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>

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

The First Amendment to Agreement of Existing Partners of Rackspace, Ltd. to
Facilitate Public Offering (this "Amendment") is made effective the 10th day
of May, 2000 by and between Rackspace, Ltd. ("Rackspace" or the "Company" or
the "Partnership") and all of its present 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 amendment with respect to the partnership interests held by them as
assignees.  This Amendment amends the Agreement of Existing Partners of
Rackspace, Ltd. to Facilitate Public Offering dated March 28, 2000 (the
"Agreement").  The purpose of this Amendment is to increase the number of
share of Common Stock that each Unit holder of the {Partnership will receive
the exchange.  The Section of the Agreement entitled "EXCHANGE OF INTERESTS"
is hereby amended in its entirety as follows:

          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 1.2 shares of Common Stock basis, except for Yoo,
          Elmendorf, Condon, Bell, Grubbs and Macroweb, each of whom will
          receive slightly less than 1.2 shares of Common Stock per Unit
          exchanged, and except for Trout, which will receive slightly more
          than 1.2 chares 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

                                       -1-

<PAGE>

          restriction shall be removed after the IPO, if it occurs), and that
          it is restricted stock and maynot be sold without an opinion of
          counsel to teh satisfaction of New Rackspace that such sale will
          not be in violation of the provisions of the Securities Act of
          1933. The 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>
Richard Yoo                     3,600,000                   4,278,857
Patrick Condon                    800,000                     950,857
Dirk Elmendorf                    400,000                     475,429
Edwin Grubbs                       50,000                      59,428
Brian Bell                         50,000                      59,428
Macroweb, LC                       10,000                      11,885
Trout, Ltd.                     7,232,856.2                 8,735,543
First Inning Investors, L.P.      619,047.61                  742,858
Isom Capital Partners, I, L.P.  1,219,047.62                1,462,858
The Hamilton Companies            476,190.48                  571,428
Beaulieu River Capital LC         357,142.86                  428,572
MiniPat & Company, Ltd.            95,238.10                  114,286
2M Techology Ventures, L.P.       119,047.61                  142,858
Red Hat, Inc.                     353,356.89                  424,028
Norwest Venture Partners
  VII, L.P.                     1,015,901                   1,219,081
Tailwind Capital Partners
  2000, L.P.                       53,003.53                   63,604
Sequoia Capital Franchise Fund    466,431.09                  559,717
Sequoia Capital Franchise
  Partners                         63,604.24                   76,325

Total                          16,980,867                  20,377,042

</TABLE>

          It is further agreed that all holders of existing options and
          warrants granted by the Partnership will receive 1.2 shares of
          common stock for each Unit they are entitled to receive under the
          applicable options and warrants, subject to any subsequent stock
          split, reverse split or other recapitalization of Newco.

                                       -2-

<PAGE>

          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

                                                -----------------------------
                                                Graham M. Weston, Member

                                                -----------------------------
                                                Morris A. Miller, Member

                                          RACKSPACE.COM, INC.

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

                                          Its:
                                              --------------------------

                                          GENERAL PARTNER:

                                          Macroweb, LC

                                                -----------------------------
                                                Morris A. Miller, Member

                                                -----------------------------
                                                Graham M. Weston, Member

                                          LIMITED PARTNERS:

                                                -----------------------------
                                                Richard Yoo

                                                -----------------------------
                                                Dirk Elmendorf

                                                -----------------------------
                                                Patrick Condon

                                       -3-

<PAGE>

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

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

                                                Its:
                                                    -------------------------

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

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

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

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

                                       -4-

<PAGE>

                                           The Hamilton Companies LLC

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

                                                Title:
                                                      -----------------------

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

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

                                                Title:
                                                      -----------------------

                                           MiniPat & Company, Ltd.

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

                                                Title:
                                                      -----------------------

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

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

                                                Its:
                                                    -------------------------

                                       -5-

<PAGE>

                                           Red Hat, Inc.

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

                                           Its:
                                               ------------------------------

                                           Norwest Venture Partners VII, L.P.

                                           By:
                                              -------------------------------
                                              General Partner

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

                                                Its:
                                                    -------------------------

                                           ------------------------------------
                                           Brian Bell

                                           ------------------------------------
                                           Edwin Grubbs

                                           Tailwind Capital Partners 2000, L.P.

                                                By:   Thomas Weisel Capital
                                                      Partners, LLC,
                                                      general partner

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

                                           Sequoia Capital Franchise Fund

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

                                           Its:
                                               ------------------------------

                                           Sequoia Capital Franchise Partners

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

                                           Its:
                                               ------------------------------

                                        -6-<PAGE>

                                RACKSPACE, LTD.

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "AGREEMENT"), by and among Rackspace,
Ltd., a Texas limited partnership ("EMPLOYER"), and Lew Moorman ("EMPLOYEE"),
is hereby entered into as of April 26, 2000.

                                 R E C I T A L S

         A.       Employee is employed hereunder by Employer in a confidential
                  relationship wherein Employee, in the course of Employee's
                  employment with Employer, has and will continue to become
                  familiar with and aware of Confidential Information (as
                  hereinafter defined), and future plans with respect thereto,
                  all of which has been and will be established and maintained
                  at great expense to Employer; this information is a trade
                  secret and constitutes the valuable goodwill of Employer.

                               A G R E E M E N T S

         In consideration of the mutual promises, terms, covenants and
conditions set forth herein and the performance of each, the parties hereto
hereby agree as follows:

         1.       EMPLOYMENT AGREEMENT.

                  Employer hereby employs Employee as its Vice President of
         Product Development and Strategic Planning. As such, Employee shall
         have responsibilities, duties and authority reasonably accorded to and
         expected of an executive of Employer and as determined by the General
         Partner and/or Board of Directors of the Employer. Employee hereby
         accepts this employment upon the terms and conditions herein contained
         and agrees to devote Employee's full working time, undivided attention
         and best efforts to promote and further the business of Employer.

                  Employee shall faithfully adhere to, execute and fulfill all
         policies established by the Employer.

         2.       COMPENSATION. For all services rendered by Employee,
Employer shall compensate Employee as follows:

                  BASE SALARY AND BONUS. The base salary payable to Employee
         shall be $3,269.23 for each two week period, payable at the end of
         each two week period. In addition, at the end of each calendar year,
         provided Employee is an employee at such time, Employee shall receive
         a $20,000.00 bonus.

                  STOCK OPTIONS. Employee will receive the right to receive
         Class D Units of the Employer, under the terms of the Option Agreement
         executed by Employee and Employer contemporaneously with the execution
         of this Agreement (the "Option Agreement").

                  EXECUTIVE PERQUISITES, BENEFITS, AND OTHER COMPENSATION.
         Employee shall be entitled to receive additional benefits and
         compensation from Employer in such form and to such extent as
         specified below:

         1 of 9

<PAGE>

                           Employer shall pay all premiums for coverage for
                  Employee under health, and other insurance plans that
                  Employer may have in effect from time to time.

                           Employer shall reimburse Employee for all business
                  travel and other out-of-pocket expenses reasonably incurred
                  by Employee in the performance of Employee's services
                  pursuant to this Agreement. All reimbursable expenses shall
                  be appropriately documented in reasonable detail by Employee
                  upon submission of any request for reimbursement, and in a
                  format and manner consistent with Employer's expense
                  reporting policy.

                           Employee shall have three weeks of paid vacation for
                  each twelve months of employment, such vacations to be taken
                  at times which are mutually convenient to Employee and
                  Employer.

         3.       NON-COMPETITION.

                  Employee recognizes that Employer's willingness to enter into
         this Agreement is based in material part on Employee's agreement to
         the provisions of this SECTION 3, and that Employee's breach of the
         provisions of this Section could materially damage Employer.
         Therefore, in consideration of the benefits to be received by
         Employee pursuant to this Agreement, including the options under the
         Option Agreement, and receipt of Confidential Information, Employee
         agrees that Employee will not, during the period of Employee's
         employment by or with Employer, and for twelve months immediately
         following the termination of Employee's employment with Employer for
         any reason whatsoever (except for termination as a result of an
         Involunary Termination or a termination which is not for Cause, as
         hereafter defined, in which case the period shall be six months from
         the date Employee last receives compensation from the Employer) (the
         "NONCOMPETE TERM"), directly or indirectly, for himself or on behalf
         of or in conjunction with any other person, persons, company,
         partnership, corporation or business of whatever nature:

                           engage, in any capacity whatsoever, including
                  without limitation as an officer, director, shareholder,
                  owner, partner, joint venturer, manager, advisor, employee,
                  independent contractor or consultant, in any Competitive
                  Business (as defined herein) any where in the world, due to
                  the world-wide nature of the Employer's business (the
                  "TERRITORY");

                           call upon any person or entity, who is, at that
                  time, an employee, consultant or independent contractor of
                  Employer or any of its subsidiaries, for the purpose or with
                  the intent or effect of enticing such employee, independent
                  contractor or consultant away from or out of the employ or
                  contract with Employer or any of its subsidiaries; or

                           call upon any person or entity which is, at that
                  time, or which has been within one year prior to that time, a
                  customer of Employer or any of its subsidiaries for the
                  purpose of soliciting or selling services or products in a
                  Competitive Business within the Territory.

         2 of 9

<PAGE>

                  Notwithstanding the above, the foregoing covenant shall not
         be deemed to prohibit Employee from acquiring as an investment not
         more than one percent of the capital stock of a competing business,
         whose stock is traded on a national securities exchange or
         over-the-counter.

                  Because of the difficulty of measuring economic losses to
         Employer as a result of a breach of the foregoing covenant, and
         because of the immediate and irreparable damage that could be caused
         to Employer for which it would have no other adequate remedy,
         Employee agrees that the foregoing covenant may be enforced by
         Employer, in the event of a breach by Employee, by injunctions,
         restraining orders and other equitable actions.

                  It is agreed by the parties that the foregoing covenants in
this SECTION 3 impose a reasonable restraint on Employee in light of the
activities and business of Employer on the date of the execution of this
Agreement. For purposes of this Agreement, "Competitive Business" means any
business that competes with Employer, including, without limitation, any
business that provides, sells or leases dedicated servers for connection with
the internet as its primary product/service line; provided that Competitive
Business shall also include any business that provides, sells or leases
dedicated servers for connection with the internet in circumstances where such
services are not its primary product/service line, unless Employee first seeks
and obtains the consent of Employer, which consent shall not be unreasonably
withheld and shall be based upon a determination by the Employer that the
position of Employee position (i) will not involve or relate to and will be
separated from the business that provides, sells or leases dedicated servers
for connection with the internet, and (ii) the position of Employee will not
harm or potentially harm the business of the Employer.

                   The covenants in this SECTION 3 are severable and separate,
         and the unenforceability of any specific covenant shall not affect the
         provisions of any other covenant. Moreover, in the event any court of
         competent jurisdiction shall determine that the scope, time or
         territorial restrictions set forth are unreasonable, then it is the
         intention of the parties that such restrictions be enforced to the
         fullest extent that the court deems reasonable, and this Agreement
         shall be reformed in accordance therewith.

                  All of the covenants in this SECTION 3 shall be construed as
         an agreement independent of any other provision in this Agreement, and
         the existence of any claim or cause of action of Employee against
         Employer, whether predicated on this Agreement or otherwise, shall not
         constitute a defense to the enforcement by Employer of such covenants.

         4.       RETURN OF EMPLOYER PROPERTY. For purposes of this Agreement,
"COMPANY MATERIALS" shall mean documents or other media or tangible items that
contain or embody Confidential Information or any other information concerning
the business, operations or plans of Employer or any entity controlled by or
under common control with Employer (an "AFFILIATE"), whether such documents
have been prepared by Employee or others. "COMPANY MATERIALS" include, but are
not limited to, blueprints, drawings, photographs, charts, graphs, notebooks,
customer lists, computer disks, tapes or printouts, sound recordings and other
printed, typewritten or handwritten documents, as well as samples, prototypes,
models, products and the like. All Company Materials shall be and remain the
sole property of Employer, or such Affiliate, as the case may be. During the
time period during which Employee is employed by Employer (the "Term"),
Employee agrees that Employee will not remove any Company

         3 of 9

<PAGE>

Materials from the business premises of Employer or deliver any Company
Materials to any person or entity outside of Employer, except as required to
do so in connection with performing the duties of Employee. Employee further
agrees that, immediately upon the termination of Employee's employment by
Employee or Employer for any or no reason (including a wrongful termination),
or during the Term if so requested by Employer, Employee shall return all
Company Materials, apparatus, equipment and other physical property, or any
reproduction of such property. Because of the difficulty of measuring economic
losses to Employer as a result of a breach of this SECTION 4, and because of
the immediate and irreparable damage that could be caused to Employer for
which it would have no other remedy, Employee agrees that this SECTION 4 may
be enforced by Employer in the event of breach by him, by injunctions and
restraining orders.

         5.       AT WILL EMPLOYMENT. Employee shall be employed on at
"At-Will" basis, and as such may be terminated at any time, with or without
cause. If, within the first twelve months of employment, employment is
terminated by the Employer or its successor for any reason other than Cause
(as defined below) or employee becomes subject to an Involuntary Termination
(as defined below), employee will be entitled to receive continuation of base
salary and insurance benefits for a period of 6 months.

"Cause" shall mean (i) negligence, gross negligence or willful misconduct in
the performance of employee's duties to the Employer, (ii) violation of any
federal or state law which harms or could potentially harm the standing and
reputation of the Employer (as determined by the Board of Directors or General
Partner of Employer in good faith), (iii) indictment of a felony or crime
involving moral turpitude, (iv) submitting a false statement to the Employer
or a third party on behalf of the Employer, with the intention to deceive the
Employer or such third party, (iv) the death or Disability of the Employee, or
(v) a breach of this Agreement by Employee.

"Disability of Employee" means, the expiration of a continuous period of one
hundred and eighty (180) days during which Employee is unable to perform his
assigned duties due to physical or mental incapacity.

"Involuntary Termination" means voluntary resignation by Employee upon 30 days
prior written notice to the Employer, following (i) a material reduction or
change in the duties, responsibilities and requirements inconsistent with the
Employee's position with the Employer and Employee's prior duties,
responsibilities and requirements (taking into account the difference in job
title and duties that may occur following an acquisition but that do not
actually result in a material change in employee's job duties,
responsibilities and requirements), which, after written notice from the
Employee to the Employer that such reduction or change constitutes an
Involuntary Termination is not appropriately modified by the Employer within
ten business days of such written notice; (ii) any reduction in base
compensation; or (iii) a requirement that employee relocate to a location more
than 50 miles from the Employer's current location (unless the location is
Austin Texas, in which case such requirement shall not constitute an
Involuntary Termination).

         6.       Upon termination of employment, Employee shall be entitled
to receive all compensation earned and all benefits and reimbursements due
through the effective date of termination. All other rights and obligations of
Employer and Employee under this Agreement shall cease as of the effective
date of termination, except that Employee's obligations under SECTIONS 3, 4,
6, 7, 8 AND 13 hereof shall survive such termination in accordance with their
terms.

         4 of 9

<PAGE>

         7.       INVENTIONS.

                  Employee agrees to promptly disclose in writing to Employer
         all "INVENTIONS", (which term includes improvements, inventions, works
         of authorship, trade secrets, technology, computer programs, formulas,
         compositions, ideas, designs, processes, techniques, know-how and
         data, whether patentable or not patentable) made or conceived or
         reduced to practice or developed by Employee, either alone or jointly
         with others, during the Term. Employee also agrees to disclose to the
         CEO or COO of Employer Inventions conceived, reduced to practice, or
         developed by Employee within six (6) months of termination of
         Employee's employment with Employer; such disclosures shall be
         received by Employer in confidence (to the extent they are not
         assigned in (b) below) and do not extend the assignment made in
         Section (b) below. Employee agrees not to disclose Inventions covered
         by this SECTION 6 to any person outside of Employer unless requested
         to do so by management personnel of Employer.

                  Employee agrees that all Inventions which Employee makes,
         conceives, reduces to practice or develops (in whole or in part,
         either alone or jointly with others) during his employment shall be
         the sole property of Employer and Employee hereby assigns such
         Inventions and all rights therein to Employer. Employer shall be the
         sole owner of all rights in connection therewith.

                  Employee agrees to perform, during and after Employee's
         employment with Employer, all acts deemed necessary or desirable by
         Employer to permit and assist it, at Employer's expense, in
         evidencing, perfecting, obtaining, maintaining, defending and
         enforcing Employer's rights in any Inventions and/or Employee's
         assignment with respect to such Inventions in any and all countries.
         Such acts may include, but are not limited to, execution of documents
         and assistance or cooperation in legal proceedings. Employee hereby
         irrevocably designates and appoints Employer and its duly authorized
         officers and agents, as Employee's agents and attorneys-in-fact to
         act for and in Employee's behalf and instead of Employee, to execute
         and file any documents and to do all other lawfully permitted acts to
         further the above purposes with the same legal force and effect as if
         executed by Employee.

                  Any assignment of copyright hereunder includes all rights of
         paternity, integrity, disclosure and withdrawal and any other rights
         that may be known as or referred to as "moral rights" (collectively,
         "MORAL RIGHTS"). To the extent that such Moral Rights cannot be
         assigned under applicable law and to the extent the following is
         allowed by the laws in the various jurisdictions where Moral Rights
         exist, Employee hereby waives such Moral Rights and consents to any
         action of Employer that would violate such Moral Rights in the absence
         of such consent. Employee agrees to confirm such waivers and consents
         from time to time as requested by Employer.

                  Employee has attached to this Agreement a complete list of
         all existing Inventions to which Employee claims ownership as of the
         date of this Agreement and that Employee desires to specifically
         clarify are not subject to this Agreement, and Employee acknowledges
         and agrees that such list is complete. If no such list is attached to
         this Agreement, Employee represents that Employee has no such
         Inventions at the time of signing this Agreement.

         5 of 9

<PAGE>

         8.       CONFIDENTIALITY.

                  Employee acknowledges and agrees that all Confidential
         Information (as defined below) is confidential and a valuable, special
         and unique asset of Employer that gives Employer an advantage over its
         actual and potential, current and future competitors. Employee further
         acknowledges and agrees that all Confidential Information shall be the
         sole property of Employer. At all times, both during the term of
         Employee's employment and after the termination of Employee's
         employment for any reason (including wrongful termination), Employee
         shall hold all Confidential Information in strict confidence, and
         shall not use any Confidential Information except for the benefit of
         Employer, in accordance with the duties assigned to Employee by
         Employer. Employee shall not, at any time (either during or after the
         term of Employee's employment), disclose any Confidential Information
         to any person or entity (except other employees of Employer who have
         a need to know the information in connection with the performance of
         their employment duties ), or copy, reproduce, modify, decompile, or
         reverse engineer any Confidential Information, or remove any
         Confidential Information from Employer's premises, without the prior
         written consent of Employer, or permit any other person to do so.
         Employee shall take reasonable precautions to protect the physical
         security of all documents and other material containing Confidential
         Information (regardless of the medium on which the Confidential
         Information is stored). This Agreement applies to all Confidential
         Information, whether now known or later to become known to Employee.

                  As used in this Agreement, the term "CONFIDENTIAL
         INFORMATION" shall mean any information that was or will be
         developed, created, or discovered by or on behalf of Employer, or
         which became or will become known by, or was or is conveyed to
         Employer, which has commercial value in Employer's business.
         "CONFIDENTIAL INFORMATION" includes, but is not limited to,
         information about trade secrets, computer programs, designs,
         technology, ideas, know-how, processes, formulas, compositions, data,
         techniques, improvements, inventions (whether patentable or not),
         works of authorship, business and product development plans, the
         salaries and terms of compensation of other employees, customers and
         other information concerning Employer's actual or anticipated
         business, research or development, or which is received in confidence
         by or for Employer from any other person. Employee agrees that
         Employee's employment creates a relationship of confidence and trust
         between Employee and Employer with respect to Confidential
         Information.

                  Because of the difficulty of measuring economic losses to
         Employer as a result of a breach of this SECTION 7, and because of the
         immediate and irreparable damage that could be caused to Employer for
         which it would have no other adequate remedy, Employee agrees that this
         SECTION 7 may be enforced by Employer in the event of a breach by
         Employee by injunctions and restraining orders.

         6 of 9

<PAGE>

         9.       NO PRIOR AGREEMENTS. Employee hereby represents and warrants
to Employer that the execution of this Agreement by Employee and his
employment by Employer and the performance of Employee's duties hereunder will
not violate or be a breach of any agreement with a former employer, client or
any other person or entity. Further, Employee agrees to indemnify Employer for
any claim, including but not limited to attorneys' fees and expenses of
investigation, by any such third party that such third party may now have or
may hereafter come to have against Employer based upon or arising out of any
noncompetition agreement, invention or secrecy agreement between Employee and
such third party which was in existence as of the date of this Agreement.

         10.      ASSIGNMENT; BINDING EFFECT. Employee understands that he has
been selected for employment by Employer on the basis of Employee's personal
qualifications, experience and skills. Employee, therefore, shall not assign
all or any portion of Employee's performance under this Agreement. Subject to
the preceding two sentences, this Agreement shall be binding upon, inure to
the benefit of and be enforceable by the parties hereto and their respective
heirs, legal representatives, successors and assigns. Therefore Employer
include a successors of Rackspace, Ltd., as well as an acquirer of all or
substantially all of the assets of Employer.

         11.      COMPLETE AGREEMENT. This Agreement is not a promise of
future employment. This Agreement supersedes any other agreements or
understandings, written or oral, between Employer, or any predecessor of
Employer, and Employee, and Employee has no oral representations,
understandings or agreements with Employer or any of its officers, directors
or representatives covering the same subject matter as this Agreement.

         This written Agreement is the final, complete and exclusive statement
and expression of the agreement between Employer and Employee and of all the
terms of this Agreement, and it cannot be varied, contradicted or supplemented
by evidence of any prior or contemporaneous oral or written agreements. This
written Agreement may not be later modified except by a written instrument
signed by a duly authorized officer of Employer and Employee, and no term of
this Agreement may be waived except by a written instrument signed by the
party waiving the benefit of such term.

         12.      NOTICE. Whenever any notice is required hereunder, it shall
be given in writing addressed as follows:

                  TO EMPLOYER:                112 East Pecan, Suite 600
                                              San Antonio, Texas 78205
                                              Attention: President

                  TO EMPLOYEE:
                                              ---------------------------------

Notice shall be deemed given and effective three days after the deposit in the
U.S. mail of a writing addressed as above and sent first class mail,
certified, return receipt requested, or when actually received. Either party
may change the address for notice by notifying the other party of such change
in accordance with this SECTION 11.

         13.      SEVERABILITY; HEADINGS. If any portion of this Agreement is
held invalid or inoperative, the other portions of this Agreement shall be
deemed valid and operative and, so far as is reasonable and possible, effect
shall be given to the intent manifested by the portion held

         7 of 9

<PAGE>

invalid or inoperative. The Section headings herein are for reference purposes
only and are not intended in any way to describe, interpret, define or limit
the extent or intent of the Agreement or of any part hereof.

         14.      ARBITRATION.

                  (1)    Any controversy or claim arising out of or relating to
         this Agreement, or the breach thereof, shall be settled by binding
         arbitration by a single arbitrator in accordance with the Commercial
         Arbitration Rules of the American Arbitration Association in San
         Antonio, Texas (the "Rules"). Upon receipt of notice of any dispute to
         be settled by binding arbitration, the American Arbitration
         Association shall use its best efforts to appoint a single arbitrator
         within thirty (30) days after receipt of such notice. The arbitrator
         shall be determined by the Employee and the Employer, unless the
         parties are unable to agree upon the arbitrator, in which case the
         arbitrator shall be chosen in accordance with the Rules. The above
         notwithstanding, the Employer shall have the right to seek and obtain
         injunctive or other equitable relief from a court of competent
         jurisdiction, in the event that Employee violates the terms of this
         Agreement including but not limited to Sections 3 and 8.

                  (2)    The arbitrator shall not have the authority to add to,
         detract from, or modify any provision hereof, nor shall the arbitrator
         award exemplary or punitive damages to either party. A decision by the
         arbitrator shall be final and binding. Judgment may be entered on the
         arbitrator's award in any court having jurisdiction, and such award
         shall not be appealable.

         15.      GOVERNING LAW. This Agreement shall in all respects be
governed by and construed in accordance with the laws of the State of Texas.

         16.      COUNTERPARTS. This Agreement may be executed simultaneously
in two or more counterparts, each of which shall be deemed an original and all
of which together shall constitute but one and the same instrument. Facsimile
transmission of any signed original document and/or retransmission of any
signed facsimile transmission will be deemed the same as delivery of an
original. At the request of any party, the parties will confirm facsimile
transmission by signing a duplicate original document.

         8 of 9

<PAGE>

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

                                    RACKSPACE, LTD.

                                    By:  Macroweb, LC, its general partner

                                    BY:   /s/ GRAHAM M. WESTON
                                          -------------------------------------
                                          NAME:  GRAHAM M. WESTON

                                          TITLE: MEMBER

                                    /s/ Lew Moorman
                                    --------------------------------------------
                                    Lew Moorman

         9 of 9

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