Document:

Exhibit 4.6

 Exhibit 4.6 
 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 share, all on the terms and conditions set forth in this
Warrant Certificate and as set forth in the PAETEC Holding Corp. 2009 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. 
  

	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. 
 “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. 
 “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 above at which a share of Common Stock may be
purchased pursuant to this Warrant. The Exercise Price may from time to time be adjusted in accordance with Section 4 hereof. 
 “Existing Monthly Commissionable Revenue” shall mean the Agent’s Monthly Commissionable Revenue as of the Grant Date, as set forth on Schedule A hereto. 
 “Expiration Date” shall mean the tenth (10th) anniversary of the date of this Warrant Certificate as set forth above. 
 “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 highest bid and lowest asked prices or 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, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Common Stock as determined by the Board 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 above, 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. 
 “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”), 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. 
 “New Monthly Commissionable Revenue” shall mean Monthly Commissionable Revenue in excess of an Agent’s Existing Monthly Commissionable
Revenue. 
  

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 “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 any specified number of Warrant Shares as provided in Section 2.1 hereto, the amount of New Monthly Commissionable Revenue set forth opposite such number of Warrant
Shares on Schedule A hereto. 
 “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
each right represented by this Warrant Certificate to purchase Warrant Shares. 
  

	2.	EXERCISE OF WARRANTS 

 2.1. Time of Exercise. The
Warrants may be exercised if and only if the condition set forth in subsection (a) of this Section 2.1 is satisfied, but then only with respect to Warrant Shares 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 shall continue to be effective as of the time of exercise of the Warrants. 
 (b) The Warrants are exercisable only with respect to Warrant Shares which shall have vested in accordance with the Plan and as follows: 
  

	 	(1)	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 Revenue Target at the 10,000 Warrant Share level 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
Revenue 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 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 Revenue Target at the 20,000 Warrant Share level 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 Revenue Target for any subsequent three consecutive calendar month period ending no later than the end of the Final Month.]

  

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 (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 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 to otherwise 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 hereof until 5:00 p.m., New York time,
on the Expiration Date, Holder may exercise the Warrants by either (i) paying the Exercise Price in cash for the Warrant Shares it elects to buy, or (ii) effecting a “cashless exercise” as described below. 
 Warrants that are vested and thus exercisable may be exercised in whole or in part 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 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; 
  

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   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 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 shall round the fractional share up 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 

  

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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) 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. 
 (b) Upon each adjustment of the number or kind of shares of Common Stock for which the Warrants are exercisable as provided in
Section 4(a) hereof, the per share Exercise Price payable upon exercise of the Warrants shall be adjusted by multiplying the Exercise Price immediately prior to such adjustment by a fraction (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. 
 (c) If the Company is involved in any Corporate Transaction other than a Corporate Transaction of the type described in Section 4(d), the number and
kind of securities issuable upon exercise of Warrants shall be adjusted so that the Holder of the Warrants would be entitled to receive 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 such Corporate Transaction. For purposes of this Section 4, “Corporate Transaction” means any reorganization, merger, consolidation 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 of the Company 

  

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in good faith), references in the Plan and each outstanding Warrant to the “Company” 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 of the Company or the board of directors of such issuer in good faith. 
 (d) 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 will 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 Holder’s discretion, on the consummation of the Corporate Transaction and shall be effective only immediately before such consummation. 
  

	5.	RESTRICTIONS ON TRANSFER 

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

  

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shall not be entitled to any rights of a stockholder of the Company with respect to, or be deemed for any purpose the holder of, shares for which the
Warrants shall be exercisable, including without limitation, the right to vote or to receive dividends or other distributions, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 

 

	8.	MISCELLANEOUS 

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

	 	(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 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

  

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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 Delaware, 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:
 Title:
	 	 Arunas A. Chesonis
 President, Chairman and
CEO

  
  
  

									
		 		 		 	Date:	 	 

  

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 SCHEDULE A 
  
 Name of Agent:_________________________ 
 Number of Warrant
Shares:_________________ 
 Existing Monthly Commissionable Revenue:_________________________ 
  
  

			
	 Maximum Number of
 Warrant Shares
	  	 New Monthly Commissionable
 Revenue Target

		
	 10,000
	  	$50,000
	 [20,000]
	  	[$100,000]

  

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 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.

  

 11Exhibit 4.7

 Exhibit 4.7 
 PAETEC HOLDING CORP. 
 2009 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 shareholders. Accordingly, the Company’s Board of Directors (the
“Board”) has created this 2009 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. 

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 further awards will be made under the Plan unless the Company decides, in its sole discretion, to continue the Plan by increasing the number of shares available under the Plan. 
  

	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 to be 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. 
  

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	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.”

 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 highest bid and lowest asked prices or 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, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Common Stock as determined by the Board 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 for which the record date is prior to the date of such issuance. 
 A 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 rights under the 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, if the Exercise Price is being paid in cash, shall be accompanied by 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. 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 

  

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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 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 at the time of the exercise and which
registers the offering and sale of Warrant Shares upon exercise of the Warrants. 
  

	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 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”), loop charges which are exclusively for long distance or data services, 
  

	2
	This example is for illustration purposes only. There is no guarantee that PAETEC stock will perform in this manner in the future. 

  

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

  

 3 

 
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, 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 are
as follows: 
  

			
	 Maximum Number of
 Warrant Shares
	  	 New Monthly Commissionable
 Revenue Target

		
	 10,000*
	  	$50,000
	 20,000**
	  	$100,000

  

	*	No partial vesting 

  

	**	Partial vesting at the $50,000 increment as described in Example 2 below. 

 Upon vesting, the agent may purchase up to 100% of the maximum Warrant Shares provided for in the Warrants for the applicable Revenue Target. 
 If an agent fails to achieve the applicable Revenue Target 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, 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 Warrant Shares shall vest with
respect to 10,000 of the Warrant Shares if the agent attains and maintains at least $50,000 in new Monthly Commissionable Revenue as described in Example 2 below. 
 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 
 Total Monthly Commissionable Revenue of Agent Upon Grant Date: $100,000 
 New Monthly Commissionable Revenue Target: $50,000 
  

	 	1.	 24th Calendar Month After Grant – Agent has never generated total monthly commissionable sales revenues greater than or equal to of $150,000: 

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

 4 

	 	2.	 6th
Calendar Month After Grant, revenues for the month equal $150,000; in months 7, 8 or 9 following grant, revenues for a month are less than $150,000: 

 Warrants do not vest, and the three month period to maintain at least $150,000 in revenue starts over. If the agent does not maintain at
least $150,000 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 $150,000; 15th Calendar
Month After Grant, revenues for the month are greater than or equal to $150,000 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 
 Total Monthly Commissionable Revenue of Agent Upon
Grant Date: $100,000 
 New Monthly Commissionable Revenue Target: $100,000 
  

	 	1.	 24th Calendar Month After Grant—Agent has never generated total monthly commissionable sales revenues greater than or equal to $150,000: 

 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 $150,000; 9th Calendar
Month After Grant, revenues for the month are less than $150,000: 

 Warrants do not vest, and the three month period to maintain at least $150,000 in revenue starts over. If the agent does not maintain at least $150,000 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 $150,000; 9th Calendar
Month After Grant, revenues for the month are greater than or equal to $150,000 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 $50,000 is met and maintained for three consecutive months during the period ending no later than the end of the Final Month. 
  

 5 

	 	4.	 12th Calendar Month After Grant, revenues for the month equal $200,000; 15th
Calendar Month After Grant, revenues for the month are greater than or equal to $200,000 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: 10,000

 Total Monthly Commissionable Revenue of Agent Upon Grant Date: $80,000 
 New Monthly Commissionable Revenue Target: $50,000 
  

	 	1.	 24th Calendar Month After Grant—Agent has never generated total monthly commissionable sales revenues greater than or equal to $130,000: 

 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 $130,000; 9th Calendar
Month After Grant, revenues for the month are less than $100,000: 

 Warrants do not vest, and the three month period to maintain at least $130,000 in revenue starts over. If the agent does not maintain at least $130,000 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 date of issuance of the Warrants. 
  

	Section 7	Transferability 

 Warrants may not be assigned,
transferred, pledged or otherwise disposed of by the holder without the prior written consent of the Company, and any attempted transfer without prior written consent will be 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 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 

  

 6 

 
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 would be entitled to receive 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 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 of Directors of the Company in good faith), references in the Plan and each outstanding Warrant to the “Company” 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 of the Company or the board of directors of such issuer in good faith. 
 In the event of any Cash Transaction, all outstanding but unexercised Warrants will 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 holder’s discretion, 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 

  

 7 

 
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	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 10	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 Delaware (without 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 meet 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. 

  

 8

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