Document:

1999 Assumed Stock Option Plan and forms of agreements thereunder

 Exhibit 10.2 
 MACRO HOLDING, INC. 
 1999 ASSUMED STOCK OPTION PLAN 
 1. Purpose. This 1999 Assumed Stock Option Plan (the “Plan”) (f/k/a the Rackspace, Ltd. 1999 Unit Option Plan) is intended to provide
incentives to the employees of Macro Holding, Inc. (the “Company”), any future parent, and any present or future subsidiaries of the Company (collectively, “Related Entities”), by providing such employees with opportunities
to purchase Common Stock in the Company, par value $0.001 per share (the “Common Stock”), pursuant to options granted hereunder (the “Options”). The Common Stock will have the rights, preferences and privileges set forth in the
Company’s Certificate of Incorporation, as amended from time to time. Anything in this Plan to the contrary notwithstanding, Options shall not be granted or awarded hereunder to any administrator or administrators if such grant, award or
purchase would cause such administrator or administrators not to satisfy the “disinterested person” requirements of Rule 16b-3, or any successor or amended rule, (“Rule 16b-3”) promulgated by the Securities and Exchange
Commission under the Securities and Exchange Act of 1934, as amended (the “1934 Act”). Nothing in this Plan shall confer upon an Optionee any right to continue in service for any period or duration or interfere with or otherwise restrict
in any way the rights of the Company or any Related Entity, which rights are hereby expressly reserved, to terminate such person’s employment at any time and for any reason, with or without cause. 
 In August of 2001, Rackspace, Ltd. executed a Plan of Reorganization with, among others, the Company, pursuant to which the Company assumed the 1999
Unit Option Plan of Rackspace, Ltd. This Plan is the assumed 1999 Unit Option Plan revised to reflect that the Company is now a corporation and not a partnership. 

 Recipients of Options are hereafter referred to individually as an “Optionee” and collectively
as “Optionees.” 
 2. Administration of the Plan. The Plan shall be administered (i) to the extent required by Rule
16b-3, by an administrator or administrators in compliance with Rule 16b-3, and (ii) in all other cases, by the board of directors of the Company (the “Board”) or by such administrator or administrators as the Board may designate
(such administrator(s) and the Board collectively, the “Administrator”). Subject to the terms of the Plan, the Administrator shall have the authority to (i) determine the employees of the Company and Related Entities to whom Options
will be granted; (ii) determine the number of shares of Common Stock and the option price of shares subject to each Option; (iii) determine the time or times when each Option shall vest and become exercisable and the duration of the
exercise period; (iv) determine the terms and provisions of each Option Agreement (defined below in Paragraph 4(A)), and (v) interpret the Plan and prescribe and rescind rules and regulations relating to it. With respect to persons
subject to Section 16 of the 1934 Act, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3. To the extent any provision of the Plan or action by the Administrator fails to so comply, it shall be
deemed null and void, to the extent permitted by law and deemed advisable by the Administrator. The interpretation and construction by the Administrator of any provisions of the Plan or of any Option shall be final unless otherwise determined by the
Board. The Administrator may from time to time adopt such rules and regulations for carrying out the Plan as it may deem best. Neither the Administrator nor the Company shall be liable for any action or determination made under the terms hereof with
respect to the Plan or any Option granted under it. 
 3. Shares. The Common Stock subject to the Options shall be authorized but
unissued shares of Common Stock. The maximum aggregate number of shares of Common 

  

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Stock that may initially be issued pursuant to the Plan is 2,729,356. The number of shares authorized for the grant of Options under the Plan shall be
subject to adjustment as provided in Paragraph 6. If any Option shall expire or terminate for any reason without having been exercised in full or shall cease for any reason to be exercisable in whole or in part, the un-purchased shares
subject to such Option shall again be available for grant under the Plan to the extent permitted by Rule 16b-3. 
 4. Terms of
Options. 
 A. Minimum Option Price. The price per share specified in the agreement (the “Option Agreement”) relating to
each Option granted under the Plan shall not be less than the fair market value per share of Common Stock on the date of such grant. If, at the time an Option is granted, the Common Stock is listed on any established stock exchange or a national
market system or regularly quoted by a recognized securities dealer (“Publicly Traded”), “fair market value” shall be determined as of the last business day for which the prices or quotes discussed in this sentence are available
prior to the date such Option is granted and shall mean (i) the last reported sales price of a share of Common Stock on the principal national securities exchange on which the Common Stock is traded, if the Common Stock is then traded on a
national securities exchange; or (ii) the last reported sale price (on that date) of a share of Common Stock on the NASDAQ National Market List, if the Common Stock is not then traded on a national securities exchange; or (iii) the closing
bid price (or the average of bid prices) last quoted (on that date) by an established quotation service for over-the-counter securities, if the Common Stock is not reported on the NASDAQ National Market List. However, if the Common Stock is not
Publicly Traded at the time an Option is granted under the Plan, “fair market value” shall be deemed to be the greater of (a) the last purchase price of any Common Stock sold by the Company in an arm’s length negotiated
transaction within 120 days previous to the date that an 

  

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Option is granted under the Plan (not including Option exercises), (b) the annualized revenue of the Company using the revenues for the month preceding
the date of grant of an Option (12 times the revenue for such previous month) times ten (10) and divided by the number of shares of Common Stock then outstanding (assuming conversion of all then outstanding stock convertible into Common Stock),
or (c) $50,000,000 divided by the number of shares of the Common Stock then outstanding (assuming conversion of all then outstanding stock convertible into Common Stock). Provided, however, in the event the Administrator shall determine that
the above methods of determining the fair market value of a share of Common Stock are unfair to either the Optionee or the Company, the fair market value of a share of Common Stock shall be as determined by the Administrator after taking into
consideration all factors which it deems appropriate, including, without limitation, the price determined in any applicable public trading market, or any recent sale and offer prices of equity securities of the Company in private transactions
negotiated at arm’s length. 
 B. Duration of Options. Each Option shall expire on the date specified in the applicable Option
Agreement, but not more than ten (10) years from the date of grant. 
 C. Vesting and Exercise of Options. Options shall vest as
follows: one third (1/3) of the aggregate shares under the Option on or after the first anniversary of the date of its grant and an additional one third (1/3) of such shares on each of the next following two anniversary dates of its
grant; provided the Optionee is an employee of the Company or a Related Entity on such date. The above notwithstanding, the Administrator shall have the right to increase or decrease the vesting schedule specified above, and to the extent it does
so, such vesting schedule shall be specified in the Option Agreement. Options which have vested (“Vested Options”) may be exercised at anytime after six (6) years from the date of grant, provided however, that such Vested Options may
be exercised earlier than six (6) years from the 

  

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date of grant upon or after the first to occur of (i) the closing of the first sale of Common Stock to the general public pursuant to a registration
statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”) (an “IPO”), or (ii) the closing of a “Significant
Transaction.” “Significant Transaction” means the sale of all or substantially all of the assets of the Company, or a merger, business combination or a change in control through the issuance or transfer of equity in the Company,
wherein the equity owners of the Company immediately prior to the merger, combination or change in control, do not own or control (directly or indirectly) at least 10% of the equity interest in the Company or the successor company, as the case may
be. As to outstanding Vested Options, the Administrator may permit the exercise of such options notwithstanding the failure to meet the six (6) year from date of grant, IPO or Significant Transaction requirements. The Company makes no
representation that an IPO or Significant Transaction will occur and shall have no obligation to seek to cause such events to occur. 
 D.
Date of Grant and Employees Eligible for Options. Options granted under this Plan shall be granted only to employees of the Company or a Related Entity who have been so employed continuously as a full-time employee for at least six
(6) months. Options shall be granted on either December 31 or June 30 of each year, provided that the Administrator may grant Options on dates other than on December 31 and June 30 if extenuating circumstances exist, as
determined by the Administrator. 
 E. Limitation of Shares under Option to a Single Optionee. No Optionee shall be granted an Option
if the aggregate exercise price for all shares of Common Stock covered by the Options held by such Optionee, including the proposed Option, will exceed of ten percent (10%) of the annual base salary (exclusive of bonus and commission) of the
Optionee at the time of grant. The Administrator may deviate from this limit to the extent the Administrator determines circumstance requires. 
  

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 F. Option Terminates with Employment. Upon the termination of the Optionee’s full time
employment with the Company or a Related Entity, as determined by the Administrator, Options held by the Optionee shall terminate except to the extent such Options are Vested Options on the date of any such termination. All Vested Options which may
be exercised under the provisions of Paragraph 4(C) above at the time of termination of employment must be exercised, if at all, within 60 days following any such termination of employment. If not exercised in full during such sixty
(60) day period, such Vested Options shall terminate to the extent not exercised. All Vested Options which are not exercisable at the time of termination of employment shall terminate on the 120th day following the date of termination of
employment, whether or not they become exercisable under the provisions of Paragraph 4(C) above during such 120 day period. 
 G.
Forfeiture for Competition. If, at any time while any Option remains outstanding, the Optionee provides services to a competitor of the Company or a Related Entity, whether as an employee, officer, director, independent contractor,
consultant, agent or otherwise (“engages in competition”), then the Option shall terminate and be forfeited, subject only to a determination by the Administrator to the contrary. For all purposes under this Plan and each Option Agreement,
the Administrator shall have the right to determine whether or not the Optionee engages in competition and such determination shall be conclusive and binding on the Optionee. 
 5. Written Agreements. Options shall be evidenced by instruments (which need not be identical) in such forms as the Administrator may from time to
time approve. Such instruments shall conform to such terms, conditions and provisions as are applicable hereunder 

  

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and may contain such other terms and conditions and provisions as the Administrator deems advisable which are not inconsistent with the Plan, including
restrictions applicable to securities issuable upon exercise of Options. The Administrator may from time to time confer authority and responsibility on one or more officers of the Company to execute and deliver such instruments. The proper officers
of the Company are authorized and directed to take any and all action necessary or advisable from time to time to carry out the terms of such instruments. 
 6. Adjustments. Upon the happening of any of the following described events, an Optionee’s rights with respect to Options granted to him hereunder, shall be adjusted as hereinafter provided, unless
otherwise specifically provided, in addition or to the contrary, in the Option Agreement. 
 A. Certain Corporate Events. If the
Common Stock is subdivided or combined into a greater or smaller number of shares or if, upon a merger, consolidation, reorganization, split-up, liquidation, recapitalization the Common Stock is to be exchanged for other securities of the Company or
of another entity (collectively, an “Event”), the number and type of securities subject to an Option and the exercise price for such Option shall be appropriately adjusted to reflect the Event. If an Event should occur and the entity the
securities of which would be issuable under an Option as the result of the Event is not bound and chooses not to be bound under the provisions of this Plan or any Option, and the Company is not a reporting company under the 1934 Act, the
Administrator shall determine the rights of the Optionee under the Option, which may include termination of the Option. If the Event is a merger, consolidation, reorganization or split-up and the surviving entity does not agree to recognize the
Options and (i) the Event meets the definition of a Significant Transaction, or (ii) the Company is otherwise a reporting company under the 1934 Act, holders of Vested Options are required to exercise their Options, if at all, within sixty
(60) days after the Event and any 

  

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exercise during such 60 days shall be deemed to have occurred on the date previous to such Event. An Option not exercised in full during such sixty
(60) day period shall terminate to the extent not exercised. 
 B. New Securities. If any person owning securities obtained by
exercise of an Option receives new or additional or different or securities (“New Securities”) in connection with an Event, such New Securities shall be subject to all of the conditions and restrictions applicable to the Common Stock with
respect to which such New Securities were issued. 
 C. Fractional Shares. Options may only be exercised for a whole number of shares,
and no fractional shares shall be issued under an Option. Any fractional shares which, but for this Paragraph 6(C), would have been issued to an Optionee upon exercise of an Option shall be rounded up to the nearest whole share. 

D. Adjustments. Upon the happening of any Event, the class and aggregate number of shares set forth in Paragraph 3 reserved for
issuance under the Plan shall be appropriately adjusted to reflect the Event. The Board shall determine the specific adjustments to be made as a result of the occurrence of an Event, including the exercise price and the number and type of
securities, and its determination shall be conclusive and binding on the Optionee. 
 7. Means of Exercising Options and Denial of Rights
as Stockholder. An Option (or any part or installment thereof) shall be exercised as specified in the Option Agreement, which may specify any legal method of exercise. The holder of an Option shall not have the rights of a holder of shares of
Common Stock with respect to the shares covered by his Option until the date of issuance of a certificate to him representing such shares. Except as expressly provided above in Paragraph 6 with respect to changes in capitalization, no
adjustment shall be made with respect to any shares issuable upon exercise of an Option for dividends or similar rights for which the record date is before the date the certificate is issued. 
  

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 8. Transferability of Options. Except as otherwise provided in the Plan, no Option shall be
transferable by an Optionee other than by will or the laws of descent and distribution. Any Option purported to be transferred to the spouse or former spouse of an Optionee pursuant to any court order or decree or settlement agreement issued or
entered into incident to any divorce action shall terminate, whether or not any such court order or decree or settlement agreement purports to merely recognize or document a community interest of such spouse or former spouse. 
 9. Termination; Amendment. The Board may terminate or amend the Plan in any respect at any time. 
 10. Withholding of Additional Income Taxes. Upon the exercise of an Option, the Company, in accordance with Section 3402(a) of the Internal
Revenue Code, may require the Optionee, purchaser, or holder or exerciser of an Option to pay additional withholding taxes in respect of the amount that is considered compensation includable in such person’s gross income. In addition, each
Optionee, no later than the date as of which the value of a grant or of any Common Stock or other amount received thereunder first becomes includable in the gross income for the Optionee for Federal income tax purposes, shall pay to the Company, or
make arrangements satisfactory to the Administrator regarding payment of any Federal, state, or local taxes of any kind required by law to be withheld with respect to such income. The Administrator may permit payment of taxes to be made through
tender of cash or securities, the withholding of securities or cash to be received or any other arrangement satisfactory to the Administrator. The Company, to the extent permitted by law, shall have the right to deduct any such taxes from any
payment of any kind otherwise due to the Optionee. 
  

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 11. Company’s Right of First Refusal and Other Restrictions on Transfer of Shares.

 (A) Right of First Refusal and Restriction on Transfer. No transfer of Common Stock (which for purposes of this
Paragraph 11 includes any securities issued in exchange for or as a result of Common Stock), other than a “Permitted Transfer” as defined in Paragraph 11(D) below, may be made within twenty-four (24) months of the
date the Optionee first becomes a full-time employee of the Company. After such 24 month period, in the event that the Optionee proposes to sell, pledge or otherwise transfer to a third party any Common Stock acquired under an Option, or any
interest in such Common Stock, the Company shall have a right of first refusal (the “Right of First Refusal”) with respect to all (and not less than all) of such Common Stock. If the Optionee desires to transfer any Common Stock acquired
under an Option, the Optionee shall give a written notice (the “Transfer Notice”) to the Company describing fully the proposed transfer, including the number of shares of Common Stock proposed to be transferred, the proposed transfer
price, the name and address of the proposed transferee (the “Transferee”) and proof satisfactory to the Company that the proposed sale or transfer will not violate any applicable federal or state securities laws. The Transfer Notice shall
be signed both by the Optionee and by the proposed Transferee and must constitute a binding commitment of both parties to the transfer of the Common Stock identified in the Transfer Notice. The Company shall have the right to purchase all, and not
less than all, of the Common Stock identified in the Transfer Notice on the terms of the proposal described in the Transfer Notice (subject, however, to any change in such terms permitted under Paragraph 11(B) below) by delivery of a notice
of exercise of the Right of First Refusal within 30 days after the date when the Transfer Notice was received by the Company (the “Exercise Period”). The Company’s rights under this Paragraph 11(A) shall be freely assignable,
in whole or in part. 
 (B) Transfer of Shares. If the Company fails to exercise its Right of First Refusal prior to the expiration of
the Exercise Period, the Optionee may, not later than 60 days 

  

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following expiration of the Exercise Period, conclude a transfer of the Common Stock subject to the Transfer Notice on the terms and conditions described in
the Transfer Notice, provided that any such sale is made in compliance with applicable federal and state securities laws and not in violation of any other contractual restrictions to which the Optionee is bound, including any restriction against
transfer contained in any agreement to which the Optionee is a party. The Transferee must agree in writing on a form prescribed by the Company to be bound by all provisions of this Plan and the Option Agreement, including but not limited to the
Right of First Refusal. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Optionee, shall again be subject to the Right of First Refusal and shall
require compliance with the procedure described in Subsection (A) above. If the Company exercises its Right of First Refusal, the parties shall consummate the sale on the terms set forth in the Transfer Notice within 60 days after the date when
the Company received the Transfer Notice (or within such longer period as may have been specified in the Transfer Notice); provided, however, that in the event the Transfer Notice provides that payment is to be made in a form other than cash or cash
equivalents paid at the time of transfer, the Company shall have the option of paying the consideration with cash or cash equivalents equal to the present value of the consideration described in the Transfer Notice. 
 (C) Termination of Right of First Refusal. Any other provision of this Paragraph 11 notwithstanding, in the event that the Common Stock is
readily tradable on an established securities market when the Optionee desires to transfer Common Stock, the Company shall have no Right of First Refusal, and the Optionee shall have no obligation to comply with the procedures prescribed by
Paragraphs 11(A) and 11(B) above, provided that such transfer takes place not less than 24 months from the date the Optionee first became a full-time employee of the Company. 
  

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 (D) Permitted Transfers. This Paragraph 11 shall not apply to (i) a transfer by
beneficiary designation, will or intestate succession or (ii) a transfer to the Optionee’s spouse (other than pursuant to a divorce proceeding), children or to a trust established by the Optionee for the benefit of the Optionee or the
Optionee’s spouse, children or grandchildren, provided in either case that the transferee agrees in writing on a form prescribed by the Company to be bound by all provisions of this Plan and the Option Agreement, including but not limited to
the Right of First Refusal and the restriction against transfer for a period of 24 months from the date the Optionee first became a full-time employee of the Company. If the Optionee transfers any Common Stock acquired upon exercise of an Option,
then this Paragraph 11 shall apply to the transferee to the same extent as to the Optionee. 
 (E) Termination of Rights as
Stockholder. If the Company makes the consideration available, at the time and place and in the amount and form provided for in this Paragraph 11 for the Common Stock to be purchased pursuant to this Paragraph 11, then after
such time the person from whom such Common Stock is to be purchased shall no longer have any rights as a holder of such Common Stock (other than the right to receive payment of such consideration as set forth herein). Such Common Stock shall be
deemed to have been purchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Paragraph 11. 
 (F) Securities Law Restrictions. Regardless of whether the offering and sale of Common Stock under the Plan have been registered under the
Securities Act or have been registered or qualified under the securities laws of any state, the Company at its discretion may impose restrictions upon the sale, pledge or other transfer of such Common Stock (including the placement of appropriate
legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve compliance with the Securities Act, the securities laws of any state
or any other law. 
  

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 (G) Market Stand-Off. In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under the Securities Act, including the Company’s initial public offering, the Optionee shall not directly or indirectly sell, make any short sale of, loan, hypothecate,
pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of the foregoing transactions with respect to, any
Common Stock acquired under an Option without the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time following the date of the final prospectus for
the offering as may be requested by the Company or such underwriters. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the securities acquired under an Option until the end of the applicable
stand-off period. 
 12. Company’s Right to Purchase Shares. 
 (A) Company’s Right to Purchase Shares in Event of Termination of Employment or in the Event of Competition. The Company shall have the right
to purchase any Common Stock (which for purposes of this Paragraph 12 includes any securities issued in exchange for or as a result of Common Stock) acquired by an Optionee under Options granted under this Plan in the event that the Optionee
is (i) terminated for “cause”, (ii) after being continuously employed by the Company for less than 24 months, resigns or is terminated without “cause”, (iii) becomes disabled or dies after being continuously
employed by the Company for less than 24 months, or (iv) in the event that the Optionee at any time engages in competition (as defined in Paragraph 4(G) above) during his employment or anytime thereafter. The purchase 

  

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price for the Common Stock shall be the exercise price paid by the Optionee plus an amount necessary to provide an annualized 10% rate of return from the
date the Common Stock was acquired upon exercise of an Option. However, in the event that the Optionee’s employment is terminated without “cause,” Optionee dies or becomes disabled, and at such time the Company is a reporting company
under the 1934 Act, the Company shall have a right to purchase any Common Stock acquired by the Optionee under Options granted under this Plan for a purchase price equal to the fair market value of the Common Stock determined on the date of
termination in accordance with Paragraph 4(A) above (Minimum Option Price). For the purposes hereof, termination for “cause” shall mean termination of employment by the Company made on the basis of the conduct (whether acts or
omissions) or performance of the Optionee. For all purposes under this Plan and each Option Agreement, the Administrator shall have the sole right to make the determination of whether or not the termination is for “cause” and whether or
not an Optionee “engages in competition” and such determination shall be conclusive and binding on the Optionee. 
 (B) Exercise
of Right of Purchase. If the Company desires to exercise its right to purchase such Common Stock, it shall within 120 days after the date employment terminates or the Company knows that Optionee has died, becomes disabled or engages in
competition, as applicable, (i) deliver a notice of exercise to the address for the Optionee on the books and records of the Company at such time, and (ii) make available at the offices of the Company, a check in the amount of the purchase
price for the Common Stock. 
 (C) Termination of Rights as Stockholder. If the Company makes the consideration available, at the time
and place and in the amount and form provided for in this Paragraph 12 for the Common Stock to be purchased in accordance with this Paragraph 12, then after such time the person from whom such Common Stock is to be purchased shall
no longer 

  

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have any rights as a holder of such Common Stock (other than the right to receive payment of such consideration as set forth herein). Such Common Stock shall
be deemed to have been purchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Paragraph 12. 
 13. Governing Law; Construction. The validity and construction of the Plan and the instruments evidencing Options shall be governed by the laws of
the State of Delaware. In construing this Plan, the singular shall include the plural and the masculine gender shall include the feminine and neuter, unless the context otherwise requires. 
 14. No Limitations on Company’s Right to Grant Options. Nothing in this Plan is intended to limit the right of the Company to issue options
to purchase Common Stock or any other security with terms inconsistent with or in addition to the terms described above. 
 15. Provision
for Payment. To the extent that the exercise of an Option relates back to a Significant Transaction, the Company shall make adequate provision to ensure that the Optionee receives the securities, cash or other item of value, which he/she would
have received had he/she become a stockholder on the date of the Significant Transaction. 
 16. Execution of Stockholder Agreement.
As a condition to exercising any Option, the Administrator shall require that the Optionee execute documentation in a form satisfactory to the Administrator and the Company to ensure that the Optionee will comply with the terms and provisions of
(a) the Plan, (b) the Option Agreement, (c) any stockholder agreement or similar agreement generally required by the Company to be entered into by the stockholders of the Company or otherwise required to be executed by persons
exercising options under any option plan maintained by the Company, and (d) any other agreement that the Administrator may reasonably request. 
  

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 OPTION EXERCISE AGREEMENT – 1999 ASSUMED STOCK OPTION PLAN 
                                      (the
“Optionee”) is a party to a Non-Statutory Unit Option Agreement with Rackspace, Ltd., a Texas limited partnership, dated
                         (the “Option Agreement”), evidencing rights of the Optionee to purchase certain limited
partnership units of Rackspace, Ltd. The Option Agreement was subject to and governed by the terms and provisions of the Rackspace, Ltd. 1999 Unit Option Plan (the “1999 Unit Option Plan”). 
 In August of 2001, Rackspace, Ltd. executed a Plan of Reorganization with, among others, Rackspace, Inc., (formerly known as Macro Holdings, Inc.) a
Delaware corporation (the “Company”), pursuant to which the limited partners of Rackspace, Ltd. converted their limited partnership interests in Rackspace, Ltd. into shares of stock of the Company. Pursuant to the Plan of Reorganization,
the Company assumed the 1999 Unit Option Plan of Rackspace, Ltd., and the rights of optionholders, including rights of the Optionee, under the 1999 Unit Option Plan were converted into rights to acquire shares of the Company’s $0.001 par value
Common Stock (the “Common Stock”). In connection with such assumption and conversion, the Macro Holding, Inc. 1999 Assumed Stock Option Plan (the “1999 Assumed Stock Option Plan”) replaced the 1999 Unit Option Plan as of August
of 2001. 
 Pursuant to the terms of this Option Exercise Agreement – 1999 Assumed Stock Option Plan (the “Exercise
Agreement”), the Option Agreement, and the 1999 Assumed Stock Option Plan, the Optionee desires to exercise his/her rights to purchase              shares of Common Stock (the
“Exercised Shares”), of the              shares of Common Stock for which the Optionee received options pursuant to the Option Agreement. 
 1. Acknowledgement of 1999 Assumed Stock Option Plan. The Optionee hereby acknowledges and agrees that the 1999 Unit Option Plan was
replaced and superseded by the 1999 Assumed Stock Option Plan in August of 2001, and that the Option Agreement has been governed by the 1999 Assumed Stock Option Plan since August of 2001. 
 2. Acknowledgment of Receipt of Disclosure Materials. The Optionee hereby acknowledges that he has previously received a copy of the
Company’s Disclosure Package, which includes, but is not limited to, a Disclosure Memorandum which highlights the risk factors involved in this investment, a copy of the 1999 Assumed Stock Option Plan, a document containing a summary of its
material terms, a copy of the Option Agreement and financial statements of the Company, and Optionee acknowledges that he has had a reasonable amount of time to review such materials prior to execution hereunder. 
 3. Exercise of Options. Subject to the terms of this Exercise Agreement, the Option Agreement and the 1999 Assumed Stock Option Plan, the
Optionee hereby exercises his/her rights to purchase the Exercised Shares for a per share purchase price of $            , for a total purchase price for all Exercised Shares of
$             (the “Aggregate Purchase Price”). 
 4.
Delivery of Aggregate Purchase Price and Tax Amount. Optionee shall deliver to the Company: (i) the Aggregate Purchase Price, and (ii) the applicable federal and state 

  

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tax withholdings amount (the “Withheld Taxes”). Optionee and the Company hereby agree that the total amount of Withheld Taxes, shall be
$            . The Company shall remit the Withheld Taxes to the appropriate taxing authorities on behalf of Optionee. Optionee may have additional tax remittance obligations if the
Optionee’s actual taxes attributable to the exercise of the Exercised Shares exceed the amount of Withheld Taxes. Optionee shall be responsible for any such additional taxes and hereby releases the Company and its subsidiaries, affiliates,
representatives, successors and assigns from all responsibilities and liabilities associated with the payment of such additional taxes. 
 5. Common Stock to be Received by Optionee. In accordance with Optionee’s exercise of the Exercised Shares pursuant to the terms set forth herein, Optionee shall receive a stock certificate representing the Exercised
Shares, dated as of the Exercise Date (as hereinafter defined) (the “Stock Certificate”). The issuance of such Exercised Shares to Optionee shall be deemed to occur on the Exercise Date. 
 6. Stock Certificate Legend. The parties hereto agree that the Stock Certificate shall bear the following legend: 
 “THE SECURITIES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE
TERMS OF AN OPTION EXERCISE AGREEMENT – 1999 ASSUMED STOCK OPTION PLAN BETWEEN THE COMPANY AND THE REGISTERED HOLDER (THE “HOLDER”) OF SUCH SECURITIES, THE OPTION AGREEMENT BETWEEN THE COMPANY AND THE HOLDER, AND THE MACRO HOLDING,
INC. 1999 ASSUMED STOCK OPTION PLAN (COLLECTIVELY, THE “AGREEMENTS”). SUCH AGREEMENTS CONTAIN RESTRICTIONS ON TRANSFER AND GRANTS TO THE COMPANY CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF SUCH SECURITIES AND CERTAIN
MARKET STAND-OFF OBLIGATIONS AND OTHER RESTRICTIONS AND OBLIGATIONS. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH COPIES OF SUCH AGREEMENTS TO THE HOLDER HEREOF WITHOUT CHARGE. THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH
REGISTRATION IS NOT REQUIRED.” 
 “IN ADDITION TO THE TRANSFER RESTRICTIONS DESCRIBED ABOVE, THE SECURITIES REPRESENTED HEREBY ARE
SUBJECT TO A VOTING AGREEMENT REGARDING THE ELECTION OF MEMBERS OF THE COMPANY’S BOARD OF DIRECTORS. THE 

  

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SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH VOTING AGREEMENT TO THE HOLDER HEREOF WITHOUT CHARGE.” 
 7. Termination of Certain Rights to Purchase Common Stock Under Option Agreement and Plan. In accordance with Optionee’s exercise of
the Exercised Shares, the parties hereto agree that upon the Company’s written acceptance of this Exercise Agreement, the Optionee’s rights to purchase              shares
of Common Stock under the Option Agreement are terminated. 
 8. Acknowledgement of Transfer Restrictions. The parties hereto
agree and acknowledge that upon issuance of the Stock Certificate for the Exercised Shares and at all times subsequent to such issuance, Optionee shall be bound by all restrictions and obligations contained in the Option Agreement and the 1999
Assumed Stock Option Plan, including, without limitation, all restrictions on transfer, repurchase provisions, rights of first refusal, and market stand-off obligations. 
 9. Agreement to Execute and be Bound by Voting Agreement. As a condition to exercising the Exercised Shares and receiving the Stock Certificate for the Exercised Shares, Optionee hereby agrees to execute
and deliver to the Company the Voting Agreement, in the form attached hereto as Exhibit A, contemporaneously with the execution and delivery of this Exercise Agreement. Furthermore, Optionee agrees to be bound by any Voting Agreement, and any
amendment thereto, subsequently adopted by the holders of a majority of the shares of stock of the Company and further hereby appoints the Company as its agent and attorney-in-fact to execute any such Voting Agreement, or amendment thereto, in the
name and on behalf of the Optionee. 
 10. Agreement to Execute and Deliver the Investment Representation Statement. As a
condition to exercising the Exercised Shares and receiving the Stock Certificate for the Exercised Shares, Optionee hereby agrees to execute and deliver to the Company the Investment Representation Statement, in the form attached hereto as
Exhibit B, contemporaneously with the execution and delivery of this Exercise Agreement. 
 11. Agreement to Execute and File
IRS Section 83(b) Election Statement. Optionee hereby agrees to complete and execute an election statement under Section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Exercised Shares, in the form
attached hereto as Exhibit C. Optionee further agrees to: 
 (a) File such completed and executed Section 83(b)
election statement with the Internal Revenue Office with whom the Optionee files his/her federal income tax return no later than 30 days following the Exercise Date; 
 (b) Furnish a copy of the filed Section 83(b) election statement to the Company no later than 30 days following the Exercise Date;
and 
  

 18 

 (c) Retain an executed copy of the Section 83(b) election statement and file such
copy with his/her 2006 federal income tax return. 
 12. Governing Law. THE VALIDITY AND CONSTRUCTION OF THIS EXERCISE
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE. 
 13. Exercise Date. The parties hereto agree that the
effective date of this Exercise Agreement and the date of issuance of the Exercised Shares hereunder is                     , 2008 (the
“Exercise Date”).  
  

							
	SUBMITTED BY:	 		 	
			
	OPTIONEE:	 		 	
			
	  
	 		 	
	  
	 		 	

							
			
	ACCEPTED BY:	 		 	
			
	RACKSPACE, INC., a Delaware corporation	 		 	
				
	By:	 	  
	 		 	
				
	Name:	 	  
	 		 	
				
	Title:	 	  
	 		 	
			
	  
	 		 	
	Date Received	 		 	

  

 19 

 Attachments: 
 Exhibit A – Voting Agreement 
 Exhibit B – Investment Representation Statement 
 Exhibit C – IRS Section 83(b) Election Statement 
  

 20 

 Exhibit A 
 VOTING AGREEMENT 
 (See Attached) 
  

 21 

 VOTING AGREEMENT 
 This Voting Agreement (the “Agreement”) is made effective as of the          day of
                    , 2008 (the “Effective Date”), by and among Rackspace, Inc., a Delaware corporation (the “Company”),
and                      (the “Stockholder”). 
 The parties hereto agree that Stockholder shall be bound by all Company stockholder voting provisions set forth below with respect to all shares of stock issued to Stockholder pursuant to an exercise of Company stock
options: 
 1. Groups of Stockholders. For purposes of this Agreement, certain holders of the Company’s $0.001 par value
common stock are designated as members of the following groups, as indicated below:  
 Group B Stockholder 

Trout, Ltd., a Texas 
 limited
partnership (“Trout”) 
 Group C Stockholders 
 First Inning Investors, 
 L.P. (“First
Inning”) 
 Isom Capital Partners I, 
 L.P. (“Isom”) 
 The Hamilton Companies LLC, 
 a Colorado limited liability 
 company
(“Hamilton”) 
 Beaulieu River Texas, Ltd., a 
 Texas limited partnership (formerly 
 Beaulieu River Capital LC and 
 formerly Weston Investment 
 Interest,
L.L.C.) (“Beaulieu”) 
 MiniPat & Company, Ltd., 
 a Texas limited partnership 
 (“MiniPat”) 
 2M Technology Ventures, 
 L.P. (“2M”) 
 Red Hat, Inc. (“Red Hat”) 

 Norwest Venture Partners VIII, 
 L.P. (“Norwest”) 
 NVP
Entrepreneurs Fund VIII, 
 LP (“NVP”) 
 Felda Hardymon (“Hardymon”) 
 George Kadifa (“Kadifa”) 
 Jerry Parrick (“Parrick”) 
 Robert
Powers (“Powers”) 
 Peggy Taylor (“Taylor”) 
 WS Investments (“WS”) 
 Tailwind
Capital Partners 2000, 
 L.P. (“Thomas Weisel”) 
 Sequoia Capital Franchise 
 Fund, L.P. (“Sequoia Fund”) 
 Sequoia Capital Franchise 
 Partners, L.P.
(“Sequoia Partners”) 
 2. Designation of Directors. The parties hereto agree that for so long as this Agreement is
in effect: (i) for so long as the Group C Stockholders (excluding Norwest, Red Hat, Thomas Weisel, Sequoia Partners and Sequoia Fund, NVP, Hardymon, Kadifa, Parrick, Powers, Taylor and WS who do not have a right to designate a director), and
excluding Hamilton to the extent that Hamilton continues to have the right to designate a director under Section (ii) below, hold at least 10% of the issued and outstanding Stock of the Company, such Stockholders shall have the right to
designate one director of the Company; (ii) Hamilton, for so long as Hamilton holds at least 2.5% of the issued and outstanding Stock of the Company (either directly or indirectly through its limited partner interest in Isom), shall have the
right to designate one director of the Company; and (iii) the Group B Stockholder, for so long as it holds at least 20% of the issued and outstanding Stock of the Company, shall have the right to designate up to five (5) directors of the
Company. Provided further, should the Group B Stockholder elect in writing to waive its right to designate any directors (so that it has no right to designate any director) in connection with a sale of securities of the Company which raises
$10,000,000 or more, then the Group C Stockholders and Hamilton shall also be deemed to waive their designation rights and this voting agreement shall terminate. For so long as this voting agreement is in effect, there shall be not more than seven
(7) directors of the Company, except upon the consent of the Group C Stockholders (meaning Group C Stockholders holding 65% or more of the outstanding Stock 

 
held by all of the Group C Stockholders but excluding Hamilton to the extent it still possess a designation right, Norwest, Red Hat, Thomas Weisel, Sequoia
Partners, Sequoia Fund, NVP, Hardymon, Kadifa, Parrick, Powers, Taylor and WS), and the approval of Hamilton (so long as Hamilton has a designation right). The designation of the director by the Group C Stockholders shall be determined by the Group
C Stockholders holding 65% or more of the outstanding Stock held by all of the Group C Stockholders (excluding for the purposes of such calculation Norwest, Red Hat, Thomas Weisel, Sequoia Partners, Sequoia Fund, NVP, Hardymon, Kadifa, Parrick,
Powers, Taylor and WS, who do not have a right to designate a director, and also excluding Hamilton for so long as Hamilton has a right to designate a director, and thereafter upon the approval of Group C Stockholders (including Hamilton) holding at
least 65% of the Stock held by the Group C Stockholders. 
 3. Proxy. In order to ensure that the shares of stock of the
Company are voted in the manner consistent with the foregoing Section 2, the Stockholder hereby irrevocably appoints: (i) the Group B Stockholder, as proxy with full power of substitution, to vote (by written consent or otherwise) any and
all shares of the capital stock of the Company held or owned by or standing in the name of such Stockholder on the Company’s books, as well as any additional shares or other securities issued to such Stockholder which are derivative of such
stock, whether as a result of any stock-split, reorganization, recapitalization, merger or other business transaction, for the purpose of electing five (5) directors of the Company in a manner consistent with the foregoing Section 2;
(ii) Hamilton, as proxy with full power of substitution, to vote (by unanimous written consent or otherwise) any and all shares of the capital stock of the Company held or owned by or standing in the name of such Stockholder on the
Company’s books, as well as any additional shares or other securities issued to such Stockholder which are derivative of such stock, whether as a result of any stock-split, reorganization, recapitalization, merger or other business transaction,
for the purpose of electing one (1) director of the Company in a manner consistent with the foregoing Section 2; and (iii) the designee of the Group C Stockholders chosen by the Group C Stockholders holding not less than 65% of the
shares held by all of the Group C Stockholders (but, excluding Norwest, Red Hat, Thomas Weisel, Sequoia Partners, Sequoia Fund, NVP, Hardymon, Kadifa, Parrick, Powers, Taylor and WS), as proxy with full power of substitution, to vote (by unanimous
written consent or otherwise) any and all shares of the capital stock of the Company held or owned by or standing in the name of such Stockholder on the Company’s books, as well as any additional shares or other securities issued to such
Stockholder which are derivative of such stock, whether as a result of any stock-split, reorganization, recapitalization, merger or other business transaction, for the purpose of electing one (1) director of the Company in a manner consistent
with the foregoing Section 2. This irrevocable proxy is coupled with an interest and is binding upon the Stockholder and any transferee of the Stockholder. This proxy shall terminate at such time or times that the rights to designate and elect
directors terminate (whether by express waiver or otherwise) in accordance with the terms of this Agreement. 
 4. Amendments.
This Agreement may be amended by the Company so long as the substance of such amendment is applicable to the holders of at least a majority of the shares of the Company’s outstanding voting stock, either through such amendment or through a
separate agreement. 

 5. Governing Law. THE VALIDITY AND CONSTRUCTION OF THIS AGREEMENT SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF DELAWARE. 
 6. Termination. This Agreement shall terminate and be of no further force and effect upon the
date of consummation of the Company’s sale of Common Stock in a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act of 1933, as amended resulting in aggregate cash proceeds to the Company
of at least $10,000,000 million. 
 This Agreement is executed and delivered to be effective on the date first mentioned above. 
  

			
	 COMPANY:

	
	Rackspace, Inc., a Delaware corporation
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	STOCKHOLDER:
	
	  

	  

 Exhibit B 
 INVESTMENT REPRESENTATION STATEMENT 
 (See Attached) 

 INVESTMENT REPRESENTATION STATEMENT 
  

					
	PURCHASER:	  	  
	  	
			
	COMPANY:	  	RACKSPACE, INC.	  	
		
	SECURITY:	  	$0.001 PAR VALUE COMMON STOCK
			
	 NUMBER OF ISSUED
 SHARES OF
 COMMON STOCK:
	  	             SHARES	  	
			
	DATE:	  	                    , 2008	  	

 In connection with the purchase of the above-listed Securities, the undersigned Purchaser
represents to the Company the following: 
 (a) Purchaser is aware of the Company’s business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. Purchaser is acquiring these Securities for investment for Purchaser’s own account only and not with a view to, or for
resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). 
 (b) Purchaser acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein. In this connection, Purchaser understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if Purchaser’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a
deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future. Purchaser further understands that the Securities must be held indefinitely unless they
are subsequently registered under the Securities Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the Company is under no obligation to register the Securities. Purchaser understands that
the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not required in the opinion of counsel satisfactory to the Company, and with
any other legend required under applicable state securities laws. 
 (c) Purchaser is familiar with the provisions of Rule 701 and Rule 144,
each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public 

 
offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the
Option to Purchaser, the exercise will be exempt from registration under the Securities Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the
“1934 Act”), ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the 1934 Act); and, in the case
of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three month period not exceeding the limitations specified in Rule 144(e), and (4) the timely
filing of a Form 144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option,
then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Securities were sold by the Company or the date the
Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than two years, the satisfaction
of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above. 
 (d) Purchaser further
understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that,
notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and
otherwise than pursuant to Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk. Purchaser understands that no assurances can be given that any such other registration exemption will be available in such event. 
  

			
	Purchaser:
	
	  

	(Signature)
	
	  

	(Print Name)
		
	Date:	 	  

 Exhibit C 
 Form of IRS Section 83(b) Election 
 (See Attached) 

 Section 83(b) Election 
 ELECTION UNDER SECTION 83(b) OF THE 
 INTERNAL REVENUE CODE 
 The undersigned Taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, to include the excess, if any,
of the fair market value of the property described below at the time of transfer over the amount paid for such property, as compensation for services in the calculation of: (1) regular gross income; (2) alternative minimum taxable income
or (3) disqualifying disposition gross income, as the case may be. 
  

					
	1.	 	TAXPAYER’S NAME:	  	  

			
		 	TAXPAYER’S ADDRESS:	  	  

			
		 		  	  

			
		 	SSN:	  	  

		
	2.	 	The property with respect to which the election is made is described as follows: Common Stock of Rackspace, Inc. (the “Company”), which is a corporation
for whom the Taxpayer performs services. These shares of Common Stock were issued by the Company to and were purchased by Taxpayer.
		
	3.	 	The date on which the shares were transferred was on or after
                                        
and this election is made for calendar year 2008.
		
	4.	 	The shares received are subject to the following restriction: The shares are subject to transfer restrictions, including rights of first refusal and market stand-off obligations,
as well as voting agreement restrictions.
		
	5.	 	The fair market value of the shares (without regard to restrictions other than restrictions that by their terms will never lapse) was
$             per share.
		
	6.	 	The amount paid by Taxpayer for such shares was $             per share.
		
	7.	 	The Taxpayer has submitted a copy of this statement to the Company.

 THIS ELECTION MUST BE FILED WITH THE INTERNAL REVENUE SERVICE (“IRS”), AT
THE OFFICE WHERE THE TAXPAYER FILES ANNUAL INCOME TAX RETURNS, WITHIN 30 DAYS AFTER THE DATE OF TRANSFER OF THE SHARES, AND MUST ALSO BE FILED WITH THE TAXPAYER’S INCOME TAX RETURNS FOR THE CALENDAR YEAR. THE ELECTION CANNOT BE REVOKED
WITHOUT THE CONSENT OF THE IRS. 
  

							
		 		 		 	TAXPAYER:
	Dated:2003 Stock Option Plan

 Exhibit 10.3 
 MACRO HOLDING, INC. 
  
  
 2003 STOCK
OPTION PLAN 
  
  
 1.
Purposes of the Plan. The purposes of this Stock Option Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and
Consultants and to promote the success of the Company’s business. Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 hereof.

 (b) “Applicable Laws” means the requirements relating to the administration of stock option plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Options are granted under the
Plan. 
 (c) “Board” means the Company’s Board of Directors. 
 (d) “Change of Control” means (i) the acquisition of the Company by another entity by means of any transaction or series of related
transactions (including, without limitation, any merger, consolidation or other form of reorganization in which outstanding shares of the Company are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring
entity or its subsidiary, but excluding any transaction effected primarily for the purpose of changing the Company’s state of incorporation), unless the Company’s stockholders of record as constituted immediately prior to such
transaction or series of related transactions will, immediately after such transaction or series of related transactions hold at least a thirty-five percent (35%) of the voting power of the surviving or acquiring entity or (ii) a sale of
all or substantially all of the assets of the Company. 
 (e) “Code” means the Internal Revenue Code of 1986, as amended.

 (f) “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 hereof.

 (g) “Common Stock” means the Company’s common stock, par value $0.001. 
 (h) “Company” means Macro Holding, Inc., a Delaware corporation. 
 (i) “Consultant” means any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services to
such entity. 

 (j) “Director” means a member of the Board. 
 (k) “Employee” means any person, including officers and Directors, employed by
the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day of such leave
any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the
Company shall be sufficient to constitute “employment” by the Company. 
 (l) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
 (m) “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the
Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of
determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (ii) If the Common
Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the day of determination; or 
 (iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator. 
 (n) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the
meaning of Section 422 of the Code. 
 (o) “Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option. 
 (p) “Option” means a stock option granted pursuant to the Plan. 
 (q) “Option Agreement” means a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions
of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  

 - 2 - 

 (r) “Option Exchange Program” means a program whereby outstanding Options are exchanged
for Options with a lower exercise price. 
 (s) “Optioned Stock” means the Common Stock subject to an Option. 
 (t) “Optionee” means the holder of an outstanding Option granted under the Plan. 
 (u) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

 (v) “Plan” means this 2003 Stock Option Plan. 
 (w) “Service Provider” means an Employee, Director or Consultant. 
 (x) “Share” means a share of the Common Stock, as adjusted in accordance with Section 12 below. 
 (y) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the
Code. 
 3. Stock Subject to the Plan. Subject to the provisions of Section 12 below, the maximum aggregate
number of Shares that may be subject to option and sold under the Plan is 2,700,000 Shares; all of which may be granted as Incentive Stock Options. The Shares may be authorized but unissued, or reacquired Common Stock. 
 If an Option expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Option Exchange Program, the
unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated). However, Shares that have actually been issued under the Plan, upon exercise of an Option, shall not be
returned to the Plan and shall not become available for future distribution under the Plan. 
 4.
Administration of the Plan. 
 (a) Administrator. The Plan shall be administered by the Board or a Committee
appointed by the Board, which Committee shall be constituted to comply with Applicable Laws. 
 (b)
Powers of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the
Administrator shall have the authority in its discretion: 
 (i) to determine the Fair Market Value; 
 (ii) to select the Service Providers to whom Options may from time to time be granted hereunder; 
  

 - 3 - 

 (iii) to determine the number of Shares to be covered by each Option granted hereunder; 
 (iv) to approve forms of agreement for use under the Plan; 
 (v) to determine the terms and conditions, of any Option granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be
based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or the Common Stock relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine; 
 (vi) to reduce the exercise price of any Option to the then current Fair Market Value if the Fair
Market Value of the Common Stock covered by such Option has declined since the date the Option was granted; 
 (vii) to initiate an Option
Exchange Program; 
 (viii) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations
relating to sub-plans established for the purpose of satisfying applicable foreign laws; 
 (ix) to allow Optionees to satisfy withholding
tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by Optionees to have Shares withheld for this purpose shall be made in such form and under such conditions as the
Administrator may deem necessary or advisable; and 
 (x) to construe and interpret the terms of the Plan and Options granted pursuant to
the Plan. 
 (c) Effect of Administrator’s Decision. All decisions, determinations and interpretations of the
Administrator shall be final and binding on all Optionees. 
 5. Eligibility. Nonstatutory Stock Options may be granted to Service
Providers. Incentive Stock Options may be granted only to Employees. 
 6. Limitations. 
 (a) Incentive Stock Option Limit. Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year
(under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such 

  

 - 4 - 

 
Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the
order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 
 (b) At-Will Employment. Neither the Plan nor any Option shall confer upon any Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider with the Company, nor shall it
interfere in any way with the Optionee’s right or the Company’s, a Parent’s or a Subsidiary’s right to terminate such relationship at any time, with or without cause, and with or without notice. 
 7. Term of Plan. Subject to stockholder approval in accordance with Section 18, the Plan shall become effective upon its adoption
by the Board. Unless sooner terminated under Section 14, it shall continue in effect for a term of ten (10) years from the later of (i) the effective date of the Plan or (ii) the date of the most recent Board approval of an
increase in the number of Shares reserved for issuance under the Plan. 
 8. Term of Option. The term of each Option shall be stated
in the Option Agreement; provided, however, that the term shall be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be
provided in the Option Agreement. 
 9. Option Exercise Price and Consideration. 
 (a) Exercise Price. The per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the
Administrator, but shall be subject to the following: 
 (i) In the case of an Incentive Stock Option 
 (1) granted to an Employee who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 
 (2) granted to any other Employee, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (ii) In the case of a Nonstatutory Stock Option granted to any Service Provider, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant; provided that if the Administrator determines in its sole and absolute discretion that extraordinary circumstances exist, the exercise price may be less than the Fair Market Value. 
 (iii) Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other
corporate transaction. 
  

 - 5 - 

 (b) Forms of Consideration. The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). Such consideration may consist of, without limitation, (1) cash,
(2) check, (3) promissory note, (4) other Shares, provided Shares acquired directly from the Company (x) have been owned by the Optionee for more than six (6) months on the date of surrender, and (y) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised, (5) consideration received by the Company under a cashless exercise program implemented by the Company in connection
with the Plan, or (6) any combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to
benefit the Company. Notwithstanding the foregoing, the Administrator may permit an Optionee to exercise such Optionee’s Option by delivery of a full-recourse promissory note secured by the purchased Shares. The terms of such promissory note
shall be determined by the Administrator in its sole discretion; provided, however, in the case of a Delaware corporation, the par value of the Shares purchased upon the exercise of an Option shall not be paid through the use of a promissory
note. 
 10. Exercise of Option. 
 (a) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions as determined by the
Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vesting of Options granted hereunder shall be suspended during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share.

 An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or
of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 12. 
 Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale
under the Option, by the number of Shares as to which the Option is exercised. 
 (b) Termination of Relationship as a Service
Provider. If an Optionee ceases to be a Service Provider, such Optionee may exercise such Optionee’s Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of
termination (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). If, 

  

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on the date of termination, the Optionee is not vested as to such Optionee’s entire Option, the Shares covered by the unvested portion of the Option
shall revert to the Plan. If, after termination, the Optionee does not exercise such Optionee’s Option within the time specified in the Option Agreement, the Option shall terminate to the extent not exercised, and the Shares covered by such
Option shall revert to the Plan. 
 11. Limited Transferability of Options; Divorce. Unless determined otherwise by the Administrator,
Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. Any
Option purported to be transferred to the spouse or former spouse of an Optionee pursuant to any court order or decree or settlement agreement issued or entered into incident to any divorce action shall terminate to the extent transferred, whether
or not any such court order or decree or settlement agreement purports to merely recognize or document a community interest of such spouse or former spouse. 
 12. Changes in Capitalization; Merger or Change of Control. 
 (a) Changes in Capitalization.
Subject to any required action by the stockholders of the Company, the number and type of Shares that have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Option, and the number and type of Shares covered by each outstanding Option, as well as the price per Share covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in
the number or type of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of the Common Stock effected
without receipt of consideration by the Company. The conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number, type or price of Shares subject to an Option. 
 (b) Merger or
Change of Control. In the event of (x) a merger of the Company with or into another entity or (y) a Change of Control, each outstanding Option shall be assumed or an equivalent option substituted by the successor entity (or a Parent or
Subsidiary of the successor entity). In the event that the successor entity (or a Parent or Subsidiary of the successor entity) refuses to assume or substitute for an Option, the Administrator shall determine the rights of the Optionee under the
Option, which may include termination of the Option and such determination shall be final and binding on the Optionee. For the purposes of this paragraph, an Option shall be considered assumed if, following the merger or Change of Control, the
Option confers the right to purchase or receive, for each Share of Optioned Stock subject to such Option immediately prior to the merger or Change of Control, the consideration (whether stock, cash, or other securities or property) received in the
merger or Change of Control by holders of Common Stock for each Share held on the effective date of the merger or Change of Control (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority
of the outstanding Shares); provided, however, that if such 

  

 - 7 - 

 
consideration received in the merger or Change of Control is not solely common stock of the successor entity or its Parent, the Administrator may, with the
consent of the successor entity, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, to be solely common stock of the successor entity or its Parent equal in fair
market value to the per share consideration received by holders of Common Stock in the merger or Change of Control. 
 13.
Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the Administrator makes the determination granting such Option, or such later date as is determined by the Administrator.
Notice of the determination shall be given to each Service Provider to whom an Option is so granted within a reasonable time after the date of such grant. 
 14. Amendment and Termination of the Plan. 
 (a) Amendment and
Termination. The Board may at any time amend, alter, suspend or terminate the Plan. 
 (b) Stockholder Approval. The Board shall
obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 
 (c)
Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan
prior to the date of such termination. 
 15. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b) Investment Representations. As a condition to the exercise of an Option, the Administrator may require the person exercising such Option to represent and warrant at the time of any such exercise that the
Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
 16. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained. 
  

 - 8 - 

 17. Reservation of Shares. The Company, during the term of this Plan, shall at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 18. Stockholder
Approval. The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable
Laws. 
  

 - 9 - 

 2003 STOCK OPTION PLAN 
 EXERCISE NOTICE 
 Rackspace, Inc. 
 9725 Datapoint Drive, Suite 100 
 San Antonio, Texas 78229 
 Attn: Secretary 
 1. Exercise of Option. Effective as of today,
                    , 200    , the undersigned (“Optionee”) hereby elects to exercise
Optionee’s option to purchase              shares of the Common Stock (the “Shares”, which term for purposes of this Exercise Notice includes any securities
issued in exchange for or as a result of the Common Stock) of Rackspace, Inc. (the “Company”) under and pursuant to the 2003 Stock Option Plan (the “Plan”) and the Stock Option Agreement dated
                     (the “Option Agreement”). Capitalized terms not otherwise herein shall have the same meaning as in the
Option Agreement. 
 2. Delivery of Payment. Optionee herewith delivers to the Company the full purchase price of the Shares, as set
forth in the Option Agreement, and any and all withholding taxes due in connection with the exercise of the Option. 
 3. Representations
of Optionee. Optionee acknowledges that Optionee has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions. 
 4. Rights as Stockholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Shares shall be issued to the Optionee as
soon as practicable after the Option is exercised in accordance with the Option Agreement. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in
Section 12 of the Plan. 
 5. Company’s Right of First Refusal. Optionee shall not sell or otherwise transfer any
Shares (including transfers by gift or operation of law) until 36 months after Optionee becomes a Service Provider. After such 36 month period, before any Shares held by Optionee or any transferee (either being sometimes referred to herein as the
“Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions set forth in this
Section 5 (the “Right of First Refusal”). 
 (a) Notice of Proposed Transfer. The Holder of the Shares
shall deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee
(“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares (the
“Offered Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 

 (b) Exercise of Right of First Refusal. At any time within thirty (30) days after receipt of
the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase up to all of the Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price determined in
accordance with subsection (c) below. 
 (c) Purchase Price. The purchase price (the “Purchase Price”) for the
Shares purchased by the Company or its assignee(s) under this Section shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board
of Directors of the Company in good faith. 
 (d) Payment. Payment of the Purchase Price shall be made, at the option of the Company
or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within sixty
(60) days after receipt of the Notice or, if later, at the time set forth in the Notice. If the Company makes the consideration available, at the time and place and in the amount and form provided for in this Section for the Shares to be
purchased pursuant to the Right of First Refusal, then after such time the person from whom such Shares are to be purchased shall no longer have any rights as a holder of the Shares (other than the right to receive payment of such consideration as
set forth herein). Such Shares shall be deemed to have been purchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Section. 
 (e) Holder’s Right to Transfer. To the extent the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not
purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer
is consummated within 90 days after the date of the Notice, that any such sale or other transfer is effected in accordance with any applicable securities laws and that the Proposed Transferee executes each agreement requested by the Company with
respect to such Shares and agrees in writing that the provisions of this Section shall continue to apply to the Shares in the hands of such Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee
within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 
 (f) Exception for Certain Family Transfers. Anything to the contrary contained in this Section notwithstanding, the transfer of any or all of the
Shares during the Optionee’s lifetime or on the Optionee’s death by will or intestacy to the Optionee’s immediate family or a trust for the benefit of the Optionee’s immediate family shall be exempt from the provisions of the
Right of First Refusal. “Immediate Family” as used herein shall mean spouse or lineal descendant. In such case, (i) the transferee or other recipient shall (A) receive and hold the Shares so transferred subject to the
provisions of this Section and (B) execute each agreement requested by the Company with respect to such Shares, and (ii) there shall be no further transfer of such Shares except in accordance with the terms of this Section. 
  

 11 

 (g) Termination of Right of First Refusal. The Right of First Refusal shall terminate as to any
Shares upon the first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act. 
 6. Company’s Right to Repurchase Shares. 
 (a) Termination of Employment; Competition. The Company shall have the right to purchase any Shares acquired by Optionee in the event that Optionee (i) is terminated for “cause”, (ii) before being continuously
employed by the Company for more than 36 months, resigns or is terminated without “cause”, or (iii) at any time Engages in Competition. The purchase price for the Shares shall be the exercise price paid by Optionee plus an amount
necessary to provide an annualized 6% rate of return from the date the Shares were acquired upon exercise of the Option. However, if (i) Optionee’s employment is terminated without “cause,” and (ii) at such time the Company
is a reporting company under the Exchange Act, the purchase price for the Shares shall equal the Fair Market Value. For the purposes hereof, termination for “cause” shall mean termination of employment by the Company, a Parent or a
Subsidiary made on the basis of the conduct (whether acts or omissions) or performance of Optionee. The Administrator shall have the sole right to make the determination of whether or not the termination is for “cause.” Optionee agrees to
notify the Company in writing of each employer of Optionee and each person and entity to whom Optionee provides services for compensation from and after the date hereof so long as this Option remains outstanding and thereafter so long as Optionee or
any of Optionee’s transferees holds or has any interest in any Shares. 
 (b) Exercise of Right. If the Company desires to
exercise its right to purchase such Shares, it shall within 120 days after the date employment terminates or the Company knows that Optionee Engages in Competition, as applicable, (i) deliver a notice of exercise to Optionee, and (ii) make
available at the offices of the Company, a check in the amount of the purchase price for the Shares. If the Company makes the consideration available, at the time and place and in the amount and form provided for in this Section for the Shares to be
purchased pursuant to the Company’s repurchase rights, then after such time the person from whom such Shares are to be purchased shall no longer have any rights as a holder of the Shares (other than the right to receive payment of such
consideration as set forth herein). Such Shares shall be deemed to have been purchased in accordance with the applicable provisions hereof, whether or not the certificate(s) therefor have been delivered as required by this Section. 
 7. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition
of the Shares. Optionee represents that Optionee has consulted and will consult with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Shares and that Optionee is not relying on the Company or any of
its agents or representatives for any tax advice. 
  

 12 

 8. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto,
to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND
MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS, IN THE OPINION OF COUNSEL (WHICH MAY BE COUNSEL TO THE CORPORATION) SATISFACTORY TO THE
CORPORATION, SUCH REGISTRATION IS NOT REQUIRED. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER,
INCLUDING A 180-DAY MARKET STANDOFF AGREEMENT, A RIGHT OF FIRST REFUSAL AND REPURCHASE RIGHTS HELD BY THE CORPORATION AS SET FORTH IN AN EXERCISE NOTICE BETWEEN THE CORPORATION AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED
AT THE PRINCIPAL OFFICE OF THE CORPORATION. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THE SHARES. 
 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
 (c)
Refusal to Transfer. The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice or (ii) to treat as owner of
such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred. 
 9. Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors and assigns
of the Company; provided that if the Company assigns its repurchase rights and the fair market value of the Shares to be purchased by an assignee (as determined by the Administrator) (the “Repurchased Shares”) exceeds the
Company’s repurchase price for such Shares 

  

 13 

 
on the date of repurchase, the assignee shall pay to the Company cash equal to the difference between such fair market value and the repurchase price.
Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon Optionee and his or her heirs, executors, administrators, successors and assigns. 
 10. Interpretation. Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Optionee or by the Company forthwith to
the Administrator which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on all parties. 
 11. Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be delivered personally by hand or
by courier, mailed by United States first-class mail, postage prepaid, sent by facsimile or sent by electronic mail directed (a) if to the Optionee, at the Optionee’s address, facsimile number or electronic mail address set forth on the
signature page to the Option Agreement, or at such other address, facsimile number or electronic mail address as the Optionee may designate by ten (10) days’ advance written notice to the Company or (b) if to the Company, to its
principal executive office and directed to the attention of the President, or at such other address as the Company may designate by ten (10) days’ advance written notice to the Optionee. All such notices and other communications shall be
deemed given upon personal delivery, on the date of mailing, upon confirmation of facsimile transfer or when directed to the electronic mail address set forth on the signature page to the Option Agreement. With respect to any notice given by the
Company under any provision of the Delaware General Corporation Law or the Company’s charter or bylaws, the Optionee agrees that such notice may given by facsimile or by electronic mail. 
 12. Governing Law; Severability. This Exercise Notice is governed by the internal substantive laws, but not the choice of law rules, of Delaware.
In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, the remaining provisions hereof will continue in full force and effect. 
 13. Entire Agreement. The Plan and Option Agreement are incorporated herein by reference. This Exercise Notice, the Plan, the Option Agreement and
the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. 
 Furthermore, the Optionee hereby acknowledges that Optionee has previously received a copy of the Company’s Disclosure Package, which includes, but is not limited to, a Disclosure Memorandum which highlights the
risk factors involved in this investment, a copy of the 2003 Stock Option Plan, a document containing a summary of the Plan’s material terms, a copy of the Option Agreement, and financial statements of the Company, and finally, Optionee
acknowledges that Optionee has had a reasonable amount of time to review such materials prior to execution hereunder. 
  

 14 

							
	Submitted by:	 		 	Accepted by:
			
	OPTIONEE:	 		 	RACKSPACE, INC.
				
	  
	 		 	By:	 	  

	Signature	 		 		 	
	  
	 		 	Name:	 	  

	  
	 		 		 	
		 		 	Title:	 	  

		 		 		 	
		 		 	  

		 		 	Date Received

  

 15

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