrest and Bexar County by the same
percentage as the deficiency in the Employment Commitment. The NEISD amount shall be calculated using the methodology set forth in Section 2.2(c). 
 For example, if Rackspace creates and retains ninety percent (90%) of the minimum number of full-time employee positions required to comply with the Employment Commitment in a given year, Rackspace shall be
required to pay 10% of the taxes that would have otherwise been assessed by the Taxing Units (which for purposes of this Section 2.3 excludes NEISD as it is already covered by the separate provisions of Section 2.2(c)) against the Real
Property Improvements or Personal Property Improvements for the given year of deficiency, but subject to a floor of fifty percent (50%). Since the Employment Commitment requires that the median total annual payroll of the employees credited to meet
the Employment Commitment be not less than $51,000, when calculating the Employment Commitment the lowest paying jobs will be excluded from the number of jobs credited toward satisfying the Employment Commitment to the extent necessary to cause the
median total compensation of the remaining employees to equal or exceed $51,000. If Rackspace fails to create and retain at least fifty percent (50%) of the minimum number of full-time employee positions required to comply with the Employment
Commitment in a given year then, at the option of the City of Windcrest, the City of Windcrest may terminate this Agreement. Said termination shall be effective for the calendar year during which at least fifty percent (50%) of the minimum
number of full-time employee positions required to comply with the Employment Commitment have not been created or retained by Rackspace. Upon said termination, a PILOT Payment equal to the ad valorem 

  

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taxes that would otherwise have been assessed by the Taxing Units against the Real Property Improvements and Personal Property Improvements for that calendar
year shall be calculated as set forth in Section 2.2(c). A PILOT Payment equal to the property taxes that would otherwise have been assessed by the Taxing Units against the Real Property Improvements and Personal Property Improvements for the
years in the Exemption Period preceding the year of termination shall be paid to the Taxing Units and calculated as set forth at Section 2.2.(b). If the failure to create and retain at least fifty percent (50%) of the minimum number of
full-time employee positions required to comply with the Employment Commitment is caused by a Force Majeure, Rackspace shall have the right to continue or to terminate this Agreement, for all of or any remaining portion of the Leased Property,
without recapture or other penalty. Rackspace may count employees of a subtenant or Related Organization that are located on a fulltime basis on the Leased Property as if they were Rackspace employees (including the median salary calculations) for
purposes of meeting the Employment Commitment. 
 Section 2.4 During the Exemption Period the City of Windcrest may declare a default if
Rackspace fails to comply with any of the conditions set forth in Sections 2.2 and 2.3 (but only below the 50% requirement) of this Agreement. Should the City of Windcrest determine that Rackspace is in default under any of the terms set forth in
Sections 2.2 and 2.3 (but only below the 50% requirement) of this Agreement, the City of Windcrest shall notify Rackspace in writing, and if said default is not cured within the Cure Period, then the City of Windcrest shall have the right to
terminate this Agreement upon ten (10) calendar days prior written notice. The City of Windcrest shall have the option, to be exercised reasonably and in good faith, to extend the Cure Period if Rackspace commences to cure said default within the
Cure Period and Rackspace is diligently pursuing such cure. If this Agreement is terminated as a result of a default described under this Section 2.4, the Taxing Units shall be entitled to the PILOT Payments calculated in the amounts and paid
in the manner set forth in Sections 2.2 and 2.3. For the purpose of calculating the PILOT Payments under Sections 2.2 and 2.3 there shall be no right of double recovery by any taxing unit entitled to a PILOT Payment. For example, if Rackspace ceases
business activity under Section 2.2, and at the same time breaches its Employment Commitment under Section 2.3, the taxing unit shall elect as its remedy whether to proceed under Section 2.2 or Section 2.3. In addition, Rackspace
shall be entitled to a credit against such PILOT Payments for any previous PILOT Payments or property taxes it has paid to the Taxing Units. 
 Section 2.5 If the Exemption Period expires and Rackspace Relocates or there is a Cessation of Business Activities at the Leased Property (other than as a result of a Force Majeure) during the one year period after the end of the
Exemption Period, then the Taxing Units shall also have the right to a payment (by PILOT Payment, if necessary) from Rackspace equal to 20% of the property taxes (except for the payment to NEISD which shall be calculated in the manner set forth in
Section 2.2(c)) that would have been assessed for the preceding tax year by the Taxing Units against the Real Property Improvements or Personal Property Improvements had they not been exempt from property taxes. 
 Section 2.6 If during the term of the Mall Lease, as set forth therein (the “Lease Term”), (a) Rackspace allows a PILOT Payment to
become delinquent or there is a default; and (b) Rackspace does not cure such delinquency or default within the Cure Period, the City of Windcrest 

  

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shall have the right to terminate this Agreement. A PILOT Payment will then be due for the calendar year during which the termination occurred on the same
basis set forth in Section 2(b). In addition a PILOT Payment shall be paid on the same basis set forth in Section 2(c). 
 Section 2.7 The Parties recognize, agree, and stipulate that the financial, civic, and social benefits to the City of Windcrest from the presence of Rackspace on the Leased Property are great, but that the precise value of those
benefits is difficult to quantify due to the number of citizens and businesses that rely upon and benefit from the presence of Rackspace on the Leased Property. Accordingly, the magnitude of the damages that would result from a violation of Sections
2.2 through 2.6 hereof would be significant in size but difficult to quantify including, without limitation, damages to the reputation and finances of the City of Windcrest, Therefore, the Parties agrees that in the event of a violation of Sections
2.2 through 2.6 hereof including, without limitation, any such breach arising pursuant to the provisions of section 365(g) of the United States Bankruptcy Code or similar provision of any successor thereto, the City of Windcrest will be entitled to
recover from Rackspace the PILOT Payments provided for in Sections 2.2 through 2.6 hereof, which are stipulated to be reasonable estimated damages, as reasonable liquidated damages and not as a penalty. The Parties hereby acknowledge that they have
negotiated the above amounts in a good faith attempt to quantify the amount of damages arising due to a violation of Sections 2.2 through 2.6 hereof despite the difficulty in making such determination. Accordingly, in the event the City of Windcrest
collects the above referenced liquidated damages, then the City of Windcrest hereby waives any right to collect additional monetary damages (other than legal fees and expenses) including lost or prospective profits, or for any other special,
indirect, incidental, consequential, exemplary, or punitive damages. 
 Section 2.8 Other Remedies Available. Subject to the preceding
paragraph, the City of Windcrest shall have the right to take appropriate action to which it may be entitled, at law or in equity, to enforce the obligations of Rackspace pursuant to this Agreement. 
 Section 2.9 Rackspace shall cause its outside auditing firm to calculate the number of employees meeting the Employment Commitment and the median
salary of such employees as of December 31 of each year and shall certify such numbers to the City of Windcrest. The City of Windcrest shall, at its expense, have the right to cause its auditor to audit Rackspace’s and any other
entities’ books and records which make up part of the calculation of the Employment Commitment, for the sole purpose of calculating the Employment Commitment. 
 ARTICLE 3 
 LEASED PROPERTY REDEVELOPMENT 
 Section 3.1 The Leased Property has been financed through a temporary financing with the Developer. Simultaneously with the execution hereof,
Rackspace will enter into the Mall Lease and the prepaid lease payments to the Windcrest EDC thereunder (and delivered into escrow hereunder, as described below) will be used in part to repay the Developer for the loans and liens used to temporarily
finance the Leased Property, and in part to provide to the City of Windcrest $5,000,000 for the purposes described in Section 4.4 below. The cost will be $26,940,425.63 (which includes all expenses through June 30, 2007) plus the daily
rate for expenses incurred until the date the Mall 

  

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Lease is fully executed, plus the $5,000,000.00 which shall be delivered to and held by the City of Windcrest pursuant to Section 4.4 below. Expenses
will accrue as follows: interest from July 1, 2007, at the rate of $5,560.53 per day and security at the rate of $840 per week and, if necessary, insurance after July 15,2007 at market rates. Any unusual or nonrecurring expenses (e.g.,
power washing, utilities, repairs, surveys, replatting costs, environmental testing and closing costs) will be in addition to the amounts stated above. 
 Section 3.2 The City of Windcrest and the Windcrest EDC will authorize Rackspace and the Developer to appoint one individual each to serve as a member of the Windcrest EDC Board of Directors. 
 Section 3.3 The economic incentives granted to Rackspace in this Agreement require that a cumulative investment of not less than $60,000,000 by
December 31, 2009, and of not less than $100,000,000 by December 31, 2012 be made in the acquisition and improvements to the Rackspace Corporate Headquarters Property, which sums include, without limitation, the amount of prepaid rent
payable under Section 3.1 above, all soft costs incurred by Rackspace in connection with this Agreement and the design, construction, and equipping of the Rackspace Corporate Headquarters Property, and the costs of all property installed, used
in, or constituting the Rackspace Corporate Headquarters Property, including all tangible and intangible property. Rackspace and the Developer, in equal shares, shall pay to the City of Windcrest an administrative fee not to exceed an aggregate
total of $315,000 for the first three years following the Effective Date as provided in Section 11.4 below, and after the third year Rackspace shall pay an administrative fee of $100,000 per year if, and only if, (i) the tax exemption on
the Leased Property, the Real Property Improvements and the Personal Property Improvements pursuant to Section 4B(k) of the EDC Act remains in effect, and (ii) Rackspace’s sales taxes generated from the Leased Property are less than
$500,000 for the year in question, and if either or both of such conditions (i) or (ii) are not met Rackspace will not owe the administrative fee to the City of Windcrest for that year. The Windcrest EDC will, upon written request by
Rackspace, finance the purchase and renovation of the Leased Property (through the issuance of the Bonds) payable solely from the Lease payments. Additional Bonds may be issued for additional renovations and expansion projects relating to the
Rackspace Corporate Headquarters Property. The terms of any such financing must be mutually acceptable to Rackspace and Windcrest EDC. 
 Section 3.4 The Rackspace Corporate Headquarters Property will be owned by the Windcrest EDC and therefore will be exempt from property taxation during the term of the Lease pursuant to Section 4B(k) of the EDC Act. Nonetheless,
Rackspace has agreed to make PILOT Payments as provided elsewhere in this Agreement, except during a 14-year exemption period, (the “Exemption Period”). The Exemption Period will begin on January 1 of the calendar year designated by
Rackspace, which may be designated to begin on January 1 after the completion of substantial construction of the first phase of the renovation of the Leased Property and must begin no later than January 1, 2010. The Exemption Period will
be for a 14-year period regardless of whether the Leased Property is actually exempt during such period. If the Exemption Period does not begin immediately, Rackspace shall make PILOT Payments to the Taxing Units until the Exemption Period begins.
The PILOT Payments shall be calculated in the manner and amounts as set forth in Section 2.2(c). Rackspace shall also make PILOT Payments as set forth in Section 3.5 after the Exemption Period has expired and until the Mall Lease is
terminated. 
  

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 Section 3.5 Except during the Exemption
Period, the PILOT Payments shall be paid to the City of Windcrest (or other entity designated by the City of Windcrest) for distribution to each Taxing Unit in an amount equal to the taxes that would have been assessed by each Taxing Unit against
the Fee Simple Interest in the Rackspace Corporate Headquarters Property (including any improvements or additions) as if the property was not exempt from property taxation. These payments will be due by February 28th of the year following the tax year for which they are being paid. In the event the Bexar Appraisal District does not determine an appraised value for property
tax purposes for the Rackspace Corporate Headquarters Property, then the appraised value for property tax purposes will be determined in the following manner. Rackspace will obtain an appraisal for the Rackspace Corporate Headquarters Property for
property tax purposes from a real estate appraiser designated as a Member of the Appraisal Institute to appraise the Real Property and an appraiser who has an ASA designation to appraise the Tangible Personal Property (“Qualified
Appraisers”). If the City of Windcrest agrees with that appraised value, then that value shall be used for purposes of this Section 3.5. If the City of Windcrest does not agree with that appraised value, then Rackspace and the City of
Windcrest will attempt to agree on Qualified Appraisers to determine the appraised value for property tax purposes to be used. If Rackspace and the City of Windcrest are unable to mutually agree on Qualified Appraisers, then the City of Windcrest
will select Qualified Appraisers who will, along with Rackspace’s Qualified Appraisers, select a third set of Qualified Appraisers to assist the appraisers chosen by the parties to value the property, which value shall be as determined by a
majority of such appraisers for each type of property (real and personal). In determining the relevant appraised values for property tax purposes, Rackspace, the City of Windcrest, and the appraisers shall be guided by the definitions contained in
Section 1.17. Upon collection by the City of Windcrest, the PILOT Payments under this Section shall be distributed within thirty (30) days to each taxing unit as appropriate. 
 Section 3.6 During the Lease Term, Rackspace agrees to make additional PILOT Payments to the City of Windcrest for the benefit of the NEISD and the
City will distribute them to the NEISD or its foundation, at the City of Windcrest’s discretion, as follows: (a) the first payment will be payable no later than February 28, 2008 and shall be equal to the taxes that the NEISD would
have assessed for the 2007 tax year against the Leased Property, if it was not exempt from property taxes, based on the Leased Property’s 2007 tax year appraised value as determined by the Bexar Appraisal District; and (b) each year
thereafter until the end of the Exemption Period Rackspace will make a PILOT Payment to the City of Windcrest (or such other entity the City may designate) in an amount calculated by multiplying the appraised value for tax purposes of the Rackspace
Corporate Headquarters Property times the debt service portion (as defined in Texas Education Code Section 45.001(a)(2) or its successor provision) of the NEISD’s tax rate for each such year. 
 Section 3.7 The Windcrest EDC and Rackspace will enter into a sale/leaseback, rental or similar agreements for all Personal Property Improvements it
owns which are acquired for use by Rackspace at the Leased Property. At the end of the Exemption Period, Rackspace shall purchase all Personal Property Improvements from Windcrest EDC for $1.00. Rackspace will be responsible for all accounting
associated with its leases from Windcrest EDC of the Personal Property Improvements. 
 Section 3.8 All additions to the Leased Property
and the Rackspace Corporate Headquarters Property will also be subject to ownership by the Windcrest EDC and shall therefore be subject to property tax exemption under Section 4B(k) of the EDC Act for the Exemption Period and shall also be
subject to the PILOT Payments and the appraisal process provided herein. 
  

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 Section 3.9 At any time during the term of this Agreement, and at Rackspace’s option in its
sole discretion, Rackspace may terminate the Mall Lease by written notice thereof to the Windcrest EDC and a copy to Alamo Title Company, Attn: Chris Varley, 112 E. Pecan, Suite 125, San Antonio, Texas 78205 (the ‘Title Company”), upon
which notice of termination the Title Company shall release from escrow and record in the Official Public Records of Bexar County, Texas the special warranty deed (executed by the Windcrest EDC contemporaneously herewith and delivered to the title
company in escrow) conveying the Leased Property and all improvements thereto to Rackspace in consideration of the prepaid lease payments under Section 3.1 above and an additional $1.00 cash. The Parties hereby acknowledge and agree that
Rackspace’s options under Section 3.7 and this Section 3.9 are each supported by $50.00 independent consideration (for a total of $100.00 independent consideration) paid by Rackspace to Windcrest EDC as of the Effective Date.

 Section 3.10 The Windcrest EDC will work with Rackspace so that materials incorporated into improvements to the Leased Property and
the Real Property Improvements will be exempt from sales and use taxes. The Windcrest EDC shall serve as the general contractor during renovation and construction to the extent necessary to achieve such tax exemption. Rackspace will provide
Windcrest EDC with an indemnification for acting as the general contractor. 
 Section 3.11 As soon as reasonably practicable after the
date hereof, the City of Windcrest will enter into with Rackspace a City Economic Development Grant Agreement, pursuant to Chapter 380 of the Texas Local Government Code, which agreement will provide that, in the event it is determined that
Section 4B(k) of the EDC Act does not apply or exempt the Leased Property, the Real Property Improvements or the Personal Property Improvements from property taxes, the City will make a grant to Rackspace of the property and sales taxes the
City collects from the Annexed Area, the Eisenhauer Development Tract, and the Windcrest Development Site (less its cost of providing municipal services to the Annexed Area that are not covered by one-half of the local sales taxes collected as
hereafter provided, and less any payments to the City of San Antonio under Section 10.4) to reimburse Rackspace for any property taxes it must pay during the Exemption Period. These grants will be made each year until the sooner of (a) full
reimbursement to Rackspace of any and all accrued property taxes paid by Rackspace on the Leased Property, the Real Property Improvements or the Personal Property Improvements, or (b) December 31 , 2047, after which such grant payments
shall cease. The City Economic Development Grant Agreement shall survive the expiration or the earlier termination of this Agreement. The City of Windcrest agrees it will not enter into any Economic Development Grants or other arrangements affecting
any of the Annexed Area other than the Leased Premises (other than possibly as serving as the general contractor or owner in order to exempt the purchase of construction materials from sales taxes, similar to the arrangement described in
Section 3.10 above) that have the effect of reducing or committing the property tax and sales tax revenues therefrom to other purposes not specifically provided for in this Agreement if such grant or arrangement, without the prior consent of
Rackspace, would either (i) provide the described incentive for a period lasting longer than five years after completion of construction of the incentivized improvement(s), or (ii) constitute an abatement, cumulatively with all other
incentives or exemptions in effect on such property, in excess of fifty percent (50%) of the expected tax value of the Annexed Area other than the Leased Premises after construction of all anticipated improvement(s). 
  

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 Section 3.12 As its sole obligation under this Agreement, and as soon as reasonably practicable
after the date hereof, the County will enter into with Rackspace a County Economic Development Grant Agreement, pursuant to Chapter 381 of the Texas Local Government Code, which agreement will provide that, in the event it is determined that
Section 4B(k) of the EDC Act does not apply or exempt the Leased Property, the Real Property Improvements or the Personal Property Improvements from property taxes, the County will make a grant to Rackspace of the property taxes the County
collects in the Annexed Area (less the amount of property taxes the County is currently collecting in the Annexed Area) for ten (10) tax years following the first day of the Exemption Period. Ad valorem taxes eligible under this Agreement shall
be the ad valorem taxes levied by the Commissioners Court for and on behalf of Bexar County only, and shall not include taxes levied by the Commissioners Court for and on behalf of the Bexar County Hospital District operating as University Health
System, the Bexar County Flood Control District, or any other taxing entity. The County Economic Development Grant Agreement and the terms of this Agreement shall be Rackspace’s sole recourse against the County in the event that the Leased
Property, the Real Property Improvements or the Personal Property Improvements becomes subject to taxation. The County Economic Development Grant Agreement shall survive the early termination of this Agreement. The County agrees it will not enter
into any Economic Development Grants or other arrangements affecting any of the Annexed Area other than the Leased Premises that have the effect of reducing or committing the property tax and sales tax revenues therefrom to other purposes not
specifically provided for in this Agreement if such grant or arrangement, without the prior consent of Rackspace, would either (i) provide the described incentive for a period lasting longer than five years after completion of construction of
the incentivized improvement(s), or (ii) constitute an abatement, cumulatively with all other incentives or exemptions in effect on such property, in excess of fifty percent (50%) of the expected tax value of the Annexed Area other than
the Leased Premises after construction of all anticipated improvement(s). Notwithstanding the foregoing, however, the County may make CDBG or EDA grants, a grant of its general funds, or another type of grant or incentive in the Annexed Area if it
will not adversely affect the value of (or impair the ability of the County to pay) the grants to Rackspace under the County Economic Development Grant Agreement. Rackspace agrees that from the effective date of this Agreement throughout the term
hereof, one-hundred percent (100%) of all employment positions at the Rackspace Corporate Headquarters Property shall be paid a minimum wage, not including benefits, of at least nine dollars and ninety-three cents ($9.93) per hour (or a salary
that satisfies that requirement). Rackspace further agrees that within one year of the commencement of Business Activities at the Rackspace Corporate Headquarters Property, seventy percent (70%) of all new and existing employees at the
Rackspace Corporate Headquarters Property shall be paid a minimum wage, not including benefits, of at least eleven dollars and forty-five cents ($11.45) per hour (or a salary that satisfies that requirement). Subject to meeting the requirements of
such statute, Bexar County shall grant Rackspace a 100% property tax abatement for at least ten (10) years under Tax Code Chapter 312, with a base year of 2007. 
 Section 3.13 The commitment by Rackspace is subject to the granting by the Bexar Appraisal District of the initial property tax exemption for the Leased Property under Section 4B(k) of the EDC Act. The
Parties agree to use their best efforts to support and defend the validity of the 

  

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ad valorem tax exemption under Section 4B(K) of the EDC Act for the Rackspace Corporate Headquarters Property, provided that the Parties shall not be
required to incur other than nominal expenses in their best efforts, and provided further that all reasonable and necessary expenses incurred by Rackspace in its best efforts to support and defend the validity of the ad valorem tax exemption shall
be added to the amount of the grants under the City Economic Grant Agreement as if they were ad valorem taxes paid. 
 Section 3.14
Rackspace shall owe no PILOT Payment under this Agreement for any tax year in which the Rackspace Corporate Headquarters Property is not exempt from property taxation and it is required to pay property taxes for that tax year. If Rackspace is
required to pay ad valorem property taxes to any taxing unit in connection with the Rackspace Corporate Headquarters Property, Rackspace shall be entitled to a credit in the amount of the property tax payments against any PILOT Payments made
pursuant to this Agreement for the benefit of such taxing units. 
 Section 3.15 Subject to meeting the requirements of such statute,
the City of Windcrest shall grant Rackspace and Windcrest EDC a 100% property tax abatement for at least ten (10) years under Tax Code Chapter 312, with a base year of 2007. 
 ARTICLE 4 
 EISENHAUER DEVELOPMENT 
 Section 4.1 The Developer or Windcrest EDC will acquire the fee title to the Eisenhauer Development Tract for the Eisenhauer Development utilizing
proceeds from a loan from the Developer and will hold it until such time as it is sold for development. The Parties understand that, as of the Effective Date and pursuant to existing contracts (the “Acquisition Contracts”), the Developer
and/or Windcrest EDC, as the case may be, have until November 19, 2007 plus three thirty-day extensions by which to acquire such title. The Parties anticipate and are acting in good faith reliance that the Windcrest EDC holding period of the
Eisenhauer Development Tract will be less than 24 months from the Effective Date. The Developer and Windcrest EDC hereby represent to the other Parties that each of the Acquisition Contracts is still in effect, that there are no defaults thereunder
known to either the Developer or Windcrest EDC, and that no further extensions (beyond the three thirty-day extensions) of the closing dates beyond November 19, 2007 under the Acquisition Contracts shall be agreed to without the prior written
consent of Rackspace, which consent shall not be unreasonably withheld, conditioned, or delayed. The Parties acknowledge that the development of certain portions of the Eisenhauer Development Tract may require additional incentives from the City of
Windcrest and/or the Windcrest EDC. 
 Section 4.2 The Developer and its successors and assigns will use its best efforts to develop the
Eisenhauer Development Tract into a Mixed Use Project designed to be integrated with Rackspace’s U.S. corporate headquarters located on the Leased Property. Contemporaneously with the execution of this Agreement, Windcrest EDC has entered into
restrictive covenants in a recordable form (in the form attached hereto as Exhibit “K”) prohibiting certain obnoxious or undesirable uses from being made of either the Eisenhauer Development Tract or the Leased Property. The restrictive
covenants shall be held in escrow by the Title Company until fee title to the first tract in the Eisenhauer Development Tract is acquired by Windcrest EDC, at which time the 

  

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restrictive covenants shall be released from escrow and recorded by the title company in the Official Public Records of Bexar County, Texas for the tracts
acquired, and re-recorded or amended subsequently to apply to all of the tracts acquired in the Eisenhauer Development Tract. 
 Section 4.3 The Developer and Windcrest EDC have entered into a development agreement governing the development of the Eisenhauer Development, a copy of which has been delivered to the other Parties. Developer will loan, on a
non-recourse basis, to Windcrest EDC sufficient funds to enable it to acquire title to and pay all carrying costs for the Eisenhauer Development Tract in accordance with the land acquisition contracts for the parcels that comprise the Eisenhauer
Development Tract. The Windcrest EDC will convey the Eisenhauer Development Tract back to the Developer at the time of development. (The parties to this Agreement, including, without limitation, the City, the County, and Developer, acknowledge and
agree that, without regard to the ownership of the Eisenhauer Development Tract at any given time, the property and sales taxes generated by the development of and business activity on the Eisenhauer Development Tract, as part of the Annexed Area
hereunder, are subject to payment to Rackspace pursuant to the City Economic Development Grant Agreement and the County Economic Development Grant Agreement described in Sections 3.11 and 3.12, above, respectively, as such payments may be limited by
the provisions thereof and hereof.) The ownership of the Eisenhauer Development Tract by the Windcrest EDC is only intended to eliminate the carrying cost of taxes until the land can be developed and is not anticipated to last longer than 24 months.
The development agreement will require the Developer and its successors and assigns to prepare a master plan for the Eisenhauer Development incorporating the live, work, and play concepts. The Developer will be obligated to use its best efforts to
develop the Eisenhauer Development as a live, work, and play Mixed Use Project designed to be integrated with Rackspace’s U.S. corporate headquarters located on the Leased Property. The Developer will construct at least five million dollars of
the public infrastructure required for the Eisenhauer Development and/or the Windcrest Development Site from the proceeds of the Developer Economic Development Grant Agreement subject to the escrow arrangement all as described below. 
 Section 4.4 Subject to the terms and conditions of this Agreement, including Section 3.11, the City of Windcrest will enter into the Developer
Economic Development Grant Agreement, pursuant to Section 380 of the Texas Local Government Code, with the Developer to enable the Developer to pay for or reimburse itself for the costs of constructing public infrastructure, public works or
public improvements, including the soft cost associated therewith, on or for the benefit of the Annexed Area, pursuant to the terms of such agreement (the “Authorized Infrastructure”). The City of Windcrest has set aside and will maintain
separately the amount of five million dollars from the amount received from Rackspace pursuant to Section 3.1 above. The five million dollars may be disbursed by the City of Windcrest only upon the occurrence of both (i) the full execution
and delivery of the Boundary Change Agreement, and (ii) Windcrest EDC’s acquisition of title to the Eisenhauer Development Tract, and then only as reimbursements for invoices paid in connection with the costs of the Authorized
Infrastructure; provided, however, that prior to satisfaction of the foregoing conditions (i) and (ii), amounts may be released from the five million dollars to reimburse Developer or the City of Windcrest, as appropriate, for the actual
expenses incurred with the firm of Duany Plater-Zyberk & Company in connection with planning the Eisenhauer Development. The five million dollars set aside by the City of Windcrest will be invested in eligible investments for the Windcrest
EDC as directed by the Developer, and all earnings will be added to the five million 

  

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dollars and will be made available to the Developer under the Developer Economic Development Grant Agreement; provided that the Developer Economic
Development Grant Agreement shall provide that such five million dollars plus earnings shall be retained by and available to the City of Windcrest, if necessary, to construct the Developer’s portion of Racker Road (i.e., Racker Road between the
Leased Property and Eisenhauer Road) if neither TxDOT nor the MPO construct Racker Road pursuant to Section 5.1, and provided further that if Developer defaults in its obligations under this Agreement, then the City of Windcrest, rather than
Developer, shall have the right to direct the investment of the five million dollars by the Windcrest EDC (and such funds shall continue to be held by the City of Windcrest pursuant to the terms of this Agreement). Notwithstanding any of the
foregoing to the contrary, the five million dollars may be released from the provisions of this Section 4.4 if the City of Windcrest has first received an irrevocable letter of credit payable to the City of Windcrest, in a form reasonably
acceptable to the City of Windcrest, issued by Frost Bank, Capital One, Wachovia National Bank, Bank of America, or another bank with at least nine billion dollars in assets, issued in an amount sufficient to complete the Developer’s portion of
Racker Road and the rest of the Authorized Infrastructure as certified to by the City of Windcrest’s engineer, and that may be drawn upon only to pay the costs of constructing the Authorized Infrastructure. In the event that both requirements
for the release of the five million dollars by the City (or the receipt of the irrevocable letter of credit) have not occurred by September 1, 2008, the City of Windcrest shall use such escrowed funds (a) to construct such of the
Authorized Infrastructure as may be undertaken with such funds (provided that the City of Windcrest shall consult with Rackspace as to which of the elements of the Authorized Infrastructure to construct) or, (b) if neither TxDOT nor the MPO
construct Racker Road pursuant to Section 5.1, then for the City of Windcrest to construct the Developer’s portion of Racker Road. Upon completion, all such Authorized Infrastructure will be conveyed or dedicated to the City of Windcrest.
The Eisenhauer Development Tract includes three parcels of land located along IH-35 south of the Leased Property containing the Conn’s building, the Texas Furniture building and the flea market building (collectively, the “IH-35
Pads”). Any failure of the Developer or the Windcrest EDC to acquire title to the IH-35 Pads, and any decision by Developer not to loan money for the acquisition of the IH-35 Pads, is not a default under this Agreement, but such failure to
acquire title to this portion of the Eisenhauer Development Tract by September 1, 2008, will result in the failure of condition (ii) in this Section 4.4 above. 
 Section 4.5 Additional tax incentives from the City of Windcrest and/or Windcrest EDC will be made available only if necessary to entice desired
components for a live, work, and play environment for Rackspace’s employees, as determined by such governmental entities subject to all of the terms and conditions of this Agreement with respect to grants made of property and sales taxes
generated by development on and use of the Annexed Area. 
 ARTICLE 5 
 RACKER ROAD CONSTRUCTION 
 Section 5.1 The Windsor Park Mall ring road will
be renamed Racker Road and will be extended from Walzem Road to Eisenhauer Road. The City of Windcrest will use its best efforts to cause TXDOT or the MPO to construct and improve Racker Road and dedicate it as a public street meeting the City of
Windcrest’s ordinances relating to roads, failing which the City of Windcrest 

  

 16 

 
shall fund and cause the completion of Racker Road. Racker Road will be designed to carry traffic sufficient to meet the Employment Commitment and will be
maintained by the City of Windcrest. Racker Road shall be completed and available for public use by no later than December 31,2009. 
 ARTICLE 6 
 WALZEM INTERCHANGE 
 Section 6.1 The City of Windcrest will use its best efforts to cause Walzem Road to be renamed Rackspace Boulevard/Walzem Road and for the signage to be changed on IH 35 at TXDOT’s expense and in a manner
that will not change the official mailing addresses located on Walzem Road. 
 Section 6.2 TXDOT has awarded Contract No. 05073203
to refinish the Interchange of JH 35 and Walzem Road in its Mission motif and to construct an exit ramp to the City of Windcrest and an entrance to IH 35 and Loop 410 as shown on Exhibit “H”. 
 Section 6.3 The City of Windcrest will use its best efforts to cause TXDOT to improve the frontage road by adding turning lanes onto Walzem Road as
a change order to Contract No. 05073203 to handle the anticipated traffic as a result of the Employment Commitment. 
 Section 6.4
The City of Windcrest will use its best efforts to cause TXDOT to install overhead signage on IH 35 denoting Racker Road as part of the Walzem Road signage. 
 ARTICLE 7 
 UTILITIES 
 Section 7.1 The Parties will use their best efforts to cause CPS Energy to underground all utilities along Walzem Road from IH 35 to the end of the
Leased Property within 30 months of the Effective Date, provided, however, that Rackspace and the Developer shall not be required to incur other than nominal expenses in the exercise of such best efforts. 
 Section 7.2 City of Windcrest will make available the maximum Community Infrastructure and Economic Development (“ClED”) funds available
for the utility undergrounding project and seek, if necessary, additional CIED funds from the CPS Energy Board of Directors. The Parties agree to assist the City of Windcrest in its efforts to obtain CEID funds, provided, however, that Rackspace and
the Developer shall not be required to incur other than nominal expenses for such assistance, and the City of San Antonio shall not be required to spend any of its CEID funds in the City of Windcrest. 
  

 17 

 ARTICLE 8 
 WALZEM ROAD 
 Section 8.1 The Parties will use their best efforts to cause TXDOT to reconfigure
the continuous turn lanes on Walzem Road that exist between IH 35 and the end of the Leased Property into a landscaped, irrigated raised median area with median breaks within 30 months of the Effective Date, provided, however, that Rackspace and the
Developer shall not be required to incur other than nominal expenses in the exercise of such best efforts. 
 Section 8.2 City of
Windcrest, Windcrest EDC, and the County will use their best efforts to obtain any matching funds to contribute toward the reconfiguration of the continuous turn lanes as described above. 
 ARTICLE 9 
 WINDCREST DEVELOPMENT 
 Section 9.1 Windcrest EDC, through funds provided by the Developer, or the Developer itself, will make reasonable efforts to acquire at least 23
acres of the land for the Windcrest Development Site to hold until such time as it is sold for development. If the Windcrest Development Site is acquired by either the Windcrest EDC or the Developer during the term of this Agreement, all of the
terms of this Agreement, including, without limitation, Sections 3.11 and 11.4, shall apply to such tract. Notwithstanding any language herein to the contrary, until such time, if ever, that the Windcrest Development Site is so acquired, the terms
of this Agreement, including, without limitation, the ability of certain parties to pay for infrastructure improvements on the Windcrest Development Site pursuant to Section 4.4, shall not apply to the Windcrest Development Site. 
 Section 9.2 If acquired by Windcrest EDC or the Developer, the Developer will use its best efforts to develop the Windcrest Development Site as
residential homes and a retail power center. 
 ARTICLE 10 
 BOUNDARY CHANGE AND TAX SPLITS 
 Section 10.1 As soon as reasonably
practicable following the date of execution of this Agreement, but in any event by no later than September 15,2007, a Boundary Change Agreement regarding the Annexed Area shall be entered into between the City of San Antonio and the City of
Windcrest pursuant to Section 43.035 of the Texas Local Government Code. The Boundary Change Agreement shall contain the specific terms under which the City of San Antonio shall agree to release the Annexed Area from its jurisdiction and allow
for the City of Windcrest to accept and annex the Annexed Area into the municipal limits of the City of Windcrest. 
  

 18 

 Section 10.2 As partial consideration to the City of San Antonio for entering into the Boundary
Change Agreement, the City of Windcrest and the Windcrest EDC hereby represent to the City of San Antonio and the other Parties that as of the Effective Date: 
  

	 	(a)	They have executed an agreement with Rackspace to locate at the Leased Property. 

  

	 	(b)	They have executed an agreement with the Developer to develop the Eisenhauer Development Tract. 

  

	 	(c)	They have the concurrence, with regard to the Boundary Change Agreement, of NEISD, Alamo Community College District, and the Bexar Appraisal District. 

 The City of San Antonio hereby represents to the other Parties that as of the Effective Date all of the foregoing consideration for entering into the Boundary Change
Agreement has been received. 
 Section 10.2.1 The City of Windcrest, the Windcrest EDC, and the City of San Antonio acknowledge that
while the City of San Antonio is relying upon the documentation presented under Section 10.2 (a), (b), and (c), the City of San Antonio is in no way warranting or guaranteeing the legal effectiveness of such documents. 
 Section 10.2.2 When, in the future, the City of Windcrest transitions to a full-time fire department with a minimum of 4 fire fighters on duty
24-hours a day, the City of Windcrest will at that time enter into an Automatic Response Agreement with the City of San Antonio on terms and conditions acceptable to the City of San Antonio and City of Windcrest. Execution of the Automatic Response
Agreement shall not be a condition to the current and continuing effectiveness of the Boundary Change Agreement. 
 Section 10.3 The
City of San Antonio is entering into the Boundary Change Agreement upon the representation that the City of San Antonio will receive not less than $137,968 annually (the amount of property taxes being paid no the Annexed Area at the time of
execution of this Agreement) for a period of 30 years. For a period of 30 years after the Effective Date, Rackspace and the Developer shall collectively pay to the City of San Antonio the amount of any shortfall of the actual amount paid to the City
of San Antonio in property and sales tax revenue or PILOT Payments in a given calendar year compared to $137,968, such amount to be prorated between Rackspace and the Developer based upon their respective percentage of ownership (which shall be
deemed to include any leasehold ownership), if any, of the area in the Annexed Area. The City of Windcrest shall give each of Rackspace and the Developer written notice of any amounts owed by them under this Section 10.3 by no later than
March 31 of each year (including for years for which no such amounts are owed), and Rackspace and the Developer shall each pay their respective share of such amount, if any, to the City of San Antonio by no later than June 15 of that year.
Any payments by Rackspace under this Section 10.3 shall be subject to reimbursement under Section 3.11. 
  

 19 

 Section 10.4 The Boundary Change Agreement
shall provide that the effective date of the change in the boundary line (the “Boundary Change Date”) for the Annexed Area shall be the thirtieth (30th) day after the later of the dates on which the City of San Antonio and the City of Windcrest approve the Boundary Change Agreement. The Boundary Change Agreement shall provide for the sharing of future tax
revenue on the Annexed Area for the next 30 years from the Boundary Change Date as follows: 
  

	 	(a)	The City of San Antonio and the City of Windcrest shall each receive 50% of the local sales taxes due to the City of windcrest and distributed by the State Comptroller for taxable
business activity conducted on the Annexed Area; provided, however, that the 50% of all such local sales taxes to be retained by the City of Windcrest under such agreement shall be subject to the terms of Section 3.11 of this Agreement,
including possible distribution to Rackspace as part of the City of windcrest’s Chapter 380 economic development grant to Rackspace. 

  

	 	(b)	For those years when the Leased Property, Real Property Improvements and Personal Property Improvements are exempt from property taxes under Section 4B(k) of the EDC Act, the
City of San Antonio and the City of Windcrest will each receive 50% of all property and sales taxes resulting from the Annexed Area. 

  

	 	(c)	For those years when the Leased Property, Real Property Improvements and Personal Property Improvements are exempt from property taxes under Section 4B(k) of the EDC Act and
Rackspace makes a PILOT Payment as may be required under this Agreement (whether made before or after the Exemption Period or under Sections 2.2 through 2.7 of this Agreement), the City of San Antonio and the City of Windcrest shall each receive 50%
of the city portion of the Rackspace PILOT Payment on the Leased Property determined at the City of Windcrest tax rate with the real and personal property valuation to be determined in Section 3.5. 

  

	 	(d)	In the event that the Windcrest EDC has or acquires the right to sell the Leased Property, and then sells the Leased Property, the City of San Antonio and City of Windcrest shall
each receive 50% of the profit from the sale of the Leased Property after the payment of all liens, encumbrances and claims against the Leased Property and all other unreimbursed expenses the Windcrest EDC has incurred regarding the Leased Property.

 Section 10.5 The City of Windcrest agrees that King Arthur and Ray Bon Streets will remain public streets in the
Annexed Area to provide access to the Camelot Subdivision from Eisenhauer Road, and that the speed limit for such streets shall remain 30 miles per hour unless the City of San Antonio and the City of Windcrest mutually agree otherwise. Windcrest EDC
agrees to consult with the City of San Antonio prior to taking any actions regarding the Walzem Road Redevelopment Project that would adversely affect the City of San Antonio’s interest in the Project, provided that no additional consultation
shall be required for the Windcrest EDC to take actions that the Windcrest EDC is directed or specifically authorized to take under this Agreement. 
  

 20 

 ARTICLE 11 
 SECURITY PROVISIONS 
 Section 11.1 Pursuant to the Boundary Change Agreement, the City of
Windcrest will annex the Annexed Area and such area will thereafter be served by the same fire and police services as serve the remainder of the City of Windcrest. 
 Section 11.2 An on-site police substation will be provided at or in the vicinity of the Leased Property by the City of Windcrest, if requested by and paid for by Rackspace. The City of windcrest will continue its
existing “mutual aid” agreement with the City of San Antonio. 
 Section 11.3 City of Windcrest police department will provide
routine patrols (at least 8 per 8 hour shift) for the perimeter of the buildings in the Leased Property. 
 Section 11.4 The cost
of the City of Windcrest’s municipal services in the Annexed Area are intended to be funded from one-half of the local sales taxes collected from the Annexed Area by the City of Windcrest as described in Section 10.4 above. For purposes of
this Agreement, the City of Windcrest estimates that the cost of providing all municipal services to the Annexed Area (including unreimbursed costs of the City relating to additional police and fire costs and city staff overhead, including for
assistance with permits and platting and with tax calculations and payments to the other taxing authorities) following annexation thereof shall be $315,000 per year (the “Municipal Services Cost Cap”). For the first three (3) years
after the Effective Date, in the event that the Leased Property and the Mall Lease are exempt from property taxes under Section 4B(k) of the EDC Act and to the extent that one-half of the local sales taxes generated by taxable business activity
on the Annexed Area and the Windcrest Development Site that is collected and retained by the City of Windcrest pursuant to Section 10.4 above (the “Applicable Sales Tax Revenue”) is insufficient to pay for the City of Windcrest’s
costs of providing municipal services to the Annexed Area up to the Municipal Services Cost Cap, Rackspace and the Developer (and/or their successors) each (severally and not jointly) agree to contribute to the City of Windcrest one-half of the
difference between the Municipal Services Cost Cap and the Applicable Sales Tax Revenue. To the extent that the Leased Property and the Mall Lease are not exempt from taxation under Section 4B(k) of the EDC Act, the City of Windcrest may retain
the difference between the Municipal Services Cost Cap and the Applicable Sales Tax Revenue from the payment to be made to Rackspace under the City Economic Development Grant Agreement pursuant to Section 3.11 above. 
  

 21 

 ARTICLE 12 
 BOND FINANCING 
 Section 12.1 If Rackspace requests that the City of windcrest issues bonds, any
such bonds shall: (a) be payable from lease payments on the Mall Lease received by the Windcrest EDC; (b) not be a liability of City of Windcrest, the City of San Antonio or the County and no general fund, property taxes or sales taxes
will be pledged; and (c) be issued solely on the credit of Rackspace. 
 Section 12.2 The Windcrest EDC will subordinate its fee
interest in the Leased Property to the bond holders, provided that upon any foreclosure or deed in lieu of foreclosure, the Leased Property will be subject to property taxes and the recapture provisions of Sections 2.2 through 2.6 of this Agreement
or the City Economic Development Grant Agreement or the County Economic Development Grant Agreement, as applicable, continue to apply to Rackspace after the foreclosure or deed in lieu of foreclosure, and provided further that under the
subordination agreement, the City of Windcrest will be given a 90-day notice and cure period to pay the outstanding debt and to maintain ownership of the Leased Property. 
 ARTICLE 13 
 MISCELLANEOUS 
 Section 13.1 Conditions Precedent. This Agreement shall be contingent upon (i) the approval of this Agreement by the Board of Directors
of Rackspace, (ii) the commitment by Rackspace to locate its U.S. corporate headquarters on the Leased Property, and (iii) the execution of the Mall Lease. Such contingencies shall be met on or before August 3, 2007. If such
conditions precedent are not fulfilled on or before August 3, 2007, then this Agreement shall terminate and the Parties shall have no further obligations hereunder. Upon request of one of the Parties, Rackspace will notify such Parties whether,
at the time of such notification, the foregoing contingencies have been satisfied. 
 Section 13.2 Counterparts. This Agreement
may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. 
 Section 13.3 Governing Law. The governing law of this Agreement shall be the law of the State of Texas, without giving effect to any
choice-of-Iaw standards that may require the application of the laws of another jurisdiction. 
 Section 13.4 Venue. Venue for
any litigation under this Agreement shall be in Bexar County, Texas. 
 Section 13.5 Severability. In case any one or more of the
provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect and for any reason whatsoever, the validity, legality and enforceability of the remaining provisions shall not in any way be affected 

  

 22 

 
or impaired thereby. In the event any such provision is held to be invalid, illegal or unenforceable, the parties hereto shall make their best efforts to
agree on a provision in substitution for such invalid, illegal or unenforceable provision that is as near in economic benefit as possible to the provision found to be invalid, illegal or unenforceable. 
 Section 13.6 Notices. All communications and notices expressly provided herein shall be sent, by registered first class mail, postage
prepaid, by a nationally recognized overnight courier for delivery on the following business day or by facsimile (with such facsimile to be confirmed promptly in writing sent by mail or overnight courier as aforesaid), as follows, unless and until
changed as described below: 
  

			
	County of Bexar, Texas:	  	County Judge Nelson W. Wolff
		  	Bexar County Courthouse
		  	100 Dolorosa, Suite 120
		  	San Antonio, Texas 78205
		  	Fax: (210) 335-2926
		
	With a copy to:	  	Ms. Susan D. Reed
		  	District Attorney
		  	Justice Center, 5th Floor
		  	300 Dolorosa
		  	San Antonio, Texas 78205
		  	Fax: (210) 335-2151
		
	City of San Antonio, Texas:	  	Mayor Phil Hardberger
		  	City Hall Office
		  	P.O. Box 839966
		  	San Antonio, Texas 78283-3966
		  	Fax: (210)207-4168
		
	With a copy to:	  	Ms. Sheryl L. Sculley
		  	San Antonio City Manager
		  	City Hall Office
		  	P.O. Box 839966
		  	San Antonio, Texas 78283-3966
		  	Fax: (210) 207-4217
		
	With a copy to:	  	Mr. Michael Bernard
		  	City Attorney
		  	100 Military Plaza
		  	San Antonio, Texas 78205
		  	Fax: (210) 207-4004

  

 23 

			
		
	City of Windcrest, Texas:	  	Mayor Jack Leonhardt
		  	City Hall
		  	8601 Midcrown
		  	Windcrest, Texas 782239
		  	Fax: (210) 655-8776
		
	With a copy to:	  	Mr. Ronnie Cain
		  	City Administrator
		  	8601 Midcrown
		  	Windcrest, Texas 782239
		  	Fax: (210) 655-8776
		
	With a copy to:	  	Mr. James P. Plummer
		  	Fulbright & Jaworski L.L.P.
		  	300 Convent Street, Suite 2200
		  	San Antonio, Texas 78205
		  	Fax: (210) 270-7205
		
	Windcrest Economic Development Corporation:	  	Mr. Ray Watson
		  	Director of Economic Development
		  	8601 Midcrown
		  	Windcrest, Texas 782239
		  	Fax: (210) 655-8776
		
	With a copy to:	  	Mr. James P. Plummer
		  	Fulbright & Jaworski L.L.P.
		  	300 Convent Street, Suite 2200
		  	San Antonio, Texas 78205
		  	Fax: (210) 270-7205
		
	Windcrest Economic Development Company, LLC:	  	Mr. Jeremy A. Hebert
		  	Becker & Associates, APLC
		  	910 Harding Street
		  	Layfayette, LA 70503
		  	Fax: (337) 235-1748
		
	Rackspace US, Inc.:	  	Mr. Alan Schoenbaum
		  	General Counsel
		  	9725 Datapoint Drive, Suite 100
		  	San Antonio, Texas 78229
		  	Fax: (210) 447-4045

  

 24 

			
		
	With a copy to:	  	Mr. Randy Smith
		  	Manager of Real Estate Services
		  	9725 Datapoint Drive, Suite 100
		  	San Antonio, Texas 78229
		  	Fax: (210) 447-4045
		
	With a copy to:	  	Mr. Stephen L. Golden
		  	Drenner & Golden Stuart Wolf, L.L.P.
		  	300 Convent Street, Suite 2650
		  	San Antonio, Texas 78205
		  	Fax: (210) 745-3737

 However, if a recipient listed above provides written notice to all other recipients, by
registered or certified mail, of a change in their address or contact information, that information (and any subsequent changes of which the recipient gives such notice) controls. 
 Section 13.7 Cost and Expenses. Each Party agrees to pay its own costs incurred in connection with the project proposal, including
attorneys’ fees and all costs and expenses incurred in connection with the preparation of any studies or reports, surveys or approvals, this Agreement or otherwise, except Rackspace agrees to pay the attorneys’ fees for the Windcrest EDC
and City of Windcrest in drafting this Agreement. 
 Section 13.8 Press Releases. The Parties agree to cooperate fully to
coordinate with each other and the State in connection with all press releases and publications concerning the Project. 
 Section 13.9
Assignment. This Agreement is not assignable without consent of the City of Windcrest except to a Related Organization. 
 Section 13.10 Further Actions; Equivalent Incentives. In the event that provisions of the Constitution and laws of the State of Texas limit the ability of a Party to perform its functions hereunder in any way, then such Party
(and, if necessary, other applicable or appropriate Parties, without additional cost or liability to such other Parties that is not offset by new and additional sources of revenue or funds that arise in connection with such limitation) shall work
with Rackspace to identify and provide Rackspace with a substitute incentive of equivalent economic value, and to the extent necessary, such Parties will make a good faith effort to seek and obtain appropriate legislation or other appropriative
action to the extent necessary to allow performance hereunder or with respect to a substitute incentive of equivalent economic value. 
 Section 13.1 1 Further Assurances. The Parties agree to do all things and take all actions required, consistent with and subject to this Agreement, to establish the Project, including, without limitation, the obtaining,
negotiation, execution and delivery of all necessary or desirable agreements, filings, consents, authorizations, approvals, licenses or deeds. 
  

 25 

 Section 13.12 Section Titles and Headings. The Section titles and headings are for
convenience only and do not define, modify or limit any of the terms and provisions hereof. 
 Section 13.13 Survival of Representations
and Warranties. The representations, warranties and covenants made by each of the Parties hereto and contained herein shall survive the performance of any obligations to which such representations, warranties and covenants relate. 
 Section 13.14 Term of Agreement. The term of this Agreement shall commence on the Effective Date and continue in effect through the earlier
to occur of the date upon which Rackspace, a Related Organization, or an approved assignee, shall cease to operate the Project or the date which is 31 years after the Effective Date. 
 Section 13.15 Binding Effect. This Agreement and all terms, provisions and obligations set forth herein shall be binding upon and shall inure
to the benefit of the Parties and their successors and assigns and all other state agencies and any other agencies, departments, divisions, governmental entities, public corporations and other entities which shall be successors to each of the
Parties or which shall succeed to or become obligated to perform or become bound by any of the covenants, agreements or obligations hereunder of each of the Parties which are parties hereto. 
 Section 13.16 Cooperation in Event of Dispute. In the event of a dispute concerning this Agreement or the Parties’ obligations
hereunder, the Parties shall endeavor in good faith to settle the dispute through negotiation. If the dispute cannot be resolved through negotiation, or another mutually agreeable dispute resolution process, the Parties agree to submit the matter in
dispute to mediation. Written notice of the intent to submit a matter to mediation shall be given by the party requesting the same. Only one mediator (selected jointly by the Parties to the dispute) shall be used to mediate the outcome. Such
mediation shall be held in San Antonio, Texas or if the parties agree upon another location, that other location. 
 Section 13.17
Recitals. The Recitals above are hereby incorporated into this Agreement for any and all purposes. 
 Section 13.18
Merger. This document constitutes the final entire agreement between the Parties and supersedes any and all oral or written agreements relating to the subject matter of this Agreement, except for the other agreements expressly contemplated to
be entered into under this Agreement. 
 Section 13.19 RACKSPACE COVENANTS AND AGREES TO FULLY INDEMNIFY AND HOLD HARMLESS THE CITY OF
WINDCREST, THE CITY OF SAN ANTONIO AND BEXAR COUNTY (THE “GOVERNMENT ENTITIES”) AND THE ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS, VOLUNTEERS AND REPRESENTATIVES OF THE GOVERNMENT ENTITIES, INDIVIDUALLY OR COLLECTIVELY, FROM AND
AGAINST ANY AND ALL COSTS, CLAIMS, LIENS, DAMAGES, LOSSES, EXPENSES, FEES, FINES, PENALTIES, PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF ACTION, LIABILITY AND SUITS OF ANY KIND AND NATURE, INCLUDING BUT NOT LIMITED TO, PERSONAL OR 

  

 26 

 
BODILY INJURY, DEATH AND PROPERTY DAMAGE, MADE UPON THE GOVERNMENT ENTITIES, DIRECTLY OR INDIRECTLY ARISING OUT OF, RESULTING FROM OR RELATED TO
RACKSPACE’S ACTIVITIES UNDER THIS AGREEMENT, INCLUDING ANY ACTS OR OMISSIONS OF RACKSPACE, ANY AGENT, OFFICER, DIRECTOR, REPRESENTATIVE, EMPLOYEE, CONSULTANT, CONTRACTOR OR SUBCONTRACTOR OF RACKSPACE, AND THEIR RESPECTIVE OFFICERS, AGENTS,
EMPLOYEES. DIRECTORS AND REPRESENTATIVES WHILE IN THE EXERCISE OR PERFORMANCE OF THE RIGHTS OR DUTIES UNDER THIS AGREEMENT, ALL WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE GOVERNMENT ENTITIES UNDER TEXAS LAW AND WITHOUT
WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW, PROVIDED, HOWEVER, THAT THIS INDEMNITY IS NOT INTENDED TO EFFECT THE EXEMPTIONS, GRANTS AND OTHER ECONOMIC INCENTIVES GIVEN TO OR FOR THE BENEFIT OF RACKSPACE HEREUNDER, EVEN IF THE SAME COME AT A
COST, LOSS, OR EXPENSE TO ANY OF THE GOVERNMENT ENTITIES. RACKSPACE SHALL PROMPTLY ADVISE THE GOVERNMENT ENTITIES IN WRITING OF ANY CLAIM OR DEMAND AGAINST THE GOVERNMENT ENTITIES OR RACKSPACE KNOWN TO RACKSPACE RELATED TO OR ARISING OUT OF
RACKSPACE’S ACTIVITIES UNDER THIS AGREEMENT AND SHALL SEE TO THE INVESTIGATION AND DEFENSE OF SUCH CLAIM OR DEMAND AT RACKSPACE‘S COST. THE GOVERNMENT ENTITIES SHALL HAVE THE RIGHT, AT ITS OPTION AND AT ITS OWN EXPENSE, TO PARTICIPATE IN
SUCH DEFENSE WITHOUT RELIEVING RACKSPACE OF ANY OF ITS OBLIGATIONS UNDER THIS PARAGRAPH. 
 Section 13.20 RACKSPACE FURTHER AGREES TO
DEFEND, AT ITS OWN EXPENSE AND ON BEHALF OF THE GOVERNMENT ENTITIES AND IN THE NAME OF THE GOVERNMENT ENTITIES, ANY CLAIM OR LITIGATION BROUGHT AGAINST THE GOVERNMENT ENTITIES AND ITS ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS AND
REPRESENTATIVES, IN CONNECTION WITH ANY SUCH INJURY, DEATH, OR DAMAGE FOR WHICH THIS INDEMNITY SHALL APPLY, AS SET FORTH ABOVE. RACKSPACE’S OBLIGATIONS UNDER THIS SUBSECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 
 Section 13.21 DEVELOPER COVENANTS AND AGREES TO FULLY INDEMNIFY AND HOLD HARMLESS THE CITY OF WINDCREST, THE CITY OF SAN ANTONIO AND BEXAR COUNTY
(THE “GOVERNMENT ENTITIES”) AND THE ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS, VOLUNTEERS AND REPRESENTATIVES OF THE GOVERNMENT ENTITIES, INDIVIDUALLY OR COLLECTIVELY, FROM AND AGAINST ANY AND ALL COSTS, CLAIMS, LIENS, DAMAGES,
LOSSES, EXPENSES, FEES, FINES, PENALTIES, PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF ACTION, LIABILITY AND SUITS OF ANY KIND AND NATURE, INCLUDING BUT NOT LIMITED TO, PERSONAL OR BODILY INJURY, DEATH AND PROPERTY DAMAGE, MADE UPON THE GOVERNMENT
ENTITIES. DIRECTLY OR INDIRECTLY ARISING OUT OF, RESULTING FROM OR RELATED TO DEVELOPER’S ACTIVITIES UNDER THIS AGREEMENT, INCLUDING ANY ACTS OR OMISSIONS OF DEVELOPER, ANY AGENT, OFFICER, DIRECTOR, REPRESENTATIVE, EMPLOYEE, CONSULTANT,
CONTRACTOR OR SUBCONTRACTOR OF DEVELOPER, AND THEIR RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, 

  

 27 

 
DIRECTORS AND REPRESENTATIVES WHILE IN THE EXERCISE OR PERFORMANCE OF THE RIGHTS OR DUTIES UNDER THIS AGREEMENT, ALL WITHOUT, HOWEVER, WAIVING ANY
GOVERNMENTAL IMMUNITY AVAILABLE TO THE GOVERNMENT ENTITIES UNDER TEXAS LAW AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW, PROVIDED, HOWEVER, THAT THIS INDEMNITY IS NOT INTENDED TO EFFECT THE EXEMPTIONS, GRANTS AND OTHER ECONOMIC
INCENTIVES GIVEN TO OR FOR THE BENEFIT OF RACKSPACE HEREUNDER, EVEN IF THE SAME COME AT A COST, LOSS, OR EXPENSE TO ANY OF THE GOVERNMENT ENTITIES. DEVELOPER SHALL PROMPTLY ADVISE THE GOVERNMENT ENTITIES IN WRITING OF ANY CLAIM OR DEMAND AGAINST THE
GOVERNMENT ENTITIES OR DEVELOPER KNOWN TO DEVELOPER RELATED TO OR ARISING OUT OF DEVELOPER’S ACTIVITIES UNDER THIS AGREEMENT AND SHALL SEE TO THE INVESTIGATION AND DEFENSE OF SUCH CLAIM OR DEMAND AT DEVELOPER’S COST. THE GOVERNMENT
ENTITIES SHALL HAVE THE RIGHT, AT ITS OPTION AND AT ITS OWN EXPENSE, TO PARTICIPATE IN SUCH DEFENSE WITHOUT RELIEVING DEVELOPER OF ANY OF ITS OBLIGATIONS UNDER THIS PARAGRAPH. 
 Section 13.22 DEVELOPER FURTHER AGREES TO DEFEND, AT ITS OWN EXPENSE AND ON BEHALF OF THE GOVERNMENT ENTITIES AND IN THE NAME OF THE GOVERNMENT
ENTITIES, ANY CLAIM OR LITIGATION BROUGHT AGAINST THE GOVERNMENT ENTITIES AND ITS ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS AND REPRESENTATIVES, IN CONNECTION WITH ANY SUCH INJURY, DEATH, OR DAMAGE FOR WHICH THIS INDEMNITY SHALL APPLY, AS
SET FORTH ABOVE. DEVELOPER’S OBLIGATIONS UNDER THIS SUBSECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 
 Section 13.23
Attorney Fees and Expenses. In the event that a Party (the “Defaulting Party”) should default under any of the provisions of this Agreement and another Party (the “Nondefaulting Party”) should employ attorneys or incur
other expenses for the collection of the payments due under this Agreement or the enforcement of performance or observance of any obligation or agreement on the part of the Defaulting Party, the Defaulting Party agrees to pay to the Nondefaulting
Party reasonable fees of such attorneys and such other expenses so incurred by the Nondefaulting Party. 
 Section 13.24 Release of
Existing Claims. Rackspace and the Developer hereby release any and all presently existing claims of every kind or character which Rackspace or the Developer has or may have under or pursuant to this Agreement against the Government Entities,
their appointed or elected officials, members, agents, employees, officers, directors and representatives, individually and collectively. 
 [Signatures and Acknowledgments Begin on Following Page] 
  

 28 

 WHEREFORE, the Parties hereto have executed this Agreement and, as of the Effective Date, have agreed to
the terms and conditions stated above that apply to them. 
 COUNTY OF BEXAR 
  

			
	By:	 	 /s/ NELSON W. WOLFF

		 	NELSON W. WOLFF,
		 	Country Judge
	
	ATTEST:
	
	 /s/ GERARD RICKHOFF

	GERARD RICKHOFF
	County Clerk
	
	APPROVED AS TO LEGAL FORM:
	
	SUSAN D. REED
	Criminal District Attorney
	Bexar County, Texas
		
	By:	 	 /s/ LARRY ROBERSON

		 	LARRY ROBERSON,
		 	Assistant Criminal District Attorney
		 	Civil Section

  

 29 

	
	APPROVED AS TO FINANCIAL CONTENT:
	
	 /s/ TOMMY J. TOMPKINS

	TOMMY J. TOMPKINS,
	County Auditor
	
	 /s/ DAVID SMITH

	DAVID SMITH,
	Executive Director of Planning/Budget Officer Planning And Resource Management Dept.
	
	APPROVED:
	
	 /s/ DAVID MARQUEZ

	DAVID MARQUEZ,
	Executive Director of Economic Development

  

 30 

							
	 	  	 	  	CITY OF SAN ANTONIO, TEXAS
				
		  		  	By:	  	 /s/ Sheryl L. Sculley

		  		  	Name:	  	Sheryl L. Sculley
		  		  	Title:	  	City Manager
			
		  	 

	  	
		  	  	ATTESTED TO BY:
		  	  	
			
		  		  	 /s/ Leticia Vacek

		  		  	Leticia Vacek, City Clerk
				
	APPROVED AS TO FORM:	  		  		  	
				
	 /s/ Michael D. Bernard
	  		  		  	
	Michael D. Bernard, City Attorney	  		  		  	
	City of San Antonio	  		  		  	

  

 31 

							
	 	 	 	 	CITY OF WINDCREST, TEXAS
				
		 		 	By:	 	 /s/ Jack Leonhardt

		 		 	Name:	 	Jack Leonhardt
		 		 	Title:	 	Mayor
				
		 		 	By:	 	 /s/ F. Ronnie Cain

		 		 	Name:	 	F. Ronnie Cain
		 		 	Title:	 	City Administrator
				
	APPROVED AS TO FORM:	 		 		 	
				
	 /s/ James P. Plummer
	 		 		 	
	James P. Plummer, Special Counsel	 		 		 	
	City of Windcrest	 		 		 	

  

 32 

			
	WINDCREST ECONOMIC DEVELOPMENT CORPORATION
		
	By:	 	 /s/ F. Ronnie Cain

	Name:	 	F. Ronnie Cain
	Title:	 	Duly Authorized Representative

  

 33 

			
	 RACKSPACE US, INC.

		
	By:	 	 /s/ Graham Weston

	Name:	 	Graham Weston
	Title:	 	Executive Chairman

  

 34 

 EXHIBIT A 
 Leased Property 
 Legal Description 
  

 A-1 

 EXHIBIT A 
 BEGINNING at a 3/4” Iron rod found in the east line of Interstate Highway (IH) 35/ Loop 410 (R.O.W. Varies), also being the southwest corner of said Lot 44, and being the northwest corner of Lot 36, of the Replat of Toys “R”
Us Subdivision recorded in Volume 9520, Page 187, (D.P.R.B.C.T.), for the southwest corner and POINT OF BEGINNING hereof, from which a 4” Texas Department of Transportation (TXDOT) brass disk monument found in the east line of said IH 35/ Loop
410 at station 1882+00 and offset right 213.20’, bears S09°56’l8”W, a distance of 454.36 feet; 
 THENCE, with the east line of said IH
35/ Loop 410, same being the west line of said Lot 44, N09°56’18”E, a distance of 437.50 feet to 1/2-inch iron rod found for an angle point hereof, same being the southwest corner of Lot 45 of said Replat Establishing Simon Apple
Garden; 
 THENCE, leaving the east line of said IH 35/ Loop 410, same being the west line of said Lot 44, with the common line between said Lots 44 and 45,
the following five (5) courses and distances: 
  

	 	1)	S80°21’18”E, a distance of 217.15 feet to a PK nail found for an angle point hereof, same being the southeast corner of said Lot 45, and a southeast corner of said Lot
44; 

  

	 	2)	N10°05’00”E, a distance of 147.36 feet to a 1/2-inch iron rod found for an angle point hereof, same being a northeast corner for said Lot 45, also being an angle point
for said Lot 44; 

  

	 	3)	N80°16’37”W, a distance of 22.47 feet to a 1/2-inch iron rod found for an angle point hereof, same being an angle point for said Lots 44 and 45;

  

	 	4)	N09°43’58”E, a distance of 9.05 feet to a 1/2-inch iron rod found for an angle point hereof, same being a northeast corner for said Lot 45, also being an angle point
for said Lot 44; 

  

	 	5)	N80°08’26”W, a distance of 195.02 feet to a 1/2-inch iron rod found for an angle point hereof, same being the northwest corner of said Lot 45, also being an angle
point of said Lot 44, same being a point in the east line of said IH 35/ Loop 410; 

 THENCE, with the east line of said IH 35/ Loop 410, same
being the west line of said Lot 44, N09°56’18”E, a distance of 64.23 feet to a 1/2-inch iron rod with “Vickery” cap found for an angle point hereof, same being the southwest corner of Lot 46 of said Replat Establishing Simon
Apple Garden, also being an angle point for said Lot 44; 

 THENCE, leaving the east line of said IH35/ Loop 410, same being the west line of said Lot 44, with the common line
between said Lots 44 and 46, S80°07’28”E, a distance of 225.13 feet to a 1/2-inch iron found for an angle point hereof, same being the southeast corner of said Lot 46, also being an angle point for said Lot 44; 
 THENCE, continuing with the common line between said Lots 44 and 46, N09°56’34”E, a distance of 230.05 feet a 1/2-inch iron rod found for an angle point
hereof, same being the northeast corner of said Lot 46, same being an angle point for said Lot 44; 
 THENCE, crossing through said Lot 24,
S80°02’51”E, a distance 37.96 feet to a PK nail found for an angle point hereof, same being an angle point for said 11.5384 acre tract, also being an angle point for said Lot 44; 
 THENCE, continuing through said Lot 24, with a north line of said 11.5384 acre tract, N89°45’32”E, a distance of 103.11 feet to a PK nail found for an
angle point hereof, same being an angle point of said 11.5384 acre tract, said point lies within said Lot 24; 
 THENCE, continuing through said Lot 24, with
a west line of said 11.5384 acre tract, N00°36’38”E, a distance of 327.41 feet to a PK nail found for an angle point hereof, same being an angle point of said 11.5384 acre tract, said point lies within said Lot 24; 
 THENCE, continuing through said Lot 24, with a south line of said 11.5384 acre tract, N80°48’25”W, a distance of 311.55 feet to a PK nail found for an
angle point hereof, same being an angle point of said 11.5384 acre tract, and being a point in the west line of said Lot 24, also being a point in the east line of said IH35/ Loop 410; 
 THENCE, with the west line of said Lot 24, same being the east line of said IH35/ Loop 410, N09°56’18”E, a distance of 54.60 feet to a 1/2-inch iron rod with “Doucet & Assoc,” cap set
for a northwest corner hereof, same being a northwest corner of said Lot 24, and the southwest corner of Lot 22 of the Simon Subdivision recorded in Volume 7300, Page 69, (D.P.R.B.C.T.); 
 THENCE, with the south line of said Lot 22, and the north line of said Lot 24, N85°26’50”E, a distance of 381.62 feet to a PK nail with “Brown” shiner found for a point of curvature (P.C.)
hereof, same being a P.C. for said Lot 22, also being a northwest corner and P.C. of said Lot 25; 
 THENCE, continuing with the southeast line of said Lot
22, and with the northwest line of said Lot 25, along a curve to the left, whose radius is 159.75 feet, whose delta is 85°23’33”, at an arc length of 238.09 feet, and overall chord which bears N42°47’06”E, a distance
216.66 feet to a 1/2-inch iron rod with “Vickery” aluminum cap found for a point of tangency (P.T.) hereof, same being a P.T. for said Lots 22 and 25; 

 THENCE, continuing with the west line of said Lot 22, and the east line of said Lot 25, N00°05’45”E, a
distance of 249.80 to a 1/2-inch iron rod with “Vickery” cap found for a northwest corner hereof, same being a northwest corner of said Lot 25, and a northeast corner of said Lot 22, same being a point in the south line of Walzem Road/
Farm to Market (FM) 1976 (R.O.W. Varies); 
 THENCE, with the south line of said Walzem Road/ FM 1976, and the north line of said Lot 25,
N89°47’19”E, a distance of 112.39 feet to a Mag nail with “Brown” shiner found for an angle point hereof, same being an angle point for said Lot 25, also being an angle point for said Walzem Road/ FM 1976, from which a
4” Texas Department of Transportation (TXDOT) brass disk monument found bears, S76°06’59”W, a distance of 1.29 feet; 
 THENCE, continuing
with the south line of said Walzem Road/ FM 1976, and the north line of said Lot 25, S88°27’18”E, a distance of 120.88 feet to a Mag nail with “Doucet” washer set for an angle point hereof; 
 THENCE, leaving the south line of said Walzem Road/ FM 1976, same being the north line of said Lot 25, passing through said Lot 25 the next four (4) courses and
distances: 
  

	 	1)	S00°17’20”E, distance of 268.51 feet to a Mag nail with “Doucet” washer set for an angle point hereof; 

  

	 	2)	Along a curve to the right, whose radius is 921.48 feet, whose delta is 01°33’47””, whose arc length is 25.14 feet, and whose chord bears
N77°14’29”E, a distance of 25.14 feet to a Mag nail with “Doucet” washer set for a point of reverse curvature (P.RC.) hereof; 

  

	 	3)	Along a curve to the left, whose radius is 750.00 feet, whose delta is 09°26’18”, whose arc length is 123.55 feet, and whose chord bears N73°18’14”E, a
distance of 123.41 feet to a Mag nail with “Doucet” washer set for a point of compound curvature (P.C.C.) hereof; 

  

	 	4)	Along a curve to the left, whose radius is 2010.40 feet, whose delta is 03°54’26”, whose arc length is 137.10’ feet, and whose chord bears
N66°37’52”E, a distance of 137.07 feet to a Mag nail with “Doucet” washer set for a point of compound curvature (P.C.C.) hereof; 

 THENCE, continuing through said Lot 25, and in part through said Lot 44, along a curve to the left, whose radius is
500.00 feet, whose delta is 10°19’44”, at an arc length of 14.77 feet passing the common line between said Lots 25 and 44, for an overall arc length of 90.14 feet, and whose overall chord bears N59°30’47”E, a distance of
90 02 feet to a Mag nail with “Doucet” washer set for a P.R.C. hereof, said point lies within said Lot 44; 
 THENCE, continuing in part through
said Lot 44, and through said Lot 38, along a curve to the right, whose radius is 500.00 feet, whose delta is 11°52’41”, at an arc length of 3.44 feet passing the common line between said Lots 44 and 38, for an overall arc length of
103.66 feet, and whose overall chord bears N60°17’16”E, a distance of 103.47 feet to a Mag nail with “Doucet” washer set for a P.T. hereof, said point lies in said Lot 38; 
 THENCE, continuing through said Lot 38, N16°51’51”W, a distance of 69.10 feet to a PK nail with “Brown” shiner found for an angle point hereof,
same being a point in the south line of said Walzem Road/ FM 1976, also being the northern most northwest corner of said Lot 38, and the northeast corner of said Lot 44; 
 THENCE, with the south line of said Walzem Road/ FM 1976, same being the north line of said Lot 38, N89°44’36”E, a distance of 592.04 feet to a 1/2-inch iron rod with “Vickery” aluminum cap
found for an angle point hereof, same being an angle point in the south line of said Walzem Road/ FM 1976, and an angle point in the north line of said Lot 38; 
 THENCE, continuing with the south line of said Walzem Road/ FM 1976, same being the north line of said Lot 38, N88°28’52”E, a distance of 17.99 feet to a “X” cut in concrete for the northern most northeast corner
hereof, same being the northern most northeast corner of said Lot 38, also being the northwest corner of Lot 39 of said Replat of Subdivision Plat of Simon Subdivision; 
 THENCE, leaving the south line of said Walzem Road/ FM 1976, with the common line between said Lots 38 and 39 the following four (4) courses and distances: 
  

	 	1)	S00°16’05”E, a distance of 151.24 feet to a 1/2-inch iron rod with “Vickery” aluminum cap found for an angle point hereof, same being the southwest corner of
said Lot 39, and an angle point for said Lot 38; 

  

	 	2)	N89°45’07”E, a distance of 131 79 feet to a 1/2-inch iron rod found for an angle point hereof, same being a southeast corner of said Lot 39, also being an angle point
for said Lot 38; 

  

	 	3)	N00°14’38”W, a distance of 18.06 feet to a 1/2-inch iron rod with “Vickery” cap found for an angle point hereof, same being an angle point for said Lots 38
and 39; 

	 	4)	N89°37’31”E, a distance of 27.57 feet to a PK nail found for the eastern most northeast corner hereof, same being the eastern most southeast corner for said Lot 39,
and the eastern most northeast corner of said Lot 38, also being a point in the west line of Lot 2, Block 1 of the Replat and Subdivision Plat Establishing Roosevelt High School Subdivision recorded in Volume 9566, Page 132, (D.P.R.B.C.T.);

 THENCE, in part with the east line of Lot 38 and in part with the east line of Lot 37, both of said Replat of Simon Subdivision, and
with the westline of Lot 2 of said Roosevelt High School, S00°13’42”E, at a distance of 685.73 feet passing the northeast corner of Lot 37, and being the southeast corner of Lot 38, for a total distance of 1379.71 feet to a PK Nail
with “Brown” washer found for an interior ell corner hereof, said point is also an interior ell corner of said Lot 37, and being the southwest corner of said Lot 2; 
 THENCE, with a north line of said Lot 37, and in part with the south line of said Lot 2, N89°35’15”E, a distance of 63.93 feet to a PK with Shiner found for an exterior ell corner hereof, said
point is also an exterior ell corner of said Lot 37; 
 THENCE, in part with an east line of said Lot 37, and in part with an east line of Lot
44 of said Replat Establishing Simon Apple Garden, S00°31’25”E, a distance of 145.30 feet to a 1/2” iron rod found for a southeast corner hereof, said point is also a southeast corner of said Lot 44 and being the northwest corner
of Lot 12, Block 10 of Camelot Subdivision Unit 7, recorded in Volume 6500, Page 144 (D.P.R.B.C.T.), and being a point in the east line of a 40’ City Public Service Board Easement as shown on said plat; 
 THENCE, with the south line of said Lot 44, and the north line of said 40’ City Service Board Easement, S89°43’01”W, a distance of 39.73 feet
to a 1/2” iron rod found for an interior ell corner hereof, said point is also a point on the west line of said 40’ City Public Service Board Easement, and being an interior ell corner of said Lot 44; 
 THENCE, with the west line of said 40’ City Public Service Board Easement, and a west line of said Lot 44, S00°56’32”W, a distance of 15.88
feet to a 1/2” iron rod found for an exterior ell corner hereof, said point is also an exterior ell corner of said Lot 44, and being the northeast corner of Lot 13 of said Camelot Subdivision; 

 THENCE, in part with the north line of lots 13-26, Block “D” of said Camelot Subdivision, and in part with the
north line of Lot 9, Block “B”, of Camelot Subdivision Unit 5A, recorded in Volume 6500, Page 16 (D.P.R.B.C.T.), and in part with the north line of Lot 49 of Windsor Square Wal-Mart III recorded in Volume 9560, Page 80 (D.P.R.B.C.T.), and
in part with the north line of Lot 36 of said Toys “R” Us, S89°31’43”W, a distance of 2200.44 feet to the POINT OF BEGINNING and containing 66.9915 Acre (2,918,150 sq. ft.) of land, more or less. 

 EXHIBIT B 
 Project Area Map 
  

 B-1 

 

 
  

 EXHIBIT C 
 Eisenhauer Development Tract 
 Legal Description 
  

 C-1 

 Date: 07/09/2007 
 Job
No. 07031 
 114.838 acres 
 LEGAL DESCRIPTION OF A
114.838 ACRES OF LAND 
 DESCRIBING 114.838 ACRES OF LAND MORE OR LESS, SITUATED IN THE GERTRUDE RODRIGUEZ SURVEY NO. 132, ABSTRACT NO. 610, BEXAR
COUNTY, TEXAS, CONSISTING OF THE FOLLOWING TRACTS OF LAND AS DESCRIBED IN THE BEXAR COUNTY DEED RECORDS AND REFERENCED IN BEXAR COUNTY APPRAISAL DISTRICT: A CALLED 21.846 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 6060, PAGE 12 OFFICIAL PUBLIC
RECORDS OF SAID COUNTY, KNOWN AS P-10B, 5.16 ACRES & P-10C, 16.667 ACRES, BLK 14 N.C.B 15783, NFP PARTNERSHIP, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 16.285 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 6290, PAGE 1126 OFFICIAL
PUBLIC RECORDS OF SAID COUNTY, KNOWN AS P-10C, 15.724 ACRES, N.C.B. 15821, JAMES C. NIEMANN TRUSTEE FOR NFP PARTNERSHIP, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 12.3 ACRE TRACT OF LAND, TRACT NO. 4 DESCRIBED IN VOLUME 8017, PAGE 508,
OFFICIAL PUBLIC RECORDS OF SAID COUNTY, LESS A 0.358 ACRE TRACT VOLUME 8017, PAGE 508 (O.P.R.), KNOWN AS TRACT 17, N.C.B.12190, 9.415 ACRES, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 0.358 ACRE TRACT OF
LAND, DESCRIBED IN VOLUME 6039, PAGE 545, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS PT. OF TRACT 17 ARB TRACT 17B, N.C.B. 12190, 0.273 ACRE, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, THE REMAINING PORTION OF A
CALLED 62.411 ACRE TRACT OF LAND DESCRIBED IN VOLUME 6697, PAGE 546, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS PART OF TRACT 13, N.C.B. 12190, 51.353 ACRES, JAMES C. NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, ALSO KNOWN AS TRACT
17A, N.C.B. 12190, 2.262 ACRES, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 0.995 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 5555, PAGE 586, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS TRACT 18,
N.C.B. 12190, 1.0 ACRE, LARRY NIEMANN TRUSTEE, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 0.881 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 5555, PAGE 578, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS TRACT 19, N.C.B.12190, 0.826 ACRE,
LARRY NIEMANN TRUSTEE, ACCORDING TO SAID APPRAISAL DISTRICT, THE REMAINING PORTION OF A CALLED 10.74 ACRE TRACT OF LAND, TRACT NO. 2 DESCRIBED IN VOLUME 8017, PAGE 508 DEED RECORDS OF SAID COUNTY, KNOWN AS TRACT 20 & PART OF TRACT 13,
N.C.B. 12190, 7.250 ACRES, VIRGINIA NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A CALLED 0.659 ACRE TRACT OF LAND, CONVEYED TO BERNARD T. SIFT JR., DESCRIBED IN VOLUME 7262, PAGE 240 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, BEING LOT
43, N.C.B. 12190, WINDSOR PARK SOUTH SUBDIVISION UNIT 1A, RECORDED IN VOLUME 9537, PAGE 203 PLAT RECORDS OF SAID COUNTY, A 0.09 ACRE TRACT OF LAND OUT OF THE ABOVE MENTIONED 10.74 ACRE TRACT OF LAND, KNOWN AS PART OF TRACT 13, N.C.B. 12190,
0.09 ACRE, VIRGINIA NIEMANN, 

 
ACCORDING TO SAID APPRAISAL DISTRICT, AND A CALLED 0.917 ACRE TRACT, LOT 40, OF THE WINDSOR PARK SOUTH SUBDIVISION UNIT 1 RECORDED IN VOLUME 9525,
PAGE 170 PLAT RECORDS OF SAID COUNTY, (LOT 40, N.C.B.12190, VIRGINIA NIEMANN, VOLUME 6697, PAGE 538 DEED RECORDS OF SAID COUNTY), LESS AND EXCEPT A 0.74 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1470 OFFICIAL PUBLIC RECORDS OF
BEXAR COUNTY, TEXAS, A 0.128 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1480 OFFICIAL PUBLIC RECORDS OF BEXAR COUNTY, TEXAS, A 0.124 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1480 OFFICIAL PUBLIC RECORDS OF
BEXAR COUNTY, TEXAS, A 0.012 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1475 OFFICIAL PUBLIC RECORDS OF BEXAR COUNTY, TEXAS, A 0.072 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1475 OFFICIAL PUBLIC RECORDS OF
BEXAR COUNTY, TEXAS, A 0.054 ACRE TO THE CITY OF SAN ANTONIO, DESCRIBED IN VOLUME 6784, PAGE 1460 OFFICIAL PUBLIC RECORDS OF BEXAR COUNTY, TEXAS. 

 EXHIBIT D 
 Racker Road Map 
 On Mall Property 
  

 D-1 

 

 
  

 EXHIBIT D 
 Racker Road Map 
 On Mall Property 
  

 D-1 

 

 
  

 EXHIBIT E 
 Walzem Neighborhood Map 
  

 E-1 

 

 
  

 EXHIBIT F 
 Windcrest Development Site Map 
  

 F-1 

 

 
  

 EXHIBIT G 
 Annexed Area Map 
  

 G-1 

 

 
  

 Date: 05/22/07 
 Job
No. 07031 
 229.131 acres 
 City of Windcrest 
 Annexation Boundary 
 LEGAL DESCRIPTION OF 229.131 ACRES OF LAND

 DESCRIBING 229.131 ACRES OF LAND, MORE OR LESS, SITUATED IN THE GERTRUDE RODRIGUEZ SURVEY NO. 132, ABSTRACT NO. 610, BEXAR COUNTY, TEXAS, CONSISTING
OF THE FOLLOWING TRACTS OF LAND AS DESCRIBED IN THE BEXAR COUNTY CLERK’S OFFICE AND REFERENCED IN BEXAR COUNTY APPRAISAL DISTRICT: A 21.846 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 6060, PAGE 12 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS
P-10B, 5.16 ACRES & P-10C, 16.667 ACRES, BLK 14 N.C.B 15783, NFP PARTNERSHIP, ACCORDING TO SAID APPRAISAL DISTRICT, A 16.285 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 6290, PAGE 1126 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS P-10C,
15.724 ACRES, N.C.B. 15821, JAMES C. NIEMANN TRUSTEE FOR NFP PARTNERSHIP, ACCORDING TO SAID APPRAISAL DISTRICT, A 16.285 ACRE TRACT OF LAND, TRACT NO. 4 DESCRIBED IN VOLUME 8017, PAGE 508, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS TRACT 17,
N.C.B. 12190, 9.415 ACRES, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A 0.3587 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 6039, PAGE 545, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS PT. OF TRACT 17 ARB TRACT 17B,
N.C.B. 12190, 0.273 ACRE, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A 62.411 ACRE TRACT OF LAND DESCRIBED IN VOLUME 6697, PAGE 546, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS PART OF TRACT 13, N.C.B. 121.90,
51.353 ACRES, JAMES .C. NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, ALSO KNOWN AS TRACT 17A, N.C.B. 12190, 2.262 ACRES, VIRGINIA & FRED NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A 0.995 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 5555,
PAGE 586, OFFICIAL PUBLIC RECORDS OF SAID COUNTY, KNOWN AS TRACT 18, N.C.B. 12190, 1.0 ACRE, LARRY NIEMANN TRUSTEE, ACCORDING TO SAID APPRAISAL DISTRICT, A 0.881 ACRE TRACT OF LAND, DESCRIBED IN VOLUME 5555, PAGE 578, OFFICIAL PUBLIC RECORDS OF SAID
COUNTY, KNOWN AS TRACT 19, N.C.B. 12190, 0.826 ACRE, LARRY NIEMANN TRUSTEE, ACCORDING TO SAID APPRAISAL DISTRICT, A 10.74 ACRE TRACT OF LAND, TRACT NO. 2 DESCRIBED IN VOLUME 8017, PAGE 508 DEED RECORDS OF SAID COUNTY, KNOWN AS TRACT 20 &
PART OF TRACT 13, N.C.B. 12190, 7.25 ACRES, VIRGINIA NIEMANN, ACCORDING TO SAID APPRAISAL DISTRICT, A 0.659 ACRE TRACT OF LAND, CONVEYED TO BERNARD T. SIFT JR., DESCRIBED IN VOLUME 7262, PAGE 240 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, BEING LOT 43,
N.C.B. 12190, WINDSOR PARK SOUTH SUBDIVISION UNIT 1A, RECORDED IN VOLUME 9537, PAGE 203 PLAT RECORDS OF SAID COUNTY, 

  

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A 0.09 ACRE TRACT OF LAND OUT OF THE ABOVE MENTIONED 10.74 ACRE TRACT OF LAND, KNOWN AS PART OF TRACT 13, N.C.B. 12190, 0.09 ACRE, VIRGINIA NIEMANN,
ACCORDING TO SAID APPRAISAL DISTRICT, A 11.547 ACRE TRACT OF LAND, CONTAINING A 10.470 ACRE TRACT, LOT 41, AND A 0.917 ACRE TRACT, LOT 40, OF THE WINDSOR PARK SOUTH SUBDIVISION UNIT 1 RECORDED IN VOLUME 9525, PAGE 170 PLAT RECORDS OF SAID COUNTY,
(LOT 41, N.C.B. 12190, CONVEYED TO AT HOLDING-NOVEMBER, LLC., 10.47 ACRES, DESCRIBED IN VOLUME 10172, PAGE 1968, OFFICIAL PUBLIC RECORDS OF SAID COUNTY), (LOT 40, N.C.B. 12190, VIRGINIA NIEMANN, VOLUME 6697, PAGE 538 DEED RECORDS OF SAID COUNTY), A
11.5178 ACRE TRACT OF LAND, CONTAINING A 1.0000 ACRE TRACT-LOT 47, A 1.0000 ACRE TRACT-LOT 48, A 9.5178 ACRE TRACT-LOT 49, N.C.B. 12190 OF THE WINDSOR SQUARE WAL-MART III RECORDED IN VOLUME 9560, PAGE 80 PLAT RECORDS OF SAID COUNTY, (LOTS 47, 48,
49, CONVEYED TO GIGANTE FLEA MARKET LP, DESCRIBED IN VOLUME 11001, PAGE 1363 OFFICIAL PUBLIC RECORDS OF SAID COUNTY), A 3.753 ACRE TRACT OF LAND, BEING LOT 36 N.C.B. 12190, OF THE TOY R US SUBDIVISION RECORDED IN VOLUME 9520, PAGE 187 PLAT RECORDS
OF SAID COUNTY, KNOWN AS LOT 36 N.C.B. 12190, 3.753 ACRES, TOYS “R” US INC, ACCORDING TO SAID APPRAISAL DISTRICT, A 24.313 ACRE TRACT OF LAND CONVEYED TO THE CITY OF WINDCREST EDC, DESCRIBED IN VOLUME 12721, PAGE 2244 OFFICIAL PUBLIC
RECORDS OF SAID COUNTY, BEING LOT 44, OF THE SIMON APPLE GARDEN RECORDED IN VOLUME 9551, PAGES 187-188 PLAT RECORDS OF SAID COUNTY, A 0.777 ACRE TRACT OF LAND CONVEYED TO MONTE MAC NO. 2 DESCRIBED IN VOLUME 8630, PAGE 1604 OFFICIAL PUBLIC RECORDS OF
SAID COUNTY, BEING LOT 45 OF THE SIMON APPLE GARDEN RECORDED IN VOLUME 9551, PAGE 188 PLAT RECORDS OF SAID COUNTY, A 1.188 ACRE TRACT OF LAND, CONVEYED TO DICKER-WARMINGTON PROPERTIES, DESCRIBED IN VOLUME 8630, PAGE 1600 OFFICIAL RECORDS OF SAID
COUNTY, BEING LOT 46, N.C.B. 12190, OF THE SIMON APPLE GARDEN VOLUME 9551, PAGE 188 PLAT RECORDS OF SAID COUNTY, A 2.6424 ACRE TRACT OF LAND, CONVEYED TO HUNTER ROAD PROPERTIES INC., DESCRIBED IN VOLUME 10005, PAGE 100 OFFICIAL PUBLIC RECORDS OF
SAID COUNTY, BEING OUT OF LOT 24 OF THE SIMON SUBDIVISION RECORDED IN VOLUME 7800, PAGE 9-13 PLAT RECORDS OF SAID COUNTY, A 11.5384 ACRE TRACT OF LAND, CONVEYED TO THE CITY OF WINDCREST EDC, DESCRIBED IN VOLUME 12703, PAGE 299 OFFICIAL PUBLIC
RECORDS OF SAID COUNTY, BEING OUT OF LOT 24, N.C.B. 12190, OF THE SIMON SUBDIVISION RECORDED IN VOLUME 7800, PAGE 9-13 PLAT RECORDS OF SAID COUNTY, ALL OF THAT RESUBDIVISION PLAT OF SIMON SUBDIVISION RECORDED IN VOLUME 7800, PAGE 187, CONTAINING LOT
23, A 50 FOOT DRAINAGE EASEMENT, AND LOT 30, A 11.088 ACRE TRACT OF LAND, CONVEYED TO THE CITY OF WINDCREST EDC, DESCRIBED IN VOLUME 12639, PAGE 597 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, BEING LOT 25, N.C.B. 12190, SIMON SUBDIVISION RECORDED IN
VOLUME 9522, PAGE 105-106 PLAT RECORDS OF SAID COUNTY, 

  

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A 13.745 ACRE TRACT OF LAND, CONVEYED TO THE CITY OF WINDCREST EDC, DESCRIBED IN VOLUME 12639, PAGE 1596 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, BEING LOT
38, N.C.B. 12190, SIMON SUBDIVISION RECORDED IN VOLUME 9522, PAGE 105-106 PLAT RECORDS OF SAID COUNTY, A 0.544 ACRE TRACT OF LAND, CONVEYED TO MONTE MAC NO. 2 DESCRIBED IN VOLUME 8630, PAGE 1604 OFFICIAL PUBLIC RECORDS OF SAID COUNTY, BEING LOT 39,
N.C.B. 12190, OF THE SIMON SUBDIVISION RECORDED IN VOLUME 9522, PAGE 108 PLAT RECORDS OF SAID COUNTY, A 8.093 ACRE TRACT OF LAND, CONVEYED TO THE CITY OF WINDCREST EDC, DESCRIBED IN VOLUME 12639, PAGE 1569 OFFICIAL RECORDS OF SAID COUNTY, BEING LOT
37, N.C.B. 12190 OF THE SIMON SUBDIVISION RECORDED IN VOLUME 9522, PAGE 108 PLAT RECORDS OF SAID COUNTY, TOGETHER WITH THE ABOVE MENTIONED TRACTS OF LAND THE FOLLOWING ROADS ARE TO BE INCLUDED IN THIS DESCRIPTION- RAY BON DRIVE APPROXIMATELY 750.466
LINEAR FEET NORTH OF EISENHAUER ROAD, EXCALIBUR APPROXIMATELY 1257.073 LINEAR FEET WEST OF RAY BON ROAD, FRATT ROAD APPROXIMATELY 562.442 LINEAR FEET NORTH OF EISENHAUER ROAD, KING ARTHUR APPROXIMATELY 1053.031 LINEAR FEET NORTH OF EISENHAUER ROAD,
GALAHAD ROAD 1048.983 LINEAR FEET EAST OF INTERSTATE HIGHWAY 35, WALZEM ROAD 1858.845 LINEAR FEET EAST OF INTERSTATE HIGHWAY 35, BEING MORE PARTICULARY DESCRIBED AS FOLLOWS: 
 BEGINNING at a point on the East right-of-way line of Interstate Highway 35 & the northeast cut back of Eisenhauer Road for the southwest corner of said 10.74 acre tract; 
 THENCE along the East right-of-way line of Interstate Highway 35 N10°ll’06”E, a distance of 5111.43 feet to a point for northern most corner of this
tract herein described and being the northeast cut back of Walzem Road, for the southwest corner of K-JO Subdivision recorded in Volume 9570, Page 186 Plat Records of said county; 
 THENCE along the north right-of-way line of Walzem Road (Variable Width) and including approximately 1858.845 Linear Feet of said road east of Interstate Highway 35 the following calls:
S39°55’03”E, a distance of 151.56 feet, S89°49’16”E., a distance of 239.02 feet, S69°27’56”E, a distance of 29.38 feet, S89°57’19”E, a distance of 167.90 feet, N89°13’31”E, a
distance of 151.98 feet, N89°15’33”E, a distance of 343.97 feet, N89°17’24”E, a distance of 136.00 feet, N89°14’22”E, a distance of 496.88 feet, N88°17’25”E, a distance of 166.71 feet to a
point for the northeast corner of this tract herein described and being in the south line of Lot 4, Block 65 of the Windcrest Unit 18 recorded in Volume 6200, Page 212 Plat Records of said county; 
 THENCE crossing Walzem Road in a southwesterly direction with the common line of Roosevelt High School Subdivision recorded in Volume 9566, Page 132-133 Plat
Records of said county and said Lots 39, 38, 37 of the Simon Subdivision S00°00’23”W, a distance of 1664.95 feet to a point for an interior corner of this tract herein described; 
  

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 THENCE N89°48’06”E, a distance of 63.83 feet to a point for a corner of this tract herein described;

 THENCE in a southeasterly direction along the common line of Camelot Subdivision Unit 4 recorded in Volume 6500, Page 191 Plat Records of said
county, and said Lot 37, of the Simon Subdivision, Lot 44, of said Simon Apple Subdivision, S00°10’06”E, a distance of 149.97 feet to a point in the south line of said Camelot Subdivision Unit 4; 
 THENCE S89°41’15”W, a distance of 39.97 feet to a point for an interior corner of this tract herein described; 
 THENCE S00°03’37”E, a distance of 15.94 feet to a point of for a corner of this tract herein described; 
 THENCE in a westerly direction along the common line of said Lot 44, of the Simon Apple Garden, and Camelot Subdivision Unit 7 recorded in Volume 6500, Page 144
Plat Records of said county S89°45’28”W, a distance of 1281.92 feet to a point for an interior corner of this tract herein described and being northwest corner of Camelot Subdivision Unit 5A recorded in Volume 6500, Page 16 Plat
Records of said county; 
 THENCE in a southeasterly direction S00°17’10”E, a distance of 864.82 feet along east line of said Windsor
Square Wal-Mart III and the west line of said Camelot Subdivision Unit 5A to the southwest corner of Lot 16, Block 8, for a corner of this tract herein described; 
 THENCE S89°50’34”W, a distance of 75.00 feet to a point for an interior corner of this tract herein described and being the northwest corner of a called 0.126 acre tract described in Volume 1916, Page 130 Official
Public Records of said county; 
 THENCE crossing the remaining portion of said 64.411 acre tract, and being the west line of the following tracts of
land: 0.126 acre tract previously mentioned, a 0.126 acre tract recorded in Volume 9196, Page 210, a 0.126 acre tract recorded in Volume 11455, Page 583, a 0.126 acre tract recorded in Volume 9196, Page 194, a 0.127 acre tract recorded in Volume
9196, Page 186, a 0.131 acre tract recorded in Volume 9196, Page 178, a 0.131 acre tract recorded in Volume 9196, Page 162, a 0.131 acre tract recorded in volume 9196, Page 170, a 0.131 acre tract recorded in Volume 9196, Page 154, a 0.131 acre
tract recorded in Volume 9196, Page 146, a 0.131 acre tract recorded in Volume 9196, Page 138, a 0.147 acre tract recorded in Volume 9196, Page 122, a 0.147 acre tract recorded in Volume 10724, Page 709, a 0.398 acre tract and a 0.138 acre tract
recorded in Volume 9388, Page 2016, S00°07’38”E, a distance of 13115.48 feet to a point for an interior corner of this tract herein described and being the southwest corner of said 0.398 acre tract Official Public Records of said
county; 
 THENCE in a southeasterly direction continuing across said 64.411 acre tract and the north line of said 16.285 acre tract
S89°51’18”E, a distance of 681.11 feet to a point for a corner of this tract herein described; 
  

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 THENCE in a southeasterly direction along the common line of said 16.285 acre tract and the west line of Lot
32 & Lot 33 of the Missionary Church Subdivision recorded in Volume 9515, Page 50 Plat Records of said county, S00°12’30”E, a distance of 600.00 feet to a point for an interior corner of this tract herein described;

 THENCE in a easterly direction along south line of said Lot 33 of the Missionary Church Subdivision N89°49’30”E, a distance of 130.00
feet to a point for a corner of this tract herein described in the west right-of-way line of Fratt Road (50’-55’ R.O.W.); 
 THENCE in a
northerly direction along the east line of above mentioned Lot 33, N00°44’40”W, a distance of 134.32 to a point for the intersection of the west line of Fratt Road and the north line of Excalibur; 
 THENCE in a northeasterly direction along the north right-of-way line of Excalibur (50’-55’ R.O.W.) and along the south line of the following tracts: a
3.131 acre tract of land recorded in Volume 12629, Page 1456, a 1.680 acre tract recorded in Volume 10249, Page 841, a 4.947 acre tract recorded in Volume 7442, Page 1598 Official Public records of said county, a 2.783 acre tract known as Lot 2 of
the Gospel Hall Subdivision recorded in Volume 9558, Page 182 Plat Records of said county, a 2.7225 acre tract known as Lot 1 of the Prince of Peace Lutheran Church Subdivision recorded in Volume 6200, Page 37 Plat Records of said county,
N89°46’19”E, a distance of 1257.25 feet to a point and the beginning of a curve to the left; 
 THENCE 23.52 feet along the arc of said
curve to the left, having a radius of 15.00 feet, a central angle of 89°50’23”, whose chord bears N44°52’46”E, a distance of 21.18 feet to a point; 
 THENCE N00°02’26”W, a distance of 108.96 feet to a point on the east line of said Lot 1 of the Prince of Peace Lutheran Church Subdivision and the west line of Ray Bon (60’ R.O.W.), for a
corner of this tract herein described; 
 THENCE crossing said Ray Bon Drive N89°57’34”E, a distance of 72.57 feet to a point and being
the northwest corner of said 21.846 acre tract; 
 THENCE in a northeasterly direction along the north line of said 21.846 acre tract and the south
line of Camelot Subdivision Unit 14 recorded in Volume 5970, Page 27 Plat Records of said county, and Camelot Subdivision Unit 8 recorded in Volume 5870, Page 23-24 Plat Records of said county, N89°54’30”E, a distance of 990.40 feet to
a point for the beginning of a curve to the left; 
 THENCE 189.20 feet along the arc of said curve to the left, having a radius of 487.84 feet, a
central angle of 22°13’16”, whose chord bears N78°47’52”E, a distance of 188.02 feet to a point for an angle point and being the northeast corner of said 21.846 acre tract and the northwest corner of Camelot Subdivision
Unit 13 recorded in Volume 6100, Page 49 Plat Records of said county; 
  

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 THENCE in a southeasterly direction along the common line of said 21.846 acre tract and said Camelot Subdivision
Unit 13, S22°28’06”E, a distance of 239.55 feet to a point for an angle point; 
 THENCE along the south line of said Camelot
Subdivision Unit 13, N89°49’55”E, a distance of 247.43 feet to a point for the beginning of a curve to the right on the west right-of-way line of Midcrown Drive; 
 THENCE along the east line of said 21.846 acre tract and the west line of Midcrown Drive the following three curves: 112.66 feet along the arc of said curve to the right, having a radius of 700.00 feet a
central angle of 09°13’17”, whose chord bears S33°59’31”W, a distance of 112.54 feet to a point for the beginning of a reverse curve to the left, and continuing along said curve to the left with a arc length of 454.03
feet, a radius of 700.00 feet, a central angle of 37°09’46”, whose chord bears S17°48’51”W, a distance of 446.11 feet to a point for the beginning of a reverse curve to the right, and continuing along said curve to the
right with a arc length of 39.68 feet, a radius of 25.00 feet, a central angle of 90°56’02”, whose chord bears S44°09’52”W, a distance of 35.64 feet to a point on the north right-of-way line of Eisenhauer Road;

 THENCE along the north right-of-way line of Eisenhauer Road and the south line of said 21.846 acre tract, said 16.285 acre tract, said 0.358 acre
tract, said 16.285 acre tract, said 62.411 acre tract, said 0.995 acre tract, said 0.881 acre tract, said 10.74 acre tract, the following calls; 
 S89°37’59”W, a distance of 1144.74 feet to a point; 
 S89°44’25”W, a distance of 2193.34 feet to a point; 

S89°59’40”W, a distance of 1460.54 feet to a point; 
 N40°01’16”W, a distance of 186.27 feet to the POINT OF BEGINNING and containing 229.131 acres of land more or less. 
 This
description does not constitute an on the ground survey. The information referenced above was compiled from the Deed and Plat Records of the Bexar County Clerk Office, and was based on the reconstruction of said tracts of land electronically.

  

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 EXHIBIT H 
 TXDOT Map 
  

 H-1 

 

 
  

 EXHIBIT I 
 Restrictive Covenants 
  

 I-1 

 DECLARATION OF RESTRICTIVE COVENANTS 
 This Declaration of Restrictive Covenants (this “Declaration”) is made as of the      day of
                    , 2007, by the WINDCREST ECONOMIC DEVELOPMENT CORPORATION, a Section 4B corporation created pursuant to the authority
of the Development Corporation Act of 1979, as amended, Texas Revised Civil Statutes Annotated, Article 5190.6 (the “Windcrest EDC”). 
 RECITALS 
 A. The Windcrest EDC is the owner a tract of land and improvements comprising the property commonly known
as the Windsor Park Mall in Bexar County, Texas, and being more particularly described in Exhibit “A” (the “Leased Property”). 
 B. The Windcrest EDC is the owner of a tract of land and improvements located in Bexar County, Texas, along U.S. Interstate Highway 35 between Eisenhauer Road and the Leased Property and being more particularly
described in Exhibit “B” (the “Eisenhauer Development Tract”). The Leased Property and the Eisenhauer Development Tract are hereinafter sometimes referred to collectively as, the “Property”. 
 C. Certain parties with which the Windcrest EDC has entered into other agreements intend to develop or redevelop the Property with certain projects,
including a corporate headquarters and a development utilizing a “live, work, and play concept” that might contain condominiums, apartments, grocery stores, restaurants, retail shopping and entertainment facilities. 
 D. The Windcrest EDC wants to subject the Property to certain use restrictions to facilitate the successful development of the Property with its intended
uses. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
undersigned agrees to hold, sell and convey the Property subject to the following restrictive covenants, which are impressed upon the Windcrest EDC Land by this Declaration. 
 DECLARATION 
 I. Restrictions 
 1.1 Prohibited Uses. No part of the Property may be used for the following uses: 
 (a) any public or private nuisance; 
 (b) any
noise or sound that is objectionable due to intermittence, beat, frequency, shrillness or loudness; provided, however, that the use of backup power generators as necessary in a power shortage or outage, and the periodic testing of such generators,
shall not constitute a violation of this prohibition; 
  

 1 

 (c) any obnoxious odor; 
 (d) any excessive quantity of dust, dirt, or fly ash; 
 (e) any fire, explosion or other damaging or
dangerous hazard, including the storage, display or sale of explosives or fireworks; 
 (f) any distillation (other than so-called
micro-brewing of beer), refining, smelting, agriculture or mining operations; 
 (g) any mobile home or trailer court, labor camp, junk yard,
or stock yard; 
 (h) any drilling for and/or removal of subsurface substances; 
 (i) any dumping of garbage or refuse, other than in enclosed receptacles intended for such purpose and removed or emptied on a regular basis; 

(j) any automobile, truck, trailer, or recreational vehicle sales, renting, leasing, display, or storage which is not entirely conducted inside of a
permanent, fire-rated building; 
 (k) any self storage use; 
 (1) any repairing of any motor vehicle, boat, or trailer; 
 (m) any dry cleaning facilities utilizing
hazardous substances with an on-premises plant; and 
 (n) any adult or sexually oriented use or business, including, without limitation, the
display for sale or exhibition of books, magazines, videos, or other publications or materials of a pornographic nature, topless bars, massage parlors, and so-called “head shops”. 
 II. Default and Remedies 
 2.1 Remedies. In the event of a breach or
threatened breach of this Declaration, any owner of any portion of the Property at the time of such breach or threatened breach shall be entitled to institute proceedings for full and adequate relief from the consequences of said breach or
threatened breach. 
 2.2 No Waiver. The failure to enforce this Declaration at any time shall not constitute a waiver of the right
thereafter to enforce any such provision or any other provision of this Declaration. 
 III. General Provisions 
 3.1 No Third-Party Beneficiary. The provisions of this Declaration are for the exclusive benefit of the owner(s) of the Property and their
successors and assigns, and not for the benefit of any third person, nor shall this Declaration be deemed to have conferred any rights, express or implied, upon any third person. 
  

 2 

 3.2 No Dedication. No provision of this Declaration shall ever be construed to grant or create any
rights whatsoever in or to any portion of the Property other than the restrictive covenants specifically set forth herein. Nothing in this Declaration shall ever constitute or be construed as a dedication of any interest herein described to the
public or give any member of the public any right whatsoever. 
 3.3 Notice. All notices required or permitted to be given hereunder,
or given in regard to this Declaration, shall be in writing and the same shall be given and be deemed to have been served, given and received (a) one (1) business day after being placed in a prepaid package with a national, reputable
overnight courier addressed to the recipient at the address hereinafter specified; or (b) if mailed, three (3) business days following the date placed in the United States mail, postage prepaid, by certified mail, return receipt requested,
addressed to the party at the address hereinafter specified. 
  

							
		  	Windcrest Economic	  	Mr. Ray Watson	  	
		  	Development Corporation:	  	Director of Economic Development	  	
		  		  	8601 Midcrown	  	
		  		  	Windcrest, Texas 782239	  	
		  		  	Fax: (210) 655-8776	  	
				
		  	With a copy to:	  	Mr. James P. Plummer	  	
		  		  	Fulbright & Jaworski L.L.P.	  	
		  		  	300 Convent Street, Suite 2200	  	
		  		  	San Antonio, Texas 78205	  	
		  		  	Fax: (210) 270-7205	  	

 3.4 Attorneys’ Fees. The unsuccessful party in any action brought to enforce this
Declaration shall pay to the prevailing party a reasonable sum for costs incurred by the prevailing party in enforcing this Declaration, including attorneys’ fees and court costs. 
 3.5 Severability. If any provision of this Declaration shall be declared invalid, illegal or unenforceable in any respect under any applicable law
by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired thereby. It is the further intention of the parties that in lieu of each covenant, provision, or agreement
of this instrument that is held invalid, illegal or unenforceable, that be added as a part hereof a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may possible and be legal, valid, and
enforceable. 
 3.6 Rights of Successors. The easements, restrictions, benefits and obligations hereunder shall create mutual benefits
and servitudes running with the land. This Declaration shall be binding upon and shall inure to the benefit of the parties hereto and their successors and assigns. The singular number includes the plural and the masculine gender includes the
feminine and neuter. 
  

 3 

 3.7 Modification and Cancellation. This Declaration may be modified, amended, or terminated only
by joint action of the owners of at least 85% of the land area of the Property. Any such modification, amendment, or termination must be in writing, signed by the owner(s) participating in the action. 
 [Signature Follows] 
  

 4 

 IN WITNESS WHEREOF, the Windcrest EDC has duly executed this instrument on the date indicated
below. 
  

					
	 WINDCREST ECONOMIC
 DEVELOPMENT
CORPORATION
	 	
			
	By:	 	  
	 	
	Name:	 	  
	 	
	Title:	 	  
	 	

  

					
	STATE OF TEXAS	 	§	  	
		 	§	  	
	COUNTY OF BEXAR	 	§	  	

 This instrument was acknowledged before me this      day of
                    , 2007, by
                            ,
                                        
of the Windcrest Economic Development Corporation, a Section 4B corporation created pursuant to the authority of the Development Corporation Act of 1979, as amended, Texas Revised Civil Statutes Annotated, Article 5190.6, on behalf of such
corporation. 
  

			
	  
	 	
	Notary Public, State of Texas	 	

  

			
	Exhibit “A”	 	Leased Property
	Exhibit “B”	 	Eisenhauer Development Tract

  

 5 

 EXHIBIT J 
 Mall Lease 
  

 J-1

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