Document:

EXHIBIT 10.14

 Exhibit 10.14 
  
 SERIES A STOCKHOLDER AGREEMENT 
  
 THIS SERIES A STOCKHOLDER AGREEMENT (this “Agreement”), is dated as of this 22nd day of April, 2005, by and among PaeTec Corp., a Delaware corporation (the “Company”); Madison Dearborn
Capital Partners III L.P., a Delaware limited partnership, Madison Dearborn Special Equity III, L.P., a Delaware limited partnership, and Special Advisors Fund I LLC, a Delaware limited liability company (collectively, the “MDCP Group
Stockholders”); Blackstone CCC Capital Partners L.P., a Delaware limited partnership, Blackstone CCC Offshore Capital Partners L.P., a Cayman Islands limited partnership, and Blackstone Family Investment Partnership III L.P., a Delaware
limited partnership (collectively, the “Blackstone Group Stockholders”); and Ares Leveraged Investment Fund L.P., a Delaware limited partnership, Ares Leveraged Investment Fund L.P. II, a Delaware limited partnership, CIT Lending
Services Corporation (f/k/a Newcourt Commercial Finance Corporation), a Delaware corporation (“CIT”), Caravelle Investment Fund, L.L.C., a Delaware limited liability company, UnionBanCal Equities, Inc., a California corporation, and
GE Capital Equity Investments, Inc., a Delaware corporation (collectively with the MDCP Group Stockholders and the Blackstone Group Stockholders, the “Series A Stockholders”). 
  
 RECITALS 
  
 WHEREAS, each Series A Stockholder is the beneficial and record owner of shares of the preferred stock, par value $0.01 per
share, of the Company designated as the Series A Convertible Preferred Stock (the “Series A Preferred Stock”) set forth opposite the name of such Stockholder on Schedule 1 attached hereto; 
  
 WHEREAS, the Company wishes (i) to consummate a recapitalization (the
“Recapitalization”) pursuant to which the Class A common stock, par value $0.01 per share, of the Company (the “Class A Common Stock”) and the Class B common stock, par value $0.01 per share, of the Company will be
reclassified (the “Reclassification”) into a single class of common stock, par value $0.01 per share, of the Company (the “New Common Stock”) and (ii) immediately after the consummation of the Recapitalization, to
offer, issue and sell shares of the New Common Stock in an underwritten initial public offering (the “IPO”) registered under the Securities Act of 1933, as amended (the “Securities Act”); 
  
 WHEREAS, if the IPO constitutes a “Qualified Public Offering,” as
defined in Section 11 of Article VI (the “QPO Provision”) of the Restated Certificate of Incorporation of the Company in effect as of the date hereof (the “Certificate of Incorporation”), the Company may require the
holders of the Series A Preferred Stock to convert all, and not less than all, of the then-outstanding shares of the Series A Preferred Stock into common stock of the Company in connection with the closing of the IPO; 
  

 WHEREAS, the existing definition of a “Qualified Public Offering” requires the Company to (i)
issue and sell “Common Stock” (as such term is defined in the QPO Provision) pursuant to a “Public Offering” (as such term is defined in the QPO Provision) at a price per share of Common Stock paid to the Company which equals or
exceeds (x) 1.5 times (y) the conversion price of the Series A Preferred Stock in effect immediately prior to the consummation of such Public Offering (the “Series A Conversion Price”) and (ii) receive gross proceeds of such Public
Offering which equal or exceed $50 million; 
  
 WHEREAS, the
Company has proposed to amend the definition of “Qualified Public Offering” in the QPO Provision to provide that a “Qualified Public Offering” will occur even if the price per share of Common Stock paid to the Company pursuant to
the IPO does not equal or exceed the minimum price specified in the QPO Provision, but that the Series A Conversion Price will be reduced in such event according to a formula specified in such amendment (such amendment in the form specified in this
Agreement, the “QPO Amendment”); 
  
 WHEREAS, in
connection with the IPO, the Company will file with the Secretary of State of the State of Delaware (the “Delaware Secretary of State”) (i) a certificate of amendment to the Certificate of Incorporation containing the QPO Amendment
and additional amendments to the Certificate of Incorporation, which shall be effective prior to the closing of the IPO (the “Certificate of Amendment”), and (ii) an amended and restated Certificate of Incorporation, which shall be
effective from and after the closing of the IPO (the “Restated Certificate of Incorporation”); 
  
 WHEREAS, upon consummation of the IPO, in partial consideration of various consents, approvals and other actions by certain other stockholders of the
Company, the Company proposes to sell shares of the New Common Stock to such other stockholders pursuant to agreements referred to in this Agreement if the Series A Conversion Price is reduced pursuant to the QPO Amendment; 
  
 WHEREAS, in connection with the IPO, the Company proposes to take other
actions pursuant to agreements referred to in this Agreement with certain stockholders of the Company, all dated as of the date hereof; 
  
 WHEREAS, to facilitate the consummation of the IPO, the Series A Stockholders wish to consent to and to approve the Certificate of Amendment, the Restated
Certificate of Incorporation, the transactions contemplated by the other stockholder agreements referred to in this Agreement and the other matters set forth herein, upon the terms and subject to the conditions of this Agreement; and 
  
 WHEREAS, following a recommendation of a committee of the Board of Directors
of the Company (the “Board of Directors”) composed exclusively of disinterested directors, the Board of Directors has reviewed the transactions contemplated by this Agreement and determined that this Agreement is in the best
interests of the Company and its stockholders; 
  

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 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 ARTICLE I 
  
 APPROVALS, CONSENTS
AND WAIVERS 
  
 1.1. Approval of Charter Amendments.
Concurrently with the execution and delivery of this Agreement, each Series A Stockholder, in such Series A Stockholder’s capacity as owner of record of the shares of Series A Preferred Stock set forth on Schedule 1 attached hereto,
acting with respect to all of such shares of Series A Preferred Stock so owned of record, has delivered to the Company a duly executed counterpart of a written consent in lieu of a meeting of stockholders of the Company, in the form attached hereto
as Exhibit A, approving and consenting to various matters, including each of the following: 
  

	 	(i)	the Certificate of Amendment in the form attached to such written consent (the “Certificate of Amendment”); 

  

	 	(ii)	the Restated Certificate of Incorporation in the form attached to such written consent; and 

  

	 	(iii)	the Amended and Restated Bylaws of the Company in the form attached to such written consent (the “Restated Bylaws”). 

  
 The Company shall file the Certificate of Amendment with the Delaware
Secretary of State, and the Certificate of Amendment shall become effective under the General Corporation Law of the State of Delaware (the “Delaware General Corporation Law”), prior to the IPO Closing Time. The Restated Certificate
of Incorporation and the Restated Bylaws shall become effective under the Delaware General Corporation Law as of the IPO Closing Time or as soon as reasonably practicable thereafter and shall continue in effect thereafter until amended in accordance
with their respective terms and the Delaware General Corporation Law. 
  
 1.2. Approval of Agreements. Each Series A Stockholder hereby consents to and approves the following agreements: 
  

	 	(i)	the Campuslink Stock Purchase Agreement, dated as of the date hereof, among the Company and the Persons set forth on the signature pages thereof under the heading “Campuslink
Stockholders” and “Other Stockholders” in the form attached hereto as Exhibit B (the “Campuslink Stock Purchase Agreement”); 

  

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	 	(ii)	the Initial Investors’ Stock Purchase Agreement, dated as of the date hereof, among the Company and the Persons set forth on the signature pages thereof under the heading
“Stockholders,” in the form attached hereto as Exhibit C (the “Initial Investors’ Stock Purchase Agreement”); 

  

	 	(iii)	the Founding Stockholders’ Agreement, dated as of the date hereof, among the Company and the Persons set forth on the signature pages thereof under the heading
“Stockholders,” in the form attached hereto as Exhibit D (the “Founding Stockholders’ Agreement”); 

  

	 	(iv)	the Termination Agreement, dated as of the date hereof, among the Company, the Majority Stockholders (as such term is defined therein) and the CCS Group Stockholders (as such term
is defined therein), in the form attached hereto as Exhibit E, with respect to the termination of the CCS Group Stockholders’ Agreement; 

  

	 	(v)	Letter Agreement, dated as of the date hereof, between the Company and Pacific Capital Group Inc., and Letter Agreement, dated as of the date hereof, between the Company and Kline
Hawkes & Co., in the form attached hereto as Exhibit F-1 and Exhibit F-2, respectively; and 

  

	 	(vi)	Amendment No. 1, dated as of the date hereof, to Third Amended and Restated Loan and Security Agreement and to Second Amended and Restated Guaranty, each dated as of March 31, 2004,
among the Company, and the Borrowers, Lenders, Administrative Agent and Collateral Agent specified therein, in the form attached hereto as Exhibit G. 

  
 1.3. Approvals and Waivers Under Equity Purchase Agreement and Stockholders’ Agreement. 
  
 1.3.1 Notwithstanding any contrary provision in the Equity Purchase
Agreement, dated as of February 4, 2000, among the Company and the Series A Stockholders (the “Equity Purchase Agreement”) or in any other agreement between the Company and any Series A Stockholder, but subject only to Section
1.3.3, the execution and delivery of this Agreement by the Series A Stockholders shall be deemed to constitute any and all approvals of the (i) the Transactions and (ii) all other instruments, documents and actions reasonably required to evidence or
effectuate the consummation of the Transactions and otherwise to carry out the intent of the parties under this Agreement (including any instruments, documents and actions with respect to Permitted Subordinated Debt contemplated by Exhibit G
(as such term is defined in such exhibit)), in each case, which are required to be given by (a) the holders of a majority of the Purchaser Securities held by the MDCP Group Stockholders or their permitted assigns and transferees, (b) the holders of
a majority of the Purchaser Securities held by the Blackstone Group Stockholders or their permitted assigns and 

  

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transferees (as such capitalized terms in clauses (a) and (b) are defined in the Equity Purchase Agreement) or (c) any other Series A Stockholder or group of
Series A Stockholders, in each case, pursuant to Section 5D of the Equity Purchase Agreement, any other agreement to which Series A Stockholders and the Company are parties or otherwise. 
  
 1.3.2 The execution, delivery and performance of this Agreement by the Company shall be deemed to constitute, with respect
to the Transactions, (i) full compliance by the Company and the Principal Stockholders (as such term is defined in the Preferred Stockholders’ Agreement, the “Principal Stockholders”) with the provisions of the Preferred
Stockholders’ Agreement and (ii) full compliance by the Company with the Certificate of Incorporation (including the terms of the Series A Preferred Stock set forth in Article VI thereof), insofar as the terms of the Preferred
Stockholders’ Agreement and the Certificate of Incorporation are applicable to the Transactions, and no Series A Stockholder shall assert any right, claim or entitlement under or by reason of the Preferred Stockholders’ Agreement or the
Certificate of Incorporation inconsistent with this Agreement. Without limiting the generality of the foregoing, each Series A Stockholder hereby waives (to the extent that such Series A Stockholder has applicable rights under the agreements and
instruments below), with respect to the Transactions, (a) the application of Section 2 of the Preferred Stockholders’ Agreement and the provisions of any other agreement or understanding to which the Company or any Principal Stockholder is a
party or by which it is or may be bound which grants such Series A Stockholder “tag-along” or other similar rights to sell or otherwise transfer Securities (as such term is defined in the Preferred Stockholders’ Agreement), (b) the
application of Section 3 of the Preferred Stockholders’ Agreement and the provisions of any other agreement or understanding to which the Company is a party or by which it is or may be bound which grants such Series A Stockholder preemptive or
other rights of any nature whatsoever to purchase or otherwise acquire any shares of any class of capital stock of the Company, (c) compliance by the Company, any Series A Stockholder, any Principal Stockholder and CIT with the notice and other
requirements of Sections 2.2 and 3.2 of the Preferred Stockholders’ Agreement and (d) the application of Sections 6D and 6E of Article VI of the Certificate of Incorporation. The consents, waivers and approvals set forth in Section 1.2, in this
Section 1.3.2 and in Section 1.3.1 shall continue to be deemed to have been made following any amendment or modification of any agreement or instrument which constitutes part of the Transactions unless such amendment or modification (i) increases
the rights of stockholders of the Company that are parties to such agreement or instrument in any material respect or (ii) adversely affects the contemplated benefits of this Agreement to the Series A Stockholders or the rights of the Series A
Stockholders under this Agreement. 
  
 1.3.3. Notwithstanding the
provisions of Section 1.3.1 or Section 1.3.2, the Transactions that shall not have been consummated prior to the time that the IPO Purchase Agreement shall become a binding obligation of the Company shall not be consummated if, prior to such time,
each of Madison Dearborn Capital Partners III, L.P. and Blackstone CCC Capital Partners L.P. shall (i) reasonably object in writing to the initial public offering price per share of New Common Stock, or (ii) reasonably object in writing to any other
terms and conditions of the IPO Purchase Agreement. 
  

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 1.3.4. Except as specifically set forth in Sections 1.3.1, 1.3.2 and 1.3.3, the rights of the holders of
a majority of the Purchaser Securities held by the MDCP Group Stockholders or their permitted assigns and transferees and the holders of a majority of the Purchaser Securities held by the Blackstone Group Stockholders or their permitted assigns and
transferees (as such terms are defined in the Equity Purchase Agreement) pursuant to Section 5D of the Equity Purchase Agreement shall remain in full force and effect and shall be applicable to any applicable transactions other than the Transactions
(and the other instruments, documents and actions reasonably required to evidence or effectuate the consummation of the Transactions and otherwise to carry out the intent of the parties under this Agreement) until the provisions of Section 4 of
Amendment No. 1 to Equity Purchase Agreement, dated as of the date hereof, among the Company and the Purchasers (as such term is defined therein) shall become effective. For the avoidance of doubt, no agreement, arrangement or transaction between
the Company and any members of the Company’s management, and no adoption or approval of, or other arrangement relating to, any equity compensation plan, shall be, or be deemed to be, for purposes of this Section 1.3 a “Transaction” or
as being reasonably required to evidence or effectuate the consummation of the Transactions or otherwise to carry out the intent of the parties under this Agreement. 
  
 1.4. Execution of Other Agreements; New Voting Agreement. 
  
 1.4.1. Concurrently with the execution and delivery of this Agreement, each
Series A Stockholder has delivered to the Company a duly executed counterpart of the following documents: 
  

	 	(i)	the Termination Agreement, dated as of the date hereof, among the Company and the Stockholders (as such term is defined therein), with respect to the termination of the Voting
Agreement, dated as of February 4, 2000, among the Company and such Stockholders; 

  

	 	(ii)	Amendment No. 1 to Equity Purchase Agreement, dated as of the date hereof, among the Company and the Purchasers (as such term is defined therein); and 

  

	 	(iii)	the Termination Agreement, dated as of the date hereof, among the Company and the Stockholders (as such term is defined therein), with respect to the termination of the Preferred
Stockholders’ Agreement. 

  
 1.4.2.
Concurrently with the execution and delivery of this Agreement, each MDCP Group Stockholder and each Blackstone Group Stockholder has delivered to the Company a duly executed counterpart of the Voting Agreement, dated as of the date hereof, among
the Company and the Stockholders (as such term is defined therein). 
  
 1.5. Participation in IPO; Use of Certain Proceeds; Lock-up; Waiver of Registration Rights. 
  
 1.5.1 The only shares of New Common Stock that shall be offered pursuant to the IPO shall be shares of New Common Stock offered by the Company for 

  

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its own account and, subject to the provisions of this Section 1.5, shares of New Common Stock offered by and for the account of the Participating
Stockholders and the Non-Waiving Stockholders. Subject to the provisions of this Section 1.5, the IPO shall be composed of the Company Primary Component, the Secondary Components, the Tertiary Components and the Over-Allotment Components.

  
 1.5.2. The Company hereby agrees, as hereinafter provided, as
follows: 
  
 (i) pursuant to Section 1.5.3, to
apply all of the gross proceeds, less underwriting discounts and commissions, of the sale, if any, of shares of New Common Stock in the IPO that constitute the Company Secondary Component and the Company Tertiary Component to pay a cash dividend on
the Series A Preferred Stock; and 
  
 (ii)
pursuant to Section 1.5.4, to apply all of the gross proceeds, less underwriting discounts and commissions, of the sale, if any, of shares of New Common Stock in the IPO that constitute the Company Over-Allotment Component to pay a cash dividend on
the Series A Preferred Stock. 
  
 1.5.3. On the IPO Purchase
Agreement Effective Date, the Board of Directors shall declare (i) a cash dividend of the Secondary Series A Dividend Amount and (ii) a cash dividend of the Tertiary Series A Dividend Amount, in each case, which shall be payable to the holders of
record of the Series A Preferred Stock as of the close of business on such date, provided that the Board of Directors shall condition the payment of (x) the dividend referred to in clause (i) of this Section 1.5.3 on the Company’s prior receipt
of the gross proceeds, less underwriting discounts and commissions, of the sale of shares of New Common Stock representing the Company Secondary Component and (y) the dividend referred to in clause (ii) of this Section 1.5.3 on the Company’s
prior receipt of the gross proceeds, less underwriting discounts and commissions, of the sale of shares of New Common Stock representing the Company Tertiary Component. The Company shall pay each such dividend as soon as reasonably practicable
following the IPO Closing Time, but in no event later than one Business Day following the date on which the IPO Closing Time shall occur. 
  
 1.5.4. On the IPO Purchase Agreement Effective Date, the Board of Directors shall declare a cash dividend of the Maximum Over-Allotment Series A Dividend
Amount payable to the holders of record of the Series A Preferred Stock as of the close of business on such date, provided that the Board of Directors shall condition the payment of such dividend on the Company’s prior receipt of the gross
proceeds, less underwriting discounts and commissions, of the sale of shares of New Common Stock representing the Company Over-Allotment Component. The amount of such dividend shall equal the gross proceeds, less underwriting discounts and
commissions, actually received by the Company from the sale of the Company Over-Allotment Component. The Company shall pay such dividend as soon as reasonably practicable following the date and time of the consummation of the sale of shares of New
Common Stock representing the Company Over-Allotment Component, but in no event later than one Business Day following the date on which the consummation of the sale of shares of New Common Stock representing the Company Over-Allotment Component
shall occur. 
  

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 1.5.5. On the IPO Purchase Agreement Effective Date, the Board of Directors shall declare a stock
dividend of the number of shares of New Common Stock representing up to the Maximum Company Over-Allotment Component payable to the holders of record of the Series A Preferred Stock as of the close of business on such date. The declaration of such
dividend shall provide that such dividend shall be payable only if either (x) no shares of New Common Stock constituting the Company Over-Allotment Component shall have been sold pursuant to the IPO or (y) shares of New Common Stock constituting the
Company Over-Allotment Component, but less than the Maximum Company Over-Allotment Component, shall have been sold pursuant to the IPO. If the Company shall become obligated to pay such dividend, (i) the amount of such dividend shall equal the
Company Over-Allotment Difference and (ii) the Company shall pay such dividend as soon as reasonably practicable following the expiration of the Over-Allotment Option, but in no event later than one Business Day following the date on which the
expiration of the Over-Allotment Option shall occur. 
  
 1.5.6.
The obligations of the Company and the actions and determinations of the Board of Directors pursuant Sections 1.5.2, 1.5.3, 1.5.4, 1.5.5 and 1.5.15 shall be subject to, and qualified by, compliance with applicable provisions of the Delaware General
Corporation Law, including the provisions of Section 170 thereof; provided, however, that the Company shall use commercially reasonable efforts to ensure that such actions and determinations contemplated by Sections 1.5.2, 1.5.3, 1.5.4, 1.5.5 and
1.5.15 shall comply with the Delaware General Corporation Law. 
  
 1.5.7. The Company shall use commercially reasonable efforts to obtain from each stockholder entitled to registration rights with respect to the IPO pursuant to the registration rights agreements set forth on Schedule 2 a waiver of
the rights of each such stockholder to include shares of New Common Stock for offering pursuant to the IPO. If the Company shall not be able, using commercially reasonable efforts, to obtain such a waiver from any such stockholder entitled to
registration rights with respect to the IPO pursuant to any such registration rights agreement, and such stockholder requests that its shares of New Common Stock be included for offering pursuant to the IPO, the Company shall be entitled to include
for offering pursuant to the IPO shares of New Common Stock of each such non-waiving stockholder (collectively, the “Non-Waiving Stockholders”) in accordance with the registration rights agreement of such stockholder, but subject to
the cutback provisions set forth in Section 1.5.9 (provided that, if the cutback provisions in the registration rights agreement of any such stockholder are inconsistent with Section 1.5.9, the Company shall use reasonable best efforts to cause such
stockholder to agree to the cutback provisions set forth in Section 1.5.9). If the Company shall be required to include shares of New Common Stock of any Non-Waiving Stockholder for offering pursuant to the IPO, such shares shall reduce the number
of shares of New Common Stock that shall constitute the Company Secondary Component, the Participating Stockholder Secondary Component, the Company Tertiary Component, the Participating Stockholder Tertiary Component, the Company Over-Allotment
Component and the Participating Stockholder Over-Allotment Component in the manner contemplated by the definitions of such terms in Article VI. 
  
 1.5.8. Promptly after such time, if ever, as the lead managing Underwriters and the Company shall determine to include shares of New Common 

  

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Stock for offering pursuant to the IPO that shall generate gross proceeds (before underwriting discounts and commissions) in excess of $85.0 million, the
Company shall provide written notice to each Series A Stockholder of the actual number of shares of New Common Stock that the Company is expected to be entitled to offer pursuant to the IPO in accordance with Section 1.5.1 and the range of prices at
which shares of New Common Stock are expected to be so offered. The number of shares of New Common Stock specified in such notice, absent manifest error, shall be conclusive and binding on each Series A Stockholder. 
  
 1.5.9. If the lead managing Underwriters advise the Company in writing, at
any time after the written notice specified in Section 1.5.8 is delivered to the Series A Stockholders, that marketing factors require a limitation of the number of shares of New Common Stock to be underwritten and sold in the IPO, the lead managing
Underwriters may exclude from such registration some or all of the shares of New Common Stock that constitute the Secondary Components, the Tertiary Components and the Over-Allotment Components. In such event, the shares of New Common Stock which
(i) the Company otherwise shall be entitled to include in the Company Secondary Component, the Company Tertiary Component and the Company Over-Allotment Component, (ii) each Participating Stockholder otherwise shall be entitled to include in the
Participating Stockholder Secondary Component, the Participating Stockholder Tertiary Component and the Participating Stockholder Over-Allotment Component, and (iii) each Non-Waiving Stockholder otherwise shall be entitled to include in the
Non-Waiving Stockholder Secondary Component, the Non-Waiving Stockholder Tertiary Component and the Non-Waiving Stockholder Over-Allotment Component shall be reduced on a pro rata basis among the Company, the Participating Stockholders and the
Non-Waiving Stockholders based on the number of shares of New Common Stock entitled to be included for offering pursuant to the Secondary Components, the Tertiary Components and the Over-Allotment Components by the Company, each Participating
Stockholder and each Non-Waiving Stockholder. 
  
 1.5.10.
Notwithstanding any other provision of this Agreement, the Company shall not be obligated to complete any registration of New Common Stock it proposes to make in connection with the IPO under this Section 1.5. If, at any time after giving a notice
delivered to the Series A Stockholders pursuant to Section 1.5.8 and prior to the effective date of the IPO Registration Statement, the Company shall determine for any reason not to register or to delay registration of such New Common Stock, the
Company shall promptly give written notice of such determination to the Series A Stockholders and, thereupon, (i) in the case of a determination not to register, the Company shall be relieved of its obligation to register any securities in
connection with the IPO and (ii) in the case of a determination to delay registration, the Company shall be permitted to delay registering any shares of New Common Stock in connection with the IPO for such period of time as shall be determined by
the Board of Directors, subject to the termination provisions set forth in Article V. 
  
 1.5.11. Each Series A Stockholder hereby agrees (i) from and after the date hereof until the expiration of the Lock-up Period, not to exercise its right to request a Demand Registration (as such term is defined in the
Registration Rights Agreement) pursuant to Article 2 of the Registration Rights Agreement and (ii) from and after the 

  

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commencement of the Lock-up Period until the expiration of the Lock-up Period, not to exercise its piggyback registration rights pursuant to Article 3 of the
Registration Rights Agreement, in each case, whether in connection with the IPO and the IPO Registration Statement or otherwise. 
  
 1.5.12. Without the prior written consent of the Company, each Series A Stockholder hereby agrees that, prior to the consummation of the IPO, it shall not
Transfer to any other Person any shares of the Series A Preferred Stock that such Series A Preferred Stockholder owns beneficially or of record as of the date of this Agreement; provided that, prior to the date of the IPO Purchase Agreement, such
Series A Stockholder may Transfer shares of Series A Preferred Stock to one or more of its controlled Affiliates so long as such controlled Affiliate agrees to be bound by the provisions of this Agreement. 
  
 1.5.13. Concurrently with the execution and delivery of this Agreement, each
Series A Stockholder has delivered to the Company a duly executed counterpart of a Lock-up Letter with respect to all of the shares of Series A Preferred Stock, all of the shares of the Company’s common stock and other securities specified
therein held by such Series A Stockholder, which shall be effective for the period specified therein (the “Lock-up Period”). Each Series A Stockholder further agrees that, as soon as reasonably practicable (and in no event later
than the date on which the marketing efforts with respect to the IPO shall commence), such Series A Stockholder shall cause each of such Stockholder’s controlled Affiliates that beneficially owns capital stock of the Company to execute a
Lock-up Letter with respect to all of the shares of the Series A Preferred Stock, all of the shares of the Company’s common stock and other securities specified therein held by such controlled Affiliate, which shall be effective for the Lock-up
Period. 
  
 1.5.14. To the extent that the execution, delivery and
performance of this Agreement by the parties hereto shall be deemed to require an amendment to the Registration Rights Agreement approved by the Company or any Series A Stockholder, or a waiver by the Company or any Series A Stockholder of its
rights under the Registration Rights Agreement, this Agreement shall constitute a “written consent” within the meaning of Section 8.8 of the Registration Rights Agreement necessary for this Agreement to constitute such an amendment and
waiver and for such amendment and waiver to be a valid and binding obligation of the Company and each Series A Stockholder, enforceable against the Company and each such Series A Stockholder. 
  
 1.5.15. On the IPO Purchase Agreement Effective Date, the Board of Directors
shall declare a cash dividend of the Series A Dividend Floor Amount payable to the holders of record of the Series A Preferred Stock as of the close of business on such date; provided that the Board of Directors shall condition the payment of such
dividend on the consummation of the IPO. The Company shall pay such dividend as soon as reasonably practicable following the expiration of the Over-Allotment Option, but in no event later than one Business Day following the date on which the
expiration of the Over-Allotment Option shall occur. 
  

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 ARTICLE II 
  
 REPRESENTATIONS AND WARRANTIES 
  
 OF THE SERIES A STOCKHOLDERS 
  
 Each Series A Stockholder, severally and not jointly, represents and warrants
to the Company as of the date hereof that: 
  
 2.1. Due
Authorization. Such Series A Stockholder has the requisite corporate, partnership or limited liability company power and authority to enter into this Agreement and to consummate the transactions contemplated hereby to be consummated by Series A
Stockholder. The execution and delivery of this Agreement by such Series A Stockholder, and the compliance by such Series A Stockholder with each of the provisions of this Agreement (including the approval of the QPO Amendment and the consummation
by such Series A Stockholder of the other transactions contemplated hereby to be consummated by Series A Stockholder), (i) are within the corporate, partnership, or limited liability company power and authority of such Series A Stockholder and (ii)
have been duly authorized by such Series A Stockholder. This Agreement has been duly executed and delivered by such Series A Stockholder. Assuming due authorization, execution and delivery by all other parties to this Agreement, this Agreement
constitutes a valid and binding agreement of such Series A Stockholder enforceable against such Series A Stockholder in accordance with its terms, except as such enforcement is limited by bankruptcy, insolvency and other similar Laws affecting the
enforcement of creditors’ rights generally and for limitations imposed by general principles of equity.  
  
 2.2. No Violations; Consents. Neither the execution, delivery or performance by such Series A Stockholder of this Agreement, nor the consummation
of the transactions contemplated hereby, will (i) conflict with, or result in a breach or a violation of, any provision of the articles of incorporation, bylaws, partnership agreement, limited liability company agreement or other organizational
documents of such Series A Stockholder; (ii) conflict with or constitute, with or without notice or the passage of time or both, a breach, violation or default by such Series A Stockholder under (A) any Law applicable to such Series A Stockholder or
(B) any provision of any agreement or other instrument binding upon such Series A Stockholder or any of its assets or properties, except for conflicts, breaches, violations and defaults, which, individually or in the aggregate, would not materially
adversely affect the ability of such Series A Stockholder to perform its other obligations under this Agreement; or (iii) require any Consents, Approvals and Filings on the part of such Series A Stockholder. 
  
 2.3. Litigation. There is no Litigation pending or, to the knowledge
of such Series A Stockholder, threatened against such Series A Stockholder or any of its controlled Affiliates or involving any of its properties or assets by or before any court, arbitrator or other Governmental Entity which in any manner
challenges or seeks to prevent, enjoin, alter or materially delay the transactions contemplated by this Agreement. 
  

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 2.4. Securities Laws. 
  
 2.4.1. With respect to the additional shares of Class A Common Stock or other securities issuable upon conversion of the
Series A Preferred Stock that such Series A Stockholder may have the right to acquire or receive from the Company pursuant hereto (collectively, the “Additional Securities”), such Series A Stockholder hereby reaffirms, with respect
to such Additional Securities, the representations and warranties that are set forth in Section 4C of the Equity Purchase Agreement (other than the proviso in Section 4C(i), Section 4C(vii) and Section 4C(viii))(which are incorporated herein by
reference and shall survive any termination of the Equity Purchase Agreement), and that are applicable to the “Restricted Securities” defined therein and acknowledges that, upon issuance thereof, such Additional Securities shall be deemed
to constitute “Restricted Securities” for purposes of the Equity Purchase Agreement. 
  
 2.4.2. The principal offices of such Series A Stockholder and the offices of such Series A Stockholder in which it made its decision to invest in the Additional Securities are located at the address of such Series A
Stockholder set forth on Schedule 1 attached hereto. 
  
 2.4.3. The Company did not contact such Series A Stockholder or provide such Series A Stockholder with any information regarding the offering or sale of the Additional Securities through any “general solicitation” or “general
advertising” within the meaning of Rule 502(c) of Regulation D under the Securities Act. 
  
 2.5. No Transfers of Rights. Such Series A Stockholder has not transferred any of such Series A Stockholder’s rights under any agreement to which the Company is a party to any Person (except for any Person
which also is a Series A Stockholder under this Agreement), including any Affiliate of such Stockholder. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 The
Company represents and warrants to the Series A Stockholders as of the date hereof that: 
  
 3.1. Due Authorization. The Company has the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby to
be consummated by the Company. The execution, delivery and performance by the Company of this Agreement, and the compliance by the Company with each of the provisions of this Agreement (including the sale of the Shares hereunder), (i) are within the
corporate power and authority of the Company and (ii) except as expressly provided herein, have been duly and validly authorized by all necessary corporate action of the Company. This Agreement has been duly executed and delivered by the Company and
constitutes a valid and binding obligation of the Company, enforceable against the 

  

 12 

 
Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency and other similar Laws affecting the enforcement
of creditors’ rights generally and for limitations imposed by general principles of equity. 
  
 3.2. No Violations; Consents. Neither the execution, delivery or performance by the Company of this Agreement, nor the consummation of the
transactions contemplated hereby, will (i) conflict with, or result in a breach or a violation of, any provision of the Certificate of Incorporation or the bylaws of the Company as in effect on the date hereof; (ii) conflict with or constitute, with
or without notice or the passage of time or both, a breach, violation or default by the Company under (A) any Law applicable to the Company or (B) any provision of any agreement or other instrument binding upon the Company or any of its assets or
properties, except for conflicts, breaches, violations and defaults, which, individually or in the aggregate, would not materially adversely affect the ability of the Company to perform its other obligations under this Agreement; or (iii) require
any Consents, Approvals and Filings on the part of the Company, except for (A) Consents, Approvals and Filings expressly contemplated by this Agreement, (B) Consents, Approvals and Filings required pursuant to applicable securities laws and (C)
other Consents, Approvals and Filings that, if not made or received, would not materially adversely affect the ability of the Company to issue the Additional Securities and to perform its other obligations under this Agreement. 
  
 3.3. Litigation. There is no Litigation pending or, to the knowledge
of the Company, threatened against the Company or involving any of the properties or assets of the Company by or before any court, arbitrator or other Governmental Entity which in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by this Agreement. 
  
 3.4. Validity of Shares. The Additional Securities, when issued in accordance with this Agreement and the Certificate of Incorporation, as amended by the Certificate of Amendment, will be validly issued, fully paid, nonassessable and
free of all liens. 
  
 3.5. Capitalization. As of the date
hereof, 26,664,258 shares of Class A Common Stock, 2,635,000 shares of Class B Common Stock and 134,000 shares of Series A Preferred Stock are issued and outstanding. All of such shares are validly issued, fully paid and nonassessable.

  
 3.6. No General Solicitation. The Company did not
contact any Series A Stockholder or provide any Series A Stockholder with any information regarding the offering or sale of the Additional Securities through any “general solicitation” or “general advertising” within the meaning
of Rule 502(c) of Regulation D under the Securities Act. 
  

 13 

  
 ARTICLE IV 
  
 COVENANTS 
  
 4.1. Commercially Reasonable Efforts. Except as otherwise expressly provided in this Agreement, each party hereto
shall use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to consummate the transactions contemplated by this Agreement to
be consummated by such party. In furtherance and not in limitation of the other covenants of the parties contained in this Agreement, if any administrative or judicial action or proceeding, including any proceeding by a private party, is instituted
(or threatened to be instituted) challenging any transaction contemplated by this Agreement, each party shall cooperate in all respects with each other party and use its commercially reasonable efforts to contest and resist any such action or
proceeding and to have vacated, lifted, reversed or overturned any decree, judgment, injunction or other order, whether temporary, preliminary or permanent, that is in effect and that prohibits, prevents or restricts the consummation of the
transactions contemplated by this Agreement. Notwithstanding anything to the contrary in this Section 4.1, nothing in this Section 4.1 or in Section 4.2 shall require any party to take or refrain from taking any action or to consent to any matter
that would materially restrict such party’s business assets or activities or the transactions contemplated by this Agreement, materially impair the contemplated benefits of this Agreement to such party or, with respect to CIT, interfere with
the exercise of any rights or powers of CIT or its Affiliates under the Loan Agreement. 
  
 4.2. Further Assurances. Subject to the last sentence of Section 4.1, each party shall, at any time and from time to time after the date of this Agreement until the later of (i) the first anniversary of the IPO
Closing Time and (ii) the date on which such party shall cease to own any securities of the Company, cooperate with each other party hereto and, at the request of any other party, shall execute and deliver any further instruments or documents and
shall take all such further action, whether as a stockholder of the Company (in the case of any Series A Stockholder) or otherwise, as such other party may reasonably request in order to evidence or effectuate the consummation of the transactions
contemplated by this Agreement (to the extent that the consummation of any such transaction is an obligation of the non-requesting party) and otherwise to carry out the intent of the parties under this Agreement. 
  
 4.3. Lock-up Letters. The Company shall use its commercially
reasonable efforts to cause each of its employees and each of its stockholders who owns 30,000 or more shares of the Class A Common Stock as of the date hereof as soon as reasonably practicable (and prior to the date on which the marketing efforts
with respect to the IPO shall commence), and shall cause each of its executive officers and directors on the date hereof, to execute a Lock-up Letter with respect to the shares of the Company’s common stock, options to purchase shares of the
Company’s common stock, and other specified securities held by such employee, stockholder, executive officer or director, which shall be effective for the Lock-up Period. 
  

 14 

 4.4. Confidentiality. In the event any Series A Stockholder (including the officers, employees,
counsel, accountants, internal and external auditors, partners, agents and other authorized representatives of such Stockholder or its controlled Affiliates (collectively, the “Representatives”)) obtains from the Company or its
representatives any Confidential Information in connection with the transactions contemplated by this Agreement (or, with respect to GE Capital Equity Investments, Inc. or CIT only, solely in connection with the equity transactions contemplated by
this Agreement), such Series A Stockholder (i) shall treat all such Confidential Information as confidential, (ii) shall use such Confidential Information only for the purpose of evaluating the Transactions, (iii) shall protect such Confidential
Information with the same degree of care as such Series A Stockholder uses to protect its own proprietary information against public disclosure, but in no case with less than reasonable care, and (iv) shall not disclose such Confidential Information
to any third party except to the extent required by Law or any court or to its Representatives who need to know such Confidential Information for the purpose of effectuating the transactions contemplated by this Agreement (or for enforcing any
rights or remedies of such party under this Agreement) and who have been informed of and have agreed to protect the confidential nature of such Confidential Information (and such Series A Stockholder shall be responsible for compliance with this
Section 4.4 by the Representatives of such Series A Stockholder). 
  
 4.5. Public Statement. Unless otherwise required by law, no Series A Stockholder shall issue any press release or make any public statement with respect to this Agreement or the transactions contemplated hereby without the prior
written consent of the Company. Unless otherwise required, in the Company’s reasonable judgment, by law (including rules and regulations of the Securities and Exchange Commission and any securities exchange or automated quotation system on
which the Company’s securities are or will be traded or listed), the Company shall not issue any press release or make any public statement regarding the involvement of any Series A Stockholder with respect to this Agreement without the prior
consent of such Series A Stockholder. 
  
 4.6. Dividend Floor
Amount. Unless the Company shall otherwise wish to use readily available funds, if any, the Company shall use commercially reasonable efforts to secure, or to cause one or more of its subsidiaries to secure, an amount of subordinated
indebtedness or other indebtedness, the proceeds of which may and shall be used, if necessary, to pay the Series A Dividend Floor Amount. Nothing in this Section 4.6 shall affect the Company’s obligations or the actions and determinations of
the Board of Directors with respect to the declaration and payment of dividends in accordance with Section 1.5. 
  
 4.7. Consummation of Certain Transactions. (a) The Company shall not execute and deliver the IPO Purchase Agreement, file the Certificate of
Amendment with the Delaware Secretary of State or consummate the IPO unless, at such time, each of the following conditions shall have been satisfied or waived by the Series A Stockholders in accordance with Section 6.9: 
  
 (i) no preliminary or permanent injunction or other order,
writ, judgment or decree by any Governmental Entity which would prevent the consummation of the transactions contemplated hereby shall have been issued and remain in effect; 
  

 15 

 (ii) no statute, rule, regulation or other Law shall have been enacted by any
Governmental Entity which would prevent or make illegal the consummation of the transactions contemplated by this Agreement; 
  
 (iii) the Other Stockholder Agreements shall be in full force and effect in the form attached hereto or as modified in a manner which does
not adversely affect the contemplated benefits of this Agreement to the Series A Stockholders; 
  
 (iv) all other actions to be taken by the Company prior to such time in connection with the transactions contemplated by this Agreement
shall have been taken to the reasonable satisfaction of the MDCP Representative and the Blackstone Representative; and 
  
 (v) there shall not have been (i) a reasonable objection in writing to the initial public offering price per share of New Common Stock, or
(ii) a reasonable objection in writing to any other terms and conditions of the IPO Purchase Agreement, in each case, delivered to the Company by both of Madison Dearborn Capital Partners III, L.P. and Blackstone CCC Capital Partners L.P.

  
 (b) The Company shall not be obligated to execute and deliver
the IPO Purchase Agreement, to file the Certificate of Amendment with the Delaware Secretary of State or to consummate the IPO unless, at such time, each of the following conditions shall have been satisfied or waived by the Company in accordance
with Section 6.9: 
  
 (i) no preliminary or
permanent injunction or other order, writ, judgment or decree by any Governmental Entity which would prevent the consummation of the transactions contemplated hereby shall have been issued and remain in effect; 
  
 (ii) no statute, rule, regulation or other Law shall have
been enacted by any Governmental Entity which would prevent or make illegal the consummation of the transactions contemplated by this Agreement; 
  
 (iii) the Other Stockholder Agreements shall be in full force and effect; 
  
 (iv) all other actions to be taken by the Series A Stockholders prior to such time in connection with the
transactions contemplated by this Agreement shall have been taken to the reasonable satisfaction of the Company; and 
  
 (v) there shall not have been (i) a reasonable objection in writing to the initial public offering price per share of New Common Stock, or
(ii) a reasonable objection in writing to any other terms and conditions of the IPO Purchase 

  

 16 

 
Agreement, in each case, delivered to the Company by both of Madison Dearborn Capital Partners III, L.P. and Blackstone CCC Capital Partners L.P. 

 
 ARTICLE V 
  
 TERMINATION 
  
 5.1. Termination. This Agreement may be terminated as follows: 
  
 (i) at any time, by mutual written agreement of the Company and Series A Stockholders holding a majority of the outstanding
shares of Series A Preferred Stock; 
  
 (ii) by either the
Company, on the one hand, or the Series A Stockholders, on the other hand, by notice hereunder if the Company shall not have become bound by the IPO Purchase Agreement on or before December 31, 2005 (provided that the right to terminate this
Agreement under this Section 5.1(ii) shall not be available to the Series A Stockholders if the failure by any Series A Stockholder to fulfill any of its obligations hereunder has been the cause of, or resulted in, the failure of the Company to
become bound by the IPO Purchase Agreement on or before such date); 
  
 (iii) by the Series A Stockholders by notice hereunder if any Other Stockholder Agreement is amended without the prior written consent of the Series A Stockholders in a manner which adversely affects in any material respect the contemplated
benefits of this Agreement to the Series A Stockholders; and 
  
 (iv) by the Company, if it shall not have sufficient funds to pay the Series A Dividend Floor Amount (provided that the right to terminate this Agreement under this Section 5.1(iv) shall not be available if the Company’s failure to
have sufficient funds to pay the Series A Dividend Floor Amount has resulted from the Company’s failure to use commercially reasonable efforts to secure, or to cause one or more of its subsidiaries to secure, an amount of subordinated
indebtedness or other indebtedness, the proceeds of which may be used to pay the Series A Dividend Floor Amount). 
  
 5.2. Effect of Termination. If this Agreement is terminated by the Company or the Series A Stockholders pursuant to Section 5.1, this Agreement
shall forthwith become void ab initio and there shall be no further obligations on the part of the Company or the Series A Stockholders or their respective stockholders, directors, officers, employees, agents or representatives, except for
the provisions of Sections 4.4 and 4.5, this Section 5.2 and Article VI, which shall survive any termination of this Agreement, provided, that nothing in this Section 5.2 shall relieve any party from liability for any breach of this Agreement.

  

 17 

 ARTICLE VI 
  
 MISCELLANEOUS 
  
 6.1. Definitions. In addition to the definitions ascribed in the preamble, recitals and other Articles of this Agreement to the capitalized terms
set forth in such other provisions of this Agreement, the following terms, as used in this Agreement, shall have the following meanings: 
  
 “Affiliate“ shall have the meaning specified in Rule 405 under the Securities Act. 
  
 “Beneficially own” shall have the same meaning as in Rule
13d-3 promulgated under the Exchange Act, as such Rule is in effect on the date hereof. 
  
 “Business Day“ shall mean any day except Saturday, Sunday and any legal holiday or a day on which banking institutions located in New York, New York are required by Law or other governmental actions
to close. 
  
 “Campuslink Stockholders” means,
collectively, the Persons set forth on the signature pages of the Campuslink Stock Purchase Agreement under the heading “Campuslink Stockholders” and “Other Stockholders.” 
  
 “CCS Group Stockholders’ Agreement” shall mean the
Stockholders’ Agreement, dated as of September 9, 1999, as amended as of February 4, 2000, among the Company, Arunas A. Chesonis, Christopher Edgecomb, Trustee of the Christopher E. Edgecomb Living Trust Dated April 25, 1998, Jeffrey Sudikoff
and each Person identified as a “CCS Group Stockholder” on the signature pages thereof. 
  
 “Company Over-Allotment Component” shall mean a number of shares of New Common Stock offered by the Company for its own account pursuant
to the Over-Allotment Option in the IPO that shall generate gross proceeds (before underwriting discounts and commissions), in addition to the gross proceeds of the Company Primary Component, the Company Secondary Component and the Company Tertiary
Component, of up to approximately $24.0 million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Company Over-Allotment Component, if any, shall be determined by the Board of Directors and the lead
managing Underwriters and, subject to the following sentence, shall equal approximately 80% of all shares of New Common Stock offered pursuant to the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the
gross proceeds that shall be generated by, the Company Over-Allotment Component shall be reduced by approximately 80% of the number of shares of New Common Stock that shall constitute, and approximately 80% of the gross proceeds that shall be
generated by, the Non-Waiving Stockholder Over-Allotment Component. 
  
 “Company Over-Allotment Difference” shall mean a number of shares of New Common Stock equal to (i) the Maximum Company Over-Allotment Component 

  

 18 

 
minus (ii) the shares of New Common Stock actually sold pursuant to the IPO that constitute the Company Over-Allotment Component. 
  
 “Company Primary Component” shall mean a number of shares of
New Common Stock offered by the Company for its own account pursuant to the IPO that shall generate gross proceeds (before underwriting discounts and commissions) of approximately $85.0 million. 
  
 “Company Secondary Component” shall mean a number of shares
of New Common Stock offered by the Company for its own account pursuant to the IPO that shall generate gross proceeds (before underwriting discounts and commissions), in addition to the gross proceeds of the Company Primary Component and prior to
the gross proceeds of the Company Tertiary Component and the Company Over-Allotment Component, of up to approximately $42.25 million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Company Secondary
Component, if any, shall be determined by the Board of Directors and, subject to the following sentence, shall equal approximately 65% of all shares of New Common Stock offered pursuant to the IPO, other than the shares of New Common Stock that
shall constitute the Company Primary Component, the Tertiary Components and the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the gross proceeds that shall be generated by, the Company Secondary
Component shall be reduced by approximately 65% of the number of shares of New Common Stock that shall constitute, and approximately 65% of the gross proceeds that shall be generated by, the Non-Waiving Stockholder Secondary Component. 

 
 “Company Tertiary Component” shall mean a number of
shares of New Common Stock offered by the Company for its own account pursuant to the IPO that shall generate gross proceeds (before underwriting discounts and commissions), in addition to the gross proceeds of the Company Primary Component and the
Company Secondary Component and prior to the gross proceeds of the Company Over-Allotment Component, of up to approximately $40.0 million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Company Tertiary
Component, if any, shall be determined by the Board of Directors and, subject to the following sentence, shall equal approximately 80% of all shares of New Common Stock offered pursuant to the IPO, other than the shares of New Common Stock that
shall constitute the Company Primary Component, the Secondary Components and the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the gross proceeds that shall be generated by, the Company Tertiary
Component shall be reduced by approximately 80% of the number of shares of New Common Stock that shall constitute, and approximately 80% of the gross proceeds that shall be generated by, the Non-Waiving Stockholder Tertiary Component.

  
 “Confidential Information” shall mean
technical and business information relating to the Company’s intellectual property rights, trade secret processes or devices, techniques, data, formula, inventions (whether or not patentable) or products, research and development (including
research subjects, methods and results), operating systems, computer software, costs, profit or margin information, pricing policies, confidential market information, budget and finances, customers, distribution, sales, marketing and 

  

 19 

 
production, business strategy and future business plans and any other information of a “confidential” nature, specifically including any
information that is identified orally or in writing by the Company to be confidential, or that a Series A Stockholder should reasonably understand under the circumstances to be a trade secret or information of a similar nature, provided that
Confidential Information shall not include any such information which (i) was in the public domain on the date hereof or comes into the public domain other than through the fault or negligence of such Series A Stockholder, (ii) was lawfully obtained
by such Series A Stockholder from a third party without breach of this Agreement and otherwise not in violation of the Company’s rights, (iii) was known to such Series A Stockholder at the time of disclosure of such Confidential Information to
such Series A Stockholder by the Company, provided that such Series A Stockholder was not, at such time, subject to any confidentiality obligation with respect thereto, or (iv) was independently developed by such Series A Stockholder without making
use of any Confidential Information. 
  
 “Consents,
Approvals and Filings” shall mean any material consent, order, approval or authorization of, notification or submission to, filing with, license or permit from, or exemption or waiver by, any Governmental Entity or any other Person,
including any of the foregoing pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder. 
  
 “Exchange Act“ shall mean the Securities Exchange Act of 1934, as amended, or any successor federal statute, in each case as the same
shall be in effect at the time. 
  
 “Governmental
Entity“ shall mean any United States federal, state or local judicial, legislative, executive, administrative or regulatory body or authority. 
  
 “IPO Closing Time” shall mean the time and date of the closing of the IPO. 
  
 “IPO Purchase Agreement” shall mean the Purchase Agreement to be entered into by the Company, the selling
stockholders named therein (if any) and the representatives of the Underwriters with respect to the issuance, offering and sale by the Company and selling stockholders named therein (if any) of New Common Stock in the IPO. 
  
 “IPO Purchase Agreement Effective Date” shall mean the date
as of which the IPO Purchase Agreement shall become effective. 
  
 “IPO Registration Statement” shall mean any registration statement on Form S-1 filed by the Company with the Securities and Exchange Commission with respect to the IPO. 
  
 “Laws” shall mean all United States federal, state and local
laws, statutes, ordinances, rules, regulations, orders and decrees. 
  
 “Litigation” shall mean any claim, action, suit, investigation or proceeding. 
  

 20 

 “Loan Agreement” shall mean the Third Amended and Restated Loan and Security Agreement,
dated as of March 31, 2004, as amended from time to time, among PAETEC Communications, Inc., PAETEC International, Inc., PAETEC Online, Inc., PAETEC Communications of Virginia, Inc., PAETEC Capital Corp., Campuslink Communications Systems, Inc.,
Select Switch Acquisition Co., Parklink Communications, Inc. and East Florida Communications, Inc., as Borrowers; the Financial Institutions from time to time parties thereto, as Lenders, Canadian Imperial Bank of Commerce, as Administrative Agent
for the Lenders, CIT, as Collateral Agent for the Lenders, Deutsche Bank Trust Company Americas and General Electric Capital Corporation, as Co-Syndication Agents, and Merrill Lynch Capital Corporation, IBM Credit LLC, Hewlett-Packard Financial
Services Company and Union Bank Of California, N.A., as Co-Agents. 
  
 “Lock-up Letter” shall mean a letter agreement in substantially the form attached hereto as Exhibit H, with such changes thereto, if any, as shall be authorized by the Underwriters, provided that no changes shall
increase the duration of the Lock-up Period. 
  
 “Maximum
Company Over-Allotment Component” shall mean the maximum number of shares of New Common Stock that may constitute the Company Over-Allotment Component, assuming that the Over-Allotment Option is exercised in full. 
  
 “Maximum Over-Allotment Series A Dividend Amount” shall mean
the amount of gross proceeds, less underwriting discounts and commissions, to the Company from the offering and sale of shares of New Common Stock pursuant to the IPO that constitute the Maximum Company Over-Allotment Component. 
  
 “Non-Waiving Stockholder Over-Allotment Component” shall
mean the number of shares of New Common Stock that Non-Waiving Stockholders shall be entitled, and shall request, to include for offering pursuant to the Over-Allotment Option in the IPO and that shall not have been offered and sold as part of the
Non-Waiving Stockholder Secondary Component or the Non-Waiving Stockholder Tertiary Component. 
  
 “Non-Waiving Stockholder Secondary Component” shall mean the number of shares of New Common Stock that Non-Waiving Stockholders shall be entitled, and shall request, to include for offering pursuant
to the IPO, excluding the shares of New Common Stock that shall constitute the Non-Waiving Stockholder Tertiary Component and the Non-Waiving Stockholder Over-Allotment Component. 
  
 “Non-Waiving Stockholder Tertiary Component” shall mean the number of shares of New Common Stock that
Non-Waiving Stockholders shall be entitled, and shall request, to include for offering pursuant to the IPO, excluding the shares of New Common Stock that shall constitute the Non-Waiving Stockholder Secondary Component and the Non-Waiving
Stockholder Over-Allotment Component. 
  

 21 

 “Other Stockholder Agreements” shall mean the Campuslink Stock Purchase Agreement, the
Initial Investors’ Stock Purchase Agreement and the Founding Stockholders’ Agreement, in each case, as amended from time to time. 
  
 “Over-Allotment Components” shall mean, collectively, the Company Over-Allotment Component, the Participating Stockholder Over-Allotment
Component and the Non-Waiving Stockholder Over-Allotment Component. 
  
 “Over-Allotment Option” shall mean the option, if any, that the Company, the Participating Stockholders and the Non-Waiving Stockholders shall grant pursuant to the IPO Purchase Agreement to the Underwriters to purchase
shares of New Common Stock representing the Over-Allotment Components. 
  
 “Over-Allotment Series A Gross Amount” shall mean the total amount of gross proceeds received by the Company pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall
constitute the Company Over-Allotment Component. 
  
 “Participating Stockholder Over-Allotment Component” shall mean a number of shares of New Common Stock offered by and for the account of the Participating Stockholders pursuant to the Over-Allotment Option in the IPO that
shall generate gross proceeds (before underwriting discounts and commissions), in addition to the gross proceeds of the Participating Stockholder Secondary Component and the Participating Stockholder Tertiary Component, of up to approximately $6.0
million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Participating Stockholder Over-Allotment Component, if any, shall be determined by the Board of Directors and the lead managing Underwriters and,
subject to the following sentence, shall equal approximately 20% of all shares of New Common Stock offered pursuant to the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the gross proceeds that shall
be generated by, the Participating Stockholder Over-Allotment Component shall be reduced by approximately 20% of the number of shares of New Common Stock that shall constitute, and approximately 20% of the gross proceeds that shall be generated by,
the Non-Waiving Stockholder Over-Allotment Component. 
  
 “Participating Stockholder Secondary Component” shall mean a number of shares of New Common Stock offered by and for the account of the Participating Stockholders pursuant to the IPO that shall generate gross proceeds
(before underwriting discounts and commissions) of up to approximately $22.75 million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Participating Stockholder Secondary Component, if any, shall be
determined by the Board of Directors and, subject to the following sentence, shall equal approximately 35% of all shares of New Common Stock offered pursuant to the IPO, other than the shares of New Common Stock that shall constitute the Company
Primary Component, the Tertiary Components and the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the gross proceeds that shall be generated by, the Participating Stockholder Secondary Component shall
be reduced by approximately 35% of the number of shares of New Common Stock that shall constitute, 

  

 22 

 
and approximately 35% of the gross proceeds that shall be generated by, the Non-Waiving Stockholder Secondary Component. 
  
 “Participating Stockholder Tertiary Component” shall mean a
number of shares of New Common Stock offered by and for the account of the Participating Stockholders pursuant to the IPO that shall generate gross proceeds (before underwriting discounts and commissions), in addition to the gross proceeds of the
Participating Stockholder Secondary Component, of up to approximately $10.0 million. Subject to such maximum, the number of shares of New Common Stock that shall constitute the Participating Stockholder Tertiary Component, if any, shall be
determined by the Board of Directors and, subject to the following sentence, shall equal approximately 20% of all shares of New Common Stock offered pursuant to the IPO, other than the shares of New Common Stock that shall constitute the Company
Primary Component, the Secondary Components and the Over-Allotment Components. The number of shares of New Common Stock that shall constitute, and the gross proceeds that shall be generated by, the Participating Stockholder Tertiary Component shall
be reduced by approximately 20% of the number of shares of New Common Stock that shall constitute, and approximately 20% of the gross proceeds that shall be generated by, the Non-Waiving Stockholder Tertiary Component. 
  
 “Participating Stockholders” shall mean, collectively, the
Campuslink Stockholders, Christopher E. Edgecomb, Trustee of the Christopher E. Edgecomb Living Trust dated April 25, 1998, Jeffrey Sudikoff and CIT. 
  
 “Person” shall mean an individual, firm, corporation, partnership, limited liability company, association, trust, company or other entity
or organization, including a government or political subdivision or an agency or instrumentality thereof, and shall include any successor (by merger or otherwise) of such Person. 
  
 “Preferred Stockholders’ Agreement” shall mean the Stockholders’ Agreement, dated as of February
4, 2000, as amended from time to time, among the Company, the Series A Stockholders, Arunas A. Chesonis, Christopher E. Edgecomb, Trustee of the Christopher E. Edgecomb Living Trust dated April 25, 1998, and Jeffrey Sudikoff. 
  
 “Registration Rights Agreement” shall mean the Amended and
Restated Registration Rights Agreement, dated as of February 4, 2000, as amended from time to time, by and among the Company, Alliance Cabletel Holdings, L.P., Kline Hawkes California SBIC, L.P., The Union Labor Life Insurance Corporation Separate
Account P, and the other individuals and/or entities listed on Schedule A thereto, and the Series A Stockholders. 
  
 “Secondary Components” shall mean, collectively, the Company Secondary Component, the Participating Stockholder Secondary Component and
the Non-Waiving Stockholder Secondary Component. 
  
 “Secondary Series A Dividend Amount” shall mean the total amount of gross proceeds, less underwriting discounts and commissions, expected to be received by 

  

 23 

 
the Company pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall constitute the Company Secondary
Component. 
  
 “Secondary Series A Gross Amount”
shall mean the total amount of gross proceeds received by the Company pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall constitute the Company Secondary Component. 
  
 “Series A Dividend Amount” shall mean the sum of (a) the
Secondary Series A Dividend Amount plus (b) the Tertiary Series A Dividend Amount plus (c) the Series A Over-Allotment Dividend Amount plus (d) the Series A Dividend Floor Amount. 
  
 “Series A Gross Dividend Amount” shall mean the sum of (a) the Secondary Series A Gross Amount plus (b) the
Tertiary Series A Gross Amount plus (c) the Over-Allotment Series A Gross Amount. 
  
 “Series A Dividend Floor Amount” shall equal the lesser of the following: 
  
 (i) the difference of (x) the difference of (a) $134.0 million minus (b) the total amount of underwriting discounts and commissions payable by the
Company with respect to the sale of shares of New Common Stock pursuant to the Company Secondary Component, the Company Tertiary Component and the Company Over-Allotment Component (in each case, if any), minus (y) the sum of (a) the
Secondary Series A Dividend Amount plus (b) the Tertiary Series A Dividend Amount plus (c) the amount of the dividend declared pursuant to Section 1.5.4 (but only if such dividends shall have been declared for payment to the extent required by
Section 1.5); and 
  
 (ii) the difference of (x) $40.0
million minus (y) the amount of any loan origination fee and expenses incurred by the Company in order to satisfy its obligation to pay the Series A Dividend Floor Amount, provided that such amount shall not exceed $1.2 million.

  
 “Series A Gross Floor Amount” shall mean the
lesser of the following: 
  
 (i) the difference of (x)
$134.0 million minus (y) the sum of (a) the Secondary Series A Gross Amount plus (b) the Tertiary Series A Gross Amount plus (c) the Over-Allotment Series A Gross Amount (in each case, if any); and 
  
 (ii) $40.0 million. 
  
 “Series A Over-Allotment Dividend Amount” shall mean the
total amount of gross proceeds, less underwriting discounts and commissions, received by the Company pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall constitute the Company Over-Allotment
Component. 
  

 24 

 “Tertiary Components” shall mean, collectively, the Company Tertiary Component, the
Participating Stockholder Tertiary Component and the Non-Waiving Stockholder Tertiary Component. 
  
 “Tertiary Series A Dividend Amount” shall mean the total amount of gross proceeds, less underwriting discounts and commissions, expected
to be received by the Company pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall constitute the Company Tertiary Component. 
  
 “Tertiary Series A Gross Amount” shall mean the total amount of gross proceeds received by the Company
pursuant to the offering and sale of the shares of New Common Stock, if any, pursuant to the IPO that shall constitute the Company Tertiary Component. 
  
 “Transactions” shall mean collectively (i) the Recapitalization, (ii) the offering, issuance and sale of New Common Stock in the IPO and
all agreements and arrangements in connection therewith, (iii) the approval and, where applicable, filing with the Delaware Secretary of State of the Certificate of Amendment, the Restated Certificate of Incorporation and the Restated Bylaws, (iv)
the transactions contemplated by the Other Stockholder Agreements, (v) the transactions contemplated by the agreements referred to in Section 1.4 and (vi) the transactions contemplated by this Agreement, including, with respect to each of the
agreements set forth in clauses (iv), (v) and (vi), the schedules, appendices, and final forms of agreements and other exhibits which are attached thereto. 
  
 “Transfer” means, with respect to any securities, directly or indirectly, to sell, transfer, assign, distribute, pledge, encumber,
hypothecate, or similarly dispose of, either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, assignment, distribution, pledge, encumbrance, hypothecation
or similar disposition of, whether by operation of law or otherwise, such securities. 
  
 “Underwriters” shall mean the underwriters of the IPO. 
  
 6.2. Survival of Representations and Warranties. Except as otherwise provided in Article V, all representations and warranties set forth in this
Agreement or in any writing delivered by any party pursuant to this Agreement shall survive the transactions contemplated by this Agreement (regardless of any investigation, inquiry or examination made by any party or on its behalf or any knowledge
of any party or the acceptance by any party of any certificate or opinion) until the first anniversary of the IPO Closing Time. 
  
 6.3. Fees and Expenses. Except as contemplated by the Equity Purchase Agreement, each party to this Agreement shall be responsible for the payment
of the fees and expenses of its own advisers, counsel, accountants, investment banks and other experts, if any, and all other expenses incurred by such party in connection with the negotiation, preparation, execution, delivery and performance of
this Agreement. 
  

 25 

 6.4. Specific Enforcement. The parties hereto agree that (i) irreparable damage would occur in the
event that any of the provisions of this Agreement were not performed in accordance with their specific intent or were otherwise breached and (ii) the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to which they may be entitled by law or equity. 
  
 6.5. Successors and Assigns. Except as otherwise expressly provided herein, (i) all covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto, whether so expressed or not, and (ii) neither the Company, on the one hand,
nor any Series A Stockholder, on the other hand, may assign or delegate all or any portion of its rights, obligations or liabilities under this Agreement without the prior written consent of Blackstone CCC Capital Partners L.P. (or such Person
designated thereby) (the “Blackstone Representative”) and Madison Dearborn Capital Partners III, L.P. (or such Person designated thereby) (the “MDCP Representative”), in the case of any such assignment or delegation
by the Company, or the Company, in the case of any such assignment or delegation by any Series A Stockholder. 
  
 6.6. Entire Agreement. This Agreement, together with the Schedules and Exhibits attached hereto, constitutes the entire agreement among the parties
hereto and thereto with respect to the subject matter hereof and thereof and supersedes all prior agreements and understandings, both oral and written, among some or all of the parties hereto and thereto with respect to such subject matter.

  
 6.7. Notices. All notices, demands, requests, consents
or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when (i) delivered personally to the recipient, (ii) telecopied to the recipient (with
hard copy, (which shall not constitute notice) sent to the recipient by reputable overnight courier service (charges prepaid) that same day) if telecopied before 5:00 p.m. New York City time, on a Business Day, and otherwise on the next Business
Day, or (iii) one Business Day after being sent to the recipient by reputable overnight courier service (charges prepaid). Such notices, demands, requests, consents and other communications shall be sent to the following Persons at the following
addresses: 
  

	 	(i)	if to the Company, to: 

  
 PaeTec Corp. 
 One Northern Concourse

 North Syracuse, NY 13212 
 Attention: Daniel J. Venuti 
 Facsimile: (315) 454-0690 
  

 26 

 with a copy (which shall not constitute notice) to: 
  
 Hogan & Hartson L.L.P. 
 Columbia Square 
 555 Thirteenth St., N.W.

 Washington, D.C. 20004-1109 
 Attention: Charles E. Sieving 
 Facsimile: (202) 637-5910 
  

	 	(ii)	if to the MDCP Group Stockholders, to the MDCP Representative at: 

  
 c/o Madison Dearborn Capital Partners 
 Three
First National Plaza, Suite 3800 
 Chicago, Illinois 60670 

			
	Attention:	  	James N. Perry, Jr.
	 	  	Paul Finnegan
	Facsimile:	  	(312) 895-1001

  
 with a copy (which
shall not constitute notice) to: 
  
 Kirkland & Ellis

 200 East Randolph Drive 
 Chicago, IL 60601 

			
	Attention:	  	Jeffrey Seifman
	Facsimile:	  	(312) 861-2200

  

	 	(iii)	if to the Blackstone Group Stockholders, to the Blackstone Representative at: 

  

c/o The Blackstone Group 
 345 Park Avenue

 New York, New York 10154 

			
	Attention:	  	Lawrence H. Guffey
	 	  	Michael S. Chae
	Facsimile:	  	(212) 583-5722

  
 with a copy (which
shall not constitute notice) to: 
  
 Simpson Thacher &
Bartlett 
 425 Lexington Ave. 
 New York, New York 10017-3954 

			
	Attention:	  	Wilson Neely
	Facsimile:	  	(212) 455-2502

  

	 	(iv)	if to CIT, to: 

  
 CIT Lending Services Corporation 
 1 CIT Drive

  

 27 

 Livingston, NJ 07039 
 Attention: Legal Counsel, Communications, and Media Finance Group 
 Facsimile: (973) 422-5822

  
 with a copy (which shall not constitute notice) to:

  
 Attention: Joe Junda, Communications and Media Finance Group

 Facsimile: (973) 535-1816 
  
 or to such other address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party. Notice to any other
Series A Stockholders shall be addressed to such Series A Stockholder at the address set forth for such Purchaser on the Schedule of Purchasers attached to the Equity Purchase Agreement or at such other address and/or to the attention of such
other Person as such Series A Stockholder may designate by written notice to the Company. 
  
 6.8. Business Days. If any time period for giving notice or taking action hereunder expires on a day which is not a Business Day, the time period shall automatically be extended to the Business Day immediately
following such day. 
  
 6.9. Amendments; Waivers. The
provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented without the written consent thereto of the Company, the Blackstone Group Representative and the MDCP Representative. Any written
consent to any such amendment, modification or supplement given by (i) the Blackstone Group Representative shall be binding upon all of the Blackstone Group Stockholders, (ii) the MDCP Representative shall be binding upon all of the MDCP Group
Stockholders, and (iii) the Blackstone Group Representative and the MDCP Representative shall be binding upon all of the Series A Stockholders. Each party hereto may waive any of such party’s rights hereunder or lack of performance by another
party hereto, but any such waiver shall not be effective with respect to any other party hereto that does not consent to such waiver, provided that a waiver by (i) the Blackstone Group Representative shall be binding upon all of the Blackstone Group
Stockholders, (ii) the MDCP Representative shall be binding upon all of the MDCP Group Stockholders and (iii) the Blackstone Group Representative and the MDCP Representative shall be binding upon all of the Series A Stockholders. Notwithstanding the
foregoing, if any such amendment, modification, supplement or waiver would materially adversely affect any Series A Stockholder relative to the Series A Stockholders voting in favor of such amendment, modification, supplement or waiver, such
amendment, modification, supplement or waiver shall also require the written consent of a majority of the Series A Stockholders so adversely affected. 
  
 6.10. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of
more than one party, but all of which taken together shall constitute one and the same Agreement. 
  

 28 

 6.11. Descriptive Headings; Interpretation; No Strict Construction. The descriptive headings of
this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement. Whenever required by context, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and
the singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in
accordance with the terms thereof and, if applicable, hereof. The use of the words “include” or “including” in this Agreement shall be by way of example rather than by limitation. The parties to this Agreement have participated
jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.  
  
 6.12. Governing Law. Except to the extent that the Delaware General Corporation Law shall, by its terms, apply to the subject matter of this
Agreement, this Agreement shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to the provisions thereof relating to conflicts of law). 
  
 6.13. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but if any provision of this Agreement is held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not render
invalid or unenforceable any other provision of this Agreement. 
  
 6.14. Delivery by Facsimile and Electronic Means. This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any
amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine, electronic mail or other electronic means, shall be treated in all manner and respects as an original agreement or instrument and shall be considered
to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall reexecute original forms
thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine, electronic mail or other electronic means to deliver a signature or the fact that any signature or
agreement or instrument was transmitted or communicated through the use of a facsimile machine, electronic mail or other electronic means as a defense to the formation or enforceability of a contract, and each such party forever waives any such
defense. 
  
 6.15. Acknowledgement. The parties acknowledge
that the consummation of the IPO remains subject to significant conditions and that this Agreement does not represent a commitment by any party hereto or by the Company or any other Person to consummate, or to use any level of efforts to consummate,
the IPO. The Company may determine in its sole discretion not to pursue the IPO and, in such 

  

 29 

 
event, no party hereto shall incur any liability to any other party hereto as a result of such determination or the non-consummation of the IPO. 

 
 6.16. Restrictive Legends. Each certificate representing any of the
Additional Securities shall bear legends substantially in the following form: 
  
 THE CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR SERIES OF CAPITAL STOCK. THE CORPORATION SHALL FURNISH TO ANY HOLDER UPON REQUEST AND WITHOUT CHARGE THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE,
PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS OF EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED BY THE CORPORATION SO FAR
AS THEY HAVE BEEN FIXED AND DETERMINED AND OF THE AUTHORITY OF THE BOARD OF DIRECTORS TO FIX AND DETERMINE THE DESIGNATIONS, VOTING RIGHTS, PREFERENCES, LIMITATIONS AND SPECIAL RIGHTS OF THE CLASSES AND SERIES OF SECURITIES OF THE CORPORATION.

  
 THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE
SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A
TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE CORPORATION RESERVES THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE WITH THE FOREGOING
RESTRICTIONS. 
  
 The legend set forth immediately above and any
applicable stop transfer orders shall be removed, and the Company shall issue certificates without such legend, with respect to any of such securities with respect to which the Company has received an opinion from counsel to the applicable holder,
in form and substance and from counsel reasonably satisfactory to the Company, to the effect that the subsequent transfer or other disposition of such securities shall not require registration under the Securities Act. The Company, at its
discretion, may cause a stop transfer order to be placed with 

  

 30 

 
its transfer agent with respect to the securities represented by certificates that include the legend set forth immediately above. 
  
 6.17 Several Obligations. The rights and obligations of each Series A
Stockholder under the Agreement are several and not joint with the rights and obligations of any other Series A Stockholder, and no Series A Stockholder shall be entitled to the rights hereunder, or responsible for the performance of the obligations
hereunder, of any other Series A Stockholder. 
  
 [signature pages follow] 
  

 31 

 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Series A Stockholder
Agreement as of the date first above written. 
  

			
	PAETEC CORP.
		
	By:	 	/s/    ARUNAS A.
CHESONIS        
	Its:	 	Chairman, Pres. & CEO
	
	MDCP:
	
	 MADISON DEARBORN CAPITAL
 PARTNERS
III, L.P.

		
	By:	 	 Madison Dearborn Partners III, L.P.

	Its:	 	 General Partner

		
	By:	 	 Madison Dearborn Partners, LLC

	Its:	 	 General Partner

		
	By:	 	/s/
	Its:	 	Managing Director
	
	 MADISON DEARBORN SPECIAL
 EQUITY
III, L.P.

		
	By:	 	 Madison Dearborn Partners III, L.P.

	Its:	 	 General Partner

		
	By:	 	 Madison Dearborn Partners, LLC

	Its:	 	 General Partner

		
	By:	 	/s/
	Its:	 	Managing Director
	
	SPECIAL ADVISORS FUND I, LLC
		
	By:	 	 Madison Dearborn Partners III, L.P.

	Its:	 	 Manager

	By:	 	 Madison Dearborn Partners, LLC

	Its:	 	 General Partner

		
	By:	 	/s/
	Its:	 	Managing Director

  

 32 

			
	BLACKSTONE GROUP STOCKHOLDERS:
	
	BLACKSTONE CCC CAPITAL PARTNERS L.P.
	
	 By: Blackstone Management Associates III
 L.L.C.

		
	By:	 	/s/    MICHAEL CHAE        
	Name:	 	Michael Chae
	Title:	 	Member
	
	BLACKSTONE CCC OFFSHORE CAPITAL PARTNERS L.P.
	
	By: Blackstone Management Associates III L.L.C.
		
	By:	 	/s/    MICHAEL CHAE        
	Name:	 	Michael Chae
	Title:	 	Member
	
	BLACKSTONE FAMILY INVESTMENT PARTNERSHIP III L.P.
	
	By: Blackstone Management Associates III L.L.C.
		
	By:	 	/s/    MICHAEL CHAE        
	Name:	 	Michael Chae
	Title:	 	Member

  

 33 

			
	OTHER INVESTOR STOCKHOLDERS:
	
	 CIT LENDING SERVICES
 CORPORATION
(formerly known as
 Newcourt Commercial Finance Corp.)

		
	By:	 	/s/    JOSEPH JUNDA        
	Its:	 	Vice President
	
	CARAVELLE INVESTMENT FUND, L.L.C.
		
	By:	 	 Trimuran Advisors, L.L.C.

	Its:	 	 Investment Manager and Attorney-in-Fact

		
	By:	 	/s/
	Its:	 	Managing Director
	
	UNIONBANCAL EQUITIES, INC.
		
	By:	 	/s/    JEAN PIERRE
KNIGHT                /s/              
	Its:	 	Sr. Vice President
	
	 ARES LEVERAGED INVESTMENT
 FUND,
L.P.

		
	By:	 	 ARES Management, L.P.

	Its:	 	 General Partner

		
	By:	 	/s/
	Its:	 	Vice President
	
	 ARES LEVERAGED INVESTMENT
 FUND II,
L.P.

		
	By:	 	 ARES Management II, L.P.

	Its:	 	 General Partner

		
	By:	 	/s/
	Its:	 	Vice President
	
	 GE CAPITAL EQUITY
 INVESTMENTS,
INC.

		
	By:	 	/s/    GREGORY J.
JANIA        
	Its:	 	Authorized Signatory
	 	 	Gregory J. Jania

  

 34 

  
 SCHEDULE 1

  

			
	 Series A Stockholders

	  	Shares of Series A
Preferred Stock

	 Ares Leveraged Investment Fund II, L.P.
 1999 Avenue of the Stars, 39th Floor
 Los Angeles, CA 90071
	  	2,500
		
	 Ares Leveraged Investment Fund, L.P.
 1999 Avenue of the Stars, 39th Floor
 Los Angeles, CA 90071
	  	2,500
		
	 Blackstone CCC Capital Partners L.P.
 345 Park Avenue
 New York, NY 10154
	  	39,859.10
		
	 Blackstone CCC Offshore Capital Partners L.P.
 345 Park Avenue
 New York, NY 10154
	  	7,140.90
		
	 Blackstone Family Investment Partnership III, L.P.
 345 Park Avenue
 New York, NY 10154
	  	3,000
		
	 CIT Lending Services Corporation,
 f/k/a Newcourt Commercial Finance Corporation
 1 CIT Drive, #2108A
 Livingston, NJ 07039
	  	3,000
		
	 GE Capital Equity Investments, Inc.
 GE Commercial Finance
 500 West Monroe, Floor 16
 Chicago, IL 60661-3671
	  	1,000
		
	 Madison Dearborn Capital Partners III, L.P.
 Three First National Plaza
 Suite 3800
 Chicago, IL 60602
	  	68,332.72
		
	 Madison Dearborn Special Equity III, L.P.
 Three First National Plaza
 Suite 3800
 Chicago, IL 60602
	  	1,517.28
		
	 Sigler & Co., Trustee for Caravelle Investment Fund, LLC
 622 Third Avenue, 35th Floor
 New York, NY 10017
	  	2,000
		
	 Special Advisors Fund I, LLC
 Three First National Plaza
 Suite 3800
 Chicago, IL 60602
	  	150
		
	 UnionBanCal Equities, Inc.
 445 South Figueroa
 Los Angeles, CA 90071
	  	3,000
	 	  	

	 Totals
	  	134,000
	 	  	

  

 35 

  
 SCHEDULE 2

  
 Registration Rights Subject to Waiver

  

	1.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among Daniel J. Venuti, PaeTec Corp. (the “Company”), PaeTec Communications, Inc. (the
“Subsidiary”) and Arunas A. Chesonis (“Chesonis”). 

  

	2.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among John Baron, the Company, the Subsidiary and Chesonis. 

  

	3.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among Richard J. Padulo, the Company, the Subsidiary and Chesonis. 

  

	4.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among Richard E. Ottalagana, the Company, the Subsidiary and Chesonis. 

  

	5.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among Edward J. Butler, Jr., the Company, the Subsidiary and Chesonis. 

  

	6.	Stock Rights Agreement, dated July 17, 1998, as amended, among Joseph D. Ambersley, the Company, the Subsidiary and Chesonis. 

  

	7.	Stock Rights Agreement, dated as of August 13, 1998, as amended, among Timothy J. Bancroft, the Company, the Subsidiary and Chesonis. 

  

	8.	Stock Rights Agreement, dated as of July 17, 1998, as amended, among Bradford M. Bono, the Company, the Subsidiary and Chesonis. 

  

	9.	Letter dated September 30, 1998 and Statement of Registration Rights addressed to the following investors in Company’s $10,000,000 private offering: 

 
 Bradford M. Bono 
  
 Richard E. Ottalagana 
  
 Daniel J. Venuti 
  
 Joseph D. Ambersley 
  

 36 

 John Baron 
  
 Edward J. Butler, Jr. 
  
 Richard J. Padulo 
  
 Timothy J. Bancroft 
  
 Katherine A. Chapman 
  
 Allkarim Somji 
  
 David Vaun Crumly 
  
 James N. Perry, Jr., Trustee of James N. Perry, Jr. 
  
 Jack Markell 
  
 JNP 1995 Trust 
  
 James H. Kirby 
  
 Woodcliff Partners, an Illinois General Partnership 
  
 Emile Karafiol 
  
 Paul J. Finnegan 
  
 PJF 1995 Trust by Mary M. Finnegan, Trustee 
  
 Kent S. Charugundla 
  
 Raymond T. Saucke 
  
 David R. Ferris 
  
 Nicholas Gentile 
  
 The Allen Group, A Partnership 
  
 Alan A. Edelstein 
  
 Alex F. Ferrini, Jr. and Karen F. Ferrini 
  
 Lewis Hay IV 
  
  

 37 

 Richard DeRose 
  

David S. Hunt 
  
 Kingdom Investments, Limited 
  
 Lyda Hunt-Herbert Trusts-Douglas Herbert Hunt 
  
 Lyda Hunt-Herbert Trusts-Bruce William Hunt 
  
 Barbara Hunt Crow 
  
 Lyda Hunt Allred 
  
 Noble Nash 
  
 Samer Tawfik 
  
 Eric Adolf Ruhle, Jr. 
  
 Gregory Spanellis 
  
 Larry V. Boyer 
  
 The Christopher E. Edgecomb Living Trust Dated April 25, 1998 
  
 STAR Telecommunications, Inc. 
  

	10.	Stock Purchase Agreement, dated as of November 16, 1998, as amended, between the Company and CIT Lending Services Corporation. 

  

	11.	Stock Purchase Agreement, dated as of August 13, 1998, as amended, between the Company and Christopher E. Edgecomb, Trustee of the Christopher E. Edgecomb Living Trust dated April
25, 1998. 

  

	12.	Stock Purchase Agreement, dated as of August 20, 1998, as amended, between the Company and Jeffrey P. Sudikoff. 

  

	13.	Stock Rights Agreement, dated as of October 30, 1998, as amended, among Katherine A. Chapman, the Company, the Subsidiary and Chesonis. 

  

	14.	Amended and Restated Registration Rights Agreement, dated as of February 4, 2000, among the Company and the other parties named therein. 

  

 38 

	15.	Stock Purchase Agreement, dated as of July 20, 1998, among Algimantas K. Chesonis, Chesonis, the Company and the Subsidiary. 

  

	16.	Stock Purchase Agreement, dated as of July 17, 1998, as amended, among Chesonis, the Company and the Subsidiary. 

  

 39 

  
 Exhibit A

  
 Written Consent of Stockholders 
  
 Omitted 
  

 40 

  
 Exhibit B

  
 Campuslink Stock Purchase Agreement 

 
 See Exhibit 10.12 to 
 Registration Statement on Form S-1 
  

 41 

  
 Exhibit C

  
 Initial Investors’ Stock Purchase Agreement

  
 See Exhibit 10.13 to 
 Registration Statement on Form S-1 
  

 42 

  
 Exhibit D

  
 Founding Stockholders’ Agreement

  
 See Exhibit 10.5 to 
 Registration Statement on Form S-1 
  

 43 

  
 Exhibit E

  
 Termination Agreement to CCS Group
Stockholders’ Agreement 
  
 Omitted 
  

 44 

  
 Exhibit F-1

  
 Letter Agreement with Pacific Capital Group, Inc.

  
 See Exhibit 10.15.1 to 
 Registration Statement on Form S-1 
  

 45 

  
 Exhibit F-2

  
 Letter Agreement with Kline Hawkes & Co.

  
 See Exhibit 10.15.2 to 
 Registration Statement on Form S-1 
  

 46 

  
 Exhibit G

  
 Amendment No. 1 to Third Amended and Restated Loan
and 
 Security Agreement and to Second Amended and Restated Guaranty 
  
 See Exhibit 10.1.3 to 
 Registration Statement on Form S-1 
  

 47EXHIBIT 10.15.1

 Exhibit 10.15.1 
  
 PERSONAL AND CONFIDENTIAL 
  
 April 22, 2005 
  
 PaeTec Corp. 
 One PAETEC Plaza 
 600 Willowbrook Office Park 
 Fairport, New York 14450 
  

			
	Attention:	  	Mr. Arunas A. Chesonis
	 	  	Chairman and Chief Executive Officer

  
 Dear Arunas: 
  
 This letter confirms our agreement that Pacific Capital Group Inc. will act
as non-exclusive financial advisor to PaeTec Corp. (“you” or the “Company”) in connection with (1) a possible equity recapitalization of the Company related to a contemplated initial public offering of your common
stock (such recapitalization herein referred to collectively as the “Equity Transactions”) and (2) a $40.0 million second lien junior secured credit facility or amendment and restatement of the Company’s existing first lien
senior secured credit facility (herein referred to collectively as the “Debt Transactions”). 
  
 Services. During the term of our engagement, we will advise and assist you in connection with the planning, execution and closing of the Equity
Transactions and of the Debt Transactions. Included in these services are assistance with structuring and negotiating the Equity Transactions and Debt Transactions. 
  
 Except as required by applicable law, we shall keep confidential all non-public information provided to us by or on behalf
of the Company, and shall not disclose such information to any third party, other than to our employees, affiliates, agents and advisors that we determine have a need to know in order for us to perform our services hereunder. 
  
 Compensation. In connection with this engagement, you will pay us an
equity success fee, in cash, of $1,500,000, which shall be payable only if the Company consummates the Equity Transactions and a related initial public offering of your common stock. The equity success fee will be due as soon as
reasonably practicable following the consummation of the initial public offering, but in no event more than three business days following the date on which the initial public offering shall have been consummated. The payment of such equity success
fee will 

  

 1 

 PaeTec Corp. 
 April
22, 2005 
  

 
represent the sole compensation payable to us for the Equity Transactions services rendered hereunder. Our fee will not be reduced by any obligation that you
may have to any other advisor or any underwriter. 
  
 In
connection with this engagement, you will pay us a debt success fee related to the Debt Transactions in cash, of $1,500,000, which shall be payable only if the Company consummates the initial public offering of your common
stock. The debt success fee will be due as soon as reasonably practicable following the consummation of the initial public offering, but in no event more than three business days following the date on which the initial public offering shall have
been consummated (it being understood that any Debt Transaction will be consummated prior to or substantially concurrently with the initial public offering). The payment of such debt success fee will represent the sole compensation payable to us for
the Debt Transaction services rendered hereunder. Our fee will not be reduced by any obligation that you may have to any other advisor or any underwriter. 
  
 Reimbursement. We will be solely responsible for our reasonable out-of-pocket costs and expenses incurred in connection with this engagement,
including travel, reproduction and similar expenses, as well as the fees and expenses of legal counsel and any other outside professionals retained by us, whether or not the Equity Transactions or Debt Transactions are consummated; provided,
however, that we will not be required to incur out-of-pocket costs and expenses in excess of $20,000 in connection with our rendering of services hereunder. 
  
 Term. The term of our engagement will begin on the date hereof and shall terminate on the earlier of (i) December 31, 2005, if a definitive
purchase agreement with respect to an initial public offering of your common stock has not become effective on or prior to such date, either upon written notice from us to you or upon written notice from you to us, or (ii) the closing of the Equity
Transactions. We and the Company also may terminate our engagement at any time by mutual written agreement. The cash equity and debt success fees will be payable only upon the closing of the Equity Transactions at any time prior to the termination
of our engagement. 
  
 Indemnification. Because we will be
acting on your behalf, you will indemnify us and related persons according to the indemnification provisions in Annex A. Your obligations in Annex A will remain operative regardless of any termination or completion of our services
hereunder. 
  
 Miscellaneous. We will provide our financial
advisory services exclusively for the information of your Board of Directors, committees of the board and senior management, who will make all decisions regarding whether and how to pursue the Equity Transactions or Debt Transactions. 
  
 This letter agreement contains our entire agreement concerning the subject
matter hereof and supersedes any prior understandings and agreements. 
  

 2 

 PaeTec Corp. 
 April
22, 2005 
  

 This letter agreement is made and will be construed under and in accordance with the laws of the
State of New York (without reference to any principle of the conflict of laws). 
  
 Any waiver of any right or obligation hereunder must be in writing signed by the party against whom such waiver is sought to be enforced. Any amendment hereto must be in writing signed by you and us. 
  
 [signature page follows] 
  

 3 

 PaeTec Corp. 
 April
22, 2005 
  

 After reviewing this letter agreement, please confirm that it is in accordance with your
understanding by signing and returning to us the enclosed copy. 
  
 Very truly
yours, 
  

			
	 PACIFIC CAPITAL GROUP INC.

		
	By:	 	/s/    GREGG W. RITCHIE        

			
	 Printed Name:
	 	Gregg W. Ritchie                    

			
	 Title:
	 	Chief Financial Officer

  
 Accepted and Agreed as of the date set
forth above: 
  

			
	 PAETEC CORP.

		
	By:	 	/s/    ARUNAS A.
CHESONIS        
	 	 	Arunas A. Chesonis
	 	 	Chairman and Chief Executive Officer

  

 4 

 Annex A 
  
 The Company will indemnify and hold harmless Pacific Capital Group, Inc. (“PCG”), and its affiliates, partners, directors, officers, agents
and employees (each, an “Indemnified Person”), from and against any losses, claims, damages, liabilities or expenses (including actions, claims or proceedings in respect thereof (collectively, “Proceedings”) brought by or against
any person, including stockholders of the Company (collectively, “Losses”) arising out of or in connection with advice or services rendered or to be rendered by any Indemnified Person pursuant to the letter agreement; provided, however,
that the Company will not be obligated to indemnify for any Losses of any Indemnified Person that are determined by a court of competent jurisdiction in a final judgment not subject to appeal to have resulted from the bad faith, gross negligence or
willful misconduct of such Indemnified Person. The Company agrees that in no event will PCG be liable or obligated in any manner for any consequential, exemplary or punitive damages or lost profits arising out of the letter agreement or the services
provided thereunder, and the Company agrees not to seek or claim any such damages or profits in any circumstance. 
  
 The Company’s indemnity obligations hereunder shall be in addition to any liability that it may otherwise have, and shall inure to the benefit of
any successors, assigns, heirs and representatives of any Indemnified Person. The provisions of this Annex A shall survive any termination or other expiration of the letter agreement, the consummation of any transaction contemplated thereby or the
other completion of PCG’s services with respect thereto.

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