Rackspace Lump Sum Policy Evette Ybarra, The Relocation Gal evette.ybarra@rackspace.com

100 53% We Serve 300,000+ 6,000+ Rackers 9 Worldwide Data Centers About Rackspace Global Footprint Customers in 120+ Countries Annualized Revenue Over $1.7B 53% 100 OF THE We Serve FORTUNE® 300,000+ Customers 110,000+ Servers 45,000+ VMs ≅70 PB Stored 6,000+ Rackers 9 Worldwide Data Centers Portfolio of Hosted Solutions Dedicated - Cloud - Hybrid www.rackspace.com

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Global Relocation Packages How Lump Sum Applies to Policies UK Relocation Package Relocation is offered to critical skills external hires only. Rackspace provides a fixed lump sum for all moves equally. US Relocation Package Relocation offered to both internal and external hires. Tiered relocation policy approach, based on salary level. Lump sums included in each package are a fixed amount with a cap. Permanent Relocation Package Relocation is offered to Rackers applying for a local position in another country. Lump sum is a fixed amount with a cap. Short Term Assignment 3 months- 1 year No lump sum is offered for short-term assignments, instead they receive per diem. Long Term Assignment 1 year – 3 years Relocation is offered for all long-term assignments. Lump sum is a fixed amount with a cap. www.rackspace.com

Relocation at Rackspace In 2014, 342 moves total. 259 Domestic and 83 International. Movement to and from Israel, United Kingdom, Hong Kong, Australia, Switzerland, Untied States, and Mexico. Our goal is standard policies and practices, address compliance and risk while still allowing flexibility to meet changing business and Racker needs. Packages are consistent and fair to Racker. Limits exceptions. Providing a lump sum allows the Racker flexibility to use the funds as they see fit. The challenge we are experiencing today with a lump sum approach is different countries have different tax rules. Rackspace recruits on talent brand, so there is less need for rich relocation packages. www.rackspace.com