Document:

<PAGE>

                          AGREEMENT OF EXISTING PARTNERS
                  OF RACKSPACE, LTD. TO FACILITATE PUBLIC OFFERING

       This Agreement is made this 27 day of March, 2000, by and between
Rackspace, Ltd. ("Rackspace" or the "Company" or the "Partnership") and all of
its present partners (which include Red Hat, Thomas Weisel and Norwest, as
defined below), all of whom are signatories to this Agreement (the "Partners").
Rackspace.com, Inc., a newly formed, Delaware corporation, is also made a party
to this Agreement ("New Rackspace").   In addition, Brian Bell and Edwin Grubbs
are made parties to this agreement with respect to the partnership interests
held by them as assignees.

NEW INVESTORS TO BE INCLUDED

       Under the terms of the Fourth Amendment to Agreement of Limited
Partnership of Rackspace, Ltd., it is expressly contemplated that the General
Partner may cause Rackspace to issue up to  530,035.34 Class C Units (the
"Additional Units") to one or more additional persons or entities (the "New
Investors"), provided that the aggregate purchase price per Unit is not less
than $5.66 per Unit.  The General Partner may also issue to the New Investors a
warrant to purchase an amount of Class C Units determined by dividing $3,000,000
by the greater of the $18.24 or the mid-point in the filing range (the
"Mid-point") set forth in the preliminary prospectus (commonly referred to as
the "red herring") which is first circulated by the Company.   It is the
intention and agreement of the parties hereto that such New Investors shall have
the benefits and obligations of the Holders as set forth herein, and that they
may become signatories to this Agreement without any further consent or
agreement of the parties to this agreement.

CERTAIN REFERENCES

The Agreement of Limited Partnership of Rackspace, Ltd. and the four existing
amendments thereto, are sometimes collectively referred to herein as the
"Partnership Agreement."  The Registration Rights Agreement dated November 30,
1999, as amended on February 22, 2000 is referred to as the "Rights Agreement."
The Support Agreement dated December 29, 1998, as amended on November 30, 1999
and again on February 22, 2000 is referred to as the "Support Agreement." For
the purposes of this agreement, Richard Yoo is referred to as "Yoo," Pat Condon
is referred to as "Condon," Dirk Elmendorf is referred to as "Elmendorf," Trout,
Ltd. is referred to as "Trout," Macroweb, LC is referred to as the "General
Partner," First Inning Investors, L.P., is referred to as "First Inning," Isom
Capital Partners I, L.P. is referred to as "Isom," The Hamilton Companies LLC is
referred to as "Hamilton," Beaulieu River Capital LC is referred to as
"Beaulieu," MiniPat & Company, Ltd. is referred to as "MiniPat," 2M Technology
Ventures, L.P., is referred to as "2M," Trango Capital, L.L.C. is referred to as
"Trango,"Red Hat, Inc. is referred to as "Red Hat," Norwest Venture Partners
VII, L.P. is referred to as "Norwest,"  Tailwind Capital Partners 2000, L.P. is
referred to as "Thomas Weisel," Graham M. Weston is referred to as "Weston,"
Morris A. Miller is referred to as

                                          1
<PAGE>

"Miller," Brian Bell is referred to as "Bell" and Edwin Grubbs is referred to
herein as "Grubbs."  The Partners, Bell, Grubbs and the New Investors are
sometimes collectively referred to herein as the "Holders."

PURPOSE OF AGREEMENT

This Agreement is made by and amongst Rackspace, New Rackspace, the Holders and
the New Investors, if any, to satisfy certain requirements and follow certain
recommendations of the Underwriters (defined below) and to facilitate the
registration and sale of the stock of New Rackspace in a public offering
registered under the Securities Act of 1993 (inclusive of the sale of such
stock, the "IPO") underwritten by Deutsche Bank, Securities, Inc., Bear, Stearns
& Co. Inc. and Thomas Weisel Partners LLC and certain other underwriters (the
"Underwriters").  The IPO will benefit the Holders as they will become
shareholders of New Rackspace pursuant to the terms of this Agreement.  This
Agreement is entered into contemporaneously with the execution of the Fourth
Amendment of the Partnership Agreement, whereby Red Hat, Thomas Weisel and
Norwest become Class C Limited Partners of the Partnership.

ACTIONS TO BE TAKEN UNDER THIS AGREEMENT

END OF OPTION RIGHTS.  The  Underwriters have requested that Weston, Miller,
Condon, Elmendorf and Yoo end their rights under Section 17 of the Second
Amendment to the Partnership Agreement to forego salary and receive options to
acquire additional interests in the Company (and New Rackspace, its successor).
If these rights are not terminated, these individuals will have the right to
acquire a substantial amount of New Rackspace's stock at prices substantially
below market value which will likely result in large earnings charges against
New Rackspace. Weston, Miller, Condon, Elmendorf and Yoo have agreed to waive
these rights.

REGISTRATION RIGHTS.  Certain of the Partners have demand and piggyback
registration rights under the terms of the Rights Agreement.   Red Hat, Norwest,
Thomas Weisel and the New Investors do not have such registration rights,
whether demand rights or piggyback rights.  The  parties desire to amend the
existing Rights Agreement to include Red Hat, Norwest, Thomas Weisel and the New
Investors as Investors under the Registration Rights Agreement.

CONVERSION TO CORPORATION.  The General Partner has broad powers to cause the
Company to convert to a corporation, including for the purpose of  facilitating
an IPO.  In order to facilitate the description of the succession of  Rackspace
to New Rackspace, the underwriters have suggested that the Holders transfer all
of their interests in the Partnership (the "Units")  to New Rackspace, in
exchange for common stock in New Rackspace (the "Common Stock").  The Partners
have agreed to make this exchange

                                          2
<PAGE>

pursuant to the terms of this Agreement and agree to allow this exchange,
whether or not the IPO occurs.

AMENDMENT OF SUPPORT AGREEMENT.  The parties desire to amend the Support
Agreement to include as Class C Limited Partners, Red Hat, Norwest, Thomas
Weisel and the New Investors.

       NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES HEREIN
MADE, THE PARTIES AGREE AS FOLLOWS:

OPTIONS

TERMINATION OF OPTION RIGHTS.  Provided that the IPO  is completed by July 31,
2000, effective April 30, 2000, Miller, Weston, Yoo, Elmendorf and Condon will
have no further right to forgo salary and receive options to acquire Units in
the Company (or stock in New Rackspace) under Section 17 of the Second Amendment
to the Partnership Agreement. Miller, Weston, Elmendorf and Condon each made an
election on January 1, 2000 to receive options in lieu of salary.  Yoo hereby
waives his right to receive options under Section 17 in lieu of salary for the
four-month period ending April 30, 2000.  Commencing January 1, 2000 and ending
April 30, 2000, Miller, Weston, Elmendorf and Condon will continue to forgo
salary and receive options to acquire Units in accordance with the terms of
Section 17 of the Second Amendment to the Partnership Agreement.

SUPPORT AGREEMENT

AMENDMENT TO SUPPORT AGREEMENT.  The Support Agreement, as amended, is further
amended to include, for the purpose of Paragraph 1,  Norwest, Red Hat, Thomas
Weisel and the New Investors, as "Class C Limited Partners."

REGISTRATION RIGHTS

       1.     CORRECTION TO REGISTRATION RIGHTS AGREEMENT. The Rights Agreement
              does not include Trango as an "Investor."  The Rights Agreement is
              hereby amended to include  Trango as an Investor, as if it had
              initially executed the Rights Agreement.

       2.     LOCK-UP AGREEMENT.  The Underwriters have required that each of
              the Holders agree not to sell their stock in New Rackspace for a
              period of 180 days following the IPO and the parties to the Rights
              Agreement are required to execute the same under the obligations
              set forth in the Rights Agreement. Therefore, each of the Holders
              agree to enter into the Lock-up Agreement attached as Exhibit A
              and deliver the same to the offices of the Company upon the
              execution of this Agreement.

                                          3
<PAGE>

       3.     PIGGYBACK AND DEMAND REGISTRATION RIGHTS- RED HAT,  THOMAS WEISEL,
              NEW INVESTORS, NORWEST.  The parties agree that Red Hat, Norwest,
              New Investors and Thomas Weisel shall have piggyback and demand
              registration rights in accordance with the provisions of Section 2
              and Section 3 of the Rights Agreement with respect to  the Units
              held by them  (and Common Stock acquired incident to the
              Exchange), shall be considered Holders of Registrable Securities
              with respect to all the Units (and Common Stock acquired incident
              to the Exchange) held by them for purposes of the Rights Agreement
              and each shall have all the benefits and obligations of an
              Investor under the Rights Agreement, the same as if they were
              direct signatories to the Rights Agreement.  Upon the Exchange (as
              defined below),  the parties agree that without further act of the
              parties, New Rackspace will be substituted in place of the Company
              for all purposes of the Rights Agreement.

       EXCHANGE OF INTERESTS

       EXCHANGE OF INTERESTS.  To accomplish various business purposes, the
       General Partner of the Partnership has the ability to cause the
       Partnership to convert to a corporation.  The Partnership Agreement
       specifically contemplates that the Company, through a successor entity,
       will have an IPO and the General Partner is given broad powers to change
       the form of the Company from a limited partnership to a corporation by
       merger or contribution of assets and liabilities, in order to effect an
       IPO.   In addition, if the Company does not have an IPO, the General
       Partner has determined that it may nevertheless be beneficial to convert
       to a corporation.  At the request of the Underwriters, the General
       Partner desires that, rather than a merger or contribution of assets and
       liabilities, the Holders exchange their Units for Common Stock, and that
       this exchange occur with the possibility that the New Rackspace may not
       complete the IPO.  The exchange will take place on a one Unit for one
       share of Common Stock basis, except for Yoo, Elmendorf, Condon, Bell,
       Grubbs and Macroweb, each of whom will receive slightly less than one
       share of Common Stock per Unit exchanged, and except for Trout, which
       will receive slightly more than one share of Common Stock per Unit
       exchanged.  Each of the Holders agree that at such time that the General
       Partner contributes all of its Units to New Rackspace, the Units of such
       Holder and of all of the Holders, without any further act of the
       Holders, shall be transferred to New Rackspace in exchange for Common
       Stock in proportion to the Holders' positive Capital Account balances,
       adjusted by treating the Partnership as having liquidated and its
       property sold at fair market value, and gains and losses allocated in
       accordance with Section 11.4 of the  Partnership Agreement, which
       proportions are set forth below (the "Exchange").   The Common Stock
       received from New Rackspace will have an appropriate legend indicating
       that it is subject to the restrictions contained in the Partnership
       Agreement (which restriction shall be removed after the IPO, if it
       occurs), and that it is restricted stock and may not be sold without an
       opinion of counsel to the satisfaction of New Rackspace that such sale
       will not be in violation of the provisions of the Securities Act of 1933.
       The

                                          4
<PAGE>

       Holders agree that no fractional shares of Common Stock will be issued,
       and as a result fractional Units shall be rounded to the nearest whole
       number as set forth below:

<TABLE>
<CAPTION>
              Partner                   Units Exchanged        Common Stock to be
              -------                   ---------------        received upon Exchange
                                                               ----------------------
<S>                                 <C>                         <C>
              Yoo                         3,600,000               3,565,714
              Condon                        800,000                 792,380
              Elmendorf                     400,000                 396,190
              Grubbs                         50,000                  49,523
              Bell                           50,000                  49,523
              Macroweb                       10,000                   9,904
              Trout                       7,232,856.2             7,279,619
              First Inning                  619,047.61              619,048
              Isom                        1,219,047.62            1,219,048
              Hamilton                      476,190.48              476,190
              Beaulieu                      357,142.86              357,143
              MiniPat                        95,238.10               95,238
              2M                            119,047.61              119,048
              Red Hat                       353,356.89              353,357
              Norwest                     1,015,901               1,015,901
              Thomas Weisel                  53,003.53               53,003
                                             ---------               ------

              Total                      16,450,831.94*          16,450,829*
</TABLE>

       *Subject to adjustment for Units held by the New Investors which will be
       exchanged on a one Unit for one share of Common Stock basis and subject
       to further adjustment for the exchange of any Units issued pursuant to
       the Warrant in favor of Trango Capital, LLC (380,952.38 Units), or any
       other option holder, all of which will be exchanged on the basis of one
       share of Common Stock for each Unit exchanged.

       DIRECTORS/RIGHTS OF PARTNERS/PROXIES

       1.     DIRECTORS OF NEW RACKSPACE.   The Class C Units Holders, The
              Hamilton Companies, LLC  and Trout have the right to appoint
              directors of New Rackspace under the terms of the Second Amendment
              to the Partnership Agreement (the "Voting Agreement").   However,
              these rights end when and if Trout, Ltd. waives its right to
              appoint five of the seven directors.  Miller and Weston are
              currently the sole directors of New Rackspace.    In order to
              timely

                                          5
<PAGE>

              appoint five additional members to New Rackspace's board of
              directors, each of the Holders hereby grant to the General
              Partner, their irrevocable proxy to vote all of the shares of
              Common Stock in New Rackspace received by them as a result of the
              Exchange, to elect and name up to five additional members to the
              board of directors of New Rackspace.  This proxy will expire on
              the earlier to occur of July 31, 2000, the date immediately prior
              to the IPO, or the date seven directors are named to New
              Rackspace's board of directors.  The General Partner agrees to
              consult with each of the Partners prior to naming any of the
              directors.   Effective the date immediately prior to the IPO, the
              Voting Agreement will terminate.  The General Partner agrees that
              it will not exercise the proxies granted under this paragraph in
              order to appoint persons who are related to Morris A. Miller or
              Graham M. Weston.

       2.     CONVERSION TO CORPORATION PRIOR TO IPO.   It is likely that the
              General Partner will determine that it is necessary to convert to
              a corporation at a time when it is not certain whether or not the
              Company will effect the IPO.   The Holders agree that all
              pre-emptive rights, rights of first refusal, share transfer
              restrictions, re-purchase rights, voting agreements, parallel exit
              rights and all other rights contained in the Partnership
              Agreement, and the Support Agreement that do not exist as a
              consequence of the application of the general corporate provisions
              of Delaware corporation law (collectively, the "Rights and
              Obligations"), shall be binding on and inure to the benefit of all
              New Rackspace's shareholders and on New Rackspace, the same as
              such Rights and Obligations are presently binding on the Partners
              and the Company; provided that all of such Rights and Obligations
              shall terminate immediately prior to the IPO.  The parties also
              agree that the Support Agreement shall terminate immediately prior
              to the IPO.  If, however, the IPO does not take place by July 31,
              2000, New Rackspace agrees to prepare the documentation necessary
              to ensure that all such Rights and Obligations are binding on New
              Rackspace, the Holders and all other shareholders of New Rackspace
              (such documents are referred to as the "Documents"), with New
              Rackspace having the discretion, to the extent reasonably
              exercised, to modify such Rights and Obligations to the extent
              necessary to accommodate the differences between a limited
              partnership and a corporation.  The Holders agree to execute
              Documents upon receipt so long as the Documents substantially
              conform to the Rights and Obligations set forth in the Partnership
              Agreement.

       3.     STOCK PLAN.   In order for New Rackspace to adopt a qualified
              incentive stock option plan, the shareholders of New Rackspace
              must adopt the plan.  The General Partner has selected a highly
              flexible plan based upon the recommendations of its SEC counsel.
              In order to approve the plan prior to the IPO, the Holders each
              give the General Partner, their irrevocable proxy to approve the
              plan recommended by the Company's counsel.  Therefore, each of the
              Holders give the General Partner their irrevocable proxy with
              respect to the Common Stock received by them incident to the
              Exchange, to exercise the voting rights of such stock to approve
              any incentive stock option plan

                                          6
<PAGE>

              (including qualified and non-qualified stock options), employee
              stock purchase plan, director option and compensation plan, and
              any other plan which is designed to enable New Rackspace to
              compensate, reward and/or incentivize its employees, agents,
              consultants and directors.  This proxy will end on the earlier to
              occur of July  31, 2000 or the IPO.

       4.     INDEMNITY OF GENERAL PARTNER.   Upon the Exchange, Macroweb shall
              no longer be the general partner of Rackspace, Ltd., but rather
              Rackspace Management, LC shall be the new general partner.  The
              Company acknowledges and agrees that the indemnity obligations
              contained in the Partnership Agreement shall continue to be
              enforceable by Macroweb and its members, officers and agents,
              against the Company and against New Rackspace, with respect to
              acts and omissions occurring while Macroweb was the general
              partner of the Company.

       MISCELLANEOUS

       1.     REPRESENTATION The parties to this Agreement acknowledge that the
              law firm of Matthews and Branscomb, P.C. has assisted in the
              preparation of this document on behalf of and as counsel for
              Trout, Ltd. and the General Partner only, and further acknowledge
              that the Partnership will pay the fees and expenses associated
              with such services.

       2.     MULTIPLE COUNTERPARTS.   This Agreement may be executed in one or
              more  counterparts, each of which shall be deemed an original but
              all of which together will constitute one and the same instrument.

       Executed as of the date first written above.

                              RACKSPACE, LTD.

                              By:  Macroweb, LC
                              Its: General Partner

                                    /s/ Graham M. Weston
                                   -----------------------------------
                                   Graham M. Weston, Member

                                   /s/ Morris A. Miller
                                   -----------------------------------
                                   Morris A. Miller, Member

                              GENERAL PARTNER:

                              Macroweb, LC

                                          7
<PAGE>

                                    /s/ Morris A. Miller
                                   ---------------------------------------------
                                   Morris A. Miller, Member

                                    /s/ Graham M. Weston
                                   ---------------------------------------------
                                   Graham M. Weston, Member

                              LIMITED PARTNERS:

                               /s/ Richard Yoo
                              --------------------------------------------------
                              Richard Yoo

                              /s/ Dirk Elmendorf
                              --------------------------------------------------
                              Dirk Elmendorf

                              /s/ Patrick Condon
                              --------------------------------------------------
                              Patrick Condon

                              Trout, Ltd.
                              By:  Knightsbridge, L.C., General Partner

                                   By: /s/ Morris A. Miller
                                      -------------------------------------

                              Isom Capital Partners I, L.P.
                              By:  BESK Funding, Inc., General Partner

                                   By: /s/ S. James Bishkin
                                      -------------------------------------
                                        S. James Bishkin, President

                              First Inning Investors, L.P.
                              By:  Trango Capital L.L.C., General Partner

                                   By: /s/ Quincy J. Lee
                                      -------------------------------------
                                        Quincy J. Lee, Manager

                              The Hamilton Companies LLC

                                   By:  /s/ Frederick Hamilton
                                      -------------------------------------

                                          8
<PAGE>

                              Beaulieu River Capital LC (formerly,
                              Weston Investment Interest, L.L.C.)

                              By: /s/ Graham Weston
                                 ------------------------------------------

                              Title:  Member
                                    ---------------------------------------

                              MiniPat & Company, Ltd.

                              By:  /s/ Patrick Condon
                                 ------------------------------------------

                              2M Technology Ventures, L.P.
                              By:  2M Technology Group, L.L.C.
                                   Its: General Partner

                              By:  /s/ Steven Leeke
                                 ------------------------------------------

                              Red Hat, Inc.

                              By:  /s/ Walter McCormick
                                 ------------------------------------------

                              Norwest Venture Partners VII, L.P.

                              By:  /s/ George Still, Jr.
                                 ------------------------------------------
                                   General Partner

                               /s/ Brian Bell
                              ---------------------------------------------
                              Brian Bell

                               /s/ Edwin Grubbs
                              ---------------------------------------------
                              Edwin Grubbs

                                          9
<PAGE>

                              Tailwind Capital Partners 2000, L.P.

                              By:  Thomas Weisel Capital Partners LLC,
                                   general partner

                                   By: /s/ David A. Baylor
                                      ---------------------------
                                   David A. Baylor, General Counsel

                              NEW INVESTORS:

                                          10
<PAGE>

                          AGREEMENT OF EXISTING PARTNERS
                  OF RACKSPACE, LTD. TO FACILITATE PUBLIC OFFERING
                     Separate Signature Page for New Investors

With respect to the 466,431 Class C Units purchased by Sequoia Capital Franchise
Fund for $2,640,000.

Sequoia Capital Franchise Fund

By: /s/ illegible
   --------------------------

With respect to the 63,604 Class C Units purchased by Sequoia Capital Franchise
Partners for $360,000.
Sequoia Capital Franchise Partners

By: /s/ illegible
   --------------------------

RACKSPACE, LTD.

By:  Macroweb, LC, general partner

     By: /s/ Graham Weston
        --------------------------

     Its:  Member
         --------------------------

                                          11<PAGE>

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR DISPOSITION MAY BE EFFECTED
WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS RELATED THERETO, (ii) AN OPINION
OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO RACKSPACE, THAT SUCH
REGISTRATIONS ARE NOT REQUIRED, (iii) RECEIPT OF NO-ACTION LETTERS FROM THE
APPROPRIATE GOVERNMENTAL AUTHORITIES, OR (iv) OTHERWISE COMPLYING WITH THE
PROVISIONS OF SECTION 7 OF THIS WARRANT.

                                 RACKSPACE, LTD.

                               WARRANT TO PURCHASE
                             SHARES OF COMMON STOCK

                       March 27, 2000 ("Date of Grant")

         THIS CERTIFIES THAT, for value received, and subject to the provisions
and upon the terms and conditions hereinafter set forth, Norwest Venture
Partners (the "Holder") is entitled to subscribe for and purchase, at an
exercise price per unit or share (as set forth in Section 1(a) and as adjusted
herein, the "Warrant Price"), up to that number of Class C Units (having the
rights of a Class C Limited Partner), or shares of fully paid and nonassessable
Common Stock (the "Shares") of RACKSPACE, LTD., a Texas limited partnership or
its successor corporation ("Rackspace"), as determined by dividing $3,000,000 by
the Warrant Price (the "Warrant Coverage").

     1.   WARRANT PRICE; TERM

          (a) WARRANT PRICE. The Warrant Price shall be the greater of (i)
$18.24 [a number determined by dividing $300,000,000 by 16,450,831.94, the
number of currently outstanding units of Rackspace], or (ii) the price which is
at the mid-point of the filing range of Rackspace's Form S-1 filed under the
Securities Act of 1933, which is circulated as its preliminary prospectus (the
"Mid-point price").

          (b) TERM. The purchase right represented by this Warrant is
exercisable, in whole or in part, at any time and from time to time one (1) year
from the Date of Grant; provided that it may not be exercised prior to the time
the Mid-point price is determined unless the Mid-point price is not determined
within four months of the Date of Grant, in which case the Warrant may be
exercised after such four month period whether or not the Mid-point price has
been determined. If the Mid-point price has not been determined, the Warrant
Price shall be $18.24.

     2.   METHOD OF EXERCISE; PAYMENT; ISSUANCE OF NEW WARRANT. Subject to
Section 1 hereof, the purchase right represented by this Warrant may be
exercised by the holder hereof, in whole or in part and from time to time, by
the surrender of this Warrant (with the notice of exercise form attached hereto
as EXHIBIT A duly executed) at the principal office of Rackspace and by the
payment to Rackspace, by wire transfer according to wire transfer instructions
provided by Rackspace, of an amount equal to the then applicable Warrant Price
multiplied by the number of Shares then being purchased. The entity or entities
in whose name(s) any certificate(s) representing Shares shall be issuable upon
exercise of this Warrant shall be deemed to have become the holder(s) of record
of, and shall be treated for all purposes

                                       -1-
<PAGE>

as the record holder(s) of, the units or shares represented thereby (and such
units or shares shall be deemed to have been issued) immediately prior to the
close of business on the date or dates upon which this Warrant is exercised. In
the event of any exercise of the rights represented by this Warrant,
certificates for the units or shares of stock so purchased shall be delivered to
the holder hereof as soon as possible and in any event within thirty days after
such exercise and, unless this Warrant has been fully exercised or expired, a
new Warrant representing the portion of the Shares, if any, with respect to
which this Warrant shall not then have been exercised shall also be issued to
the holder hereof as soon as possible and in any event within such thirty day
period.

     3. STOCK FULLY PAID. All Shares that may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance pursuant to the terms and
conditions herein, be fully paid and nonassessable, and free from all taxes,
liens and charges with respect to the issue thereof.

     4. ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES. The number and kind of
securities purchasable upon the exercise of this Warrant and the Warrant Price
shall be subject to adjustment from time to time upon the occurrence of certain
events, as follows:

          (a) RECLASSIFICATION OR MERGER. In case of any reclassification,
change or conversion of securities of the class issuable upon exercise of this
Warrant (other than a change in par value, or from par value to no par value, or
from no par value to par value, or as a result of a subdivision or combination),
or in case of any merger of Rackspace with or into another corporation (other
than a merger with another corporation in which Rackspace is the acquiring and
the surviving corporation and which does not result in any reclassification or
change of outstanding securities issuable upon exercise of this Warrant), or in
case of any sale of all or substantially all of the assets of Rackspace, or such
successor or purchasing corporation, as the case may be, or its parent
corporation, shall duly execute and deliver to the holder of this Warrant a new
Warrant (in form and substance reasonably satisfactory to the holder of this
Warrant), so that the holder of this Warrant shall have the right to receive, at
a total purchase price not to exceed that payable upon the exercise of the
unexercised portion of this Warrant, and in lieu of the Shares theretofore
issuable upon exercise of this Warrant, the kind and amount of shares of stock,
other securities, money and property receivable upon such reclassification,
change or merger by a holder of the number of Shares then purchasable under this
Warrant. Such new Warrant shall provide for adjustments that shall be as nearly
equivalent as may be practicable to the adjustments provided for in this Section
4. The provisions of this subparagraph (a) shall similarly apply to successive
reclassifications, changes, mergers, consolidations, transfers, amendments and
waivers.

          (b) SUBDIVISION OR COMBINATION OF SHARES. If Rackspace at any time
while this Warrant remains outstanding and unexpired shall subdivide or combine
its outstanding Shares, the Warrant Price shall be proportionately decreased in
the case of a subdivision or increased in the case of a combination, effective
at the close of business on the date the subdivision or combination becomes
effective.

          (c) STOCK DIVIDENDS AND OTHER DISTRIBUTIONS/CAPITAL ACCOUNT UPON
EXERCISE OF OPTION. In case Rackspace shall make or issue, or shall fix a record
date for the determination of eligible holders entitled to receive, a dividend
or other distribution with respect to the Shares (or any shares of stock or
other securities at the time issuable upon exercise of the Warrant) payable in
(a) securities of

<PAGE>

Rackspace or (b) assets (excluding cash dividends paid or payable solely out of
retained earnings), then, in each such case, the holder of this Warrant on
exercise hereof at any time after the consummation, effective date or record
date of such dividend or other distribution, shall receive, in addition to the
Shares (or such other stock or securities) issuable on such exercise prior to
such date, and without the payment of additional consideration therefor, the
securities or such other assets of Rackspace to which such Holder would have
been entitled upon such date if such Holder had exercised this Warrant on the
date hereof and had thereafter, during the period from the date hereof to and
including the date of such exercise, retained such shares and/or all other
additional stock available by it as aforesaid during such period giving effect
to all adjustments called for by this Section 4. Units issued upon exercise of
the Warrant shall be issued with a capital account (provided that Rackspace upon
such exercise is a partnership or other entity for which capital accounts are
maintained in respect of units of ownership) which shall bear the same ratio to
the total capital accounts in Rackspace as the number of such Units issued upon
exercise bear to the aggregate units of ownership in the Company then
outstanding.

          (d) ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment in the
Warrant Price, the number of Shares purchasable hereunder shall be adjusted, to
the nearest whole share, to the product obtained by multiplying the number of
Shares purchasable immediately prior to such adjustment in the Warrant Price by
a fraction, the numerator of which shall be the Warrant Price immediately prior
to such adjustment and the denominator of which shall be the Warrant Price
immediately thereafter.

          (e) CONVERSION OF SHARES. In the event that all of the authorized and
outstanding Shares are redeemed or converted or reclassified into other
securities or property pursuant to Rackspace's charter documents or otherwise,
or the Shares otherwise cease to exist, then, in such case, the Holder of this
Warrant, upon exercise hereof at any time after the date on which the Shares are
so redeemed or converted, reclassified or cease to exist (the "Termination
Date"), shall receive, in lieu of the number of Shares that would have been
issuable upon such exercise immediately prior to the Termination Date, the
securities or property that would have been received if this Warrant had been
exercised in full and the Shares received thereupon had been simultaneously
converted immediately prior to the Termination Date, all subject to further
adjustment as provided in this Warrant. Additionally, the Warrant Price shall be
immediately adjusted to equal the quotient obtained by dividing (x) the
aggregate Warrant Price of the maximum number of Shares for which this Warrant
was exercisable immediately prior to the Termination Date by (y) the number of
Shares for which this Warrant is exercisable immediately after the Termination
Date, all subject to further adjustment as provided herein.

     5. NOTICE OF ADJUSTMENTS. Whenever the Warrant Price or the number of
Shares purchasable hereunder shall be adjusted pursuant to Section 4 hereof,
Rackspace shall make a certificate signed by its chief executive officer setting
forth, in reasonable detail, the event requiring the adjustment, the amount of
the adjustment, the method by which such adjustment was calculated, and the
Warrant Price and the number of Shares purchasable hereunder after giving effect
to such adjustment, which shall be mailed (by first class mail, postage prepaid)
to the holder of this Warrant.

     6. FRACTIONAL SHARES. No fractional Shares will be issued in connection
with any exercise hereunder, but in lieu of such fractional Shares Rackspace
shall make a cash payment therefor based on the fair market value of the Shares
on the date of exercise as reasonably determined in good faith by Rackspace's
Board of Directors.
<PAGE>

     7. COMPLIANCE WITH SECURITIES ACT: DISPOSITION OF WARRANT OR SHARES.

          (a) COMPLIANCE WITH SECURITIES ACT. The holder of this Warrant, by
acceptance hereof, agrees that this Warrant, and the Shares to be issued upon
exercise hereof are being acquired for investment and that such holder will not
offer, sell or otherwise dispose of this Warrant, or any Shares to be issued
upon exercise hereof except under circumstances which will not result in a
violation of the Securities Act of 1933, as amended (the "Act"). If at the time
of any transfer or exercise of this Warrant or any of the Shares, such
securities have not been registered under the Act and are not eligible for sale
without registration under Rule 144 of the Act, Rackspace may require as a
condition of allowing such transfer or exercise, that the holder of such
securities furnish to Rackspace such information as is reasonably necessary to
establish that such transfer and exercise may be made without registration under
the Act. This Warrant and all Shares issued upon exercise of this Warrant
(unless registered under the Act) shall be stamped or imprinted with a legend in
substantially the following form:

     "THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. NO SALE OR
DISPOSITION MAY BE EFFECTED WITHOUT (i) EFFECTIVE REGISTRATION STATEMENTS
RELATED THERETO, (ii) AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY
SATISFACTORY TO RACKSPACE, THAT SUCH REGISTRATIONS ARE NOT REQUIRED OR (iii)
RECEIPT OF NO-ACTION LETTERS FROM THE APPROPRIATE GOVERNMENTAL AUTHORITIES. IN
ADDITION, NO SALE OR DISPOSITION MAY BE EFFECTED WITHOUT COMPLYING WITH THE
PROVISIONS OF SECTION 7 OF THE WARRANT UNDER WHICH THESE SECURITIES WERE ISSUED,
DIRECTLY OR INDIRECTLY."

          (b) DISPOSITION OF WARRANT OR SHARES. Subject to the provisions of
this Section 7, this Warrant may be assigned or transferred in whole or in part
by the holder hereof. With respect to any proposed offer, sale or other
disposition of this Warrant or any Shares acquired pursuant to the exercise of
this Warrant prior to registration of such Warrant or shares, the holder hereof
and each subsequent holder of this Warrant agrees to seek and obtain the written
permission of Rackspace prior thereto, describing briefly the manner thereof,
together with a written opinion of such holder's counsel, if reasonably
requested by Rackspace, to the effect that such offer, sale or other disposition
may be effected without registration or qualification (under the Act as then in
effect or any federal or state law then in effect) of this Warrant or such
Shares and indicating whether or not under the Act certificates for this Warrant
or such Shares to be sold or otherwise disposed of require any restrictive
legend as to applicable restrictions on transferability in order to ensure
compliance with such law. Upon receiving such written notice and reasonably
satisfactory opinion, if so requested, Rackspace, as promptly as practicable,
shall notify such holder whether or not such holder may sell or otherwise
dispose of this Warrant or such Shares, all in accordance with the terms of the
notice delivered to Rackspace. Any offer, sale or other disposition of this
Warrant (or any Shares acquired pursuant to the exercise of this Warrant)
without the prior written consent of Rackspace pursuant to this Section 7(b)
shall be null and void and of no effect.

     8. RIGHTS AS STOCKHOLDERS; INFORMATION. No holder of this Warrant, as such,
shall be entitled to vote or receive dividends or be deemed the holder of Shares
or any other securities of Rackspace
<PAGE>

which may at any time be issuable on the exercise hereof for any purpose, nor
shall anything contained herein be construed to confer upon the holder of this
Warrant, as such, any of the rights of a partner or stockholder of Rackspace or
any right to vote for the election of directors or upon any matter submitted to
stockholders or partners at any meeting thereof, or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise until this
Warrant shall have been exercised and the Shares purchasable upon the exercise
hereof shall have become deliverable, as provided herein.

     9. MODIFICATION AND WAIVER. This Warrant and any provision hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

     10. NOTICES. Any notice, request, communication or other document required
or permitted to be given or delivered to the holder hereof or Rackspace shall be
delivered, or shall be sent by certified or registered mail, postage prepaid, to
each such holder at its address as shown on the books of Rackspace or to
Rackspace at the address indicated therefor on the signature page of this
Warrant.

     11. BINDING EFFECT ON SUCCESSORS. Until the issuance of any new warrant
required to be issued under Section 4(a), this Warrant shall be binding upon any
corporation that issues securities in exchange for securities of the class
issuable upon exercise of this Warrant in connection with any merger,
consolidation or acquisition of all or substantially all of Rackspace's assets,
and all of the obligations of Rackspace relating to the Shares issuable upon the
exercise of this Warrant shall survive the exercise and termination of this
Warrant and all of the covenants and agreements of Rackspace shall inure to the
benefit of the successors and assigns of the holder hereof. Rackspace will, at
the time of the exercise of this Warrant, in whole or in part, upon request of
the holder hereof but at Rackspace's expense, acknowledge in writing its
continuing obligation to the holder hereof in respect of any rights (including,
without limitation, any right to registration of the shares) to which the holder
hereof shall continue to be entitled after such exercise or conversion in
accordance with this Warrant; provided, that the failure of the holder hereof to
make any such request shall not affect the continuing obligation of Rackspace to
the holder hereof in respect of such rights.

     12. LOST WARRANTS OR STOCK CERTIFICATES. Rackspace covenants to the holder
hereof that, upon receipt of evidence reasonably satisfactory to Rackspace of
the loss, theft, destruction or mutilation of this Warrant or any stock
certificate and, in the case of any such loss, theft or destruction, upon
receipt of an indemnity reasonably satisfactory to Rackspace, or in the case of
any such mutilation upon surrender and cancellation of such Warrant or stock
certificate, Rackspace will make and deliver a new Warrant or stock certificate,
of like tenor, in lieu of the lost, stolen, destroyed or mutilated Warrant or
stock certificate.

     13. DESCRIPTIVE HEADINGS. The descriptive headings of the several
paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant.

     14. GOVERNING LAW. This Warrant shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the
internal laws of the State of Texas without regard to its conflicts of laws
principles.
<PAGE>

     15. SURVIVAL. All agreements of Rackspace and the holder hereof contained
herein shall survive indefinitely until, by their respective terms, they are no
longer operative.

     16. REMEDIES. In case any one or more of the covenants and agreements
contained in this Warrant shall have been breached, the holders hereof (in the
case of a breach by Rackspace), or Rackspace (in the case of a breach by a
holder), may proceed to protect and enforce their or its rights either by suit
in equity and/or by action at law, including, but not limited to, an action for
damages as a result of any such breach and/or an action for specific performance
of any such covenant or agreement contained in this Warrant.

     17. ACCEPTANCE. Receipt of this Warrant by the holder hereof shall
constitute acceptance of and agreement to the foregoing terms and conditions.

     18. NO IMPAIRMENT OF RIGHTS. Rackspace will not, by amendment of its
charter documents through any other means, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all
such action as may be necessary or appropriate in order to protect the rights of
the holder of this Warrant against impairment. Without limiting the generality
of the foregoing, Rackspace (a) will not increase the par value of any shares of
stock issuable upon the exercise of this Warrant above the amount payable
therefor upon such exercise, and (b) will take all such action as may be
necessary or appropriate in order that Rackspace may validly and legally issue
fully paid and non-assessable Shares upon exercise of this Warrant.

     19. SEVERABILITY. If any term, provision, covenant, or restriction of this
Warrant is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Warrant shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

     20. NOTICES OF RECORD DATE. In case:

         (a) Rackspace shall take a record of the holders of its securities, for
the purpose of entitling them to receive any dividend or other distribution, or
any right to subscribe for or purchase any shares of stock of any class or any
other securities or to receive any other right; or

         (b) of any consolidation or merger of Rackspace with or into another
corporation, any capital reorganization of Rackspace, any reclassification of
the capital stock of Rackspace, or any conveyance of all or substantially all of
the assets of Rackspace to another corporation in which holders of Rackspace's
stock are to receive stock, securities or property of another corporation; or

         (c) of any voluntary dissolution, liquidation or winding-up of
Rackspace; or

         (d) of any redemption or conversion of all outstanding securities.

Then, and in each such case, Rackspace will mail or cause to be mailed to the
holder of this Warrant a notice specifying, as the case may be, (i) the date on
which a record is to be taken for the purpose of such dividend, distribution or
right, or (ii) the date on which such reorganization, reclassification,
<PAGE>

consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed,
as of which the holders of record of Rackspace's shares or units (or such stock
or securities as at the time are receivable upon the exercise of this Warrant)
shall be entitled to exchange their shares or units (or such other stock or
securities), for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up. Such notice shall be delivered at least
seven (7) days prior to the date therein specified.
<PAGE>

                                      RACKSPACE, LTD.

                                      By:  Macroweb, LC, its general partner

                                      By:  /s/ Graham Weston
                                          -------------------------------------
                                            Graham Weston, CEO

ACKNOWLEDGED AND AGREED:

/s/ George Still, Jr.
---------------------------------
Signature

Norwest Venture Partners
---------------------------------
Name of Holder
<PAGE>

                                    EXHIBIT A

                               NOTICE OF EXERCISE

To:      RACKSPACE, LTD.

         1.       The undersigned hereby elects to purchase _________________
units or shares of ________________ of RACKSPACE, LTD. pursuant to the terms of
the attached Warrant, and tenders herewith payment of the purchase price of such
shares in full.

         2.       Please issue a certificate or certificates representing said
shares in the name of the undersigned or in such other name or names as are
specified below:

                          -----------------------------
                                     (Name)

                          -----------------------------

                          -----------------------------
                                    (Address)

         3.       The undersigned represents that the aforesaid shares are being
acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the
undersigned has no present intention of distributing or reselling such shares.
In support thereof, the undersigned has executed an Investment Representation
Statement attached hereto as Schedule 1.

                                      -----------------------------------------
                                      Signature

                                      -----------------------------------------
                                      Date
<PAGE>

Schedule 1
----------

INVESTMENT REPRESENTATION STATEMENT

Purchaser:
            --------------------------------

Rackspace:  RACKSPACE, LTD. ("Rackspace")

Security:
            --------------------------------

Amount:
            --------------------------------

Date:
            --------------------------------

         In connection with the purchase of the above-listed securities (the
"Securities"), the undersigned (the "Purchaser") represents to Rackspace as
follows:

         (a)      The Purchaser is aware of Rackspace's business affairs and
financial condition, and has acquired sufficient information about Rackspace to
reach an informed and knowledgeable decision to acquire the Securities. The
Purchaser is purchasing the Securities for its own account for investment
purposes only and not with a view to, or for the resale in connection with, any
"distribution" thereof for purposes of the Securities Act of 1933, as amended
(the "Act").

         (b)      The Purchaser understands that the Securities have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of the Purchaser's investment intent as expressed herein. In this
connection, the Purchaser understands that, in the view of the Securities and
Exchange Commission ("SEC"), the statutory basis for such exemption may be
unavailable if the Purchaser's representation was predicated solely upon a
present intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or
decrease in the market price of the Securities, or for a period of one year or
any other fixed period in the future.

         (c)      The Purchaser further understands that the Securities must be
held indefinitely unless subsequently registered under the Act or unless an
exemption from registration is otherwise available. Moreover, the Purchaser
understands that Rackspace is under no obligation to register the Securities
except as set forth in the Warrant under which the Securities are being
acquired. In addition, the Purchaser understands that the certificate evidencing
the Securities will be imprinted with the legend referred to in the Warrant
under which the Securities are being purchased.

         (d)      The Purchaser is aware of the provisions of Rule 144 and 144A,
promulgated under the Act, which, in substance, permit limited public resale of
"restricted securities" acquired, directly or indirectly, from the issuer
thereof (or from an affiliate of such issuer), in a non-public offering subject
to the satisfaction of certain conditions, if applicable, including, among other
things: The availability of certain public information about Rackspace, the
resale occurring not less than one year after the party has purchased and paid
for the securities to be sold; the sale being made through a broker in an
unsolicited "broker's transaction" or in transactions directly with a market
maker (as said term is defined
<PAGE>

under the Securities Exchange Act of 1934, as amended) and the amount of
securities being sold during any three-month period not exceeding the specified
limitations stated therein.

         (e)      The Purchaser further understands that at the time it wishes
to sell the Securities there may be no public market upon which to make such a
sale, and that, even if such a public market then exists, Rackspace may not be
satisfying the current public information requirements of Rule 144 and 144A, and
that, in such event, the Purchaser may be precluded from selling the Securities
under Rule 144 and 144A even if the one-year minimum holding period had been
satisfied.

         (f)      The Purchaser further understands that in the event all of the
requirements of Rule 144 and 144A are not satisfied, registration under the Act,
compliance with Regulation A, or some other registration exemption will be
required; and that, notwithstanding the fact that Rule 144 is not exclusive, the
Staff of the SEC has expressed its opinion that persons proposing to sell
private placement securities other than in a registered offering and otherwise
than pursuant to Rule 144 will have a substantial burden of proof in
establishing that an exemption from registration is available for such offers or
sales, and that such persons and their respective brokers who participate in
such transactions do so at their own risk.

                                        Purchaser:

                                        Date:
                                               ---------------, ----

                                      -2-

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