Document:

Offer letter from the Registrant to David Belle-Isle, dated August 31, 2007

 Exhibit 10.39 
  

			
	August 31, 2007	  	

 Mr. David Belle-Isle 
 257 Eagle Trace Drive 
 Half Moon Bay, CA 
 Dear David:

 We are pleased to extend you an offer to join Rackspace Managed Hosting as the Senior Vice President of Human Resources with a start date of Monday,
October 1, 2007. Please note that the following offer is made contingent on your passing the Company’s pre-employment screening process, which includes a criminal background check, education verification and employment reference check.

 We are offering you a bi-weekly salary of $9,615, which is $250,000 annualized. In addition, you will participate in the corporate EVA bonus plan with a
personal, annualized target bonus percentage of 40% of your base salary. Also, you will be granted a total of 75,000 stock options in our parent corporation, Macro Holding, Inc., with an exercise price equal to the fair market value as determined by
the Board of Directors. The stock options will vest over four years and will be issued pursuant to the Macro Holding, Inc. 2005 Non-Qualified Stock Option Plan and our standard form of Stock Option Agreement. We will enter a severance agreement with
you that provides a severance payment in the amount of $250,000 if you are terminated without cause within 12 months of your initial start date. 
 The
Company also offers an excellent benefits package including medical, dental, disability, life insurance and 401(k). You are eligible to begin your participation in our benefits on your hire date. 
 The contents of this letter do not form an employment contract or alter your at-will employment status. All Company personnel are at-will employees. This means
that either the Company or the employee may terminate the employment relationship at any time, for any reason or no reason. Only the Chief Executive Officer or President may enter into any agreement to the contrary, whether verbal or written,
with any employee. If such Chief Executive Officer or President should choose to enter into an agreement to the contrary, it must be a written agreement signed by one of such officers to be valid.
 Again, we are pleased to represent Lanham Napier in offering you the opportunity to join Rackspace Managed Hosting.
 Sincerely, 
 Rackspace Employee Services 
 I accept the offer to join Rackspace Managed Hosting as Senior Vice President of Human Resources and agree to the terms outlined above. 
  

					
			
	/s/ David Belle-Isle	 		 	10/01/2007
	Signature	 		 	Date

  

			
	 THE MANAGED HOSTING SPECIALISTTM
	  	 9725 Datapoint Drive, Suite 100  |  San Antonio, TX 78229
 PH: 210.447.4000  |  FX: 210.447.4400  |   www.rackspace.comExecutive Severance Agreement between the Registrant and David Belle-Isle

 Exhibit 10.40 
 EXECUTIVE SEVERANCE AGREEMENT 
 THIS AGREEMENT
is entered into as of the 1st day of October 2007 by and between Rackspace US, Inc., a Texas corporation (the “Company”), and David
Belle-Isle (“Employee”). 
 WITNESSETH 
 WHEREAS, the Company is indirectly owned, in whole, by Macro Holding, Inc., a Delaware corporation (the “Parent Company”); and 
 WHEREAS, the Company considers the establishment and maintenance of a sound and vital management team to be essential to protecting and enhancing the best interests of the Company, the Parent Company and its
stockholders; and 
 WHEREAS, of even date herewith, Employee has been named as a senior officer of the Company and the Parent Company; and

 WHEREAS, the Company has determined that it is in the best interests of the Company, the Parent Company, and its stockholders to ensure
Employee’s undivided dedication to his duties without being influenced by the Employee’s uncertainty as to the Employee’s employment; 
 NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements herein contained, the Company and Employee hereby agree as follows: 
 1. Definitions: As used in this Agreement, the following terms shall have the respective meanings set forth below: 
 (a) “Cause” shall mean (i) gross negligence or willful misconduct in the performance of Employee’s duties to the
Company where such gross negligence or willful misconduct has resulted or is likely to result in substantial and material damage to the Company (as determined by the CEO or the Board of Directors of the Parent Company in good faith),
(ii) material and willful violation of any federal or state law causing material harm to the standing and reputation of the Company (as determined by the CEO or Board of Directors of the Parent Company in good faith), (iii) conviction of a
felony or crime involving moral turpitude, causing material harm to the standing and reputation of the Company (as determined by the CEO or Board of Directors of the Parent Company in good faith), or (iv) the death or Disability of the
Employee. 
 (b) “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. 
 (c)
“Involuntary Termination” means voluntary resignation by Employee upon 30 days prior written notice to the Company, following (i) a material reduction or change in the duties, responsibilities and requirements inconsistent with the
Employee’s position with the 

 
Company 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 Company that such reduction or change constitutes
an Involuntary Termination is not appropriately modified by the Company 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 100
miles from the Company’s current location. 
 2. Severance Benefit. If within twelve (12) months from the date of this
Agreement, Employee’s employment is terminated by the Company or its successor for any reason other than Cause (as defined above) or Employee becomes subject to an Involuntary Termination (as defined above), upon receipt of a general release in
a form satisfactory to Company, Employee will be entitled to receive continuation of an annualized base salary of $250,000 per year payable for a period of 12 months. 
 3. Employment with the Company. Employee agrees that he is an employee-at-will and that nothing in this Agreement shall create any express or implied right of continued employment by the Company.
Employee’s employment may be terminated at any time by the Company with or without Cause. 
 4. Successors; Binding Agreement.

 (a) This Agreement shall be binding on the Company, its successors and assigns. 
 (b) This Agreement shall inure to the benefit of and be enforceable by Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. 
 5. Notice. Whenever any notice is required hereunder, it
shall be given in writing addressed as follows: 
 If to the Employee: At the last known address shown in the Company’s
personnel records. 
  

			
	 If to the Company:
	  	Rackspace US, Inc.
		  	9725 Datapoint Drive, Suite 100
		  	San Antonio, TX 78229
		  	Attention: General Counsel

 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 5. 
 6. Governing Law. The interpretation, construction and performance of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the state of Texas without regard to the principle of conflicts of laws. 
  

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 7. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to
be an original and all of which together shall constitute one and the same instrument. 
 8. Miscellaneous. No provision of this
Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by Employee and by a duly authorized officer of the Company. No waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Failure by
Employee or the Company to insist upon strict compliance with any provision of this Agreement or to assert any right Employee or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or
right of this Agreement. Except as otherwise specifically provided herein, the rights of, and benefits payable to, Employee, Employee’s estate or Employee’s beneficiaries pursuant to this Agreement are in addition to any rights of, or
benefits payable to, Employee, Employee’s estate or Employee’s beneficiaries under any other employee benefit plan or compensation program of the Company, except as herein specifically provided. 
 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer of the Company and Employee has executed this
Agreement as of the day and year first above written. 
  

			
	COMPANY:
	
	RACKSPACE US, INC.
		
	By:	 	/s/ Lanham Napier
	Lanham Napier, President

	
	
	EMPLOYEE:
	
	/s/ David Belle-Isle
	DAVID BELLE-ISLE

  

 3Severance and Release Agreement between the Registrant and David Belle-Isle

 Exhibit 10.41 
 SEVERANCE AGREEMENT AND RELEASE 
 This Severance Agreement and Release (“Agreement”)
is entered into effective October 31, 2008, by and between David Belle-Isle (hereinafter “Employee” or “Belle-Isle”) and Rackspace US, Inc. acting on its own behalf as well as on behalf of all related entities, both parent
and subsidiaries, specifically including Rackspace Hosting, Inc. (hereinafter collectively “Rackspace”). Hereinafter, Employee and Rackspace shall collectively be called the Parties. 
 RECITALS: 
 WHEREAS, Employee was employed as Rackspace’s Senior Vice President,
Human Resources effective October 1, 2007; 
 WHEREAS, the Parties have agreed that it is in their respective best interests for the
employment relationship to end, and that Employee has determined to resign effective as of the date hereof, and to enter into this Agreement pursuant to which Employee will receive certain consideration and will release Rackspace from all
liabilities. 
 NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, and other good and valuable consideration,
the receipt and legal sufficiency of which are hereby acknowledged, Rackspace and Employee agree as follows: 
 1. Resignation. Employee hereby
resigns as an employee and officer of Rackspace. The effective date of Employee’s termination from employment and resignation from all officer positions shall be October 31, 2008 (“Departure Date”).  
 2. Payments and Other Considerations. 
 a. In
consideration of the Release being given by Employee hereunder, Rackspace agrees to pay to Employee the sum of $151,667 as severance and $10,739.96 for unused earned time off (ETO). These payments will be made within thirty days after the date
hereof. 
 b. As further consideration for this Agreement, Rackspace agrees that Employee will have the right to retain 93,750 Vested Options
issued pursuant to the Rackspace, Inc. Stock Option Agreement, with a Date of Grant of October 1, 2007, and Employee will have the right to exercise these 93,750 Vested Options in accordance with said stock option agreement until April 30,
2009, and Employee’s right to exercise said 93,750 Vested Options shall not terminate as a result of him not being a Service Provider until April 30, 2009. All other non-vested options under the October 1, 2007 Rackspace Inc. Stock
Option Agreement shall terminate as of the date hereof. The October 1, 2007 Rackspace Inc. Stock Option Agreement is hereby amended to incorporate the foregoing agreement. 
  

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 c. Employee acknowledges and agrees that the payments to be made hereunder shall be accepted by Employee
as, and shall be considered as, payments for the releases granted hereby, and in lieu of notice for unemployment compensation purposes. In addition, Rackspace will pay Employee all reasonable unreimbursed expenses in accordance with company policy.

 d. Rackspace will allow Employee to keep his cell phone, and his cell phone number, for use on Employee’s personal cell phone plan.
Rackspace will facilitate this by agreeing to port the number to Employee’s cell phone provider. 
 e. Rackspace shall not be obligated
to make any further or additional payment to Employee in any amount or for any purpose whatsoever. 
 3. Release. 
 a. As a material inducement to Rackspace to pay the consideration described above, together with the Employee’s agreement to forego the actions
herein described, Employee hereby releases, waives, acquits and forever discharges Rackspace, its predecessors, successors, parents, subsidiaries, assigns, agents, directors, officers, employees, representatives, attorneys, affiliated companies, and
all persons acting by, through, under or in concert with any of them, from any and all charges, complaints, claims, controversies, demands, rights, disputes, and causes of action of any nature whatsoever, known or unknown, asserted or unasserted,
accrued or not accrued, arising before or existing when this Agreement is executed, which Employee may have or claim to have against any of the persons or entities released regarding any matter. 
 b. This release and waiver specifically includes but is not limited to any claim or cause of action arising under Title VII of the Civil Rights Act of
1964, 42 U.S.C.A. §§ 2000 et seq., as amended by the Civil Rights Act of 1991; the Americans With Disabilities Act, 42 U.S.C. §§ 12101 et seq.; 42 U.S.C. §§ 1981; the Civil Rights Act of
1991, as amended; the Texas Commission on Human Rights Act, Tex. Lab. Code §§21.001 et seq.; Texas Labor Code §§451.001 et seq.; the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.
§§ 621 et seq.; the Older Workers Benefit Protection Act of 1990; the Employment Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq.; the Family and Medical Leave Act; the Fair Labor
Standards Act; or any other federal, state or local statute or common law cause of action of similar effect regarding employment related causes of action of employees against their employer, or for breach of contract, promissory estoppel or any
other legal theory. 
 c. This release and waiver specifically includes but is not limited to any claim or cause of action arising under the
Age Discrimination in Employment Act of 1967, as amended 29 U.S.C. §§ 621 et seq., and the Older Workers Benefit Protection act of 1990. Employee acknowledges that he is not waiving claims that may arise after this Agreement has
become enforceable. Employee acknowledges that he is receiving benefits under this Agreement to which he would not otherwise be entitled. 
 d. Employee is advised to review this Agreement with an attorney concerning its effect prior to executing it. 
  

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 e. Employee acknowledges that the payments and other considerations to be received pursuant to this
Agreement, as specifically set forth above at Paragraph 2, are more than Employee would otherwise be entitled, and constitutes valid consideration for this Agreement. 
 f. In further consideration for the payments and other considerations set forth in Paragraph 2, Employee agrees to: (1) not assert any claims described in or otherwise released by the preceding paragraphs against
Rackspace or the affiliated or related entities, officers, agents, directors, servants, staff or employees of Rackspace, or any and all parties in privity with Rackspace; and (2) indemnify and hold harmless Rackspace and the affiliated or
related entities, officers, agents, directors, servants, staffs or employees of Rackspace and any and all parties in privity with Rackspace, for any claims described in Paragraphs 3(a) and 3(b) which may be asserted by the Employee or any other
person or entity claiming by, through, under or on behalf of Employee. 
 g. Employee further acknowledges and agrees that except as set
forth in Paragraph 2(b) above, he is foregoing and releasing the right to exercise any options he has, if any, to purchase the securities of the Employer including but not limited to its parent, Rackspace Hosting, Inc. and agrees that all such
options, if any, are terminated and no longer in effect 
 h. Employee shall return to Rackspace all notebook computers, documents, access
badge, and any other company property. 
 4. Noncompetition and Non-Solicitation. In consideration of the additional benefits provided to Employee
hereunder to which he is not otherwise entitled pursuant to the Executive Severance Agreement (including, without limitation, the increased severance payments, bonus payments, and option exercise extension) Employee covenants and agrees that he
shall not within the United States of America and whether directly or indirectly, and whether on his own behalf, or on behalf of any other person, firm, company or association, and whether as an employee, director, principal, agent, consultant or in
any other capacity whatsoever in competition with Rackspace, at any time during the period of six (6) months immediately following the Departure Date, seek employment from, accept employment with, or offer to provide services to or carry on or
assist with, or otherwise be concerned or interested in any business or enterprise which shall be in competition with Rackspace’s business of managed hosting or hosted email. Employee agrees to waive any objection to the validity of this
covenant and acknowledges that these limited prohibitions are reasonable as to time, geographical area and scope of activities to be restrained and that these limited prohibitions do not impose a greater restraint than is necessary to protect
Rackspace’s goodwill, proprietary information and other business interests. For twelve (12) months after the Departure Date, Employee will not, directly or indirectly, solicit or attempt to solicit customers or prospective customers of
Rackspace identified to Employee during his employment that will or may divert business or business opportunities from Rackspace. Employee agrees that Employee will not solicit, hire or recruit, directly or indirectly or aid in the hiring or
recruitment of any of Rackspace’s personnel during the twelve (12) month period following the Departure Date. 
  

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 5. Confidentiality and Non-Disclosure of Proprietary Information. 
 a. Employee shall not, directly or indirectly, for Employee’s own benefit or for the benefit of another, reveal or disclose to any other person,
firm, corporation, or other party or make, directly or indirectly, any commercial or other use of any information not publicly known about Rackspace or its prospects, services, suppliers, products, customers, finances, data processing, purchasing,
accounting or marketing systems, such information being privileged, confidential business and/or trade secret information of Rackspace. Employee agrees that he will not contact any of Rackspace’s customers or former customers for a period of
one year other than in connection with business unrelated to Rackspace. Employee further acknowledges that he has signed an agreement entitled Confidentiality and Intellectual Property Assignment to which Employee acknowledges and agrees he is
obligated according to the terms set forth therein. 
 b. Further, as a result of Employee’s employment by Rackspace, Employee may have
had access to, or knowledge of, confidential business information or trade secrets of third parties. Employee also agrees to preserve and protect the confidentiality of such third-party confidential information and trade secrets to the same extent,
and on the same basis, as the privileged confidential business and/or trade secret information of Rackspace. 
 c. All written materials,
records, and other documents made by, or coming into the possession of, Employee during the period of Employee’s employment by Rackspace which contains or discloses privileged, confidential business and/or trade secret information shall be and
remain the property of Rackspace. Upon termination of Employee’s employment with Rackspace, Rackspace promptly shall deliver the same, and all copies thereof, to Rackspace. 
 6. Non-Disparagement. Each of Rackspace and Employee shall not, nor shall either of them, directly or indirectly through any agent, representative or affiliate, at any time make false, misleading or disparaging
statements or representations, or statements or representations that could be interpreted as such, whether written or oral, regarding the other, and with respect to Employee, including but not limited to, statements or representations regarding
Rackspace’s products, services, management, employees and customers. 
 7. Confidentiality of Agreement. Except as provided below, Employee and
Rackspace agree to maintain in confidence both the existence and terms of this Agreement. Rackspace may disclose the existence and terms of this Agreement consistent with business necessity. Employee may disclose the existence and terms of this
Agreement to his spouse, legal and/or financial advisor. 
 8. Legal Fees. In the event it shall be necessary for any party hereto to institute legal
action to enforce any of the terms and conditions or provisions contained herein, or as the result of the breach hereof, the prevailing party in such action or proceeding shall be entitled to costs and reasonable attorneys fees. 
 9. Entire Agreement. This Agreement represents the entire agreement by and between parties, and there are no other agreements or understandings other than those
contained in this Agreement. This Agreement may not be changed except by written agreement executed by the parties. 
  

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 10. Binding Heirs, Successors and Assigns. Except as herein expressly provided, the terms and provisions of this
Agreement shall inure to the benefit of and be binding upon the heirs, successors, assigns and legal representatives of the respective parties. 
 11.
Jurisdiction. The substantive laws of Texas govern the validity, construction, enforcement and interpretation of this Agreement and exclusive venue for any dispute between the parties shall be Bexar County, Texas or the United States District
Court in San Antonio, Texas. 
 12. Headings. The headings in this Agreement have been used for administrative convenience only and shall not be used
in interpreting or construing the meaning of any provision in this Agreement. 
 13. Invalid Provision. If any provision of this Agreement is or may
be held by a court of competent jurisdiction to be invalid, void, or unenforceable to any extent, the validity of the remaining parts, terms or provision of this Agreement shall not be affected thereby, and such illegal or invalid part, term, or
provision shall be deemed not to be part of this Severance Agreement and Release. The remaining provisions shall nevertheless survive and continue in full force and effect without being invalidated in any way. 
 14. Counterparts. This Agreement may be executed in a number of identical counterparts, each of which for all purposes is deemed an original and all of which
constitute collectively one Agreement. 
 15. Acceptance and Revocation Procedures. Employee acknowledges that he was given this Agreement on
October 30, 2008. Employee has been afforded a full twenty-one (21) days after receiving this Agreement to consider it, and that Employee has fully informed himself of and understands the terms, contents, conditions and effects of this
Agreement. Employee also has been given an opportunity to review this Agreement, at his own expense, with his counsel. In addition, Employee acknowledges and understands that he has seven (7) days following his execution of this Agreement to
revoke it. To be effective, any such revocation must be communicated in writing to Alan Schoenbaum, Senior Vice President and General Counsel at Rackspace’s corporate office located at 5000 Walzem Road, San Antonio, Texas 78218. 
  

									
	Employee:	 		 	
			
	/s/ David Belle-Isle	 		 	Date: 10/31/2008
	David Belle-Isle	 		 		 	
			
	Rackspace US, Inc.	 		 	
				
	By:	 	/s/ Alan Schoenbaum	 		 	Date: 10/31/2008
		 	Alan Schoenbaum,	 		 		 	
		 	Senior Vice President and General Counsel	 		 		 	

  

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