Document:

SPRINT WHOLESALE SERVICES
                             DATA AND PRIVATE.LINE
                                   AGREEMENT

SPRINT  COMMUNICATIONS  COMPANY  LP.  ("Sprint")  and NORSTAN  NETWORK  SERVICES
("Customer")  enter into this Agreement  ("Agreement').  Sprint and Customer are
"Parties."  The  Parties  agree that this  Agreement  will sure and  replace the
Sprint  Wholesale  Services  Data and  Private  Line  Agreement  bees Sprint and
Norstan  Network  Services  signed by  Customer on August 30, 2000 and Sprint on
September  19,  2000,  and as  amended,  as of the  Commencement  Date  of  this
Agreement.

Sprint and Customer agree that the terms and conditions in this  Agreement,  its
Attachments, and any Order for Services ('Order") will govern Sprint's provision
and  Customers  use of  Services.  Customer is  purchasing  Services  under this
Agreement for resale to' it customers ("End Users").

I.   TERM

     A. Term of  Agreement.  This  Agreement  is effective as to each Party when
     signed by that Party.  The Term of the Agreement will commence on the first
     day of the second month  following  the month in which Sprint  executes the
     Agreement. The Term continues for the period specified in Attachment A.

     B. Term of Services.  The initial term for Service ("Initial Service Term")
     will be stated  on the Order and will  begin on the first day .of the month
     following  the date the Service is  installed  and  available.  If Customer
     orders a Service with a term (for example, 3 years) that extends beyond the
     Agreement's term, this Agreement and pricing will remain in effect for that
     Service until the term for that Service  expires.  If the term of a Service
     expires and there is then no Agreement  between the Parties,  continued use
     of the Service will be invoiced  month-to-month  at Sprint's current tariff
     or standard  list pricing,  terms and  conditions in effect at the time the
     Service term expires.

II.  SERVICES

     A. Services are described in the Attachments. Customer must submit an Order
     to obtain Services pursuant to this Agreement.  Customer may purchase,  and
     Sprint  will  provide,  Service  under  the terms  and  conditions  in this
     Agreement and the Order.

     B. Access. Sprint-provided access is pursuant to Sprint FCC Tariff #8. When
     Customer or Sprint (as Customer's agent) orders access for Services,  Local
     Exchange  Carrier  (LEC)  tariffs  may  apply.   Sprint  and  Customer  are
     responsible for their respective  compliance with those tariffs.  Sprint is
     not responsible  for delays in provisioning  Service that are caused by the
     LEC.  Access  charges for  circuits of DS3 and greater  will be  separately
     priced per Special Customer Arrangement.

     C. Delivery. Sprint will schedule the delivery of the Service in accordance
     with a mutually agreed upon delivery date.

III. MINIMUM MONTHLY COMMITMENT

     A.  Minimum  Monthly  Commitment  ("MMC")  is the amount of  Services  that
     Customer commits to purchase during each month of the Term.  Customer's MMC
     is stated in Attachment A.

     B. MMC  Shortfall  Liability.  If  Customer  fails to meet its MMC,  unless
     caused by  Sprint's  material  failure  to perform  under  this  Agreement,
     Customer  will pay Sprint,  in addition to other  applicable  charges,  the
     difference  between the MMC and Customer's actual MMC Contributory  Service
     Usage Charges for each month in which Customer does not achieve the MMC.

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IV.   PRICES

     A. Prices are in the  Attachments.  Prices (except those subject to Tariff)
     are fixed for the Term.  Prices stated in the Attachments apply to Services
     ordered and  installed,  or renewed,  after the Effective Date and prior to
     the termination or expiration of the Agreement.

     B.  Sprint may adjust its rates and charges or impose  additional  rates or
     surcharges  on  Customer  in order to  recover  amounts it is  required  by
     governmental or quasi- governmental  authorities to collect on behalf of or
     pay to others in support of statutory or regulatory programs.

V.   INVOICES AND PAYMENT

     A. Payment Obligation.  Customer will pay Sprint for Services in accordance
     with this Agreement and any applicable Tariffs.

     B. Payment  Procedure.  Sprint will invoice  Customer monthly for Services.
     Invoices are due and payable 30 days from invoice date.  Undisputed charges
     that Customer  fails to pay within 30 days from the date of the invoice are
     subject  to  interest  from the date of the  invoice  at the  maximum  rate
     allowed by law, not to exceed 1 '/2% per month.

     C. Taxes. The price of Service excludes applicable taxes. Customer will pay
     applicable taxes,  which will be stated separately on each invoice.  Sprint
     will  not  bill  Customer  for  taxes  if  Customer  provides  Sprint  with
     certificates from appropriate  taxing  authorities  exempting Customer from
     taxes.

     D. Billing Disputes.  If Customer, in good faith and by the due date of the
     disputed invoice,  disputes  Sprint's  computation of amounts due, Customer
     may withhold  payment of the  disputed  amount,  but Customer  must pay all
     charges not in dispute per the payment terms in this  Agreement.  An amount
     is  not  in  dispute  until  Customer  has  provided  Sprint  with  written
     documentation  explaining the disputed  amount and describing the dispute's
     factual and legal basis. Customer will cooperate with Sprint to resolve any
     dispute  expeditiously.  Disputed  amounts are due and payable  immediately
     once Sprint denies the dispute in writing.

     E.  Collection.  Customer is responsible for amounts it cannot collect from
     End Users, including but not limited to fraudulent charges, and for billing
     adjustments  or  credits it grants End  Users,  including  adjustments  for
     fraudulent charges.

VI.  PAYMENT SECURITY

     Provision  of Service is  contingent  on credit  approval  by Sprint.  Upon
     Sprint's request, Customer must provide Sprint with financial statements or
     other indications of Customer's financial and business  circumstances.  If:
     (a) Customer's  financial or business  circumstances  or payment history is
     or, during the Term, becomes  unacceptable to Sprint; (b) Customer fails to
     make timely payments in accordance with Section V; (c) Customer exceeds its
     credit  limit;  -or (d)  Sprint  has reason to  believe  that  Customer  is
     insolvent, then Sprint may require a deposit,  irrevocable letter of credit
     or other  form of  security  acceptable  to  Sprint,  or, if  Customer  has
     previously  provided  security,  Sprint may  request  additional  security.
     Customer's  failure  to  provide  the  requested  security  within  5  days
     following Sprint`s reasonable request is a default. If Customer exceeds its
     credit limit by more than 20%, the excess  amount is due  immediately  upon
     Sprint's request and ' Customer's failure to provide immediate payment will
     be a breach of this  Agreement.  Customer's  breach of or default under any
     related  security  agreement  or  Promissory  Note  is  a  breach  of  this
     Agreement.

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VII.    TERMINATION OF SERVICESIEARLY SERVICE TERMINATION  CHARGE

     A. To terminate Services,  Customer must provide Sprint with 30 days' prior
     written notice. If Customer terminates any Service before the expiration of
     the term for that  Service,  Customer  must pay early  service  termination
     changes described in the Attachments. In addition, if Customer terminates a
     Service  having  access of T-3 or greater  bandwidth  before the end of the
     Service  term,  then  Customer  must pay Sprint  for 100% of the  remaining
     access  charges  imposed by the LEG to which Sprint has committed on behalf
     of Customer as follows:  (1) for  Customer-provided  access,  Customer must
     -pay  Sprint  the EFC and COC  monthly  recurring  charges  for each  month
     remaining in the Service term; or (2) for Sprint-provided  access, Customer
     must pay Sprint the ACF, COC, and local loop monthly  recurring charges for
     each month remaining in the Service term.

     B.  Except for the access  reimbursement  on  bandwidth  of T-3 or greater,
     Sprint will' waive the otherwise  applicable early termination  charges for
     any Service if Customer orders a replacement Service of the same or greater
     bandwidth  with a term equal to the greater of: (a) the Term  remaining  on
     the original Service; or (b)12 months.  Customer must order the replacement
     Service  during the 30 days  immediately  following the  termination of the
     original Service.  The replacement Service must be installed within 60 days
     of the order for the  replacement  Service.  Customer  must pay the  access
     reimbursement  described  in Section  VILA even if it orders a  replacement
     Service unless the replacement  Service is at the same Service  location as
     the terminated Service.

VIII. CUSTOMER RESPONSIBILITIES, REPRESENTATIONS AND WARRANTIES

     A.   Customer will:

          1.   at its own expense provide all necessary preparations required to
               comply with Sprint's installation and maintenance specifications;

          2.   be  responsible  for the costs of  relocation  of  Services  once
               installed; and

          3.   provide  to  Sprint  and to its  suppliers  reasonable  access to
               Customer's  premises  to perform  any acts  required by an Order;
               and-

          4.   comply with Sprint's network interface  procedures when it orders
               it own access facilities.

     B. Customer will properly use the Services. Customer will be liable for any
     and all Y damages to  Services  located on  Customer's  premises  excluding
     reasonable  wear and tear and damages  caused by Sprint Upon  expiration or
     termination  of the Order,  Customer will surrender to Sprint any equipment
     and other property owned by Sprint and provided to Customer.

     C. Customer will not nor will it permit or assist others to:

          1.   use Services  for any purpose  other than that for which they are
               intended;.

          2.   alter, tamper with, adjust or repair the Services.

     D. Customer represents and warrants that it:

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          1.   has obtained all required  certificates of public convenience and
               necessity,  licenses  and  regulatory  approvals  and that it Is.
               authorized to provide service to End Users;

          2.   will  immediately  notify Sprint if any required  certificate  of
               public  convenience  and necessity,  license or other  regulatory
               approval  Is  revoked,   suspended  or  otherwise  ceases  to  be
               effective; and

          3.   will comply with all applicable laws, rules and regulations.

     E.  Duties.   Customer  is  not  relieved  of  any  duty,   obligation   or
     responsibility  under this Agreement because service is ultimately provided
     to End Users.

     F. End Users.  Customer is solely  responsible  for End User  solicitation,
     service  requests,   creditworthiness,   customer   service,   billing  and
     collection. Customer is responsible for payment to Sprint without regard to
     Customer's  ability to charge for Services  used by End Users or to collect
     payment from End Users.

     Upon the  occurrence or breach of any of the above,  Sprint may suspend its
     performance  and/or terminate this Agreement with no further  obligation to
     Customer.

IX.  HARDWARE OR SOFTWARE NOT PROVIDED BY SPRINT

     A. Customer and not Sprint is responsible for the installation,  operation,
     or  maintenance  of hardware or software not provided by Sprint.  Sprint is
     not  responsible  for the  transmission or reception of information by such
     hardware or software.

     B. Customer is responsible  for the  selection,  use and  compatibility  of
     hardware or software  not  provided by Sprint.  If hardware or software not
     provided  by Sprint  impairs  Customer's  use of the  Service,  Customer is
     nonetheless  liable for  payment for the  Service.  Upon notice from Sprint
     that the  hardware  or  software  not  provided  by Sprint is causing or is
     likely to cause hazard, interference,  or service obstruction Customer will
     eliminate such hazard,  interference,  or service  obstruction.  Sprint may
     suspend the  provision of the Service until such hazard,  interference,  or
     service obstruction is corrected. If requested by Customer,  Sprint may, at
     its then current  rates,  troubleshoot  difficulties  caused by hardware or
     software not provided by Sprint.

     C. Sprint is not  responsible  if any changes in the Service cause hardware
     or software not provided by Sprint to become obsolete, require modification
     or  alteration,  or  otherwise  affect  performance  of  such  hardware  or
     software.

     D. If Customer provides its own router to interface with the Services, then
     Customer  is  fully  responsible  for the  installation,  maintenance,  and
     configuration  of such  router.  Sprint  must  approve in advance the make,
     model and/or software  revision of a Customer  provided router.  Sprint has
     the right, in cooperation with Customer,  to set the initial  configuration
     for the router interface into the Service.

X.   INDEMNIFICATION

     A. Property and Personal  Injury  Indemnity.  Each Party will indemnify and
     defend  the  other  Party,  its  directors,  employees,  agents  and  their
     successors  and assigns  from and against  all claims,  demands,  causes of
     action,  losses,  damages,  expenses or  liabilities,  including  costs and
     reasonable attorneys' fees, arising out of claims made by third parties for
     personal injury (or death) or loss or damage to personal property,  arising
     out of or  related  to the  negligent  or  willful  misconduct,  errors  or
     omissions,  of the  indemnifying  Party or its  subcontractors,  directors,
     employees, agents or representatives.

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     Claims  made by  employees  of a Party that are  covered  under  applicable
     workers' compensation laws are not indemnified under this Section.

B.   Proprietary Rights Indemnity.

          1.   If Customer  notifies  Sprint  promptly in writing of a the claim
               and  gives  Sprint  full  and  complete  ate,   information   and
               assistance,  at Sprint's  expense,  for the.  claim's defense and
               settlement,  and if  Customer  or its agents  does not by any act
               (including any admission or acknowledgement) materially impair or
               compromise a claim's defense,  Sprint will defend any third-party
               claim and pay all court-awarded  damages brought against Customer
               based on an allegation that Sprint-provided  Services infringe on
               any copyright,  trade-secret,  or patent,  protected under United
               States' laws. For any of these third-party claims Sprint receives
               or to minimize the  potential.  for such a claim,  Sprint may, at
               .its option and expense, either procure the right for Customer to
               continue using the Services,  replace or modify the Services with
               comparable Services, or terminate the Services.

          2.   Customer  will  indemnify  and defend Sprint from and against all
               claims, demands,  causes of action, losses, damages,  expenses or
               liabilities,  including  costs and  reasonable  attorneys'  fees,
               arising  out of  claims  made by  third  parties  that the use of
               Customer-provided  hardware or software  infringes on a patent or
               copyright.

     C.   Customer will indemnify and defend Sprint from and against all claims,
          demands, causes of action, losses,  damages,  expenses or liabilities,
          including  casts and  reasonable  attorneys'  fees caused by any third
          party  claims:  (a)  arising  from  information,   data,  or  messages
          transmitted  over the network by Customer  including,  but not limited
          to, claims for libel,  slander,  invasion or privacy,  infringement or
          copyright,  and invasion and/or alteration of private records or data;
          or (b) alleging Customer's violation of any federal or state law, rule
          or regulation.

XI   PROPERTY RIGHTS PROTECTION

     A. License.  Sprint grants to Customer a non-exclusive and non-transferable
     license to use  software  which may be  provided  with or  included  in the
     Services for the sole purpose of enabling Customer to use such Services.

     B. Title.  Sprint or its  suppliers  retain  title and  property  rights to
     Sprint-provided software and equipment, whether or not they are embedded in
     or attached to realty.  Customer neither owns nor will it acquire any claim
     or right of ownership to:

          1.   Sprint-provided equipment not purchased by Customer;

          2.   software  (including the original media and all subsequent copies
               of the software,  regardless of the media's form) and  associated
               documentation (including copies);

          3.   any  patents,  copyrights,   trademarks,  or  other  intellectual
               property related to Section XI.B.1. or 2; or

          4.   IP addresses assigned to Customer.

     C. Trade Secret  Protection.  Sprint Services are valuable trade secrets of
     Sprint or its suppliers. Customer will protect any software it uses that is

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     provided with or included in Services, and will make no attempt to examine,
     copy,  alter,  reverse  engineer,  tamper  with or  otherwise  misuse  such
     software.

XII. BREACH OR TERMINATION OF THE AGREEMENT

     A. Sprint Breach. If Sprint  materially  beaches the agreement and fails to
     cure such breach  within 60 days of receiving  written  notice of the beach
     from Customer,  then Customer may terminate the Agreement without incurring
     an Early  Termination  Charge. A material breach by Sprint does not include
     any  failure  to  perform  due to a failure  caused  by the local  exchange
     carrier,  Customer premise equipment,  Customer or any other failure caused
     by circumstances not within the sole control of Sprint

     B. Customer Breach.

     1.   In addition to the other remedies in this  Agreement;  Sprint may stop
          providing  Service and  terminate the  Agreement  immediately  without
          notice  if  Customer  breaches  Section V or VI of the  Agreement.  If
          Customer  breaches any other  provision of this Agreement and fails to
          cure the  breach  within 30 days of  receiving  written  notice of the
          breach  from  Sprint (or such other  period as may be  specified  in a
          particular  Section),  Sprint  may,  in  addition  to  other  remedies
          available in law or equity, do one or more of the following:

          (a)  refuse to accept additional orders for Service

          (b)  refuse to install new Service types or Service locations;

          (c)  disconnect or block Service Elements;

          (d)  discontinue any applicable  promotional pricing until Customer is
               in full compliance with this Agreement;

          (e)  stop providing Service to Customer; or terminate this Agreement

     2.   The insolvency, corporate reorganization,  arrangement with creditors,
          receivership,  or  dissolution  of Customer or a change in  Customer's
          majority  ownership  without  Sprints  prior  written  consent  (which
          consent  will  not  be  unreasonably  withheld)  is a  breach  of  the
          Agreement.

     C. Termination Without Cause.  Customer may terminate this Agreement at any
     time without cause upon 90 days' prior written notice to Sprint and payment
     to Sprint of the Early Termination Charge described in XII.D.  Service will
     be  discontinued  the first  business  day of the fourth  month  after such
     notice of termination.

     D.  Early  Termination  Charge.  Sprint's  rates  for  Service  under  this
     Agreement are in consideration for Customers  agreement to purchase Service
     for the  entire  Term.  It is  difficult  if not  impossible  to  calculate
     Sprint's loss if Customer terminates this Agreement under Section XII.C. or
     Sprint  terminates  the Agreement  due to Customers  breach before the Term
     ends. Thus, if Sprint  terminates this Agreement due to Customers  material
     breach, or Customer terminates this Agreement or ceases to use Service to a
     maternal extent (unless due to Sprint's material breach), Customer must pay
     Sprint, in addition to all other applicable  charges,  an Early Termination
     Charge equal to the MMC multiplied by the number of months remaining in the
     Term. The Early Termination  Charge is to compensate Sprint for its losses,
     and is not a penalty.  Sprint will invoice and Customer  must pay the Early
     Termination  Charge  in  accordance  with the  payment  terms  set forth in
     Section V.

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XIII. CONFIDENTIALITY

     A.  Obligations  of  the  Parties.   The  Parties  must  not  disclose  any
     Proprietary Information of the other Party.  Proprietary Information is the
     property of the disclosing Party. A Party receiving Proprietary Information
     must:

     1.   use or  reproduce  Proprietary  Information  only  when  necessary  to
          perform this Agreement;

     2.   provide at least the same care to avoid disclosure or unauthorized use
          of  Proprietary   Information  as  it  provides  to  protect  its  own
          Proprietary Information;

     3.   limit access to Proprietary Information to its employees or agents who
          need the Proprietary Information to perform this Agreement; and

     4.   return or destroy all Proprietary Information, including copies, after
          the need for it has expired,  upon request of the disclosing Party, or
          when the Agreement terminates.

     B.  Remedies.  Breach of this Section XIII may cause  irreparable  harm for
     which monetary damages may be inadequate. Accordingly, in addition to other
     available  remedies,  a Party may seek  injunctive  relief to enforce  this
     Section XIII.

     C. "Proprietary Information" means

     1.   the terms of this Agreement, including all Attachments;

     2.   written  information  of a Party  that is  marked  as  proprietary  of
          confidential  or which  is  accompanied  by  written  notice  that the
          information is confidential, or

     3.   a verbal communication that is later confirmed in writing to the other
          Party as confidential or proprietary  information which (i) maintained
          in confidence  and secrecy by the disclosing  Party,  (ii) valuable to
          the disclosing  Party because of its confidence or secrecy,  and (iii)
          is subject to the disclosing Parts reasonable  efforts to maintain its
          confidentiality and secrecy.

Proprietary Information does not include information that is:

     1.   at any time in the public domain other than through  wrongdoing on the
          part of an entity owing a duty of  confidentiality  to the  disclosing
          Party,

     2.   within legitimate possession of the receiving Party without obligation
          of confidentiality,

     3.   lawfully  received  from a third party having rights  therein  without
          restriction of the right to disseminate the information,

     4.   independently   developed   without   breach  of  any   obligation  of
          confidentiality  through parties without access to or knowledge of the
          Proprietary Information,

     5.   disclosed with prior written approval of the disclosing Party,

     6.   transmitted  after the  disclosing  Party has received  written notice
          from the  receiving  Party that it does not desire to receive  further
          Proprietary Information, or

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     7.   obligated to be produced under a valid court order or. subpoena.

XIV. RELATIONSHIP OF PARTIES

     Neither this Agreement nor the provision of Service  constitutes or creates
     an ration,  joint  venture,  partnership  or other form of legal  entity or
     business  enterprise  between  the  Parties,  their  agents,  employees  or
     affiliates.  Customer !s the service provider with respect to End Users and
     Sprint is a supplier to Customer with no relationship to End Users.  Sprint
     has no liability for the acts of Customer, its employees or agents.

XV.  USE OF NAME AND MARKS

     A.  This  Agreement  confers  no  right  to use the  name,  service  marks,
     trademarks,  copyrights,  patents or carver  identification code ("CIC") of
     either  Party  except as  provided in this  Agreement,  as agreed to by the
     Parties, or as required by applicable law or regulation.  Neither Party may
     take any action that would compromise the registered  copyrights or service
     marks of the  other.  Sprint's  name is  proprietary  and  nothing  in this
     Agreement constitutes a license authorizing its use. Customer will not:

     1.   promote or advertise  Sprint's  name or  capabilities  to End Users or
          prospective End Users;

     2.   attempt to sell its service using Sprint's name; or

     3.   represent  to End Users or  prospective  and Users  that they would be
          Sprint customers or that they may obtain Sprint service from Customer.

     B. If Sprint  notifies  Customer  that  Customer has breached this Section,
     Customer must use its best efforts to immediately  cure the breach and must
     advise Sprint of its corrective action.  If, in Sprint's opinion,  Customer
     fails to cure  within 15 days of  Sprint's  notice,  then  Sprint  may,  in
     addition to any other remedy its has, terminate this Agreement.

XVI. SERVICE ACTIVATION AND DISCONNECTION

     A.  Activation.  Sprint  will make  reasonable  efforts to provide  Service
     within 30 days following  Customer's order or the requested  delivery date,
     whichever is later. These time frames will be extended by the time it takes
     to  address  activation  errors or obtain  from  Customer  a  complete  and
     accurate  order.  If Customer  requests  expedited  Service,  Customer will
     reimburse Sprint for any LEG imposed fees.

     B.  Disconnection.  The minimum disconnect interval for Service Elements is
     35 days. Customer remains liable for all charges incurred until the Service
     Elements are disconnected.

XVII. LIMITATION OF LIABILITY; DISCLAIMER OF WARRANTIES

     A. In no event will Sprint be liable,  either in  contract or in tort,  for
     unauthorized  access to  Customer's  transmission  facilities  or  Customer
     premise equipment;  or for unauthorized access to or alteration,  theft, or
     destruction of Customer's data files, programs,  procedure,  or information
     through accident, fraudulent means or devices, or any other method.

     B. Except to the extent caused by the negligence of Sprint, Sprint will not
     be liable for claims or damages resulting from or caused by: (i) Customer's
     fault, negligence or failure to perform Customer's  responsibilities;  (ii)
     claims against  Customer by any other party (except for claims of copyright
     or patent  infringement as specified  herein;  (iii) any act or omission of
     any other party; or (iv) equipment or services furnished by a third party.

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     C.  Sprint's  entire  liability  for  its  failure  to  perform  any of its
     obligations  under this  Agreement  will not exceed an amount  equal to the
     lesser of $100,000 or the monthly  charges paid for the  effected  Services
     during  the  preceding  12  months.  Sprint  will  not be  liable  for  any
     unavoidable damage to Customer's premises.

     D. Sprint will not be liable for any  consequential,  special,  incidental,
     indirect, exemplary or punitive damages for any cause of action, whether in
     contract or tort,  arising out of this  Agreement  or in any way related to
     the relationship  between the Parties.  Consequential  and indirect damages
     Include,  but are not limited to, lost  profits,  lost  revenues or loss of
     business  opportunity,  whether or not Sprint was aware or should have been
     aware of the possibility of such damages.

     E.  With  respect  to  the  Services,   materials  and  equipment  provided
     hereunder, SPRINT HEREBY DISCLAIMS ALL WARRANTIES,  EXPRESS OR IMPLIED; NOT
     EXPLICITLY  STATED  IN THE  AGREEMENT,  AND  IN  PARTICULAR  DISCLAIMS  ALL
     WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

XVIII. ARBITRATION

     Any dispute arising out of or relating to this Agreement may, at the option
     of the  Parties,  be finally  settled by  arbitration,  except  that if the
     provisions of Section XIX of this  Agreement are held to be  unenforceable,
     then arbitration of any such dispute is mandatory.  Any arbitration will be
     in accordance with the rules of the American Arbitration  Association.  The
     arbitration will be governed by the United States Arbitration Act, 9 U.S.C.
     Sec.  1 et seq.,  and  judgment  upon the award may be entered by any court
     with  jurisdiction.  The  arbitration  will be held in the Kansas City,  MO
     metropolitan area.

XIX. WAIVER OF JURY TRIAL

     The Parties  mutually,  expressly,  irrevocably and  unconditionally  waive
     trial by jury for any  proceedings  arising out of, under or in  connection
     with  this  Agreement.   This  Section  survives  the  termination  of  the
     Agreement.

XX.  JURISDICTION AND VENUE

     Unless a dispute is arbitrated  pursuant to Section XVIII, any legal action
     brought by either Party arising out of or relating to this  Agreement  must
     be brought  exclusively in the District Court of Johnson County,  Kansas or
     the United  States  District  Court for the  District of Kansas  located in
     Kansas City, Kansas. The Parties accept the exclusive personal jurisdiction
     of these  courts.  The  Parties  waive any  objection  (including,  without
     limitation  any objection to the laying of venue or based on the grounds of
     forum non  conveniens)  which either Party may now or hereafter have to the
     bringing of any action in these courts.

XXI. ASSIGNMENT

     Customer may not assign its responsibilities, duties, rights or obligations
     under this  Agreement to any person,  corporation,  or other entity without
     the  written  consent  of Sprint,  which  consent  may not be  unreasonably
     withheld.  All terms and conditions of this Agreement are binding on any of
     Customer's successors or assigns.

XXII. FORCE MAJEURE

     A. Except for the  performance  of  obligations in Section V and VI of this
     Agreement, neither Party will be responsible for any delay, interruption or
     other failure to perform due to acts beyond a Party's control.

                                        9
<PAGE>

     These acts  include,  but are not limited  to,  natural  disasters  such as
     lightening,  earthquakes,  hurricanes,  floods or other like  causes;  war,
     riot, civil commotion; cable cuts; explosion or fire; embargoes, strikes or
     labor disputes; decrees of governmental entities; or acts of third parties.

     B. The Party  claiming  to be affected  (the  "Claiming  Party")  must give
     notice to the other Party if any of these events  occurs.  Upon this notice
     the Claiming' Party may, without.  liability to the other Party,  cancel or
     delay  performance  for as long as the event  delays the  Claiming  Party's
     performance.  So long as the Claiming Party Is in full  compliance with the
     provisions  of this  Section,  the other Party may not declare the Claiming
     Party  to be  in  breach  of  this  Agreement  and  may  not  exercise  the
     termination remedies set forth in this Agreement,  provided,  however, that
     should  the  event  continue  for  more  than 60  days  and  adversely  and
     materially  impact the other Party, that Party may terminate this Agreement
     upon payment for all Services delivered before termination,  plus all other
     charges and costs then incurred, without further liability of either Party.

XXIII. NOTICES

     Notices,  requests or other  communications  (excluding invoices) hereunder
     must  be in  writing  and  sent by  certified  mail  or  overnight  courier
     addressed as follows:

If to Sprint:   Sprint Communications Company L.P.
        Attention: Vice President-Wholesale Services
        2002 Edmund Halley Drive
        Reston, VA 20191-3436
With copy to:   Sprint Communications Company L.P.
        Attn: Law Dept.- Marketing & Sales (Business
        KSOPHT0101-22525
        6391 Sprint Parkway
        Overland Park, KS 66251-2525
If to Customer: Norstan Network Services Inc.
        Attn: Mike Kempffer
        5101 Shady Oak Road
        Minnetonka, MN  55343

                                       10
<PAGE>

XXIV. MISCELLANEOUS

     A.  Headings.  The headings in this Agreement are for reference only and do
     not affect the meaning or interpretation of this Agreement's terms.

     B.  Choice  of  Law.  This  Agreement  and  all  claims  relating  to  the,
     relationship  between the Parties,  including all claims in tort, contract,
     at law or in equity will be governed  by,  enforced and  interpreted  under
     Kansas law without regard to the Kansas choice of law principles.

     C. Rules of Construction.  No rule of construction requiring interpretation
     against the draftsman will apply in the interpretation of this Agreement.

     D.  Modification  of  Agreement.  This  Agreement  may be modified  only by
     written  amendment  signed.  by  duly  authorized  representatives  of both
     Parties.

     E.  Waiver of Terms.  If either  Party fails to enforce any right or remedy
     available under this  Agreement,  that failure does not waive that right or
     remedy with respect to any other breach.

     F.  Partial  Invalidity.  If a  court  or  arbitrator  finds  any  of  this
     Agreement's  provisions  to be  invalid,  illegal,  or  unenforceable,  the
     unaffected  provisions of this  Agreement will remain in effect The Parties
     will  negotiate a  substitute  for the  invalid,  illegal or  unenforceable
     provision that is consistent with their original intent.

     G. Cumulative Remedies. Except as otherwise provided in this Agreement, the
     remedies in this Agreement are in addition to any other remedies  available
     at law or in equity.

     H. No Third Party Beneficiaries. This Agreement's benefits do not extend to
     any third party unless expressly stated in the Agreement.

     I.  Entire  Agreement.  This  Agreement,   including  Attachments  and  any
     referenced documents and instruments,  is the entire understanding  between
     the  Parties  relating to its subject  matter and  supersedes  all prior or
     contemporaneous  negotiations  or  agreements,  whether  oral  or  written,
     relating to the subject matter of this  Agreement.  Customer is not relying
     upon any  representations  or  promises  not stated in this  Agreement.

                                       11
<PAGE>

     J.  Expiration  of Offer.  Sprint may withdrew Its offer to enter Into this
     Agreement if the  Agreement  is not signed by both  Parties  within 45 days
     after the Proposal Date stated on Attachment A.

EXECUTED and made effective as provided in this Agreement.

NORSTAN NETWORK SERVICES

/s/                                           /s/
By: Scott Foote                               By Art MacDowell
President                                     Vice President - Wholesale Sales
7/25/02                                       8/27/02WHOLESALE-SOLUTIONS SWITCHED SERVICES-AGREEMENT

THIS  AGREEMENT  (the  "Agreement")  is  entered  into  by  and  between  SPRINT
COMMUNICATIONS COMPANY LP. ("Sprint"), and NORSTAN NETWORK SERVICES ("Customer")
Sprint and Customer are "Parties" hereto.  The Parties agree that this Agreement
will supersede and replace the Carrier  Transport  Switched  Services  Agreement
between Sprint and Norstan Network Services signed by Customer on August 14,1998
and Sprint on September 4, 1998, and as amended,  as of the Commencement Date of
this Agreement.  In consideration of the mutual premises  contained herein,  the
Parties agree as follows:

1, DEFINITIONS. Capitalized terms appearing in bold print arc defined in Exhibit
1.

2. CONFIDENTIALITY. During the Term and thereafter, neither Party shall disclose
any terms of this Agreement,  including pricing,  or Proprietary  Information of
the other  Patty.  Proprietary  Information  shall remain in the property of the
disclosing Party. A Party receiving  Proprietary  Information  shall: (i) use or
reproduce such information  only when necessary to perform this Agreement;  (ii)
provide at least the same care to avoid  disclosure or unauthorized  use of such
information  as it provides to protect its own  Proprietary  Information;  (iii)
limit  access to such  information  to its  employees  or  agents  who need such
information  to perform  this  Agreement;  and (iv)  return or destroy  all such
information,  including copies, after the need for it has expired,  upon request
of the disclosing Party, or upon termination of this Agreement.

Because  of the  unique  nature  of  Proprietary  Information,  a breach of this
paragraph  may  cause  irreparable  harm  for  which  monetary  damages  may  be
inadequate compensation. Accordingly, in addition to other available remedies, a
Party may seek injunctive relief to enforce this paragraph.

3.  TERM.  The  Term  is  specified  in  Attachment  A and  will  begin  on  the
Commencement Date.  "Commencement Date" means the first day of the first billing
month after the Parties sign this Agreement,  if Customer signs and returns this
Agreement to Sprint's  Wholesale  Market and Business  Analysis Group by the 8th
day of the current  billing month,  if the parties meet the  requirements of the
preceding  sentence,  the Agreement's pricing will be effective on the later of:
(a) the date  Customer  signs  this  Agreement;  or (b) the date that is 45 days
before  the  Commencement  Date.  Pricing  on  invoices  may be  reflected  as a
credit(s)  for any usage prior to systemic  billing  implementation.  Except for
pricing,  all other  arrangements  under this  Agreement will take effect on the
Commencement Date. If Customer fails to sign and return this Agreement to Sprint
by the 8th day of the current billing month, the  Commencement  Date will be the
first day of the  second  billing  month  following  the  month in which  Sprint
executes this Agreement.

4. TERMINATION FOR CAUSE.

4.1. A Party may terminate this Agreement upon the other Party's failure to cure
any of the following  within 30 days following  written notice thereof:  (a) the
(i)   insolvency,   corporate   reorganization,   arrangement   with  creditors,
receivership  or  dissolution  of  the  other  Party;  or  (ii)  institution  of
bankruptcy  proceedings by or against the other party; (b) Customer's assignment
or attempted  assignment  of the  Agreement or any interest  therein,  except as
permitted by Paragraph 24 hereof;  (e) change in majority  ownership of Customer
without Sprint's prior written consent,  which consent shall not be unreasonably
withheld; (d) a final order by a government entity with appropriate jurisdiction
that a Service or the  relationship  hereunder is contrary to law or regulation;
or (e) material  breach of any other  provision of this  Agreement not otherwise
referred to in Paragraph 4.

4.2.  If  Customer  fails to cure a breach  as  provided  in  Paragraph  8 or if
Customer  breaches a provision of Paragraph 17 or 18,  Sprint may, at its option
and in addition to other remedies  available in law or equity,  take one or more
of the following steps: (i) refuse to accept additional orders for Service; (ii)
refuse to install new Service types or Service  locations;  ('ii') disconnect or
block ANIs, circuits,  or other Service Elements;  (iv) discontinue  Promotional
Discounts and or international  discount rates for Services  provided until such
time as Customer is in full compliance with this Agreement; and/or (v) terminate
this Agreement without notice.

4.3. Upon  termination  of this Agreement a Party may recover from the other all
sums it is owed at the tine of termination.

5. TERMINATION WITHOUT CAUSE: EARLY TERMINATION CHARGE

5.1.  Customer may  terminate  this  Agreement at any time without cause upon 90
days  prior  written  notice  to  Sprint  and  payment  to  Sprint  of the Early
Termination  Charge described in Subparagraph  5.2. Service will be discontinued
the first business day of the fourth month after such notice of termination.

5.2. Sprint Wholesale Solution Base Rates and Promotional Discounts are based on
Customer's agreement to purchase Service for the entire Term. It is difficult if
not impossible to calculate  Sprint's loss if Customer  terminates the Agreement
pursuant to  Subparagraph  5.1 or breaches the Agreement prior to the end of the
Term.  Therefore,  to  compensate  Sprint for such  loss,  and not as a penalty,
Customer  shall  pay  Sprint  an Early  Termination  Charge in the event of such
termination or breach.  The Early Termination  Charge shall equal 50% of the sum
of the Minimum  Commitment for each month  remaining in the Term when Service is
discontinued  pursuant  to  Subparagraph  5.1 or  terminated  due to  Customer's
breach.  The Early  Termination  Charge  shall be paid  within 30 days after the
notice provided pursuant to Subparagraph 5. 1.

6. APPLICATION OF TARIFFS AND SPRINT SCHEDULES: INTERSTATE ADJUSTMENT.

6.1.  Interstate and  international  Service shall be provided  pursuant to this
Agreement and Sprint Schedules.  The Parties intend for the terms and conditions
of this  Agreement and the Sprint  Schedules to be consistent  with one another,
and any  interpretation  should be made so as to avoid any  inconsistency to the
extent possible. In the event of a conflict,  between this Agreement's terms and
conditions and the Sprint Schedules,  this Agreement's terms and conditions will
control. The fact that a condition,  right,  obligation or other term appears in
this Agreement's terms and conditions,  or in the Sprint  Schedules,  but not in
each, will not be interpreted as, or be deemed grounds for finding, a conflict.

6.2.  Intrastate  Service  is  provided  pursuant  to Tariff  in every  respect.
Promotional  Discounts  will not  apply to  intrastate  Service.  An  Interstate
Adjustment may be applied based on intrastate usage as provided in Attachment D.
The  Interstate  Adjustment  shall be based on  intrastate  usage at the Product
Hierarchy  Level and will equal the difference  between (a) such usage priced at
Tariff  less  Tariff  discounts  and (b) such  usage  priced  at the  Interstate
Adjustment  Rate in Attachment D less  Discount One  discounts.  The  Interstate
Adjustment for a given month shall not exceed interstate billing for such month.

6.3.  Customer  shall pay all  applicable  Tariff  and Sprint  Schedule  charges
including,  but not limited to, fixed charges,  feature  charges,  enhanced Toll
Free charges,  access facility charges, and installation and other non-recurring

<PAGE>

charges. Additionally,  Customer will pay, in accordance with applicable Tariffs
and Sprint Schedules, any taxes, levies,  surcharges, or other costs that Sprint
is obligated to pay to any  governmental  entity or other third party,  provided
that (i)  such  obligation  is  imposed  by  valid  and  lawful  legislation  or
regulation, and (ii) such obligation arises out of the use of Sprint's services.

6.4.  Sprint may modify or  withdraw  Tariffs or Sprint  Schedules  from time to
time,  which  may  include  discontinuation  of  any  Service  without  Sprint's
liability.  In the event that a Service is discontinued and such discontinuation
materially  and  adversely  affects   Customer's   ability  to  do  business  as
anticipated in this  Agreement,  then Customer may terminate this Agreement upon
thirty  (30)  days  written  notice to Sprint  without  liability  for the Early
Termination  Charge,  but must repay to Sprint a prorata  portion of any credits
issued under this Agreement based on the number of months remaining in the Term.

6.5. In the event Sprint  withdraws its filed  Tariffs or. Sprint  Schedules the
Tariff or Sprint Schedules (as applicable) terms and conditions in effect on the
date of such  withdrawal  will  continue  to  apply  to  this  Agreement.  After
withdrawal  of the  applicable  Tariffs  or Sprint  Schedules,  the term of this
Agreement will control over any inconsistent  provision in the former Tariffs or
Sprint Schedules,  subject to standard contract interpretation rules. Tariffs or
Sprint Schedules not withdrawn shall continue to have the sane force and effect.

7. RELATIONSHIP OF PARTIES.  Neither this Agreement nor the provision of Service
may be  construed  to  constitute  or  create  an  association,  joint  venture,
partnership  or other  form of  legal  entity  or  business  enterprise  between
Customer and Sprint, its agents,  employees and/or  affiliates.  Customer is the
service  provider  with  respect  to End Users.  Sprint is merely a supplier  to
Customer with no relationship to End Users.

8. USE OF NAME AND MARKS.

8.1. This Agreement confers no right to use the name, service marks, trademarks,
copyrights,  patents or CIC of either Party except as expressly provided herein.
Neither  Party  shall take any action  which  would  compromise  the  registered
copyrights  or service  marks of the other.  Sprint's  name is  proprietary  and
nothing herein  constitutes a general license  authorizing its use. Customer may
not:  (a) promote or advertise  Sprint's  name or  capabilities  to End Users or
prospective  End Users;  (b) attempt to sell its service using Sprint's name; or
(c)  represent to End Users or  prospective  End Users that they would be Sprint
customers or that they may obtain Sprint service from Customer.

8.2. Sprint shall provide Customer written notice of a breach of this paragraph.
Customer  shall use its best efforts to immediately  cure such breach,  advising
Sprint of such corrective  action.  If, in Sprint's  opinion,  Customer fails to
effect a cure within 15 days of Sprint's notice, then Sprint may, at its option,
terminate the Agreement pursuant to Subparagraph 4.2.

8.3.  Sprint's  provision of Switched  Outbound  Service may result in End Users
being notified by their LEC that Sprint is their designated PIC.  Therefore,  to
avoid confusion and potential  "slamming"  complaints,  Sprint hereby authorizes
Customer to use  Sprint's  name under the  following  conditions  to provide End
Users from whom  Customer has obtained a PIC  Authorization  with a  fulfillment
piece containing the following Notice (the "Notice"):

     We want to affirm how __ will provide your long distance service.  Although
     __will  provide your invoice and customer  service,  we use major  national
     carriers to actually carry your long distance calls.

     After subscribing to our service, you .may receive a notice from your local
     phone  company  which says that your long  distance  "Carrier of Choice" is
     Sprint. __has selected Sprint as the long distance network provider it will
     use to handle  your calls.  That  selection  was based on your  quality and
     price requirements. If you have any questions about your order, please call
     our toll free customer service number, 1-__-___.

8.4. If Customer  subscribes to Switched Outbound,  calls placed by End Users to
the Sprint  access  number will be answered  "Sprint  operator."  This may cause
confusion  if the End User  does not know its calls  are  being  carried  on the
Sprint network.  Therefore,  to avoid such confusion,  Sprint hereby  authorizes
Customer to provide End Users who use Sprint  Express with a  fulfillment  piece
containing the following  notice (the "Sprint Express  Notice"):  "International
call  origination  may be provided by a Sprint  operator."  Sprint may  withdraw
consent to use the Sprint Express Notice upon 10 days written notice.

9. SERVICE. Services provided hereunder are described in Exhibit 2.

10. LEGAL COMPLIANCE: REMEDIES FOR NON-COMPLLANCR.

10.1.  Customer  represents  and warrants  that (a) it has obtained  appropriate
certificates  of public  convenience  and  necessity,  licenses and all required
regulatory  approvals and that it is legally  authorized  to provide  service as
contemplated  under the terms and  conditions of this  Agreement and (b) it will
immediately  notify Sprint in the event such certificates of public  convenience
and  necessity,  licenses  or other  required  regulatory  approvals  should  be
revoked, suspended or, for whatever reason, cease to be effective.

10.2.  Customer's  failure to comply with paragraph 10.1 above will constitute a
material  breach of this Agreement and Sprint may reject End User ANIs submitted
by Customer for placement  under its account  and/or  terminate  this  Agreement
immediately.  Sprint will resume  accepting  ANIs only after  Customer  produces
evidence satisfactory to Sprint that it is in compliance with paragraph

11. CUSTOMER DUTIES, OBLIGATIONS AND RESPONSIBILITIES,

11.1.  Customer will not be relieved of any duty,  obligation or  responsibility
hereunder due to the fact that Service is ultimately provided to End Users.

11.2.  Customer  represents and warrants that it will comply with all applicable
laws and  applicable  rules and  regulations  promulgated  by federal  and state
regulatory   agencies,   including,   but  not  limited  to,  those   concerning
interexchange  carrier selection.  Customer represents and warrants that it will
not  submit to  Sprint  an End User ANI for  activation  without  obtaining  and
maintaining a proper PIC Authorization that complies with all applicable federal
and state laws,  rules and  regulations.  Customer  shall  produce for  Sprint's
inspection,  at Customer's expense,  any PIC Authorization within 48 hours after
Sprint's oral or written request, or within any shorter period required by a LEC
or regulatory agency.

11.3. Customer's failure to comply with paragraph 11.2 above will constitute a
material breach of this Agreement and Sprint may refuse to activate additional
ANIs under Customer's account and/or terminate this Agreement immediately.
Sprint will resume accepting ANIs only after Customer produces evidence
satisfactory to Sprint that it is in compliance with paragraph 11.2.

11.4.  Customer  will  reimburse  Sprint  for any charge  assessed  by a LEC for
processing a PIC change due to a Customer initiated dispute.

                                       2
<PAGE>

11.5.  Customer  will defend at Sprint's  request,  indemnify  and hold harmless
sprint and each of its officers, directors,  employees and agents against and in
respect  of any  loss,  debt,  liability,  damage,  obligation,  claim,  demand,
judgment of  settlement of any nature of kind,  known or unknown,  liquidated or
unliquidated,  including without  limitation,  all reasonable costs and expenses
incurred (legal, accounting or otherwise) (collectively,  "Damages") arising out
of,  resulting  from or based upon any pending or threatened  complaint,  claim,
action,  proceeding or suit by any third party (a "Claim")  alleging  Customer's
violation of any law or any rule or regulation of a federal or state  regulatory
agency,  including,  but not limited to, those laws,  rules and regulations with
respect  to the  unauthorized  switch of an End User's  preferred  interexchange
carrier ("slamming")

11.6.  Customer will be solely  responsible for End User  solicitation,  service
requests,  creditworthiness,  customer service, billing and collection. Customer
remains  responsible  for  compliance  with all  terms  and  conditions  of this
Agreement,  including.  but not limited  to,  payment  responsibilities  without
regard to  Customer's  ability  to charge for  Services  used by End Users or to
collect payment from End-Users.

11.7. Customer will be financially responsible for usage generated by each End
User ANI activated by Sprint until such ANI is presubscribed to another IXC.
Customer may request Sprint to block Network Extension Service to an ANI upon
the End User's failure to pay Customer, subject to Customer's prior
certification to Sprint that it has given the End User any notice required by
any applicable statute, rule or regulation. Customer will reimburse Sprint for
expenses incurred to block an ANI.

11.8. Customer will be solely responsible for amounts it cannot collect from End
Users including all fraudulent charges and for billing adjustments it grants End
Users, including adjustments for fraudulent charges, directory assistance or any
other form of credit.

11.9.  Customer will comply with Sprint's network  interface  procedures when it
orders it own access facilities.

11.10. The minimum  installation  and disconnect  intervals for switched Service
Elements is 15 calendar days and for dedicated  Service  Elements is 35 calendar
days.

12. SERVICE  ACTIVATION.  Sprint will use reasonable efforts to provide switched
Service  within  15 days,  and  dedicated  Service  within  30  days,  following
Customer's  order,  or the requested  delivery date,  whichever is later.  These
installation  objectives  will be  extended  by the  tine it  takes  to  address
activation  errors or obtain from Customer a complete and accurate  order or PIC
Authorization.  Customer shall  reimburse  Sprint for LEC imposed fees resulting
from a request to expedite Service.

13. PRICING: FORWARD PRICING: GENERAL CONDITIONS.

13.1.  Pricing.  Sprint Wholesale Solution Base Rates and Promotional  Discounts
are contained in the Attachments hereto.

13.2. Prices in Lieu of Other Discounts:  Sprint.  Wholesale Solution Base Rates
and  Promotional  Discounts  arc  extended in lieu of any other  Tariff,  Sprint
Schedule or  contractual  discount,  special  pricing,  or  discount  term plan.
Discounts upon discounts are only permitted if expressly provided for herein.

13.3. Prices Contingent on Performance. Sprint Wholesale Solution Base Rates and
Promotional Discounts are contingent on Customer's full performance of all terms
of the Agreement If Customer fails to pay the  undisputed  portion of an invoice
pursuant  to  Paragraph  17,  Sprint may, at its option and in addition to other
remedies  available in law or equity,  take one or more of the following  steps:
(i) refuse to accept additional  orders for Service;  (ii) refuse to install new
Service.  types or Service locations;  (iii) disconnect or block ANIs, circuits,
or other Service Elements for which full payment has not been made;  and/or (iv)
discontinue  Promotional  Discounts  for  Services  provided  until such time as
Customer is in full compliance with Paragraph 17 of this Agreement

13.4.  Per Minute  Charges.  Sprint  Wholesale  Solution Base Rates are invoiced
based on Per Minute Charges utilizing the Rate Periods and Billing Increments in
Attachment B.

13.5.  Non-Bell  Switched  Origination,  Termination  and Toll Free  Origination
Charges.  Customer  shall pay the charges  specified  in  Attachment  B for each
origination  minute  and each  termination  minute  of an  interstate  call that
originates and/or terminates in a Non-dell Service Area.

13.6.  Switched  Origination.  and Termination  Charges.  Customer shall pay the
charges  specified  in  Attachment  B  for  each  originating  minute  and  each
terminating minute of as interstate call.

13.7.  Promotional  Pricing  Levels.  Customer  will  receive  Discount  One and
Discount Two discounts  applied only to Rate Elements as provided in Attachments
C and D.

13.8. Forward Pricing. As a transition to the pricing hereunder, Discount Two
discounts may be based for a period of time on the greater of Customer's actual
Discount Two Monthly Volume of Service or a specified Forward Pricing Volume of
Service. The Forward Pricing Volume of Service and the period during which it
may be applied are specified in Attachment A.

14. SURCHARGES.

14.1. Minimum Commitment Surcharge. For any period which Customer fails to meet
the Minimum Commitment stated on Attachment Customer shall pay a surcharge for
Service provided during such period equal to 25% of the difference between the
Minimum Commitment for such period and Customer's actual Net Usage during such
period. Customer's _ satisfaction of the Minimum Commitment shall not relieve
Customer of a credit or security obligations set forth in this Agreement.

14.2. LEC Cap Surcharge.  Any month Customer exceeds the Maximum Non-Bell Tragic
Percentage  specified in Attachment B for any Service type,  Customer  shall pay
Sprint the per minute  surcharge for such Service  specified in Attachment B for
each minute above the Maximum Non-Bell  Traffic  Percentage that originates from
or terminates to a Non-Bell Service Area.  Maximum Non-Bell Traffic  Percentages
will be calculated independently for originating and terminating minutes at each
Product Hierarchy Level.

14.3.  Minimum Average Time Requirement  Surcharge.  Any month Customer fails to
equal or exceed the Minimum Average Time  Requirement  specified in Attachment B
for Services  specified in Attachment  B, then  Customer  shall pay Sprint a per
minute surcharge on such usage equal to (a) the per minute  surcharge  specified
in  Attachment  B  multiplied  by (b) the  difference  between (i) the number of
minutes  the  Service  was used and (ii) the number of calls  using the  Service
multiplied by the Minimum  Average Time  Requirement.  This  surcharge  shall be
calculated at each Product Hierarchy Level.

14.4.  Noncomplete  Call  Surcharge.  Any month  Customer  exceeds  the  Maximum
Noncomplete  Toll Free Call Percentage for interstate  Dedicated Toll Free, Toll
Free  Extension,  and/or  interstate  Switched  Toll Free  traffic  as stated on
Attachment B, Customer shall pay Sprint a surcharge equal to the amount state in
Attachment  B of each  Noncomplete  Toll  Free  Call in  excess  of the  Maximum
Noncomplete  Toll Free Call  Percentage.  This surcharge  shall be calculated at
each Product Hierarchy level.

                                       3
<PAGE>
14.5. Minimum Port Usage Surcharge.  Any month Customer fails to equal or exceed
the  Minimum  Port usage per  Active  Dedicated  Outbound  Port  (calculated  as
Customer's actual Net Usage for Dedicated Outbound Service divided by Customer's
total number of Active Dedicated Outbound Ports at each Product Hierarchy Level)
as  stated  on  Attachment  A,  Customer  shall pay  Sprint a  surcharge  on its
Dedicated  Outbound Service usage equal to the difference between (a) Customer's
actual Net Usage for Dedicated  Outbound  Service and (b) the Minimum Port Usage
multiplied by the total number of Active Dedicated Outbound Ports.

15. SERVICE CHARGES.  For each End User ANI or Toll Face number Customer submits
for activation  that requires  Sprint to disconnect or transfer such ANI or Toll
Free number from Sprint's  data base before  placing it within  Customer's  CTIS
hierarchy,   Customer   will  pay  to  Sprint  a  service   charge  of   $25.00.
Notwithstanding the foregoing, the service charge described in this paragraph 15
will be waived if such ANIs, or Toll Free numbers do not exceed 15% of the total
ANIs or Toll Free numbers submitted by Customer during the immediately preceding
ninety (90) days.

16. SPECIAL RATE ADJUSTMENTS.

16.1.  Sprint  may adjust the price of  Service  provided  hereunder  to reflect
changes in  international  cost of service or  currency  exchange  rates.  Price
decreases will be effective as stated in notice to Customer or immediately  upon
notification  if no specific  effective date is noted.  Price  increases will be
effective upon 5 days' notice to Customer.

17. PAYMENT FOR SERVICE.

17.1. Payment Obligation.  Customer shall pay Sprint for Service pursuant to the
terms of this Agreement and applicable Tariffs and Sprint Schedules.

17.2. Call Detail.  Sprint will provide  Customer with a Carrier  Transport Call
Detail  Record file  containing  Customer's  Service  usage.  Sprint may, at its
option and  without  liability  to  Customer,  modify the format of the  Carrier
Transport  Call  Detail  Record  file upon sixty,  (60) days  written  notice to
Customer.

17.3.  Payment  Procedure.  Sprint will  invoice  Customer  monthly for Services
provided  hereunder.  Invoices  shall be due and  payable  upon thirty days from
invoice date. All undisputed charges for Services provided that remain unpaid by
Customer  for a period of thirty (30) days or more after the daft of the invoice
will be subject to interest  from the date of the invoice at a rate of up to one
and  one-half  percent  (1-1/2%)  per month,  or the maximum  rate  allowable by
applicable  law. If Customer  fails to pay for services in  accordance  with the
terms set forth in this  Section,  Sprint  may, at its option and in addition to
other  remedies  available in law or equity,  take one or more of the  following
steps:  (i) refuse to accept  additional  orders  for  Service;  (ii)  refuse to
install new Service types or Service locations;  (iii) disconnect or block ANIs,
circuits,  or other  Service  Elements for which full payment has not been made;
and/or (iv) discontinue  Promotional  Discounts for Services provided until such
time as  Customer is in full  compliance  with this  Paragraph  17. The price of
Service  is  exclusive  of  applicable  taxes.  Resale  Solution  Base Rates and
Promotional   Discounts  are  contingent  on  Customer   providing  Sprint  with
certificates from appropriate taxing  authorities  exempting Customer from taxes
that would otherwise be invoiced hereunder.

17.4. Billing Disputes.  In the event Customer, in good faith, disputes Sprint's
computation  of amounts due and owing  within all  applicable  legal  periods of
limitation,  Customer may withhold payment of the disputed amount. Customer must
pay all charges  which are not in dispute in  accordance  with the payment terms
set forth in this Section.  An amount will not be considered  "in dispute" until
Customer has provided. Sprint with written documentation explaining the disputed
amount and  describing  the  KPCT0198  CT062602  Factual  and legal basis of the
dispute.   Customer   must   cooperate   with  Sprint  to  resolve  any  dispute
expeditiously.  All  disputed  amounts  are due  and  payable  immediately  upon
Sprint's written denial of the dispute.

18. PAYMENT SECURITY.  Provision of Service is contingent on credit. approval by
Sprint.  Upon request by Sprint,  Customer  shall provide  Sprint with financial
statements  or  other   indications   of   Customer's   financial  and  business
circumstances.  If  Customer's  financial or business  circumstances  or payment
history is or, during the Term; becomes  unacceptable to Sprint, then Sprint may
require a  deposit,  irrevocable  letter of  credit  or other  form of  security
acceptable to Sprint. Customer's failure to provide such security within 10 days
following   Sprint's   reasonable  request  shall  constitute  a  default  under
Subparagraph 4.2.

19. PROPERTY AND PERSONAL INJURY INDEMNIFICATION Each Party agrees to indemnify,
hold harmless, and defend the other Party, its directors,  officers,  employees,
agents and their  successors  and  assigns  from and against any and all claims,
demands, causes of action, losses, damages,  expenses or liabilities,  including
costs and  reasonable  attorney's  fees,  arising  out of  claims  made by third
parties for personal  injury (or death) or loss or damage to personal  property,
arising  out of or related to the  negligent  or willful  misconduct,  errors or
omissions, of the indemnifying Party or its subcontractor,  directors, officers,
employees, agents or representatives.  Claims made by employees of a Party which
are covered under  applicable  workers'  compensation  laws are not  indemnified
hereunder.

20. PROPRIETARY  RIGHTS INDEMNITY.  If Customer is made the subject of any claim
or lawsuit by reason of its use of the Services provided  hereunder based on the
allegation that the Service as provided by Sprint constitutes an infringement of
any third party  patent,  copyright or trade  secret,  enforceable  in countries
ratifying the Borne Convention,  Customer will promptly notify Sprint thereof in
writing.  Sprint will defend and  indemnify  Customer  against all such  claims,
demands, and causes of action based on the actual or alleged infringement of any
such third party right.  The indemnities set forth in this Section will include,
without  limitation,  all  penalties,   awards  and  judgments,  all  court  and
arbitration  costs,  attorney's fees and other  out-of-pocket  costs  reasonably
incurred in connection  with such claims,  demands and causes of action.  Sprint
will have sole  discretion to settle or compromise such claim or lawsuit without
the written  consent of Customer  provided.  that such  settlement or compromise
does- not require Customer to make any payment not indemnified  Sprint will have
the sole right to retain  and  select  counsel to  represent  its  interests  in
defending any such claim or litigation as part of its indemnification obligation
hereunder.  Sprint will not reimburse Customer for its attorneys' fees and costs
in connection with Customer's separate retention of counsel,  unless Sprint will
have wrongly failed to defend and indemnify Customer.

If any action results in a final injunction against Customer with respect to the
Services provided pursuant to this Agreement,  Sprint agrees that it will at its
option  and its sole  expense,  either (1)  procure  for  Customer  the right to
continue using the infringing Services or (2) replace of modify the same so that
it becomes  non-infringing  or (3)  substitute  for the Services  non-infringing
replacement  Services  having a capability  equivalent to the Services  provided
herein. If none of the foregoing alternatives is reasonably available to Sprint,
then  Customer  will have the right to terminate  the affected  portions of this
Agreement  Sprint will have no liability  under this indemnity  provision to the
extent the claim is based on a use, a  modification,  or a combination of Sprint
Services with products, goods or services not directly provided by Sprint.

21. LIMITATION OF LIABILITY.

21.1 SPRINT'S ENTIRE LIABILITY  RESULTING FROM ITS FAILURE TO PERFORM ANY OF ITS
OBLIGATIONS UNDER THIS AGREEMENT IN NO EVENT WILL EXCEED AN AMOUNT EQUAL  TO THE

                                       4
<PAGE>

NET USAGE  CHARGES  PAID TO  SPRINTBY  CUSTOMER  DURING  THE  THREE,  (3) MONTHS
IMMEDIATELY  PRECEDING THE EVENT OUT OF WHICH THE LIABILITY  AROSE.  SPRINT WILL
NOT BE LIABLE FOR ANY UNAVOIDABLE DAMAGE TO CUSTOMER'S PREMISES.

21.2 IN NO EVENT WILL  SPRINT BE LIABLE  FOR ANY  CONSEQUENTIAL,  INCIDENTAL  OR
INDIRECT DAMAGES FOR ANY CAUSE OF ACTION, WHEN IN CONTRACT OR TORT.  INCIDENTAL,
CONSEQUENTIAL, OR INDIRECT DAMAGES INCLUDE, BUT ARE NOT LIMITED T0, LOST PROFITS
OR REVENUES AND LOSS OF BUSINESS OPPORTUNITY, WHETHER OR NOT SPRINT WAS AWARE OR
SHOULD HAVE BEEN AWARE OF THE POSSIBILITY OF SUCH DAMAGES.

21.3 WITH RESPECT TO THE SERVICES,  MATERIALS AND EQUIPMENT PROVIDED  HEREUNDER,
SPRINT  HEREBY  DISCLAIMS ALL  WARRANTIES,  EXPRESS OR IMPLIED,  NOT  EXPLICITLY
STATED  IN  THE  AGREEMENT,  AND  IN  PARTICULAR  DISCLAIMS  ALL  WARRANTIES  OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

22.  ARBITRATION.  Any dispute arising out of or rating to the Agreement may, at
the option of the Parties,  be finally  settled by  arbitration.  If the Parties
elect arbitration,  such arbitration will be in accordance with the rules of the
American Arbitration Association. The arbitration will be governed by the United
States  Arbitration Act, 9 U.S.C.  Sec. 1, ct. seq., and judgment upon the award
rendered by the arbitrators) may be entered by any court with jurisdiction.  The
arbitration will be held in the Kansas City, MO metropolitan area.

23.  NOTICES.  All notices or other  communications  required or permitted under
this  Agreement  (excluding  invoices)  will be in  writing  and  sent  by:  (a)
facsimile with a copy sent by regular or overnight  mail; or (b) certified mail;
or (e)  overnight  mail;  or (d)  electronic  mail,  addressed to the Parties as
follows:

 If to Sprint:  Sprint Communications Company L.P.
                Attention: Vice President-Wholesale Services
                2002 Edmund Halley Drive
                Reston, VA 20191-3436
With copy to:   Sprint Communications Company L.P.
                Attn: Law Dept.- Marketing & Sales (Business)
                KySOPHT0101-22525
                6391 Sprint Parkway
                Overland Park, KS 66251-2525
If to Customer. Norstan Network Services, Inc.
                Attn: Mike Kempffer
                5101 Shady Oak Road
                Minnetonka, MN 55343
                Email: mjkempffer@nortan.com

24.  ASSIGNMENT.  Customer  may not  assign or  delegate  its  responsibilities,
duties, rights or obligations under this Agreement to any person, corporation or
other  entity  without the  written  consent of Sprint,  such  consent not to be
unreasonably withheld.

25. EXCUSABLE DELAY.

25.1 Except for the performance of obligations set forth in Paragraphs 17 and 18
of this  Agreement,  Sprint  and  Customer  agree  that  neither  Party  will be
responsible  for any delay,  interruption  or other failure to perform  KPCT0198
CT062602 hereunder due to acts beyond the control of the responsible Party. Such
acts include,  but are not limited to,  natural  disasters  such as  lightening,
earthquakes,   hurricanes,  floods  or  other  like  causes;  war,  riot,  civil
commotion; cable cuts; explosion or fire; embargoes,  strikes or labor disputes;
or decrees of governmental entities.

25.2 The affected  Party will give notice to the other Party in the event of any
of the  foregoing  occurrences.  Upon such  notice,  Sprint  may cancel or delay
performance  for as long as such  performance  is delayed by such  occurrence or
occurrences,  and in such event will have no liability to Customer.  Should such
occurrence  continue for more than 60 days and adversely and  materially  impact
the other party, such other party may terminate this Agreement without liability
upon payment for all Services  delivered prior to the date of such  termination,
plus all other charges and costs then incurred.

26. HEADINGS. The headings set forth in this Agreement are for purposes of
reference only and do not in any way limit or otherwise affect the meaning or
interpretation of any of the terms of this Agreement Y '

27. CHOICE OF LAW. This  Agreement and all claims  relating to the  relationship
between Sprint and Customer,  including all claims in tort, contract,  at law or
in equity will be governed by, construed, enforced and interpreted in accordance
with the  laws of the  state of  Kansas  without  regard  to the  choice  of law
principles thereof.

28. RULES OF  CONSTRUCTION.  No rule of  construction  requiring  interpretation
against the draftsman shall apply in the interpretation of this Agreement.

29.  MODIFICATION  OF AGREEMENT.  This Agreement may be modified only by written
amendment,  executed  by officers of  Customer  and Sprint.  Any oral  agreement
contrary to the terms of any Service  Agreement  will not be  admissible  in any
dispute,  whether  in a  court  of law  or in  arbitration.  SPRINT  PROPRIETARY
INFORMATION

30. WAIVER OF TERMS. If either Patty fails, at any time, to enforce any right or
remedy available to it under this Agreement,  that failure will not be construed
to be a waiver of the  right or  remedy  with  respect  to any  other  breach or
failure by the other Party.

31. PARTIAL INVALIDITY. In the event any of the provisions of this Agreement are
held to be invalid, illegal, or unenforceable, the unaffected provisions of this
Agreement  will be  unimpaired  and remain in full force and effect.  Sprint and
Customer will negotiate to substitute for such invalid, illegal or unenforceable
provision a mutually acceptable provision consistent with the original intention
of the Parties

32.  CUMULATIVE  REMEDIES.  Except as otherwise  provided  herein,  the remedies
provided for in this Agreement arc in addition to any other  remedies  available
at law or in equity.

33. ENTIRE AGREEMENT. This Agreement,  including Exhibits,  Attachments, and the
documents   and   instruments   referred  to  herein,   constitute   the  entire
understanding  between the Parties relating to its subject matter and supersedes
all  prior  or  contemporaneous  negotiations  or  agreements,  whether  oral or
written,  relating to the subject matters hereof, including, but not limited to,
the Carrier  Transport  Switched  Services  Agreement between Sprint and Norstan
Network  Services  signed by Customer on August 14, 1998 and Sprint on September
4, 1998. Customer is not relying upon any representations or promises made by or
on behalf of Sprint in entering into this Agreement

34.  EXPIRATION OF OFFER.  Sprint's offer to enter, into this Agreement shall be
withdrawn if the Agreement is not executed by both Parties  within 45 days after
the Proposal Date stated on Attachment A.

                                       5

EXECUTED and made effective when signed below by both parties.

NORSTAN NETWORK SERVICES        SPRINT COMMUNICATIONS COMPANY L.P.

By: /s/ Scott Foote                 by:  /s/ Art Macdowell
        Scott Foote                          Art Macdowell
Title: President                Vice President, Wholesale Services Group
Date 7/25/02

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