Document:

<PAGE>
                                                                   EXHIBIT 10(g)

                        FIRST AMENDMENT TO SECOND AMENDED
                          AND RESTATED CREDIT AGREEMENT

      This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment"), made and entered into as of July 15, 2003, is by and between
Norstan, Inc., a Minnesota corporation (the "Borrower"), the banks which are
signatories hereto (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

      1. The Borrower, the Banks and the Agent entered into a Second Amended and
Restated Credit Agreement dated as of July 12, 2002 (the "Credit Agreement");
and

      2. The Borrower desires to amend certain provisions of the Credit
Agreement, and the Banks and the Agent have agreed to make such amendments,
subject to the terms and conditions set forth in this Amendment.

                                    AGREEMENT

      NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto hereby covenant
and agree to be bound as follows:

      SECTION 1. CAPITALIZED TERMS. Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to them in the Credit
Agreement, unless the context shall otherwise require.

      SECTION 2. AMENDMENTS. The Credit Agreement is hereby amended as follows:

            2.1 DEFINITIONS. The definitions of "Applicable Margin," "Mandatory
      Debt Repayments" and "Revolving Commitment Amount" contained in Section
      1.1 of the Credit Agreement are amended to read in their entireties as
      follows:

            "Applicable Margin": For each Prime Rate Advance, for each
      Eurodollar Rate Advance (as in effect on the first day of the applicable
      Interest Period for such Eurodollar Rate Advance) and for each Unused
      Revolving Commitment Fee, the Applicable Margin set forth in the table
      below as in effect on the date of determination, determined based on the
      Cash Flow Leverage Ratio calculated as of the end of the most recent
      fiscal quarter of the Borrower (adjustment to the Applicable Margins to
      become effective on the first day of the first month following the date
      the Borrower is required to deliver its financial statements for the last
      month of any fiscal quarter under Section 5.1(c)):

<PAGE>

<Table>
<Caption>
                                                     Eurodollar Rate          Prime Rate          Unused Revolving
                 Cash Flow Leverage Ratio                Advances              Advances            Commitment Fees
                 ------------------------                --------              --------           ----------------
<S>                                                  <C>                      <C>                 <C>
                 Greater than 3.00 to 1.00                4.00%                  2.00%                 0.375%

                 Less than or equal to 3.00 to            3.50%                  1.50%                 0.375%
                 1.00 but greater than 2.25 to
                 1.00

                 Less than or equal to 2.25 to            3.00%                  1.00%                 0.375%
                 1.00 but greater than 1.75 to
                 1.00

                 Less than or equal to 1.75 to            2.50%                 0.500%                 0.375%
                 1.00 but greater than 1.50 to
                 1.00

                 Less than or equal to 1.50 to            2.00%                 0.000%                 0.250%
                 1.00
</Table>

          Notwithstanding the foregoing, (a) if the Borrower has not furnished
          the financial statements and reports required under Section 5.1(c)
          for the last month of any fiscal quarter by the time specified in such
          section, the Applicable Margins shall be calculated as if the Cash
          Flow Leverage Ratio as of the end of such fiscal quarter was greater
          than 3.00 to 1.00 for the period from the first day of the first month
          following the date the Borrower is required to deliver its financial
          statements for the last month of any fiscal quarter under Section
          5.1(c) until the first day of the month following the month in which
          such financial statements and reports are delivered and (b) until and
          including August 30, 2003, the Applicable Margin for Eurodollar Rate
          Advances shall be 2.50%, the Applicable Margin for Prime Rate Advances
          shall be 0.500% and the Applicable Margin for Unused Revolving
          Commitment Fees shall be 0.375%.

                   "Mandatory Debt Repayments": For any period of determination,
          the sum of all required principal payments upon all Indebtedness of
          the Borrower or any Subsidiary (including all payments, without
          duplication, with respect to Capitalized Lease Obligations of the
          Borrower and the Subsidiaries, but excluding payments upon
          Indebtedness existing on the date hereof secured by NFS Lease Accounts
          or Norstan Canada Lease Accounts and related leases, equipment and
          servicing arrangements).

                   "Revolving Commitment Amount": With respect to a Bank and as
          to any time period, 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 by Sections 2.6(e)
          or 2.8.

                                      -2-
<PAGE>

                   2.2 CONDITIONAL INCREASE OF REVOLVING COMMITMENTS. Section
          2.6(e) of the Credit Agreement is amended by deleting the second and
          third sentences thereof.

                   2.3 USE OF LOAN PROCEEDS. Section 2.15 of the Credit
          Agreement is amended by inserting the following immediately prior to
          the period at the end of the third sentence thereof:

                            ; provided, that the proceeds of the Revolving Loan
                   made on the effective date of the First Amendment to this
                   Agreement in an amount equal to the then outstanding
                   principal amount of the Term Loan shall be used to repay such
                   outstanding principal amount.

                   2.4 SALE AND LEASEBACK TRANSACTIONS. Section 6.2(c) of the
          Credit Agreement is deleted in its entirety and the following is
          substituted in lieu thereof:

                            (c) arrangements whereby the Borrower or a
                   Subsidiary sells or transfers any equipment, and thereafter
                   leases such equipment pursuant to a Capitalized Lease for the
                   same or a substantially similar purpose or purposes as the
                   equipment sold or transferred, so long as (i) the
                   Indebtedness under the related Capitalized Lease is permitted
                   by Section 6.10(d), and (ii) no Default or Event of Default
                   is then continuing or would arise therefrom; and,

                            (d) other sales or transfers of assets by the
                   Borrower or a Subsidiary so long as (i) such sales or
                   transfers do not exceed $1,000,000 in the aggregate in any
                   fiscal year and (ii) no Default or Event of Default is then
                   continuing or would arise therefrom.

                   2.5 PERMITTED LIENS. Section 6.11(g) of the Credit Agreement
          is deleted in its entirety and the following is substituted in lieu
          thereof:

                            (g) The interest of any lessor under any Capitalized
                   Lease entered into after the Closing Date, purchase money
                   Liens on property acquired after the Closing Date or Liens on
                   property refinanced after the Closing Date; provided, that,
                   (i) the Indebtedness secured thereby is otherwise permitted
                   by this Agreement and (ii) such Liens are limited to the
                   property acquired or refinanced and do not secure
                   Indebtedness other than the related Capitalized Lease
                   Obligations, the purchase price of such property (as to any
                   property acquired) or the fair market value of such property
                   (as to any property refinanced).

                   2.6 PERMITTED INVESTMENTS. Section 6.9 of the Credit
          Agreement is amended by deleting the text of subparagraph (p) thereof
          and by substituting in lieu thereof the text "[Reserved]" and by
          inserting the following new sentence at the end thereof:

                            Notwithstanding anything to the contrary in this
                   Agreement, from and after the date of the First Amendment
                   hereto, without the prior written consent of the Banks, the
                   Borrower shall not, and shall not permit any Subsidiary to,
                   consummate any Permitted Acquisition.

                                      -3-
<PAGE>

                   2.7 CAPITAL EXPENDITURES. Section 6.14 of the Credit
          Agreement is deleted in its entirety and the following is substituted
          in lieu thereof:

                            Section 6.14 CAPITAL EXPENDITURES. 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 periods: (a)
                   $9,000,000 during the fiscal year ending on or about April
                   30, 2004 (of which amount, not more than $3,000,000 of
                   Capital Expenditures not financed with Indebtedness shall be
                   made during the first two fiscal quarters of the fiscal year
                   ending April 30, 2004) and (b) $12,000,000 during the fiscal
                   year ending on or about April 30, 2005.

                   2.8 TANGIBLE NET WORTH. Section 6.15 of the Credit Agreement
          is amended to read in its entirety as follows:

                            Section 6.15 Tangible Net Worth. The Borrower will
                   not permit the Tangible Net Worth to be less than:

                                     (i) as of the last day of any fiscal
                            quarter during the fiscal year ending April 30,
                            2004, $15,500,000; and

                                     (ii) as of the last day of any fiscal
                            quarter during the fiscal year ending April 30, 2005
                            and each fiscal year thereafter, the greater of (A)
                            the Tangible Net Worth required to be maintained
                            by the Borrower to be in compliance with this
                            Section 6.15 as of the last day of the preceding
                            fiscal year and (B) 95 percent (95%) of the
                            Borrower's Tangible Net Worth as at the last day of
                            the preceding fiscal year,

                   provided that, the minimum amount of Tangible Net Worth
                   required to be maintained pursuant to this Section shall be
                   automatically and permanently increased by the amount of the
                   Net Proceeds received by the Borrower in connection with the
                   issuance of any equity securities (excluding equity
                   securities issued pursuant to the Borrower's employee stock
                   option arrangements in the ordinary course of business) of
                   the Borrower from and after the Closing Date.

                   2.9 QUARTERLY EARNINGS. Section 6.16 of the Credit Agreement
          is amended to read in its entirety as follows:

                   Section 6.16 Quarterly Earnings. The Borrower shall not
          permit EBT to be less than $0.00 as of the last day of any fiscal
          quarter (commencing with the last day of the fiscal quarter ending on
          or about October 31, 2003), calculated on a cumulative basis for such
          fiscal quarter.

                   2.10 FIXED CHARGE COVERAGE RATIO. Section 6.17 of the Credit
          Agreement is amended to read in its entirety as follows:

                   Section 6.17 Fixed Charge Coverage Ratio. The Borrower will
          not permit the Fixed Charge Coverage Ratio to be less than (a) 1.00 to
          1.00 as of the last day of the

                                      -4-
<PAGE>

          Borrower's fiscal quarter ending on or about October 31, 2004 and (b)
          1.20 to 1.00 as of the last day of each other fiscal quarter of the
          Borrower.

                   2.11 CASH FLOW LEVERAGE RATIO. Section 6.18 of the Credit
          Agreement is amended to read in its entirety as follows:

                   Section 6.18 Cash Flow Leverage Ratio. The Borrower will not
          permit the Cash Flow Leverage Ratio at any time to be more than: (i)
          3.50 to 1.00 as of the last day of the Borrower's fiscal quarter
          ending on or about July 31, 2003, (ii) 4.00 to 1.00 as of the last day
          of the Borrower's fiscal quarter ending on or about October 31, 2003,
          (iii) 3.50 to 1.00 as of the last day of the Borrower's fiscal quarter
          ending on or about January 31, 2004, and (iv) 2.50 to 1.00 as of the
          last day of the Borrower's fiscal quarter ending on or about April 30,
          2004 and as of the last day of each of the Borrower's fiscal quarters
          ending thereafter.

                   2.12 NEW FORM OF REVOLVING NOTE. Exhibit B to the Credit
          Agreement is hereby amended to read as set forth on Exhibit A attached
          to this Amendment which is made a part of the Credit Agreement as
          Exhibit B thereto.

                   2.13 COMMITMENT SCHEDULE. Schedule 1.1B to the Credit
          Agreement is hereby amended to read as set forth on Exhibit B attached
          to this Amendment which is made a part of the Credit Agreement as
          Schedule 1.1B thereto.

                   SECTION 3. EFFECTIVENESS OF AMENDMENTS. The amendments
          contained in this Amendment shall become effective upon delivery by
          the Borrower of, and compliance by the Borrower with, the following:

                   3.1 This Amendment, duly executed by the Borrower.

                   3.2 Revolving Notes, in the form of Exhibit A attached to
          this Amendment, drawn to the order of each Bank in the amount of the
          highest Revolving Commitment Amount of such Bank and duly executed by
          the Borrower.

                   3.3 A Reaffirmation of Security Documents in the form of
          prescribed by the Agent, duly executed by each Guarantor.

                   3.4 Reaffirmation of Fleet Subordination and Standstill
          Agreement in the form prescribed by the Agent, duly executed by Fleet
          Business Credit.

                   3.5 The unpaid principal balance of the Term Loan shall be
          not greater than $3,000,000.

                   3.6 A copy of the resolutions of the Board of Directors of
          the Borrower and each Guarantor authorizing the execution, delivery
          and performance of this Amendment certified as true and accurate by
          its Secretary or Assistant Secretary, along with a certification by
          such Secretary or Assistant Secretary (i) certifying that there has
          been no amendment to the Articles of Incorporation or Bylaws of the
          Borrower or such Guarantor since true and accurate copies of the same
          were delivered to the Agent with a certificate

                                      -5-
<PAGE>

          of the Secretary of the Borrower or such Guarantor dated July 12,
          2002, and (ii) identifying each officer of the Borrower or such
          Guarantor authorized to execute this Amendment and any other
          instrument or agreement executed by the Borrower or such Guarantor in
          connection with this Amendment (collectively, the "Amendment
          Documents"), and certifying as to specimens of such officer's
          signature and such officer's incumbency in such offices as such
          officer holds.

                   3.7 Good standing certificates for the Borrower and each
          Guarantor in its jurisdiction of incorporation.

                   3.8 The Borrower shall have paid to the Agent for the ratable
          benefit of the Banks a non-refundable amendment fee of $60,000.

                   3.9 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 Banks and the Agent through the date of
          this Amendment in connection with the Credit Agreement and the
          Amendment Documents.

Upon the effectiveness of this Amendment, the Borrower hereby requests that each
Bank, and each Bank shall, make an additional Revolving Loan in an amount
sufficient to repay the unpaid balance of the Term Loans of such Bank
outstanding on such date. The Borrower acknowledges that (a) the repayment of
the Term Loans made pursuant to this Amendment may not be reborrowed and (b) the
Term Loans have been completely advanced by the Banks and the Borrower has no
right to request, and the Banks have no commitment to make, any additional Term
Loans.

                   SECTION 4. DEFAULTS AND WAIVERS.

                   4.1 EVENTS OF DEFAULT AND UNMATURED EVENTS OF DEFAULT. Under
          Section 6.16 of the Credit Agreement, the Borrower agreed not to
          permit EBT, calculated on a cumulative basis for the two preceding
          fiscal quarters, to be less than $0.00 as of the last day of any
          fiscal quarter (commencing with the last day of the fiscal quarter
          ending on or about October 31, 2002). The Borrower has advised the
          Agent that its EBT, as of April 30, 2003 was, and as of July 31, 2003
          will be, less than $0.00, in each case calculated on a cumulative
          basis for the two preceding fiscal quarters.

                   4.2 WAIVER. Upon the date on which this Amendment becomes
          effective, each Bank hereby waives the Borrower's Defaults and Events
          of Default described in the preceding Section 4.1 (the "Existing
          Defaults"). The waiver of the Existing Defaults set forth above is
          limited to the express terms thereof, and nothing herein shall be
          deemed a waiver by the Banks of any other term, condition,
          representation or covenant applicable to the Borrower under the Credit
          Agreement (including but not limited to any future occurrence similar
          to the Existing Defaults) or any of the other agreements, documents or
          instruments executed and delivered in connection therewith, or of the
          covenants described therein. The waivers set forth herein shall not
          constitute a waiver by the Banks of any other Default or Event of
          Default, if any, under the Credit Agreement, and shall not be, and
          shall not be deemed to be, a course of action with respect thereto
          upon which

                                      -6-
<PAGE>

          the Borrower may rely in the future, and the Borrower hereby expressly
          waives any claim to such effect.

                   SECTION 5. REPRESENTATIONS, WARRANTIES, AUTHORITY, NO ADVERSE
          CLAIM.

                   5.1 REASSERTION OF REPRESENTATIONS AND WARRANTIES, NO
          DEFAULT. The Borrower hereby represents that on and as of the date
          hereof and after giving effect to this Amendment (a) all of the
          representations and warranties contained in the Credit Agreement are
          true, correct and complete in all respects as of the date hereof as
          though made on and as of such date, except for changes permitted by
          the terms of the Credit Agreement, and (b) there will exist no Event
          of Default under the Credit Agreement as amended by this Amendment on
          such date which has not been waived by the Banks.

                   5.2 AUTHORITY, NO CONFLICT, NO CONSENT REQUIRED. The Borrower
          represents and warrants that the Borrower has the power and legal
          right and authority to enter into the Amendment Documents and has duly
          authorized as appropriate the execution and delivery of the Amendment
          Documents and other agreements and documents executed and delivered by
          the Borrower in connection herewith or therewith by proper corporate
          action, and none of the Amendment Documents nor the agreements
          contained herein or therein contravenes or constitutes a default under
          any agreement, instrument or indenture to which the Borrower is a
          party or a signatory or a provision of the Borrower's Articles of
          Incorporation, Bylaws or any other agreement or requirement of law, or
          result in the imposition of any Lien on any of its property under any
          agreement binding on or applicable to the Borrower or any of its
          property except, if any, in favor of the Banks and the Agent. The
          Borrower represents and warrants that no consent, approval or
          authorization of or registration or declaration with any Person,
          including but not limited to any governmental authority, is required
          in connection with the execution and delivery by the Borrower of the
          Amendment Documents or other agreements and documents executed and
          delivered by the Borrower in connection therewith or the performance
          of obligations of the Borrower therein described, except for those
          which the Borrower has obtained or provided and as to which the
          Borrower has delivered certified copies of documents evidencing each
          such action to the Agent

                   5.3 NO ADVERSE CLAIM. The Borrower warrants, acknowledges and
          agrees that no events have taken place and no circumstances exist at
          the date hereof which would give the Borrower a basis to assert a
          defense, offset or counterclaim to any claim of the Banks or the Agent
          with respect to the Obligations.

                   SECTION 6. AFFIRMATION OF CREDIT AGREEMENT, FURTHER
          REFERENCES, AFFIRMATION OF SECURITY INTEREST. The Banks, the Agent 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
          Banks and the Agent that the Obligations are and continue to be
          secured by the security interest granted by the Borrower in favor of
          the Agent and the Banks under the Security Documents to which it is a

                                      -7-
<PAGE>

party, 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 documents and agreements entered into
with respect to the obligations under the Credit Agreement are incorporated
herein by reference and are hereby ratified and affirmed in all respects by the
Borrower.

          SECTION 7. MERGER AND INTEGRATION, SUPERSEDING EFFECT. This Amendment,
from and after the date hereof, embodies the entire agreement and understanding
between the parties hereto and supersedes and has merged into this Amendment all
prior oral and written agreements on the same subjects by and between the
parties hereto with the effect that this Amendment, shall control with respect
to the specific subjects hereof and thereof.

          SECTION 8. SEVERABILITY. Whenever possible, each provision of this
Amendment and the other Amendment Documents and any other statement, instrument
or transaction contemplated hereby or thereby or relating hereto or thereto
shall be interpreted in such manner as to be effective, valid and enforceable
under the applicable law of any jurisdiction, but, if any provision of this
Amendment, the other Amendment Documents or any other statement, instrument or
transaction contemplated hereby or thereby or relating hereto or thereto shall
be held to be prohibited, invalid or unenforceable under the applicable law,
such provision shall be ineffective in such jurisdiction only to the extent of
such prohibition, invalidity or unenforceability, without invalidating or
rendering unenforceable the remainder of such provision or the remaining
provisions of this Amendment, the other Amendment Documents or any other
statement, instrument or transaction contemplated hereby or thereby or relating
hereto or thereto in such jurisdiction, or affecting the effectiveness, validity
or enforceability of such provision in any other jurisdiction.

          SECTION 9. SUCCESSORS. The Amendment Documents shall be binding upon
the Borrower, the Agent and the Banks the Lender and their respective successors
and assigns, and shall inure to the benefit of the Borrower and the Lender and
the successors and assigns of the Lender.

          SECTION 10. LEGAL EXPENSES. As provided in Section 9.2 of the Credit
Agreement, the Borrower agrees to reimburse the Agent, 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) 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.

          SECTION 11. HEADINGS. The headings of various sections of this
Amendment have been inserted for reference only and shall not be deemed to be a
part of this Amendment.

                                      -8-
<PAGE>

          SECTION 12. COUNTERPARTS. The Amendment Documents may be executed in
several counterparts as deemed necessary or convenient, each of which, when so
executed, shall be deemed an original, provided that all such counterparts shall
be regarded as one and the same document, and either party to the Amendment
Documents may execute any such agreement by executing a counterpart of such
agreement.

          SECTION 13. GOVERNING LAW. THE AMENDMENT DOCUMENTS SHALL BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO
CONFLICT OF LAW PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE
TO NATIONAL BANKS, THEIR HOLDING COMPANIES AND THEIR AFFILIATES.

          SECTION 14. 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.

<PAGE>

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

                                      NORSTAN, INC.

                                      By:    /s/ Robert J. Vold
                                            ------------------------------------
                                      Title: Vice President and Controller
                                            ------------------------------------

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

                                      By:    /s/ Daniel J. Falstad
                                            ------------------------------------

                                      Title: Vice President
                                            ------------------------------------

                                      M & I MARSHALL & ILSLEY BANK

                                      By:    /s/ John Howard Jr.
                                            ------------------------------------

                                      Title: Senior Vice President
                                            ------------------------------------

                                      By:    /s/ Dean E. Davidson
                                            ------------------------------------

                                      Title: Vice President
                                            ------------------------------------

                                      S-1
<PAGE>

                                                                    EXHIBIT A TO
                                                              FIRST AMENDMENT TO
                                                              SECOND AMENDED AND
                                                       RESTATED CREDIT AGREEMENT

                       AMENDED AND RESTATED REVOLVING NOTE

$_____________                                               July 15, 2003
                                                          Minneapolis, Minnesota

         FOR VALUE RECEIVED, NORSTAN, INC., a Minnesota corporation, hereby
promises to pay to the order of _______________________________ (the "Bank") at
the main office of U. S. Bank National Association in Minneapolis, Minnesota, in
lawful money of the United States of America in Immediately Available Funds (as
such term and each other capitalized term used herein are defined in the Credit
Agreement hereinafter referred to) on the Termination Date the principal amount
of _________________________________ ($_____________), or, if less, the
aggregate unpaid principal amount of the Revolving Loans made by the Bank under
the Credit Agreement, and to pay interest (computed on the basis of actual days
elapsed and a year of 360 days) in like funds on the unpaid principal amount
hereof from time to time outstanding at the rates and times set forth in the
Credit Agreement.

         This note is one of the Revolving Notes referred to in the Amended and
Restated Credit Agreement dated concurrently herewith (as the same may hereafter
be from time to time amended, restated or otherwise modified, the "Credit
Agreement") among the undersigned, the Bank, the other banks named therein and
U.S. Bank National Association, as agent. This Note, together with the other
Revolving Notes, amends and restates, but does not constitute payment upon or a
novation of, the prior Revolving Note given by the undersigned in favor of the
Bank under the Credit Agreement. This note is secured, it is subject to certain
mandatory prepayments, and its maturity is subject to acceleration, in each case
upon the terms provided in said Credit Agreement.

         In the event of default hereunder, the undersigned agrees to pay all
costs and expenses of collection, including reasonable attorneys' fees. The
undersigned waives demand, presentment, notice of nonpayment, protest, notice of
protest and notice of dishonor.

         THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS NOTE SHALL BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF
THE UNITED STATES APPLICABLE TO NATIONAL BANKS.

                                          NORSTAN, INC.

                                          By:
                                                --------------------------------
                                          Title:
                                                --------------------------------

                                      A-1
<PAGE>

                                                                    EXHIBIT B TO
                                                              FIRST AMENDMENT TO
                                    SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                  SCHEDULE 1.1B

                               LENDING COMMITMENTS

<Table>
<Caption>
------------------------------          ----------------          -----------------------
                                        Revolving                 Revolving
                                        Commitment                Commitment
                                        Amount until              Amount from January 31,
Bank                                    January 31, 2004          2004 and thereafter
------------------------------          ----------------          -----------------------
<S>                                     <C>                       <C>
U.S. Bank National Association             $16,000,000                 $15,000,000

M&I Marshall & Ilsley Bank                 $ 8,000,000                 $ 7,500,000

Totals                                     $24,000,000                 $22,500,000
                                           ===========                 ===========
</Table>

                                      B-1<PAGE>

                                                                     Exhibit 4.7

                                  TEXTRON INC.
                         4 1/2% NOTE DUE AUGUST 1, 2010

                               (FACE OF SECURITY)

       This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a
nominee of a Depositary. This Global Security is exchangeable for securities
registered in the name of a Person other than the Depositary or its nominee only
in the limited circumstances described in the Indenture and no transfer of this
Security (other than a transfer of this Security as a whole by the Depositary to
a nominee of the Depositary or by a nominee of the Depository to the Depository
or another nominee of the Depository) may be registered except in such limited
circumstances. Every Security delivered upon registration of transfer of, in
exchange for, or in lieu of, this Global Security shall be a Global Security
subject to the foregoing, except in the limited circumstances described above.

       Unless this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation, to the Issuer or its agent
for registration of transfer, exchange or payment and any certificate issued is
registered in the name of Cede & Co. or such other name as is requested by an
authorized representative of The Depository Trust Company (and any payment is to
be made to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

                      EXCEPT AS OTHERWISE PROVIDED HEREIN,
              THIS GLOBAL SECURITY MAY BE TRANSFERRED, IN WHOLE BUT
             NOT IN PART, ONLY TO ANOTHER NOMINEE OF THE DEPOSITORY
                  OR TO A SUCCESSOR DEPOSITORY OR TO A NOMINEE
                          OF SUCH SUCCESSOR DEPOSITORY

NO.                             CUSIP: 883203BJ9                $_______________

                                  TEXTRON INC.
                         4 1/2% NOTE DUE AUGUST 1, 2010

       TEXTRON INC., a corporation duly organized and existing under the laws of
the State of Delaware (herein called "Textron," which term includes any
successor corporation under the Indenture hereinafter referred to), for value
received, hereby promises to pay Cede & Co., as nominee for the Depository, or
registered assigns, the principal sum of _____________ dollars ($____________)
on August 1, 2010, and to pay interest thereon, accruing from July 25, 2003 or
the most recent date in respect of which interest has been paid or duly provided
for at the rate of 4 1/2% per annum until the principal hereof is paid or duly
provided for, semiannually in arrears on February 1 and August 1 in each year
(each an "Interest Payment Date") commencing February 1, 2004; provided,
however, that if an Interest Payment Date should fall on a day that is not a
Business Day, such Interest Payment

<PAGE>

Date shall be the following day that is a Business Day. The interest so payable
and punctually paid or duly provided for on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Global
Security (or one or more Predecessor Securities (as defined in the Indenture))
is registered at the close of business on January 15 or July 15 (whether or not
a Business Day) next preceding such Interest Payment Date (a "Regular Record
Date") and interest payable at maturity will be payable to the Person to whom
principal shall be payable. Any such interest which is payable, but is not
punctually paid or duly provided for on any Interest Payment Date shall
forthwith cease to be payable to the Holder hereof on the relevant Regular
Record Date or the Person in whose name this Global Security was originally
registered, as the case may be, and may be paid to the Person in whose name this
Global Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such defaulted
interest to be fixed by Textron or may be paid at any time in any other lawful
manner.

       As used herein, the term "Depository" shall mean The Depository Trust
Company, New York, New York, another clearing agency or any successor registered
under the Securities Exchange Act of 1934, as amended, or other applicable
statute or regulation, which in each case, shall be designated by Textron
pursuant to the Indenture.

       Payment of the principal and premium and interest on this Global Security
will be made at the principal corporate office or agency of the Trustee in the
Borough of Manhattan, The City of New York, New York in such coin or currency of
the United States of America as at the time of payment is legal tender for the
payment of public and private debts; provided that, at the option of Textron,
payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register.

       Unless the certificate of authentication hereon has been executed by the
Trustee, directly or through an Authenticating Agent by manual signature of an
authorized officer, this Security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

                           [Signature Page to Follow]

<PAGE>

       IN WITNESS WHEREOF, Textron Inc. has caused this instrument to be duly
executed under its corporate seal.

  Dated: July __, 2003                    TEXTRON, INC.

                                          By:
                                              ----------------------------------
                                              Vice President and Treasurer

                                          By:
                                              ----------------------------------
                                              Assistant Secretary

                        Signature Page to Global Security

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

       This is a Global Security of the series designated therein referred to in
the within-mentioned Indenture.

THE BANK OF NEW YORK,
As Trustee

By:
    --------------------------------
    Authorized Signatory

Dated: July __, 2003

<PAGE>

                              (REVERSE OF SECURITY)

                                  TEXTRON INC.
                         4 1/2% NOTE DUE AUGUST 1, 2010

              This Security is a Global Security evidencing a security of the
duly authorized series of securities of Textron designated as its 4 1/2% Notes
due August 1, 2010 (the securities of such series are herein called the
"Securities"), issued under an Indenture, dated as of September 10, 1999 (herein
called the "Indenture"), between Textron and The Bank of New York, as trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture). The terms of this Security include those stated in, or made
pursuant to, the Indenture. The Securities are subject to all such terms, and
reference is made to the Indenture, all indentures supplemental thereto and all
written instruments of Textron establishing such terms for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
Textron, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered.

              This Global Security is not subject to a mandatory or optional
sinking fund requirement.

              The Securities shall be redeemable, at the option of Textron, in
whole or in part on any date prior to Maturity (the "Redemption Date") at the
Redemption Price (as defined herein), plus accrued and unpaid interest on such
Securities up to, but not including, the Redemption Date. For all purposes
hereof:

       "Adjusted Treasury Rate" means, with respect to the redemption of
       Securities on a Redemption Date, the annual rate equal to the semi-annual
       equivalent yield to maturity of the Comparable Treasury Issue, assuming a
       price for the Comparable Treasury Issue (expressed as a percentage of its
       principal amount) equal to the Comparable Treasury Price for such
       Redemption Date.

       "Comparable Treasury Issue" means, with respect to the redemption of
       Securities on a Redemption Date, the United States Treasury security
       selected by the Quotation Agent as having a maturity comparable to the
       remaining term of the Securities to be redeemed that would be used, at
       the time of selection and in accordance with customary financial
       practice, in pricing new issues of corporate debt securities of
       comparable maturity to the remaining term of such Securities.

       "Comparable Treasury Price" means, with respect to the redemption of
       Securities on a Redemption Date:

              (a)    the average of the Reference Treasury Dealer Quotations for
       such redemption date, after excluding the highest and lowest such
       Reference Treasury Dealer Quotations or

              (b)    if the Trustee obtains fewer than three such Reference
       Treasury Dealer Quotations, the average of all such Reference Treasury
       Dealer Quotations.

<PAGE>

       "Primary Treasury Dealer" means a primary U.S. Government securities
       dealer in New York City.

       "Quotation Agent" means the Reference Treasury Dealer appointed by
       Textron.

       "Redemption Price" means the greater of: (a) 100% of the principal amount
       of Securities to be redeemed and (b) as determined by the Quotation
       Agent, the sum of the present values of the remaining scheduled payments
       of principal on such Securities and interest on such Securities that
       would be due after the Redemption Date but for such redemption (not
       including any portion of such interest payments accrued as of the
       Redemption Date) discounted to the Redemption Date on a semi-annual basis
       (assuming a 360-day year consisting of twelve 30-day months) at the
       Adjusted Treasury Rate plus 20 basis points.

       "Reference Treasury Dealer" means each of (a) J.P. Morgan Securities
       Inc., UBS Securities LLC and their successors; provided, however, that if
       any of the foregoing ceases to be a Primary Treasury Dealer, Textron
       shall substitute another Primary Treasury Dealer and (b) any other
       Primary Treasury Dealers selected by Textron.

       "Reference Treasury Dealer Quotations" means, with respect to each
       Reference Treasury Dealer and the redemption of Securities on a
       Redemption Date, the average, as determined by Textron, of the bid and
       asked prices for the Comparable Treasury Issue (expressed in each case as
       a percentage of its principal amount) which such Reference Treasury
       Dealer quotes in writing to the Trustee at 5:00 p.m., New York City time,
       on the third business day before such Redemption Date.

              The notice of redemption of the Securities may summarize the
method by which the Redemption Price will be determined rather than state the
actual dollar amount.

              If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.

              The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of Textron and the rights of the Holders of the Securities of each
series to be affected under the Indenture at any time by Textron and the Trustee
with the consent of the Holders of a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of a majority in principal
amount of the Securities of each series at the time Outstanding, on behalf of
the Holders of all Securities of such series, to waive compliance by Textron
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Global Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Global Security and of any Security issued upon the
registration of transfer hereof or in exchange hereof or in lieu

<PAGE>

hereof, whether or not notation of such consent or waiver is made upon this
Global Security.

              Without the consent of the Holder of any Securities, Textron and
the Trustee may enter into one or more indentures supplemental to the Indenture
to evidence the succession of another corporation to Textron and the assumption
by such successor of the covenants of Textron in the Indenture or this Global
Security, to add to the covenants of Textron for the benefit of the Holders of
all or any series of Securities, to add additional Events of Default, to cure
any ambiguity, to correct any defect or inconsistency or to make any other
provisions with respect to matters or questions arising under the Indenture
which shall not adversely affect the interests of the Holders of Securities of
any series in any material respect or for the other purposes set forth in the
Indenture.

              As provided in the Indenture and subject to certain limitations
therein set forth and herein provided, the transfer of this Global Security is
registrable in the Security Register, upon surrender of this Global Security for
registration of transfer at the office or agency of Textron in any place where
the principal of, premium, if any, and interest on this Global Security are
payable, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to Textron and the Security Registrar duly executed by the
Holder hereof or his attorney duly authorized in writing, and thereupon a new
Global Security evidencing the Securities evidenced hereby, or like tenor and
for the same aggregate principal amount, will be issued to the designated
transfer or transferees; provided, however, that for so long as any Securities
are evidenced by this Global Security, this Global Security may be transferred
in whole but not in part, only to another nominee of the Depository or to a
successor Depository selected or approved by Textron or to a nominee of such
successor Depository.

              There is no limit on the aggregate principal amount of Securities
of this series that may be issued by Textron. Without notice to or consent of
any Holder of any Securities of this series, Textron may, from time to time and
at any time, issue and sell additional Securities of this series with the same
title and terms as this Security, except for the payment of interest accruing
prior to the issue date of such additional Securities or except for the first
payment of interest following the issue date of such additional Securities.

              The Securities of this series are issuable only in denominations
of $1,000 or any amount in excess thereof which is an integral multiple of
$1,000 unless otherwise specified above. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
of a different authorized denomination, as requested by the Holder surrendering
the same.

              No service charge shall be made for any such registration of
transfer or exchange of Securities, but Textron may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith.

<PAGE>

              Prior to due presentment of this Global Security for registration
of transfer, Textron, the Trustee and any agent of Textron or the Trustee may
treat the Person in whose name this Global Security is registered as the owner
hereof for all purposes, whether or not this Global Security is overdue, and
neither Textron, the Trustee nor any such agent shall be affected by notice to
the contrary.

              If at any time the Depository notifies Textron that it is
unwilling or unable to continue as Depository for the Securities evidenced
hereby or if at any time the Depository shall no longer be registered or in good
standing under the Securities Exchange Act of 1934, as amended, or other
applicable statute or regulation and a successor Depository is not appointed by
Textron within 90 days after Textron receives such notice or becomes aware of
such condition, as the case may be, Textron will execute, and the Trustee will
authenticate and deliver, Securities in definitive registered form without
coupons, in denomination of $1,000 or any amount in excess thereof which is an
integral multiple of $1,000 (such denominations referred to herein as
"authorized denominations"), of like tenor and in an aggregate principal amount
equal to the principal amount of this Global Security in exchange for this
Global Security. In addition, Textron may at any time determine that the
Securities evidenced hereby shall no longer be represented by a Global Security.
In such event Textron will execute, and the Trustee, upon receipt of an
Officers' Certificate evidencing such determination by Textron, will
authenticate and deliver Securities in definitive registered form without
coupons, in authorized denominations, and of like tenor and in an aggregate
principal amount equal to the principal amount of this Global Security in
exchange for this Global Security. Upon the exchange of this Global Security for
such Securities in definitive registered form, without coupons, in authorized
denominations, this Global Security shall be cancelled by the Trustee.
Securities in definitive registered form issued in exchange for this Global
Security shall be registered in such names and in such authorized denominations
as the Depository, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall deliver
such Securities to the Persons in whose names such Securities are so registered.

              All terms used in this Global Security that are defined in the
Indenture and not herein otherwise defined shall have the meanings assigned to
them in the Indenture.

<PAGE>

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

__________________________________
(Please insert social security,
tax identification number or other
identifying number of assignee)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

(Please print or type name and address, including postal zip code of assignee)

the within Global Security and all rights thereunder, hereby irrevocably

constituting and appointing ____________________________________________________

attorney to transfer said Global Security on the books of Textron, with full

power of substitution in the premises.

Dated:__________________________________________________________________________

Signature:______________________________________________________________________

Signature guarantee:____________________________________________________________

              NOTE: The signature to this assignment must correspond exactly
with the name as written upon the face of the within Global Security in every
particular without alteration or enlargement or any change whatsoever and must
be guaranteed by a commercial bank or trust company having its principal office
or correspondent in The City of New York or by a member of the New York Stock
Exchange.

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