Document:

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                                                                 Exhibit 10.16.2

               GENERAL REAFFIRMATION AND MODIFICATION AGREEMENT

          This General Reaffirmation and Modification Agreement ("Agreement") is
made as of the 4th day of August, 2000 among PAETEC CORP., a Delaware
corporation ("PaeTec"), PAETEC COMMUNICATIONS, INC., a Delaware corporation
("PaeTec Communications"), PAETEC INTERNATIONAL, INC., a Delaware corporation
("International"), PAETEC ONLINE, INC., a Delaware corporation ("PaeTec
Online"), PAETEC COMMUNICATIONS OF VIRGINIA, INC., a Virginia corporation
("PaeTec Virginia"), PAETEC CAPITAL CORP., a Delaware corporation ("PaeTec
Capital"), PINNACLE SOFTWARE CORPORATION, a New York corporation ("Pinnacle"),
DATA VOICE NETWORKS, INC., a Delaware corporation ("DVN"), EAST FLORIDA
COMMUNICATIONS, INC., a Florida corporation ("Florida";  PaeTec, PaeTec
Communications, PaeTec International, PaeTec Online, PaeTec Virginia, PaeTec
Capital, Pinnacle, DVN and Florida being hereinafter collectively referred to
hereinafter as the "Loan Parties" ), Canadian Imperial Bank of Commerce, as
                    ------------
"Administrative Agent" for the "Lenders" from time to time parties to that
certain Second Amended and Restated Loan and Security Agreement dated as of
August 4, 2000, and CIT Lending Services Corporation ("CIT LSC"), as "Collateral
Agent" for said Lenders (the "Amended Loan Agreement"), which Amended Loan
Agreement amends and restates that certain Amended and Restated Loan and
Security Agreement dated as of October 29, 1999 among PaeTec Communications,
International, PaeTec Online, PaeTec Virginia, PaeTec Capital, Florida, the
Lenders, the Administrative Agent and the Collateral Agent (the "Original Loan
Agreement").  Undefined capitalized terms which are used herein shall have the
meanings ascribed to such terms in the Amended Loan Agreement.

I.  Reaffirmation of Loan Documents.  In connection with the execution and
    -------------------------------
    delivery of the Amended Loan Agreement, each of the Loan Parties other than
    Pinnacle and DVN, as debtors, grantors, pledgors, guarantors, or in other
    similar capacities in which such Loan Parties grant liens or security
    interests in their properties, in each case under the Loan Documents
    heretofore executed and delivered in connection with or pursuant to the Loan
    Agreement, including, without limitation, the Loan Documents described in
    Schedule A hereto (as such Loan Documents may have been heretofore amended
    ----------
    or modified), hereby each (a) ratifies and reaffirms all of its payment and
    performance obligations, contingent or otherwise, under each of such Loan
    Documents to which it is a party, (b) to the extent such Loan Party granted
    liens on or security interests in any of its properties pursuant to any such
    Loan Documents, hereby ratifies and reaffirms such grant of security and
    confirms that such liens and security interests continue to secure the
    Obligations, including, without limitation, all additional Obligations
    resulting from or incurred pursuant to the Amended Loan Agreement and (c) to
    the extent such Loan Party guaranteed the Obligations or any portion
    thereof, hereby ratifies and reaffirms such guaranties.

II. Modification of Loan Documents.
    ------------------------------

    A.  General. Each Loan Party further agrees that all references in the Loan
        -------
        Documents being reaffirmed pursuant to Section 1 of this Agreement to
                                               ---------
        the Original Loan Agreement (including, without limitation, references
        to definitions of capitalized terms contained in the Original Loan
        Agreement) shall hereafter
<PAGE>

        mean and refer to the Original Loan Agreement as amended and restated by
        the Amended Loan Agreement. All references in such Loan Documents to the
        term "Obligations" shall hereafter mean and refer to the Obligations as
        redefined in the Amended Loan Agreement and shall include all additional
        Obligations resulting from or incurred pursuant to the Amended Loan
        Agreement. Each Loan Party further agrees that (i) all references in the
        Loan Documents to AT&T Commercial Finance Corporation or Newcourt
        Commercial Finance Corporation shall hereafter mean and refer to CIT LSC
        and (ii) that any references in the Loan Documents described in Schedule
                                                                        --------
        A to AT&T Commercial Finance Corporation or Newcourt Commercial Finance
        -
        Corporation in its capacity as "Agent" shall hereafter mean and refer to
        CIT LSC in its capacity as Collateral Agent.

    B.  Amendment of the Guaranty.
        -------------------------

        1.  The Guaranty is hereby amended to include Pinnacle and DVN as
            Borrowers, the Obligations of which are guaranteed by the Guarantor.

        2.  Section 7(ii)(b)(3) of the Guaranty is hereby amended to delete the
            amount "$100,000,000" in the fourth line thereof and to substitute
            therefor the amount "$175,000,000 plus an amount equal to the net
            cash proceeds of equity raised by the Guarantor after August 4, 2000
            but not to exceed $75,000,000" and to add the following clause at
            the end of such section: "; and provided, further, that the net
                                            --------  -------
            proceeds of all such unsecured Debt shall be contributed as cash
            equity to the Borrowers promptly after receipt thereof".

        3.  Section 7(ii)(b) of the Guaranty is hereby amended to add the
            following clause (5) thereto: " (5) contingent obligations of the
            Guarantor to pay true up adjustments to the former shareholders of
            Pinnacle pursuant to Section 11.7 of that certain Agreement and Plan
            of Merger by and among the Guarantor, PaeTec-PSC Acquisition Corp.,
            Pinnacle and the principal shareholders of Pinnacle dated March 21,
            2000 and to Data Voice Networks, Inc., a Pennsylvania corporation,
            pursuant to Section 11.5 of that certain Asset Purchase Agreement
            dated as of March 22, 2000 among PaeTec DVN Acquisition, Inc., Data
            Voice Networks, Inc., a Pennsylvania corporation, William Wechsler,
            James Lizon and Thomas Devine."

        4.  Section 7(ii)(c)(3) of the Guaranty is hereby amended to add the
            following clause: "and shall be generating positive EBITDA.

        5.  Section 7(ii)(c)(7) of the Guaranty is hereby amended to delete the
            words "cash portion of the" in the first line thereof, to delete the
            amount "$2,500,000" in clause (A) thereof and to substitute therefor
            the amount "$7,500,000", and to amend and restate clause (B) thereof
            in its entirety to read as follows: "(B) for all such transactions,
            $60,000,000, which shall be applied from the following sources only:
            subject to compliance with

                                       2
<PAGE>

            the terms and conditions of the Loan Agreement, $30,000,000 of the
            Commitment Amount as provided in Section 2.02(a) thereof, cash
                                             ---------------
            equity received by the Guarantor after the Closing Date, Equity
            Interests in the Guarantor given as consideration for payment of all
            or a portion of the acquisition price (subject to compliance with
            applicable anti-dilution provisions) and unsecured Debt of the
            Guarantor not to exceed a principal amount of $10,000,000".

III. Governing Law.  This Agreement shall be construed and enforced and the
     -------------
     rights and duties of the parties shall be in all respects governed by and
     in accordance with the internal laws and decisions (as opposed to the
     conflict of laws provisions) of the State of New York.

IV.  Headings.  Section headings in this Agreement are included herein for
     --------
     convenience of reference only and shall not constitute part of this
     Agreement.

V.   Counterparts.  This Agreement may be executed by one or more of the parties
     ------------
     hereto on any number of separate counterparts and all of said counterparts
     taken together shall be deemed to constitute one and the same agreement.

                                    * * * *

                                       3
<PAGE>

          IN WITNESS WHEREOF, this Agreement has been duly executed as of the
day and year first above written.

                                 PAETEC CORP.
                                 PAETEC COMMUNICATIONS, INC.
                                 PAETEC INTERNATIONAL, INC.
                                 PAETEC ONLINE, INC.
                                 PAETEC COMMUNICATIONS OF
                                    VIRGINIA, INC.
                                 PAETEC CAPITAL CORP.
                                 PINNACLE SOFTWARE CORPORATION

                                 DATA VOICE NETWORKS, INC
                                 EAST FLORIDA COMMUNICATIONS, INC.

                                 In each case:

                                 By:     /s/ Timothy J. Bancroft
                                      ------------------------------
                                      Name: Timothy J. Bancroft
                                      Title: Vice President, Finance

                     GENERAL REAFFIRMATION AND MODIFICATION
                            AGREEMENT SIGNATURE PAGE
<PAGE>

        Agreed and Accepted as of
        this 4th day of August, 2000:

                                 CIT LENDING SERVICES CORPORATION,
                                 as Collateral Agent

                                 By:  /s/ Mike Monahan
                                      -------------------------
                                      Name: Mike Monahan
                                      Title:   Vice President

                     GENERAL REAFFIRMATION AND MODIFICATION
                            AGREEMENT SIGNATURE PAGE
<PAGE>

                                  SCHEDULE A
                                      TO

               GENERAL REAFFIRMATION AND MODIFICATION AGREEMENT

                           Dated as of August 4, 2000

Capitalized terms which are used herein and not otherwise defined in the
foregoing Agreement shall have the meanings ascribed to such terms in the
"Amended Loan Agreement" (defined above).

        1.  Collateral Assignments of Leases by the Borrowers in favor of the
            Collateral Agent;

        2.  Collateral Assignments of Licenses by the Borrowers in favor of the
            Collateral Agent;

        3.  Trademark Security Agreement executed by PaeTec Online in favor of
            the Collateral Agent;

        4.  Trademark Security Agreement executed by PaeTec Communications in
            favor of the Collateral Agent;

        5.  Trademark Security Agreement executed by Campuslink Communications,
            Inc. (now merged into PaeTec Communications) in favor of the
            Collateral Agent;

        6.  Pledge Agreement and Supplements hereto executed by PaeTec in favor
            of the Collateral Agent, for the benefit of the Lenders, with
            respect to 100% of the outstanding capital stock of each Borrower
            other than Florida (together with stock certificates and stock
            powers);

        7.  Restricted Account Agreements among PaeTec Communications, the
            Collateral Agent and First National Bank, PaeTec Communications, the
            Collateral Agent and Bank One, N.A., and East Florida
            Communications, Inc., the Collateral Agent and Coquina Bank.

        8.  Amended and Restated Guaranty executed by PaeTec Corp. in favor of
            the Collateral Agent with respect to the Obligations of the
            Borrowers.<PAGE>

                                                                   EXHIBIT 10.18

                                     PROXY
                                     -----

          Effective as of June 30, 2000, each of the undersigned, being the
holder of the number of shares of Class B Common Stock of PaeTec Corp. (the
"Company") indicated following such holder's name below, does hereby designate
and appoint Arunas A. Chesonis ("Chesonis") my true and lawful attorney-in-fact
and proxy, with full power of substitution and re-substitution, to (a) represent
and vote all shares of Class B Common Stock of the Company (the "Class B Common
Stock") now or hereafter standing in my name on the books of the Company at any
meeting of stockholders of the Company, regular or special, whenever called, and
for whatever purpose, in person or by proxy, and (b) to express my consent upon
any future matter upon which the stockholders of the Company are requested to
take action without a meeting and to execute any and all written consents in
respect thereof.  Chesonis is authorized to vote my shares of Class B Common
Stock in his sole and absolute discretion.

          This Proxy is coupled with an interest and, except as hereafter
provided, is irrevocable and may not be terminated by the undersigned.  A copy
of this Proxy shall be filed with the Company and the existence hereof duly
noted on any certificates evidencing shares of Class B Common Stock held by the
undersigned, and any transferee of such shares shall take the shares subject to
the terms of this Proxy.  This Proxy shall have a term of twenty (20) years from
the date first set forth above.

          Notwithstanding the foregoing, this Proxy shall be subject to
revocation by the undersigned if, after the date hereof:

          1.  Chesonis is no longer at least one of (a) the Chairman of the
              Board of the Company or (b) the Chief Executive Officer of the
              Company; or

          2.  Chesonis, in combination with any trust, limited liability company
              or limited partnership of which Chesonis is, respectively, the
              sole trustee, the sole manager or the sole general partner ceases
              to own of record or beneficially at least 2,000,000 shares of the
              Class B Common Stock (as adjusted for stock splits, stock
              dividends, stock combinations, recapitalizations and similar
              transactions); or

          3.  all of the shares of Class B Common Stock held by the undersigned
              are converted into shares of Class A Common Stock of the Company
              (the "Class A Common Stock").

          This Proxy only applies to shares of Class B Common Stock and shall
not apply to shares of Class A Common Stock, whether shares of Class A Common
Stock are originally issued as shares of Class A Common Stock or are issued upon
<PAGE>

the conversion of shares of Class B Common Stock into shares of Class A Common
Stock.

          This Proxy shall be governed by and construed in accordance with the
laws of the State of Delaware without giving effect to any choice of law or
conflict of law provision or rule that would cause the application of the law of
any jurisdiction other than the State of Delaware.

          Any proxy or proxies heretofore given by me to any person or persons
are hereby revoked.

<PAGE>

          IN WITNESS WHEREOF, each of the undersigned has duly executed and
delivered this Proxy effective as of the date first set forth above.

                                   /s/ Bradford M. Bono
                              -------------------------------------------------
                              Bradford M. Bono

                                                 30,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Michael Baron
                              -------------------------------------------------
                              Michael Baron, Trustee for the Jack Baron
                              Irrevocable Trust for the Benefit of Jackson Roy
                              Baron

                                              7,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Michael Baron
                              -------------------------------------------------
                              Michael Baron, Trustee for the Jack Baron
                              Irrevocable Trust for the Benefit of Lauren Baron

                                             11,500
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Michael Baron
                              -------------------------------------------------
                              Michael Baron, Trustee for the Jack Baron
                              Irrevocable Trust for the Benefit of Jessica Baron

                                             11,500
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                           [signature page to Proxy]
<PAGE>

                                   /s/ Richard E. Ottalagana
                              -------------------------------------------------
                              Richard E. Ottalagana

                                             30,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Daniel J. Venuti
                              -------------------------------------------------
                              Daniel J. Venuti

                                             30,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Joseph D. Ambersley
                              -------------------------------------------------
                              Joseph D. Ambersley

                                             30,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Edward J. Butler, Jr.
                              -------------------------------------------------
                              Edward J. Butler, Jr.

                                             15,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                                   /s/ Richard J. Padulo
                              -------------------------------------------------
                              Richard J. Padulo

                                             15,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                           [signature page to Proxy]
<PAGE>

                                   /s/ Timothy J. Bancroft
                              -------------------------------------------------
                              Timothy J. Bancroft

                                             5,000
                              -------------------------------------------------
                              Number of Class B Shares Currently Held

                           [signature page to Proxy]
<PAGE>

                          Acknowledgement and Agreement

          The undersigned, Arunas A. Chesonis, hereby acknowledges and agrees
that the foregoing Proxy, dated as of June 30, 2000, revokes and supersedes all
prior proxies granted by the holders of Class B Common Stock executing the
foregoing Proxy.

Date:  June 30, 2000      /s/ Arunas A. Chesonis
       -------------      ----------------------
                              Arunas A. Chesonis

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