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                                                                   Exhibit 10.10
                                                                   -------------

                           RIVERSTONE NETWORKS, INC.
                          2000 EQUITY INCENTIVE PLAN
                            (AMENDED AND RESTATED)

1.   PURPOSE

     The purpose of this Equity Incentive Plan (the "Plan") is to advance the
interests of Riverstone Networks, Inc. (the "Company") and its subsidiaries and
affiliates by enhancing their ability to attract and retain employees and other
individuals or entities who are in a position to make significant contributions
to the success of the Company and its subsidiaries through awards based on the
Company's common stock, $.01 par value ("Stock"), and cash incentives.

     The Plan is intended to accomplish these goals by enabling the Company to
grant awards ("Awards") in the form of Options, Stock Appreciation Rights,
Restricted Stock or Unrestricted Stock Awards, Deferred Stock Awards,
Performance Awards, Other Stock-Based Awards or loans or supplemental grants, or
combinations thereof, all as more fully described below.

2.   ADMINISTRATION

     Unless otherwise determined by the Board of Directors of the Company (the
"Board"), the Plan will be administered by a committee of the Board designated
for such purpose (the "Committee").   During such period as the Plan is
administered by the Board rather than by a committee of the Board, all
references herein to "Committee" shall be deemed to refer to the Board.

     The Committee shall consist of at least two directors.  A majority of the
members of the Committee shall constitute a quorum, and all determinations of
the Committee shall be made by a majority of its members.  Any determination of
the Committee under the Plan may be made without notice or meeting of the
Committee by a writing signed by a majority of the Committee members.  During
such times as the Stock is registered under the Securities Exchange Act of 1934,
as amended (the "1934 Act"), at least two members of the Committee shall be
"non-employee directors" within the meaning of Rule 16b-3 promulgated under the
1934 Act and "outside directors" within the meaning of Section 162(m)(4)(C)(i)
of the Internal Revenue Code of 1986, as amended (the "Code") (the "Outside
Directors").  If any member of the Committee is not an Outside Director, a sub-
committee (the "Sub-Committee") consisting solely of the Outside Directors shall
administer the Plan in connection with Awards to "officers" of the Company
within the meaning of Section 16(b) of the 1934 Act or with respect to any Award
intended to be exempt under Section 162(m) of the Code.  Any references to the
Committee in this Plan shall also mean the Sub-Committee.

     The Committee will have authority, not inconsistent with the express
provisions of the Plan and in addition to other authority granted under the
Plan, to:  (a) grant Awards at such time or times as it may choose; (b)
determine the size of each Award, including the number of shares of
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Stock subject to the Award; (c) determine the type or types of each Award; (d)
determine the terms and conditions of each Award; (e) waive compliance by a
holder of an Award with any obligations to be performed by such holder under an
Award and waive any terms or conditions of an Award; (f) amend or cancel an
existing Award in whole or in part (and if an award is canceled, grant another
Award in its place on such terms and conditions as the Committee shall specify),
except that the Committee may not, without the consent of the holder of an
Award, take any action under this clause with respect to such Award if such
action would adversely affect the rights of such holder; (g) prescribe the form
or forms of any instruments to be used under the Plan, including any written
notices and elections required of Participants (as defined in Section 5), and
change such forms from time to time; (h) adopt, amend and rescind rules and
regulations for the administration of the Plan; and (i) interpret the Plan and
decide any questions and settle all controversies and disputes that may arise in
connection with the Plan. Such determinations and actions of the Committee, and
all other determinations and actions of the Committee made or taken under
authority granted by any provision of the Plan, will be conclusive and will bind
all parties. Nothing in this paragraph shall be construed as limiting the power
of the Committee to make adjustments under Sections 7.3 or 8.6.

     The Committee may delegate to one or more senior officers of the Company
who are also directors of the Company its duties under the Plan subject to such
conditions and limitations as the Committee may prescribe, except that only the
Committee may designate and make grants to Participants (i) who are subject to
Section 16 of the 1934 Act or any successor statute, including, without
limitation, decisions on timing, amount and pricing of Awards, or (ii) who at
the time of grant are (or are expected to be) "covered employees" within the
meaning of Section 162(m)(3) of the Code.

     Notwithstanding the foregoing, prior to the earlier of the date on which
the Company becomes a separate public company for purposes of Section 162(m) of
the Code or the date on which the Committee consists of at least two "outside
directors" (within the meaning of Section 162(m)(4)(C)(i) of the Code), a
committee of "outside directors" (as so defined) of Cabletron Systems, Inc.
("Cabletron") shall act upon all Awards intended to qualify for the performance-
based compensation exception under Section 162(m) of the Code.

3.   EFFECTIVE DATE AND TERM OF PLAN

     The Plan has been approved by the Board and by Cabletron as sole
stockholder of the Company.  No Award may be granted under the Plan after May
14, 2010, but Awards previously granted may extend beyond that date.

4.   SHARES SUBJECT TO THE PLAN

     (a)  Number of Shares.  Subject to adjustment as provided in Section 8.6,
the aggregate number of shares of Stock that may be delivered under the Plan
will be 45,000,000.  If any Award requiring exercise by the Participant for
delivery of Stock terminates without having been exercised in full, or if any
Award payable in Stock or cash is satisfied in cash rather than Stock, the
number of shares of Stock as to which such Award was not exercised or for which
cash was substituted will be available for future grants.
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     (b)  Shares to be Delivered.  Stock delivered under the Plan may be either
authorized but unissued Stock or previously issued Stock acquired by the Company
and held in treasury.  No fractional shares of Stock will be delivered under the
Plan.

     (c)  Special Limitations.  No Participant may be granted Options or Stock
Appreciation Rights in any calendar year with respect to more than (in the case
of each such type of award) 8,500,000 shares of Stock or, if less, the total
number of shares of Stock then available for awards under the Plan.

5.   ELIGIBILITY AND PARTICIPATION

     Each key employee of the Company or any of its subsidiaries or affiliates
(an "Employee") and each other individual or entity (other than employees of the
Company or any of its subsidiaries or affiliates, but including, without
limitation, directors of the Company or any of its subsidiaries or affiliates
and employees of or other providers of services to Cabletron Systems, Inc. or
any of its subsidiaries) who, in the opinion of the Committee, is in a position
to make a significant contribution to the success of the Company or its
subsidiaries will be eligible to receive Awards under the Plan (each such
Employee, other individual or entity receiving an Award, a "Participant").
Without limiting the foregoing, Participants may also include (i) individuals
who have accepted an offer of employment from the Company or its subsidiaries or
affiliates and who the Company or its subsidiaries or affiliates reasonably
believe will be key employees upon commencing such employment (each a "New
Hire"), and (ii) individuals (whether or not described in the first sentence of
this Section) who, at the time of a spin-off of the Company (as described in
Section 9) from Cabletron, are holding options to acquire stock of Cabletron.

6.   TYPES OF AWARDS

     6.1.  OPTIONS

     (a)  Nature of Options.  An option ("Option") is an Award giving the
recipient the right on exercise thereof to purchase Stock.  Both "incentive
stock options" as defined in Section 422(b) of the Code (any Option intended to
qualify as an incentive stock option being hereinafter referred to as an "ISO")
and Options that are not ISOs may be granted under the Plan.  ISOs shall be
awarded only to individuals who are employed by the Company or by a parent or
subsidiary corporation as those terms are defined in Section 424 of the Code.
Each Option awarded under the Plan shall be a non-ISO unless it is expressly
designated as an ISO at time of grant.

     (b)  Exercise Price.  The exercise price of an Option will be determined by
the Committee subject to the following:

          (1)  The exercise price of an ISO or an Option intended to qualify as
     performance based compensation under Section 162(m) of the Code shall not
     be less than 100% of the fair market value of the Stock subject to the
     Option, determined as of the time the Option is granted.
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          (2)  In no case may the exercise price paid for Stock which is part of
     an original issue of authorized Stock be less than the par value per share
     of the Stock.

     (c)  Duration of Options.  The latest date on which an Option may be
exercised will be the tenth anniversary of the day immediately preceding the
date the Option was granted, or such earlier date as may have been specified by
the Committee at the time the Option was granted.

     (d)  Exercise of Options.  An Option will become exercisable at such time
or times, and on such conditions, as the Committee may specify.  The Committee
may at any time and from time to time accelerate the time at which all or any
part of the Option may be exercised.  Except as otherwise determined by the
Committee, there shall be added to any period taken into account in determining
the vesting or exercisability of an Option periods during which a Participant
who is an Employee is on an unpaid leave of absence (or other unpaid absence)
from the Company.  For example, if a portion of an Option would otherwise vest
and/or become exercisable on the first anniversary of the date of grant assuming
that the Participant continues in employment and if, during the one-year period
immediately following the date of grant, the Participant is given and takes an
unpaid three-month leave of absence, the portion of the Option that would
otherwise have vested and/or become exercisable on the first anniversary of the
date of grant will vest and/or become exercisable on the date which follows such
anniversary by three months, assuming continued employment by the Participant
and except as otherwise determined by the Committee, and subsequent
vesting/exercisability dates will similarly be moved back by three months.  Any
exercise of an Option must be in writing, signed by the proper person and
delivered or mailed to the Company, accompanied by (1) any documents required by
the Committee and (2) payment in full in accordance with paragraph (e) below for
the number of shares for which the Option is exercised.

     (e)  Payment for Stock.  Stock purchased on exercise of an Option must be
paid for as follows:  (1) in cash or by check (acceptable to the Company in
accordance with guidelines established for this purpose), bank draft or money
order payable to the order of the Company; or (2) if so permitted by the
Committee, (i) by delivery of shares of Stock which have been held for at least
six months (unless the Committee approves a shorter period) and which have a
fair market value equal to the exercise price, (ii) by delivery of a full
recourse promissory note of the Participant to the Company containing such terms
as are specified by the Committee, (iii) by delivery of an unconditional and
irrevocable undertaking by a broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or (iv) by any combination of the
foregoing permissible forms of payment.

     6.2. STOCK APPRECIATION RIGHTS.

     (a)  Nature of Stock Appreciation Rights.  A Stock Appreciation Right
("Stock Appreciation Right") is an Award entitling the holder on exercise to
receive an amount in cash or Stock or a combination thereof (such form to be
determined by the Committee) determined in whole or in part by reference to
appreciation, from and after the date of grant, in the fair market
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value of a share of Stock. Stock Appreciation Rights may be based solely on
appreciation in the fair market value of Stock or on a comparison of such
appreciation with some other measure of market growth such as (but not limited
to) appreciation in a recognized market index. The date as of which such
appreciation or other measure is determined shall be the exercise date unless
another date is specified by the Committee.

     (b)  Grant of Stock Appreciation Rights.  Stock Appreciation Rights may be
granted in tandem with, or independently of, Options granted under the Plan.

          (1)  Rules Applicable to Tandem Awards.  When Stock Appreciation
     Rights are granted in tandem with Options:  (A) the Stock Appreciation
     Right will be exercisable only at such time or times, and to the extent,
     that the related Option is exercisable and will be exercisable in
     accordance with the procedure required for exercise of the related Option;
     (B) the Stock Appreciation Right will terminate and no longer be
     exercisable upon the termination or exercise of the related Option, except
     that a Stock Appreciation Right granted with respect to fewer than the full
     number of shares covered by an Option will not be reduced until the number
     of shares as to which the related Option has been exercised or has
     terminated exceeds the number of shares not covered by the Stock
     Appreciation Right; (C) the Option will terminate and no longer be
     exercisable upon the exercise of the related Stock Appreciation Right; and
     (D) the Stock Appreciation Right will be transferable only with the related
     Option.

          (2)  Exercise of Independent Stock Appreciation Rights.  A Stock
     Appreciation Right not granted in tandem with an Option will become
     exercisable at such time or times, and on such conditions, as the Committee
     may specify.  Except as otherwise determined by the Committee, there shall
     be added to any period taken into account in determining the vesting or
     exercisability of a Stock Appreciation Right periods during which a
     Participant who is an Employee is on an unpaid leave of absence (or other
     unpaid absence) from the Company.  The Committee may at any time accelerate
     the time at which all or any part of the Stock Appreciation Right may be
     exercised.

     Any exercise of an independent Stock Appreciation Right must be in writing,
signed by the proper person and delivered or mailed to the Company, accompanied
by any other documents required by the Committee.

     6.3. RESTRICTED AND UNRESTRICTED STOCK.

     (a)  Grant of Restricted Stock.  Subject to the terms and provisions of the
Plan, the Committee may grant shares of Stock in such amounts and upon such
terms and conditions as the Committee shall determine subject to the
restrictions described below ("Restricted Stock").

     (b)  Restricted Stock Agreement.  The Committee may require, as a condition
to an Award, that a recipient of a Restricted Stock Award enter into a
Restricted Stock Award Agreement, setting forth the terms and conditions of the
Award.  In lieu of a Restricted Stock Award Agreement, the Committee may provide
the terms and conditions of an Award in a notice
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to the Participant of the Award, in the resolution approving the Award, or in
such other manner as it deems appropriate. Any stock certificate representing
the Restricted Stock shall bear an appropriate legend to reflect the applicable
restrictions.

     (c)  Transferability and Other Restrictions.  Except as otherwise provided
in this Section 6.3, the shares of Restricted Stock granted herein may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable period or periods established by the Committee
and the satisfaction of any other conditions or restrictions established by the
Committee (such period during which a share of Restricted Stock is subject to
such restrictions and conditions is referred to as the "Restricted Period").
Except as the Committee may otherwise determine under Sections 7.1 or 7.2, if a
Participant dies or suffers a Status Change (as defined in Section 7.2) for any
reason during the Restricted Period, the Company may purchase the shares of
Restricted Stock subject to such restrictions and conditions for the amount of
cash paid by the Participant for such shares; provided, that if no cash was paid
by the Participant such shares of Restricted Stock shall be automatically
forfeited to the Company.

     During the Restricted Period with respect to any shares of Restricted
Stock, the Company shall have the right to retain in the Company's possession
the certificate or certificates representing such shares.

     (d)  Removal of Restrictions.  Except as otherwise provided in this Section
6.3, a share of Restricted Stock covered by a Restricted Stock Award shall
become free from restrictions under the Plan upon completion of the Restricted
Period, including the passage of any applicable period of time and satisfaction
of any conditions to vesting.  Except as otherwise determined by the Committee,
there shall be added to any Restricted Period required to be satisfied in
determining the vesting or exercisability of an Award of Restricted Stock
periods during which a Participant who is an Employee is on an unpaid leave of
absence (or other unpaid absence) from the Company.  The Committee shall have
the right at any time, in its sole discretion, immediately to waive all or any
part of the restrictions and conditions with regard to all or any part of the
shares held by any Participant.

     (e)  Voting Rights, Dividends and Other Distributions.  During the
Restricted Period, Participants holding shares of Restricted Stock granted
hereunder may exercise full voting rights and shall receive all regular cash
dividends paid with respect to such shares.  Except as the Committee shall
otherwise determine, any other cash dividends and other distributions paid to
Participants with respect to shares of Restricted Stock, including any dividends
and distributions paid in shares, shall be subject to the same restrictions and
conditions as the shares of Restricted Stock with respect to which they were
paid.

     (f)  Other Awards Settled with Restricted Stock.  The Committee may, at the
time any Award described in this Section 6 is granted, provide that any or all
of the Stock delivered pursuant to the Award will be Restricted Stock.

     (g)  Unrestricted Stock.  Subject to the terms and provisions of the Plan,
the Committee may grant shares of Stock free of restrictions under the Plan
("Unrestricted Stock") in such amounts and upon such terms and conditions as the
Committee shall determine.
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     6.4. DEFERRED STOCK.

     A Deferred Stock Award is an unfunded and unsecured promise by the Company
to deliver shares of Stock in the future ("Deferred Stock").  Delivery of the
Stock will take place at such time or times, and on such conditions, as the
Committee may specify.  The Committee may at any time accelerate the time at
which delivery of all or any part of the Stock will take place.  At the time any
Award described in this Section 6 is granted, the Committee may provide that any
or all of the Stock delivered pursuant to the Award will be Deferred Stock.

     6.5. PERFORMANCE AWARDS.

     The Committee may, at the time an Award described in Sections 6.1, 6.2,
6.3, 6.4 or 6.7 is granted, impose the additional condition that performance
goals must be met prior to the Participant's realization of any vesting, payment
or benefit under the Award.  In addition, the Committee may make awards
entitling the Participant to receive an amount in cash upon attainment of
specified performance goals (a "Cash Incentive").  Any Award or Cash Incentive
made subject to performance goals as described in the preceding two sentences
shall be a "Performance Award" subject to the provisions of this Section 6.5 in
addition to any other applicable provisions of the Plan or the Award.
Performance Awards may consist of Cash Incentives or Awards that are intended to
qualify for the performance-based compensation exception under Section 162(m) of
the Code, other than Options or Stock Appreciation Rights intended to qualify
for such exception by reason of the special rules under Section 162(m) of the
Code applicable to stock options and stock appreciation rights granted at an
exercise price not less than fair market value on the date of grant, ("Qualified
Performance Awards") or Cash Incentives or Awards that either are not intended
so to qualify or are Options or Stock Appreciation Rights intended to qualify
for such exception by reason of the special rules under Section 162(m) of the
Code applicable to stock options and stock appreciation rights granted at an
exercise price not less than fair market value on the date of grant ("Other
Performance Awards").  The Committee will determine the performance measures,
the period or periods during which performance is to be measured and all other
terms and conditions applicable to the Performance Award.  The performance
measures to which a Performance Award is subject may be related to personal
performance, corporate performance, departmental performance or any other
category of performance established by the Committee.  In the case of a
Qualified Performance Award, payment under the Award or of the Cash Incentive
must be conditioned on the satisfaction of one or more "qualified performance
measures" preestablished by the Committee in accordance with the rules under
Section 162(m) of the Code and on certification (within the meaning of the rules
under Section 162(m) of the Code) by the Committee that such measure or measures
have been met or exceeded.  For purposes of the preceding sentence, a qualified
performance measure is an objectively determinable measure of performance based
on any one or more of the following (on a consolidated, divisional, subsidiary,
line of business or geographical basis or in combinations thereof):  (i) sales;
revenues; assets; expenses; earnings before or after deduction for all or any
portion of interest, taxes, depreciation or amortization, whether or not on a
continuing operations or an aggregate or per share basis; return on equity,
investment, capital or
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assets; inventory level or turns; one or more operating ratios; borrowing
levels, leverage ratios or credit rating; market share; capital expenditures;
cash flow; stock price; stockholder return; or any combination of the foregoing;
or (ii) acquisitions and divestitures (in whole or in part); joint ventures and
strategic alliances; spin-offs, split-ups and the like; reorganizations;
recapitalizations, restructurings, financings (issuance of debt or equity) and
refinancings; transactions that would constitute a change of control; or any
combination of the foregoing. A qualified performance measure and targets with
respect thereto determined by the Committee need not be based upon an increase,
a positive or improved result or avoidance of loss. The maximum number of shares
of Stock subject to Performance Awards (other than Cash Incentives) awarded to
any Participant in any three-calendar-year period shall be 5,000,000 shares. The
maximum amount payable under Cash Incentives to any Participant for any year
shall be $5,000,000.

     6.6. LOANS AND SUPPLEMENTAL GRANTS.

     (a)  Loans.  The Company may make a full recourse loan to a Participant,
either at the time of or after the grant to him or her of any Award.  Such a
loan may be made in connection with either the purchase of Stock under the Award
or the payment of any federal income tax in respect of income recognized as a
result of the Award.  The Committee will have full authority to decide whether
to make such a loan and to determine the amount, terms and conditions of the
loan, including the interest rate (which may be zero), whether the loan is to be
secured or unsecured, the terms on which the loan is to be repaid and the
conditions, if any, under which it may be forgiven.  However, no loan may have a
term (including extensions) exceeding ten years in duration.

     (b)  Cash Grants.  In connection with any Award, the Committee may at the
time such Award is made or at a later date provide for and make a cash payment
to the Participant not to exceed an amount equal to (a) the amount of any
federal, state and local income tax on ordinary income for which the Participant
will be liable with respect to the Award, plus (b) an additional amount on a
grossed-up basis necessary to make him or her whole after tax, discharging all
the Participant's income tax liabilities arising from all payments under this
Section 6, all based on such reasonable estimates of applicable tax rates as the
Committee may determine.

     6.7. OTHER STOCK-BASED AWARDS.

     (a)  Nature of Awards.  The Committee may grant other Awards under which
Stock is or may in the future be acquired ("Other Stock-Based Awards").  Such
Awards may include, without limitation, debt securities convertible into or
exchangeable for shares of Stock upon such conditions, including attainment of
performance goals, as the Committee shall determine.  Such convertible or
exchangeable securities may have such terms and conditions as the Committee may
determine at the time of grant.  However, no convertible or exchangeable debt
shall be issued unless the Committee shall have provided (by Company right of
repurchase, right to require conversion or exchange, or other means deemed
appropriate by the Committee) a means of avoiding any right of the holders of
such debt to prevent a Company transaction by reason of covenants in such debt.
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     (b)  Purchase Price; Form of Payment.  The Committee may determine the
consideration, if any, payable upon the issuance or exercise of an Other Stock-
Based Award.  The Committee may permit payment by certified check or bank check
or other instrument acceptable to the Committee or by surrender of other shares
of Stock (excluding shares then subject to restrictions under the Plan).

     (c)  Forfeiture of Awards; Repurchase of Stock; Acceleration or Waiver of
Restrictions.  The Committee may determine the conditions under which an Other
Stock-Based Award shall be forfeited or, in the case of an Award involving a
payment by the recipient, the conditions under which the Company may or must
repurchase such Award or related Stock.  At any time the Committee may in its
sole discretion accelerate, waive or amend any or all of the limitations or
conditions imposed under any Other Stock-Based Award.

7.   EVENTS AFFECTING OUTSTANDING AWARDS

     7.1. DEATH.

     Except as the Committee may otherwise determine, if a Participant dies the
following will apply:

     (a)  All Options and Stock Appreciation Rights held by the Participant
immediately prior to death, whether or not otherwise exercisable, may be
exercised by the Participant's executor or administrator or the person or
persons to whom the Option or Stock Appreciation Right is transferred by will or
the applicable laws of descent and distribution, at any time within the one year
period ending with the first anniversary of the Participant's death (or such
shorter or longer period as the Committee may determine), and shall thereupon
terminate.  In no event, however, shall an Option or Stock Appreciation Right
(i) be or become exercisable pursuant to this subsection prior to the date (upon
or following a spin-off of the Company), if any, specified with respect to other
exercises of the Option or Stock Appreciation Right pursuant to Section 9(a)(i),
or (ii) remain exercisable beyond the latest date on which it could have been
exercised without regard to this Section 7.

     (b)  All Restricted Stock held by the Participant must be transferred to
the Company (and, in the event the certificates representing such Restricted
Stock are held by the Company, such Restricted Stock will be so transferred
without any further action by the Participant) in accordance with Section
6.3(c).

     (c)  Any payment or benefit under a Deferred Stock Award, Performance Award
or Other Stock-Based Award to which the Participant was not irrevocably entitled
prior to death will be forfeited and the Award canceled as of the time of death.

     7.2. TERMINATION OF SERVICE (OTHER THAN BY DEATH).

     If (i) a Participant who is an Employee ceases to be an Employee for any
reason other than death, (ii) there is a termination (other than by reason of
death or satisfactory completion of the
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project or service as determined by the Committee) of the consulting, service or
similar relationship in respect of which a non-Employee Participant was granted
an Award hereunder or (iii) a New Hire's offer of employment is terminated prior
to the New Hire commencing employment with the Company or the New Hire does not
commence his or her employment with the Company within two months after receipt
of an Award hereunder (such termination of the employment or other relationship
being hereinafter referred to as a "Status Change"), then, except as the
Committee may otherwise determine, the following will apply:

     (a)  All Options and Stock Appreciation Rights held by the Participant that
were not exercisable immediately prior to the Status Change shall terminate at
the time of the Status Change.  Any Options or Stock Appreciation Rights that
were exercisable immediately prior to the Status Change will continue to be
exercisable for a period of ninety (90) days and shall thereupon terminate,
unless the Award provides by its terms for immediate termination in the event of
a Status Change or unless the Status Change results from a discharge for cause
which in the opinion of the Committee casts such discredit on the Participant as
to justify immediate termination of the Award.  In no event, however, shall an
Option or Stock Appreciation Right remain exercisable beyond the latest date on
which it could have been exercised without regard to this Section 7.  For
purposes of this Section, in the case of a Participant who is an Employee, a
Status Change shall not be deemed to have resulted by reason of (i) a sick leave
or other bona fide leave of absence approved for purposes of the Plan by the
Committee, so long as the Employee's right to reemployment is guaranteed either
by statute or by contract, or (ii) a transfer of employment between the Company
and a subsidiary or between subsidiaries, or to the employment of a corporation
(or a parent or subsidiary corporation of such corporation) issuing or assuming
an option in a transaction to which Section 424(a) of the Code applies.

     (b)  All Restricted Stock held by the Participant at the time of the Status
Change must be transferred to the Company (and, in the event the certificates
representing such Restricted Stock are held by the Company, such Restricted
Stock will be so transferred without any further action by the Participant) in
accordance with Section 6.3(c) above.

     (c)  Any payment or benefit under a Deferred Stock Award, Performance Award
or Other Stock-Based Award to which the Participant was not irrevocably entitled
prior to the Status Change will be forfeited and the Award canceled as of the
date of such Status Change.

     7.3. CERTAIN CORPORATE TRANSACTIONS.

     Except as otherwise provided by the Committee, in the event of a
consolidation or merger in which the Company is not the surviving corporation or
which results (or that is part of a series of related transactions that results)
in the acquisition of substantially all the Company's outstanding Stock by a
single person or entity or by a group of persons or entities acting in concert,
or in the event of the sale or transfer of substantially all the Company's
assets or a dissolution or liquidation of the Company (a "covered transaction"),
the following rules shall apply:

     (a)  Subject to paragraph (b) below, all outstanding Awards requiring
exercise will cease
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to be exercisable, and all other Awards to the extent not fully vested
(including Awards subject to conditions not yet satisfied or determined) will be
forfeited, as of the effective time of the covered transaction; provided, that
the Committee may in its sole discretion, on or prior to the effective date of
the covered transaction, (1) make any outstanding Option and Stock Appreciation
Right exercisable in full, (2) remove the restrictions from any Restricted
Stock, (3) cause the Company to make any payment and provide any benefit under
any Deferred Stock Award or Performance Award or (4) remove any performance or
other conditions or restrictions on any Award; or

     (b)  With respect to an outstanding Award held by a Participant who,
following the covered transaction, will be employed by or otherwise providing
services to an entity which is a surviving or acquiring entity in the covered
transaction or an affiliate of such an entity, the Committee may at or prior to
the effective time of the covered transaction and in lieu of the action
described in paragraph (a) above, arrange to have such surviving or acquiring
entity or affiliate assume any Award held by such Participant outstanding
hereunder or grant a replacement award which, in the judgment of the Committee,
is substantially equivalent to any Award being replaced.

The Committee may also grant Awards under the Plan in substitution for awards
held by directors, employees, consultants or advisors of another company who
concurrently become directors, employees, consultants or advisors of the Company
or a subsidiary of the Company as the result of a merger or consolidation of
that other company with the Company or a subsidiary of the Company, or as the
result of the acquisition by the Company or a subsidiary of the Company of
property or stock of that other company.  Awards granted under the preceding
sentence may be granted on such terms and conditions as the Committee considers
appropriate in the circumstances.

8.   GENERAL PROVISIONS

     8.1. DOCUMENTATION OF AWARDS.

     Awards will be evidenced by such written instruments, if any, as may be
prescribed by the Committee from time to time.  Such instruments may be in the
form of agreements to be executed by both the Participant and the Company, or
certificates, letters or similar instruments, which need not be executed by the
Participant but acceptance of which will evidence agreement to the terms
thereof.
<PAGE>

     8.2. RIGHTS AS A STOCKHOLDER; DIVIDEND EQUIVALENTS.

     Except as specifically provided by the Plan, the receipt of an Award will
not give a Participant rights as a stockholder; the Participant will obtain such
rights, subject to any limitations imposed by the Plan or the instrument
evidencing the Award, only upon the issuance of Stock.  However, the Committee
may, on such conditions as it deems appropriate, provide that a Participant will
receive a benefit in lieu of cash dividends that would have been payable on any
or all Stock subject to the Participant's Award had such Stock been outstanding.
Without limitation, the Committee may provide for payment to the Participant of
amounts representing such dividends, either currently or in the future, or for
the investment of such amounts on behalf of the Participant.

     8.3. CONDITIONS ON DELIVERY OF STOCK.

     The Company will not be obligated to deliver any shares of Stock pursuant
to the Plan or to remove restrictions from shares previously delivered under the
Plan (a) until all conditions of the Award have been satisfied or removed, (b)
until, in the opinion of the Company's counsel, all applicable federal and state
laws and regulation have been complied with, (c) if the outstanding Stock is at
the time listed on any stock exchange or The Nasdaq National Market, until the
shares to be delivered have been listed or authorized to be listed on such
exchange or market upon official notice of issuance, and (d) until all other
legal matters in connection with the issuance and delivery of such shares have
been approved by the Company's counsel.  If the sale of Stock has not been
registered under the Securities Act of 1933, as amended, the Company may
require, as a condition to exercise of the Award, such representations or
agreements as counsel for the Company may consider appropriate to avoid
violation of such Act and may require that the certificates evidencing such
Stock bear an appropriate legend restricting transfer.

     If an Award is exercised by the Participant's legal representative, the
Company will be under no obligation to deliver Stock pursuant to such exercise
until the Company is satisfied as to the authority of such representative.

     8.4. TAX WITHHOLDING.

     The Company will withhold from any cash payment made pursuant to an Award
an amount sufficient to satisfy all federal, state and local withholding tax
requirements (the "withholding requirements").

     In the case of an Award pursuant to which Stock may be delivered, the
Committee will have the right to require that the Participant or other
appropriate person remit to the Company an amount sufficient to satisfy the
withholding requirements, or make other arrangements satisfactory to the
Committee with regard to such requirements, prior to the delivery of any Stock
or removal of restrictions thereon.  If and to the extent that such withholding
is required, the Committee may permit the Participant or such other person to
elect at such time and in such manner as the Committee provides to have the
Company hold back from the shares to be
<PAGE>

delivered, or to deliver to the Company, Stock having a value calculated to
satisfy the withholding requirement, but not in excess of the minimum required
to satisfy such withholding requirements. The Committee may make such share
withholding mandatory with respect to any Award at the time such Award is made
to a Participant.

     If at the time an ISO is exercised the Committee determines that the
Company could be liable for withholding requirements with respect to the
exercise or with respect to a disposition of the Stock received upon exercise,
the Committee may require as a condition of exercise that the person exercising
the ISO agree (a) to provide for withholding under the preceding paragraph of
this Section 8.4, if the Committee determines that a withholding responsibility
may arise in connection with the exercise, (b) to inform the Company promptly of
any disposition (within the meaning of Section 424(c) of the Code) of Stock
received upon exercise and (c) to give such security as the Committee deems
adequate to meet the potential liability of the Company for other withholding
requirements and to augment such security from time to time in any amount
reasonably deemed necessary by the Committee to preserve the adequacy of such
security.

     8.5. TRANSFERABILITY OF AWARDS.

     Unless otherwise permitted by the Committee, no Award (other than an Award
in the form of an outright transfer of cash or Unrestricted Stock) may be
transferred other than by will or by the laws of descent and distribution.

     8.6. ADJUSTMENTS IN THE EVENT OF CERTAIN TRANSACTIONS.

     (a)  In the event of a stock dividend, stock split or combination of
shares, recapitalization or other change in the Company's capitalization, or
other distribution to holders of Stock other than normal cash dividends, after
the effective date of the Plan, the Committee will make any appropriate
adjustments to the maximum number of shares that may be delivered under the Plan
under Section 4(a) and to the limits described in Sections 4(c) and 6.5.

     (b)  In any event referred to in paragraph (a) above, the Committee will
also make any appropriate adjustments to the number and kind of shares of Stock
or securities subject to Awards then outstanding or subsequently granted, any
exercise prices relating to Awards and any other provision of Awards affected by
such change.  The Committee may also make such adjustments to take into account
material changes in law or in accounting practices or principles, mergers,
consolidations, acquisitions, dispositions or similar corporate transactions, or
any other event, if it is determined by the Committee that adjustments are
appropriate to avoid distortion in the operation of the Plan.

     (c)  In the case of ISOs or Awards intended to qualify for the
"performance-based compensation" exception under Section 162(m)(4)(C) of the
Code, the adjustments described in paragraphs (a) and (b) above will be made
only to the extent consistent with continued qualification of the Option or
other Award under Sections 422 or 162(m) of the Code, as the case may be.
<PAGE>

     (d) For the avoidance of doubt, no adjustment shall be required under this
Section 8.6 to reflect the acquisition of additional shares of Stock by
Cabletron consistent with, or undertaken to effectuate, the capitalization of
the Company assumed in determining the amount, value or exercise price of Awards
made prior to an initial public offering of the Stock.

     8.7. EMPLOYMENT RIGHTS, ETC.

     Neither the adoption of the Plan nor the grant of Awards will confer upon
any person any right to continued retention by the Company or any of its
subsidiaries as an Employee or otherwise, or affect in any way the right of the
Company or any of its subsidiaries to terminate an employment, service or
similar relationship at any time.  Except as specifically provided by the
Committee in any particular case, the loss of existing or potential profit in
Awards granted under the Plan will not constitute an element of damages in the
event of termination of an employment, service or similar relationship even if
the termination is in violation of an obligation of the Company or any of its
subsidiaries to the Participant.

     8.8. DEFERRAL OF PAYMENTS.

     The Committee may agree at any time, upon request of the Participant, to
defer the date on which any payment under an Award will be made.

     8.9. PAST SERVICES AS CONSIDERATION.

     Where a Participant purchases Stock under an Award for a price equal to the
par value of the Stock, the Committee may determine that such price has been
satisfied by past services rendered by the Participant.

9.   SPECIAL PROVISIONS RELATING TO THE REORGANIZATION OF CABLETRON SYSTEMS,
     INC. AND CERTAIN OF ITS SUBSIDIARIES

     The provisions of this Section 9 shall apply notwithstanding any other
provision in the Plan to the contrary.

     (a)  It is anticipated that following the effective date of the Plan and a
subsequent initial public offering of shares of Stock, stock of the Company held
by Cabletron, the Company's parent corporation, may be distributed (a "spin-
off") to the shareholders of Cabletron.  Similar transactions may be
accomplished with respect to other subsidiaries of Cabletron.  Without limiting
the generality of its authority under the Plan, the Committee may provide that
(i) Options and Stock Appreciation Rights will not be exercisable prior to the
effectiveness of a spin-off of the Company; and (ii) upon a spin-off of the
Company, Options (the "make-up Options") will be granted under the Plan to
certain persons then holding compensatory options to acquire stock of Cabletron
in recognition of the effect of such spin-off on the value of such Cabletron
options, such make-up Options to have such terms as the Committee shall have
determined in conformity with the program for option adjustments approved by
Cabletron in connection with the spin-offs of its subsidiaries.
<PAGE>

     (b)  If a Sale (as hereinafter defined) of the Company occurs, the
following provisions shall apply (I) to every Option granted to an employee of
the Company or its subsidiaries or to an employee of Cabletron or a subsidiary
of Cabletron, notwithstanding any provision of such Award to the contrary, and
(II) to every other Award to the extent provided in such other Award:

               (i)    Each Award granted prior to the Sale (an "affected Award")
          shall be vested (and, in the case of an Award requiring exercise,
          exercisable) (vesting and exercisability being referred to for
          purposes of this subsection (b), without distinction, as "vesting"),
          immediately prior to the Sale, for the "applicable number of shares"
          as hereinafter defined. In the case of an affected Award requiring
          exercise, the Company shall give the holder of the Award adequate
          notice and opportunity to exercise any portion of the affected Award
          that becomes exercisable by reason of this subsection. For purposes of
          this paragraph (i), the term "applicable number of shares" means, in
          the case of any Award, that number of shares for which the Award, but
          for the operation of any limitation deferring scheduled vesting until
          the date of a spin-off, would have been vested by the end of the ten
          (10)-month period following the Sale had the Participant holding the
          Award immediately prior to the Sale continued in service during such
          ten (10)-month period.

               (ii)   Upon consummation of the Sale, if the Sale also
          constitutes a covered transaction as defined in Section 7.3 each
          affected Award requiring exercise will cease to be exercisable, and
          all other affected Awards to the extent not fully vested will be
          forfeited, except as otherwise provided pursuant to Section 7.3. If
          the acquiror entity or an affiliate thereof assumes an affected Award,
          the assumed Award shall be vested from and after the Sale to the
          extent provided under paragraph (i) above and as to any portion that
          is not vested by operation of paragraph (i) above shall become vested
          from and after the Sale in accordance with the vesting schedule
          (determined without regard to any limitation deferring scheduled
          vesting until the date of a spin-off) that would have applied during
          the period beginning on the first day following ten (10) months after
          the date of the Sale, accelerated by ten (10) months. For the
          avoidance of doubt, in no event shall the assumed Award become vested
          for more than the total number of Shares subject thereto. If the
          acquiror entity or an affiliate thereof provides a substitute Award in
          lieu of assuming an affected Award, such substitute Award shall vest
          in the same manner as it would have vested had it been an assumed
          Award.

               (iii)  For purposes of this subsection (b), a "Sale" of the
          Company shall be deemed to have occurred if:
<PAGE>

                    (A)  Prior to a spin-off of the Company, Cabletron sells or
               otherwise disposes of (including without limitation by merger)
               all or substantially all of the stock of the Company that
               Cabletron owns, or the Company sells or otherwise disposes of all
               or substantially all of its assets, to an unrelated person or to
               one or more unrelated persons acting as a group. For the
               avoidance of doubt, none of the following shall constitute a Sale
               under the preceding sentence: (1) a spin-off; (2) a liquidation
               or merger of the Company into Cabletron or into another
               subsidiary of Cabletron; (3) any other reorganization of the
               Company or other transaction that results in Cabletron's
               continuing to own, directly or indirectly, a majority of the
               combined voting power of all outstanding shares of stock or other
               equity interests of the Company or of the entity resulting from
               such reorganization or other transaction; or (4) a disposition by
               Cabletron of stock of the Company, or by the Company of its
               stock, in a public offering; or

                    (B)  Following a spin-off of the Company:

                         (1)  any Person (defined for the purpose of this
                    Section 9(b)(iii)(B) as any individual, entity or other
                    person, including a group within the meaning of Section
                    13(d) or 14(d)(2) of the 1934 Act) acquires beneficial
                    ownership (within the meaning of Rule 13d-3 promulgated
                    under the 1934 Act) of 30% or more of either (I) the then
                    outstanding shares of common stock of the Company (the
                    "Outstanding Company Common Stock") or (II) the combined
                    voting power of the then outstanding voting securities of
                    the Company entitled to vote generally in the election of
                    directors (the "Outstanding Company Voting Securities");
                       provided, that for purposes of this subsection (B)(1) the
                    following acquisitions shall not constitute a Sale:  (aa)
                    any acquisition directly from the Company, (bb) any
                    acquisition by the Company, (cc) any acquisition by an
                    employee benefit plan (or related trust) sponsored or
                    maintained by the Company or its direct or indirect
                    subsidiaries, or (dd) any Business Combination as defined at
                    paragraph (3) below (but except as provided in said
                    paragraph (3) a Business Combination may nevertheless
                    constitute a Sale under said paragraph (3)); and provided
                    further, that an acquisition by a Person of 30% or more but
                    less than 50% of the Outstanding Company Common Stock or of
                    the combined voting power of the Outstanding Company Voting
                    Securities shall not constitute a Sale under this subsection
                    (B)(1) if within 15 days of the Board's being
<PAGE>

                    advised that such ownership level has been reached, a
                    majority of the "Incumbent Directors" (as hereinafter
                    defined) then in office adopt a resolution approving the
                    acquisition of that level of securities ownership by such
                    Person; or

                         (2)  Individuals who, as of the first date following
                    the spin-off  (the "Spin Date"), constituted the Board (the
                    "Incumbent Directors") cease for any reason to constitute at
                    least a majority of the Board; provided, that any individual
                    who becomes a member of the Board subsequent to the Spin
                    Date and whose election or nomination for election was
                    approved by a vote of at least two-thirds of the Incumbent
                    Directors shall be treated as an Incumbent Director unless
                    he or she assumed office as a result of an actual or
                    threatened election contest with respect to the election or
                    removal of directors; or

                         (3)  There is consummated a reorganization, merger or
                    consolidation involving the Company, or a sale or other
                    disposition of all or substantially all of the assets of the
                    Company (a "Business Combination"), in each case unless,
                    following such Business Combination, (I) the Persons who
                    were the beneficial owners, respectively, of the Outstanding
                    Company Common Stock and of the combined voting power of the
                    Outstanding Company Voting Securities immediately prior to
                    the Business Combination beneficially own, directly or
                    indirectly, more than 50% of, respectively, the then
                    outstanding shares of common stock and the combined voting
                    power of the then outstanding voting securities entitled to
                    vote generally in the election of directors, as the case may
                    be, of the entity resulting from such Business Combination
                    in substantially the same proportions as their ownership
                    immediately prior to such Business Combination of the
                    Outstanding Company Common Stock and of the combined voting
                    power of the Outstanding Company Voting Securities, as the
                    case may be, (II) no Person (excluding any entity resulting
                    from such Business Combination or any employee benefit plan
                    (or related trust) of the Employer or of such corporation
                    resulting from such Business Combination) beneficially owns,
                    directly or indirectly, 30% or more of, respectively, the
                    then outstanding shares of common stock of the corporation
                    resulting from such Business Combination or the combined
                    voting power of the then outstanding voting
<PAGE>

                    securities of such corporation entitled to vote generally in
                    the election of directors, except to the extent that such
                    ownership existed prior to the Business Combination and
                    (III) at least a majority of the members of the Board
                    resulting from such Business Combination were Incumbent
                    Directors at the time of the execution of the initial
                    agreement, or of the action of the Board, providing for such
                    Business Combination; or

                         (4)  The shareholders of the Company approve a complete
                    liquidation or dissolution of the Company."

     (c)  In the event that Cabletron, by action of its board of directors,
determines not to pursue its current intention to cause the Company to undergo
an initial public offering or determines not to pursue its current intention to
cause the Company to undergo a spin-off from Cabletron, it may provide (any such
action to be binding under the Plan) that Options then outstanding under the
Plan ("affected Options") shall be converted into Cabletron options.  In the
event of any such conversion, the converted Cabletron options shall have such
provisions as are determined by Cabletron in its sole and absolute discretion to
be necessary to preserve insofar as is practicable the incentive stock option
status of any affected Options that are incentive stock options and to provide
that (1) the aggregate amount of intrinsic value (that is, the difference
between the exercise price and the value of the underlying stock) in the
Cabletron options immediately following conversion does not exceed the intrinsic
value in the affected Options immediately before the conversion and that (2) the
ratio of the exercise price to the value of the underlying stock is not reduced.
The new Cabletron options shall have the same vesting and exercisability
provisions as the affected Options to which they relate (determined without
regard to any limitation on vesting or exercisability that is dependent upon an
initial public offering or spin-off of the Company), subject to special rules in
the event of a sale or merger of Cabletron.   In the event that the Company is
not a public company at the time of the conversion described above, the
determination of the value of the Company stock shall be made by Cabletron in
its sole and absolute discretion.  In the event that Cabletron, by action of its
board of directors, determines not to pursue its current intention to cause the
Company to undergo an initial public offering or determines not to pursue its
current intention to cause the Company to undergo a spin-off from Cabletron, and
if any Awards other than Options are then outstanding ("affected non-Option
Awards"), Cabletron shall provide with respect to such affected non-Option
Awards such substitute or replacement awards, including cash awards, if any, as
Cabletron in its sole and absolute discretion may determine to be equitable
under the circumstances.  In the event that Cabletron, by action of its board of
directors, determines not to pursue its current intention to cause the Company
to undergo a spin-off from Cabletron, and in connection therewith determines
that the provisions of this sentence shall apply, any vesting provisions of
Options then outstanding under the Plan shall, from and after such date as shall
be specified by the board of directors of Cabletron, be determined without
regard to any limitation deferring scheduled vesting until the date of a spin-
off.
<PAGE>

10.  EFFECT, AMENDMENT AND TERMINATION

     Neither adoption of the Plan nor the grant of Awards to a Participant will
affect the Company's right to grant to such Participant awards that are not
subject to the Plan, to issue to such Participant Stock as a bonus or otherwise,
or to adopt other plans or arrangements under which Stock may be issued to
Employees.

     The Committee may at any time or times amend the Plan or any outstanding
Award for any purpose which may at the time be permitted by law, or may at any
time terminate the Plan as to any further grants of Awards, provided that
(except to the extent expressly required or permitted by the Plan) no such
amendment will, without the approval of the stockholders of the Company,
effectuate a change for which stockholder approval is required in order for the
Plan to continue to qualify for the award of ISOs under Section 422 of the Code
or for the award of performance-based compensation under Section 162(m) of the
Code.<PAGE>

                                                                   EXHIBIT 10.22

                          PAETEC COMMUNICATIONS, INC.
                              AGENT INCENTIVE PLAN

Introduction

          Employee participation in ownership through stock options is a key
element of PaeTec's business plan.  Our authorized independent sales agents
("agents") are also an important part of PaeTec's marketing strategy, and we
want to offer means by which agents who help us succeed can share in the success
along with our employees and shareholders.  Accordingly, we created this Agent
Incentive Plan (the "Plan").  This document is an amendment and restatement of
the Plan and is effective as of July 15, 2000.

          Under the Plan, agents will be granted Warrants entitling them to
purchase shares of the Class A Common Stock of our parent company, PaeTec Corp.
("Warrant Shares")./1/  The Exercise Price will be set at the time the Warrants
are granted by the Company based on the then current fair market value of
PaeTec's stock.  Agents who receive Warrants will then have the benefit of
subsequent increases in the price of the shares as if they were investors
holding stock.  In this way, agents who consistently generate significant
monthly revenues are rewarded with the option to, in effect, "buy-in" to the
Company and to share in future increases in value of the Company.

          PaeTec is currently a private company and there is no public trading
market for its stock.  Recognizing that agents will not, therefore, realize cash
"value" from the Plan until PaeTec becomes a public company, the Warrants will
not be exercisable before the first anniversary of the date PaeTec successfully
completes an initial public offering (an "IPO") of its common stock.  Further,
the Warrants will only be exercisable in compliance with federal and state
securities laws.

          The ability to exercise the Warrants (also referred to as "vesting")
will also be dependent on maintenance of sales volumes. The right to purchase
the Warrant Shares will vest over a period four years, depending on retention of
the sales revenues generated by the agent.

          The Company has set aside a total of 500,000 shares to cover Warrants
under the Plan. Once the Warrants have been granted with respect to all 500,000
shares, the Plan will automatically end unless the Company decides, in its sole
discretion, to continue the Plan by increasing the number of shares available
under the Plan.

-------
/1/  For purposes of the Plan, PaeTec Communications, Inc. and PaeTec Corp. are
referred to collectively as "PaeTec" or the "Company."  A warrant is similar to
an option; it is a legal right to purchase stock at a specified price which is
referred to as the "Exercise Price."
<PAGE>

Qualification and Exercise Price

          Each agent may be granted 2,500, 5,000 or 10,000 Warrant Shares within
60 days of becoming an agent.  Agents on July 15, 2000, that had not previously
been granted any Warrant Shares pursuant to the Plan, may be granted Warrant
Shares as of July 15, 2000.  The number of Warrant Shares to be granted to an
agent shall be determined by the Company in its sole discretion.

          The price for purchasing the Warrant Shares (in other words, the
Exercise Price) will be the fair market value per share of PaeTec's Class A
Common Stock as of the date the Warrants are granted.  Since PaeTec is currently
not a public company and there is no trading market for its shares, fair market
value per share will be set by the Board of Directors of the Company and its
determination will be final.  Generally, the Board will base its determination
on the most recent selling price for shares in a private offering by PaeTec, but
the Board reserves the right to consider other factors affecting value as well.
For Warrants issued after PaeTec goes public, fair market value per share will
generally equal the closing price per share of PaeTec's Class A Common Stock on
the last trading date of the month the agent qualifies for the Warrants.

          A form of the Warrant Certificate is attached as Exhibit A.

Payment for the Warrant Shares

          Agents will pay nothing at the time the Warrants are issued to them.
No payment is required until the agent decides to exercise its rights under the
Warrant.  At that point, the agent will have to pay the Exercise Price in cash
for the Warrant Shares it elects to buy.  Alternatively, a "cashless exercise"
will be permitted.

          The "cashless exercise" alternative in essence enables the agent to
use the appreciation, if any, in the value of PaeTec stock over the Exercise
Price, rather than its own funds, to pay for the Warrant Shares.  For example,
assume the agent is eligible (i.e., PaeTec has gone public and the agent's
Warrants have "vested") to purchase 1,000 Warrant Shares at an Exercise Price of
$12.00 per share.  Further assume that the market price of the shares at the
time of exercise has increased to $24.00 per share, reflecting appreciation of
$12.00 per share.  The agent could either purchase 1,000 shares by paying
$12,000 in cash, or it could acquire 500 shares through a "cashless exercise" by
authorizing the Company to cancel 500 Warrants in addition to the 500 Warrants
being exercised.  In effect, the appreciation in the 500 Warrants to be
cancelled is used to purchase 500 Warrant Shares.  By using the cashless
exercise alternative, the agent foregoes the opportunity to purchase a larger
number of shares for the privilege of not having to invest its own funds./2/

--------
/2/  See the attached Warrant Certificate for the mechanism for a cashless
exercise.

                                       2
<PAGE>

Securities Law Matters

          In order that agents holding Warrants will have sufficient information
about the Company to make an informed decision about investing in Warrant
Shares, and will be able to sell in a public market any Warrant Shares they
elect to purchase through the exercise of the Warrants, the Warrants will not be
exercisable before the first anniversary of the date PaeTec has successfully
completed an IPO (i.e., has become a public company) and not before PaeTec has
"registered" the Warrant Shares on a Registration Statement filed with the
Securities and Exchange Commission.  While PaeTec anticipates that it will go
public in the future, there can be no assurance that it will do so within any
specified period of time or at all.  If PaeTec fails to go public, the Warrants
would never become exercisable.

Vesting

          An agent's ability to exercise the Warrant and purchase Warrant Shares
depends on the agent's achievement and maintenance of sales revenues.   An agent
generally must achieve sales revenues for the Company at least equal to the
"Revenue Target" during the ninth calendar month that follows the calendar month
during which the Warrant was granted ("Ninth Calendar Month").  An agent's
Revenue Target is based upon the maximum number of Warrant Shares that the agent
may purchase pursuant to the Warrant granted to the agent and are determined as
follows:

               Number of
             Warrant Shares              Revenue Target
             --------------              --------------

                2,500                      $ 25,000
                5,000                      $ 50,000
               10,000                      $100,000

          The Revenue Target for successive grants to an agent that is granted
more than one Warrant pursuant to the Plan shall be based upon the cumulative
number of Warrant Shares that may be purchased by the agent. For example, an
agent that is granted an initial Warrant with respect to 5,000 Warrant Shares
shall have a Revenue Target for that Warrant equal to $50,000. If that same
agent is subsequently granted another Warrant with respect to an additional
5,000 Warrant Shares, the Revenue Target for the second Warrant shall be
$100,000.

          As an exception to the requirement that the agent achieve the Revenue
Target in the Ninth Calendar Month, the Company, in its sole discretion, may
postpone the month in which the agent must achieve the Revenue Target until the
second full calendar month that follows the calendar month during which the
final "Pending Order" is installed.  For purposes of the Plan, a "Pending Order"
is a confirmed order for Company products and/or services that has been received
by the agent and accepted by the Company, but not yet installed, by the last day
of the Ninth Calendar Month.

          If an agent achieves the Revenue Target in actual sales revenue for
the Company, then the agent shall "vest" in, and may purchase up to, 20% of the
applicable Warrant Shares,

                                       3
<PAGE>

assuming that the IPO and registration requirements described in the "Securities
Law Matters" section above have been satisfied. The "Initial Vesting Date" for
the first 20% of the applicable Warrant Shares shall be (a) the last day of the
Ninth Calendar Month, if the agent achieves the Revenue Target in actual sales
revenue for that month, or (b) the last day of the second calendar month that
follows the calendar month during which the final Pending Order is installed, if
the Company, in its sole discretion, postpones the month in which the agent must
achieve the Revenue Target and if the agent actually achieves the Revenue Target
with the sum of the agent's revenues during the Ninth Calendar Month and the
agent's revenues from Pending Orders during the second calendar month that
follows the calendar month during which the final Pending Order is installed. An
agent's ability to purchase the rest of the shares under the Warrant (in other
words, the remaining 80%) will depend on the maintenance of sales revenues over
the next four years.

          If the agent vests in the right to purchase the first 20% of the
Warrant Shares, the Company will review the agent's revenue level, as of the
last day of the month in which the Initial Vesting Date occurs, in each of the
succeeding four years.  The last day of the applicable month is referred to as
the "Anniversary Date."  For example, if the Initial Vesting Date occurs in May
2001, the relevant Anniversary Dates for purposes of vesting in the remaining
80% of the Warrant Shares are May 31, 2002, May 31, 2003, May 31, 2004 and May
31, 2005.  If the agent's average monthly sales during May of the applicable
year and the previous eleven months remained at or above an amount equal to the
Revenue Target, an additional 20% of the shares covered by the Warrant will
"vest" and become exercisable as of May 31st of that year.  Thus, for example,
an agent that is granted Warrants for 2,500 shares in August 2000, and that has
$25,000 in actual sales revenue for the Company during the month of May 2001
(the Ninth Calendar Month in this example), could purchase 500 shares (20% of
2,500 shares) at any time on or after May 31, 2001./3/  The agent could purchase
500 additional shares after the end of each May thereafter until all 2,500
shares are vested, provided that the agent maintains the required average
monthly revenue level of $25,000.

          After vesting in the right to purchase the initial 20% of the Warrant
Shares, the "penalty" for falling below the average monthly revenue target is
simply the loss of the vested Warrant Shares for that year (i.e., loss of 20%
vesting for that year).  Agents, however, are eligible to make up for any
shortfall in the monthly revenue target in subsequent years through and
including the fifth Anniversary Date.

          An agent that fails to maintain average monthly sales revenues will
forfeit the right to buy shares that would otherwise vest under its Warrant.
Using the prior example, assume that the agent hits the applicable revenue
target for May 2001, and vests in the right to purchase 500 shares, but the
agent's average monthly revenue during the succeeding twelve months falls below
the $25,000 average monthly revenue threshold to $15,000.  In that case, the
agent would forfeit the right to purchase the 500 shares that would otherwise
have vested as of May 31, 2002.

--------
/3/  Subject to the IPO and registration restrictions previously described.

                                       4

<PAGE>

          If an agent fails to meet its average monthly revenue target and
therefore a 20% installment fails to vest, the Plan offers the agent an
opportunity to "earn back" the forfeited Warrant Shares in subsequent years up
to and including the fifth Anniversary  Date by bringing monthly sales levels
back above the threshold target by a sufficient amount to exceed the prior
year's shortfall.  Thus, returning to the example in the preceding paragraph, if
it is subsequently determined that the agent's average monthly sales during the
twelve months ending May 31, 2003 exceed the $35,000 threshold (in other words,
$25,000 for the twelve months ending May 31, 2003 and $10,000 to make up for the
May 2002 year-end shortfall), the 500 shares previously forfeited at the end of
year one (May 2002) would be restored, and an additional 500 shares would vest
for the current year as well.  See the example below.
                               ---

          If an agent fails to achieve the applicable Revenue Target, the
Warrant shall become null and void and the agent shall forfeit the agent's right
to purchase the applicable Warrant Shares. Warrant Shares forfeited pursuant to
this paragraph may be reissued by the Company to the same agent, or to other
agents, as determined by the Company in its sole discretion.

                                       5
<PAGE>

Example:

Warrant Shares:   10,000
Revenue Target: $100,000

     9th Month After Grant (revenues for the month = $100,000):
     ----------------------------------------------------------

          Warrants for 2,000 shares (20%) vest immediately

     First Anniversary Date (average monthly revenues during preceding 12 months
     ---------------------------------------------------------------------------
     = $90,000):
     -----------

          Since the average monthly revenues were less than $100,000, 20% of the
          Warrants (2,000 shares) are forfeited.

     Second Anniversary Date (average monthly revenues during preceding 12
     ---------------------------------------------------------------------
     months = $85,000):
     ------------------

          Again, the revenues are less than $100,000 and, as a result, the 20%
          of the Warrants which would otherwise have vested are forfeited (Agent
          remains vested for 2,000 shares from initial achievement of the
          Revenue Target).

     Third Anniversary Date (average monthly revenues during preceding 12 months
     ---------------------------------------------------------------------------
     = $130,000):
     ------------

          Since the average monthly revenues during the preceding 12 months
          exceeded the $100,000 target level by $30,000 (which would make up for
          the Year 2 shortfall of $10,000 and the Year 3 shortfall of $15,000),
          the agent will earn back the shares forfeited in Year 2 and Year 3.
          Accordingly, 20% of 10,000 Warrants will vest for the current Year 4,
          an additional 20% will vest for Year 3, and additional 20% vest for
          Year 2 for a total of 8,000 Warrants vested, including the Warrants
          vested in Year 1.  However, there will be no credit given with respect
          to the $5,000 in extra revenues (difference between the excess $30,000
          and the $25,000 total shortfall amount) for any future periods.

     Fourth Anniversary Date (average monthly revenues = $80,000):
     -------------------------------------------------------------

          Since the average monthly revenues for twelve months ended on the
          Fourth Anniversary Date once again fell below the $100,000 threshold,
          the last 20% will not vest.  However, the agent will have one last
          chance to earn back these forfeited shares if it has or exceeds
          $120,000 in average monthly revenues during the year that ends on the
          Fifth Anniversary  Date.

          Regardless of whether any Warrant has "vested" as herein described,
unless and until the IPO and registration requirements described in the
"Securities Law Matters" section above have been satisfied, the agent holding
the Warrants may not purchase Warrant

                                       6
<PAGE>

Shares under any circumstances. Further, an agent can "earn back" Warrants that
did not vest because average monthly sales fell below target only until
the fifth Anniversary Date.  Warrants that do not vest by the fifth
Anniversary Date shall be forfeited and the applicable Warrant Shares may be
reissued in subsequent grants pursuant to the Plan, as determined by the
Company in its sole discretion.

Expiration Date

     All unexercised Warrants will expire on the tenth Anniversary Date
occurring after issuance of the Warrant Certificate.

Sub-Agents

     PaeTec Communications recognizes that many agents work with sub-agents and
that they may wish to assign some of their Warrants to sub-agents who help them
achieve and maintain their PaeTec revenue goals.  Accordingly, while Warrants
generally are not transferable, limited transfers to sub-agents will be
permitted on the following conditions:  (i) the proposed transferee must be a
genuine sub-agent and proof of its sales of PaeTec products and services will be
required, (ii) only vested Warrants may be assigned, (iii) the minimum
assignment must be for at least 50 Warrant Shares and must be in increments of
50 Warrant Shares, and (iv) the sub-agent transferee will be subject to the same
restrictions as the agent, e.g., Warrants are not exercisable until the IPO and
registration requirements described in the "Securities Law Matters" section
above have been satisfied. Warrant Shares may only be transferred in compliance
with the securities laws.

Transferability - Warrants and Warrant Shares

     Except for transfers to sub-agents as previously discussed, Warrants may
not be assigned, transferred, pledged or otherwise disposed of and any attempted
transfer will be void.  It is PaeTec's intention to "register" the Warrant
Shares issuable upon exercise of the Warrants once it becomes a public company
so that the Warrant Shares will generally be freely tradable in the public
market.  However, it is possible that, for some reason that we cannot presently
foresee, this registration would be precluded or delayed.  In that event, the
Warrant Shares could not be sold unless an exemption from the application of the
securities laws is available.  Agents are urged to contact the Company prior to
purchasing Warrant Shares pursuant to the exercise of a Warrant to confirm that
the shares will in fact be freely tradable.

                                       7
<PAGE>

Plan Summary

 .  500,000 shares of Class A Common Stock of PaeTec Corp. have been set aside
   for the Plan.
 .  Warrants are not exercisable in any event until after the IPO and
   registration requirements described in the "Securities Law Matters" section
   above have been satisfied.
 .  Warrants are issued with respect to an amount of shares determined by the
   Company and the Exercise Price is set when the Warrant is granted.
 .  Warrants generally vest over a 4 year period (20% immediately upon
   achieving the applicable revenue target after grant and then 20% as of the
   subsequent Anniversary Dates for four years).
 .  For continued vesting, an agent must maintain the applicable revenue level
   on average during each succeeding 12 months.
 .  Penalty for missing the applicable average monthly revenue target is loss
   of vesting for that year (20%).
 .  To make up for any lost vesting, the agent must exceed his target revenue
   level plus the shortfall amount on average during any succeeding twelve month
   period, measured as of any succeeding Anniversary Date, up to and including
   the fifth Anniversary Date after issuance of the Warrant Certificate.
 .  Unexercised Warrants will expire after ten years.

                                       8
<PAGE>

NEITHER THE WARRANTS REPRESENTED BY THIS WARRANT CERTIFICATE NOR ANY SHARES
ACQUIRED UPON THE EXERCISE OF THE WARRANTS HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, NOR MAY
WARRANTS OR SHARES BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE
STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION FROM THESE REGISTRATION
REQUIREMENTS. THE WARRANTS AND SHARES MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH
THE CONDITIONS SPECIFIED IN THIS WARRANT CERTIFICATE.

                                    WARRANTS

             To Purchase ________ Shares of Class A Common Stock of

                                  PAETEC CORP.

                            Dated: ________________

     THIS WARRANT CERTIFICATE CERTIFIES THAT ___________________ (the "Holder")
is entitled, at any time after the Warrants represented by this Warrant
Certificate become exercisable as provided in Section 2.1, but prior to the
Expiration Date (as hereafter defined), to purchase from PaeTec Corp., a
Delaware corporation (the "Company"), _________ shares of the Company's Class A
Common Stock at a purchase price of $_______ per share (the "Exercise Price"),
all on the terms and conditions set forth in this Warrant Certificate.

1.   DEFINITIONS

     As used in this Warrant Certificate, the following terms have the meanings
set forth below:

     "Agent" shall mean the independent sales agent of the Company named on
Schedule A hereto.

     "Anniversary Date(s)" shall mean  the anniversaries of the date as of which
the Agent's right to purchase Warrant Stock shall have become vested in
accordance with Section 2.1(b)(1) of this Warrant Certificate.

     "Board of Directors" shall mean the Board of Directors of the Company.
<PAGE>

     "Business Day" shall mean any day that is not a Saturday or Sunday or a day
on which banks are required or permitted to be closed in the State of New York.

     "Class A Common Stock" shall mean the Class A Common Stock, $.01 par value
per share, of the Company, and any other securities of the Company into which
such Class A Common Stock is recapitalized or reclassified.

     "Commission" shall mean the Securities and Exchange Commission or any
successor federal agency then administering the Securities Act and successor
federal securities laws.

     "Exercise Price" shall mean the price indicated above at which a share of
Class A Common Stock may be purchased pursuant to this Warrant.  The Exercise
Price may from time to time be adjusted in accordance with Section 4 hereof.

     "Expiration Date" shall mean the tenth (10th) anniversary of the date of
this Warrant Certificate.

     "Fair Market Value" shall mean the fair value of a share of Class A Common
Stock as determined in good faith by the Board of Directors, whose determination
shall be conclusive; provided, however, that if the Class A Common Stock is then
                     --------  -------
listed or traded on a national securities exchange or automated quotation system
or is publicly held, then such term shall mean (a) if the Class A Common Stock
is listed or traded on any national securities exchange or listed for quotation
on the Nasdaq National Market or SmallCap Market, the last or closing sale
price, regular way, of the Class A Common Stock on the applicable date, as
reported in the principal consolidated transaction reporting system (in case of
a national securities exchange) or in the Wall Street Journal (in case of the
Nasdaq National Market or SmallCap Market); and (b) in all other cases, the
average of the high bid and low asked prices in the over-the-counter market,
such as the Nasdaq OTC Bulletin Board, as reported in The Wall Street Journal
or, if Class A Common Stock is not quoted by any such organization, the average
of the closing bid and asked prices as furnished by a professional market maker
making a market in the Class A Common Stock selected by the Board of Directors.

     "Holder" shall mean the Person in whose name this Warrant is registered on
the books of the Company maintained for such purpose.

     "Initial Public Offering" shall mean the closing of an initial public
offering underwritten by an investment banking firm on a firm commitment basis
pursuant to an effective registration statement under the Securities Act
covering the offer and sale by the Company of its common stock.

     "Ninth Calendar Month" shall mean the ninth calendar month that follows the
calendar month during which this Warrant Certificate was issued to the Agent.

     "Pending Order" shall mean a confirmed order for Company products and/or
services that has been received by the Agent and accepted by the Company, but
not yet installed, by the last day of the Ninth Calendar Month.

                                       2
<PAGE>

     "Person" shall mean any individual, firm, corporation, partnership, limited
liability company, joint venture, trust or unincorporated organization,
government (or agency or political subdivision thereof) or any other entity.

     "Revenues" shall mean actual gross revenues derived by the Company from
sales of its products and services to customers generated by the Agent.

     "Revenue Target" shall mean the amount of actual gross revenues, indicated
on Schedule A hereto, derived by the Company from sales of its products and
services to customers generated by the Agent.

     "Securities Act" shall mean the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

     "Shortfall Amount" shall have the meaning given to it in Section 2.1
hereof.

     "Vesting Installment" shall have the meaning given to it in Section 2.1
hereof.

     "Warrants" shall mean the rights represented by this Warrant Certificate to
purchase Warrant Stock.

     "Warrant Stock" shall mean the shares of Class A Common Stock that may be
purchased by the holders of the Warrants upon the exercise thereof.

2.   EXERCISE OF WARRANTS

     2.1.  Time of Exercise. The Warrants may be exercised if and only if the
           ----------------
condition set forth in subsection (a) of this Section 2.1 is satisfied, but then
only with respect to shares of Warrant Stock vested in accordance with
subsection (b) of this Section 2.1:

     (a) the Initial Public Offering shall have been consummated at least one
year prior to the date of exercise and a registration statement on an applicable
form under the Securities Act, covering the issuance by the Company of all the
shares of Warrant Stock, shall have been declared effective by the Commission.

     (b) the Warrants are exercisable only with respect to shares of Warrant
Stock which shall have vested in accordance with the following:

          (1)  twenty percent (20%) of the Warrant Stock shall vest (a) as of
               the last day of the Ninth Calendar Month, if the Agent achieves
               the Revenue Target during the Ninth Calendar Month, or (b) as of
               the last day of the second calendar month that follows the
               calendar month during which the final Pending Order is installed,
               if the Company, in its sole discretion, postpones the month in
               which the Agent must achieve the Revenue Target and if the Agent
               actually achieves the Revenue Target with the sum of the Agent's
               Revenues during the Ninth Calendar Month and the Agent's Revenues
               from Pending Orders during the second calendar month that

                                       3
<PAGE>

               follows the calendar month during which the final Pending
               Order is installed.

          (2)  the remaining eighty percent (80%) of the Warrant Stock shall
               vest in four (4) equal annual installments (each, a "Vesting
               Installment") of twenty percent (20%) as of the four immediately
               succeeding Anniversary Dates, if and only if the Agent's average
               monthly Revenues during the twelve month period ending on each
               Anniversary Date shall equal or exceed an amount equal to the
               Revenue Target; provided, however, that in the event that any
                               --------  -------
               Vesting Installment shall fail to vest as a result of the Agent's
               average monthly Revenues not equaling or exceeding the Revenue
               Target amount (the difference between the Revenue Target amount
               and the Agent's average monthly Revenues is hereinafter referred
               to as the "Shortfall Amount"), then such Vesting Installment may
               vest as of any subsequent Anniversary Date, on or prior to the
               fifth Anniversary Date, if the Agent's average monthly Revenues
               during the twelve month period ending on the Anniversary Date in
               such subsequent year equal or exceed the sum of the Revenue
               Target amount and the Shortfall Amount.  If the average monthly
               Revenues for any such twelve month period exceed the sum of the
               Revenue Target amount and the Shortfall Amount, however, no
               credit will be given for any future periods with respect to such
               excess Revenues.

     (c) If the Agent fails to achieve the Revenue Target, then this Warrant
Certificate shall become null and void and the Agent shall forfeit the Agent's
right to purchase the Warrant Stock.  Similarly, to the extent the Agent fails
to satisfy the vesting requirements of Section 2.1(b)(2) and, therefore, fails
to vest in the right to purchase some of the Warrant Stock on or prior to the
fifth Anniversary Date, then the Agent shall forfeit the Agent's right to
purchase Warrant Stock with respect to which the vesting requirements of Section
2.1(b)(2) have not been satisfied.

     2.2. Manner of Exercise.  At any time after the Warrants become exercisable
          ------------------
as provided in Section 2.1 hereof until 5:00 p.m., New York time, on the
Expiration Date, Holder may exercise the Warrants on any Business Day for all or
any part of the number of shares of  Warrant Stock purchasable hereunder,
provided that the Warrants may be exercisable in a maximum of two installments.

     In order to exercise the Warrants, in whole or in part, Holder shall
deliver to the Company at its principal office at 290 Woodcliff Drive, Fairport,
New York 14450 (i) a written notice of Holder's election to exercise the
Warrants, substantially in the form appearing at the end of this Warrant as
Exhibit A ("Exercise Notice"),  (ii) unless Holder indicates on the Exercise
Notice its intention to effect a cashless exercise (in which case no cash
payment of the Exercise Price shall be made by Holder), payment of the Exercise
Price for each share of Warrant Stock as to which the Warrant is exercised by a
certified or bank check, payable to the order of the Company, and (iii) this
Warrant Certificate.  Upon receipt of all of these items the Company shall
deliver or cause to be delivered to Holder a certificate or certificates
representing the aggregate number of full shares of Warrant Stock issuable upon
such exercise, together with cash in lieu of

                                       4
<PAGE>

any fraction of a share, as hereinafter provided; provided, however, that
                                                  --------  -------
in the event that Holder elects to effect a cashless exercise, the Holder shall
be entitled to receive upon exercise a number of shares of Warrant Stock,
computed as of the date on which the Company received the Exercise Notice
together with this Warrant Certificate, determined by the following formula:

          X = Y (A-B)
              -------
                 A

        Where X   =  the number of shares of Warrant Stock to be issued to
Holder;

              Y   =  the aggregate number of shares of Warrant Stock with
                     respect to which Holder elected to effect a cashless
                     exercise;

              A   =  the Fair Market Value per share of the Company's Class A
                     Common Stock (on the date of such calculation); and

              B   =  the Exercise Price.

              In lieu of payment of the Exercise Price, the Company shall
              cancel such number of shares of Warrant Stock equal to the
              difference (rounded up to the nearest whole number of shares)
              between Y and X.

     The stock certificate or certificates so delivered shall be registered in
the name of Holder. The Warrants shall be deemed to have been exercised and such
certificate or certificates shall be deemed to have been issued, and Holder
shall be deemed to have become a holder of record of such shares for all
purposes, as of the date the notice, together with the Exercise Price (if
applicable) and this Warrant Certificate, are received by the Company as
described above.  If the Warrants shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing
Warrant Stock, deliver to Holder a new Warrant Certificate evidencing the right
of Holder to purchase the remaining shares of Warrant Stock, which new Warrant
Certificate shall in all other respects be identical to this Warrant Certificate
or, in the sole discretion of the Company, appropriate notation may be made on
this Warrant Certificate and the same returned to Holder.

     2.3. Fractional Shares.  The Company shall not be required to issue a
          -----------------
fractional share of Class A Common Stock upon exercise of the Warrants.  In lieu
of any fraction of a share which Holder would otherwise be entitled to purchase
upon exercise, the Company shall pay cash in an amount equal to the same
fraction of the Fair Market Value per share of Class A Common Stock on the date
of exercise.

3.   RESERVATION AND AUTHORIZATION OF CLASS A COMMON STOCK

     From and after the date hereof, the Company shall at all times reserve and
keep available for issuance upon the exercise of the Warrants such number of its
authorized but unissued shares of Class A Common Stock (or its authorized and
issued shares of Class A Common Stock held in treasury) as will be sufficient to
permit the exercise in full of the Warrants.  All shares of Class A

                                       5
<PAGE>

Common Stock which shall be so issuable, when issued upon exercise of the
Warrants and payment therefor in accordance with the terms of the Warrants,
shall be duly and validly issued and fully paid and nonassessable, and not
subject to preemptive rights.

4.   ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES.

     The Exercise Price and the number of shares of Class A Common Stock covered
by the Warrants are subject to adjustment from time to time as provided in this
Section 4.

          (a) In case the Company shall at any time after the date of this
Warrant Certificate (i) effect a distribution payable in shares of Class A
Common Stock to all holders of the outstanding Class A Common Stock, (ii)
subdivide the outstanding shares of its Class A Common Stock, (iii) combine the
outstanding Class A Common Stock into a smaller number of shares of Class A
Common Stock or (iv) issue any securities of the Company in a reclassification
or recapitalization of the Class A Common Stock, then the number and kind of
securities issuable upon exercise of the Warrants (commencing on the record date
for such distribution or the effective date of such subdivision, combination,
reclassification or recapitalization) shall be proportionately adjusted so that
the holder of the Warrants exercised after such time shall be entitled to
receive the aggregate number and kind of securities which, if such Warrants had
been exercised in full immediately prior to such date, the holder would have
owned upon such exercise and been entitled to receive by virtue of such
distribution, subdivision, combination, reclassification or recapitalization.
Such adjustment shall be made successively whenever any event listed above shall
occur.

          (b) Upon each adjustment of the number of shares of Class A Common
Stock for which the Warrants are exercisable as provided in Section 4(a) hereof,
the per share Exercise Price payable upon exercise of the Warrants shall be
adjusted by multiplying the Exercise Price immediately prior to such adjustment
by a fraction (i) the numerator of which shall be the number of shares of Class
A Common Stock covered by the Warrants prior to such adjustment, and (ii) the
denominator of which shall be the number of shares of Class A Common Stock
covered by the Warrants immediately after such adjustment.

5.   RESTRICTIONS ON TRANSFER

     Except as otherwise provided in Section 8.2 hereof, the Warrants may not be
transferred, hypothecated or assigned without the prior written consent of the
Company, which consent may be given or withheld in the Company's sole
discretion.  Holder, by acceptance of this Warrant Certificate, agrees to be
bound by the provisions of this Section 5.
Each certificate representing shares of Warrant Stock issued upon the exercise
of a Warrant shall be stamped or otherwise imprinted with the following legend,
unless in the opinion of counsel for the Company, such legend is not required
under applicable laws:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

                                       6
<PAGE>

          AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THE SECURITIES HAVE
          BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR
          OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH SUCH ACT OR
          SUCH LAWS."

6.   LOSS, THEFT, DESTRUCTION OR MUTILATION

     Upon receipt by the Company from any Holder of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of this Warrant Certificate and indemnity or security reasonably
satisfactory to the Company and reimbursement to the Company of all reasonable
expenses incidental thereto, and in case of mutilation upon surrender and
cancellation of the mutilated Warrant Certificate, the Company will execute and
deliver in lieu hereof a new Warrant Certificate of like tenor to such Holder;
provided that, in the case of mutilation, no indemnity or security shall be
required if this Warrant Certificate in identifiable form is surrendered to the
Company for cancellation.

7.   LIMITATION OF LIABILITY AND RIGHTS AS STOCKHOLDER

     No provision hereof, in the absence of affirmative action by Holder to
purchase shares of Class A Common Stock, and no enumeration herein of the rights
or privileges of Holder hereof, shall give rise to any liability of such Holder
for the Exercise Price of any Warrant Stock or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the
Company.

     Prior to the exercise of the Warrants and the date of the stock certificate
representing the shares of Warrant Stock issuable upon exercise, the Holder of
this Warrant Certificate, as such, shall not be entitled to any rights of a
stockholder of the Company with respect to, or be deemed for any purpose the
holder of, shares for which the Warrants shall be exercisable, including without
limitation, the right to vote or to receive dividends or other distributions,
and shall not be entitled to receive any notice of any proceedings of the
Company, except as provided herein.

8.   MISCELLANEOUS

     8.1  Notice.  Any notice, demand, request, consent, approval, declaration,
          ------
delivery or other communication hereunder to be made pursuant to the provisions
of this Warrant Certificate shall be sufficiently given or made if in writing
and either delivered in person with receipt acknowledged or sent by registered
or certified mail, return receipt requested, postage prepaid, or by a nationally
recognized overnight courier or by telecopy and confirmed by telecopy answer
back, addressed as follows:

          (a) If to any Holder, at its last known address appearing on the books
of the Company maintained for such purpose.

                                       7
<PAGE>

          (b)  If to the Company at:

               PaeTec Corp.
               Attn:  Vice President - Finance
               290 Woodcliff Drive
               Fairport, New York 14450
               Telecopy Number:  (716) 340-2511

               with a copy to:

               PaeTec Corp.
               Attn:  General Counsel
               290 Woodcliff Drive
               Fairport, New York 14450
               Telecopy Number:  (716) 340-2563

or at such other address as may be substituted by notice given as herein
provided.  The giving of any notice required hereunder may be waived in writing
by the party entitled to receive such notice.  Every notice, demand, request,
consent, approval, declaration, delivery or other communication hereunder shall
be deemed to have been duly given or served on the date on which personally
delivered, with receipt acknowledged, or telecopied and confirmed by telecopy
answer back, one (1) Business Day after the same shall have been deposited with
a nationally recognized overnight courier or three (3) Business Days after the
same shall have been deposited in the United States mail.

     8.2  Successors and Permitted Assigns.  This Warrant Certificate and the
          --------------------------------
rights evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of Holder.
Neither this Warrant Certificate nor the rights evidenced hereby may be
assigned, transferred, pledged or otherwise disposed of by Holder to any other
Person without the prior written consent of the Company, except where such
assignment (i) is made by Agent to a sub-agent thereof who has performed bona
fide services on behalf of Holder to sell products and services of the Company,
and Agent has submitted documentation or proof satisfactory to the Company
concerning such fact, (ii) relates only to vested shares of Warrant Stock, and
                                                                           ---
(iii) is for at least fifty (50) or more vested shares of Warrant Stock
represented hereby and is in increments of fifty (50) shares.

     8.3  Amendment.  This Warrant Certificate or the Warrant represented hereby
          ---------
may be modified or amended, or the provisions hereof or thereof waived, only
with the written consent of the Company and the Holder.

     8.4. Severability.  Wherever possible, each provision of this Warrant
          ------------
Certificate shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Warrant Certificate shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Warrant Certificate.

                                       8
<PAGE>

     8.5. Headings.  The headings used in this Warrant Certificate are for the
          --------
convenience of reference only and shall not, for any purpose, be deemed a part
of this Warrant.

     8.6. Governing Law.  This Warrant Certificate and the Warrant represented
          -------------
hereby shall be governed by the laws of the State of Delaware, without regard to
the provisions thereof relating to conflict of laws.

                                       9
<PAGE>

    IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
duly executed and its corporate seal to be impressed hereon as of the date set
forth below.

                              PAETEC CORP.

SEAL
                              By:____________________________
                              Name:
                              Title:

ATTEST:

________________________________
Secretary or Assistant Secretary

                                       10
<PAGE>

                                   SCHEDULE A

Name of Agent:_________________________

Number of Shares:______________________

Anniversary Dates:*

     First Anniversary Date:  ______________________

     Second Anniversary Date:  _____________________

     Third Anniversary Date:  ______________________

     Fourth Anniversary Date:  _____________________

     Fifth Anniversary Date:  ______________________

     Revenue Target:  $____________ in actual gross Revenues.

-------------------
* Anniversary Dates are subject to change in accordance with Section 2.1(b) of
  the Warrant.

                                       11
<PAGE>

                                   EXHIBIT A

                                 EXERCISE FORM

                 [To be executed only upon exercise of Warrant]

          The undersigned registered owner of the Warrant represented by the
attached Warrant Certificate irrevocably exercises the Warrant for the purchase
of _____ shares of Class A Common Stock of PaeTec Corp., and (check one) [ ]
herewith makes payment therefor by a certified or bank check payable to the
order of PaeTec Corp. or [ ] hereby elects to effect a cashless exercise, all at
the price and on the terms and conditions specified in the attached Warrant
Certificate and requests that certificates for the shares of Class A Common
Stock hereby purchased (and any securities or other property issuable upon such
exercise) be issued in the name of and delivered to the undersigned at the
address indicated below and, if such shares of Class A Common Stock shall not
represent all of the shares of Class A Common Stock covered by the Warrant, that
a new Warrant Certificate of like tenor and date for the balance of the shares
of Class A Common Stock be delivered to the undersigned at such address.

                              . . . . . . . . . . . . . . . .
                              (Name of Registered Owner)

                              . . . . . . . . . . . . . . . .
                              (Signature of Registered Owner)

                              . . . . . . . . . . . . . . . .
                              (Street Address)

                              . . . . . . . . . . . . . . . .
                              (City)  (State)  (Zip Code)

NOTICE:   The signature on this subscription must correspond exactly with the
          name of the registered owner of the Warrant as it appears in the
          Company's books and records.

                                       12

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