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                                                                   EXHIBIT 10.26


                               BIRCH TELECOM, INC.
                        2000 EMPLOYEE STOCK PURCHASE PLAN

                                   ARTICLE I.
                  PURPOSE, SCOPE AND ADMINISTRATION OF THE PLAN

     1.1 PURPOSE AND SCOPE. The purpose of the Birch Telecom, Inc. 2000 Employee
Stock Purchase Plan is to assist employees of Birch Telecom, Inc. and its
subsidiaries in acquiring a stock ownership interest in the Company pursuant to
a plan which is intended to qualify as an "employee stock purchase plan" under
Section 423 of the Internal Revenue Code of 1986, as amended.

     1.2 ADMINISTRATION OF PLAN. The Plan shall be administered by the
Committee. The Committee shall have the power to make, amend and repeal rules
and regulations for the interpretation and administration of the Plan consistent
with the qualification of the Plan under Section 423 of the Code, and the
Committee also is authorized to change the Option Periods, Offering Dates and
Exercise Dates under the Plan by providing written notice to all Employees at
least 15 days prior to the date following which such changes will take effect.
The Committee may delegate administrative tasks under the Plan to one or more
Officers of the Company. The Committee's interpretation and decisions in respect
to the Plan shall be final and conclusive.

                                   ARTICLE II.
                                   DEFINITIONS

     Whenever the following terms are used in this Plan, they shall have the
meaning specified below unless the context clearly indicates to the contrary.
The singular pronoun shall include the plural where the context so indicates.

     2.1 "BOARD" shall mean the Board of Directors of the Company.

     2.2 "CODE" shall mean the Internal Revenue Code of 1986, as amended.

     2.3 "COMMITTEE" shall mean the Compensation Committee of the Board, which
Committee shall administer the Plan as provided in Section 1.2 above.

     2.4 "COMMON STOCK" shall mean shares of common stock of the Company.

     2.5 "COMPANY" shall mean Birch Telecom, Inc., a Delaware corporation.

     2.6 "COMPENSATION" shall mean the base salary or wages and targeted
commissions paid to an Employee by the Company or a Subsidiary in accordance
with established payroll procedures.

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     2.7 "ELIGIBLE EMPLOYEE" shall mean an Employee who (a) is customarily
scheduled to work at least 20 hours per week, and (b) whose customary employment
is more than five (5) months in a calendar year.

     2.8 "EMPLOYEE" shall mean any employee of the Company or a Subsidiary.

     2.9 "EXERCISE DATE" shall mean (a) with respect to Option Periods beginning
on April 15 or the IPO Date, the next following April 14, and (b) with respect
to Option Periods beginning October 15, the next following October 14.

     2.10 "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

     2.11 "FAIR MARKET VALUE" of a share of Common Stock as of a given date
shall mean (i) the closing price of the sale of Common Stock on the Nasdaq
National Market System ("Nasdaq") as of 4:00 P.M., New York time on such date or
on the immediately preceding trading date, or (ii) if Common Stock is not quoted
on Nasdaq, the fair market value of a share of Common Stock as established by
the Committee acting in good faith; provided, however, that for purposes of the
Option Period commencing on the IPO Date, the Fair Market Value of a Share of
Common Stock shall be the Price to the Public as set forth in the final
prospectus filed with the Securities and Exchange Commission pursuant to Rule
424 under the Securities Act of 1933, as amended.

     2.12 "IPO DATE" shall mean the effective date of the initial public
offering of Common Stock pursuant to a registration statement filed with the
Securities and Exchange Commission.

     2.13 "OFFERING DATE" shall mean each April 15 and October 15; provided,
however, that the first Offering Date under the Plan shall be the IPO Date.

     2.14 "OFFICER" shall mean an employee of the Company who is either an
executive officer or member of the management of the Company.

     2.15 "OPTION PERIOD" shall mean the period beginning on an Offering Date
and ending on the next succeeding Exercise Date.

     2.16 "OPTION PRICE" shall mean the purchase price of a share of Common
Stock hereunder as provided in Section 4.1 below.

     2.17 "PARTICIPANT" shall mean any Eligible Employee who elects to
participate.

     2.18 "PLAN" shall mean this Birch Telecom, Inc. 2000 Employee Stock
Purchase Plan, as it may be amended from time to time.



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     2.19 "PLAN ACCOUNT" shall mean a bookkeeping account established and
maintained by the Company in the name of each Participant.

     2.20 "SUBSIDIARY" shall mean any corporation of which the Company or a
Subsidiary owns stock possessing 50% or more of the total combined voting power
of all classes of stock in the corporation.

                                  ARTICLE III.
                                  PARTICIPATION

     3.1 ELIGIBILITY. An Eligible Employee may participate in the Plan if
immediately after the applicable Offering Date, that Employee would not be
deemed for purposes of Section 423(b)(3) of the Code to possess 5% or more of
the total combined voting power or value of all classes of stock of the Company
or any Subsidiary.

     3.2 ELECTION TO PARTICIPATE; PAYROLL DEDUCTIONS

          (a) An Eligible Employee may participate in the Plan only by means of
payroll deduction. An Eligible Employee may elect to participate in the Plan
during an Option Period by delivering to the Company in the calendar month
preceding the Offering Date on which such Option Period commences a written
payroll deduction authorization on a form prescribed by the Company; provided,
however, that for the Option Period commencing on the IPO Date, an Eligible
Employee may elect to participate in the Plan at any time on or prior to the IPO
Date.

          (b) Payroll deductions (i) shall be equal to at least 1%, but not more
than 15%, of the Participant's Compensation as of the Offering Date; (ii) must
equal at least five dollars ($5.00) per pay period; and (iii) may be expressed
either as (A) a whole number percentage, or (B) a fixed dollar amount, subject
to the provisions of Sections 4.2 and 4.3 below. Amounts deducted from a
Participant's Compensation pursuant to this Section 3.2 shall be credited to the
Participant's Plan Account.

     3.3 LEAVE OF ABSENCE. During leaves of absence approved by the Company
meeting the requirements of Regulation Section 1.421-7(h)(2) under the Code, a
Participant may continue participation in the Plan by making cash payments to
the Company on his or her normal payday equal to his or her authorized payroll
deduction.

                                  ARTICLE IV.
                               PURCHASE OF SHARES

     4.1 OPTION PRICE. The Option Price per share of the Common Stock sold to
Participants hereunder shall be 85% of the Fair Market Value of such share on
either the Offering Date or the Exercise Date of the Option Period, whichever is
lower, but in no event shall the Option Price per share be less than the par
value per share ($0.001) of the Common Stock.


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     4.2 PURCHASE OF SHARES

          (a) On each Exercise Date on which he or she is employed, each
Participant will automatically and without any action on his or her part be
deemed to have exercised his or her option to purchase at the Option Price the
largest number of whole shares of Common Stock which can be purchased with the
amount in the Participant's Plan Account. The balance, if any, remaining in the
Participant's Plan Account (after exercise of his or her option) as of an
Exercise Date shall be carried forward to the next Option Period, unless the
Participant has elected to withdraw from the Plan pursuant to Section 6.1 below.

          (b) As soon as practicable following each Exercise Date, the number of
shares purchased by such Participant pursuant to subsection (a) above will be
delivered, in the Company's sole discretion, to either (i) the Participant, or
(ii) an account established in the Participant's name at a stock brokerage or
other financial services firm designated by the Company. In the event the
Company is required to obtain from any commission or agency authority to issue
any such shares of Common Stock, the Company will seek to obtain such authority.
Inability of the Company to obtain from any such commission or agency authority
which counsel for the Company deems necessary for the lawful issuance of any
such shares shall relieve the Company from liability to any Participant except
to refund to him or her the amount withheld.

     4.3 LIMITATIONS ON PURCHASE. No Employee shall be granted an option under
the Plan which permits his or her rights to purchase Common Stock under the Plan
or any other employee stock purchase plan of the Company or any of its
Subsidiaries to accrue at a rate which exceeds $25,000 (as measured by the Fair
Market Value of such Common Stock at the time the option is granted) for each
calendar year such option is outstanding. For purposes of this Section 4.3, the
right to purchase Common Stock under an option accrues when the option (or any
portion thereof) becomes exercisable, and the right to purchase Common Stock
which has accrued under one option under the Plan may not be carried over to any
other option.

     4.4 TRANSFERABILITY OF RIGHTS. An option granted under the Plan shall not
be transferable and is exercisable only by the Participant. No option or
interest or right to the option shall be available to pay off any debts,
contracts or engagements of the Participant or his or her successors in interest
or shall be subject to disposition by pledge, encumbrance, assignment or any
other means whether such disposition be voluntary or involuntary or by operation
of law by judgment, levy, attachment, garnishment or any other legal or
equitable proceedings (including bankruptcy), and any attempt at disposition of
the option shall have no effect.

                                   ARTICLE V.
                       PROVISIONS RELATING TO COMMON STOCK

     5.1 COMMON STOCK RESERVED. Subject to adjustment as provided in Section
5.2, the maximum number of shares of Common Stock that shall be made available
for sale under this Plan shall be 1,000,000, plus an annual increase on the
first day of each of the



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Company's fiscal years beginning in 2001 and ending in 2010, equal to the lesser
of (a) 1,000,000 shares, (b) 1.2% of the shares outstanding on the last day of
the immediately preceding fiscal year, or (c) such lesser number of shares as is
determined by the Board. Shares of Common Stock made available for sale under
this Plan may be authorized but unissued or reacquired shares reserved for
issuance under this Plan.

     5.2 ADJUSTMENT FOR CHANGES IN COMMON STOCK. In the event that
adjustments are made in the number of outstanding shares of Common Stock or
the shares are exchanged for a different class of stock of the Company by
reason of stock dividend, stock split or other subdivision, the Committee
shall make appropriate adjustments in (a) the number and class of shares or
other securities that may be reserved for purchase hereunder, and (b) the
Option Price of outstanding options.

     5.3 MERGER, ACQUISITION OR LIQUIDATION. In the event of the merger or
consolidation of the Company into another corporation, the acquisition by
another corporation of all or substantially all of the Company's assets or 80%
or more of the Company's then outstanding voting stock or the liquidation or
dissolution of the Company, the date of exercise with respect to outstanding
options shall be the business day immediately preceding the effective date of
such merger, consolidation, acquisition, liquidation or dissolution unless the
Committee shall, in its sole discretion, provide for the assumption or
substitution of such options in a manner complying with Section 424(a) of the
Code.

     5.4 INSUFFICIENT SHARES. If the aggregate funds available for the purchase
of Common Stock on any Exercise Date would cause an issuance of shares in excess
of the number provided for in Section 5.1 above, (a) the Committee shall
proportionately reduce the number of shares that would otherwise be purchased by
each Participant in order to eliminate such excess, and (b) the Plan shall
automatically terminate immediately after such Exercise Date.

     5.5 RIGHTS AS STOCKHOLDERS. With respect to shares of Common Stock
subject to an option, a Participant shall not be deemed to be a stockholder
and shall not have any of the rights or privileges of a stockholder. A
Participant shall have the rights and privileges of a stockholder when, but
not until, a certificate has been issued to him or her following exercise of
his or her option.

                                  ARTICLE VI.
                          TERMINATION OF PARTICIPATION

     6.1 CESSATION OF CONTRIBUTIONS; VOLUNTARY WITHDRAWAL

          (a) A Participant may cease payroll deductions during an Option Period
by delivering written notice of such cessation to the Company. Upon any such
cessation, the Participant may elect either to withdraw from the Plan pursuant
to subsection (b) below or to have amounts credited to his or her Plan Account
held in the Plan for the purchase of Common Stock pursuant to Section 4.2. A
Participant who ceases contributions to the Plan during any



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Option Period shall not be permitted to resume contributions to the Plan during
that Option Period.

          (b) A Participant may withdraw from the Plan at any time by written
notice to the Secretary of the Company prior to the close of business on an
Exercise Date. Within 21 days after the notice of withdrawal is delivered, the
Company shall refund the entire amount, if any, in a Participant's Plan Account
to him or her, at which time the Participant's payroll deduction authorization,
his or her interest in the Plan and his or her option under the Plan shall
terminate. Any Eligible Employee who withdraws from the Plan may again become a
Participant in accordance with Section 3.2 above.

     6.2 TERMINATION OF ELIGIBILITY

          (a) If a Participant ceases to be eligible under Section 3.1 above for
any reason, the amount in such Participant's Plan Account will be refunded to
the Participant or his or her designated beneficiary or estate within 21 days of
his or her termination of employment or other cessation of eligibility.

          (b) Upon payment by the Company to the Participant or his or her
beneficiary or estate of the remaining balance, if any, in Participant's Plan
Account, the Participant's interest in the Plan and the Participant's option
under the Plan shall terminate.

                                  ARTICLE VII.
                               GENERAL PROVISIONS

     7.1 CONDITION OF EMPLOYMENT. Neither the creation of the Plan nor an
Employee's participation therein shall be deemed to create a contract of
employment, any right of continued employment or in any way affect the right of
the Company or a Subsidiary to terminate an Employee at any time with or without
cause.

     7.2 AMENDMENT OF THE PLAN

          (a) The Board may, in its sole discretion, amend, suspend or terminate
the Plan at any time and from time to time; provided, however, that without
approval of the Company's stockholders given within 12 months before or after
action by the Board, the Plan may not be amended to increase the maximum number
of shares subject to the Plan or change the designation or class of Eligible
Employees.

          (b) Upon termination of the Plan, the balance in each Participant's
Plan Account shall be refunded within 21 days of such termination.

     7.3 USE OF FUNDS; NO INTEREST PAID. All funds received by the Company by
reason of purchase of Common Stock under this Plan will be included in the
general funds of the



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Company free of any trust or other restriction and may be used for any corporate
purpose. No interest will be paid to any Participant or credited under the Plan.

     7.4 TERM; APPROVAL BY STOCKHOLDERS. The Plan shall terminate on the tenth
anniversary of the date of its initial approval by the stockholders of the
Company, unless earlier terminated by action of the Board. No option may be
granted during any period of suspension of the Plan nor after termination of the
Plan. The Plan will be submitted for the approval of the Company's stockholders
within 12 months after the date of the Board's initial adoption of the Plan.
Options may be granted prior to such stockholder approval; provided, however,
that such options shall not be exercisable prior to the time when the Plan is
approved by the stockholders; provided further that if such approval has not
been obtained by the end of said 12-month period, all options previously granted
under the Plan shall thereupon be canceled and become null and void.

     7.5 EFFECT UPON OTHER PLANS. The adoption of the Plan shall not affect any
other compensation or incentive plans in effect for the Company or any
Subsidiary. Nothing in this Plan shall be construed to limit the right of the
Company or any Subsidiary (a) to establish any other forms of incentives or
compensation for employees of the Company or any Subsidiary, or (b) to grant or
assume options otherwise than under this Plan in connection with any proper
corporate purpose, including, but not by way of limitation, the grant or
assumption of options in connection with the acquisition, by purchase, lease,
merger, consolidation or otherwise, of the business, stock or assets of any
corporation, firm or association.

     7.6 CONFORMITY TO SECURITIES LAWS. Notwithstanding any other provision of
this Plan, this Plan and the participation in this Plan by any individual who is
then subject to Section 16 of the Exchange Act shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section
16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange
Act) that are requirements for the application of such exemptive rule. To the
extent permitted by applicable law, the Plan shall be deemed amended to the
extent necessary to conform to such applicable exemptive rule.

     7.7 NOTICE OF DISPOSITION OF SHARES. The Company may require any
Participant to give the Company prompt notice of any disposition of shares of
Common Stock, acquired pursuant to the Plan, within two years after the
applicable Offering Date or within one year after the applicable Exercise Date
with respect to such shares. The Company may direct that the certificates
evidencing shares acquired pursuant to the Plan refer to such requirement.

     7.8 TAX WITHHOLDING. The Company shall be entitled to require payment in
cash or deduction from other compensation payable to each Participant of any
sums required by federal, state or local tax law to be withheld with respect to
any purchase of shares of Common Stock under the Plan or any sale of such
shares.

     7.9 GOVERNING LAW. The Plan and all rights and obligations thereunder shall
be construed and enforced in accordance with the laws of the State of Delaware.

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                                   * * * * * *

         I hereby certify that the foregoing Birch Telecom, Inc. 2000 Employee
Stock Purchase Plan was duly approved by the Compensation Committee of the Board
of Directors of Birch Telecom, Inc. on March 30, 2000.

         I hereby certify that the foregoing Birch Telecom, Inc. 2000 Employee
Stock Purchase Plan was duly approved by the stockholders of Birch Telecom, Inc.
on March 30, 2000.

         Executed on this 30th day of March, 2000.


                                                     ---------------------------
                                                             Secretary

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