X0306 4 2016-11-03 1 0001107694 RACKSPACE HOSTING, INC. RAX 0001521244 Pichler Karl C/O RACKSPACE HOSTING, INC. 1 FANATICAL PLACE SAN ANTONIO TX 78218 0 1 0 0 CFO Common Stock 2016-11-03 4 D 0 157256 D 0 D Non-Qualified Stock Option (right to buy) 19.51 2016-11-03 4 D 0 3462 0.00 D Common Stock 3462 0 D Non-Qualified Stock Option (right to buy) 18.66 2016-11-03 4 D 0 3777 0.00 D Common Stock 3777 0 D Non-Qualified Stock Option (right to buy) 38.62 2016-11-03 4 D 0 20000 0.00 D Common Stock 20000 0 D Non-Qualified Stock Option (right to buy) 35.41 2016-11-03 4 D 0 5193 0.00 D Common Stock 5193 0 D Non-Qualified Stock Option (right to buy) 54.12 2016-11-03 4 D 0 11627 0.00 D Common Stock 11627 0 D Non-Qualified Stock Option (right to buy) 53.47 2016-11-03 4 D 0 10862 0.00 D Common Stock 10862 0 D Non-Qualified Stock Option (right to buy) 40.43 2016-11-03 4 D 0 10277 0.00 D Common Stock 10277 0 D Non-Qualified Stock Option (right to buy) 47.51 2016-11-03 4 D 0 7295 0.00 D Common Stock 7295 0 D Non-Qualified Stock Option (right to buy) 37.89 2016-11-03 4 D 0 13721 0.00 D Common Stock 13721 0 D Performance Restricted Stock Unit 0.00 2016-11-03 4 D 0 15898 0.00 D Common Stock 15898 0 D Performance Restricted Stock Unit 0.00 2016-11-03 4 D 0 46343 0.00 D Common Stock 46343 0 D Disposed of pursuant to that certain Agreement and Plan of Merger between the Issuer, Inception Parent, Inc. and Inception Merger Sub, Inc., dated as of August 26, 2016 (the "Merger Agreement"), in exchange for a cash consideration of $32.00 per share without interest thereon (the "Merger Consideration") payable at closing or a future date, as set forth in the Merger Agreement. Certain of these securities were restricted stock units ("RSUs") that represented the Reporting Person's right to receive Common Stock shares of the Issuer. Cancelled pursuant to the Merger Agreement, in exchange for Merger Consideration, except for out of the money stock options, which were cancelled without any cash payment made to the holder. /s/ William Alberts by Power of Attorney 2016-11-10