Document:

agle-ex45_723.htm

Exhibit 4.5

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made as of March 16, 2021 by and between Aeglea BioTherapeutics, Inc., a Delaware corporation (the “Company”), and the persons listed on the attached Schedule A who are signatories to this Agreement (collectively, the “Investors”).  Unless otherwise defined herein, capitalized terms used in this Agreement have the respective meanings ascribed to them in Section 1.

RECITALS

WHEREAS, the Company and the Investors wish to provide for certain arrangements with respect to the registration of the Registrable Securities (as defined below) by the Company under the Securities Act (as defined below).

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, and other consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.
Definitions

1.1.Certain Definitions.  In addition to the terms defined elsewhere in this Agreement, as used in this Agreement, the following terms have the respective meanings set forth below:

(a)“Block Trade” shall mean an offering of Registrable Securities which requires both the Investors and the Company to enter into a sale agreement and is limited in scope of selling efforts as compared to an Underwritten Offering.

(b) “Board” shall mean the Board of Directors of the Company.

(c)“Commission” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

(d)“Common Stock” shall mean the common stock of the Company, par value $0.0001 per share.

(e)“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

(f) “Governmental Entity” shall mean any federal, state, local or foreign government, or any department, agency, or instrumentality of any government; any public international organization, any transnational governmental organization; any court of competent jurisdiction, arbitral, administrative agency, commission, or other governmental regulatory authority or quasi-governmental authority, any political party; and any national securities exchange or national quotation system. 

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(g)“Other Securities” shall mean securities of the Company, other than Registrable Securities (as defined below).  

(h) “Person” shall mean any individual, partnership, corporation, company, association, trust, joint venture, limited liability company, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof.

(i)“Registrable Securities” shall mean the shares of Common Stock and any Common Stock issued or issuable upon the exercise or conversion of any other securities (whether equity, debt or otherwise) of the Company now owned or hereafter acquired by any of the Investors. Registrable Securities shall cease to be Registrable Securities upon the earliest to occur of the following events: (i) such Registrable Securities have been sold pursuant to an effective Registration Statement; (ii) such Registrable Securities have been sold by the Investors pursuant to Rule 144 (or other similar rule), (iii) such Registrable Securities may be resold by the Investor holding such Registrable Securities without limitations as to volume or manner of sale pursuant to Rule 144; or (iv) ten (10) years after the date of this Agreement.  For purposes of this definition, in order to determine whether an Investor is an “affiliate” (as such term is defined and used in Rule 144, and including for determining whether volume or manner of sale limitations of Rule 144 apply) the parties will assume that all convertible securities (whether equity, debt or otherwise) have been converted into Common Stock without regard to any limitations or conversion applicable thereto.

(j)The terms “register,” “registered” and “registration” shall refer to a registration effected by preparing and filing a Registration Statement in compliance with the Securities Act, and such Registration Statement becoming effective under the Securities Act.

(k)“Registration Expenses” shall mean all expenses incurred by the Company in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, but shall not include Selling Expenses.

(l)“Registration Statement” means any registration statement of the Company filed with, or to be filed with, the Commission under the Securities Act, including the related prospectus, amendments and supplements to such registration statement, including pre- and post-effective amendments, and all exhibits and all material incorporated by reference in such registration statement as may be necessary to comply with applicable securities laws other than a registration statement (and related prospectus) filed on Form S-4 or Form S-8 or any successor forms thereto.

(m)“Rule 144” shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

(n)“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

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(o)“Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Registrable Securities, the fees and expenses of any legal counsel and any other advisors any of the Investors engage and all similar fees and commissions relating to the Investors’ disposition of the Registrable Securities.

(p)“Underwritten Offering” shall mean a public offering of Registrable Securities pursuant to an effective registration statement under the Securities Act (other than pursuant to a registration statement on Form S-4 or S-8 or any similar or successor form) which requires the Investors and the Company to enter into an underwriting agreement.  

 

Section 2.
Resale Registration Rights

2.1.Resale Registration Rights.

(a)Following demand by any Investor the Company shall file with the Commission a Registration Statement on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another appropriate form in accordance with the Securities Act) covering the resale of the Registrable Securities by the Investors (the “Resale Registration Shelf”), and the Company shall file such Resale Registration Shelf as promptly as reasonably practicable following such demand, and in any event within sixty (60) days of such demand.  Such Resale Registration Shelf shall include a “final” prospectus, including the information required by Item 507 of Regulation S-K of the Securities Act, as provided by the Investors in accordance with Section 2.7.  Notwithstanding the foregoing, before filing the Resale Registration Shelf, the Company shall furnish to the Investors a copy of the Resale Registration Shelf and afford the Investors an opportunity to review and comment on the Resale Registration Shelf.  The Company’s obligation pursuant to this Section 2.1(a) is conditioned upon the Investors providing the information contemplated in Section 2.7.  

(b)The Company shall use its reasonable best efforts to cause the Resale Registration Shelf and related prospectuses to become effective as promptly as practicable after filing.  The Company shall use its reasonable best efforts to cause such Registration Statement to remain effective under the Securities Act until the earlier of the date (i) all Registrable Securities covered by the Resale Registration Shelf have been sold or may be sold freely without limitations or restrictions as to volume or manner of sale pursuant to Rule 144 or (ii) all Registrable Securities covered by the Resale Registration Shelf otherwise cease to be Registrable Securities pursuant to the definition of Registrable Securities.  The Company shall promptly, and within two (2) business days after the Company confirms effectiveness of the Resale Registration Shelf with the Commission, notify the Investors of the effectiveness of the Resale Registration Shelf.

(c)Notwithstanding anything contained herein to the contrary, the Company shall not be obligated to effect, or to take any action to effect, a registration pursuant to Section 2.1(a):

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(i)if the Company has and maintains an effective Registration Statement on Form S-3ASR that provides for the resale of an unlimited number of securities by selling stockholders (a “Company Registration Shelf”); 

(ii)during the period forty-five (45) days prior to the Company’s good faith estimate of the date of filing of a Company Registration Shelf; or

(iii)if the Company has caused a Registration Statement to become effective pursuant to this Section 2.1 during the prior twelve (12) month period.

(d)If the Company has a Company Registration Shelf in place at any time in which the Investors make a demand pursuant to Section 2.1(a), the Company shall file with the Commission, as promptly as practicable, and in any event within fifteen (15) business days after such demand, a “final” prospectus supplement to its Company Registration Shelf covering the resale of the Registrable Securities by the Investors (the “Prospectus”); provided, however, that the Company shall not be obligated to file more than one Prospectus pursuant to this Section 2.1(d) in any six month period to add additional Registrable Securities to the Company Registration Shelf that were acquired by the Investors other than directly from the Company or in an underwritten public offering by the Company.  The Prospectus shall include the information required under Item 507 of Regulation S-K of the Securities Act, which information shall be provided by the Investors in accordance with Section 2.7.  Notwithstanding the foregoing, before filing the Prospectus, the Company shall furnish to the Investors a copy of the Prospectus and afford the Investors an opportunity to review and comment on the Prospectus.

(e)Deferral and Suspension.  At any time after being obligated pursuant to this Agreement to file a Resale Registration Shelf or Prospectus, or after any Resale Registration Shelf has become effective or a Prospectus is filed with the Commission, the Company may defer the filing of or suspend the use of any such Resale Registration Shelf or Prospectus, upon giving written notice of such action to the Investors with a certificate signed by the Principal Executive Officer or Principal Financial Officer of the Company stating that in the good faith judgment of the Board, the filing or use of any such Resale Registration Shelf or Prospectus covering the Registrable Securities would be seriously detrimental to the Company or its stockholders at such time  (including, without limitation, because the Company reasonably and in good faith believes that there is or may be in existence material nonpublic information or events involving the Company, the failure of which to be disclosed in the prospectus contained in such Restriction Statement, or such Prospectus, could result in a violation by the Company of the Securities Act, Exchange Act any state securities law, or any rule or regulation promulgated thereunder, and disclosure of such material nonpublic information or events would be seriously detrimental to the Company or its stockholders) and that the Board concludes, as a result, that it is in the best interests of the Company and its stockholders to defer the filing or suspend the use of such Resale Registration Shelf or Prospectus at such time.  The Company shall have the right to defer the filing of or suspend the use of such Resale Registration Shelf or Prospectus for a period of not more than one hundred twenty (120) days from the date the Company notifies the Investors of such deferral or suspension; provided that the Company shall not exercise the right contained in this Section 2.1(e) more than once in any twelve month period.  In the case of the suspension of use of any effective Resale Registration Shelf or Prospectus, the Investors, immediately upon receipt of notice thereof from the Company, shall discontinue any offers or sales of Registrable Securities 

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pursuant to such Resale Registration Shelf or Prospectus until advised in writing by the Company that the use of such Resale Registration Shelf or Prospectus may be resumed.  In the case of a deferred Prospectus or Resale Registration Shelf filing, the Company shall provide prompt written notice to the Investors of (i) the Company’s decision to file or seek effectiveness of the Prospectus or Resale Registration Shelf, as the case may be, following such deferral and (ii) in the case of a Resale Registration Shelf, the effectiveness of such Resale Registration Shelf.  In the case of either a suspension of use of, or deferred filing of, any Resale Registration Shelf or Prospectus, the Company shall not, during the pendency of such suspension or deferral, be required to take any action hereunder (including any action pursuant to Section 2.2 hereof) with respect to the registration or sale of any Registrable Securities pursuant to any such Resale Registration Shelf, Company Registration Shelf or Prospectus.

(f)Other Securities.  Subject to Section 2.2(e) below, any Resale Registration Shelf or Prospectus may include Other Securities, and may include securities of the Company being sold for the account of the Company; provided such Other Securities are excluded first from such Registration Statement in order to comply with any applicable laws or request from any Government Entity, Nasdaq or any applicable listing agency.  For the avoidance of doubt, no Other Securities may be included in an Underwritten Offering pursuant to Section 2.2 without the consent of the Investors.

2.2.Sales and Underwritten Offerings of the Registrable Securities.

(a)Notwithstanding any provision contained herein to the contrary, the Investors, collectively, shall and subject to the limitations set forth in this Section 2.2, be permitted (i) one Underwritten Offering per calendar year, but no more than three Underwritten Offerings and eight Block Trades in total, and (ii) no more than two Underwritten Offerings or Block Trades in any twelve month period, to effect the sale or distribution of Registrable Securities.

(b)If the Investors intend to effect an Underwritten Offering or Block Trade pursuant to a Resale Registration Shelf or Company Registration Shelf to sell or otherwise distribute Registrable Securities, they shall so advise the Company and provide as much notice to the Company as reasonably practicable (and, in either case, not less than fifteen (15) business days prior to the Investors’ request that the Company file a prospectus supplement to a Resale Registration Shelf or Company Registration Shelf).

(c)In connection with any offering initiated by the Investors pursuant to this Section 2.2 involving an underwriting of shares of Registrable Securities, the Investors shall be entitled to select the underwriter or underwriters for such offering, subject to the consent of the Company, such consent not to be unreasonably withheld, conditioned or delayed.

(d)In connection with any offering initiated by the Investors pursuant to this Section 2.2 involving an Underwritten Offering of Registrable Securities, the Company shall not be required to include any of the Registrable Securities in such underwriting unless the Investors (i) enter into an underwriting agreement in customary form with the underwriter or underwriters, (ii) accept customary terms in such underwriting agreement with regard to representations and warranties relating to ownership of the Registrable Securities and authority and power to enter into such underwriting agreement and (iii) complete and execute all questionnaires, powers of 

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attorney, custody agreements, indemnities and other documents as may be requested by such underwriter or underwriters.  Further, the Company shall not be required to include any of the Registrable Securities in such underwriting if (Y) the underwriting agreement proposed by the underwriter or underwriters contains representations, warranties or conditions that are not reasonable in light of the Company’s then-current business or (Z) the underwriter, underwriters or the Investors require the Company to participate in any marketing, road show or comparable activity that may be required to complete the orderly sale of shares by the underwriter or underwriters.

(e)If the total amount of securities to be sold in any offering initiated by the Investors pursuant to this Section 2.2 involving an underwriting of shares of Registrable Securities exceeds the amount that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities (subject in each case to the cutback provisions set forth in this Section 2.2(e)), that the underwriters and the Company determine in their sole discretion shall not jeopardize the success of the offering.  If the Underwritten Offering has been requested pursuant to Section 2.2(a) hereof, the number of shares that are entitled to be included in the registration and underwriting shall be allocated in the following manner: (a) first, shares of Company equity securities that the Company desires to include in such registration shall be excluded and (b) second, Registrable Securities requested to be included in such registration by the Investors shall be excluded.  For the avoidance of doubt, no other person besides the Investors shall be entitled to participate in any Block Trade. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round down the number of shares allocated to any of the Investors to the nearest 100 shares.

2.3.Fees and Expenses.  All Registration Expenses incurred in connection with registrations pursuant to this Agreement shall be borne by the Company.  All Selling Expenses relating to securities registered on behalf of the Investors shall be borne by the Investors.

2.4.Registration Procedures.  In the case of each registration of Registrable Securities effected by the Company pursuant to Section 2.1 hereof, the Company shall keep the Investors advised as to the initiation of each such registration and as to the status thereof.  The Company shall use its reasonable best efforts, within the limits set forth in this Section 2.4, to:

(a)prepare and file with the Commission such amendments and supplements to such Registration Statement and the prospectuses used in connection with such Registration Statement as may be necessary to keep such Registration Statement effective and current and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement;

(b)furnish to the Investors such numbers of copies of a prospectus, including preliminary prospectuses, in conformity with the requirements of the Securities Act, and such other documents as the Investors may reasonably request in order to facilitate the disposition of Registrable Securities;

(c)use its reasonable best efforts to register and qualify the Registrable Securities covered by such Registration Statement under such other securities or blue sky laws of such jurisdictions in 

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the United States as shall be reasonably requested by the Investors, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions;

(d)in the event of an Underwritten Offering or Block Trade, and subject to Section 2.2(d), enter into and perform its obligations under an underwriting agreement or Block Trade sale agreement in usual and customary form (including any “lock-ups” on behalf of the Company and its directors and officers), with the managing underwriter of such offering and take such other usual and customary action as the Investors may reasonably request in order to facilitate the disposition of such Registrable Securities;

(e)notify the Investors at any time when a prospectus relating to a Registration Statement covering any Registrable Securities is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing.  The Company shall use its reasonable best efforts to amend or supplement such prospectus in order to cause such prospectus not to include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

(f)provide a transfer agent and registrar for all Registrable Securities registered pursuant to such Registration Statement and, if required, a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

(g)if requested by an Investor, use reasonable best efforts to cause the Company’s transfer agent to remove any restrictive legend from any Registrable Securities, within two business days following such request;

(h)cause to be furnished, at the request of the Investors, on the date that Registrable Securities are delivered to underwriters for sale in connection with an Underwritten Offering or Block Trade, (i) an opinion, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, and (ii) a letter or letters from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters; and

(i)cause all such Registrable Securities included in a Registration Statement pursuant to this Agreement to be listed on each securities exchange or other securities trading markets on which Common Stock is then listed.

2.5.The Investors Obligations.

(a)Discontinuance of Distribution.  The Investors agree that, upon receipt of any notice from the Company of the occurrence of any event of the kind described in Section 2.4(e) hereof, the Investors shall immediately discontinue disposition of Registrable Securities pursuant to any 

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Registration Statement covering such Registrable Securities until the Investors’ receipt of the copies of the supplemented or amended prospectus contemplated by  Section 2.4(e) hereof or receipt of notice that no supplement or amendment is required and that the Investors’ disposition of the Registrable Securities may be resumed.  The Company may provide appropriate stop orders to enforce the provisions of this Section 2.5(a).

(b)Compliance with Prospectus Delivery Requirements.  The Investors covenant and agree that they shall comply with the prospectus delivery requirements of the Securities Act as applicable to them or an exemption therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement filed by the Company pursuant to this Agreement.

(c)Notification of Sale of Registrable Securities.  The Investors covenant and agree that they shall notify the Company following the sale of Registrable Securities to a third party as promptly as reasonably practicable, and in any event within thirty (30) days, following the sale of such Registrable Securities.

2.6.Indemnification.

(a)To the extent permitted by law, the Company shall indemnify the Investors, and, as applicable, their officers, directors, and constituent partners, legal counsel for each Investor and each Person controlling the Investors, with respect to which registration, related qualification, or related compliance of Registrable Securities has been effected pursuant to this Agreement, and each underwriter, if any, and each Person who controls any underwriter within the meaning of the Securities Act against all claims, losses, damages, or liabilities (or actions in respect thereof) to the extent such claims, losses, damages, or liabilities arise out of or are based upon (i) any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus or other document (including any related Registration Statement) incident to any such registration, qualification, or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification, or compliance; and the Company shall pay as incurred to the Investors, each such underwriter, and each Person who controls the Investors or underwriter, any legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action; provided, however, that the indemnity contained in this Section 2.6(a) shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if settlement is effected without the consent of the Company unless such settlement (x) includes an unconditional release of the Company, in form and substance reasonably satisfactory to the Company, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of the Company; and provided, further, that the Company shall not be liable in any such case to the extent that any such claim, loss, damage, liability, or expense arises out of or is based upon any violation by such Investor of the obligations set forth in Section 2.5 hereof or any untrue statement or omission contained in such prospectus or other document based upon written 

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information furnished to the Company by the Investors, such underwriter, or such controlling Person and stated to be for use therein.

(b)To the extent permitted by law, each Investor (severally and not jointly) shall, if Registrable Securities held by such Investor are included for sale in the registration and related qualification and compliance effected pursuant to this Agreement, indemnify the Company, each of its directors, each officer of the Company who signs the applicable Registration Statement, each legal counsel and each underwriter of the Company’s securities covered by such a Registration Statement, each Person who controls the Company or such underwriter within the meaning of the Securities Act against all claims, losses, damages, and liabilities (or actions in respect thereof) arising out of or based upon (i) any untrue statement (or alleged untrue statement) of a material fact contained in any such Registration Statement, or related document, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by such Investor of Section 2.5 hereof, the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law applicable to such Investor and relating to action or inaction required of such Investor in connection with any such registration and related qualification and compliance, and shall pay as incurred to such persons, any legal and any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability, or action, in each case only to the extent that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in (and such violation pertains to) such Registration Statement or related document in reliance upon and in conformity with written information furnished to the Company by such Investor and stated to be specifically for use therein; provided, however, that the indemnity contained in this Section 2.6(b) shall not apply to amounts paid in settlement of any such claim, loss, damage, liability, or action if settlement is effected without the consent of such Investor unless such settlement (x) includes an unconditional release of such Investor, in form and substance reasonably satisfactory to such Investor, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of such Investor ; provided, further, that such Investor’s liability under this Section 2.6(b) (when combined with any amounts such Investor is liable for under Section 2.6(d)) shall not exceed such Investor’s net proceeds from the offering of securities made in connection with such registration.

(c)Promptly after receipt by an indemnified party under this Section 2.6 of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party under this Section 2.6, notify the indemnifying party in writing of the commencement thereof and generally summarize such action.  The indemnifying party shall have the right to participate in and to assume the defense of such claim; provided, however, that the indemnifying party shall be entitled to select counsel for the defense of such claim with the approval of any parties entitled to indemnification, which approval shall not be unreasonably withheld; provided further, however, that if either party reasonably determines that there may be a conflict between the position of the Company and the Investors in conducting the defense of such action, suit, or proceeding by reason of recognized claims for indemnity under this Section 2.6, then counsel for such party shall be entitled to conduct the defense to the extent reasonably determined by such counsel to be necessary to protect the interest of such party.  The 

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failure to notify an indemnifying party promptly of the commencement of any such action, if prejudicial to the ability of the indemnifying party to defend such action, shall relieve such indemnifying party, to the extent so prejudiced, of any liability to the indemnified party under this Section 2.6, but the omission so to notify the indemnifying party shall not relieve such party of any liability that such party may have to any indemnified party otherwise than under this Section 2.6.

(d)If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.  In no event, however, shall (i) any amount due for contribution hereunder be in excess of the amount that would otherwise be due under Section 2.6(a) or Section 2.6(b), as applicable, based on the limitations of such provisions and (ii) a Person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) be entitled to contribution from a Person who was not guilty of such fraudulent misrepresentation.

(e)Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with an Underwritten Offering, or the Block Trade sale agreement, are in conflict with the foregoing provisions, the provisions in the underwriting agreement or Block Trade sale agreement shall control; provided, however, that the failure of the underwriting agreement to provide for or address a matter provided for or addressed by the foregoing provisions shall not be a conflict between the underwriting agreement or the Block Trade sale agreement and the foregoing provisions.  

(f)The obligations of the Company and the Investors under this Section 2.6 shall survive the completion of any offering of Registrable Securities in a Registration Statement under this Agreement or otherwise.

2.7.Information.  The Investors shall furnish to the Company such information regarding the Investors and the distribution proposed by the Investors as the Company may reasonably request and as shall be reasonably required in connection with any registration referred to in this Agreement.  The Investors agree to, as promptly as practicable (and in any event prior to any sales made pursuant to a prospectus), furnish to the Company all information required to be disclosed in order to make the information previously furnished to the Company by the Investors  not misleading.  The Investors agree to keep confidential the receipt of any notice received pursuant to Section 2.4(e) and the contents thereof, except as required pursuant to applicable law.  

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Notwithstanding anything to the contrary herein, the Company shall be under no obligation to name the Investors in any Registration Statement if the Investors have not provided the information required by this Section 2.7 with respect to the Investors as a selling securityholder in such Registration Statement or any related prospectus.

2.8.Rule 144 Requirements.  With a view to making available to the Investors the benefits of Rule 144 and any other rule or regulation of the Commission that may at any time permit the Investors to sell Registrable Securities to the public without registration, the Company agrees to use its reasonable best efforts to:

(a)make and keep public information available, as those terms are understood and defined in Rule 144 at all times after the date hereof;

(b)file with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act;

(c)prior to the filing of the Registration Statement or any amendment thereto (whether pre‐effective or post‐effective), and prior to the filing of any prospectus or prospectus supplement related thereto, to provide the Investors with copies of all of the pages thereof (if any) that reference the Investors; and

(d)furnish to any Investor, so long as the Investor owns any Registrable Securities, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested by an Investor in availing itself of any rule or regulation of the Commission which permits an Investor to sell any such securities without registration.

2.9.Limitations on Subsequent Registration Rights.  From and after the date of this Agreement, the Company shall not, without prior written consent of the Investors, enter into any agreement with any holder or prospective holder of any securities of the Company which would provide to such holder rights with respect to the registration of such securities under the Securities Act or the Exchange Act that would conflict with or adversely affect any of the rights provided to the Investors in this Section 2; it being understood and agreed that any subsequent agreement of the Company with any holder or prospective holder of any securities of the Company of the same class (or convertible into or exchange for securities of the same class) as the Registrable Securities granting such Person rights under this Section 2 equivalent to the rights of the Investors under this Section 2 will not be prohibited by the terms of this Section 2.9. 

 

Section 3.
Miscellaneous

3.1.Amendment.  No amendment, alteration or modification of any of the provisions of this Agreement shall be binding unless made in writing and signed by each of the Company and the Investors.

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3.2.Injunctive Relief.  It is hereby agreed and acknowledged that it shall be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations herein imposed on them and that in the event of any such failure, an aggrieved Person shall be irreparably damaged and shall not have an adequate remedy at law.  Any such Person shall, therefore, be entitled (in addition to any other remedy to which it may be entitled in law or in equity) to injunctive relief, including, without limitation, specific performance, to enforce such obligations, and if any action should be brought in equity to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law.

3.3.Notices.  All notices required or permitted under this Agreement must be in writing and sent to the address or email address identified below.  Notices must be given: (a) by personal delivery, with receipt acknowledged; (b) by email followed by hard copy delivered by the methods under clause (c) or (d); (c) by prepaid certified or registered mail, return receipt requested; or (d) by prepaid reputable overnight delivery service.  Notices shall be effective upon receipt.  Either party may change its notice address by providing the other party written notice of such change.  Notices shall be delivered as follows:

		
	
If to the Investors:
	
At such Investor’s address as set forth on Schedule A hereto

	
If to the Company:
	
 

Aeglea BioTherapeutics, Inc.

Attention: Chief Executive Officer

E-mail: 

Address: 805 Las Cimas Parkway, Suite 100, Austin, TX 78746

	
with a copy to:
	
 

Fenwick & West LLP

Attention: Robert Freedman

E-mail: 

 

3.4.Governing Law; Jurisdiction; Venue; Jury Trial.

(a)This Agreement shall be governed by, and construed in accordance with, the law of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

(b)Each of the Company and the Investors irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in the Borough of Manhattan, New York and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement and the transactions contemplated herein, or for recognition or enforcement of any judgment, and each of the Company and the Investors irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York state court or, to the fullest extent permitted by 

12

 

 

applicable law, in such federal court.  Each of the Company and the Investors hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

(c)Each of the Company and the Investors irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement and the transactions contemplated herein in any court referred to in Section 3.4(b) hereof.  Each of the Company and the Investors hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(d)EACH OF THE COMPANY AND THE INVESTORS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH OF THE COMPANY AND THE INVESTORS (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT EACH OF THE COMPANY AND THE INVESTORS HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

3.5.Successors, Assigns and Transferees.  Any and all rights, duties and obligations hereunder shall not be assigned, transferred, delegated or sublicensed by any party hereto without the prior written consent of the other party; provided, however, that the Investors shall be entitled to transfer Registrable Securities to one or more of their affiliates and, solely in connection therewith, may assign their rights hereunder in respect of such transferred Registrable Securities, in each case, so long as such Investor is not relieved of any liability or obligations hereunder, without the prior consent of the Company.  Any transfer or assignment made other than as provided in the first sentence of this Section 3.5 shall be null and void.  Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the parties hereto.  The Company shall not consummate any recapitalization, merger, consolidation, reorganization or other similar transaction whereby stockholders of the Company receive (either directly, through an exchange, via dividend from the Company or otherwise) equity (the “Other Equity”) in any other entity (the “Other Entity”) with respect to Registrable Securities hereunder, unless prior to the consummation thereof, the Other Entity assumes, by written instrument, the obligations under this Agreement with respect to such Other Equity as if such Other Equity were Registrable Securities hereunder.

3.6.Entire Agreement.  This Agreement, together with any exhibits hereto, constitute the entire agreement between the parties relating to the subject matter hereof and all previous 

13

 

 

agreements or arrangements between the parties, written or oral, relating to the subject matter hereof are superseded.

3.7.Waiver.  No failure on the part of either party hereto to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of either party hereto in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver thereof; and no single or partial exercise of any such power, right, privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy.

3.8.Severability.  If any part of this Agreement is declared invalid or unenforceable by any court of competent jurisdiction, such declaration shall not affect the remainder of the Agreement and the invalidated provision shall be revised in a manner that shall render such provision valid while preserving the parties’ original intent to the maximum extent possible.

3.9.Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

3.10.Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute such counterparts (including by facsimile or other electronic means), and all of which together shall constitute one instrument.

3.11.Term and Termination.  The Investors’ rights to demand the registration of the Registrable Securities under this Agreement, as well as the Company’s obligations hereunder other than pursuant to Section 2.6 hereof, shall terminate automatically once all Registrable Securities cease to be Registrable Securities pursuant to the terms of this Agreement.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

 

14

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement effective as of the day, month and year first above written.

Aeglea Biotherapeutics, inc.

By:/s/Anthony Quinn         

Name:Anthony Quinn

	
 
	
Title:
	
Chief Executive Officer

 

 

[Signature Page to Registration Rights Agreement]

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement effective as of the day, month and year first above written.

667, L.P.

	
 
	
By:
	
BAKER BROS. ADVISORS LP, management company and investment adviser to 667, L.P., pursuant to authority granted to it by Baker Biotech Capital, L.P., general partner to 667, L.P., and not as the general partner

By:/s/Scott L. Lessing

Scott L. Lessing

President

BAKER BROTHERS LIFE SCIENCES, L.P.

	
 
	
By:
	
BAKER BROS. ADVISORS LP, management company and investment adviser to BAKER BROTHERS LIFE SCIENCES, L.P., pursuant to authority granted to it by Baker Brothers Life Sciences Capital, L.P., general partner to BAKER BROTHERS LIFE SCIENCES, L.P., and not as the general partner

By:/s/Scott L. Lessing

Scott L. Lessing

President

 

 

[Signature Page to Registration Rights Agreement]

FW/11855139.3

 

 

Schedule A

The Investors

667, L.P.

BAKER BROTHERS LIFE SCIENCES, L.P.]

To the above Investors:

Baker Brothers Investments
860 Washington Street 
New York, NY 10014

Attn: Scott Lessing

Email: 

 

With a copy to:

 

Akin Gump Strauss Hauer & Feld LLP
Attn: Jeffrey Kochian
Email: 

One Bryant Park
New York, NY 10036-6745

 

 

FW/11855139.3Document

RACKSPACE TECHNOLOGY, INC. 
EXECUTIVE CHANGE IN CONTROL SEVERANCE PLAN
(Adopted and Effective March 16, 2021)

The purpose of the Rackspace Technology, Inc. Executive Change in Control Severance Plan, as amended from time to time (the “Plan”), is to retain executives and other key employees by providing them with a higher degree of financial security and ensuring their continued dedication to their duties in the event of any threat or occurrence of a Change in Control, on the terms and conditions hereinafter stated.  The Plan is intended to be a severance pay plan governed by Title I of ERISA primarily for the purpose of providing benefits for a select group of management or highly compensated employees.

ARTICLE I
DEFINITIONS
Section 1.01     As used in this Plan, the following terms shall have the respective meanings set forth below:
(a)    “Accrued Obligations” means, with respect to any Participant, the sum of (i) any earned but unpaid Base Salary through the Participant’s Date of Termination, (ii) any earned but unpaid annual bonus, commission or performance bonus as of the Participant’s Date of Termination, (iii) any accrued but unpaid vacation pay through the Participant’s Date of Termination that is payable to the extent required by applicable law, (iv) subject to submission by the Participant of supporting documentation, any unreimbursed business expenses incurred by the Participant through the Date of Termination in accordance with the Company’s reimbursement policy and (v) any other accrued and vested payments or benefits owed to the Participant under the terms of any employee benefit plan or program of the Company Group applicable to the Participant.
(b)    “Affiliate” means any person or entity that directly or indirectly controls, is controlled by or is under common control with the Company.  The term “control” (including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to any person or entity, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person or entity, whether through the ownership of voting or other securities, by contract or otherwise.
(c)    “Base Salary” means, with respect to any Participant, the greater of (i) the Participant’s annual base rate of salary in effect as of the Participant’s Date of Termination, or (ii) the Participant’s annual base rate of salary in effect immediately prior to the Change in Control; provided, in each case, that if the Participant’s termination is due to Good Reason based on a material reduction in Base Salary under Section 1.01(t)(iii) of this Plan, then “Base Salary” means the Participant’s annual base rate of salary in effect immediately prior to such reduction.
(d)    “Board” means the Board of Directors of the Company. 
(e)    “Cause” shall have the meaning given to such term in an employment or similar agreement between any member of the Company Group and the applicable Participant, or, if no such employment or similar agreement exists or if “Cause” is not defined therein, then Cause shall mean any of the following: (i) the Participant’s willful misconduct, including, without limitation, violation of sexual or other harassment policy, gross negligence, misappropriation of or material misrepresentation regarding property of the Company Group, other than customary and de minimis use of such property for personal 
1

purposes, as determined in the discretion of Company, or failure to take reasonable and appropriate action to prevent material injury to the financial condition, business or reputation of the Company Group; (ii) the Participant’s abandonment of duties (other than by reason of Disability); (iii) the Participant’s failure to follow lawful directives of the Company, or failure to meet reasonable performance objectives following a written warning and opportunity to cure for 30 days; (iv) a felony conviction or indictment, a plea of guilty or nolo contendere by the Participant, or other conduct by the Participant that has or would result in material injury to the reputation of the Company Group, including indictment or conviction of fraud, theft, embezzlement, or a crime involving moral turpitude; (v) a material breach by the Participant of any employment, non-competition or other restrictive covenant agreement or similar agreement with any member of the Company Group, including the restrictive covenant obligations set forth in Article V of this Plan; or (vi) a significant violation by the Participant of the employment and management policies of any member of the Company Group applicable to the Participant.
(f)    “Change in Control” has the meaning ascribed to such term in the Rackspace Technology, Inc. 2020 Equity Incentive Plan, as may be amended from time to time, or any successor plan thereto.
(g)    “Change in Control Protection Period” means the period beginning on the date of a Change in Control and ending on the second anniversary of such Change in Control.
(h)    “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
(i)    “Code” means the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance promulgated thereunder.
(j)    “Company” means Rackspace Technology, Inc., a Delaware corporation, and any successor thereto.  
(k)    “Company Group” means the Company (or, following a Change in Control, the surviving corporation to the extent applicable) and each of its Affiliates.
(l)    “Committee” means the Compensation Committee of the Board.
(m)    “Date of Termination” means the date that a Participant’s employment with the Company (or an Affiliate, as applicable) ends, which date shall be specified in the Notice of Termination (as determined in accordance with the terms of this Plan). 
(n)    “Disability” has the meaning ascribed to such term in the Rackspace Technology, Inc. 2020 Equity Incentive Plan, as may be amended from time to time, or any successor plan thereto.
(o)    “Effective Date” means March 16, 2021.
(p)    “Eligible Employee” means any full-time employee of any member of the Company Group who has been designated as eligible to participate in the Plan by the Committee in its sole discretion.  Eligible Employees shall be limited to a select group of management or highly compensated employees within the meaning of Section 201, 301, and 404 of ERISA.  
(q)    “Equity Award” means any stock option, restricted stock unit or other equity or equity-based award held by a Participant that was granted pursuant to an Equity Plan and an award agreement thereunder.
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(r)    “Equity Plan” means any equity incentive plan maintained by the Company from time to time pursuant to which a Participant has been granted an equity or equity-based incentive award, including, without limitation, the Rackspace Technology, Inc. 2020 Equity Incentive Plan, as may be amended from time to time, or any successor plan thereto.
(s)    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
(t)    “Good Reason” shall have the meaning given to such term in an employment or similar agreement between any member of the Company Group and the applicable Participant, or, if no such employment or similar agreement exists or if “Good Reason” is not defined therein, then Good Reason shall mean the occurrence of any of the following events, without the Participant’s prior written consent: (i) the repeated failure by the Company Group to comply with a material term of any employment or similar agreement between any member of the Company Group and the Participant, after written notice has been delivered by the Participant to the applicable member of the Company Group specifying the alleged failure; (ii) a substantial and unusual reduction in the Participant’s responsibilities and authority; or (iii) a reduction in the Participant’s Base Salary or Target Bonus of more than 5% as in effect immediately prior to such reduction; provided, that if the Participant elects to terminate the Participant’s employment with the Company Group for “Good Reason,” the Participant must first provide a Notice of Termination to the Company within 30 days of the occurrence of the Good Reason condition, after which the Company shall have 60 days to cure such Good Reason condition; provided, further, that if the Company has not cured such condition and the Participant elects to terminate employment, the Participant must do so within 10 days after the end of such cure period.
(u)    “Notice of Termination” means a written notice which shall (i) indicate the specific termination provision in this Plan relied upon, (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of a Participant’s employment under the provision so indicated, and (iii) if the Date of Termination is other than the date of receipt of such notice, specify the Date of Termination (which date shall be not more than 30 days after the giving of such notice, subject to such other terms and conditions of this Plan).
(v)    “Participant” means each of the Tier 1 Participants, the Tier 2 Participants and the Tier 3 Participants (collectively, the “Participants”).
(w)    “Qualifying Termination” means a termination of the Participant’s employment with the Company Group either by the Company or an Affiliate other than for Cause or by the Participant for Good Reason.  For purposes of clarification, a termination of a Participant’s employment by reason of the Participant’s death or Disability shall not constitute a Qualifying Termination.
(x)    “Release” means a release of claims in the Company’s standard form as may be updated by the Company from time to time.
(y)    “Retention Award” means any retention, transaction or similar bonus awarded to a Participant that is payable in cash, other than any equity or equity-based award or any annual bonus, commission or annual performance bonus awarded pursuant to any cash incentive plan or program maintained by the Company Group. If any portion of a Retention Award is subject to vesting based on the achievement of any financial or Company Group performance metrics, then such performance metrics will be deemed to be achieved at 100% of their target levels and any applicable individual performance goals or goals based on subjective criteria will be deemed to have been attained in full.
(z)    “Separation from Service” means a “separation from service” within the meaning of Section 409A of the Code.
3

(aa)    “Severance Multiple” means the following number as applicable: (i) 2.0 with respect to any Tier 1 Participant, (ii) 1.5 with respect to any Tier 2 Participant and (iii) 1.0 with respect to any Tier 3 Participant.
(bb)    “Target Bonus” means, with respect to any Participant, the sum of the Participant’s annual target bonus, commission and annual performance bonus opportunity, as applicable, pursuant to any cash incentive plan or program maintained by the Company Group in which the Participant is eligible to participate for the Company’s fiscal year in which the Participant’s Date of Termination occurs, or if greater, such Target Bonus amount in effect immediately prior to the Change in Control, and in either case, calculated on the basis that any applicable individual performance goals or goals based on subjective criteria have been attained in full; provided, that if the Participant’s termination is due to Good Reason based on a material reduction in Target Bonus under Section 1.01(t)(iii) of this Plan, then “Target Bonus” means such Target Bonus amount in effect immediately prior to such reduction.
(cc)    “Tier 1 Participant” means the Company’s Chief Executive Officer and any member of the Company’s Executive Leadership Team who holds the title of Executive Vice President, in each case, whom the Committee has designated as a Tier 1 Participant pursuant to Section 2.01 of this Plan. 
(dd)    “Tier 2 Participant” means any member of the Company’s Executive Leadership Team who holds the title of Senior Vice President and whom the Committee has designated as a Tier 2 Participant pursuant to Section 2.01 of this Plan.
(ee)    “Tier 3 Participant” means any employee who holds the title of Senior Vice President but is not a member of the Company’s Executive Leadership Team and any other Eligible Employee, in each case, whom the Committee has designated as a Tier 3 Participant pursuant to Section 2.01 of this Plan.
ARTICLE II
ELIGIBILITY AND PARTICIPATION
Section 2.01    Each Eligible Employee who has been designated to participate in this Plan as a Tier 1 Participant, Tier 2 Participant or Tier 3 Participant by the Committee, in its sole discretion shall become a Participant and be eligible to receive payments and benefits under this Plan.  Promptly following such designation by the Committee, the Company shall provide written notice substantially in the form attached hereto as Exhibit A (a “Participation Letter”) to each Participant with respect to the Participant’s designation as a Tier 1 Participant, Tier 2 Participant or Tier 3 Participant in this Plan.  The Committee may, in its sole discretion, approve modifications to the Tier to which one or more Eligible Employees have been designated to reflect changes in work status from time to time.
Section 2.02    Any severance payments or benefits payable to any Participant under this Plan shall be in lieu of any severance payments or benefits to which the Participant may otherwise have been entitled to pursuant to any employment or similar agreement between any member of the Company Group and the applicable Participant and shall be in lieu of any other severance plan, policy, program, agreement or arrangement of the Company Group as in effect from time to time.  
ARTICLE III
PLAN ADMINISTRATION
Section 3.01    This Plan shall be interpreted, administered and operated by the Committee, which may delegate its duties and powers in whole or in part to any subcommittee thereof or such other 
4

persons from time to time as it may designate.  The Committee is authorized to interpret this Plan, to establish, amend and rescind any rules and regulations relating to this Plan, to resolve ambiguities under this Plan, and to make any other determinations that it deems necessary or desirable for the administration of this Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in this Plan in the manner and to the extent the Committee deems necessary or desirable.  The Committee shall have the full power and authority, in its sole discretion but subject to the provisions of this Plan to determine who shall be a Participant and to establish the terms and conditions of any payment or benefit payable under this Plan.  Any decision of the Committee in the interpretation and administration of this Plan, as described herein, shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned (including, but not limited to, Participants and their beneficiaries or successors).
Section 3.02    All expenses and liabilities which members of the Committee incur in connection with the administration of this Plan shall be borne by the Company.  The Committee may employ attorneys, consultants, accountants, appraisers, brokers, or other persons in connection with such administration, and the Committee, the Company and the Company’s officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons.  No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to this Plan, and all members of the Committee shall be fully protected by the Company in respect of any such action, determination or interpretation.  
ARTICLE IV
SEVERANCE BENEFITS AND PAYMENTS
Section 4.01    Qualifying Termination.  If a Participant incurs a Qualifying Termination at any time during the Change in Control Protection Period, the Participant shall be entitled to receive the following payments and benefits, subject to Section 4.02 and Article XI of this Plan:
(a)    Accrued Obligations.  The Participant shall be paid or provided the Accrued Obligations within 10 days after the Date of Termination or as soon as possible thereafter in the case of any Accrued Obligation (e.g., commissions) which cannot be reasonably calculated by such date, but in any case no later than 65 days after the Date of Termination, subject to such earlier payment date as may be required by applicable law.

(b)    Cash Severance Payment.  The Participant shall receive a cash severance payment in an amount equal to (i) the sum of the Participant’s Base Salary and Target Bonus, multiplied by (ii) the Participant’s applicable Severance Multiple, payable in a single lump sum within 65 days after the Date of Termination, provided that the Participant’s Release has become irrevocable and effective in accordance with Section 4.02, subject to Section 11.02 of this Plan. 
(c)    Target Bonus.  The Participant shall receive a payment equal to his or her Target Bonus, prorated to reflect the number of days worked by the Participant in the Company’s fiscal year in which the Participant’s Date of Termination occurs.  Such prorated Target Bonus shall be paid to the Participant in a single lump sum within 65 days after the Date of Termination, provided that the Participant’s Release has become irrevocable and effective in accordance with Section 4.02, subject to Section 11.02 of this Plan. 
(d)    Continued Health Benefits.  The Participant shall receive a cash payment equal to 18  months of the applicable aggregate premium cost for continued Company group health insurance 
5

coverage for the Participant and his eligible dependents pursuant to COBRA, based on the Participant’s elections with respect to health insurance coverage in effect as of the Date of Termination (which amount will be based on the premium for the first month of COBRA coverage), and regardless of whether the Participant elects COBRA continuation coverage (the “Health Insurance Payment”). Such Health Insurance Payment shall be paid to the Participant in a single lump sum within 65 days after the Date of Termination, provided that the Participant’s Release has become irrevocable and effective in accordance with Section 4.02, subject to Section 11.02 of this Plan.  In addition, the Participant shall receive a single sum cash payment (a “Health Insurance Tax Payment”) from the Company or any successor thereto in an amount equal to the sum of (A) 100% of the amount of federal, state, local, and foreign income taxes, as applicable, that become due by the Participant with respect to receipt of the Health Insurance Payment, and (B) an amount necessary to pay all additional federal, state, local, and foreign income taxes, as applicable, imposed on the Participant attributable to the receipt of the payment amount described in clause (A), computed assuming the application of the highest marginal rate of income taxation applicable to the Participant in the calendar year in which the Health Insurance Tax Payment is to be made; provided, that any Health Insurance Tax Payment due to the Participant under this Section 4.01(d) shall be paid to the Participant no later than the end of the calendar year next following the calendar year in which the Participant remits the related taxes on the Health Insurance Payment to the applicable taxing authority.

(e)    Outplacement Services.  The Company will reimburse the Participant for the actual costs incurred by the Participant for any outplacement services obtained by the Participant during the 12-month period following the Date of Termination in an amount not to exceed $20,000 for any Tier 1 Participant or Tier 2 Participant, or $10,000 for any Tier 3 Participant, or in such other amount as determined by the Committee from time to time, in each case, subject to the Participant’s delivery to the Company of appropriate supporting documentation to substantiate such costs in accordance with the Company’s reimbursement policy, as in effect from time to time.

(f)    Equity Awards.  Any Equity Award held by the Participant as of the Date of Termination shall be subject to the terms of the applicable Equity Plan and award agreement evidencing such Equity Award.  In the event that (i) any outstanding Equity Award then held by the Participant as of the date on which a Change in Control occurs is assumed, converted or replaced by the surviving corporation (including the Company if the Company is the surviving corporation) or its parent in the Change in Control transaction and (ii) the vesting of such Equity Award so assumed, converted or replaced is subject to acceleration in whole or in part upon the Participant’s Qualifying Termination at any time during the Change in Control Protection Period, then the Participant shall receive a single sum cash payment (a “Tax Payment”) from the Company or any successor thereto in an amount equal to the sum of (A) 50% of the amount of federal, state, local, and foreign income taxes, as applicable, that become due by the Participant with respect to the Equity Award following such accelerated vesting in respect of the calendar year during which the applicable ordinary income taxation event occurs with respect to the Equity Award, and (B) an amount necessary to pay all additional federal, state, local, and foreign income taxes, as applicable, imposed on the Participant attributable to the receipt of the payment amount described in clause (A), computed assuming the application of the highest marginal rate of income taxation applicable to the Participant in the calendar year in which the Tax Payment is to be made; provided, that any Tax Payment due to the Participant under this Section 4.01(f) shall be paid to the Participant no later than the end of the calendar year next following the calendar year in which the Participant remits the related taxes with respect to the Equity Award to the applicable taxing authority.
(g)    Retention Awards.  The amount of any Retention Awards held by the Participant, to the extent not previously paid, shall become fully vested and paid in full in a single lump sum within 65 days after the Date of Termination, provided that the Participant’s Release has become irrevocable and 
6

effective in accordance with Section 4.02, subject to Section 11.02 of this Plan, notwithstanding any terms to the contrary set forth in the award agreement or similar agreement evidencing such Retention Awards.  
Section 4.02    Release and Other Conditions to Severance.  Any payments or benefits that may be provided to a Participant under Section 4.01 of this Plan (other than payment of the Accrued Obligations) shall be conditioned upon the following events:
(a)    The Participant’s execution, delivery and non-revocation of an effective Release (such effective date of the Release, the “Release Effective Date”), which Release shall be delivered to the Participant within 5 days following the Date of Termination and which must be executed (and not revoked) by the Participant within 60 days following the Date of Termination (the “Release Period”); and
(b)    The Participant’s continued compliance with the restrictive covenant obligations set forth in Article V of this Plan.
Notwithstanding anything herein to the contrary, if the Committee determines, in its reasonable good faith and discretion, that a Participant has not satisfied any of the conditions precedent or subsequent in Article V of this Plan, (i) any entitlement of the Participant to receive any payments or benefits due under this Plan (other than payment of the Accrued Obligations) shall be forfeited, and (ii) the Participant shall be obligated to promptly repay the Company all amounts of payments and benefits the Participant previously received under this Plan (other than the Accrued Obligations); provided, that if a court subsequently determines that the Participant did satisfy such conditions, the Participant’s entitlement to receive such payments and benefits shall be reinstated in accordance with the terms thereof.

ARTICLE V
RESTRICTIVE COVENANTS
Section 5.01    Condition Precedent and Subsequent.  As a condition precedent and subsequent to the receipt of any severance payments and benefits provided to a Participant under Section 4.01 of this Plan (other than the Accrued Obligations), the Participant, in order to accept any such benefits and payments under this Plan, must comply with the restrictive covenants set forth in Sections 5.02 through Section 5.05 of this Plan.  For the avoidance of doubt, the restrictive covenants set forth in Sections 5.02 through Section 5.05 of this Plan shall apply in addition to (and shall not be limited by the provisions of) any other non-competition, non-solicitation, confidentiality, non-disparagement or similar covenants or conditions to which a Participant is subject pursuant to any other plan or agreement containing restrictive covenants or conditions to which such Participant is a party with any member of the Company Group (or, in the case of any plan, as a recipient of any award or benefits thereunder), such that the longest and broadest of such restrictions shall apply (without duplication). 
Section 5.02    Non-Solicitation; No Hire. To the fullest extent permitted by applicable law, the Participant agrees that during the Participant’s employment or other service relationship with the Company Group, and for the one year period following the Participant’s termination of such relationship for any reason, the Participant will not, directly or indirectly, on the Participant’s own behalf or on behalf of another (a) solicit, induce or attempt to solicit or induce any officer, director or employee of the Company Group to terminate their relationship with or leave the employ of the Company Group, or in any way interfere with the relationship between any member of the Company Group, on the one hand, and any officer, director or employee thereof, on the other hand, (b) hire (or other similar arrangement) any person (in any capacity whether as an officer, director, employee or consultant) who is or at any time was 
7

an officer, director or employee of the Company Group until 6 months after such individual’s relationship (whether as an officer, director or employee) with the Company Group has ended, or (c) induce or attempt to induce any customer, supplier, prospect, licensee or other business relation of the Company Group to cease doing business with the Company Group, or in any way interfere with the relationship between any such customer, supplier, prospect, licensee or business relation, on the one hand, and the Company Group, on the other hand.
Section 5.03    Non-Competition. To the fullest extent permitted by applicable law and to further preserve the confidentiality of the Company Group’s confidential information, the Participant agrees that during the Participant’s employment or other service relationship with the Company Group, and for the one year period following the Participant’s termination of such relationship for any reason, the Participant will not, directly or indirectly, have any equity or equity-based interest, or work or otherwise provide services in a competitive capacity, directly or indirectly, as an employee, contractor, officer, owner, consultant, partner, director or otherwise, in any business anywhere in the world that sells managed dedicated or cloud computing services substantially similar to those services provided by the Company Group, including but not limited to (a) professional advisory services for the migration, deployment or management of cloud technologies; (b) provisioning, hosting, management, monitoring, supporting, or maintenance of applications, computer servers (whether dedicated, shared or virtual) and network connectivity in a datacenter for remote use via the Internet; (c) hosted or managed email, storage, collaboration, compute, virtual networking, applications, and similar services, or (d) any related IT services or products substantially similar to the Company Group’s products or services. Notwithstanding the foregoing, the Participant shall be permitted to acquire a passive stock or equity interest in such a business, provided that the stock or other equity interest acquired is not more than 5% of the outstanding interest in such business.
Section 5.04    Nondisclosure of Confidential Information; Return of Property. The Participant recognizes and acknowledges that he or she has access to the confidential information and/or has had material contact with the Company Group’s customers, suppliers, licensees, representatives, agents, partners, licensors, or business relations. The Participant agrees that at any time during or after the period of the Participant’s employment or other service relationship with the Company Group, the Participant shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for the Participant’s benefit or the benefit of any person, any confidential or proprietary information or trade secrets of or relating to the Company Group, including, without limitation, information with respect to the Company Group’s operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment, or deliver to any person any document, record, notebook, computer program or similar repository of or containing any such confidential or proprietary information or trade secrets. Upon the Participant’s termination of employment for any reason, the Participant shall promptly deliver to the Company (with the cost of shipping reimbursed by the Company) all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company Group’s customers, business plans, marketing strategies, products or processes. The Participant may respond to a lawful and valid subpoena or other legal process but shall give the Company Group the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company Group and its counsel the documents and other information sought and, if requested by the Company Group, shall reasonably assist such counsel in resisting or otherwise responding to such process.
Section 5.05    Non-Disparagement. The Participant shall not, at any time, directly or indirectly, knowingly disparage, criticize, or otherwise make derogatory statements regarding the Company Group, 
8

or any of its successors, directors or officers. The foregoing shall not be violated by the Participant’s truthful responses to legal process or inquiry by a governmental authority.
Section 5.06    Restrictive Covenants Generally. If, at the time of enforcement of the covenants contained in this Article V (the “Restrictive Covenants”), a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed and directed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by applicable law. The Participant hereby acknowledges that the Restrictive Covenants are reasonable in terms of duration, scope and area restrictions and are necessary to protect the goodwill of the Company Group. The Participant further acknowledges and agrees that the Restrictive Covenants are being agreed to by the Participant in connection with the Participant’s entitlement to receive severance payments and benefits pursuant to the terms and conditions of the Plan, and are in addition to, not in substitution for, any restrictive covenants to which the Participant is or may become subject in connection with any relationship with the Company Group.
Section 5.07    Enforcement. If the Participant breaches, or threatens to commit a breach of, any of the Restrictive Covenants, the Company Group shall have the following rights and remedies, each of which rights and remedies shall be independent of the others and severally enforceable, and each of which is in addition to, and not in lieu of, any other rights and remedies available to the Company Group at law or in equity: (a) the right and remedy to seek to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction (without posting a bond), it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company Group and that money damages would not provide an adequate remedy to the Company Group; and (b) the right and remedy to require the Participant to account for and pay over to the Company any profits, monies, accruals, increments or other benefits derived or received by the Participant as the result of any transactions constituting a breach of the Restrictive Covenants. In the event of any breach or violation by the Participant of any of the Restrictive Covenants, the time period of such covenant with respect to the Participant shall, to the fullest extent permitted by law, be tolled until such breach or violation is resolved.
Section 5.08    Defend Trade Secrets Act.  Notwithstanding anything in this Plan to the contrary, pursuant to the Defend Trade Secrets Act of 2016, as may be amended from time to time, the Advisor shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is (a) made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and solely for the purpose of reporting or investigating a suspected violation of law; or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer's trade secrets to the attorney and use the trade secret information in the court proceeding if the individual: (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order.
ARTICLE VI
EXCESS PARACHUTE PAYMENTS
Section 6.01    If it is determined (as hereafter provided) that any payment, benefit, entitlement or distribution by the Company (or any of its Affiliates or by the person(s) or entity or entities effecting the Change in Control), to or for the benefit of a Participant, whether paid or payable or distributed or distributable pursuant to the terms of this Plan or otherwise (including, without limitation, pursuant to or 
9

by reason of any other agreement, policy, plan, program, or arrangement, including without limitation any stock option, stock appreciation right, or similar right, or the lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing) (a “Payment”), would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code (or any successor provision thereto or any similar statute or code), and (iii) but for this sentence, be subject to excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or to any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest or penalties, are hereafter collectively referred to as the “Excise Tax”), then, in the event that the after-tax value of all Payments to the Participant (such after-tax value to reflect the reduction for the Excise Tax and all federal, state, and local income, employment, and other taxes on such Payments) would, in the aggregate, be less than the after-tax value to the Participant (reflecting a reduction for all such taxes in a like manner) of the amount that is 2.99 times the Participant’s “base amount” within the meaning of Section 280G(b)(3) of the Code (the “Safe Harbor Amount”), (a) the cash portions of the Payments payable to the Participant under this Plan shall be reduced, in the reverse order in which they are due to be paid commencing with the latest such payment, until the Parachute Value (as defined below) of all Payments paid to the Participant, in the aggregate, equals the Safe Harbor Amount, and (b) if the reduction of the cash portions of the Payments, payable under this Plan, to zero would not be sufficient to reduce the Parachute Value of all Payments to the Safe Harbor Amount, then any cash portions of the Payments payable to Employee under any other agreements, policies, plans, programs, or arrangements shall be reduced, in the reverse order in which they are due to be paid commencing with the latest such payment, until the Parachute Value of all Payments paid to the Participant, in the aggregate, equals the Safe Harbor Amount, and (c) if the reduction of all cash portions of the Payments, payable pursuant to this Plan or otherwise, to zero would not be sufficient to reduce the Parachute Value of all Payments to the Safe Harbor Amount, then non-cash portions of the Payments shall be reduced, in the reverse order in which they are due to be paid commencing with the latest such payment, until the Parachute Value of all Payments paid to the Participant, in the aggregate, equals the Safe Harbor Amount; provided that in all events any Payment which receives the favorable valuation under Q&A-24 (b) and (c) of Treas. Reg. §1-280G shall not be reduced before all Payments which do not receive such favorable valuation have been reduced. All calculations under this Section 8.01 shall be determined by a national accounting firm or consulting firm selected by the Company (which may include the Company’s outside auditors). The Company shall pay all costs to obtain and provide such calculations to the Participant and the Company. For purposes of this Plan, the “Parachute Value” of a Payment shall mean the present value as of the date of the change in ownership or effective control, within the meaning of Section 280G of the Code, of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.
ARTICLE VII
TERMINATION PROCEDURE
Section 7.01    Any purported termination of a Participant’s employment by the Company with or without Cause or by the Participant for Good Reason shall be communicated by a Notice of Termination to the other party given in accordance with Article X of this Plan. Any failure by the Participant or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Participant or the Company, respectively, under this Plan or preclude the Participant or the Company from asserting such fact or circumstance in enforcing the Participant’s or the Company’s rights under this Plan.
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ARTICLE VIII
NO MITIGATION OR OFFSET
Section 8.01    The Company agrees that, in order for a Participant to be eligible to receive the payments and other benefits under this Plan, the Participant is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Participant by the Company pursuant to Section 4.01 of this Plan.  Further, the amount of any payment or benefit provided for in this Plan shall not be reduced by any compensation earned by the Participant following the Date of Termination as the result of employment by another employer or otherwise, by retirement benefits, by offset against any amount claimed to be owed by the Participant to the Company, or otherwise.
ARTICLE IX
SUCCESSORS; BINDING AGREEMENT
Section 9.01    The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume this Plan and all obligations of the Company hereunder in the same manner and to the same extent that the Company would be so obligated if no such succession had taken place. 
Section 9.02    This Plan shall inure to the benefit of and shall be binding upon the Company, its permitted successors and assigns. 
Section 9.03    No right or interest of a Participant under this Plan may be assigned, transferred or alienated, in whole or in part, either directly or by operation of law or otherwise, including, without limitation, by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective, and no such right or interest of any Participant shall be liable for or subject to any debt, obligation or liability of such Participant. Notwithstanding the foregoing, if a Participant dies while any amount would still be payable to the Participant hereunder (other than amounts which, by their terms, terminate upon the death of the Participant) if the Participant had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Plan to the executors, personal representatives or administrators of the Participant’s estate. Further, when a payment is due under this Plan to a Participant who is unable to care for his or her affairs, payment may be made directly to the Participant’s legal guardian or personal representative.
ARTICLE X
NOTICES
Section 10.01    For purposes of this Plan, notices and all other communications provided for in this Plan shall be given in writing and delivered by hand or sent by overnight courier, certified or registered mail, return receipt requested, postage prepaid, and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to the Participant, 5 days after deposit in the United States mail, postage prepaid, addressed to the Participant at the last address the Participant provided to the Company and, if to the Company, to the address set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt: 
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To the Company: 
Rackspace Technology, Inc.
Attention: Chief People Officer
1 Fanatical Place
City of Windcrest
San Antonio, Texas 78218

ARTICLE XI
SECTION 409A
Section 11.01    To the extent applicable, this Plan shall be interpreted and applied consistent and in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of this Plan to the contrary, to the extent that the Committee determines that any payments or benefits under this Plan may not be either compliant with or exempt from Section 409A of the Code and related Department of Treasury guidance, the Committee may in its sole discretion adopt such amendments to this Plan or take such other actions that the Committee determines are necessary or appropriate to (a) exempt the compensation and benefits payable under this Plan from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided, that this Section 11.01 shall not create any obligation on the part of the Committee to adopt any such amendment or take any other action.  The Company makes no representations that the payments or benefits provided under this Plan will be exempt from any penalties that may apply under Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to the Plan.  Nothing in this Plan shall provide a basis for any Participant or other person to take any action against the Company or any other member of the Company Group based on matters covered by Section 409A of the Code, including the tax treatment of any amount paid under the Plan, and neither the Company nor any other member of the Company Group shall under any circumstances have any liability to the Participant or the Participant’s estate or any other party for any taxes, penalties or interest due on amounts paid or payable under this Plan, including taxes, penalties or interest imposed under Section 409A of the Code.
Section 11.02    Notwithstanding anything to the contrary in this Plan, to the extent required to comply with Section 409A of the Code, if the Release Period spans two calendar years, any severance payments to which a Participant may be entitled pursuant to Section 4.01 of the Plan shall be paid on the later of (a) the Release Effective Date and (b) the first regularly scheduled payroll date that occurs in the second calendar year.
Section 11.03    Notwithstanding anything to the contrary in this Plan, no amounts shall be paid to any Participant under this Plan during the 6-month period following such Participant’s Separation from Service to the extent that the Committee reasonably determines that paying such amounts at the time or times indicated in this Plan would result in a prohibited distribution under Section 409A(a)(2)(b)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such 6-month period (or such earlier date upon which such amount can be paid under Section 409A of the Code without resulting in a prohibited distribution, including as a result of the Participant’s death), the Participant shall receive payment of a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such 6-month period without interest thereon.
12

Section 11.04    Notwithstanding anything to the contrary herein, to the extent required by Section 409A of the Code, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan providing for the payment of amounts or benefits upon or following a termination of employment unless such termination is also a Separation from Service, and, for purposes of any such provision of this Plan, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean Separation from Service.
Section 11.05    For purposes of Section 409A of the Code, each payment made under this Plan shall be designated as a “separate payment” within the meaning of Section 409A of the Code.
Section 11.06    Notwithstanding anything to the contrary herein, except to the extent any expense, reimbursement or in-kind benefit provided pursuant to this Plan does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code, (a) the amount of expenses eligible for reimbursement or in-kind benefits provided to the Participant during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Participant in any other calendar year; (b) the reimbursements for expenses for which the Participant is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred; and (c) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.
ARTICLE XII
PLAN AMENDMENT AND TERMINATION
Section 12.01    The Committee (or the Board) reserves the right to amend, suspend and/or terminate the Plan, including any Participation Letter, at any time in its sole discretion; provided, that no such amendment, suspension or termination shall materially and adversely impact the right of any Participant under the Plan without the Participant’s prior written consent.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 13.01    No Waiver. No waiver by the Company or any Participant, as the case may be, at any time of any breach by the other party of, or of any lack of compliance with, any condition or provision of this Plan to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. All other plans, policies and arrangements of the Company Group in which a Participant participates during the term of this Plan shall be interpreted so as to avoid the duplication of benefits paid hereunder.
Section 13.02    No Right to Employment. Nothing contained in this Plan or any documents relating to this Plan shall (a) confer upon any Participant any right to continue as a Participant or in the employ or service of any member of the Company Group, (b) constitute any contract or agreement of employment, or (c) interfere in any way with any “at-will” nature (if applicable) of the Participant’s employment with the Company Group.
Section 13.03    Tax Withholding.  The Company or any other member of the Company Group shall be entitled to withhold from any amounts payable under this Plan any federal, state, local, and foreign withholding and other taxes and charges that the applicable member of the Company Group is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.
13

Section 13.04    No Effect on Other Benefits.  Amounts payable under this Plan shall not be counted as compensation for purposes of determining benefits under other benefit plans, programs, policies and agreements of any member of the Company Group, except to the extent expressly provided therein or herein.
Section 13.05    Governing Law.  It is intended that this Plan be an “employee welfare benefit plan” within the meaning of Section 3(1) of ERISA, and this Plan shall be administered in a manner consistent with such intent.  This Plan, including the interpretation, construction and performance of the provisions hereof and all rights hereunder, shall be governed, construed and interpreted in accordance with ERISA and, to the extent not preempted by federal law, the laws of the State of Delaware.
Section 13.06    Unfunded Obligation.  All amounts payable under this Plan shall constitute an unfunded obligation of the Company.  Payments shall be made, as due, from the general funds of the Company.  This Plan shall constitute solely an unsecured promise by the Company to provide such benefits to Participants to the extent provided herein.
Section 13.07    Validity.  The invalidity or unenforceability of any provision of this Plan shall not affect the validity or enforceability of any other provision of this Plan, which other provisions shall remain in full force and effect.
Section 13.08    Compensation Recoupment.  Any payments or benefits that a Participant receives pursuant to the Plan are and will be subject to any compensation claw-back or recoupment policies of the Company, whether now or in the future existing, that are intended or designed to comply with applicable law or governmental regulations, including any rules or regulations promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act, as may be amended from time to time, or by any stock exchange on which the Company’s securities are listed, that may be applicable to the Participant, as in effect from time to time and as approved by the Board or the Committee (whether or not approved before or after the adoption of the Plan) or as may be required by applicable law.
ARTICLE XIV
CLAIMS, INQUIRIES, APPEALS
Section 14.01    Applications for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the claims administrator in writing, as follows:
Claims Administrator – Attn: Kelly Butler, Vice President – Racker Rewards
Rackspace Technology, Inc.
1 Fanatical Place
City of Windcrest
San Antonio, Texas 78218

Section 14.02    Denial of Claims. In the event that any application for benefits is denied in whole or in part, the claims administrator must notify the applicant, in writing, of the denial of the application, and of the applicant’s right to review the denial.  The written notice of denial will be set forth in a manner designed to be understood by the Participant, and will include specific reasons for the denial, specific references to the Plan provision upon which the denial is based, a description of any information or material that the claims administrator needs to complete the review and an explanation of the Plan’s review procedure.
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This written notice will be given to the Participant within 30 days after the claims administrator receives the application, unless special circumstances require an extension of time, in which case, the claims administrator has up to an additional 30 days for processing the application.  If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial 30-day period. 
This notice of extension will describe the special circumstances necessitating the additional time and the date by which the claims administrator is to render his or her decision on the application.  If written notice of denial of the application for benefits is not furnished within the specified time, the application will be deemed to be denied.  The applicant will then be permitted to appeal the denial in accordance with the review procedure described below.
Section 14.03    Request for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied (or deemed denied), in whole or in part, may (but without any obligation to do so) appeal the denial by submitting a request for a review to the Committee within 60 days after the application is denied (or deemed denied).  The Committee will give the applicant (or his or her representative) an opportunity to review pertinent documents in preparing a request for a review and submit written comments, documents, records and other information relating to the claim.  A request for a review will be in writing and will be addressed to:
Claims Administrator – Attn: Kelly Butler, Vice President – Racker Rewards
Rackspace Technology, Inc.
1 Fanatical Place
City of Windcrest
San Antonio, Texas 78218

A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.  The Committee may require the applicant to submit additional facts, documents or other material as he or she may find necessary or appropriate in making his or her review.
Section 14.04    Decision on Review. The Committee will act on each request for review within 20 days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional 20 days), for processing the request for a review. If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial 20-day period.  The Committee will give prompt, written notice of his or her decision to the applicant. In the event that the Committee confirms the denial of the application for benefits in whole or in part, the notice will outline, in a manner calculated to be understood by the applicant, the specific Plan provisions upon which the decision is based.  If written notice of the Committee’s decision is not given to the applicant within the time prescribed in this Section 14.04 the application will be deemed denied on review.
Section 14.05    Rules and Procedures. The Committee may establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims.  The Committee may require an applicant who wishes to submit additional information in connection with an appeal from the denial (or deemed denial) of benefits to do so at the applicant’s own expense.
Section 14.06    Exhaustion of Remedies. No claim for benefits under the Plan may be brought in any forum until the claimant (a) has submitted a written application for benefits in accordance with the procedures described by Section 14.01 above, (b) has been notified by the claims administrator that the 
15

application is denied (or the application is deemed denied due to the claims administrator’s failure to act on it within the established time period), (c) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 14.03 above and (d) has been notified in writing that the Committee has denied the appeal (or the appeal is deemed to be denied due to the Committee’s failure to take any action on the claim within the time prescribed by Section 14.04 above).
Section 14.07    Final Dispute Resolution. Any and all disputes under this Plan (including but not limited to disputes regarding interpretation, scope, or validity of the Plan, any pendant state claims if not otherwise preempted by ERISA) remains unresolved after the exhaustion of the claims procedure outlined in Section 14.01 through Section 14.06, above, will be submitted to the exclusive jurisdiction of the United States District Court for the Western District of Texas. 
Section 14.08    Attorneys’ Fees. The parties shall each bear their own expenses, legal fees and other fees incurred in connection with this Plan; provided, that, in the event that a Participant is required to incur attorneys’ fees in order to obtain any payments or benefits under this Plan following a Change in Control, and provided that the Participant prevails on at least one material issue related to his or her claim(s) under the Plan, then the successor corporation or a parent or subsidiary of the successor corporation in such Change in Control transaction shall reimburse the attorneys’ fees incurred by the Participant.  With respect to any other dispute under this Plan, the court may award attorneys’ fees as provided under 29 U.S.C. 1132(g)(1).

16

EXHIBIT A

RACKSPACE TECHNOLOGY, INC.
1 FANATICAL PLACE
CITY OF WINDCREST
SAN ANTONIO, TEXAS 78218
[INSERT DATE]
[INSERT NAME]
c/o Rackspace Technology, Inc.
1 Fanatical Place
City of Windcrest
San Antonio, Texas 78218

Re:     The Rackspace Technology, Inc.
    Executive Change in Control Severance Plan
Dear [NAME]:
This letter agreement (the “Participation Letter”) relates to the Rackspace Technology, Inc. Executive Change in Control Severance Plan, as may be amended from time to time (the “Plan”).  Through this Participation Letter, you are being offered the opportunity to become a participant in the Plan. 
Rackspace Technology, Inc. (the “Company”) has designated you as a Tier [__] Participant (as defined in the Plan) and thereby you are eligible to receive the severance and other benefits set forth in the Plan subject to the terms and conditions thereof. A copy of the Plan has been made available to you. You should read the Plan carefully and understand its terms and conditions and those set forth below. 
By accepting this Participation Letter, you acknowledge the following provisions:
•that you have received and reviewed a copy of the Plan;
•that the severance and other benefits set forth in the Plan are in lieu of and will replace any severance payments or benefits to which you may otherwise have been entitled under any employment or similar agreement between you and the Company or an affiliate or any other severance plan, policy, program, agreement or arrangement of the Company or an affiliate;
•that you understand that participation in the Plan requires that you agree to the terms of the Plan and that you irrevocably and voluntarily agree to those terms; and
•that you have had the opportunity to carefully evaluate this opportunity and desire to participate in the Plan according to the terms and conditions set forth therein.
[For California-resident participants only:  Notwithstanding any provision of the Plan or this Participation Letter to the contrary, the restrictive covenant obligations set forth in Section 5.02 (Non-Solicitation; No Hire) and Section 5.03 (Non-Competition) shall not apply to you for purposes of the Plan, including for purposes of determining any severance or other benefits to which you may become entitled thereunder.]
A-1

You hereby agree that (i) your acceptance of this Participation Letter will result in your participation in the Plan subject to the terms and conditions thereof and (ii) this Participation Letter may not be amended, modified or terminated except pursuant to Article XII of the Plan. 
This Participation Letter is subject in all respects to the terms and provisions of the Plan.  In the event of any conflict between the terms of this Participation Letter and the terms of the Plan, the terms of the Plan shall govern.
Your participation in the Plan will be effective upon your acceptance of this Participation Letter.
Please indicate your acceptance of the terms of this Participation Letter by signing this letter below and returning the letter to [] at [], and retain a signed copy of this letter for your records.  If you have any questions concerning this letter, please contact [] at []. 

Sincerely,
RACKSPACE TECHNOLOGY, INC.
 
By: ________________________________
   Name:
   Title:

By signing and dating this Letter below, I accept the terms of this Participation Letter and agree to become a participant in the Plan subject to the terms and conditions thereof.

_______________________________
Name:  [INSERT NAME]

_______________________________
Date

A-2

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