Document:

<PAGE>   1

                                                                  EXHIBIT 10D(5)

                           FIFTH AMENDMENT TO AMENDED
                          AND RESTATED CREDIT AGREEMENT

         THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT is dated
as of June 29, 2001 ("this Amendment"), by and among NORSTAN, INC., a Minnesota
corporation (the "Borrower"), the banks which are signatories hereto (each
individually, a "Bank," and collectively, the "Banks"), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, one of the Banks, as agent for the
Banks (in such capacity, the "Agent").

                                    RECITALS

         A. The Borrower, the Banks and the Agent are parties to an Amended and
Restated Credit Agreement dated as of December 20, 2000, as amended by a First
Amendment to Amended and Restated Credit Agreement dated as of March 19, 2001,
as amended by a Second Amendment to Amended and Restated Credit Agreement dated
as of March 30, 2001, as amended by a Third Amendment to Amended and Restated
Credit Agreement dated as of April 4, 2001 and as amended by a Fourth Amendment
to Amended and Restated Credit Agreement dated as of May 15, 2001 (as amended,
the "Credit Agreement").

         B. The Borrower has requested that the Banks agree to amend certain
provisions of the Credit Agreement as set forth in this Amendment.

         NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

         Section 1. Definitions. Capitalized terms used herein and not otherwise
defined herein, but which are defined in the Credit Agreement, shall have the
meanings ascribed to such terms in the Credit Agreement unless the context
otherwise requires.

         Section 2. Amendments to Credit Agreement. Subject to Section 5 hereof,
the Credit Agreement is hereby amended as follows:

                  (a) Amended Definitions. Section 1.1 of the Credit Agreement
         is amended by deleting the definitions of "Applicable Margin",
         "Borrowing Base Supplement", "Excess Cash Flow", "Existing Letter of
         Credit", "Holding Account", "Loan", "Note", "Obligations", "Revolving
         Commitment Amount", "Revolving Outstandings", "Term C Loan", "Term C
         Loan Commitment Amount", "Term Loan C Percentage", "Term C Note",
         "Total Percentage" and "Warrant Documents" as they appear therein and
         by inserting in such Section 1.1 the following definitions in the
         appropriate alphabetical order:

<PAGE>   2

                           "Additional Letter of Credit": Any irrevocable letter
                  of credit (other than the Existing Letter of Credit) issued by
                  the Agent pursuant to this Agreement for the account of the
                  Borrower.

                           "Average Monthly Revolver Availability": with respect
                  to any calendar month, (a) the sum of the amount, if any, by
                  which the lesser of the Aggregate Revolving Commitment Amounts
                  or the Borrowing Base, exceeds the Aggregate Revolving
                  Outstandings, in each case calculated as of the close of
                  business on each Friday contained in such month, divided by
                  (b) the number of Fridays contained in such month.

                           "Applicable Margin":  With respect to:

                           (a)      the Revolving Loans - 2.50%;

                           (b)      the Term A Loans - 2.50%; and

                           (c)      the Term B Loans - 4.00%; provided that,
                           from and after the date on which the Term A Loans
                           have been paid in full, the Applicable Margin for the
                           Term B Loans shall be permanently reduced to 2.50%.

                           "Bonus Payments": For any period of determination,
                  Employee bonuses under the Borrower's annual incentive plan
                  paid to management employees by the Borrower or any
                  Subsidiary.

                           "Borrowing Base Supplement": $7,500,000, provided
                  that (a) such amount shall be permanently reduced to an amount
                  not less than $5,000,000 by the aggregate amount of
                  prepayments applied to the Revolving Loans in accordance with
                  Sections 2.6(d), 5.16(b) and 5.18(b) and (b) if such amount
                  has not been earlier reduced to $5,000,000 pursuant to the
                  forgoing clause (a), such amount shall be permanently reduced
                  to $5,000,000 on and after October 15, 2001.

                           "Excess Cash Flow": As of the end of any fiscal year
                  of the Borrower, determined for such fiscal year on a
                  consolidated basis for the Borrower and its Subsidiaries in
                  accordance with GAAP, the remainder of

                                    (a) the sum, without duplication, of (i)
                           EBITDA for such period, and (ii) extraordinary cash
                           income, if any, business interruption insurance
                           proceeds, if any, and cash gains attributable to
                           sales of assets outside the ordinary course of
                           business (but net of taxes, expenses and reserves for
                           indemnification, and exclusive of any gains realized
                           in connection with any transaction contemplated by
                           Section 2.6(c) so long as the Net Proceeds of such
                           transaction are applied in the manner set forth in
                           Section 2.6(d)), if any, during such period to the
                           extent that any such extraordinary cash income, such
                           insurance proceeds or such cash gain is not included
                           in EBITDA for such period,

                           minus

                                      -2-
<PAGE>   3

                                    (b) the sum, without duplication, of (i)
                           income taxes paid in cash or accrued by the Borrower
                           or any Subsidiary during such period, (ii) the
                           aggregate amount of Capital Expenditures, if any (but
                           only to the extent such Capital Expenditures were
                           permissible under Section 6.8 during such period)
                           minus Indebtedness incurred to finance such Capital
                           Expenditures and secured solely by Liens on the
                           property acquired, and (iii) Interest Expense and
                           (iv) any payments made upon the Term A Loans or the
                           Term B Loans (other than prepayments applied to the
                           Term A Loans or the Term B Loans pursuant to Section
                           2.6(d)).

                           "Existing Letter of Credit": Letter of Credit No.
                  76528 in the original face amount of $3,500,000 issued by U.S.
                  Bank for the account of the Borrower in favor of Bank of
                  Montreal.

                           "Holding Account": A deposit account belonging to the
                  Agent for the benefit of the Banks into which the Borrower may
                  be required to make deposits pursuant to the provisions of
                  this Agreement, such account to be under the sole dominion and
                  control of the Agent and not subject to withdrawal by the
                  Borrower, with any amounts therein to be held for application
                  toward any drawings made under any Letter of Credit. The
                  Holding Account shall be a money market savings account or
                  substantial equivalent (or other appropriate investment medium
                  as the Borrower may from time to time request and to which the
                  Agent in its sole discretion shall have consented) and shall
                  bear interest in accordance with the terms of similar accounts
                  held by the Agent for its customers.

                           "Letter of Credit": The Existing Letter of Credit and
                  any Additional Letter of Credit.

                           "Loan": A Revolving Loan, a Term A Loan or a Term B
                  Loan.

                           "Note": A Term A Note, a Term B Note or a Revolving
                  Note.

                           "Obligations": The Borrower's obligations in respect
                  of the due and punctual payment of principal and interest
                  (including, without limitation and to the extent permitted by
                  law, interest accruing after the commencement of a case by or
                  against the Borrower under the United States Bankruptcy Code)
                  on the Notes and Unpaid Drawings when and as due, whether by
                  acceleration or otherwise and all fees (including Unused
                  Revolving Commitment Fees and Letter of Credit Fees),
                  expenses, indemnities, reimbursement and other obligations of
                  the Borrower under this Agreement, any other Borrower Loan
                  Document, and any letter of credit application and
                  reimbursement agreement executed and delivered by the Borrower
                  to U.S. Bank in connection with the issuance of any Letter of
                  Credit, in all cases whether now existing or hereafter arising
                  or incurred.

                           "Ratably": With respect to any unpaid installment
                  upon the Term A Loan or the Term B Loan, as applicable, the
                  amount equal to (a) the aggregate amount of any prepayment to
                  be applied pursuant to this Agreement to the Term A Loan

                                      -3-
<PAGE>   4

                  or the Term B Loan, as applicable, multiplied by (b) a
                  fraction, the numerator of which is the unpaid principal
                  balance of such installment payment and the denominator of
                  which is the aggregate unpaid principal balance of Term A Loan
                  or the Term B Loan, as applicable.

                           "Revolving Commitment Amount": With respect to a
                  Bank, initially the amount set opposite such Bank's name on
                  Schedule 1.1B hereto (as such Schedule may from time to time
                  be amended) as its Revolving Commitment Amount, but as the
                  same may be from time to time increased or reduced as provided
                  Section 2.8.

                           "Revolving Outstandings": As of any date of
                  determination with respect to any Bank, the sum of (a) the
                  aggregate unpaid principal balance of Advances outstanding
                  under such Bank's Revolving Note on such date, (b) an amount
                  equal to the aggregate stated amount of each Letter of Credit
                  multiplied by such Bank's Revolving Commitment Percentage, and
                  (c) an amount equal to the aggregate amount of Unpaid Drawings
                  on such date (after applying any funds held in the Holding
                  Account to the payment thereof) multiplied by such Bank's
                  Revolving Commitment Percentage.

                           "Stock": All shares, interests, participation or
                  other equivalents, however designated, of or in a corporation
                  or a limited liability company, whether or not voting,
                  including but not limited to common stock, member interests,
                  warrants, preferred stock, convertible debentures, and all
                  agreements, instruments and documents convertible, in whole or
                  in part, into any one or more or all of the foregoing.

                            "Subsequent Warrants": Warrants for the purchase of
                  100,000 shares of the Borrower's common stock issued upon the
                  effectiveness of the Fifth Amendment hereto ratably to the
                  Banks in accordance with their Revolving Commitment
                  Percentages.

                           "Subsequent Warrant Issuance Agreement": Second Round
                  Warrant Issuance Agreement dated as of the date of the Fifth
                  Amendment hereto between the Borrower and the Banks, as the
                  same may be amended, restated or otherwise modified from time
                  to time.

                           "Total Percentage": With respect to any Bank, the
                  percentage equivalent of a fraction, the numerator of which is
                  the sum of the Revolving Commitment Amount of such Bank (or,
                  if the Revolving Commitments have been terminated, the
                  Revolving Outstandings of such Bank), the outstanding Term A
                  Loans and Term B Loans of such Bank and the denominator of
                  which is the sum of the Aggregate Revolving Commitment Amounts
                  (or, if the Revolving Commitments have terminated, the
                  Aggregate Revolving Outstandings) and the outstanding Term A
                  Loans and Term B Loans of all the Banks.

                                      -4-
<PAGE>   5

                           "Warrant Documents": The Warrant Registration
                  Agreement, the Warrant Issuance Agreement, the Warrants, the
                  Subsequent Warrant Issuance Agreement and the Subsequent
                  Warrants.

                  (b) Term Loans. Sections 2.1(b), (c) and (d) of the Credit
         Agreement are deleted in their respective entireties and the following
         is substituted in lieu thereof:

                           (c) Term A Loans. Upon the Fifth Amendment Effective
                  Date, each Bank shall continue its ratable portion of
                  $20,000,000 of the Banks' existing term loans to the Borrower
                  as a term loan in an amount by such Bank equal to its Term A
                  Loan Commitment Amount (each being a "Term A Loan" and,
                  collectively, the "Term A Loans").

                           (d) Term B Loans. Upon the Fifth Amendment Effective
                  Date, each Bank shall continue its ratable portion of
                  $15,430,004.50 of the Banks' existing term loans to the
                  Borrower as a term loan in an amount by such Bank equal to its
                  Term B Loan Commitment Amount (each being a "Term B Loan" and,
                  collectively, the "Term B Loans").

                  (c) Notes. Section 2.3 of the Credit Agreement is deleted in
         its entirety and the following is substituted in lieu thereof:

                           Section 2.3 Notes. The Revolving Loans of each Bank
                  shall be evidenced by a single Revolving Note payable to the
                  order of such Bank in a principal amount equal to such Bank's
                  Revolving Commitment Amount originally in effect. The Term A
                  Loan of each Bank shall be evidenced by a Term A Note payable
                  to the order of such Bank in the principal amount equal to
                  such Bank's Term A Loan Commitment Amount. The Term B Loan of
                  each Bank shall be evidenced by a Term B Note payable to the
                  order of such Bank in the principal amount equal to such
                  Bank's Term B Loan Commitment Amount. Each Bank shall enter in
                  its ledgers and records the amount of its Term A Loan, its
                  Term B Loan, and each Revolving Loan, the various Advances
                  made and the payments made thereon, and each Bank is
                  authorized by the Borrower to enter on a schedule attached to
                  its Term A Note, Term B Note, or Revolving Note, as
                  appropriate, a record of such Term A Loan, Term B Loan,
                  Revolving Loans, Advances and payments; provided, however that
                  the failure by any Bank to make any such entry or any error in
                  making such entry shall not limit or otherwise affect the
                  obligation of the Borrower hereunder and on the Notes, and, in
                  all events (a) the principal amounts owing by the Borrower in
                  respect of the Revolving Notes shall be the aggregate amount
                  of all Revolving Loans made by the Banks less all payments of
                  principal thereof made by the Borrower, (b) the principal
                  amount owing by the Borrower in respect of the Term A Notes
                  shall be the aggregate amount of all Term A Loans made by the
                  Banks less all payments of principal thereof made by the
                  Borrower, and (c) the principal amount owing by the Borrower
                  in respect of the Term B Notes shall be the aggregate amount
                  of all Term B Loans made by the Banks less all payments of
                  principal thereof made by the Borrower.

                                      -5-
<PAGE>   6

                  (d) Repayments. Section 2.5 of the Credit Agreement is deleted
         in its entirety and the following is substituted in lieu thereof:

                           Section 2.5 Repayment; Payment to Holding Account.

                                    (a) Revolving Loans. The Revolving Loans,
                           together with all accrued and unpaid interest
                           thereon, shall be due and payable on the Termination
                           Date.

                                    (b) Term A Loan. The principal of the Term A
                           Loan shall be due and payable as follows:

                                             (i) an installment of $2,000,000
                                    due and payable on August 31, 2001;

                                             (ii) two equal installments of
                                    $1,000,000 due and payable on each of
                                    September 28, 2001 and October 31, 2001;

                                            (iii) five equal installments of
                                    $2,000,000 due and payable on each of
                                    November 30, 2001, December 31, 2001,
                                    January 31, 2002, February 28, 2002 and
                                    March 29, 2002;

                                             (iv) an installment of $3,000,000
                                    due and payable on April 30, 2002;

                                             (v) an installment of $1,000,000
                                    due and payable on May 31, 2002; and

                                             (vi) an installment of $2,000,000
                                    due and payable on June 28, 2002;

                           provided, however, that (y) any installment of
                           principal due on any date specified in the table
                           above shall be reduced by any prepayments of
                           principal applied to such installment pursuant to
                           this Agreement and (z) if the aggregate principal
                           amount outstanding under the Term A Loans as of the
                           date any principal payment is due is less than the
                           amount specified for such date in the table above,
                           then the principal amount payable on such date shall
                           be such amount outstanding.

                                    (c) Term B Loan. The principal of the Term B
                           Loan shall be due and payable as follows:

                                            (i) an installment of $2,000,000 due
                                    and payable on the earlier of (A) July 31,
                                    2002 and (B) the last Business Day of the
                                    first month following the month in which the
                                    Term A Loans have been paid in full;

                                      -6-
<PAGE>   7

                                            (ii) an installment of $1,000,000
                                    due and payable on the earlier of (A) August
                                    31, 2002 and (B) the last Business Day of
                                    the second month following the month in
                                    which the Term A Loans have been paid in
                                    full;

                                            (iii) an installment of $1,500,000
                                    due and payable on the earlier of (A)
                                    September 30, 2002 and (B) the last Business
                                    Day of the third month following the month
                                    in which the Term A Loans have been paid in
                                    full;

                                            (iv) an installment of $2,000,000
                                    due and payable on the earlier of (A)
                                    October 31, 2002 and (B) the last Business
                                    Day of the fourth month following the month
                                    in which the Term A Loans have been paid in
                                    full;

                                            (v) an installment of $2,000,000 due
                                    and payable on the earlier of (A) November
                                    29, 2002 and (B) the last Business Day of
                                    the fifth month following the month in which
                                    the Term A Loans have been paid in full; and

                                            (vi) an installment of $6,569,995.50
                                    due and payable on the earlier of (A)
                                    December 31, 2002 and (B) the last Business
                                    Day of the sixth month following the month
                                    in which the Term A Loans have been paid in
                                    full;

                           provided, however, that (x) any installment of
                           principal due on any date specified in the table
                           above shall be reduced by any prepayments applied to
                           such installment pursuant to this Agreement, (y) if
                           the aggregate principal amount outstanding under the
                           Term B Loans as of the date any principal payment is
                           due is less than the amount specified for such date
                           in the table above, then the principal amount payable
                           on such date shall be such amount outstanding and (z)
                           if the Term A Loan is paid in full on or prior to May
                           30, 2002, the Banks will consider in good faith any
                           proposal by the Borrower based upon its projections
                           of cash available for debt service to modify the
                           installment payments which would come due prior to
                           July 31, 2002 pursuant to the table above (provided
                           that no Bank shall be obligated to consider any such
                           proposal for more than 10 days beyond the Borrower's
                           initial written proposal and no Bank shall be
                           obligated to agree to modify such installment
                           payments, which modification shall be subject to the
                           prior written approval of each Bank in its sole
                           discretion).

                                    (d) Payment to Holding Account. The Borrower
                           shall pay to the Holding Account on the Termination
                           Date an amount equal to the aggregate face amount of
                           the Letters of Credit.

                  (e) Prepayments. Section 2.6 of the Credit Agreement is
         deleted in its entirety and the following is substituted in lieu
         thereof:

                                      -7-
<PAGE>   8

                           Section 2.6 Mandatory and Optional Prepayments.

                                    (a) Optional Prepayments. The Borrower may
                           prepay Loans, in whole or in part, at any time,
                           without premium or penalty. Amounts paid (unless
                           following an acceleration or upon termination of the
                           Revolving Commitments in whole) or prepaid on
                           Revolving Loans under this Section 2.6 may be
                           reborrowed upon the terms and subject to the
                           conditions and limitations of this Agreement. Amounts
                           paid or prepaid on the Term A Loans or the Term B
                           Loans may not be reborrowed. Amounts paid or prepaid
                           on the Loans under this Section 2.6 shall be for the
                           account of each Bank in proportion to its share of
                           Loans being prepaid.

                                    (b) Mandatory Prepayment of Revolving Loans.

                                            (i) If at any time the Aggregate
                                    Revolving Outstandings exceed the Aggregate
                                    Revolving Commitment Amounts (including but
                                    not limited to any excess caused by a
                                    reduction in the Revolving Commitment
                                    Amounts pursuant to Section 2.8 hereof), the
                                    Borrower shall repay the Revolving Notes in
                                    an aggregate amount equal to such excess,
                                    which prepayment shall be apportioned among
                                    the Banks' Revolving Notes in accordance
                                    with their respective Revolving Outstandings
                                    Percentages.

                                             (ii) Prepayments on Revolving Loans
                                    shall be made in accordance with the
                                    provisions of Section 2.17(b).

                                    (c) Mandatory Prepayments Due to Certain
                           Transactions. Immediately upon the receipt thereof by
                           the Borrower or any Subsidiary, the Borrower shall
                           prepay the Loans in an aggregate amount of 100% of
                           the Net Proceeds received in cash by the Borrower or
                           any Subsidiary as a result of any of the following
                           events: (i) sales or other transfers of NFS Lease
                           Accounts and Norstan Canada Lease Accounts (other
                           than NFS Lease Accounts and Norstan Canada Lease
                           Accounts that, from and after the date of the Fifth
                           Amendment hereto, have been, substantially
                           contemporaneously upon the creation of such Account,
                           financed in the ordinary course of business by a
                           financer other than the Borrower or any Subsidiary),
                           and the related leases and equipment that are
                           authorized by Sections 6.2(d) and (e); (ii) sales of
                           any assets of the Borrower or any Subsidiary, other
                           than sales of inventory in the ordinary course of
                           business or sales of obsolete or worn-out equipment
                           (but this subsection 2.6(c) does not authorize any
                           such sales, which are subject to Section 6.2 hereof)
                           and other than sales of assets of the type specified
                           in the forgoing clause (i); or (iii) any public or
                           private sale or offering by the Borrower of its
                           capital stock or debt securities (but this subsection
                           2.6(c) does not authorize any such issuances, which
                           are subject to Sections 6.11 and 6.24 hereof).

                                      -8-
<PAGE>   9

                                    (d) Application of Prepayments Under Section
                           2.6(c). Any prepayments made pursuant to Section
                           2.6(c) shall be applied in the following order by the
                           Agent to the Loans ratably to each Bank according to
                           its Revolving Commitment Percentage, Term A Loan
                           Percentage or Term B Loan Percentage, as applicable:

                                            (i) with respect to Net Proceeds of
                                    transactions of the type specified in the
                                    clauses (i) and (iii) of Section 2.6(c), (a)
                                    an amount equal to the lesser of 25% of such
                                    Net Proceeds and the unpaid balance of the
                                    Revolving Loans, shall be applied to the
                                    Revolving Loans (other than the
                                    reimbursement obligations with respect to
                                    the Letters of Credit), and (b) an amount
                                    equal to the greater of 75% of such Net
                                    Proceeds or the amount remaining of such Net
                                    Proceeds following payment in full of the
                                    Revolving Loans, shall be applied (w) first,
                                    Ratably to the unpaid installments upon Term
                                    A Loan, (x) second, Ratably to the unpaid
                                    installments upon the Term B Loan (y) third,
                                    to the unpaid principal balance of the
                                    Revolving Loans (other than reimbursement
                                    obligations with respect to letters of
                                    credit), and (z) fourth, to the Holding
                                    Account in the amount of the aggregate face
                                    amount of the Letters of Credit.

                                            (ii) with respect to Net Proceeds of
                                    transactions of the type specified in clause
                                    (ii) of Section 2.6(c), (a) an amount equal
                                    to the lesser of 75% of such Net Proceeds
                                    and the unpaid balance of the Term A Loans,
                                    shall be applied Ratably to the unpaid
                                    installments upon the Term A Loans, (b) an
                                    amount equal to the greater of 25% of such
                                    Net Proceeds and the amount remaining of
                                    such Net Proceeds following payment in full
                                    of the Term A Loans, shall be applied (x)
                                    first, Ratably to the unpaid installments
                                    upon the Term B Loan, (y) second, to the
                                    unpaid principal balance of the Revolving
                                    Loans (other than the reimbursement
                                    obligations with respect to the Letters of
                                    Credit), and (z) third, to the Holding
                                    Account in the amount of the aggregate face
                                    amount of the Letters of Credit.

                                    (e) Average Monthly Revolving Availability.
                           If, for any calendar month (commencing with the
                           calendar month ending on July 31, 2001), the Average
                           Monthly Revolving Availability exceeds $10,000,000,
                           then, on or before the 10th calendar day of the next
                           following month, the Borrower shall prepay the Term A
                           Loan and Term B Loan in the amount of such excess.
                           Any such prepayments shall be applied (a) first,
                           Ratably to the unpaid installments upon the Term A
                           Loans and (b) second, Ratably to the unpaid
                           installments upon the Term B Loans.

                                    (f) Borrowing Base Deficiency. If at any
                           time a Borrowing Base Deficiency exists, the Borrower
                           shall immediately pay on the

                                      -9-
<PAGE>   10

                           principal of the Revolving Loans an amount equal to
                           such Borrowing Base Deficiency. Amounts paid on the
                           Revolving Loans under this Section 2.6(f) shall be
                           for the account of each Bank in proportion to its
                           share of outstanding Revolving Loans. If, after
                           paying all outstanding Revolving Loans, a Borrowing
                           Base Deficiency still exists, the Borrower shall pay
                           into the Holding Account an amount equal to the
                           amount of the remaining Borrowing Base Deficiency.

                                    (g) Excess Cash Flow. On or before 30 days
                           after the end of each fiscal year of the Borrower
                           (commencing with the fiscal year ending April 30,
                           2002), the Borrower shall prepay the Term B Loans in
                           an amount equal to 50% of the Excess Cash Flow for
                           such fiscal year. Amounts paid on the Term B Loans
                           under this Section 2.6(g) shall applied to the unpaid
                           installments upon the Term B Loans in inverse order
                           of their maturities.

                  (f) Additional Letters of Credit. Section 2.7(a) of the Credit
         Agreement is deleted in its entirety and the following is substituted
         in lieu thereof:

                                    (a) The Letters of Credit. The Existing
                           Letter of Credit shall be deemed to be issued and
                           outstanding under this Agreement on the Closing Date.
                           Subject to Section 2.7(f) and the other terms and
                           conditions of this Agreement, the Agent agrees to
                           issue Additional Letters of Credit for the account of
                           the Borrower from time to time prior to the
                           Termination Date in such amounts as the Borrower
                           shall request; provided, however, that:

                                            (i) No Additional Letter of Credit
                                    will be issued in any amount which, after
                                    giving effect to such issuance, would cause
                                    either (A) the Aggregate Revolving
                                    Outstandings to exceed the Aggregate
                                    Revolving Commitment Amounts or (ii) the sum
                                    of the Unpaid Drawings under the Letters of
                                    Credit plus the aggregate amount available
                                    to be drawn under the Letters of Credit
                                    (including such Additional Letter of Credit)
                                    to exceed $8,000,000;

                                             (ii) No Additional Letter of Credit
                                    shall have a stated available amount of less
                                    than $50,000; and

                                            (iii) Without the prior written
                                    consent of all of the Banks, no Additional
                                    Letter of Credit shall expire later than the
                                    earlier of (i) 365 days after the date of
                                    issuance thereof and (ii) the Business Day
                                    preceding the Revolving Commitment Ending
                                    Date.

                  (g) Further Letter of Credit Amendments. Sections 2.7(b) and
         (e) of the Credit Agreement are each hereby amended by deleting each
         appearance of the term "the Existing Letter of Credit" contained
         therein and by substituting in lieu thereof the term "any Letter of
         Credit". Section 2.7(c) of the Credit Agreement is amended by deleting

                                      -10-
<PAGE>   11

         each appearance of the terms "the Existing Letter of Credit" and "the
         Existing Letters of Credit" contained therein and by substituting in
         lieu thereof the term "each Letter of Credit". Section 2.7(d) of the
         Credit Agreement is amended by deleting each appearance of the term
         "the Existing Letter of Credit" contained therein and by substituting
         in lieu thereof the term "any Letter of Credit." Section 2.7 of the
         Credit Agreement is further amended by adding the following new
         subsection (f) thereto:

                           (f) Procedures for Additional Letters of Credit. Each
                  request for an Additional Letter of Credit shall be made by
                  the Borrower in writing, by facsimile transmission or
                  electronic conveyance received by the Agent by 2:00 P.M.,
                  Minneapolis time, on a Business Day which is not less than one
                  Business Day preceding the requested date of issuance (which
                  shall also be a Business Day). Each request for an Additional
                  Letter of Credit shall be deemed a representation by the
                  Borrower that on the date of issuance of such Additional
                  Letter of Credit and after giving effect thereto the
                  applicable conditions specified in Article III have been and
                  will be satisfied. The Agent may require that such request be
                  made on such letter of credit application and reimbursement
                  agreement form as the Agent may from time to time specify,
                  along with satisfactory evidence of the authority and
                  incumbency of the officers of the Borrower making such
                  request. The Agent shall promptly notify the other Banks of
                  the receipt of the request and the matters specified therein.
                  On the date of each issuance of an Additional Letter of Credit
                  the Agent shall send notice to the other Banks of such
                  issuance, accompanied by a copy of the Additional Letter or
                  Letters of Credit so issued. Additional Letters of Credit
                  shall be issued in support of obligations of the Borrower and
                  the Subsidiaries under performance and surety bond incurred in
                  the ordinary course of business.

         Section 2.8 of the Credit Agreement is amended (1) by deleting the
         clause "the Existing Letters of Credit is no longer" as it appears
         therein and by substituting in lieu thereof the clause "no Letter of
         Credit is" and (2) by deleting the clause "the Existing Letter of
         Credit" as it appears in the last sentence thereof and by substituting
         in lieu thereof the clause "the Letters of Credit". Section 2.16 of the
         Credit Agreement is amended by deleting the clause "the Existing Letter
         of Credit" as it appears therein and by substituting in lieu thereof
         the clause "the Letters of Credit". Section 7.2 of the Credit Agreement
         is amended by deleting each reference to the phrase "the Existing
         Letters of Credit" appearing therein and by substituting in lieu
         thereof the phrase "each Letter of Credit". Section 9.1(g) is amended
         by deleting the clause "the Existing Letter of Credit" as it appears
         therein and by substituting in lieu thereof the clause "the Letters of
         Credit".

                  (h) Letter of Credit Fees. Section 2.10 of the Credit
         Agreement is deleted in its entirety and the following is substituted
         in lieu thereof:

                           Section 2.10 Letter of Credit Fees. For each Letter
                  of Credit issued, the Borrower shall pay to the Agent for the
                  ratable account of the Banks, in advance payable on the date
                  of issuance, a fee (a "Letter of Credit Fee") in an amount
                  equal to 2.5% of the original face amount of the Letter of
                  Credit. Each Bank may set off any refund of the Letter of
                  Credit Fees contemplated by the forgoing

                                      -11-
<PAGE>   12

                  sentence against any amounts due and payable to such Bank on
                  the date such refund is payable. The Borrower shall pay to
                  U.S. Bank for its own account, on demand, all fees customarily
                  charged by U.S. Bank with respect to the issuance, renewal,
                  amendment, administration or payment of each Letter of Credit.

                  (i) Revolving Commitment Ending Date. Section 2.14 is amended
         by deleting the clause "June 29, 2001" as it appears therein and by
         substituting in lieu thereof the clause "June 28, 2002".

                  (j) Use of Proceeds. Section 2.15 of the Credit Agreement is
         amended by deleting the first sentence thereof and by substituting in
         lieu thereof the following:

                  The Term A Loan and the Term B Loan shall each continue a
                  portion (equal to the principal amount of such Loan) of the
                  Borrower's existing term loan obligations to the Bank
                  outstanding immediately prior to the consummation of the Fifth
                  Amendment hereto.

                  (k) Conditions Precedent to all Loans. Section 3.2 of the
         Credit Agreement is amended (1) by deleting the clause ", Term B Loans
         and Term C Loans" as it appears therein and by substituting in lieu
         thereof the clause "and Term B Loans", (2) by deleting each reference
         to the phrase "the renewal of the Existing Letter of Credit" and by
         substituting in lieu thereof the phrase "the issuance of any Additional
         Letter of Credit" and (3) by deleting the phrase "the Existing Letter
         of Credit is renewed" and by substituting in lieu thereof the phrase
         "any Letter of Credit is issued".

                  (l) Preamble to Articles 5 and 6. The Preamble to each of
         Articles 5 and 6 of the Credit Agreement is deleted in its entirety and
         the following is substituted in lieu thereof:

                           Until any obligation of the Banks hereunder to make
                  the Loans, and any obligation of U.S. Bank to issue the
                  Letters of Credit shall have expired or been terminated and
                  the Notes and all of the other Obligations have been paid in
                  full, and no amount is available to be drawn under the under
                  the Letters of Credit, unless the Majority Banks shall
                  otherwise consent in writing:

                  (m) Connaissance Note Collateral. Section 5.16(b) of the
         Credit Agreement is deleted in its entirety and the following is
         substituted in lieu thereof:

                           (b) Notwithstanding whether an Event of Default has
                  occurred, any and all cash paid, payable or otherwise
                  distributed in respect of principal of, or in exchange for,
                  any Connaissance Note Collateral, shall be applied, and shall
                  be forthwith delivered to the Agent to apply, to the
                  Obligations as follows:

                                    (i) any such Net Proceeds constituting
                           payment upon any regularly scheduled installment of
                           principal upon the Connaissance Note Collateral shall
                           be applied (a) first, to the unpaid installments upon
                           the Term A Loans in order of their maturities, (b)
                           second, the unpaid installments upon the Term B Loans
                           in order of their maturities, (c) third, to the
                           unpaid

                                      -12-
<PAGE>   13

                           principal balance of the Revolving Loans (other than
                           reimbursement obligations with respect to Letters of
                           Credit) and (d) fourth, to the Holding Account in the
                           amount of the aggregate face amount of the Letters of
                           Credit; and,

                                    (ii) any such Net Proceeds other than as
                           provided in the forgoing clause (i) (including any
                           prepayments upon any Connaissance Note Collateral and
                           any payments upon any Connaissance Note Collateral
                           following any acceleration of the maturity dates of
                           such Connassiance Note Collateral) shall be applied
                           in the manner set forth in subclause (ii) of Section
                           2.6(d).

                  Any Net Proceeds of Connaissance Note Collateral shall, if
                  received by the Borrower or any Subsidiary, be received in
                  trust for the benefit of the Agent, be segregated from the
                  other property or funds of the Borrower or such Subsidiary,
                  and be forthwith delivered to the Agent in the same form as so
                  received (with any necessary endorsement or assignment).
                  Notwithstanding anything to the contrary in this Agreement,
                  upon the occurrence of an Event of Default and at any time
                  during the continuance thereof, the Agent may take any action
                  with respect to the Connaissance Note Collateral in accordance
                  with Section 20 of NCI's Security Agreement or otherwise.

                  (n) Ericsson Intercreditor Agreements. Section 5.17 of the
         Credit Agreement is amended by deleting the clause "May 30, 2001" as it
         appears therein and by substituting in lieu thereof the clause "July
         15, 2001".

                  (o) Consulting Sale Collateral. Section 5.18(b) of the Credit
         Agreement is deleted in its entirety and the following is substituted
         in lieu thereof:

                           (b) Notwithstanding whether an Event of Default has
                  occurred, any and all cash paid, payable or otherwise
                  distributed in respect of principal of, or in exchange for,
                  any Consulting Sale Collateral, shall be applied, and shall be
                  forthwith delivered to the Agent to apply, to the Obligations
                  as follows:

                                    (i) any such Net Proceeds constituting
                           payment upon any regularly scheduled installment of
                           principal upon the Consulting Sale Collateral shall
                           be applied (a) first, to the unpaid installments upon
                           the Term A Loans in order of their maturities, (b)
                           second, the unpaid installments upon the Term B Loans
                           in order of their maturities, (c) third, to the
                           unpaid principal balance of the Revolving Loans
                           (other than reimbursement obligations with respect to
                           Letters of Credit) and (d) fourth, to the Holding
                           Account in the amount of the aggregate face amount of
                           the Letters of Credit; and,

                                    (ii) any such Net Proceeds other than as
                           provided in the forgoing clause (i) (including any
                           prepayments upon any Consulting Sale Collateral and
                           any payments upon any Consulting Sale Collateral
                           following any

                                      -13-
<PAGE>   14

                           acceleration of the maturity dates of such Consulting
                           Sale Collateral) shall be applied in the manner set
                           forth in subclause (ii) of Section 2.6(d).

                  Any Net Proceeds of Consulting Sale Collateral shall, if
                  received by the Borrower or any Subsidiary, be received in
                  trust for the benefit of the Agent, be segregated from the
                  other property or funds of the Borrower or such Subsidiary,
                  and be forthwith delivered to the Agent in the same form as so
                  received (with any necessary endorsement or assignment).
                  Notwithstanding anything to the contrary in this Agreement,
                  upon the occurrence of an Event of Default and at any time
                  during the continuance thereof, the Agent may take any action
                  with respect to the Consulting Sale Collateral in accordance
                  with Section 20 of NCI's Security Agreement or otherwise.

                  (p) Sale of Assets. Sections 6.2(d) and (e) are amended be
         deleting the clause "applied pursuant to Section 2.6(c)" as such clause
         appears in each such Section and by substituting in lieu thereof the
         clause "paid to the Agent pursuant to Section 2.6(c) for application
         pursuant to Section 2.6(d)".

                  (q) Capital Expenditures. Section 6.8 of the Credit Agreement
         is deleted in its entirety and the following is substituted in lieu
         thereof:

                           Section 6.8 The Borrower will not, and will not
                  permit any Subsidiary to, make Capital Expenditures in an
                  amount exceeding, on a consolidated basis in the following
                  amounts for the following period: (a) during the fiscal year
                  ending April 30, 2002, $3,000,000, and (b) during the period
                  from May 1, 2002 through December 31, 2002, $2,000,000.

                  (r) Amendments to Financial Covenants. Sections 6.16, 6.17,
         6.18 and 6.19 of the Credit Agreement are deleted in their respective
         entireties and the following is substituted in lieu thereof:

                           Section 6.16 MINIMUM EBITDA. The Borrower will not
                  permit EBITDA to be less than (a) $2,301,000 for the fiscal
                  quarter ending on or about July 31, 2001, (b) $5,585,000 for
                  the two fiscal quarters ending on or about October 31, 2001
                  and (c) $9,264,000 for the three fiscal quarters ending on or
                  about January 31, 2002. Further, the Borrower will not permit
                  EBITDA, as of the last day of the Borrower's fiscal quarters
                  ending on or about the following dates for the four fiscal
                  quarters ended on such date, to be less than the following
                  indicated amounts:

<TABLE>
<CAPTION>
                  Fiscal Quarter Ending On or About        Minimum EBITDA
                  ---------------------------------        --------------
                  <S>                                      <C>
                          April 30, 2002                     $13,858,000
                          July 31, 2002                      $16,130,000
                          October 31, 2002                   $17,754,000
</TABLE>

                           Section 6.17     [RESERVED].

                                      -14-
<PAGE>   15

                           Section 6.18 ADJUSTED LEVERAGE RATIO. The Borrower
                  will not permit the Adjusted Leverage Ratio, as of the last
                  day of the Borrower's fiscal quarters ending on or about the
                  following dates for such fiscal quarter, to be greater than
                  the following indicated amounts:

<TABLE>
<CAPTION>
                  Fiscal Quarter Ending On or About     Maximum Adjusted Leverage Ratio
                  ---------------------------------     -------------------------------
                  <S>                                   <C>
                          July 31, 2001                            69.7 to 1.0
                          October 31, 2001                         69.9 to 1.0
                          January 31, 2002                         44.3 to 1.0
                          April 30, 2002                           24.8 to 1.0
                          July 31, 2002                            15.7 to 1.0
                          October 31, 2002                         10.5 to 1.0
</TABLE>

                           Section 6.19 INTEREST COVERAGE RATIO. The Borrower
                  will not permit the Interest Coverage Ratio to be less than
                  (a) 1.6 to 1.0 for the fiscal quarter ending on or about July
                  31, 2001, (b) 1.9 to 1.0 for the two fiscal quarters ending on
                  or about October 31, 2001 and (c) 2.2 to 1.0 for the three
                  fiscal quarters ending on or about January 31, 2002. Further,
                  the Borrower will not permit the Interest Coverage Ratio, as
                  of the last day of the Borrower's fiscal quarters ending on or
                  about the following dates for the four fiscal quarters ending
                  on such date, to be less than the following indicated amounts:

<TABLE>
<CAPTION>
                  Fiscal Quarter Ending On or About     Minimum Interest Coverage Ratio
                  ---------------------------------     -------------------------------
                  <S>                                   <C>
                           April 30, 2002                         2.6 to 1.0
                           July 31, 2002                          3.4 to 1.0
                           October 31, 2002                       4.3 to 1.0
</TABLE>

                  (s) New Negative Covenant. Article 6 of the Credit Agreement
         is amended by adding the following new Sections 6.23 and 6.24 at the
         end thereof:

                           6.23 Employee Bonuses. The Borrower will not, and
                  will not permit any Subsidiary to, make any payments under the
                  Bonus Plan which are accrued and required to the paid during
                  the fiscal year ending April 30, 2002 in an amount exceeding
                  $2,000,000.

                           6.24 Issuance and Ownership of Stock. Except for
                  issuing Stock of the Borrower or any Subsidiary, or options to
                  purchase the same, issued in the ordinary course of business
                  to the Borrower's or such Subsidiary's officers or employees
                  pursuant to the Borrower's of such Subsidiary's officer or
                  employee stock purchase or option agreements, the Borrower
                  will not, nor will permit any Subsidiary to, take any action,
                  or permit any Subsidiary to take any action, which would (a)
                  result in a decrease in the Borrower's or any Subsidiary's
                  ownership interest in any Subsidiary including, without
                  limitation, decrease in the percentage of the shares of any
                  class of stock owned or (b) result in the issuance by the

                                      -15-
<PAGE>   16

                  Borrower of Stock other than (i) those issued and outstanding
                  on the date of the Fifth Amendment hereto and (ii) the
                  Warrants and the Subsequent Warrants and common stock of the
                  Borrower necessary to satisfy the exercise of the Warrants or
                  the Subsequent Warrants. The Borrower acknowledges that no
                  Bank has any obligation to exercise the Warrants or the
                  Subsequent Warrants and that any such exercise shall be in the
                  sole discretion of such Bank.

                  (t) Payments and Collections. Section 8.10 of the Credit
         Agreement is amended by deleting the third sentence thereof in its
         entirety. Section 8.10 of the Credit Agreement is further amended by
         deleting the clause "the Existing Letter of Credit" and substituting in
         lieu thereof the clause "the Letters of Credit".

                  (u) New Borrowing Base Certificate. Exhibit A to the Credit
         Agreement is hereby amended and restated as set forth in Exhibit A to
         this Amendment, which Exhibit A is hereby made a part of the Credit
         Agreement as Exhibit A thereto.

                  (v) New Term A Note. Exhibit C to the Credit Agreement is
         hereby amended and restated to read as set forth on Exhibit B to this
         Amendment, which Exhibit B is made a part of the Credit Agreement as
         Exhibit C thereto.

                  (w) New Term B Note. Exhibit D to the Credit Agreement is
         hereby amended and restated to read as set forth on Exhibit C to this
         Amendment, which Exhibit C is made a part of the Credit Agreement as
         Exhibit D thereto.

                  (x) Deletion of Term C Note. Exhibit E to the Credit Agreement
         is hereby deleted in its entirety.

                  (y) New Schedule of Commitments. Schedule 1.1B of the Credit
         Agreement is hereby amended and restated to read as set forth on
         Exhibit D hereto, which Exhibit D is hereby made a part of the Credit
         Agreement as Schedule 1.1B thereof.

                  (z) New Schedule of Subsidiaries. Schedule 4.19 of the Credit
         Agreement is hereby amended and restated to read as set forth on
         Exhibit E hereto, which Exhibit E is hereby made a part of the Credit
         Agreement as Schedule 4.19 thereof.

         Section 3. [Reserved]

         Section 4. Representations and Warranties of the Borrower. To induce
the Banks and the Agent to execute and deliver this Amendment (which
representations and warranties shall survive the execution and delivery of this
Amendment), the Borrower represents and warrants to the Agent and the Banks
that:

                  (a) this Amendment and each Amendment Document (defined below)
         to which the Borrower is a party has been duly authorized, executed and
         delivered by it and each Amendment Document to which the Borrower is a
         party constitutes the legal, valid and binding obligation of the
         Borrower enforceable against the Borrower in accordance with its terms,
         subject to limitations as to enforceability which might result from

                                      -16-
<PAGE>   17

         bankruptcy, insolvency, reorganization, moratorium or similar laws or
         equitable principles relating to or limiting creditors' rights
         generally;

                  (b) each Amendment Document to which the Borrower is a party
         constitutes the legal, valid and binding obligation of the Borrower
         enforceable against the Borrower in accordance with its terms, subject
         to limitations as to enforceability which might result from bankruptcy,
         insolvency, reorganization, moratorium or similar laws or equitable
         principles relating to or limiting creditors' rights generally;

                  (c) the execution, delivery and performance by the Borrower of
         the Amendment Documents to which it is a party (i) have been duly
         authorized by all requisite corporate action and, if required,
         shareholder action, (ii) do not require the consent or approval of any
         governmental or regulatory body or agency, and (iii) will not (A)
         violate (1) any provision of law, statute, rule or regulation or its
         certificate of incorporation or bylaws, (2) any order of any court or
         any rule, regulation or order of any other agency or government binding
         upon it, or (3) any provision of any material indenture, agreement or
         other instrument to which it is a party or by which any of its
         properties or assets are or may be bound, or (B) result in a breach of
         or constitute (alone or with due notice or lapse of time or both) a
         default under any indenture, agreement or other instrument referred to
         in clause (iii)(A)(3) of this Section 4(c);

                  (d) as of the date hereof, no Default or Event of Default has
         occurred which either (a) is continuing or (b) has not been waived by
         the Agent and the Banks; and

                  (e) all the representations and warranties contained in
         Article IV of the Credit Agreement are true and correct in all material
         respects with the same force and effect as if made by the Borrower on
         and as of the date hereof.

         Section 5. Conditions to Effectiveness of this Amendment. This
Amendment shall become effective as of June 29, 2001 when each and every one of
the following conditions shall have been satisfied:

                  (a) The Agent shall have received executed counterparts of
         this Amendment, duly executed by the Borrower and each of the Banks.

                  (b) The Agent shall have received an executed new Term A Note
         and a Term B Note for each Bank, properly completed for such Bank based
         upon its Term A Loan Commitment or Term B Loan Commitment, as
         applicable, and duly executed by the Borrower.

                  (c) The Agent shall have received from the Guarantors a
         Consent and Agreement of Guarantors in the form of Exhibit F hereto
         (the "Guarantor Agreements") duly completed and executed by each
         Guarantor.

                  (d) The Agent shall have received a copy of the resolutions of
         the Board of Directors of the Borrower authorizing the execution,
         delivery and performance by the Borrower of this Amendment, the new
         Term Note A and Term Note B and the other documents to be executed by
         the Borrower in connection herewith, together with a

                                      -17-
<PAGE>   18

         certificate of an officer of the Borrower certifying as to the
         incumbency and the true signatures of the officers authorized to
         execute such documents and certifying that the Articles of
         Incorporation and Bylaws of the Borrower have not been amended or
         otherwise modified since true and accurate copies of such documents
         were previously furnished to the Bank.

                  (e) the Agent shall have received the favorable opinion of
         counsel to Borrower, in form and substance acceptable to the Agent and
         its counsel;

                  (f) The Agent shall have received the Subsequent Warrant
         Registration Agreement, duly executed by the Borrower and the Banks.

                  (g) The Agent shall have received Subsequent Warrants,
         properly completed for each Bank and duly executed by the Borrower and
         issued to the Banks ratably in accordance with their Revolving
         Commitment Percentages, containing an exercise price equal to the
         closing price per share of the Borrower's common stock on the
         recognized exchange on which such stock is traded at the close of
         trading on the date of this Amendment.

                  (h) The Agent shall have received all certificates,
         instruments and other agreements representing or evidencing the
         Consulting Sale Collateral, together with duly executed instruments of
         transfer or assignment in blank, all in form and substance satisfactory
         to the Agent.

                  (i) The Agent shall have received for the ratable benefit of
         the Banks a non-refundable restructuring fee in the amount of $163,750
         (the "Restructuring Fee").

                  (j) The Borrower shall have satisfied such other conditions as
         specified by the Agent, including payment of all unpaid legal fees and
         expenses incurred by the Agent and the fees and expenses of Price
         Waterhouse Coopers, financial consultants to the Banks, in each case
         through the date of this Amendment in connection with the Credit
         Agreement, this Amendment and any and all other documents to be
         executed and delivered by any party in connection with this Amendment
         (the "Amendment Documents").

Upon the effectiveness of this amendment, the Agent shall distribute the
Restructuring Fee to the Banks ratably in accordance with their Revolving
Commitment Percentages.

         Section 6. Affirmation; Reaffirmation. The Agent, each Bank and the
Borrower each acknowledge and affirm that the Credit Agreement, as hereby
amended, is hereby ratified and confirmed in all respects and all terms,
conditions and provisions of the Credit Agreement, except as amended by this
Amendment, shall remain unmodified and in full force and effect. All references
in any document or instrument to the Credit Agreement are hereby amended and
shall refer to the Credit Agreement as amended by this Amendment. The Borrower
confirms to the Agent and each Bank that the Obligations are and continue to be
secured by the security interest granted by the Borrower in favor of the Agent
under the Borrower's Security Agreement and all of the terms, conditions,
provisions, agreements, requirements, promises, obligations, duties, covenants
and representations of the Borrower under such documents and any and all other

                                      -18-
<PAGE>   19

documents and agreements entered into with respect to the Obligations are
incorporated herein by reference and are hereby ratified and affirmed in all
respects by the Borrower.

         Section 7. General.

                  (a) As provided in Section 9.2 of the Credit Agreement, the
         Borrower agrees to reimburse the Agent and each Bank, upon execution of
         this Amendment, for all reasonable out-of-pocket expenses (including
         attorney' fees and legal expenses of Dorsey & Whitney LLP, counsel for
         the Agent and the fees and expenses of PriceWaterhouse Coopers,
         financial consultants to the Banks) incurred in connection with the
         Credit Agreement, including in connection with the negotiation,
         preparation and execution of the Amendment Documents and all other
         documents negotiated, prepared and executed in connection with the
         Amendment Documents, and in enforcing the obligations of the Borrower
         under the Amendment Documents, and to pay and save the Agent and the
         Banks harmless from all liability for, any stamp or other taxes which
         may be payable with respect to the execution or delivery of the
         Amendment Documents, which obligations of the Borrower shall survive
         any termination of the Credit Agreement.

                  (b) This Amendment may be executed in as many counterparts as
         may be deemed necessary or convenient, and by the different parties
         hereto on separate counterparts, each of which, when so executed, shall
         be deemed an original but all such counterparts shall constitute but
         one and the same instrument.

                  (c) Any provision of this Amendment which is prohibited or
         unenforceable in any jurisdiction shall, as to such jurisdiction, be
         ineffective to the extent of such prohibition or unenforceability
         without invalidating the remaining portions hereof or affecting the
         validity or enforceability of such provisions in any other
         jurisdiction.

                  (d) This Amendment shall be governed by, and construed in
         accordance with, the internal law, and not the law of conflicts, of the
         State of Minnesota, but giving effect to federal laws applicable to
         national banks.

                  (e) This Amendment shall be binding upon the Borrower, the
         Agent and the Banks and their respective successors and assigns, and
         shall inure to the benefit of the Borrower, the Agent and the Banks and
         the successors and assigns of the Agent and the Banks.

         Section 8. General Release. The Borrower hereby releases and discharges
the Agent and each Bank, and each of their officers, directors, employees,
agents and attorneys, from any and all claims, actions and liabilities of any
kind or nature that it or any one claiming through or under the Borrower ever
had or may now have, whether now known or hereafter discovered, arising out of
or in any way relating to: (i) any lending relationship or loan commitment
between the Agent, the Banks and the Borrower prior to the date of this
Amendment; (ii) the Loan Documents; or (iii) the negotiations preceding the
execution and delivery of this Amendment.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -19-
<PAGE>   20

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed as of the day and year first above written.

                                       NORSTAN, INC.

                                       By /s/ Robert J. Vold
                                         ---------------------------------------
                                          Its Treasurer

                                       U.S. BANK NATIONAL ASSOCIATION,
                                       as a Bank and as Agent

                                       By /s/ David C. Larsen
                                         ---------------------------------------
                                          Its VP

                                       HARRIS TRUST AND SAVINGS BANK

                                       By /s/ Lauren M. Powers
                                         ---------------------------------------
                                          Its VP

                                       M&I MARSHALL & ILSLEY BANK

                                       By /s/ John W. Howard
                                         ---------------------------------------
                                          Its VP

                                       By /s/ Doug Pudvah
                                         ---------------------------------------
                                          Its VP

                                       WELLS FARGO BANK MINNESOTA,
                                       NATIONAL ASSOCIATION

                                       By /s/ Calvin R. Emerson
                                         ---------------------------------------
                                          Its VP

  [Signature Page to Fifth Amendment to Amended and Restated Credit Agreement]

                                       S-1<PAGE>   1

                                                                   EXHIBIT 10(I)

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (the "Agreement") is entered into
effective as of April 30, 2001 (the "Effective Date") by and among Norstan,
Inc., a corporation organized under the laws of the State of Minnesota
("Seller"), Synchromesh Consulting, Inc., a corporation organized under the laws
of the State of Minnesota (the "Purchaser") and, solely with respect to Articles
IV(E) and V hereof, Barry R. Rubin ("Rubin"), an individual residing in the
State of Minnesota.

                              W I T N E S S E T H:

         WHEREAS, Seller is the sole shareholder of Norstan Consulting Holding
Company ("Holding"), a Minnesota corporation.

         WHEREAS, Holding is the sole shareholder of Norstan Consulting, Inc., a
corporation organized under the laws of the State of Minnesota (the "Company");

         WHEREAS, Rubin serves as the Chief Executive Officer of the Company;

         WHEREAS, Purchaser desires to purchase all of the issued and
outstanding shares of Holding common stock (the "Shares"); and

         WHEREAS, Holding is willing to transfer and convey the Shares to
Purchaser on the terms, and subject to the conditions set forth in this
Agreement.

         NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                               A G R E E M E N T:

         I. Purchase and Sale of the Shares; Consideration; Closing.

         (A) Purchase and Sale of the Shares. At the Closing (as defined below),
Seller shall sell, transfer, assign, set over, deliver and surrender the Shares
to Purchaser, and Purchaser shall purchase and accept the Shares from Seller.

         (B) Purchase Price. As consideration for the Shares, Purchaser shall
pay to Seller the sum of $5,301,934.01 (the "Purchase Price"), plus certain
contingent consideration described in Section I(E) below. In addition, Seller
agrees to unconditionally release the Company from all of the Company's
indebtedness to Seller and Seller's subsidiaries, and to assume all of the
Company's trade accounts payable (including obligations for which documentation
may not be available on the Closing Date) and accrued payroll obligations
(including without limitation accrued salaries, wages, bonuses, commissions and
all related payroll taxes) reflected on the balance sheet of the Company on
April 30, 2001, such balance sheet to be prepared in accordance with generally
accepted accounting principles of the United
<PAGE>   2

States on a basis consistent with accounting principles employed by the Company
during the year ended April 30, 2001 ("GAAP"). The Purchase Price shall be paid
in the form of: (i) $500,000 in immediately available funds (the "Cash
Portion"); (ii) Purchaser's 120-day promissory note in the amount of $1.5
million, bearing interest at the weighted-average effective rate imposed on
Seller pursuant to that certain Credit Agreement, dated as of July 23, 1996, by
and among Seller, First Bank National Association, Harris Trust and Savings Bank
and the Sumitomo Bank, Limited, Chicago Branch, as amended to date (the "Seller
Credit Agreement"), or any replacement facility, adjustable monthly, secured by
the accounts and notes receivable of the Company and substantially in the form
attached hereto as Exhibit A (the "Purchaser Note"); and (iii) assignment by the
Company to Seller of (a) that certain promissory note, dated October 28, 1999,
issued by TechSkills.com, LLC in favor of the Company with an original unpaid
principal balance of $1,861,164.64 and a current unpaid principal balance of
$1,801,934.01 (the "TechSkills Note") and (b) that certain promissory note,
dated January 22, 2001, issued by Substance Abuse Management Inc. ("SAMI") in
favor of the Company with an original unpaid principal balance of $1,500,000 and
a current unpaid principal balance of $1,412,284.31 and the related personal
guarantee of Henry Goldberg dated January 22, 2001 (collectively, the "SAMI
Note"); (the TechSkills Note and the SAMI Note shall be referred to herein
collectively as the "Notes").

         (C) Collection of Notes; Purchaser Guarantee. The Company's assignment
of the Notes is without recourse to both the Company and Purchaser; provided,
however, that: (1) if the SAMI Note is in payment default at any time during the
three-year period following the Closing Date, Seller shall deliver written
notice thereof to Purchaser, and if while the SAMI Note is in payment default
Purchaser receives any payment from SAMI for services rendered or for any other
purpose, Purchaser shall promptly remit the amount thereof to Seller, less any
related travel and lodging expenses incurred by Purchaser and reimbursed by SAMI
(which remittance by Purchaser shall be limited to the total amount of interest,
principal and other charges due Seller under the SAMI Note); and (2) if as of
the third anniversary of the Closing Date (the "Third Anniversary") Seller has
collected less than $3,000,000 of the principal amount due and owing under the
Notes as of the Closing Date (including principal payments received from
Purchaser pursuant to clause (1) above), Purchaser shall then remit to Seller an
amount equal to the lesser of: (i) $500,000 or (ii) the excess of (a) $3,000,000
over (b) the principal amount collected by Seller under the Notes as of the
Third Anniversary. Within a reasonable period after the Third Anniversary,
Seller shall deliver to Purchaser written notice, in reasonable detail, of the
amount due and owing Seller under this Section I(C) (the "Purchaser Guarantee"),
and Purchaser shall remit the same to Seller within 10 business days following
receipt of such notice. In the event Purchaser does not make a full and timely
payment of the Purchaser Guarantee, interest shall accrue on the unpaid balance
at the weighted-average effective rate under the Seller Credit Agreement. Seller
shall use its reasonable best efforts to collect the outstanding principal under
the Notes in accordance with their respective terms. If, prior to the Third
Anniversary, Seller reduces, discounts, or otherwise compromises its claim
against the obligor under either or both of the Notes, Seller shall reduce the
Purchaser Guarantee by 50 percent of the amount of such reduction. In the event
that Seller collects additional principal amounts (a "Supplemental Recovery")
under the Notes after the Third Anniversary, Seller shall promptly remit to
Purchaser the amount of the excess, if any, of (i) the aggregate principal
amount recovered by Seller under the Notes and the Purchaser Guarantee over (ii)
$3,000,000, limited to the amount of the Purchaser Guarantee paid by Purchaser
to Seller.

                                      -2-
<PAGE>   3

         (D) The Closing. The closing (the "Closing") of the transactions
contemplated by this Agreement shall take place at the offices of Maslon Edelman
Borman & Brand, LLP, 3300 Wells Fargo Center, Minneapolis, Minnesota 55402, on
May 1, 2001 or on such other date as the parties may mutually agree (the
"Closing Date"). Irrespective of the actual Closing Date, the transactions
contemplated by this Agreement shall be deemed effective as of the close of
business on April 30, 2001. At the Closing, Holding shall deliver to Purchaser
one or more certificates representing the Shares, duly endorsed for transfer.
Purchaser shall deliver to Seller: (i) the Cash Portion via wire transfer of
immediately available funds to an account designated by Seller; (ii) the
Purchaser Note; and (iii) originally executed instruments representing the
TechSkills Note and the SAMI Note, accompanied by duly executed assignments
separate from certificates.

         (E) Contingent Consideration. As additional consideration for the
Shares, Purchaser shall pay to Seller an amount equal to 50 percent of Seller's
earnings before income taxes, interest, depreciation and amortization ("EBITDA")
for the 12-month period ending April 30, 2003 (the "Contingent Purchase Price")
determined in conformity with GAAP. Purchaser shall provide Seller with written
notice (the "EBITDA Notice") of Purchaser's determination of EBITDA in
reasonable detail on or before June 30, 2003, together with copies of a similar
computation with respect to Purchaser's EBITDA for the 12-month period ending
April 30, 2002. Following Purchaser's delivery to Seller of the EBITDA Notice,
Purchaser shall provide Seller's independent accountants and/or Seller's other
agents and representatives with reasonable access to Purchaser's books, records
and employees for the purpose of substantiating Purchaser's determination of
EBITDA for the 12-month period ending April 30, 2003. Seller shall deliver to
Purchaser, within 60 days following Seller's receipt of the EBITDA Notice,
written notice of (i) Seller's concurrence with Purchaser's determination of
EBITDA for the 12-month period ending April 30, 2003 ("Notice of Concurrence")
or (ii) Seller's disagreement with such determination, accompanied by a detailed
explanation of such disagreement. In the event of a disagreement, the parties
shall endeavor for a period of at least 30 days to negotiate a settlement of
their differences. If the parties are unable to reach agreement during such
period, the parties shall engage Ernst & Young LLP (the "Independent Firm") to
perform a determination of Purchaser's EBITDA for the 12-month period ending
April 30, 2003 (the "Final Determination"), which determination shall be final
and binding on each of the parties. The Independent Firm shall make its
determination based solely on presentations by Purchaser and Seller, and not by
independent review. In resolving any disputed item the Independent Firm may not
assign a value to any item greater than the greatest value for such item claimed
by either party or less than the smallest value for such item claimed by either
party. Any fees and expenses of the Independent Firm shall be borne by: (i)
Seller in the proportion that the aggregate dollar amount of such disputed items
so submitted that are unsuccessfully disputed by Seller bears to the aggregate
dollar amount of all disputed items and (ii) Purchaser in the proportion that
the aggregate dollar amount of such disputed items so submitted that are
successfully disputed by Seller bears to the aggregate dollar amount of all
disputed items. Purchaser shall pay to Seller the Contingent Purchase Price
within 10 business days following (i) Purchaser's receipt of the Notice of
Concurrence; (ii) completion of the parties' negotiated settlement with respect
to Purchaser's EBITDA for the 12-month period ending April 30, 2003; or (iii)
the parties' receipt of the Final Determination, as applicable.

                                      -3-
<PAGE>   4

         II. Representations and Warranties of Seller Concerning the
Transaction. Seller represents and warrants to Purchaser that, except as set
forth in the disclosure schedules attached hereto as Exhibit B and incorporated
by reference herein (the "Seller Disclosure Schedules"):

         (A) Organization of Seller. Seller is a corporation, validly existing
and in good standing under the laws of the State of Minnesota, with the
requisite corporate power and authority to own and use its properties and assets
and to carry on its business as currently conducted.

         (B) Authorization; Enforcement. Seller has the requisite corporate
power and authority to enter into and to consummate the transactions
contemplated by this Agreement and to otherwise carry out its obligations
hereunder. The execution and delivery of this Agreement by Seller and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of Seller. This Agreement has
been duly executed by Seller and when delivered in accordance with the terms
hereof shall constitute the legal, valid and binding obligation of Seller
enforceable against Seller in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors' rights and remedies or by
other equitable principles of general application. Seller is not in violation of
any provision of its articles of incorporation, bylaws or other charter
documents.

         (C) No Conflicts. The execution, delivery and performance of this
Agreement by Seller and the consummation by Seller of the transactions
contemplated hereby do not and will not (i) conflict with or violate any
provision of its articles of incorporation, bylaws or other charter documents
(each as amended through the date hereof), (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture or instrument
(evidencing a debt of Seller or otherwise) to which Seller is a party or by
which any property or asset of Seller is bound or affected, or (iii) result in a
violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which Seller is
subject, or by which any property or asset of Seller is bound or affected,
except in the case of each of clauses (ii) and (iii), as could not, individually
or in the aggregate, have or result in a Material Adverse Effect (as defined
below) on Seller. Seller is not conducting its business in violation of any law,
ordinance or regulation of any governmental authority, except for violations
which, individually or in the aggregate, (x) do not and will not adversely
affect the legality, validity or enforceability of this Agreement or (y) do not
and will not adversely impair Seller's ability to perform fully on a timely
basis its material obligations under this Agreement (a "Seller Material Adverse
Effect").

         (D) Ownership of the Shares; Ownership of Company Stock. Except for the
lien in favor of U.S. Bancorp National Association pursuant to the Seller Credit
Agreement, Seller owns of record and beneficially all of the Shares free and
clear of any liens, claims, options, charges, or encumbrances of any nature
whatsoever ("Encumbrances"), and free and clear of any restrictions on transfer.
Other than pursuant to the Seller Credit Agreement, Seller has not previously
sold, assigned or otherwise transferred any right or interest in the Shares, nor
is Seller a party to any option, warrant, purchase right, or other contract or
commitment that

                                      -4-
<PAGE>   5

could require Seller to sell, transfer or otherwise dispose of any capital stock
of Holding (other than this Agreement). Holding owns of record and beneficially
all of the issued and outstanding capital stock of the Company (the "Company
Stock") free and clear of any Encumbrances except for liens imposed pursuant to
the Seller Credit Agreement, and free and clear of any restrictions on transfer,
exclusive of restrictions imposed pursuant to the Seller Credit Agreement.
Holding has not previously sold, assigned or otherwise transferred any right or
interest in the Company Stock, nor is Holding a party to any option, warrant,
purchase right, or other contract or commitment that could require Holding to
sell, transfer or otherwise dispose of any Company Stock.

         (E) Litigation; Proceedings. There is no action, suit, notice of
violation, proceeding or investigation pending or, to the knowledge of Seller,
threatened against or affecting Seller or any of its properties before or by any
court, governmental or administrative agency or regulatory authority (federal,
state, county, local or foreign) which adversely affects or challenges the
legality, validity or enforceability of this Agreement.

         (F) Status of Holding. The sole asset of Holding consists of 100
percent of the issued and outstanding capital stock of the Company; Holding has
no liabilities.

         III. Representations and Warranties of Seller regarding the Company.
Seller hereby represents and warrants to Purchaser that, except as set forth in
the Seller Disclosure Schedules:

         (A) Organization and Qualification. Each of Holding and the Company is
a corporation, validly existing and in good standing under the laws of the State
of Minnesota, with the requisite corporate power and authority to own and use
its properties and assets and to carry on its respective business as currently
conducted. The Company is duly qualified to do business and is in good standing
as a foreign corporation in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may
be, could not, individually or in the aggregate, have a material adverse effect
on the results of operations, assets, or financial condition of the Company (a
"Company Material Adverse Effect").

         (B) Capitalization. Holding has 50,000,000 shares of authorized capital
stock, consisting of 10,000,000 shares of common stock, $.01 par value per
share, and 40,000,000 undesignated shares. Holding has 100 shares of common
stock issued and outstanding, all of which are owned beneficially and of record
by Seller. No other shares of Holding capital stock are issued or outstanding.
The Company is authorized to issue 1,000,000 shares of capital stock with a par
value of $.01 per share in the case of common stock and a par value as
determined by its board of directors in the case of preferred stock. The Company
has 100 shares of its common stock issued and outstanding, all of which are
owned beneficially and of record by Holding. No other shares of the Company's
capital stock are issued or outstanding. All of the Shares and the Company Stock
have been duly authorized and are validly issued, fully paid and nonassessable.
There are no outstanding or authorized options, warrants, purchase rights,
subscription rights, conversion rights, exchange rights, or other contracts or
commitments that could require either Holding or the Company to issue, sell, or
otherwise cause to become outstanding any of its capital stock. There are no
outstanding or authorized stock appreciation, phantom stock, profit
participation, or similar rights with respect to Holding or the Company. There
are no voting

                                      -5-
<PAGE>   6

trusts, proxies, or other agreements or understandings with respect to the
voting of the capital stock of either Holding or the Company.

         (C) No Conflicts. The consummation of the transactions contemplated
hereby do not and will not: (i) conflict with or violate any provision of
Holding or the Company's respective articles of incorporation, bylaws or other
charter documents (each as amended through the date hereof), (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture or
instrument (evidencing a debt of Holding or the Company) to which Holding or the
Company is a party or by which any property or asset of Holding or the Company
is bound or affected, or (iii) result in a violation of any law, rule,
regulation, order, judgment, injunction, decree or other restriction of any
court or governmental authority to which Holding or the Company is subject, or
by which any property or asset of Holding or the Company is bound or affected,
except in the case of each of clauses (ii) and (iii), as could not, individually
or in the aggregate, have or result in a Company Material Adverse Effect.

         (D) Brokers and Finders. Neither Holding nor the Company has employed
any broker, agent or finder or agreed to incur any liability for any brokerage
fees, agents' commissions or finders' fees in connection with the transactions
contemplated hereby.

         (E) Consents and Approvals. None of Seller, Holding or the Company is
required to obtain any consent, waiver, authorization or order of, or make any
filing or registration with, any court or other federal, state, local, foreign
or other governmental authority or other Person (defined below) in connection
with the execution, delivery and performance by the parties of this Agreement
other than where the failure to obtain such consent, waiver, authorization or
order, or to give or make such notice or filing, could not, individually or in
the aggregate, have or result in a Company Material Adverse Effect. Seller shall
deliver to Purchaser the Shares in the manner contemplated hereby free and clear
of all Encumbrances. A "Person" means an individual or corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision
thereof) or other entity of any kind.

         (F) Litigation; Proceedings. There is no action, suit, notice of
violation, proceeding or investigation pending or, to the knowledge of Seller,
threatened against or affecting Holding or the Company or any of their
respective properties before or by any court, governmental or administrative
agency or regulatory authority (federal, state, county, local or foreign) which:
(i) adversely affects or challenges the legality, validity or enforceability of
this Agreement; or (ii) could, individually or in the aggregate, have or result
in a Company Material Adverse Effect.

         (G) No Default or Violation. Neither Holding nor the Company: (i) is in
default under or in violation of (and, to the knowledge of Seller, has not
received notice of a claim that it is in default under or that it is in
violation of) any indenture, loan or credit agreement or any other agreement or
instrument to which it is a party or by which it or any of its respective
properties is bound, (ii) is not in violation of any order of any court,
arbitrator or governmental body, and (iii) is not in violation of any statute,
rule or regulation of any

                                      -6-
<PAGE>   7

governmental authority, except as could not individually or in the aggregate,
have or result in, a Company Material Adverse Effect.

         (H) Books and Records. The books of account, minute books, stock record
books and other records of both Holding and the Company, all of which have been
made available to Purchaser, are true, complete and correct and have been
maintained in accordance with sound business practices, including the
maintenance of an adequate system of internal controls. The minute books of
Holding and the Company contain accurate and complete records of all meetings
held of corporate action taken by the shareholders, the boards of directors, and
committees of the boards of directors of Holding and the Company, and no meeting
of any such shareholders, boards of directors or committee has been held for
which minutes have not been prepared and are not contained in such minute books.

         (I) Compliance with Law. Each of Holding and the Company has complied
and is currently in compliance with all applicable laws (including rules,
regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and
changes thereunder) of the federal government of the United States and state
governments (and all agencies thereof) of the United States, asserting or
claiming jurisdiction over it or over any part of its operations, and no
proceedings or notices have been filed or, to the knowledge of Seller, commenced
against Holding or the Company alleging any failure to comply, except where the
failure to be in compliance has not had and is not reasonably expected to have a
Company Material Adverse Effect.

         (J) Title to Assets. Each of Holding and the Company has good and
marketable title to all of the assets used in or useful to its business, free
and clear of all Encumbrances, other than Encumbrances existing under the Seller
Credit Agreement. To the knowledge of Seller, none of the assets of Holding or
the Company are in the possession of any person other than Holding or the
Company, as applicable.

         (K) Employee Benefit Matters.

                  (1) Compliance. With respect to each employee welfare benefit
         plan and employee pension benefit plan as defined in sections 3(l) and
         3(2) of ERISA that has been or is sponsored by, participated in, or
         contributed to, by the Company (each, a "Plan"), through the date of
         Closing: (i) the plan is in compliance with ERISA in all material
         respects, including but not limited to all reporting and disclosure
         requirements of Part I of Subtitle B of Title I of ERISA; (ii) the
         appropriate Form 5500 has been timely filed, for each year of its
         existence; (iii) there has been no transaction described in sections
         406 or 407 of ERISA or section 4975 of the Internal Revenue Code of
         1986, as amended (the "Code") relating to the plan unless exempt under
         section 408 of ERISA or section 4975 of the Code, as applicable; (iv)
         the bonding requirements of section 412 of ERISA have been satisfied;
         and (v) all contributions required to have been made with respect to
         the plan have been timely made. There is no litigation, action,
         proceeding, investigation or claim asserted or, to the knowledge of
         Seller, threatened or contemplated, with respect to any Plan (other
         than the payment of benefits in the normal course) nor any issue if
         resolved adversely to the Company that may subject the Company to the
         payment of a penalty, interest, tax or other amount.

                                      -7-
<PAGE>   8

                  (2) Certain Pension Plans. All Plans that are intended to
         qualify under section 401 (a) of the Code either (i) have been
         determined by the IRS to be qualified under section 401 (a) of the Code
         or (ii) have applicable remedial amendment periods that will not have
         ended before the Closing Date.

                  (3) No Defined Benefit Pension Plans. Neither the Company nor
         any entity that has been treated as a single employer together with the
         Company under section 414 of the Code has maintained, had an obligation
         to contribute to, contributed to, or incurred any liability with
         respect to a plan that is or was a pension plan (as defined in section
         3(2) of ERISA) that is or was subject to Title IV of ERISA.

                  (4) Extended Medical Coverage. No employee welfare benefit
         plan (as defined in section 3(l) of ERISA) maintained by the Company
         provides medical, surgical, hospitalization or life insurance benefits
         (whether or not insured by a third party) for employees or former
         employees of the Company for periods extending beyond their
         terminations of employment, other than coverage mandated by the
         Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
         ("COBRA"); and the Company has not made any commitment to provide
         retiree medical, surgical, hospitalization or life insurance coverage
         for any current or former employees or directors of the Company (except
         as required by COBRA).

                  (5) Effect of this Transaction. Except as otherwise listed on
         the Seller Disclosure Schedules, the consummation of the transactions
         contemplated by this Agreement, either alone or in conjunction with
         another event (such as a termination of employment), will not (i)
         entitle any current or former employee or officer of the Company to
         severance pay from the Company, or any other payment under a Plan, (ii)
         accelerate the time of payment or vesting of benefits under a Plan, or
         (iii) increase the amount of compensation due any such employee or
         officer by the Company.

         (L) Taxes.

                  (1) Affiliated Groups. The Company has not been a member of an
         affiliated group (within the meaning of Section 1504 of the Code) or
         similar group under state, local or other applicable law filing
         consolidated tax returns other than the group the parent of which is
         Norstan ("Affiliated Group").

                  (2) Filing of Returns. The Company and the Affiliated Group of
         which the Company is or has been a member have filed, or caused to be
         filed in a timely manner, all Tax Returns (as defined below) required
         to be filed for each taxable period in which the Company was a member
         of the group on or before the date of this Agreement (taking into
         account any and all extensions) and all of those Tax Returns are
         complete and correct.

                  (3) Payment of Taxes. All Taxes (as defined below) due and
         payable or claimed to be due and payable from the Company have been
         timely paid in full or are not yet delinquent.

                  (4) Withholding. The Company has complied with all applicable
         laws relating to the withholding of Taxes (including, without
         limitation, withholding of Taxes pursuant to Sections 1441 and 1442 of
         the Code or similar provisions under any foreign laws),

                                      -8-
<PAGE>   9

         has, within the time and in the manner prescribed by those laws,
         withheld and paid over to the proper governmental body all amounts
         required to be so withheld and paid over under all such applicable laws
         and has, within the time and in the manner prescribed by those laws,
         filed all Tax Returns with respect to withholding.

                  (5) Encumbrances. Except for liens for ad valorem Taxes and
         real and personal property Taxes not yet delinquent, there are no
         Encumbrances for Taxes on the assets of the Company.

                  (6) Third-Party Taxes. The Company has no liability for the
         Taxes of any other person by contract or as transferor or successor, or
         otherwise.

                  (7) Tax Sharing. Except for: (i) Taxes in connection with
         leases of personal property by or to the Company; and (ii) a Tax
         sharing agreement by and among the Company, Seller and their affiliates
         which shall not be effective with respect to the Company after the
         Closing Date, the Company is not a party to, is not bound by, and has
         no obligation under, any contract, agreement or arrangement providing
         for the allocation or sharing of Taxes.

                  (8) Definitions. For purposes of this Agreement, "Taxes" shall
         mean and include all taxes, charges, fees, duties, levies, penalties or
         other assessments proposed by any federal, state or local authority
         within the United States of America, including income, gross IMP
         receipts, excise, property, sales, gains, use, license, capital stock,
         transfer, franchise, payroll, withholding, social security or other
         taxes, including any interest, penalties or additions attributable
         thereto (whether or not disputed); and "Tax Returns" shall mean and
         include all federal, state, and local tax returns, declarations,
         statements, reports, schedules, forms or information returns or claims
         for refunds relating to Taxes or other written information required to
         be supplied to any taxing authority in connection with Taxes (including
         any amended Tax Returns).

         (M) Insurance. Seller has delivered to Purchaser a listing of all
current insurance policies maintained by Seller with respect to Holding and the
Company through the Closing Date.

         IV. Representations and Warranties of Purchaser. Purchaser hereby
represents and warrants to Seller that, except as set forth in the disclosure
schedules attached hereto as Exhibit C and incorporated by reference herein (the
"Purchaser Disclosure Schedules"):

         (A) Authorization; Enforcement. Purchaser is a corporation validly
existing and in good standing under the laws of the State of Minnesota. This
Agreement has been duly executed and delivered by Purchaser constitutes the
valid and legally binding obligation of Purchaser, enforceable against Purchaser
in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally the enforcement of, creditors'
rights and remedies or by other equitable principles of general application.
Purchaser is not in violation of any provision of its articles of incorporation,
bylaws or other charter documents.

                                      -9-
<PAGE>   10

         (B) Promissory Notes. The Notes and the Purchaser Note are valid
receivables, are not subject to valid counterclaims or setoffs, and are
collectible in accordance with their terms.

         (C) Investment Intent. Purchaser is acquiring the Shares for
Purchaser's own account, for investment purposes only and not with a view to or
for distributing or reselling the Shares or any part thereof or interest
therein.

         (D) Purchaser's Status. At the date hereof, Purchaser is an "accredited
investor" within the meaning of Rule 501(a)(3) promulgated under the Securities
Act.

         (E) Access to Information. Purchaser acknowledges that as Chief
Executive Officer of the Company, Rubin (and, by attribution, Purchaser) has
been afforded (i) complete and unfettered access to the books, records and
personnel of the Company; (ii) the opportunity to ask such questions as Rubin
and/or Purchaser has deemed necessary of, and to receive answers from,
representatives of Seller concerning the business and affairs of the Company;
and (iii) the opportunity to obtain such additional information which Seller
possesses or can acquire without unreasonable effort or expense that is
necessary for Purchaser to make an informed investment decision with respect to
the Shares. Neither such inquiries nor any other investigation conducted by or
on behalf of Purchaser or Purchaser's representatives, agents or counsel shall
modify, amend or affect Purchaser's right to rely on the truth, accuracy and
completeness of Seller's representations and warranties contained herein;
provided, however, that Seller's representations and warranties shall have no
force or effect if, and to the extent that, Rubin has, at the Closing Date,
actual knowledge that such representations and warranties are untrue.

         (F) Reliance. Purchaser understands and acknowledges that (i) the
Shares are being offered and sold to Purchaser without registration under the
Securities Act in a private placement that is exempt from the registration
provisions of the Securities Act and (ii) the availability of such exemption,
depends in part on, and Seller will rely upon the accuracy and truthfulness of,
the foregoing representations and Purchaser hereby consents to such reliance.

         V. Covenants.

         (A) Conduct of Business. Each of Seller and Rubin covenant that, from
and after the execution of this Agreement through the Closing, except as
provided in Section V(B) below, the Company's business will be conducted in the
ordinary course, consistent with past practice, including without limitation
with respect to: solicitation of business, performance of, and billing for
consulting engagements, collection of accounts receivable, hiring and retention
of personnel, management of employee compensation and benefit matters, and
payment of accounts payable, salaries and other obligations of the Company.

         (B) Reductions in Force. During the period from the date hereof through
and including the Closing Date, Rubin and Seller shall jointly identify those
employees of the Company whose services will not be required after the Closing.
Rubin shall terminate the employment of such individuals (the "Terminated
Employees") on or prior to the Closing Date, providing each of the Terminated
Employees with the Company's standard severance arrangement. Seller agrees to
bear the entire severance cost associated with the Terminated Employees and to
indemnify Rubin, Purchaser and the Company with respect to such severance cost;
provided, however, that the foregoing indemnification protection shall not apply
if and to the extent that Purchaser incurs severance costs as a result of a
misrepresentation of Seller's standard severance arrangement or other breach of
this Section V(B).

                                      -10-
<PAGE>   11

         (C) Reasonable Best Efforts. Upon the terms and subject to the
conditions hereof, each of the parties hereto agrees to use its reasonable best
efforts promptly to take, or cause to be taken, all actions and to do, or cause
to be done, all things necessary, proper or advisable to consummate and make
effective the transactions contemplated by this Agreement. An undertaking of a
party under this Agreement to use such party's reasonable best efforts shall not
require such party to incur unreasonable expense or obligations in order to
satisfy such undertaking. If at any time after the Closing any further action is
necessary or desirable to carry out the purposes of this Agreement, each party
hereto and its proper officers, directors or other representatives will promptly
take such action.

         (D) Notification of Certain Matters. Purchaser, on the one hand, and
Seller, on the other hand, will each give prompt notice to the other of (i) the
occurrence, or failure to occur, of any event the occurrence or failure of which
would reasonably be likely to cause any of their respective representations or
warranties contained in this Agreement to be untrue or incorrect at any time
from the date hereof to the Closing Date, and (ii) any failure on their
respective parts or on the part of any of their respective officers, directors,
partners, employees, representatives or agents, if any, to comply with or
satisfy any covenant, condition or agreement to be complied with or satisfied by
each of them under this Agreement; provided, however, that no such notification
will alter or otherwise affect such representations, warranties, covenants,
conditions or agreements.

         (E) Performance on SAMI Consulting Projects. Purchaser agrees to use
its reasonable best efforts to satisfactorily perform, in all material respects,
Purchaser's obligations under any and all consulting and other projects in any
way arising out of or relating to the origin of the SAMI Note.

         (F) Litigation Cooperation. From and after the Closing Date, Purchaser
shall provide to Seller, at no cost to Seller (exclusive of Seller's obligation
to reimburse Purchaser's reasonable travel expenses) such support as Seller
shall require in connection with Seller's dispute with Michael Vadini and his
affiliated entities.

         (G) Equipment Leases. Exhibit D hereto sets forth a listing of certain
equipment leases under which Seller is the lessee and the related equipment is
in the possession of: (i) the Company (the "Company Leases"); or (ii) third
parties pursuant to sublease arrangements (the "Third Party Leases"). Each of
Seller and Purchaser undertakes to put forth its reasonable best efforts to
arrange for the assignment of the Company Leases from Seller to Purchaser on a
basis without recourse to Seller. If and to the extent that Seller and Purchaser
are unable to effect an assignment of the Company Leases, Purchaser covenants to
perform, in all material respects, the lessee's duties and obligations arising
thereunder. With respect to the Third Party Leases, Purchaser agrees to put
forth its reasonable best efforts to invoice and collect the monthly payment
obligations of such third parties in accordance with the payment schedule set
forth in Exhibit D and to remit such payment to the equipment lessor, all in a
manner

                                      -11-
<PAGE>   12

consistent with past practice, until the expiration of the applicable
equipment lease obligations. If and to the extent that Purchaser is unable to
collect the monthly payment obligations from the third parties, Purchaser shall
provide Seller with timely notice thereof and thereafter remit the appropriate
payments to the equipment lessor following receipt of same from Seller.

         (H) Closed Facility Leases. Exhibit E hereto enumerates certain
facilities leases to which the Company is a party and, as of the date of this
Agreement, are not in use by the Company. Seller agrees to assume each of the
leasehold obligations identified in Exhibit E (the "Closed Facility Leases") and
to indemnify, defend and hold Purchaser harmless from and against and in respect
of any and all liabilities, losses, damages, claims, costs and expenses arising
from or relating in any manner to the Closed Facility Leases.

         VI. Transition Matters.

         (A) Shared Office Space. The parties acknowledge and agree that Seller
and the Company currently occupy joint office facilities pursuant to leasehold
interests held by Seller in the cities of Minnetonka, Minnesota, Milwaukee,
Wisconsin, Des Moines, Iowa, Omaha, Nebraska, Cleveland, Ohio and Columbus,
Ohio. During the 12-month period commencing on the Closing Date, subject to
Seller's receipt of any and all third party consents required under the terms of
Seller's lease agreements, Purchaser shall be permitted to occupy the space now
occupied by the Company without cost to Purchaser, provided, however, that in
the event Seller's occupancy of any such facility is terminated for any reason
during such 12-month period, Purchaser's right to occupy the related facilities
shall terminate simultaneously; and, provided further, that if Seller's
occupancy is so terminated, Seller shall use its reasonable best efforts to
provide Purchaser with reasonably prompt notice thereof.

         (B) Other Office Space; Office Equipment. Each of Purchaser and Seller
agrees to put forth its reasonable best efforts to arrange for the assignment by
Seller to Purchaser on a nonrecourse basis to Seller of Seller's leasehold
interest in the Warren, New Jersey office facility and office machines and
equipment currently utilized by the Company therein. In the event that the
parties are unsuccessful with respect to any one or more of such lease
assignments, Seller shall put forth its reasonable best efforts to enable
Purchaser to obtain all rights and privileges associated with any such lease,
subject to Seller's receipt of any and all third party consents required under
the terms of Seller's lease agreements. Purchaser hereby undertakes to perform
all of Seller's duties and satisfy all of Seller's other obligations under each
agreement not assignable to Purchaser on a nonrecourse basis to Seller and
Seller agrees not to extend or otherwise modify or amend its obligations under
any such agreement without Purchaser's prior written consent.

         (C) Telephone and Switchboard Equipment. During the 12-month period
commencing on the Closing Date, Purchaser shall be permitted to utilize Seller's
telephone and switchboard equipment currently in the space now occupied by the
Company without cost to Purchaser, provided, however, that in the event Seller's
occupancy of any such facility is terminated for any reason during such 12-month
period, Purchaser's right to utilize the related telephone and switchboard
equipment shall terminate simultaneously.

                                      -12-
<PAGE>   13

         (D) Information System Support. During the 12-month period commencing
on the Closing Date, Seller shall provide Purchaser with the information systems
support services reasonably required by Purchaser at a price of $31.00 per hour,
payable monthly upon receipt of Seller's invoice. Notwithstanding the preceding
sentence, Seller shall provide Purchaser with labor support for Purchaser's
Portera Software installation and transition without charge therefor for a
period of three months following the Closing Date.

         (E) Corporate Software Systems. For a period of 90 days commencing on
the Closing Date, Seller shall permit Purchaser to access all of Seller's
corporate software applications currently utilized by the Company and Purchaser
agrees to reimburse Seller for all direct costs incurred by Seller in connection
therewith. During such 90-day period, Seller shall provide reasonable consulting
assistance to Purchaser in connection with the selection, implementation, and
conversion to a new financial and HR software system for the Company at no cost
or expense to the Company.

         (F) Name Change. Purchaser acknowledges and agrees that on and after
the Closing Date, Purchaser shall use its reasonable best efforts to
discontinue, as soon as possible, all use of the name "Norstan" and any and all
logos in any way similar to those currently maintained by Seller, and in no
event shall Purchaser's use continue after 60 days following the Closing Date.
Purchaser agrees to file an amendment of the Company's articles of incorporation
with the office of the Minnesota Secretary of State to effect a change in the
name of the Company within 30 days after the Closing Date. Purchaser further
agrees to execute and deliver to Seller, upon Seller's request, any and all
instruments required, in the reasonable judgment of Seller, to effect an
assignment from the Company to Seller of any and all logos, trademarks, service
marks, and other intellectual property identifiable with the name "Norstan"
registered in the name of the Company with any federal state, or foreign
government or agency thereof. Seller shall reimburse Purchaser for all costs
incurred by Purchaser during the six-month period following the Closing Date for
services provided by third parties to effect and advertise a name change for the
Company, subject to a maximum reimbursement obligation of $100,000. Purchaser
agrees to indemnify Seller for any and all losses or other damages Seller may
incur in connection with, or in any way arising out of, Purchaser's use, after
the Closing Date, of the name "Norstan" or any logo or other symbol maintained
by, or otherwise identified with Seller.

         (G) Corporate Travel Programs. Purchaser may utilize Seller's corporate
travel and American Express programs in a manner consistent with the Company's
current use of same for a period of three months following the Closing Date;
provided, however, that Purchaser shall pay for all expenses incurred by
Purchaser or its employees under these programs and Purchaser agrees to
indemnify Seller for all such expenses.

         (H) Human Resources and Payroll Processing. During the three-month
period commencing on the Closing Date, Seller shall provide Purchaser with human
resources support services, including human resources training, at no cost to
Purchaser. During the same period, Seller shall process or cause Purchaser's
payroll to be processed, provided, that: (i) Purchaser shall reimburse Seller
for all third-party payroll processing charges and expenses incurred on
Purchaser's behalf; and (ii) Purchaser shall deliver to Seller via cashier's
check or wire transfer sufficient funds to cover each Purchaser payroll
processed by Seller, prior to the processing thereof.

                                      -13-
<PAGE>   14

         (I) Consulting Opportunities. Seller agrees to put forth its reasonable
best efforts to offer Purchaser a reasonable opportunity to bid on internal and
external consulting projects reasonably deemed by Seller to be within
Purchaser's expertise and availability of resources and identified by Seller
during the 24-month period following the Closing Date. Such projects shall not
include work Seller may substantially perform with internal resources.

         (J) Accounts Receivable Collections Support. During the 60-day period
commencing on the Closing Date, Seller shall provide to Purchaser, at no cost to
Purchaser, accounts receivable collections support on a level consistent with
the services rendered by Seller to the Company immediately prior to the Closing
Date.

         (K) 401(k) Plan Contributions. On or before January 31, 2002, Seller
shall pay to Purchaser an amount equal to, and representing, a matching 401(k)
contribution on a pro rata basis for amounts contributed by employees of the
Company during the period from January 1, 2001 to the Closing Date who are
continuously employed by the Company during the period from the Closing Date to
and including December 31, 2001.

         (L) Release. Purchaser hereby grants to Seller and Seller's affiliates,
together with their respective officers, directors, employees and other agents
and representatives, an unconditional release of liability for any and all
losses or damages that may be incurred by Purchaser and Purchaser's affiliates
and their respective officers, directors, employees and other agents and
representatives directly or indirectly resulting from, or in any arising out of,
Seller's provision of services to Purchaser pursuant to this Article VI;
provided, however, that the foregoing shall not apply in connection with any act
of gross negligence or willful misconduct by Seller's officers, directors,
employees, agents and representatives.

         VII. Conditions Precedent to the Closing.

         (A) Conditions Precedent to Purchaser's Obligation to Close.
Notwithstanding any other provision herein, the obligation of Purchaser to
consummate the transactions contemplated hereunder are, at the option of
Purchaser, subject to the satisfaction of each of the conditions set forth
below:

                  (1) Agreements and Conditions. On or before the Closing Date,
         Seller shall have complied with and duly performed all agreements and
         conditions to be complied with or performed by Seller on or before the
         Closing Date pursuant to or in connection with this Agreement.

                  (2) Representations and Warranties. The representations and
         warranties of Seller contained in this Agreement shall be true and
         correct in all material respects on and as of the Closing Date with the
         same force and effect as though such representations and warranties had
         been restated and made on and as of the Closing Date, except for those
         representations and warranties which speak as of a specified date.

                  (3) Opinion of Counsel. Purchaser shall have received an
         opinion of Maslon Edelman Borman & Brand, LLP, counsel for Seller, in
         form and substance reasonably satisfactory to Purchaser and its
         counsel.

                                      -14-
<PAGE>   15

                  (4) No Legal Proceedings. No legal proceeding shall have been
         instituted or threatened which, in Purchaser's reasonable opinion,
         questions or reasonably appears to portend subsequent questioning of
         the validity or legality of this Agreement or the transactions
         contemplated hereby or seeks to restrict, limit, prohibit or enjoin (or
         to obtain damages as a result of) such transactions or may have a
         Company Material Adverse Effect.

                  (5) Officer's Certificate. Purchaser shall have received a
         certificate dated the Closing Date and executed by the Chief Executive
         Officer or the Chief Financial Officer of Seller, certifying that the
         representations and warranties made by Seller in this Agreement are
         true and correct in all material respects at and as of the Closing Date
         (except for such representations and warranties which speak as of a
         specified date), and that Seller has fulfilled all conditions to the
         Closing provided for in this Agreement to be fulfilled by Seller.

                  (6) Consents and Releases. All consents, approvals and
         releases, including but not limited to releases of any security
         interests in or to the Shares, required in connection with the
         transactions contemplated by this Agreement, all in form and substance
         reasonably satisfactory to Purchaser, shall have been obtained.

         (B) Conditions Precedent to Seller's Obligation to Close.
Notwithstanding any other provision herein, the obligation of Seller to
consummate the transactions contemplated hereunder are, at the option of Seller,
subject to the satisfaction of each of the conditions set forth below:

                  (1) Lender Consent. Seller shall have received from its
         lenders under the Seller Credit Agreement all consents required
         thereunder to effect and consummate the transactions contemplated by
         this Agreement and a full and complete release of all related security
         interests in the Shares, the capital stock of the Company and the
         assets of Holding and the Company.

                  (2) Conversion of SAMI Accounts Receivable; Guarantee. The
         Company, acting through Rubin, shall have converted the Company's
         accounts receivable from Substance Abuse Management Inc. into the SAMI
         Note and obtained an unconditional personal guarantee of the SAMI Note
         from the sole shareholder of SAMI.

                  (3) Assignment of Titan Litigation. The Company shall have
         assigned to Seller all of the Company's right, title to, and interest
         in, all claims the Company has or may have in the future, arising out
         of Seller's acquisition of Vadini Inc., the formation and operation of
         Titan Technology and all related matters, together with all litigation
         or arbitration conducted in connection therewith.

                  (4) Agreements and Conditions. On or before the Closing Date,
         Purchaser shall have complied with and duly performed all agreements
         and conditions to be complied with or performed by Purchaser on or
         before the Closing Date pursuant to or in connection with this
         Agreement.

                  (5) Representations and Warranties. The representations and
         warranties of Purchaser contained in this Agreement shall be true and
         correct in all material respects on and as of the Closing Date with the
         same force and effect as though such

                                      -15-
<PAGE>   16

         representations and warranties had been restated and made on and as of
         the Closing Date, except for those representations and warranties which
         speak as of a specified date.

                  (6) Opinion of Counsel. Purchaser shall have received an
         opinion of Lindquist & Vennum, PLLP, counsel for Purchaser, in form and
         substance reasonably satisfactory to Seller and its counsel.

                  (7) No Legal Proceedings. No legal proceeding shall have been
         instituted or threatened which, in Seller's reasonable opinion,
         questions or reasonably appears to portend subsequent questioning of
         the validity or legality of this Agreement or the transactions
         contemplated hereby or seeks to restrict, limit, prohibit or enjoin (or
         to obtain damages as a result of) such transactions.

                  (8) Officer's Certificate. Seller shall have received a
         certificate dated the Closing Date and executed by the Chief Executive
         Officer or the Chief Financial Officer of Purchaser, certifying that
         the representations and warranties made by Purchaser in this Agreement
         are true and correct in all material respects at and as of the Closing
         Date (except for such representations and warranties which speak as of
         a specified date), and that Purchaser has fulfilled all conditions to
         the Closing provided for in this Agreement to be fulfilled by
         Purchaser.

                  (9) Employment Contract. Rubin shall have consented in writing
         to: (i) the assignment of his employment agreement with Seller, dated
         March 1, 2000, from Seller to the Company without further liability to
         Seller; or (ii) the termination of same without further liability to
         Seller.

         VIII. Termination of the Agreement.

         (A) Termination by Mutual Consent. This Agreement may be terminated at
any time prior to the Closing Date by the mutual written consent of Purchaser
and Seller. This Agreement shall automatically terminate if the Closing has not
occurred on or before May 1, 2001 unless such date is extended by written
consent of the parties hereto.

         (B) Termination by Purchaser. Purchaser may terminate this Agreement by
written notice to Seller at any time prior to the Closing Date if:

                  (1) a condition to the performance of Purchaser set forth
         herein shall not be fulfilled on or before the date specified for the
         fulfillment thereof, unless such failure is a result of acts or
         failures to act of the Purchaser; or

                  (2) a material default under or a material breach of this
         Agreement or a material misrepresentation or a material breach of any
         representation, warranty or covenant of Seller set forth in this
         Agreement or in any instrument delivered by Seller pursuant hereto
         shall have occurred and be continuing unless the same is curable and is
         cured by Seller prior to the Closing Date.

         (C) Termination by Seller. Seller may terminate this Agreement by
written notice to Purchaser at any time prior to the Closing Date if:

                                      -16-
<PAGE>   17

                  (1) a condition to the performance of Seller set forth herein
         shall not be fulfilled on or before the date specified for the
         fulfillment thereof, unless such failure is a result of acts or
         failures to act of Seller; or

                  (2) a material default under or a material breach of this
         Agreement or a material misrepresentation or a material breach of any
         representation, warranty or covenant of Purchaser set forth in this
         Agreement or in any instrument delivered by Purchaser pursuant hereto
         shall have occurred and be continuing unless the same is curable and is
         cured by Purchaser prior to the Closing Date.

         (D) Effect of Termination. In the event of the termination and
abandonment hereof prior to the Closing Date pursuant to the provisions of this
Section VIII, this Agreement shall become void and have no effect, and each
party shall pay all of its own expenses incurred in connection herewith, without
any liability on the part of any party or its partners, directors, officers or
shareholders; provided, however, that if this Agreement is terminated and
abandoned because either party has defaulted under or breached this Agreement or
any representation, warranty or covenant set forth in this Agreement, then the
party so electing to terminate this Agreement shall be entitled to pursue,
exercise and enforce any and all other remedies, rights, powers and privileges
available to it at law or in equity.

         IX. Survival.

         (A) Representations and Warranties. The representations and warranties
of the parties in this Agreement shall survive the Closing and any
investigations made by or on behalf of any of the parties hereto for the
following periods, after which periods such representations and warranties shall
be of no further force and effect unless written notice of a claim with respect
to such representation and warranty shall have been given to the party
responsible therefor prior to the expiration thereof:

                  (1) The representations and warranties contained in Section
         III(K) shall survive, with respect to a particular tax period, until
         six months after the applicable limitations period (including waivers
         and extensions) shall have barred any assessment of tax deficiencies
         for such tax period or, if later, until six months after the final
         unappealable decision by a court of competent jurisdiction with respect
         to such tax.

                  (2) All other representations and warranties of Seller shall
         survive the Closing for a period of one year.

         (B) Covenants. All covenants of any party hereto which are not fully
performed as of the Closing shall survive the Closing for a period of one year
following the expiration of the applicable performance period.

         X. Indemnification.

         (A) Indemnification by Seller. Without limiting any other substantive
remedy Purchaser may expressly have hereunder, Seller hereby agrees to
indemnify, defend and hold Purchaser harmless from and against and in respect of
any and all liabilities, losses, damages, claims, costs and expenses, including
reasonable attorneys' fees (collectively, "Claims"), arising

                                      -17-
<PAGE>   18

from or relating in any manner to: (i) the breach of any representation or
warranty of Seller contained herein; or (ii) the failure of Seller to perform
any of its covenants contained herein. Seller's indemnification obligations
shall apply whether the subject Claims arise from third party claims (including
but not limited to claims made by shareholders of Seller) or not. In addition,
Seller hereby agrees to assume, and bear all expenses incurred in connection
with, Purchaser's defense against that certain action brought against the
Company under a complaint filed on April 27, 2001 by TechSkills, LLC in the
Circuit Court of Milwaukee County, Wisconsin, and to indemnify and hold
Purchaser harmless from and against and in respect of any and all liabilities,
losses, damages, claims, costs and expenses, including reasonable attorneys'
fees, arising from or relating in any manner to the aforementioned complaint;
provided, however, that such indemnification protection shall not apply in
connection with any liabilities, losses, damages, claims, costs and expenses
incurred by Purchaser as a result of any acts or omissions by the Company in
relation to the subject matter of the complaint subsequent to April 30, 2000;
and, provided further, that if any resolution of the TechSkills complaint
unfavorable to Purchaser, whether by settlement or judgment, is limited to a
reduction in the amount owed by TechSkills under the TechSkills Note, Purchaser
shall not be entitled to any indemnification protection hereunder, but shall
only be entitled to a reduction of the Purchaser Guarantee in accordance with
the provisions of Section I(C) hereof.

         (B) Indemnification by Purchaser. Without limiting any other
substantive remedy Seller may expressly have hereunder, Purchaser hereby agrees
to indemnify, defend, and hold Seller harmless from and against and in respect
of any and all liabilities, losses, damages, claims, costs and expenses,
including reasonable attorneys' fees (collectively, "Claims"), arising from or
relating in any manner to: (i) subject to the limitations set forth in Section
I(C) hereof with respect to Purchaser's assignment of the Notes, the breach of
any representation or warranty of Purchaser contained herein; or (ii) the
failure of Purchaser to perform any of its covenants contained herein.
Purchaser's indemnification obligations shall apply whether the subject Claims
arise from third party claims or not.

         (C) Procedure for Claiming Indemnification.

                  (1) The party seeking indemnification (the "Indemnitee") shall
         give the party from whom indemnification is sought (the "Indemnitor")
         notice of any claim or the commencement of action or proceeding
         promptly after the Indemnitee receives notice thereof; provided,
         however, that the failure of the Indemnitee to give notice shall not
         relieve the Indemnitor of its obligations hereunder, except to the
         extent the Indemnitor is actually prejudiced or harmed by such failure
         to give notice. The Indemnitor shall be permitted to assume the defense
         of any such claim or litigation resulting from such claim, with counsel
         reasonably satisfactory to the Indemnitee. The Indemnitor shall provide
         Indemnitee written notice of such assumption of defense within thirty
         (30) days of receipt by the Indemnitor of notice of the proceeding.

                  (2) If the Indemnitor assumes the defense of any such claim or
         litigation resulting therefrom, the Indemnitor shall take all steps
         necessary in the defense or settlement of such claim or litigation
         resulting therefrom and hold the Indemnitee harmless from and against
         any and all losses, damages and liabilities caused by or arising out of
         any settlement approved by the Indemnitor or any judgment in connection
         with such claim or litigation resulting

                                      -18-
<PAGE>   19

         therefrom. The Indemnitee may participate, at its expense, in the
         defense of any such claim or litigation, provided that the Indemnitor
         shall direct and control the defense of such claim or litigation.
         Except with the written consent of the Indemnitee, the Indemnitor shall
         not, in the defense of such claim or any litigation resulting
         therefrom, consent to entry of any judgment or enter into any
         settlement which does not include as an unconditional term thereof, the
         giving by the claimant or the plaintiff to the Indemnitee of a release
         from all liability with respect to the claim or litigation.

                  (3) If the Indemnitor shall not assume the defense of any such
         claim or litigation resulting therefrom, the Indemnitee may defend
         against such claim or litigation in such manner as it may deem
         appropriate and, unless the Indemnitor shall deposit with the
         Indemnitee a sum equivalent to the total amount demanded in such claim
         or litigation, or shall deliver to Indemnitee a surety bond in form and
         substance reasonably satisfactory to Indemnitee, Indemnitee may settle
         such claim or litigation on such terms as it may reasonably deem
         appropriate, and the Indemnitor shall promptly reimburse Indemnitee for
         the amount of all expenses, legal or otherwise, reasonably incurred by
         the Indemnitee in connection with the defense against or settlement of
         such claim or litigation, net of any related income tax benefit
         realized by the Indemnitee. If no settlement of such claim or
         litigation is made, the Indemnitor shall promptly reimburse the
         Indemnitee for the amount of any final judgment rendered with respect
         to such claim or in such litigation and for all reasonable expenses,
         legal or otherwise, incurred by the Indemnitee in the defense against
         such claim or litigation, but only to the extent that such amounts are
         actually paid.

         XI. Post-Closing Tax Covenants.

         (A) Taxes of Other Persons. Seller agrees to indemnify Purchaser and
the Company from and against the entirety of any adverse consequences Purchaser
or the Company may suffer resulting from, arising out of, relating to, in the
nature of, or caused by any liability of either Seller for Taxes of any entity
other than the Company (i) under Treasury Reg. ss.1.1502-6 (or any similar
provision of state, local or foreign law), (ii) as a transferee or successor,
(iii) by contract, or (iv) otherwise.

         (B) Returns for Periods Through the Closing Date. Seller will include
the income of the Company (including any deferred income triggered into income
by Treasury Reg. ss.1.1502-13 and Treasury Reg. ss.1.1502-14 and any excess loss
accounts taken into income under Reg. ss.1.1502-19) on Seller's consolidated
federal income Tax Returns for all periods through the Closing Date and pay any
federal income Taxes attributable to such income. Purchaser will cause the
Company to furnish Tax information to Seller for inclusion in Seller's federal
consolidated income Tax Return for the period which includes the Closing Date in
accordance with the Company's past custom and practice. Seller will allow
Purchaser an opportunity to review and comment upon such Tax Returns (including
any amended returns) to the extent that they relate to the Company. Seller will
take no position on such returns that relate to the Company that would adversely
affect the Company after the Closing Date unless such position would be
reasonable in the case of an entity that owned the Company both before and after
the Closing Date. The income of the Company will be apportioned to the period up
to and including the Closing Date and the period after the Closing Date by
closing the books of the Company as of the end of the Closing Date. Seller shall
remain responsible for any state and/or federal

                                      -19-
<PAGE>   20

income Taxes attributable to the income of the Company for all periods up to and
including the Closing Date. To the extent that the Company has paid to Seller
any amounts for Taxes on the Company's income for the period from January 1,
2001 up to and including the Closing Date, in excess of the amount of Tax
actually attributable to such income, Seller will reimburse the Company for such
excess within 30 days of the filing deadline for the relevant Tax Return.

         (C) Audits. Seller will allow Purchaser and its counsel to participate,
at Purchaser's own expense, in any audits of Seller's consolidated federal
income Tax Returns to the extent that such returns relate to the Company. Seller
will not settle any such audit in a manner which would adversely affect the
Company after the Closing Date unless such settlement would be reasonable in the
case of an entity that owned the Company both before and after the Closing Date.

         XII. General.

         (A) Further Assurances. Purchaser and Seller agree that, on and after
the Closing Date, they shall take all appropriate action and execute any
documents, instruments or conveyances of any kind which may be reasonably
necessary or advisable to carry out any of the provisions hereof.

         (B) Amendment and Waiver. This Agreement may not be amended or waived
except in a writing executed by the party against which such amendment or waiver
is sought to be enforced. No course of dealing between or among any persons
having any interest in this Agreement will be deemed effective to modify or
amend any part of this Agreement or any rights or obligations of any person
under or by reason of this Agreement.

         (C) Severability. In case any one or more of the provisions of this
Agreement shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not
in any way be affected or impaired thereby and the parties will attempt to agree
upon a valid and enforceable provision which shall be a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in
this Agreement.

         (D) Notices. All notices, demands and other communications to be given
or delivered under or by reason of the provisions of this Agreement will be in
writing and will be deemed to have been given when personally delivered or
mailed by first class mail, return receipt requested, or when receipt is
acknowledged, if sent by facsimile, telecopy or other electronic transmission
device. Notices, demands and communications to Purchaser and Seller will, unless
another address is specified in writing, be sent to the address indicated below:

<TABLE>
<CAPTION>
If to Seller:                                                If to Purchaser:
------------                                                 ---------------
<S>                                                          <C>
Norstan, Inc.                                                Synchromesh Consulting, Inc.
5101 Shady Oak Road                                          5101 Shady Oak Road
Minnetonka, MN 55343-4100                                    Minnetonka, MN 55343-4100
Attention: Scott G. Christian                                Attention: Barry R. Rubin
telephone: 952.352.4034                                      telephone: 952.352.5612
telecopy:  952.352.4461                                      telecopy:  952.238.5612
</TABLE>

                                      -20-
<PAGE>   21

<TABLE>
<CAPTION>
With copies to:                                              With a copy to:
--------------                                               --------------
<S>                                                          <C>
Maslon Edelman Borman & Brand, LLP                           Lindquist & Vennum, PLLP
3300 Wells Fargo Center                                      4200 IDS Center
Minneapolis, MN 55402                                        Minneapolis, MN 55402
Attention: Philip Tilton                                     Attention: Robert Hartman and Jeffrey Saunders
telephone: 612.672.8200                                      telephone: 612.371-3211
telecopy:  612.672.8397                                      telecopy:  612.371.3207

Jerry P. Lehrman
Norstan, Inc.
5101 Shady Oak Road
Minnetonka, MN 55343-4100
telephone: 952.352.4075
telecopy:  952.352.4907
</TABLE>

         (E) Assignment. This Agreement and all of the provisions hereof will be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns, except that neither this Agreement nor any of
the rights, interests or obligations hereunder may be assigned by Purchaser
without the prior written consent of Seller, or assigned by Seller (other than
to any successor to Seller by merger, consolidation, share exchange or sale of
all or substantially all of Seller's assets) without the prior written consent
of Purchaser.

         (F) Severability. Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement is held to be prohibited by or
invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

         (G) Complete Agreement. This Agreement and the exhibits hereto contain
the complete agreement between the parties and supersede any prior
understandings, agreements or representations by or between the parties, written
or oral, which may have related to the subject matter hereof in any way.

         (H) Counterparts. This Agreement may be executed in one or more
counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together will constitute one and the same
instrument.

         (I) Governing Law. The internal law, without regard to conflicts of
laws principles, of the State of Minnesota will govern all questions concerning
the construction, validity and interpretation of this Agreement and the
performance of the obligations imposed by this Agreement.

                                      -21-
<PAGE>   22

         (J) Authority. The persons executing this Agreement on behalf of the
entity parties hereto hereby represent and warrant that they are duly authorized
to execute and deliver this Agreement on behalf of the party for whom they are
signing and that no further action is required on behalf of such party in
connection with the execution and delivery of this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                      -22-
<PAGE>   23

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

NORSTAN, INC.

By: /s/ Scott G. Christian
   ------------------------------------
    Its: CFO

SYNCHROMESH CONSULTING, INC.           Barry R. Rubin, individually
                                       (solely with respect to Articles IV(E)
                                       and V hereof):

                                       /s/ Barry R. Rubin
                                       -----------------------------------------

By: /s/ Barry R. Rubin
   -----------------------------------
    Its: CEO/President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00027-of-00352.parquet"}]]