Document:

Exhibit 4.8.1

 Exhibit 4.8.1 
 PAETEC HOLDING CORP. 
 2011 AGENT INCENTIVE PLAN 

Section 1     Introduction 
 Employee participation in ownership through equity awards is a key element of the business plan of PAETEC Holding Corp. (“PAETEC” or the “Company”). PAETEC’s authorized
independent sales agents (the “agents”) are also an important part of PAETEC’s marketing strategy. The Company wants to offer a means by which agents who help the Company succeed can share in its success along with its employees and
stockholders. Accordingly, the Company’s Board of Directors (the “Board”) has created this 2011 Agent Incentive Plan (the “Plan”). 
 Under the Plan, agents will be granted warrants (the “Warrants”) which, upon vesting, will entitle them to purchase shares of the common stock of the Company (the “Warrant
Shares”)1 The Exercise Price will be set at the time
the Warrants are granted by the Company based on the Fair Market Value (as defined below) of PAETEC’s common stock, par value $0.01 per share (the “Common Stock”), at such time. Agents who receive Warrants will then have the benefit
of any subsequent increases in the price of the shares over the Exercise Price of the Warrants. In this way, agents who consistently generate significant monthly revenues for PAETEC are rewarded with the option to invest in the Company upon exercise
of the Warrants and to share in future increases in value of the Company. Each Warrant shall represent the right to purchase one share of Common Stock. 
 The Warrants will only be exercisable in compliance with federal and state securities laws. The ability to exercise the Warrants (also referred to as “vesting”) will also be dependent on the
achievement of targeted sales volumes for PAETEC products and services and the maintenance of such revenues over a period of time thereafter. The right to purchase the Warrant Shares will vest over a period of up to two years from the month of
grant, depending on the continued realization of specified sales revenues for the Company’s products and services from customers solicited through the agent’s direct efforts. 

The Company has set aside a total of 600,000 shares of Common Stock issuable upon exercise of the Warrants under the Plan. Once Warrants
have been granted with respect to all 600,000 shares, no additional Warrants will be granted under the Plan unless (i) the Company decides, in its sole discretion, to increase the number of shares available under the Plan, or (ii) shares
of Common Stock issuable upon exercise of Warrants previously granted under the Plan become available again for issuance upon the termination by expiration, forfeiture, cancellation or otherwise of such previously granted Warrants without the
issuance of shares of Common Stock pursuant to such Warrants. 
  

	1 	 A warrant is similar to an option; it is a legal right to purchase stock at a specified price per share, which is referred to as the “Exercise
Price.” 

  
 1 

 Section 2     Grant and Exercise Price 

Whether Warrants will be granted to an agent, the timing of the grant and the number of Warrant Shares subject to Warrants granted to an
agent shall be determined by the Company in its sole discretion. In the discretion of the Company, an agent may be granted Warrants for 10,000 or 20,000 Warrant Shares. 
 The price for purchasing the Warrant Shares (in other words, the Exercise Price) will be the Fair Market Value of the Common Stock as of the date the Warrants are granted (the “Grant Date”).
“Fair Market Value” means the value of a share of Common Stock, determined as follows: if on the Grant Date or other determination date the Common Stock is listed on an established national or regional stock exchange, including The NASDAQ
Stock Market LLC, or is publicly traded on an established securities market, the Fair Market Value of a share of Common Stock shall be the closing price of the Common Stock on such exchange or in such market (if there is more than one such exchange
or market the Board shall determine the appropriate exchange or market) on the Grant Date or such other determination date (or if there is no such reported closing price, the Fair Market Value shall be the mean between the high and low sale prices
on such trading day) or, if no sale of Common Stock is reported for such trading day, on the next preceding day on which any sale shall have been reported. If the Common Stock is not listed on such an exchange or traded on such a market, Fair Market
Value shall be the value of the Common Stock as determined by the Board or a duly authorized committee thereof in good faith. 

An agent holding or exercising a Warrant shall have none of the rights of a stockholder (for example, the right to receive cash or
dividend payments or distributions attributable to the subject shares of Common Stock or to direct the voting of the subject shares of Common Stock) until the shares of Common Stock covered thereby are fully paid and issued to such agent. Except as
set forth in Section 8 hereof, no adjustment shall be made for dividends, distributions or other rights paid or payable on the Common Stock for which the record date is prior to the date of such issuance. 

The form of the Warrant Certificate is attached as Exhibit A. 
 Section 3     Exercise of Warrants and Payment for Warrant Shares 
 Agents will pay nothing at the time the Warrants are issued to them. In fact, no payment is required until the agent decides to exercise its Warrants. At that point, the agent either will have to
(i) pay the Exercise Price in cash for the Warrant Shares it elects to buy, or (ii) effect a “cashless exercise” as described below. 
 Warrants that are vested and thus exercisable may be exercised by the agent’s delivery to the Company of written notice of exercise on any business day, at the Company’s principal office, on the
form specified by the Company. Such notice shall specify the number of shares of Common Stock with respect to which the Warrants are being exercised and shall be accompanied by (i) if the Exercise Price is being paid in cash, payment in full of
the Exercise Price of the Warrant Shares for which the Warrants are being exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to an award, and

  
 2 

 
(ii) the Warrant Certificate. The minimum number of shares of Common Stock with respect to which Warrants may be exercised at any time shall be the lesser of (x) 100 shares or such
lesser number set forth in the applicable Warrant Certificate and (y) the maximum number of shares available for purchase under the Warrant Certificate at the time of exercise. 

Alternatively, the Company may allow a “cashless exercise.” The “cashless exercise” alternative
in essence enables the agent to use the appreciation, if any, in the value of PAETEC Common Stock over the Exercise Price, rather than the agent’s own funds, to pay for the Warrant Shares. For example, assume the agent is eligible to purchase
10,000 Warrant Shares at an Exercise Price of $2.00 per share. Further assume that the market price of the shares at the time of exercise has increased to $4.00 per share, reflecting appreciation of $2.00 per share.2 The agent could either purchase 5,000 shares by paying $10,000 in
cash, or it could acquire 5,000 shares through a “cashless exercise” by authorizing the Company to cancel the Warrants with respect to 5,000 shares in addition to exercising the Warrants with respect to the remaining 5,000 shares. In
effect, the appreciation in the value of the 5,000 shares subject to the Warrants to be cancelled will be used to purchase 5,000 Warrant Shares. By using the cashless exercise alternative, the agent foregoes the opportunity to purchase a larger
number of shares for the privilege of not having to invest its own funds.3 The Company may require the agent to make a cash payment to the Company in the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect
to an award, or the Company may, in its sole discretion, make an adjustment to the number of Warrant Shares delivered pursuant to the “cashless exercise” formula to account for any such amount. 

Section 4    Effective Registration Statement 
 In order that agents holding Warrants will have sufficient information about the Company and the Common Stock to make an informed decision about investing in Warrant Shares, and will be able to sell in a
public market any Warrant Shares they elect to purchase through the exercise of the Warrants, the Warrants will be exercisable only to the extent that PAETEC has on file with the Securities and Exchange Commission a registration statement under the
Securities Act of 1933 which is effective and current at the time of the exercise and which registers the offering and sale of Warrant Shares upon exercise of the Warrants. The registration statement will also register the offering and issuance of
the Warrants under the Plan. 
 Section 5    Vesting 

Subject to the securities laws matters previously described, an agent’s ability to exercise the Warrants and purchase Warrant Shares
depends on the agent’s achievement and maintenance of specified new Monthly Commissionable Revenue generated from the sale of the Company’s commissionable products and services. For purposes of the Plan, new “Monthly Commissionable
Revenue” means the new monthly recurring and usage revenue generated from 
  

	2 	 This example is for illustration purposes only. There is no guarantee that the PAETEC Common Stock will increase in value over the Exercise Price.

	3 	 See the attached form of Warrant Certificate for the mechanism for a cashless exercise.

  
 3 

 
use of the commissionable products by PAETEC customers procured by the agent during a calendar month, after application of any customer adjustments, deductions or credits (including without
limitation Equipment for Service (“EFS”) and Software for Service (“SFS”) bundled and unbundled credits). Monthly Commissionable Revenue is calculated prior to application of any taxes, surcharges, regulatory assessments,
governmental charges (including, without limitation, national access charges (“NAC”), regulatory assessment surcharges (“RAS”), presubscribed interexchange carrier charges (“PIC”), universal service fund fees
(“USF”), service management system (“SMS”) database fees, 800-number fees, or similar fees or charges), federal subscriber line charges (“FSLC”), non-commissionable loop charges which are exclusively for long distance
or data services, equipment charges, feature charges and any one-time or non-recurring fees or charges. Except as hereafter provided, vesting requires that an agent must first achieve new Monthly Commissionable Revenue for the Company at least equal
to the applicable “Revenue Target,” and then maintain new revenue at least equal to such Revenue Target, plus the Monthly Commissionable Revenue amount attributable to the agent as of the Grant Date of the Warrants (the “Baseline
Monthly Commissionable Revenue”), for any subsequent three consecutive calendar month period ending no later than the end of the twenty-fourth month following the calendar month in which the Warrants were granted (the “Final Month”).
The Warrant Certificate evidencing the Warrants will specify one or more Revenue Targets. The maximum number of Warrant Shares that the agent may purchase pursuant to the Warrants granted to the agent at each Revenue Target level is as follows:

  

			
	 Maximum Number of

Warrant Shares
	  	 New Monthly Commissionable

            Revenue
Target            

	 10,000*
	  	15% of the Baseline Monthly Commissionable Revenue (the “Initial Target”); provided that the Initial Target shall in no event be less than $30,000
		
	 20,000**
	  	Sum of (1) the Initial Target plus (2) 15% of sum of (A) the Baseline Monthly Commissionable Revenue plus (B) the Initial Target (such total sum, the “Second Target”);
provided that the Second Target shall in no event be less than the sum of the Initial Target plus $30,000

  

	*	No partial vesting 

	**	Partial vesting if the Initial Target levels are sustained as described in Example 2 below. 

Upon vesting of Warrants, the agent may purchase up to 100% of the maximum number of Warrant Shares provided for in such Warrants for the
applicable Revenue Target. 
 If an agent fails either to achieve the applicable Revenue Target or subsequently to maintain the
revenue level in the manner described above during the period ending no later than the end of the Final Month, the Warrants shall become null and void and the agent shall forfeit the right to purchase any Warrant Shares; provided, however,
that Warrants to purchase 20,000 

  
 4 

 
Warrant Shares shall vest with respect to 10,000 of the Warrant Shares if the agent attains and maintains at least the Initial Target as described in Example 2 below. Upon any forfeiture by the
agent of the right to purchase any Warrant Shares, such Warrant Shares shall be available again for grant under the Plan in accordance with Section 9. 
 Unvested Warrants shall also be forfeited if the agent’s status as an appointed sales agent of the Company is terminated for any reason. Nothing herein shall require the Company to continue doing
business with the agent or to otherwise limit the Company’s rights under the applicable Agent Agreement. 
 The following
examples further illustrate how the vesting rules work. 
 Example 1: Warrant Shares: 10,000 

Baseline Monthly Commissionable Revenue of Agent: $200,000 

Initial Target: $30,000 
  

	 	1.	24th Calendar Month After Grant—Agent has never generated total monthly commissionable sales revenues greater than or equal to $230,000:

 The right to purchase any Warrant Shares is forfeited and the Warrants become null and void.

  

	 	2.	6th Calendar Month After Grant, revenues for the month equal $230,000; in months 7, 8 or 9 following grant, revenues for a month are less than $230,000:

 Warrants do not vest, and the three month period to maintain at least $230,000 in revenue
starts over. If the agent does not maintain at least $230,000 in revenue for three consecutive months during the period ending no later than the end of the Final Month, the right to purchase any Warrant Shares is forfeited and the Warrants become
null and void. 
  

	 	3.	 6th Calendar Month After Grant, revenues for the month equal $230,000; 15th Calendar Month After Grant, revenues for the month are greater than or equal to $230,000 and were at such levels in
month 13 and month 14: 

Warrants to purchase 10,000 Warrant Shares vest. 

Example 2: Warrant Shares: 20,000 
 Baseline Monthly Commissionable Revenue of Agent: $200,000 

Initial Target: $30,000 
 Second Target: $64,500 
  

	 	1.	24th Calendar Month After Grant—Agent has never generated total monthly commissionable sales revenues greater than or equal to $230,000:

  
 5 

 The right to purchase any Warrant Shares is forfeited and Warrants become
null and void. 
  

	 	2.	 6th Calendar Month After Grant, revenues for the month equal $230,000; 9th Calendar Month After Grant, revenues for the month are less than $230,000: 

 Warrants do not vest, and the three
month period to maintain at least $230,000 in revenue starts over. If the agent does not maintain at least $230,000 in revenue for three consecutive months during the period ending no later than the end of the Final Month, the right to purchase any
Warrant Shares is forfeited and the Warrants become null and void. 
  

	 	3.	 6th Calendar Month After Grant, revenues for the month equal $230,000; 9th Calendar Month After Grant, revenues for the month are greater than or equal to $230,000 and were at such levels in
months 7 and 8: 

Partial Vesting – Right to purchase 10,000 of the 20,000 Warrant Shares vests. The right to purchase the remaining
10,000 Warrant Shares does not vest until the additional incremental revenue of $34,500 is attained and maintained for three consecutive months during the period ending no later than the end of the Final Month. 

 

	 	4.	 12th Calendar Month After Grant, revenues for the month equal $264,500;
15th Calendar Month After Grant, revenues for the month
are greater than or equal to $264,500 and were at such levels in month 13 and 14; 

If #3 above has already occurred, then the Warrants vest with respect to the remaining 10,000 Warrant Shares. If #3 above
has not already occurred, then the Warrants vest with respect to the entire 20,000 Warrant Shares. 
 Example 3: Warrant
Shares: 20,000 
 Baseline Monthly Commissionable Revenue of Agent: $80,000 

Initial Target: $30,000 
 Second Target: $60,000 
  

	1.	24th Calendar Month After Grant—Agent has never generated total monthly commissionable sales revenues greater than or equal to $110,000:

 The right to purchase any Warrant Shares is forfeited and Warrants become null and void.

  

	2.	 6th Calendar Month After Grant, revenues for the month equal $110,000; 9th Calendar Month After Grant, revenues for the month are less than $110,000: 

  
 6 

 Warrants do not vest, and the three month period to maintain at least
$110,000 in revenue starts over. If the agent does not maintain at least $110,000 in revenue for three consecutive months during the period ending no later than the end of the Final Month, the right to purchase any Warrant Shares is forfeited and
the Warrants become null and void. 
 Section 6    Expiration Date 

All vested but unexercised Warrants shall expire ten years after the date of issuance of the Warrants. 

Section 7    Transferability 
 Warrants may not be sold, assigned, transferred, pledged or otherwise disposed of by the holder without the prior written consent of the Company, and any attempted transfer without such prior written
consent shall be null and void. 
 Section 8     Corporate Transactions; Adjustment of Exercise Price and Number of
Shares 
 The Warrants are subject to adjustment from time to time as provided below. 

For purposes of this Section 8, “Corporate Transaction” means any reorganization, merger, consolidation, sale of all or
substantially all of the Company’s assets, or similar transaction. For the purposes of this Section 8, “Cash Transaction” means any Corporate Transaction in which the consideration that the holder of the Warrants would have
received pursuant to such Corporate Transaction if the securities subject to the Warrant had been issued immediately prior to such Corporate Transaction is cash or other property that is not securities. 

If the Company is involved in any Corporate Transaction other than a Cash Transaction, the number and kind of securities issuable upon
exercise of Warrants shall be adjusted so that the holder of the Warrants shall be entitled to receive upon the exercise thereof the number and kind of securities that such holder would have received pursuant to such Corporate Transaction if the
securities subject to such Warrants had been issued immediately prior to the consummation of such Corporate Transaction. In the event that the Company is not the issuer of the securities that such holder would have so received pursuant to such
Corporate Transaction, provision shall be made in writing in connection with such transaction for the assumption of the Plan and all then-outstanding Warrants by the corporation or entity that is the issuer of such securities. From and after any
such assumption, unless the context otherwise requires (as determined by the Board in good faith), references in the Plan and each outstanding Warrant to the “Company,” “PAETEC” or “PAETEC Holding Corp.” shall be deemed
to be references to such issuer, and such references and the other provisions of the Plan and such Warrants shall be interpreted so as to maintain the interests of the holders intended by the Plan as of the date hereof and by each such Warrant as of
its date. Upon each adjustment of the number or kind of securities for which the Warrants are exercisable as provided in this paragraph, the per share Exercise Price payable upon exercise of the Warrants shall be appropriately and proportionately
adjusted, as determined by the Board or the board of directors of such issuer in good faith. 

  
 7 

 In the event of any Cash Transaction, all outstanding but unexercised Warrants shall
terminate immediately prior to the consummation of such Cash Transaction. Any exercise of a Warrant during the 15-day period immediately prior to the consummation of any such Cash Transaction shall be conditioned, at the discretion of the holder of
such Warrant, on the consummation of the Cash Transaction and shall be effective only immediately before such consummation. 

In case the Company shall at any time after a Warrant is issued (i) effect a distribution payable in shares of Common Stock to all
holders of the outstanding Common Stock, (ii) subdivide the outstanding shares of Common Stock, (iii) combine the outstanding shares of Common Stock into a smaller number of shares of Common Stock or (iv) issue any securities of the
Company in a reclassification or recapitalization of the Common Stock, then the number and kind of securities issuable upon exercise of the Warrants (commencing on the record date for such distribution or the effective date of such subdivision,
combination, reclassification or recapitalization) shall be proportionately adjusted so that the holder of the Warrants exercised after such time shall be entitled to receive the aggregate number and kind of securities which, if such Warrants had
been exercised in full immediately prior to such date, the holder would have owned upon such exercise and been entitled to receive by virtue of such distribution, subdivision, combination, reclassification or recapitalization. Such adjustment shall
be made successively whenever any event listed above shall occur. 
 Upon each adjustment of the number or kind of shares of
Common Stock for which the Warrants are exercisable as provided in the paragraph above, the per share Exercise Price payable upon exercise of the Warrants shall be adjusted by multiplying the Exercise Price immediately prior to such adjustment by a
fraction (x) the numerator of which shall be the number of shares of Common Stock covered by the Warrants prior to such adjustment, and (y) the denominator of which shall be the number of shares of Common Stock covered by the Warrants
immediately after such adjustment. 
 Section 9    Availability of Shares for Grant 

Any shares of Common Stock issuable upon the exercise of Warrants which terminate upon the expiration, forfeiture, cancellation or
otherwise of such Warrants without the issuance of such shares of Common Stock shall be available again for grant under the Plan, provided that in no event shall more than a total of 600,000 shares of Common Stock be issuable or issued under
the Plan. 
 Section 10    Amendment 
 The Company reserves the right to amend, modify, suspend or terminate the Plan from time to time provided that no termination, amendment or modification shall have a material adverse effect on the rights
of holders of Warrants that are then outstanding, as finally determined by the Board in good faith. 

Section 11    Miscellaneous 
 Governing Law: The validity and construction of the Plan and the instruments evidencing awards hereunder shall be governed by the laws of the State of New York (without

  
 8 

 
giving effect to the choice of law provisions thereof), other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan and the
instruments evidencing the awards hereunder to the substantive laws of any other jurisdiction. 
 Administration of Plan:
The Board shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan and the instruments evidencing awards hereunder, and shall have full power and authority to take all such other
actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan that the Board deems to be necessary or appropriate to the administration of the Plan or any instrument hereunder. The interpretation
and construction by the Board of any provision of the Plan or any instrument hereunder shall be final, binding and conclusive. As permitted by law, the Board may delegate its authority under the Plan to a member of the Board, a committee of the
Board, or an executive officer of the Company; provided, however, that only the Board or a committee of the Board (including a one-person committee of the Board) may authorize the grant of Warrants to any agent. 

Plan Summary 
  

	•	 	 600,000 shares of Common Stock of PAETEC Holding Corp. have been set aside for the Plan. 

 

	•	 	 Warrants are issued with respect to an amount of Warrant Shares determined by the Company and the Exercise Price is set when the Warrants are granted.

  

	•	 	 Warrants generally vest over a period of up to twenty four months from the month of issuance. 

 

	•	 	 For vesting to occur, an agent must attain the applicable revenue target and maintain such revenue level for three successive calendar month periods.

  

	•	 	 Any vested but unexercised Warrant will expire ten years after the Warrant is issued. 

  
 9Exhibit 4.8.2

 Exhibit 4.8.2 
                      WARRANTS 
 To Purchase             Shares of Common Stock of 
 PAETEC HOLDING CORP. 
 Dated:
                             
 THIS WARRANT CERTIFICATE CERTIFIES THAT
                             (the “Holder”) is entitled, at any time after the Warrants represented
by this Warrant Certificate become exercisable as provided in Section 2.1, but prior to the Expiration Date (as hereafter defined), to purchase from PAETEC Holding Corp., a Delaware corporation (the “Company”),
                     shares of the Company’s Common Stock (the “Warrant Shares”) at a purchase price of
$             per Warrant Share, all on the terms and conditions set forth in this Warrant Certificate and as set forth in the PAETEC Holding Corp. 2011 Agent Incentive Plan, as amended
from time to time (the “Agent Incentive Plan” or “Plan”), copies of which have been provided to the Holder and which are incorporated herein by reference. In the event any provision of this Warrant Certificate is inconsistent
with the provisions of the Agent Incentive Plan, the terms of the Agent Incentive Plan shall govern. Each Warrant shall represent the right to purchase one share of Common Stock. 

 

	1.	DEFINITIONS 

 As used in this
Warrant Certificate, the following terms, which are not otherwise defined herein, have the meanings set forth below: 

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

“Baseline Monthly Commissionable Revenue” shall mean the Agent’s Monthly Commissionable Revenue as of the Grant Date, as
set forth on Schedule A hereto. 
 “Board of Directors” shall mean the Board of Directors of the Company. 

“Business Day” shall mean any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be
closed in the State of New York. 
 “Commission” shall mean the Securities and Exchange Commission or any successor
federal agency then administering the Securities Act and successor federal securities laws. 

  
 1 

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

“Exercise Price” shall mean the price indicated in the first paragraph of this Warrant Certificate at which a share of Common
Stock may be purchased upon exercise of a Warrant represented by this Warrant Certificate. The Exercise Price may from time to time be adjusted in accordance with Section 4. 

“Expiration Date” shall mean the tenth (10th) anniversary of the date of this Warrant Certificate as set forth on the
cover page of this Warrant Certificate. 
 “Fair Market Value” shall mean the value of a share of Common Stock,
determined as follows: if on the Grant Date or other determination date the Common Stock is listed on an established national or regional stock exchange, including The NASDAQ Stock Market LLC, or is publicly traded on an established securities
market, the Fair Market Value of a share of Common Stock shall be the closing price of the Common Stock on such exchange or in such market (if there is more than one such exchange or market the Board shall determine the appropriate exchange or
market) on the Grant Date or such other determination date (or if there is no such reported closing price, the Fair Market Value shall be the mean between the high and low sale prices on such trading day) or, if no sale of Common Stock is reported
for such trading day, on the next preceding day on which any sale shall have been reported. If the Common Stock is not listed on such an exchange or traded on such a market, Fair Market Value shall be the value of the Common Stock as determined by
the Board or a duly authorized committee thereof in good faith, which determination shall be conclusive on all parties. 

“Final Month” shall mean the twenty-fourth calendar month following the calendar month of the Grant Date. 

“Grant Date” shall mean the Warrant Certificate date set forth on the cover page of this Warrant Certificate, which shall be
the date on which the Board of Directors or an authorized committee of the Board of Directors approves the grant of the Warrants represented by this Warrant Certificate. 
 “Initial Target” shall mean the amount of New Monthly Commissionable Revenue set forth on Schedule A hereto, which shall equal 15% of the Agent’s Baseline Monthly Commissionable Revenue;
provided that the Initial Target shall in no event be less than $30,000. 
 “Monthly Commissionable Revenue”
shall mean means the monthly recurring and usage revenue generated from use of the commissionable products by PAETEC customers procured by an Agent during a calendar month, after application of any customer adjustments, deductions or credits
(including without limitation Equipment for Service (“EFS”) and Software for Service (“SFS”) bundled and unbundled credits). Monthly Commissionable Revenue is calculated prior to application of any taxes, surcharges, regulatory
assessments, governmental charges (including, without limitation, national access charges (“NAC”), regulatory assessment surcharges (“RAS”), presubscribed interexchange carrier charges (“PIC”), universal service fund
fees (“USF”), service management system (“SMS”) database fees, 800-number fees, or similar fees or charges), federal subscriber line charges (“FSLC”), non-commissionable loop charges which are

  
 2 

 
exclusively for long distance or data services, equipment charges, feature charges and any one-time or non-recurring fees or charges. 

“New Monthly Commissionable Revenue” shall mean Monthly Commissionable Revenue in excess of an Agent’s Baseline Monthly
Commissionable Revenue. 
 “Person” shall mean any individual, firm, corporation, partnership, limited liability
company, joint venture, trust or unincorporated organization, government (or agency or political subdivision thereof) or any other entity. 
 “Revenue Target” shall mean, with respect to the vesting of Warrants for any specified number of Warrant Shares as provided in Section 2.1, the amount of New Monthly Commissionable Revenue
set forth opposite such number of Warrant Shares on Schedule A hereto. 
 [[THIS DEFINITION FOR USE ONLY IF WARRANT CERTIFICATE
IS FOR 20,000 WARRANT SHARES] “Second Target” shall mean the amount of New Monthly Commissionable Revenue set forth on Schedule A hereto, which shall equal the sum of (1) the Initial Target plus (2) 15% of the sum of (A) the
Agent’s Baseline Monthly Commissionable Revenue plus (B) the Agent’s Initial Target; provided that the Second Target shall in no event be less than the sum of the Initial Target plus $30,000.] 

“Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at the time. 
 “Warrant” shall mean a
right represented by this Warrant Certificate to purchase one share of Common Stock. 
  

	2.	EXERCISE OF WARRANTS 

 2.1.
Time of Exercise. The Warrants may be exercised if and only if the condition set forth in subsection (a) of this Section 2.1 is satisfied, but then only to the extent such Warrants are vested in accordance with subsection
(b) of this Section 2.1. 
 (a) The Company shall have on file with the Commission a registration statement on an
applicable form under the Securities Act which registers the offering and sale of Warrant Shares upon exercise of Warrants and which shall have been declared effective by the Commission and which shall continue to be effective and shall be current
as of the time of exercise of the Warrants. 
 (b) The Warrants shall be exercisable only to the extent they shall have vested in
accordance with the Plan and as follows: 
  

	 	(1)	 10,000 Warrants representing the right to purchase 10,000 Warrant Shares shall vest as of the last day of the month on which (a) the Agent has, as
an initial step, achieved for a calendar month New Monthly 

  
 3 

	 	 
Commissionable Revenue in an amount equal to or greater than the Initial Target as set forth on Schedule A hereto, and (b) the Agent has maintained New Monthly Commissionable Revenue in an
amount equal to or greater than such Initial Target for any subsequent three consecutive calendar month period ending no later than the end of the Final Month. 

 

	 	(2)	[[THIS PARAGRAPH FOR USE ONLY IF WARRANT CERTIFICATE IS FOR 20,000 WARRANT SHARES] The remaining Warrants representing the right to purchase 10,000 Warrant Shares shall
vest as of the last day of the month on which (a) the Agent has, as an initial step, achieved for a calendar month New Monthly Commissionable Revenue in an amount equal to or greater than the Second Target as set forth on Schedule A hereto, and
(b) the Agent has maintained New Monthly Commissionable Revenue in an amount equal to or greater than such Second Target for any subsequent three consecutive calendar month period ending no later than the end of the Final Month.]

 (c) If the Agent fails to achieve the applicable Revenue Target for New Monthly Commissionable Revenue and then
subsequently maintain the revenue level in the manner described above during the period ending no later than the end of the Final Month, then the Agent shall forfeit the right to purchase the Warrant Shares subject to the Warrants with respect to
which the vesting requirements of Section 2.1(b) have not been satisfied and any such Warrants shall become null and void. Unvested Warrants shall also be forfeited if the Agent’s status as an appointed sales agent of the Company is
terminated for any reason. Nothing herein shall require the Company to continue doing business with the Agent or otherwise to limit the Company’s rights under the applicable Agent Agreement. 

2.2. Manner of Exercise. At any time after the Warrants become exercisable as provided in Section 2.1 until 5:00 p.m., New
York time, on the Expiration Date, Holder may exercise the Warrants by either (a) paying the Exercise Price in cash for the Warrant Shares it elects to buy, or (b) effecting a “cashless exercise” as described below. 

Warrants that are vested and thus exercisable may be exercised by the Agent’s delivery, on any Business Day until the expiration
time set forth above, of a written notice of exercise, in the form attached to this Warrant Certificate as Exhibit A (the “Exercise Notice”). The Exercise Notice should be delivered to the Company’s principal office at One PAETEC
Plaza, 600 Willowbrook Office Park, Fairport, New York 14450, or such other address as the Company may specify. Such notice shall specify the number of shares of Common Stock with respect to which the Warrants are being exercised and must be
accompanied by (i) if the Exercise Price is being paid in cash, payment in full, by certified or bank check payable to the order of the Company, of the Exercise Price of the Warrant Shares for which the Warrants are being exercised plus the
amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold with respect to an award, and (ii) this Warrant Certificate. The minimum number of shares of Common Stock with respect to which
Warrants may be exercised at any time shall be the lesser of (x) 100 shares or such lesser number set forth in the applicable Warrant Certificate and (y) the maximum number of shares available for purchase under the Warrant Certificate at
the time of exercise. 
 Upon receipt of all of these items the Company shall deliver or cause to be delivered to Holder a
certificate or certificates representing the aggregate number of full Warrant Shares 

  
 4 

 
issuable upon such exercise as hereinafter provided (or in the event that the Company elects not to issue certificated stock, such number of uncertificated Warrant Shares shall be registered in
the name of such Holder on the Company’s books and records); provided, however, that in the event that Holder elects to effect a “cashless exercise,” the Holder shall be entitled to receive upon exercise a number of Warrant
Shares, computed as of the date on which the Company received the Exercise Notice together with this Warrant Certificate, determined by the following formula: 
  

							
	 X = Y (A-B)

         A
	  	
				
	 Where
	 	 X
	 	 =
	  	the number of Warrant Shares to be issued to Holder;
				
		 	 Y
	 	 =
	  	the aggregate number of Warrant Shares with respect to which Holder elected to effect a cashless exercise;
				
		 	 A
	 	 =
	  	the Fair Market Value per share of the Common Stock (on the date of such calculation); and
				
		 	 B
	 	 =
	  	the Exercise Price.
		
		 	In lieu of payment of the Exercise Price, the Company shall cancel such number of Warrants which are exercisable for Warrant Shares equal to the difference (rounded up
to the nearest whole number of shares) between Y and X. The Company may require the Holder to make a cash payment to the Company in the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold
with respect to an award, or the Company may, in its sole discretion, make an adjustment to the number of Warrant Shares delivered pursuant to the “cashless exercise” formula to account for any such amount.

The stock certificate or certificates so delivered or, in the event the Company does not issue certificated stock, the uncertificated
shares so issued shall be registered in the name of Holder. The Warrants shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and Holder shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the notice, together with the Exercise Price (if applicable) and this Warrant Certificate, are received by the Company as described above. If the Warrants shall have been exercised in part, the Company
shall, at the time of delivery of the certificate or certificates representing the Warrant Shares (or the direct registration system statement in the event the Company does not issue certificated stock), deliver to Holder a new Warrant Certificate
evidencing Warrants representing the right of Holder to purchase the remaining Warrant Shares, which new Warrant Certificate shall in all other respects be identical to this Warrant Certificate or, in the sole discretion of the Company, appropriate
notation may be made on this Warrant Certificate and the same returned to Holder. 
 2.3. Fractional Shares. The Company
shall not be required to issue a fractional share of Common Stock upon exercise of the Warrants. In lieu of any fraction of a share which Holder would otherwise be entitled to purchase upon exercise, the Company, at its sole discretion, either

  
 5 

 
shall round the fractional share down to the nearest whole share of Common Stock or shall pay cash in an amount equal to the same fraction of the Fair Market Value per share of Common Stock on
the date of exercise. 
 2.4 Expiration Date. Unless extended in writing by the Company in its sole discretion, any
vested but unexercised Warrants shall automatically expire at 5:00 p.m., New York time, on the Expiration Date, and this Warrant Certificate shall be of no further force or effect. 

 

	3.	RESERVATION AND AUTHORIZATION OF COMMON STOCK 

 From and after the date hereof, the Company shall at all times reserve and keep available for issuance upon the exercise of the Warrants such number of its authorized but unissued shares of Common Stock
(or its authorized and issued shares of Common Stock held in treasury) as will be sufficient to permit the exercise in full of the Warrants. All shares of Common Stock which shall be so issuable, when issued upon exercise of the Warrants and payment
therefor in accordance with the terms of the Warrants, shall be duly and validly issued and fully paid and nonassessable, and not subject to preemptive rights. 
  

	4.	ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES. 

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

(a) If the Company is involved in any Corporate Transaction other than a Corporate Transaction of the type described in
Section 4(b), the number and kind of securities issuable upon exercise of Warrants shall be adjusted so that the Holder of the Warrants shall be entitled to receive upon the exercise thereof the number and kind of securities that such Holder
would have received pursuant to such Corporate Transaction if the securities subject to such Warrants had been issued immediately prior to the consummation of such Corporate Transaction. For purposes of this Section 4, “Corporate
Transaction” means any reorganization, merger, consolidation, sale of all or substantially all of the Company’s assets, or similar transaction. In the event that the Company is not the issuer of the securities that such Holder would have
so received pursuant to such Corporate Transaction, provision shall be made in writing in connection with such transaction for the assumption of the Plan and all then-outstanding Warrants by the corporation or entity that is the issuer of such
securities. From and after any such assumption, unless the context otherwise requires (as determined by the Board of Directors in good faith), references in the Plan and each outstanding Warrant to the “Company,” “PAETEC” or
“PAETEC Holding Corp.” shall be deemed to be references to such issuer, and such references and the other provisions of the Plan and such Warrants shall be interpreted so as to maintain the interests of the Holders intended by the Plan as
of the date hereof and by each such Warrant as of its date. Upon each adjustment of the number or kind of securities for which the Warrants are exercisable as provided in this paragraph, the per share Exercise Price payable upon exercise of the
Warrants shall be appropriately and proportionately adjusted, as determined by the Board of Directors or the board of directors of such issuer in good faith. 

  
 6 

 (b) In the event of any Corporate Transaction in which the consideration that the Holder of
the Warrants would have received pursuant to such Corporate Transaction if the securities subject to the Warrant had been issued immediately prior to such Corporate Transaction is cash or other property that is not securities, all outstanding but
unexercised Warrants shall terminate immediately prior to the consummation of such Corporate Transaction. Any exercise of a Warrant during the 15-day period immediately prior to the consummation of any such Corporate Transaction shall be
conditioned, at the discretion of the Holder of such Warrant, on the consummation of the Corporate Transaction and shall be effective only immediately before such consummation. 

(c) In case the Company shall at any time after the date of this Warrant Certificate (i) effect a distribution payable in shares of
Common Stock to all holders of the outstanding Common Stock, (ii) subdivide the outstanding shares of Common Stock, (iii) combine the outstanding shares of Common Stock into a smaller number of shares of Common Stock or (iv) issue any
securities of the Company in a reclassification or recapitalization of the Common Stock, then the number and kind of securities issuable upon exercise of the Warrants (commencing on the record date for such distribution or the effective date of such
subdivision, combination, reclassification or recapitalization) shall be proportionately adjusted so that the Holder of the Warrants exercised after such time shall be entitled to receive the aggregate number and kind of securities which, if such
Warrants had been exercised in full immediately prior to such date, the Holder would have owned upon such exercise and been entitled to receive by virtue of such distribution, subdivision, combination, reclassification or recapitalization. Such
adjustment shall be made successively whenever any event listed above shall occur. 
 (d) Upon each adjustment of the number or
kind of shares of Common Stock for which the Warrants are exercisable as provided in Section 4(c) hereof, the per share Exercise Price payable upon exercise of the Warrants shall be adjusted by multiplying the Exercise Price immediately prior
to such adjustment by a fraction (x) the numerator of which shall be the number of shares of Common Stock covered by the Warrants prior to such adjustment, and (y) the denominator of which shall be the number of shares of Common Stock
covered by the Warrants immediately after such adjustment. 
  

	5.	RESTRICTIONS ON TRANSFER 

Neither this Warrant Certificate nor the rights evidenced hereby may be sold, assigned, transferred, pledged or otherwise disposed of by
Holder without the prior written consent of the Company, and any attempted transfer without such prior written consent shall be void. 
  

	6.	LOSS, THEFT, DESTRUCTION OR MUTILATION 

 Upon receipt by the Company from any Holder of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of this Warrant Certificate and indemnity or
security reasonably satisfactory to the Company and reimbursement to the Company of all reasonable expenses incidental thereto, and in case of mutilation upon surrender and cancellation of the mutilated Warrant Certificate, the Company will execute
and deliver in lieu hereof a new Warrant Certificate of like tenor to such Holder; provided that, in the case of 

  
 7 

 
mutilation, no indemnity or security shall be required if this Warrant Certificate in identifiable form is surrendered to the Company for cancellation. 

 

	7.	LIMITATION OF LIABILITY AND RIGHTS AS STOCKHOLDER 

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

Prior to the exercise of the Warrants and the date of the stock certificate representing the Warrant Shares issuable upon exercise (or,
in the case of uncertificated stock, the registering of such stock on the Company’s books and records), the Holder of this Warrant Certificate, as such, shall not be entitled to any rights of a stockholder of the Company with respect to, or be
deemed for any purpose the holder of, shares for which the Warrants shall be exercisable, including without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any meetings
of stockholders of the Company or other proceedings of the Company, except as provided herein. 
  

	8.	MISCELLANEOUS 

 8.1
Notice. Any notice, demand, request, consent, approval, declaration, delivery or other communication hereunder to be made pursuant to the provisions of this Warrant Certificate shall be sufficiently given or made if in writing and either
delivered in person with receipt acknowledged or sent by registered or certified mail, return receipt requested, postage prepaid, or by a nationally recognized overnight courier or by telecopy and confirmed by telecopy answer back, addressed as
follows: 
 (a) If to any Holder, at its last known address appearing on the books of the Company maintained for such purpose.

 (b) If to the Company at: 
 PAETEC Holding Corp. 
 Attn: General Counsel 

One PAETEC Plaza 
 600 Willowbrook Office Park 
 Fairport, New York 14450 

Telecopy Number: (716) 340-2563 
 or at such other address as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the party entitled to receive such notice. Every
notice, demand, request, consent, approval, declaration, delivery or other communication hereunder shall be deemed to have been duly given or served on the date on which personally delivered, with receipt acknowledged, or telecopied and confirmed by
telecopy 

  
 8 

 
answer back, one (1) Business Day after the same shall have been deposited with a nationally recognized overnight courier or three (3) Business Days after the same shall have been
deposited in the United States mail. 
 8.2 Successors and Permitted Assigns. This Warrant Certificate and the rights
evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. 
 8.3 Amendment. This Warrant Certificate or the Warrants represented hereby may be modified or amended, or the provisions hereof or thereof waived, only with the written consent of the Company and
the Holder. 
 8.4. Severability. Wherever possible, each provision of this Warrant Certificate shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Warrant Certificate shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Warrant Certificate. 

8.5. Headings. The headings used in this Warrant Certificate are for the convenience of reference only and shall not, for any
purpose, be deemed a part of the Warrants. 
 8.6. Governing Law. This Warrant Certificate and the Warrants represented
hereby shall be governed by the laws of the State of New York, without regard to the provisions thereof relating to conflict of laws. 
 IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed as of the date set forth below. 

 

					
	 PAETEC HOLDING CORP.
	 	
			
	 By:
	 	  
	 	
	 Name: Arunas A. Chesonis
	 	
	 Title: President, Chairman and CEO
	 	

					
			
	Date:	 	  
	 	

  
 9 

 SCHEDULE A 
 Name of Agent:
                                         
                                        

Number of Warrant
Shares:                                        
                       

Baseline Monthly Commissionable
Revenue:                                       
                                  

 

			
	 Maximum Number of

Warrant Shares
	  	 New Monthly Commissionable

            Revenue
Target            

	 10,000
	  	$[—] (“Initial Target”)
	 [20,000 ]
	  	[$ [—] (“Second Target”)]

 
  

  
 10 

 EXHIBIT A 
 EXERCISE FORM 
 [To be executed only upon exercise of Warrant] 

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

	
	 ...............................................................

	 (Name of Registered Owner)

	
	 ...............................................................

	 (Signature of Registered Owner)

	
	 ...............................................................

	 (Street Address)

	
	 ...............................................................

	 (City)     (State)         (Zip
Code)

  

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]