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                                                                 EXHIBIT 10.30

                      VERIZON INFORMATION TECHNOLOGIES INC.
                                       AND
                      TSI TELECOMMUNICATION SERVICES, INC.

                    DISTRIBUTED PROCESSING SERVICES AGREEMENT

This Distributed Processing Services Agreement ("Agreement") is made as of
February 14, 2002 ("Effective Date"), between VERIZON INFORMATION TECHNOLOGIES
INC. ("VITI"), with offices at One East Telecom Parkway, Post Office Box 290152,
Temple Terrace, Florida 33687, and TSI TELECOMMUNICATION SERVICES, INC. ("TSI"
or "Customer"), with offices at 201 North Franklin Street, Suite 700, Tampa,
Florida 33602.

In consideration of the terms and conditions and mutual obligations contained in
this Agreement, the parties agree as follows:

1.     CONSTRUCTION

1.1    References to an "Article," "Section," or "Subsection" shall be
       references to the articles, sections and subsections of the Agreement,
       unless otherwise specifically stated.

1.2    The Article and Section headings in the Agreement are intended to be for
       reference purposes only and shall in no way be construed to modify or
       restrict any of the terms or provisions of the Agreement.

1.3    The word "include," "includes," and "including" shall mean "include,
       without limitation," "includes, without limitation," and "including,
       without limitation," respectively.

2.     DEFINITIONS

2.1    "Affiliate" means, with respect to any entity, any other entity
       controlling, controlled by or under common control with such entity. For
       purposes of this definition, the term "control," including its
       derivatives, means the possession directly or indirectly of the power to
       direct or cause the direction of the management and policies of an
       entity, whether through the ownership of voting securities, by trust,
       management agreement, contract or otherwise.

2.2    "Agreement" means this Agreement and the Exhibits and Attachments
       attached to this Agreement, which Exhibits and Attachments are hereby
       incorporated by this reference into this Agreement.

2.3    "Expenses" has the meaning set forth in Section 11.3.

2.4    "Fees" has the meaning set forth in Section 11.1.

2.5    "Force Majeure" shall mean terrorism; acts of God and the public enemy;
       the elements; fire; accidents; vandalism; sabotage; external power
       failure; failure, delay or disruption of

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       transportation facilities; strikes, lockouts or any other industrial,
       civil or public disturbances; any laws, orders, rules, regulations, acts
       or restraints of any government or governmental body or authority, civil
       or military, including the orders and judgments of courts; and any other
       cause of any kind whatsoever not reasonably within the control of a party
       hereto.

2.6    "Hardware" means the central processing unit and peripheral equipment
       installed in a VITI facility and utilized by VITI to provide the
       Services, including, the telecommunications equipment at the demarcation
       point at VITI's facility. The term Hardware does not include terminals,
       controllers, or telecommunications equipment at the TSI site(s), or the
       actual circuits, required to enable TSI to utilize VITI's service bureau
       services, which terminals, controllers, telecommunications equipment and
       circuits are TSI's responsibility.

2.7    "Initial Distributed Processing Environment" consists of the Hardware
       acquired on or before November 30, 2001 and set forth in Exhibit C.

2.8    "Intellectual Property Rights" means any and all intangible rights
       existing from time to time under the law of any jurisdiction, including
       patent law, copyright law, trade secret law, unfair competition law,
       trademark law or other similar laws or principles.

2.9    "Maintenance Fees" has the meaning set forth in Exhibit B.

2.10   "Monthly Labor Fees" has the meaning set forth in Exhibit B.

2.11   "Services" has the meaning set forth in Section 3.1.

2.12   "Software" means any software used by VITI to provide Services.

2.13   "TSI Proprietary Data" means any and all technical and non-technical,
       non-public information owned by TSI that is used in or required for use
       in the business of TSI, including financial, marketing and business data,
       information and reports, pricing and cost information, correspondence and
       notes.

2.14   "TSI Software" means TSI-developed application software and TSI system
       monitoring software.

2.15   "TSI Third Party Software" means TSI-provided third party software.

2.16   "Verizon Enterprise License" means the agreements between Verizon and/or
       its affiliates and any third party to provide the VITI Third Party
       Software to Verizon and/or its affiliates.

2.17   "VITI Software" means VITI-owned Software

2.18   "VITI Third Party Software" means VITI-provided third party Software.

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3.     SERVICES

3.1    SERVICE BUREAU AND HELP DESK SERVICES. VITI shall provide the distributed
       processing and help desk services as described in Exhibit A
       (collectively, "Services"). TSI may order additional services by
       executing a supplement to this Agreement that identifies the additional
       services to be provided. There is no obligation to provide such
       additional services or to make payment for additional services unless and
       until a supplement has been duly executed by both parties in accordance
       with this Agreement.

3.2    NTN CIRCUITS. For a period not to exceed sixty (60) days from the
       Effective Date, VITI shall provide the six (6) circuits TSI is currently
       receiving from NTN on a pass-through cost basis.

3.3    SAP, AP AND INTRANET APPLICATIONS ACCESS. For a period of sixty (60) days
       from the Effective Date, VITI will continue to provide TSI with access to
       the SAP, AP and Intranet applications. During that sixty (60) day period,
       VITI will make commercially reasonable efforts to identify an alternative
       solution to TSI. In the event VITI is unable to identify such an
       alternative solution, or TSI rejects VITI's recommended alternative
       solution, VITI will continue to provide access to TSI until June 1, 2002.
       VITI shall provide such access to TSI on a pass-through cost basis. Any
       costs associated with the implementation of an alternative solution will
       be the responsibility of TSI.

3.4    SERVICE LEVELS. Service level measurements and objectives are set forth
       in the Service Level Agreements (SLAs) between the parties, attached
       hereto as Attachment 1 to Exhibit A. The parties shall negotiate any
       revisions to the SLA(s) for added Hardware or Software within ninety (90)
       days of implementation of such additional Hardware or Software.

4.     NEW HARDWARE AND SOFTWARE

4.1    NEW HARDWARE AND SOFTWARE. To the extent that new Hardware purchased by
       VITI has been added to the Initial Distributed Processing Environment
       between the period November 30, 2001 to the Effective Date, or is added
       to the Initial Distributed Processing Environment during the term of this
       Agreement, VITI will charge TSI for such new Hardware and any required
       fees associated with new VITI Software or VITI Third Party Software, and
       any supplemental maintenance fees (on a pass-through basis) for such
       Hardware and Software, together with VITI's labor charges for
       implementation of such Hardware and Software into the Initial Distributed
       Processing Environment and all such Hardware shall be subject to the
       terms of Section 10.5.8. Hardware purchased or leased by TSI which has
       been added to the processing environment between the period November 30,
       2001, and the effective date of this Agreement, or is added to the
       processing environment during the term of this Agreement, will be subject
       to the terms of Section 10.5.8, and VITI will charge TSI for any required
       associated software fees, and supplemental maintenance fees (on a
       pass-through basis) for such Hardware and Software, together with VITI's
       labor charges for implementation of the Hardware and/or Software into the
       processing environment. TSI shall initiate all requests to VITI for
       additional hardware, software and services using the change request
       process set forth in Section 8.1 of Exhibit A, the Statement of Work
       ("SOW") hereto.

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5.     USE OF SOFTWARE

5.1    TSI SOFTWARE AND TSI THIRD PARTY SOFTWARE. VITI may use the Hardware to
       operate and run TSI Software and TSI Third Party Software; provided,
       however, that TSI shall obtain all licenses and maintenance services
       necessary for use of TSI Third Party Software by VITI and pay all costs
       related to obtaining required consents needed by VITI to use TSI Third
       Party Software for TSI's benefit. TSI shall be solely responsible for all
       license, maintenance, and other fees due and payable for any TSI Third
       Party Software. VITI shall make any TSI Software and TSI Third Party
       Software available only to TSI.

5.2    VITI SOFTWARE AND VITI THIRD PARTY SOFTWARE. VITI may use the Hardware to
       operate and run VITI Software and VITI Third Party Software; provided,
       however, that VITI shall obtain all consents necessary for use of VITI
       Third Party Software and TSI will pay all costs related to obtaining
       required consents needed by VITI to use VITI Third Party Software for
       TSI's benefit. In the event VITI cannot secure such consents to use the
       VITI Third Party Software on behalf of TSI, VITI shall identify such VITI
       Third Party Software and shall obtain on TSI's behalf a separate license,
       and corresponding maintenance. However, TSI shall be solely responsible
       for all license, maintenance and other fees due and payable for such VITI
       Third Party Software.

6.     MAINTENANCE.

6.1    RELEASE LEVELS AND UPDATES. Except as otherwise agreed by the parties,
       any costs to upgrade the TSI Software or the TSI Third Party Software
       shall be the responsibility of TSI. Any costs to upgrade the VITI
       Software or the VITI Third Party Software shall be the responsibility of
       VITI.

7.     REQUIRED CONSENTS.

7.1    If a required consent is not obtained, then, unless and until such
       required consent is obtained, VITI shall work with TSI to determine and
       adopt such alternative approaches as are necessary and sufficient to
       provide the Services without such required consents.

8.     COMPUTING FACILITY AND RESOURCE UTILIZATION

8.1    USER LOGON IDENTIFICATION ASSIGNMENT. If necessary to provide the
       Services under this Agreement, VITI will assign Logon Identification
       names(s) ("IDs") in accordance with VITI's User Logon Identification
       Assignment procedures then in effect. VITI shall provide TSI with a
       description of any change to such procedures. TSI shall be responsible
       for the security and control of such assigned IDs and shall restrict the
       use of such assigned IDs to access of TSI's programs and data. TSI shall
       be responsible for any and all usage charges incurred on the IDs assigned
       to it that TSI is aware of or about which TSI should have reasonable
       knowledge. VITI agrees not to disclose TSI's IDs to any third party
       without the advance written consent of TSI. VITI shall have no liability
       for TSI's disclosure of IDs assigned by it to third parties.

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8.2    TSI ACCESS TO VITI NETWORK OR FACILITY. Under no circumstances shall TSI
       personnel access any VITI network or facility for the purpose of
       accessing or attempting to access other internal or external networks,
       facilities, computer systems, partitions, programs, or data that is not
       specific to TSI. TSI further agrees that any capabilities for such access
       shall not be published or made known via any medium (e.g., posting on
       bulletin boards or via electronic mail). In addition, any such use or
       publication, or access to backdoors, data capture routines, games,
       viruses, worms, Trojan horse routines, will be a breach of contract and
       VITI will provide notice thereof to TSI and VITI shall immediately cease
       providing the Services until such breach is cured. TSI shall ensure that
       all TSI personnel accessing VITI's systems are aware of their
       responsibilities and restrictions pertaining to the use of the IDs
       referenced in this Section 8.2.

8.3    FILE SECURITY. VITI will provide security and back-up and recovery
       services as specified in Section 14 to protect TSI's data. VITI reserves
       the right to issue and change security regulations and procedures as
       needed. VITI shall not be required to reconstruct any files, data, or
       programs that may, for any reason, have to be re-entered into the system,
       unless reconstruction is required due to a negligent act or omission on
       the part of VITI.

8.4    SERVICE USAGE CONDITIONS.

       8.4.1  TSI. TSI represents and agrees that it will use the Services in
              compliance with all applicable federal, state, and local laws and
              regulations, and communications common carrier tariffs. VITI
              reserves the right to take all actions, including termination of
              the Services (in whole or in part), that it believes necessary to
              comply with applicable laws, regulations, and tariffs if TSI
              fails to discontinue any improper use of the Services promptly
              after receipt of written notice from VITI as is reasonably
              feasible under the circumstances.

       8.4.2  VITI. VITI represents and agrees that it will provide the
              Services in compliance with all applicable federal, state, and
              local laws and regulations, and communications common carrier
              tariffs. TSI reserves the right to take all actions, including
              termination of the Services (in whole or in part), that it
              believes necessary to comply with applicable laws, regulations,
              and tariffs if VITI fails to discontinue any improper action with
              respect to the Services promptly after receipt of written notice
              from TSI as is reasonably feasible under the circumstances.

9.     CONCEPT/PRODUCT OWNERSHIP

9.1    TSI. Except and to the extent otherwise expressly provided in the
       Intellectual Property Agreement, TSI agrees that concepts, information,
       and materials developed by VITI prior to commencement of and independent
       of work under this Agreement, or owned by a third-party or supplier of
       VITI and furnished to TSI by VITI to enable VITI to perform the Services,
       shall remain the property of VITI or such third-party or supplier.

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9.2    VITI. Except and to the extent otherwise expressly provided in the
       Intellectual Property Agreement, VITI agrees that concepts, information,
       and materials developed by TSI prior to commencement of and independent
       of work under this Agreement, or owned by a third-party or supplier of
       TSI and furnished to VITI by TSI to enable VITI to perform the Services,
       shall remain the property of TSI or such third-party or supplier.

9.3    Except for TSI Proprietary Data, all reports, recommendations, manuals,
       findings, evaluations, forms, models, tools, computer programs, source
       code listings, flow charts, programming documentation, reviews,
       information, data, and written materials developed by VITI in connection
       with the Services provided to TSI pursuant to this Agreement shall be the
       exclusive property of VITI however upon request, VITI shall provide TSI a
       printed copy of the reports recommendations, manuals, findings,
       evaluations, forms, flow charts, information, and data specifically
       related to TSI.

9.4    TSI PROPERTY RIGHTS. TSI retains exclusive ownership rights to all TSI
       Software and information and data files provided to VITI under this
       Agreement. All TSI Proprietary Data, including, records, data files,
       input material reports, and other information received from TSI,
       computed, used or stored pursuant to this Agreement is the exclusive
       property of TSI. VITI shall not possess any interest, title, lien or
       right to any TSI Proprietary Data. Nothing in this Agreement should be
       construed as granting VITI any license to the TSI Proprietary Data or TSI
       Software or conveying any interest or right in any TSI Proprietary Data
       or TSI Software, except to the extent necessary for VITI to perform its
       obligations and Services under this Agreement.

10.    TERM AND TERMINATION

10.1   TERM. This Agreement shall commence on the Effective Date and shall have
       an term of eighteen (18) months ("Term") or until terminated as
       otherwise provided in this Agreement or by operation of law.

10.2   TERMINATION FOR DEFAULT. The occurrence of any of the following shall
       constitute a default, giving the non-defaulting party the right to
       terminate this Agreement for cause, subject to Section 10.5 below:

       10.2.1 NONPAYMENT. In the event TSI shall fail to pay when due any
              undisputed payment or other undisputed amount due hereunder and
              such failure shall continue for a period of thirty (30) days
              after such payment is due, VITI, at its sole option, shall have
              the right to terminate this Agreement for default, provided that
              such termination may be made only following the expiration of a
              fifteen (15) day period during which TSI has failed to cure such
              breach after having been given written notice of such breach. In
              addition, VITI shall have the right, at its sole discretion, to
              stop providing Services to TSI under this Agreement, and VITI
              shall be relieved of any future obligations to perform Services
              under this Agreement. VITI shall retain all amounts previously
              paid

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              by TSI, and TSI shall remain liable for all obligations upon
              termination as provided under Section 10.4 below.

       10.2.2 MATERIAL BREACH. Either party shall fail to perform or observe
              any other material covenant, condition or agreement to be
              performed or observed by it hereunder and such failure shall
              continue for a period of thirty (30) days after receipt of
              written notice.

       10.2.3 BANKRUPTCY/INSOLVENCY. Either party shall commit an act of
              bankruptcy within the meaning of the Federal Bankruptcy Act, or
              bankruptcy, receivership, insolvency, reorganization,
              dissolution, liquidation or other proceedings shall be instituted
              by or against either party or all or any substantial part of its
              property under any federal or state law and such proceeding shall
              not be dismissed within ninety (90) days.

10.3   FORCE MAJEURE. In the event VITI is unable to perform the Services in any
       material respect for more than ten (10) consecutive days, or for more
       than thirty (30) days in any calendar quarter, as a result of a Force
       Majeure, TSI may terminate this Agreement by giving VITI written notice
       of such termination.

10.4   TERMINATION FOR CONVENIENCE BY TSI. In the event TSI wishes to terminate
       this Agreement (or any Services relating to Hardware or Software that TSI
       may want to remove from the processing environment), in whole or in part,
       prior to expiration of the Initial Term, TSI may do so, in whole or in
       part, upon three (3) months' prior written notice to VITI, subject to
       Section 10.5.2 below. Appropriate adjustment to the fees will be made
       with respect to any termination in part.

10.5   OBLIGATIONS UPON TERMINATION

              10.5.1 TERMINATION FOR DEFAULT. In the event of a termination for
              default on the part of TSI (under Section 10.2 above), TSI shall
              remain obligated to pay VITI Fees and Expenses incurred by VITI,
              through the date of termination, plus an additional three (3)
              months' fees based on the average of the previous three months'
              processing fees. In addition, TSI will reimburse VITI for any
              non-refundable payment to a third party for Hardware and/or
              Software maintenance.

              10.5.2 PAYMENT UPON TERMINATION FOR CONVENIENCE. If TSI
              terminates this Agreement for convenience in accordance with
              Section 10.4 TSI will pay for Services rendered by VITI through
              the date of termination. In addition, TSI will reimburse VITI for
              any non-refundable payment to a third party for Hardware and/or
              Software maintenance used by VITI to provides the Services to
              TSI.

              10.5.3 RETURN OF MATERIALS. Upon termination of this Agreement,
              each party shall promptly return to the other party, or at the
              option of the owner, certify

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              the destruction of, all data, programs and materials of the other
              held in connection with the performance of this Agreement. VITI
              shall not be responsible for the retention of TSI Software, VITI
              Third Party Software or TSI Proprietary Data for a period in
              excess of sixty (60) days following the date of such termination.
              Within such period TSI must make arrangements with VITI for the
              transmission of such TSI Software and TSI Proprietary Data to
              TSI's designated data center. TSI will pay for all necessary
              media, processing, and shipping costs. TSI understands and agrees
              that at any time after delivery of the media, or after the
              sixty-first (61st) day following termination, VITI's file purge
              procedures will ultimately erase all storage media, including
              back-up storage media, which contain TSI Software or TSI
              Proprietary Data, and TSI expressly releases VITI from any and
              all liabilities in connection with the erasure or destruction of
              the same that TSI has stored on VITI's computers in excess of
              sixty (60) days following termination. TSI is solely responsible
              for maintaining a procedure for the reconstruction of lost data,
              programs and procedures for purposes of re-entry and back-up of
              TSI's data, except that VITI shall remain liable beyond the
              stated period for information remaining in storage at VITI for
              which TSI has specifically contracted with VITI to store beyond
              termination.

              10.5.4 TRANSFER OF VITI THIRD PARTY SOFTWARE. Upon expiration or
              termination of this Agreement, VITI shall, upon TSI's request, as
              part of the Termination Assistance as set forth in Section 10.5.5
              transfer to TSI any VITI Third Party Software licenses used
              specifically for TSI and not under the Verizon Enterprise
              License, provided that TSI has paid all consent, license and
              maintenance fees. To the extent TSI has not paid such fees, TSI
              will pay VITI such fees prior to the transfer, provided further
              that VITI has the right to make such transfer. With respect to
              such software, VITI will deliver to TSI a copy in the form used
              by VITI in connection with the Services as of the effective date
              of such expiration or termination. Each of VITI and TSI shall
              make commercially reasonable efforts to obtain a license for TSI
              to use or the consents necessary to transfer such software to TSI
              pursuant to this Section 10.5.4.

              10.5.5 TERMINATION ASSISTANCE. Provided that TSI has not been
              terminated for default, and upon written request of TSI,
              commencing upon any written notice of termination of this
              Agreement and continuing through the effective date of
              termination of this Agreement and a reasonable amount of time
              following such effective date of termination, VITI shall provide
              reasonable termination assistance to TSI or to TSI's designees at
              TSI's request to allow TSI to obtain services from a third party
              without interruption or adverse effect, and to facilitate the
              orderly transition of the Services to TSI or TSI's designee
              ("Termination Assistance"). The Termination Assistance shall be
              provided at VITI's professional services hourly rate of $ 125.00
              per hour and includes the transfer of TSI data files (archived
              and current), files, and documentation to TSI or its designee.

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              10.5.6 If TSI is not in default, VITI acknowledges and agrees
              that it shall have an obligation to provide TSI with the
              Termination Assistance in a workmanlike manner.

              10.5.7 Except as expressly stated in this Agreement, TSI
              acknowledges that VITI will provide no Termination Assistance
              except as specifically requested in writing by TSI and agreed to
              in writing by VITI and TSI.

              10.5.8 OPTION TO PURCHASE HARDWARE. Upon expiration or
              termination of this Agreement, TSI shall have the option to
              purchase the Hardware from the Initial Distributed Processing
              Environment as set forth in Exhibit C hereto, in an "as is"
              condition at that time, for the amount of One Dollar ($1.00).
              Upon contract expiration or termination, TSI shall have the
              option to purchase any Hardware added to the Initial Distributed
              Processing environment on or after November 30, 2001 and during
              the term of this Agreement, in an "as is" condition at that time
              for the then book value of such Hardware.

              With respect to Hardware that is purchased by TSI during the term
              of this Agreement, and intended for the processing environment,
              TSI will sell such Hardware to VITI in an "as is" condition for
              One Dollar ($1.00) and, thereafter, upon expiration or
              termination of this Agreement, VITI shall sell such Hardware back
              to TSI for One Dollar ($1.00).

              With respect to Hardware that is leased to TSI during the term of
              this Agreement and intended for the processing environment, TSI
              will obtain the right for VITI to use such Hardware for the term
              of the Agreement and VITI shall return such Hardware to TSI upon
              termination or expiration of this Agreement. To the extent that
              TSI incurs any charges from its vendors for re-certification of
              any of the Hardware purchased from VITI as described in this
              Section 10.8.7, TSI shall be responsible for payment of such
              charges.

11.    FEES AND PAYMENTS

11.1   FEES. TSI shall pay VITI the fees for the Services as described in
       Exhibit B ("Fees").

11.2   TAXES. In addition to the Fees TSI shall pay to VITI an amount equal to
       any excise, use, privilege, gross revenue, or sales tax, or any other tax
       (except income and franchise taxes), assessments, or duties, imposed by
       or under authority of any federal, state, provincial, or local law, and
       to be paid or assessed by VITI with respect to the Services or any
       portion or modification hereof or addendum. Taxes, assessments and duties
       will be separately identified on the invoices to which they apply.

11.3   EXPENSES. In addition to the Fees, TSI shall reimburse VITI for the
       reasonable, verifiable, travel out-of-pocket expenses, incurred by VITI
       that are attributable to VITI's employees providing Services at TSI's
       downtown Tampa location ("Expenses"). VITI shall not provide

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       Services at any location other than the TSI downtown Tampa office.
       Expenses shall be identified separately in VITI invoices for Services.

11.4   INVOICES/PAYMENT: All Fees and Expenses shall be invoiced monthly for
       Services rendered during the previous month and are due thirty (30)
       calendar days after date of invoice. Late payment charges may be imposed
       by VITI at the rate of 1 1/2 % per month (18 % per year). Interest shall
       not be payable by TSI for amounts on invoices that it has disputed in
       good faith provided that the dispute is resolved in TSI's favor and TSI
       pays within thirty (30) calendar days of the resolution of the dispute.
       With respect to disputed invoices, undisputed amounts must be paid within
       thirty (30) calendar days from the date of the invoice. VITI must be
       advised in writing of any amounts disputed by TSI and the basis of the
       dispute within fifteen (15) calendar days from the date of the invoice or
       the entire invoice must be paid. Interest shall be payable from the
       original due date until the payment date for disputed invoices that are
       resolved in VITI's favor.

12.    AUDIT RIGHTS

12.1   AUDIT. Upon at least two weeks' written notice to VITI and during VITI's
       normal business hours, TSI shall have the right to audit and verify
       VITI's operating environment and other areas of service to ensure that
       VITI is maintaining adequate controls and security measures, that VITI's
       usage data in support of the billings to TSI are correct, and that
       reports relating to VITI's performance are accurate. Such audit and
       inspection shall be limited to information that relates to the Services,
       and may include: (i) VITI's practices and procedures; (ii) VITI's
       computer systems; (iii) VITI's controls and security measures and
       procedures; (iv) VITI's disaster recovery and back-up procedures; (v) any
       matter necessary to enable TSI to meet applicable legal or regulatory
       requirements; (vi) VITI's compliance with service levels. TSI may conduct
       such audit and a verification review itself or with the assistance of a
       third party organization (provided that such organization has executed a
       Non-Disclosure Agreement with VITI) at TSI's expense. Such audit shall
       occur only once during the term of this Agreement, unless a regulatory
       agency requires additional audits, during the term of this Agreement.
       VITI will cooperate in this review and will furnish to TSI or TSI's
       designated representatives requested information on a timely basis
       provided that TSI reimburses VITI at the professional services rate of
       $125 per hour for all time expended by VITI.

       12.1.1 ACCESS. In accordance with Section 12.1, VITI shall provide to
              TSI and its Affiliates, their respective auditors (including
              internal audit staff), inspectors, regulators, consultants and
              other representatives as TSI may from time to time designate in
              writing, reasonable access to: (i) VITI's facilities where the
              Services are being performed; (ii) VITI's personnel providing any
              of the Services; and (iii) data and records in the possession of
              VITI relating to any of the Services as set forth above. All such
              persons shall adhere to VITI's customary security and safety
              policies.

       12.1.2 VITI COOPERATION. VITI shall assist TSI's auditors, inspectors,
              regulators and representatives as is reasonably required. VITI
              shall cooperate with TSI or its

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              designees in connection with audit functions and with regard to
              examinations by regulatory authorities.

       12.1.3 ADJUSTMENTS. If any audit pursuant to this Article 12 indicates
              the need for adjustments in TSI's payments for the Services, the
              audit results and recommendations will be used as the basis for
              the negotiation of equitable adjustments. Any adjustments will be
              paid by or credited to the appropriate party within sixty (60)
              days after the parties' agreement as to the adjustments.

12.2   TSI PROPRIETARY DATA AVAILABILITY. Notwithstanding any other provision of
       this Agreement, VITI will make all TSI Proprietary Data (complete and
       unaltered) available to TSI and its authorized agents. Furthermore,
       during the term of this Agreement, VITI will not destroy any TSI
       Proprietary Data (unless otherwise permitted under this Agreement),
       without the prior express written consent of TSI. However, TSI
       understands and agrees that at any time after delivery of the storage
       media, of after the sixty-first (61st) day following termination, VITI's
       file purge procedures will ultimately erase all storage media, including
       back-up storage media, which contain TSI Software or TSI Proprietary
       Data.

12.3   SAFEGUARDING TSI PROPRIETARY DATA. VITI will establish and maintain
       safeguards against the destruction, loss, or alteration of TSI
       Proprietary Data in the possession of VITI that are no less rigorous than
       those maintained by VITI with respect to its own similar data. TSI will,
       at its own expense, have the right to establish backup security for TSI
       Proprietary Data and to keep backup data and data files at a non-Verizon
       location.

13.    GENERAL ADMINISTRATION

13.1   VITI may, upon reasonable notice to TSI and at VITI's expense, designate
       and make changes in rules of operation, teleprocessing protocols,
       accessibility periods, TSI identification procedures, type of terminal
       equipment, type and location of system and service equipment, system
       programming languages, and designation of the particular VITI data center
       serving TSI at any particular address; provided, however, that any such
       proposed change will not substantially impair TSI's ability to obtain
       Services or TSI's cost of receipt of the Services.

14.    BACKUP AND ARCHIVING; DISASTER RECOVERY

14.1   BACKUP AND ARCHIVING. As part of the Services, VITI shall perform: (i)
       periodic backup and archiving; (ii) purging and archiving of data; and
       (iii) general recovery.

14.2   DISASTER RECOVERY. VITI shall provide disaster recovery in accordance
       with the applicable provisions of Exhibit A.

15.    TELECOMMUNICATIONS

15.1   MONITORING AND NETWORK. VITI shall be responsible for monitoring the
       TSI-provided telecommunications network between TSI's location and VITI's
       location, as well as for the purchase and maintenance of the network
       hardware/software at VITI's demarcation point.

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       TSI shall be responsible for the purchase and maintenance of any network
       hardware/software necessary to allow TSI to connect to the network at the
       mutually agreed upon TSI demarcation point.

16.    CONFIDENTIAL AND PROPRIETARY INFORMATION

16.1   DISCLOSURE. Both VITI and TSI acknowledge that certain information that
       each may receive from the other, non-public information concerning the
       business or finances of either party, and any other information the
       disclosure of which might harm or destroy a competitive advantage of the
       disclosing party, may be proprietary to the disclosing party. Neither
       receiving party shall, directly or indirectly, use or disclose any
       information concerning the disclosing party's business methods, customers
       or finances, or any other information that is disclosed to it by the
       other party, whether or not in writing and whether or not designated as
       proprietary, without the prior written permission of the disclosing
       party, unless such use or disclosure is specifically required in the
       course of the performance by the receiving party of its obligations
       hereunder. The parties acknowledge that this Agreement contains
       commercially confidential information that may be considered proprietary
       by either or both parties, and agree to limit distribution of this
       Agreement to those individuals in their respective corporations with a
       need to know the contents of this Agreement. The foregoing
       notwithstanding, nothing contained herein shall prevent either party from
       complying with applicable law, regulation or court order, provided that
       timely written notice is provided to the other party to permit the other
       party to seek to limit any required disclosure or to seek a protective
       order. The obligations of VITI and TSI under this Article 16 shall not
       extend to any information that: (i) becomes publicly available other than
       through the action of the receiving party; (ii) is subsequently
       rightfully furnished to the receiving party by a third party without
       restriction on disclosure; (iii) is furnished by the disclosing party to
       a third party without restriction on disclosure; or (iv) is rightfully
       known by the receiving party at the time of receiving such information;
       provided, however, that nothing herein shall preclude either party from
       disclosing information that is required to be disclosed by valid order of
       a court or other governmental body or otherwise required by law, to the
       extent that such disclosure is so required provided the receiving party
       gives prompt written notice to the disclosing party in order for the
       disclosing party to obtain a protective order or similar relief.

16.2   BREACH. VITI and TSI both acknowledge that any breach by them of their
       respective obligations under this Article 16 will cause irreparable harm
       to the other party for which its remedies at law will be inadequate and
       that in the event of any such breach the harmed party shall be entitled
       to equitable relief (including without limitation injunctive relief and
       specific performance) in addition to other remedies provided hereunder or
       available at law.

17.    REPRESENTATIONS AND WARRANTIES

17.1   VITI

       17.1.1 AUTHORIZATION. VITI represents and warrants to TSI: (i) that this
              Agreement has been validly executed and delivered by VITI and
              that the provisions set forth in this Agreement constitute legal,
              valid, and binding obligations of VITI

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              enforceable against VITI in accordance with their terms, subject
              to bankruptcy, insolvency, reorganization and other laws
              affecting creditor's rights generally, and with regard to
              equitable remedies, to the discretion of the court before which
              proceedings to obtain such remedies may be pending; (ii) that
              VITI has all requisite corporate power and authority to enter
              into this Agreement, and to carry out the transactions
              contemplated by this Agreement, and that the execution, delivery,
              and performance of this Agreement and the consummation of the
              transactions contemplated by this Agreement have been duly
              authorized by all requisite corporate action on the part of VITI;
              and (iii) that VITI's execution and delivery of this Agreement
              and VITI's performance or compliance with the terms of this
              Agreement will not conflict with, result in a breach of,
              constitute a default under, or require the consent of any third
              party under any license, sublicense, lease, contract, agreement
              or instrument to which VITI is bound or by which its properties
              are subject.

       17.1.2 NON-INFRINGEMENT. VITI represents and warrants to TSI that the
              Hardware, the VITI Software, and the VITI materials provided
              under Section 9.1 do not infringe, or constitute an infringement
              or misappropriation of, any Intellectual Property Rights of any
              third party.

       17.1.3 COMPLIANCE WITH LAWS. VITI represents and warrants to TSI that
              VITI shall perform the Services in a manner that complies with
              all laws applicable to VITI. TSI will coordinate with and provide
              information to VITI as may be reasonably requested by VITI to
              enable VITI to comply with all applicable laws. If VITI is
              charged with a violation of or non-compliance with any such laws,
              VITI shall promptly notify TSI of such charges in writing and
              will use VITI's reasonable commercial efforts to cure such
              violation or non-compliance as soon as practicable.

       17.1.4 PERFORMANCE OF SERVICES. VITI covenants and agrees, and
              represents and warrants to TSI, that VITI shall provide the
              Services in a professional, workmanlike manner, in accordance
              with the requirements of this Agreement.

       17.1.5 NO VIRUSES. VITI represents and warrants to TSI that VITI shall
              use all commercially reasonable efforts to ensure that there are
              no viruses or similar items ("Viruses") in any VITI Software
              and/or VITI Third Party Software provided or used by VITI as part
              of the Services. VITI agrees that, in the event a Virus is found
              to have been introduced into such software from any source, VITI
              shall use all commercially reasonable efforts to eliminate the
              Virus, to reduce the effects of the Virus and, if the Virus
              causes a loss of operational efficiency or loss of data, to
              mitigate and restore such losses.

       17.1.6 NO SUITS OR ACTIONS. VITI represents and warrants to TSI that
              there are no pending or threatened lawsuits, actions, or any
              other legal or administrative proceeding against VITI which, if
              adversely determined against VITI, will

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              have a material adverse affect on VITI's ability to perform its
              obligations under this Agreement.

       17.1.7 CONTINUING WARRANTIES. VITI hereby agrees and covenants to
              ensure, throughout the term, that each of the representations and
              warranties set forth in this Section 17.1, and each other
              representation and warranty of VITI in this Agreement, remains
              true and correct during the term of this Agreement. To the extent
              that any such representation or warranty becomes untrue in any
              material respects during the term of this Agreement, VITI shall
              notify TSI of the facts and circumstances surrounding such
              situation.

17.2   TSI

       17.2.1 AUTHORIZATION. TSI represents and warrants to VITI: (i) that this
              Agreement has been validly executed and delivered by TSI and that
              the provisions set forth herein constitute legal, valid and
              binding obligations of TSI enforceable against TSI in accordance
              with their terms, subject to bankruptcy, insolvency,
              reorganization and other laws affecting creditors' rights
              generally, and with regard to equitable remedies, to the
              discretion of the court before which proceedings to obtain such
              remedies may be pending; (ii) that TSI has all requisite
              corporate power and authority to enter into this Agreement and to
              carry out the transactions contemplated by this Agreement, and
              that the execution, delivery and performance of this Agreement
              and the consummation of the transactions contemplated by this
              Agreement have been duly authorized by all requisite corporate
              action on the part of TSI; and (iii) that TSI's execution and
              delivery of this Agreement and TSI's performance or compliance
              with the terms of this Agreement will not conflict with, result
              in a breach of, constitute a default under, or require the
              consent of any third party under any license, sublicense, lease,
              contract, agreement or instrument to which TSI is bound or by
              which TSI's properties are subject.

       17.2.2 NON-INFRINGEMENT. TSI represents and warrants to VITI that the
              TSI Software does not infringe, or constitute an infringement or
              misappropriation of, any Intellectual Property Rights of any
              third party.

       17.2.3 COMPLIANCE WITH LAWS. TSI represents and warrants to VITI that
              TSI will perform its obligations under this Agreement in a manner
              that complies with all applicable laws. If TSI is charged with a
              violation of or non-compliance with any such laws, TSI will
              promptly notify VITI of such charges in writing and will use
              TSI's reasonable commercial efforts to cure such violation or
              non-compliance as soon as practicable.

       17.2.4 NO VIRUSES. TSI represents and warrants to VITI that TSI will use
              all commercially reasonable efforts to ensure that there are no
              viruses or similar items ("Viruses") in any TSI Software or TSI
              Third Party Software provided to VITI. TSI agrees that, in the
              event a Virus is found to have been introduced into such software
              from any source, TSI will use all commercially reasonable

                                       14
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              efforts to eliminate the Virus, to reduce the effects of the
              Virus and VITI shall have the right to stop processing until this
              is accomplished or VITI can process without compromising the
              security of its data center.

       17.2.5 NO SUITS OR ACTIONS. TSI represents and warrants to VITI that
              there are no pending or threatened lawsuits, actions, or any
              other legal or administrative proceeding against TSI which, if
              adversely determined against TSI, will have a material adverse
              affect on TSI's ability to perform its obligations under this
              Agreement.

       17.2.6 CONTINUING WARRANTIES. TSI hereby agrees and covenants to ensure,
              throughout the term, that each of the representations and
              warranties set forth in this Section 17.2, and each other
              representation and warranty of TSI in this Agreement, remains
              true and correct during the term of this Agreement. To the extent
              that any such representation or warranty becomes untrue in any
              material respects during the term of this Agreement, TSI will
              notify VITI of the facts and circumstances surrounding such
              situation.

18.    INDEMNIFICATION

18.1   INDEMNIFICATION BY VITI. VITI shall indemnify, defend and hold harmless,
       in accordance with the procedures described in Section 18.3, TSI and its
       Affiliates and its and their respective officers, directors, members,
       employees, agents, successors, and assigns, from and against any and all
       losses, claims, damages, liabilities, obligations, penalties, judgments,
       awards, costs, expenses, and disbursements finally awarded and caused by,
       relating to, based upon, arising out of or in connection with (a) any
       breach by VITI of the representations and warranties made by it under
       this Agreement; (b) gross negligence, recklessness or willful misconduct
       on the part of VITI or its officers, directors employees, agents,
       successors and assigns; (c) any claim that the Hardware, VITI Software,
       or any VITI materials provided under Section 9.1 infringes or
       misappropriates any Intellectual Property Rights of any third party; and
       (d) bodily injury or death or damage to tangible personal property to the
       extent the same was caused by the negligence or willful misconduct by
       VITI or its Affiliates or their respective directors, officers,
       employees, agents, successors or assigns.

18.2   INDEMNIFICATION BY TSI. TSI will indemnify, defend and hold harmless, in
       accordance with the procedures described in Section 18.3, VITI and its
       Affiliates and its and their respective officers, directors, members,
       employees, agents, successors, and assigns, from any and all losses,
       claims, damages, liabilities, obligations, penalties, judgments, awards,
       costs, expenses, and disbursements finally awarded and caused by,
       relating to, based upon, arising out of or in connection with (a) any
       breach by TSI of the representations and warranties made by it under this
       Agreement; (b) gross negligence, recklessness or willful misconduct on
       the part of TSI or its officers, directors employees, agents, successors
       and assigns; (c) any claim that the use of TSI Software infringes or
       misappropriates any Intellectual Property Rights of any third party; and
       (d) bodily injury or death or damage to tangible personal property to the
       extent the same was caused by the negligence or willful misconduct by TSI
       or its Affiliates or their respective directors, officers, employees,
       agents, successors or assigns.

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18.3   INDEMNIFICATION PROCEDURE. The party obliged to indemnify ("Indemnifying
       Party") shall defend with counsel of its choosing any claim, demand, or
       suit or other action (each, a "Claim") brought against each person
       seeking to be reimbursed, indemnified, defended, and/or held harmless
       (each an "Indemnified Party"). The Indemnified Party shall notify the
       Indemnifying Party promptly in writing of any Claims for which the
       Indemnified Party alleges that the Indemnifying Party is responsible
       under this Article 18, which notice shall include a reasonable
       identification of the alleged facts giving rise to such Claim. The
       Indemnifying Party shall be relieved of liability hereunder to the extent
       it is prejudiced by the Indemnified Party's failure to give prompt
       notice. The Indemnifying Party shall also be relieved of liability
       hereunder for settlement by the Indemnified Party of any Claim unless the
       Indemnifying Party has approved the settlement in advance (such approval
       not to be unreasonably withheld) or unless the defense of the Claim has
       been tendered to the Indemnifying Party in writing and the Indemnifying
       Party has failed promptly to undertake the defense. The Indemnified Party
       shall reasonably cooperate with the Indemnifying Party and its agents in
       defense of any Claim for which such Indemnified Party seeks to be
       reimbursed, indemnified defended, or held harmless. Each Indemnified
       Party shall have the right to participate in the defense of any such
       Claim, by using attorneys of such Indemnified Party's choice, at such
       Indemnified Party's expense.

19.    LIMITATION OF LIABILITY

19.1   IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER WHATSOEVER
       FOR ANY INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES,
       INCLUDING BUT NOT LIMITED TO LOSS OF ANTICIPATED PROFITS OR REVENUE OR
       OTHER ECONOMIC LOSS IN CONNECTION WITH OR ENSUING FROM THE SERVICES TO BE
       FURNISHED PURSUANT TO THIS AGREEMENT, EVEN IF THE OTHER PARTY HAS BEEN
       ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

19.2   CAP ON DAMAGES. In no event shall TSI be entitled to any monetary damages
       against VITI in excess of the payments for Monthly Labor (Processing)
       Fees made by TSI to VITI for the prior six (6) months [or if six (6)
       months have not yet elapsed since the Effective Date, then six (6) times
       the average monthly payments made by TSI to VITI for Services since the
       Effective Date].

19.3   EXCLUSION. Sections 19.1 and 19.2 shall not apply to claims involving
       death, bodily injury or property damage or the provisions of Article 9
       (Concept/Product Ownership), Article 16 (Confidential and Proprietary
       Information), and Article 18 (Indemnification), nor shall Sections 19.1
       and 19.2 apply to any loss that results from gross negligence or willful
       misconduct on the part of either party.

19.4   EXPIRATION OF CLAIMS. No action, regardless of form, arising out of the
       transactions contemplated by this Agreement may be brought by either
       party more than two (2) years after the cause of action has accrued,
       except that an action for non-payment may be brought within two (2) years
       after the date of last payment.

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20.    ADDITIONAL SERVICES

20.1   CONVERSION, INTERFACING, RETROFITTING. Any conversion, interfacing, and
       retrofitting services requested by TSI are outside the scope of this
       Agreement. VITI, upon receipt of a statement of work from TSI, will
       prepare and submit its proposal to TSI. Upon acceptance by TSI, the new
       services will be set forth in a mutually agreed upon definitive agreement
       between the parties.

20.2   SPECIAL SERVICES. TSI shall notify VITI in writing of its request for
       VITI to provide consulting services or provide other professional
       services that may be offered by VITI from time to time. VITI shall
       develop a proposal for TSI for the additional effort. TSI shall pay for
       any additional professional services, including any preliminary
       specifications or study requirements, on a time and materials basis at
       VITI's then-current hourly rate according to the professional services
       requested by TSI. Any professional services provided under this Section
       20.2 will be set forth in a mutually agreed upon definitive agreement
       between VITI and TSI.

21.    DISPUTE RESOLUTION:

21.1   ALTERNATIVE DISPUTE RESOLUTION. The parties desire to resolve disputes
       arising out of this Agreement without litigation. Accordingly, except for
       an action seeking a temporary restraining order or injunction related to
       the purposes of this Agreement, or suit to compel compliance with this
       dispute resolution process, the parties agree to use the following
       alternative dispute resolution procedure as their sole remedy with
       respect to any controversy or claim arising out of or relating to this
       Agreement or its breach.

       The parties desire to resolve disputes arising out of this Agreement
       without litigation. Accordingly, except for an action seeking a temporary
       restraining order or injunction related to the purposes of this
       Agreement, or suit to compel compliance with this dispute resolution
       process, the parties agree to use the following alternative dispute
       resolution procedure as their sole remedy with respect to any controversy
       or claim arising out of or relating to this Agreement or its breach.

21.2   PROCEDURE. At the written request of a party, each party will appoint a
       knowledgeable, responsible representative to meet and negotiate in good
       faith to resolve any dispute arising under this Agreement. The parties
       intend that these negotiations be conducted by non-lawyer, business
       representatives. The location, format, frequency, duration and conclusion
       of these discussions shall be left to the discretion of the
       representatives. Upon agreement, the representatives may utilize other
       alternative dispute resolution procedures such as mediation to assist in
       the negotiations. Discussions and correspondence among the
       representatives for purposes of these negotiations shall be treated as
       confidential information developed for purposes of settlement, exempt
       from discovery and production, which shall not be admissible in the
       arbitration described below or in any lawsuit without the concurrence of
       all parties. Documents identified in or provided with such
       communications, which are not prepared for

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       purposes of the negotiations, are not so exempted and may, if otherwise
       admissible, be admitted in evidence in the arbitration or lawsuit.

21.3   BINDING ARBITRATION/DISCOVERY. If the negotiations do not resolve the
       dispute within sixty (60) days of the initial written request, the
       dispute shall be submitted to binding arbitration by a single arbitrator
       pursuant to the Commercial Arbitration Rules of the American Arbitration
       Association. A party may demand such arbitration in accordance with the
       procedures set out in those rules. Discovery shall be controlled by the
       arbitrator and shall be permitted to the extent set out in this Section
       20.3. Each party may submit in writing to a party, and that party shall
       so respond, to a maximum of any combination of thirty-five (35) (none of
       which may have subparts) of the following:

              (1)  interrogatories,
              (2)  demands to produce documents, and
              (3)  requests for admission

21.4   DEPOSITIONS/ARBITRATION HEARING. Each party is also entitled to take the
       oral deposition of one individual of another party. Additional discovery
       may be permitted upon mutual agreement of the parties. The arbitration
       hearing shall be commenced within sixty (60) days of the demand for
       arbitration. The arbitration shall be held in Tampa, Florida. The
       arbitrator shall control the scheduling so as to process the matter
       expeditiously. The parties may submit written briefs. The arbitrator
       shall rule on the dispute by issuing a written opinion within thirty (30)
       days after the close of hearings. The times specified in this Section
       20.4 may be extended upon mutual agreement of the parties or by the
       arbitrator upon a showing of good cause. Judgment upon the award rendered
       by the arbitrator may be entered in any court having jurisdiction. The
       arbitrator shall have no authority to award punitive or exemplary damages
       or any other damages not measured by the prevailing party's actual
       damages and may not, in any event, make any ruling, finding or award that
       does not conform to the terms and conditions of this Agreement.

21.5   COSTS. Each party shall bear its own costs of these procedures. A party
       seeking discovery shall reimburse the responding party the costs of
       production of documents (to include search time and reproduction costs).
       The parties shall equally split the fees of the arbitration cost, the
       court reporter's transcript, and the arbitrator.

22     NOTICES

22.1   NOTICES. All notices required to be given hereunder shall be given to the
       respective parties by facsimile transmission or by such other method as
       will result in a written acknowledgment of receipt. Notices shall be
       deemed delivered on the Business Day (Monday through Friday, excluding
       TSI and VITI holidays) following the date shown on the facsimile
       transmission or on the date shown on the signed receipt.

       To VITI :          Verizon Information Technologies Inc.
                          One East Telecom Parkway
                          P.O. Box 290152

                                       18
<Page>

                          Temple Terrace, Florida 33687
                          Attention: Vice President-Commercial Services
                          Facsimile: (813) 978-6020

       Copies to:         Legal Department
                          Verizon Information Technologies Inc.
                          One East Telecom Parkway, DC A1H
                          Post Office Box 290152
                          Tampa, FL 33687
                          Facsimile: (813) 978-4163

       To TSI:            TSI Telecommunication Services, Inc.
                          201 North Franklin Street
                          Suite 700
                          Tampa, Florida 33602
                          Facsimile: (813) 273-3484

22.2   Either party may change its contact person, address and facsimile number
       for notice purposes by giving the other party written notice of the new
       address and the date upon which it will become effective in accordance
       with this section.

23     MISCELLANEOUS

23.1   EQUAL EMPLOYMENT OPPORTUNITY The Equal Employment Opportunity Clause in
       Section 202, Paragraphs 1 through 7, of Executive Order 11246, as
       amended, relative to Equal Employment Opportunity, and the implementing
       Rules and Regulations of the Office of Federal Contract Compliance, are
       incorporated herein by specific reference.

23.2   ASSIGNMENT; SUCCESSORS. Neither party may assign the rights or
       obligations of this Agreement without the express written consent of the
       other, which consent shall not be unreasonably delayed or withheld;
       provided, however, that each party may, upon written notice to the other
       party, assign its rights and obligations under this Agreement: (a) to an
       Affiliate; (b) to an entity that acquires all or substantially all of the
       assets of the assigning party; or (c) to any successor in a merger or
       acquisition of the assigning party. In case of assignment, the provisions
       of this Agreement shall be binding on all successors and assigns.

23.3   SEVERABILITY. In the event that any portion of this Agreement is
       terminated or deemed to be void or unenforceable, that portion of the
       Agreement shall be severed and the balance of the provisions shall
       continue and be effective and enforceable.

23.4   WAIVER. No delay or omission by either party to exercise any right or
       power hereunder shall preclude the exercise of such right or power in
       subsequent instances or be construed to be a waiver. A waiver by either
       party of any of the covenants to be performed by the other party shall
       not be construed to be a waiver of any covenant herein contained, and the
       waiver of any breach of covenant shall not be construed to be a waiver of
       any succeeding breach. All

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       remedies provided for in this Agreement shall be cumulative and in
       addition to and not in lieu of any other remedies available to either
       party at law, in equity, or otherwise.

23.5   FORCE MAJEURE. Neither party shall be liable by reason of any failure in
       performance of this Agreement for reason of Force Majeure.

23.6   GOVERNING LAW. This Agreement shall be governed by, interpreted and
       construed in accordance with the laws of the State of Florida, without
       giving effect to any provision of such law relating to conflict of laws.

23.7   PUBLICITY. Except for intracompany bulletins and communications, neither
       VITI nor TSI shall make or authorize any media release, advertisement, or
       other disclosure pertaining to this Agreement without the prior written
       consent of the other party. Notwithstanding the foregoing, VITI may list
       TSI as a customer through media releases, and/or other promotional and
       marketing media and describe in general terms the Services.

23.8   INDEPENDENT CONTRACTOR. It is expressly understood that VITI and TSI are
       independent contractors of one another, and that neither has the
       authority to bind the other to any third person or otherwise to act in
       any way as the representative of the other, unless otherwise expressly
       agreed to in writing by both parties.

23.9   ACTION REQUIRING CONSENT. Wherever agreement, approval, acceptance,
       consent or similar action by either party is required by any provision of
       this Agreement, such action shall be not unreasonably delayed or
       withheld.

23.10  ACCOUNT SUPPORT - ORGANIZATION AND ADMINISTRATION. Routine account
       activities will be managed and administered jointly by designated
       participants of TSI and VITI.

23.11  SOLICITATION OF EMPLOYEES. During the term of this Agreement and for a
       period of one (1) year from the date VITI stops providing Services,
       neither party shall solicit for employment nor employ, directly, any
       employee of the other party without the other party's prior written
       consent, PROVIDED, however, that nothing shall prohibit TSI or VITI and
       their respective Affiliates from employing any employee or former
       employee of TSI or VITI or any of its Affiliates who responds to a
       general solicitation for employees not specifically focused at employees
       of TSI or VITI and its Affiliates through the use of media,
       advertisement, electronic job boards or other general, public
       solicitations.

23.12  ORDER OF PRECEDENCE. To the extent any of the terms and conditions set
       forth in the Exhibits or Attachments hereto conflict with any of the
       terms and conditions of this Agreement, the terms and conditions of the
       Exhibits and the Attachment shall control.

23.13  ENTIRE AGREEMENT; SURVIVAL. This Agreement and its Exhibits and
       Attachments constitute the entire agreement between the parties with
       respect to the subject matter hereof and there are no written or oral
       representations, understandings or agreements which are not fully
       expressed herein. This Agreement and its executed Exhibits and
       Attachments are intended to be the exclusive statement of the agreement
       between the parties with respect to the subject

                                       20
<Page>

       matter hereof and any other terms or conditions included in quotes,
       acknowledgments, bills of lading, or other forms utilized or exchanged by
       the parties shall not be incorporated herein or be binding unless
       expressly agreed to in writing by both parties. No change, waiver, or
       discharge hereof shall be valid unless in writing and signed by
       authorized representatives of both parties. The respective obligations of
       the parties under this Agreement that by their nature would continue
       beyond the termination, cancellation or expiration, shall survive
       termination, cancellation, or expiration.

23.14  AMENDMENT. This Agreement shall not be modified, amended or in any way
       altered except by an instrument in writing signed by both parties.

23.15  COVENANT OF GOOD FAITH. Each party, in its respective dealings with the
       other party under or in connection with the Agreement, shall act in good
       faith.

23.16  AUTHORITY. Each party hereby represents and warrants that the individuals
       below who have executed this Agreement have the express authority to do
       so on behalf of their respective parties.

The parties have caused this Agreement to be signed by their duly authorized
representatives on the Effective Date.

TSI TELECOMMUNICATION SERVICES, INC.
/s/ Robert Garcia, Jr.
-----------------------------------------------
BY - SIGNATURE
ROBERT GARCIA, JR.
-----------------------------------------------
PRINTED NAME
ASSOCIATE GENERAL COUNSEL/ASSISTANT SECRETARY
-----------------------------------------------
TITLE

VERIZON INFORMATION TECHNOLOGIES INC.
/s/ Del Jenkins
-----------------------------------------------
BY - SIGNATURE

DEL JENKINS
-----------------------------------------------
PRINTED NAME

VICE PRESIDENT, IT SERVICES
-----------------------------------------------
TITLE

                                       21
<Page>

                                    EXHIBIT A

                                STATEMENT OF WORK

                  TO DISTRIBUTED PROCESSING SERVICES AGREEMENT

                                     BETWEEN

                      VERIZON INFORMATION TECHNOLOGIES INC.
                                       AND

                      TSI TELECOMMUNICATION SERVICES, INC.

                             DATED FEBRUARY 14, 2002

This Statement of Work ("SOW") outlines the tasks required for VERIZON
INFORMATION TECHNOLOGIES INC. ("VITI") to support TSI TELECOMMUNICATION
SERVICES, INC. ("TSI") distributed systems processing at VITI's data center
facility. VITI shall perform its services in accordance with the Distributed
Processing Services Agreement between VITI and TSI dated February 14, 2002
("Agreement") and upon execution by both parties hereto, this SOW shall become a
part of the Agreement. All capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to them in the Agreement.

1.0    SERVICES

1.1    DESCRIPTION OF SERVICES: VITI shall provide data center infrastructure
       and technical support services in support of TSI's distributed systems
       processing ("Services"). The Services include a data center network
       infrastructure.

2.0    FACILITIES

       Services will be provided by VITI from its data centers as VITI deems
       appropriate. VITI's data center facilities provide a secure operating
       environment with enhanced physical protection of hardware resources.
       Specific physical features include state-of-the-art systems for security,
       fire protection, and power management as well as consistent temperature
       and humidity control.

3.0    SYSTEMS SUPPORT

       VITI shall maintain and operate the Hardware and Software located in
       VITI's data center. Support personnel in the VITI data center will
       monitor the system as required using industry standard monitoring tools.
       VITI data center personnel will be responsible for operating system
       software, system performance, and hardware monitoring on all existing and
       any new hardware added to TSI Initial Distributed Processing Environment.
       Except as provided in this SOW, VITI is not responsible for system
       support of any remote TSI equipment at TSI's or any of TSI's customer
       sites, desktop, or peripheral devices.

                                       22
<Page>

       VITI's Systems Support Responsibilities:

        - Operate Hardware and Software specified in this SOW
        - Monitor server Hardware 24 hours a day, 7 days a week
        - Maintain an up-to-date inventory of operating system Hardware and
          Software
        - Prepare, install, and certify operating system software releases,
          update and upgrades
        - Administer system level security
        - Provide technical support 24 hours a day, 7 days a week
        - Perform problem analysis and resolution for all VITI-owned and/or
          leased hardware and licensed software
        - Provide vendor interface for all VITI-owned and/or leased hardware and
          licensed software
        - Perform tape backup and storage as follows:

<Table>
<Caption>
System Name         OS           Backup       Backup          Retention Time     Retention        Retention Time    Time of the
                                 type         Drive           Daily              Time Weekly      Monthly           Day
--------------------------------------------------------------------------------------------------------------------------------
<S>                 <C>          <C>          <C>             <C>                <C>              <C>                   <C>
tman_primeco        IRIX         Full-Daily   DLT             14 days            30 days          365 days              6:00 PM
                    6.5.2

clone_primeco       IRIX         Full-Daily   4mm Dat         14 days            30 days          365 days              8:00 PM
                    6.5.2

Informix-cloneP     IRIX         Full-Daily   Rotation DLT                       Pending          Pending
                    6.5.2

tman                Solaris      Full-        8mm             7 days             30 days          1 Year                8:00 PM
                    2.5          Daily

Irec                Solaris      Full-Daily   8mm             7 days             30 days          365 days              8:00 PM
                    2.6

Informix-IREC       Solaris      Full-Daily   8mm             14 days            30 days          365 days              8:00 PM
                    2.6

clone_bureau        IRIX 6.2     Full-Daily   4mm DAT         7 days             30 days          365 days              8:00 PM

fraudx              IRIX         Full-Daily   4mm DAT         14 days            30 days          365 days              8:00 PM
                    6.5.2

Informix-fraudx     IRIX         Full-Daily   Rotation DLT                       Pending          Pending
                    6.5.2
</Table>

                                       23
<Page>

<Table>
<S>                 <C>          <C>          <C>             <C>                <C>              <C>                 <C>
tman-svb            Solaris      Full-Daily   8mm             14 days            30 days          365 days              8:00 PM
                    2.6

expressway          Solaris      Full-Daily   8mm             14 days            30 days          365 days              8:00 PM
                    2.6

crossroads          Solaris      Full-Daily   8mm             14 days            30 days          365 days              9:00 PM
                    2.6

crossroads-dir      Solaris      Full-Daily   8mm             14 days            30 days          365 days              8:00 PM
                    2.6

Sun 10K             Solaris      No production backups being run. Full operating system backup
                    2.6          run by MSSUN as needed

Pandora             NT 4.0       Full-Daily   DLT             7 days             60 days                               10:00 PM

NGSS                NT 4.0       Full-Daily   4mm             7 days Mon-        Perm Fri         1 Year Sun            2:30 PM
                                                              Thur,Sat

TPISCP1             Guardian     Full-Daily   DLT             30 days            90 days          365 days            midnight
                    d45

TPISBB              Guardian     Full-Daily   DLT             30 days            365 days         365 days            midnight
                    d45

                                 Database     3490            30 days
                                 KMC          3490            30 days            60 days          365 days            midnight

TPITST5             Guardian     Full-Daily   DLT             30 days            90 days          365 days            midnight
                    6.04

DRSYS1              Guardian     Database     DLT                                90 days                            midnight
                    d45

CAIOLS              Gurdian      Full-Daily   3490            30 days            90 days          365 days          midnight
                                 Tranlog      3490                                                2 yrs             midnight
</Table>

        - Perform backup and retention schedule for the ARMS system files as set
          forth in Attachment 2 to this SOW

       TSI Application Support Responsibilities:

        - Application development, implementation, and maintenance support
        - Analysis and resolution of application software problems
        - Vendor interface for software products not provided by VITI
        - On-call technical support 24 hours a day, 7 days a week
        - Analysis and resolution of problems
        - Database software support and maintenance

                                       24
<Page>

        - Provide application database backups procedures

4.0    MAINTENANCE

       The Hardware and Software maintenance contracts required for the
       Services provided under this SOW will include remote online vendor
       access, vendor hot-line support, on-site hardware support, and internal
       support escalation response time parameters as prescribed by VITI. Except
       as provided in this SOW, VITI is not responsible for support of hardware
       support at any remote TSI or TSI customer site including, processors,
       network, desktop, or peripheral devices.

5.0    SYSTEMS SECURITY

       Physical system security administration for the servers located in the
       data center will be performed by VITI. TSI will be responsible for
       developing user profiles for the granting of access and designating
       levels of authority to TSI-designated individuals for the system;
       provided, however, that VITI has the right to prior notice of, and
       consent to, access and levels of authority for TSI's users, third party
       contractors, consultants, agents and/or other suppliers, which consent
       shall not be unreasonably withheld, conditioned or delayed. VITI shall be
       responsible for managing the TSI-provided user profiles for access and
       authority levels. VITI shall retain root authority. VITI shall have the
       ability to add the support personnel it deems necessary to access TSI
       systems. TSI shall not inhibit the addition or removal of VITI operating
       system support accounts needed by VITI level one and level two support
       staff. In addition, TSI will be responsible for developing appropriate
       user profiles in order for VITI to perform the Services under this SOW,
       including appropriate access and authority levels for VITI's third-party
       suppliers required for maintenance and support of the system.

6.0    NATIONAL SUPPORT CENTER HELP DESK SERVICES/PROBLEM MANAGEMENT

       VITI's National Support Center ("NSC") will use established industry
       standard procedures for the management and resolution of all
       VITI-provided Hardware and network problems in the VITI service bureau
       environment. The VITI help desk will provide TSI:

        - 24-hour-a-day, 7-day-a-week help desk support
        - Standardized problem reporting, logging, and tracking procedure
        - Streamlined communications
        - Problem resolution
        - Consistent, high-quality service

       When contacted by TSI, the VITI help desk consultant will open a problem
       record (with a comprehensive description of the problem) while the
       contact from TSI is on the telephone.

       After problem investigation and resolution, the problem record is updated
       as required and closed. VITI shall not consider a problem record closed
       until TSI verifies resolution.

                                       25
<Page>

7.0    CHANGE MANAGEMENT PROCESS

7.1    CHANGE MANAGEMENT PROCEDURES: There are many critical components
       including network hardware, CPU, disk storage, and tape devices that must
       be maintained in order to provide high performance and service delivery.
       Preventive maintenance is a vital part of a successful data processing
       operation. The change management schedule will be mutually agreed on by
       TSI and VITI through VITI's Customer Advocate. The schedule provides the
       following:

        - Complete documentation (e.g., reason for change, duration of change)
        - Approval of affected parties (VITI and TSI)
        - Back-out plan

       VITI uses a set of established change management tools to communicate,
       coordinate, schedule, monitor, and implement changes in an effective
       manner. The VITI Customer Advocate supplies TSI's representative with a
       change record, clarifying the maintenance and an assessment of the risk
       involved. The VITI Customer Advocate then initiates the change after
       receiving written approval from TSI's representative.

7.2    CHANGE INITIATION: VITI shall notify TSI in advance of any scheduled
       maintenance. The parties will mutually establish the date and time for
       any change. An INFOMAN record, clarifying the maintenance and risk
       assessment, will be supplied. TSI's approval will be required for the
       change record prior to the change being executed. VITI shall set forth
       the price at which TSI will be charged for any service done before TSI
       approves or provides a notice to disregard a change request.

7.3    CHANGE IMPLEMENTATION: Changes will be scheduled for dates and times as
       mutually agreed upon in writing by VITI and TSI.

7.4    TSI INITIATED CHANGES: Changes initiated by TSI that affect the
       production environment such as changes to the Hardware and changes to the
       application or database engine will be communicated in advance to VITI.
       Internal TSI initiated changes will be forwarded to the VITI Customer
       Advocate at least 72 hours in advance for any non-emergency change to
       ensure proper coordination within VITI support organizations. Certain TSI
       changes may also require a separate VITI change record to be issued
       within VITI. TSI changes that would require VITI notification include,
       but are not limited to:

        - Changes that would trigger events in VITI automated monitoring
        - Changes to the Hardware or system software environment
        - Changes that have a risk to the production environment
        - Changes that would affect network monitoring

                                       26
<Page>

8.0    MODIFICATION PROCEDURES

8.1    Changes to this SOW ("Modifications") may be requested at any time by
       either TSI or VITI. All such requested changes will be in writing through
       a change request form ("Change Request"). The Change Request will be
       jointly reviewed by designated representatives of TSI and VITI to
       determine whether the Modifications will materially affect the price,
       schedule or terms of the Agreement. The VITI Account Manager, as defined
       herein, is responsible for coordination of modification process on behalf
       of VITI. Based upon the joint review of the Change Request, the following
       procedures will apply:

       -  If, as a result of the joint review, it is determined that the
          Modifications do not materially affect the price, schedule or terms of
          the Agreement, then the designated representative for the party
          receiving the Change Request will initiate a written acceptance or
          rejection of the request within fifteen (15) working days after
          receipt of the Change Request.

       -  If, as a result of the joint review, it is determined that the
          Modifications do materially affect the price, schedule or terms of the
          Agreement, then VITI shall submit to TSI an amending work order ("Work
          Order") which shall include a description of the Modifications and the
          time and charges required to provide the requested Modifications.
          Neither party shall be under any obligation to proceed with any
          requested Modifications prior to receipt of a fully-executed amending
          Work Order.

          Upon receipt of an amending Work Order, TSI shall have a period of ten
          (10) days in which to (i) provide VITI with written authorization to
          implement the requested change, or (ii) provide VITI with written
          notice to disregard such Change Request. If TSI provides VITI with a
          notice to disregard the Change Request after VITI has prepared an
          amending Work Order in response to an TSI-initiated Change Request,
          then VITI reserves the right to charge TSI for its services associated
          with the effort, including any preliminary specifications or study
          requirements.

8.2    The issuance of information, advice, approvals or instructions by either
       VITI's or TSI's technical personnel or other representatives shall be
       deemed expressions of personal opinion only and shall not affect VITI's
       and TSI's rights and obligations hereunder unless the same is in writing,
       signed by authorized representatives of both parties, and expressly
       states that it constitutes a change.

9.0    VITI CUSTOMER LIAISONS

          ACCOUNT MANAGER
             Name:             Laura Slone
             Telephone:        813-978-5389
             Address:          1 East Telecom Parkway
                               Temple Terrace, Florida 33637

                                       27
<Page>

          CUSTOMER ADVOCATE
             Name:             TBD
             Telephone:
             Address:          1 East Telecom Parkway
                               Temple Terrace, Florida 33637

       Following are the accountabilities and responsibilities of the ACCOUNT
       MANAGER:

        - Overall relationship management between TSI and VITI
        - Understand the general business strategy and direction of TSI to
          ensure VITI continually provides required performance and service
          levels for TSI
        - Communicate with the Customer Advocate to assure compliance with all
          contractual obligations
        - Conduct quarterly account review meetings at a mutually agreed to
          location

       Following are the accountabilities and responsibilities of the CUSTOMER
       ADVOCATE:

        - Direct responsibility to interface with VITI's internal organizations,
          including all of VITI's operations services national organizations,
          and ensure that all service levels are being met
        - Coordinate weekly status meetings
        - Serve as first level of escalation for all related issues or concerns
        - Serve as primary contact for other VITI groups in support of TSI
        - Review with VITI management progress on the attainment of service
          level objectives:
          - Create Report Card for TSI monthly
          - Document Outage Information
          - Document SLA percentages monthly

10.0   BUSINESS CONTINUITY AND DISASTER RECOVERY

       VITI shall continue to perform disaster recovery for TSI's production
       environment under VITI's current disaster recovery plan. System backups
       will be used to recover from a disaster type situation, but VITI makes no
       commitment to recovery schedules for disaster situations. In the event
       VITI closes a data center in which TSI's backup system is housed, VITI
       shall relocate TSI's backup system, at VITI's expense, to a data center
       which is not housing TSI's primary system.

                                       28
<Page>

TSI and VITI have each caused this Agreement to be signed and delivered by their
duly authorized representatives, all as of the date set forth on page 1 hereof.

TSI TELECOMMUNICATION SERVICES, INC.

/s/ Robert F. Garcia, Jr.
BY - SIGNATURE

Robert F. Garcia, Jr.
PRINTED NAME

Assoc. General Counsel/
 Assistant Secretary
TITLE

VERIZON INFORMATION TECHNOLOGIES INC.

/s/ Del Jenkins
BY _ SIGNATURE

DEL JENKINS
-----------------------------------------------
PRINTED NAME

VICE PRESIDENT, IT SERVICES
-----------------------------------------------
TITLE

                                       29
<Page>

                                    EXHIBIT B

                     SERVICE BUREAU (DISTRIBUTED PROCESSING)

                                      FEES

       Fees for the Services are capped for the Term as set forth below. There
       are no cost of living adjustments.

        PROCESSING FOR THE DISTRIBUTED
         PROCESSING ENVIRONMENT (as it
         existed on 11/30/01):                $240,666.67 per month

        SOFTWARE LICENSES AND
        HARDWARE AND SOFTWARE MAINTENANCE
         (Under the Verizon Enterprise
         License for the Distributed
         Processing Environment as
         it existed on 11/30/01):             Not to Exceed $300,000 per month*

        NTN CIRCUITS(6)                       $16,998 per month*

        SAP, AP AND INTRANET APPLICATIONS
         ACCESS                               $17,660 per month*

        * Pass Through Charge

        - To the extent TSI requests any software, hardware or maintenance that
          is in addition to that provided in the Initial Distributed Processing
          Environment as it existed on November 30, 2001, or to the extent
          service levels are increased: (1) TSI shall be responsible for all
          corresponding fees; and (2) VITI shall charge TSI for such new
          software, hardware, maintenance and/or increased service levels at
          rates that are consistent with those set forth in this Agreement,
          including for maintenance fees which shall continue to be charged on a
          pass-through basis, as described above.

        - To the extent TSI wishes VITI to transfer any VITI Third Party
          software licenses used specifically for TSI and not under the Verizon
          Enterprise License, VITI will do so provided that TSI has paid all
          consent, license and maintenance fees. To the extent TSI has not paid
          such fees, TSI will pay VITI such fees prior to the transfer, provided
          further that VITI has the right to make such transfer.

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Exhibit 10.3  

 
 

UNITED ONLINE, INC.
  2001 EMPLOYEE STOCK PURCHASE PLAN
  
    (As amended and restated effective January 29, 2002)    
  

 I.    PURPOSE OF THE PLAN  

        This Employee Stock Purchase Plan is intended to promote the interests of United Online, Inc., a Delaware corporation, by providing eligible employees with
the opportunity to acquire a proprietary interest in the Corporation through participation in a payroll deduction based employee stock purchase plan designed to qualify under Section 423 of the
Code. 

        Capitalized
terms herein shall have the meanings assigned to such terms in the attached Appendix. 

 II.    ADMINISTRATION OF THE PLAN  

        The Plan Administrator shall have full authority to interpret and construe any provision of the Plan and to adopt such rules and regulations for administering the
Plan as it may deem necessary in order to comply with the requirements of Code Section 423. Decisions of the Plan Administrator shall be final and binding on all parties having an interest in
the Plan. 

 III.    STOCK SUBJECT TO PLAN  

        A.    The
stock purchasable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares of Common Stock purchased on the open market.
The number of shares of Common Stock reserved for issuance over the term of the Plan shall be limited to 1,249,600 shares. Such reserve shall consist of the shares available for issuance under the
NetZero, Inc. 1999 Employee Stock Purchase Plan as well as 604,224 shares due to the automatic share reserve increase that occurred on January 2, 2002. Such reserve shall be increased by
the number of shares of Common Stock remaining available for issuance under the Juno ESPP following the January 31, 2002 purchase date. 

        B.    The
number of shares of Common Stock available for issuance under the Plan shall automatically increase on the first trading day of January each calendar year during the
term of the Plan, beginning with calendar year 2002 by an amount equal to one and one-half percent (1.5%) of the total number of shares of Common Stock outstanding on the last trading day
in December of the immediately preceding calendar year, but in no event shall any such annual increase exceed 650,000 shares. 

        C.    Should
any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change
affecting the outstanding Common Stock as a class without the Corporation's receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and class of securities
issuable under the Plan, (ii) the maximum number and class of securities purchasable per Participant and in the aggregate on any one Purchase Date, and (iii) the maximum number and/or
class of securities by which the share reserve is to increase automatically each calendar year pursuant to the provisions of Section III.B of this Article One and (v) the number and
class of securities and the price per share in effect under each outstanding purchase right in order to prevent the dilution or enlargement of benefits thereunder. 

 IV.    OFFERING PERIODS  

        A.    Shares
of Common Stock shall be offered for purchase under the Plan through a series of successive offering periods until such time as (i) the maximum number of
shares of Common Stock available for issuance under the Plan shall have been purchased or (ii) the Plan shall have been sooner terminated. 

 

        B.    Unless
otherwise specified by the Plan Administrator, each offering period shall have a twenty-four (24) month duration. Offering periods shall
commence on the first business day of May and the first business day of November each year. Special offering periods may be established with respect to entities that are acquired by the Company (or by
a subsidiary of the Company) or under such other circumstances as the Plan Administrator deems appropriate. 

        C.    Each
offering period shall be comprised of four successive Purchase Intervals. Purchase Intervals shall run from the first business day in November each year to the last
business day in April in the following year and from the first business day in May each year to the last business day in October. 

        D.    Should
the Fair Market Value per share of Common Stock on any Purchase Date within an offering period be less than the Fair Market Value per share of Common Stock on the
start date of that offering period, then the individuals participating in that offering period shall, immediately after the purchase of shares of Common Stock on their behalf on such Purchase Date, be
transferred from that offering period and be automatically enrolled in the next offering period commencing on the next business day following such Purchase Date. The new offering period shall have a
duration of twenty (24) months, unless a shorter duration is established by the Plan Administrator within five (5) business days following the start date of that offering period. 

 V.    ELIGIBILITY  

        A.    Each
individual who is an Eligible Employee on the start date of an offering period under the Plan may enter that offering period only on such start date. However, the
Eligible Employees who were employees of Juno Online Service, Inc. prior to the Effective Time, may enter the offering period that begins on November 1, 2001 on the first business day in
February 2002. Eligible Employees may not be entered into more than one offering period. 

        B.    The
date an individual enters an offering period shall be designated his or her Entry Date for purposes of that offering period. 

        C.    To
participate in the Plan for a particular offering period, the Eligible Employee must complete the enrollment forms prescribed by the Plan Administrator (including a
stock purchase agreement and a payroll deduction authorization) and file such forms with the Plan Administrator (or its designate) on or before his or her scheduled Entry Date. 

 VI.    PAYROLL DEDUCTIONS  

        A.    The
payroll deduction authorized by the Participant for purposes of acquiring shares of Common Stock during an offering period may be any multiple of one percent (1%) of
the Cash Earnings paid to the Participant during each Purchase Interval within that offering period, up to a maximum of fifteen percent (15%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in accordance with the following guidelines: 

        (i)    The
Participant may, at any time during the offering period, reduce his or her rate of payroll deduction to become effective as soon as possible after filing the
appropriate form with the Plan Administrator. The Participant may not, however, effect more than one (1) such reduction per Purchase Interval. 

        (ii)  The
Participant may, at any time during the offering period, increase the rate of his or her payroll deduction to become effective as soon as possible after filing the
appropriate form with the Plan Administrator. The Participant may not, however, effect more than one (1) such increase per Purchase Interval. 

2

 

        B.    Payroll
deductions shall begin on the first pay day administratively feasible following the Participant's Entry Date into the offering period and shall (unless sooner
terminated by the Participant) continue through the pay day ending with or immediately prior to the last day of that offering period. The amounts so collected shall be credited to the Participant's
book account under the Plan, but no interest shall be paid on the balance from time to time outstanding in such account. The amounts collected
from the Participant shall not be required to be held in any segregated account or trust fund and may be commingled with the general assets of the Corporation and used for any corporate purpose. 

        C.    Payroll
deductions shall automatically cease upon the termination of the Participant's purchase right in accordance with the provisions of the Plan. 

        D.    The
Participant's acquisition of Common Stock under the Plan on any Purchase Date shall neither limit nor require the Participant's acquisition of Common Stock on any
subsequent Purchase Date, whether within the same or a different offering period. 

VII. PURCHASE RIGHTS  

        A.    Grant of Purchase Right. A Participant shall be granted a separate purchase right for each
offering period in which he or she participates. The purchase right shall be granted on the Participant's Entry Date into the offering period. The purchase right shall be deemed to provide the
Participant with the right to purchase the lesser of (1) 10,000 shares of Common Stock or (2) the maximum amount permitted by Code
Section 423(b)(8). The actual number of shares of Common Stock purchasable on any one Purchase Date shall be limited by the provisions contained herein, including, but not limited to, those
restrictions contained in Article VII Section D and Article VIII. The Participant shall execute a stock purchase agreement embodying such terms and such other provisions (not
inconsistent with the Plan) as the Plan Administrator may deem advisable. 

        Under
no circumstances shall purchase rights be granted under the Plan to any Eligible Employee if such individual would, immediately after the grant, own (within the meaning of Code
Section 424(d)) or hold outstanding options or other rights to purchase, stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the
Corporation or any Corporate Affiliate. 

        B.    Exercise of the Purchase Right. Each purchase right shall be automatically exercised in
installments on each successive Purchase Date within the offering period, and shares of Common Stock shall accordingly be purchased on behalf of each Participant (other than Participants whose payroll
deductions have previously been refunded pursuant to the Termination of Purchase Right provisions below) on each such Purchase Date. The purchase shall be effected by applying the Participant's
payroll deductions for the Purchase Interval ending on such Purchase Date to the purchase of whole shares of Common Stock at the purchase price in effect for the Participant for that Purchase Date. 

        C.    Purchase Price. The purchase price per share at which Common Stock will be purchased on the
Participant's behalf on each Purchase Date within the offering period shall be equal to eighty-five percent (85%) of the lower of
(i) the Fair Market Value per share of Common Stock on the Participant's Entry Date into that offering period or (ii) the Fair Market Value per share of Common Stock on that Purchase
Date. 

        D.    Number of Purchasable Shares. The number of shares of Common Stock purchasable by a Participant on
each Purchase Date during the offering period shall be the number of whole shares obtained by dividing the amount collected from the Participant through payroll deductions during the Purchase Interval
ending with that Purchase Date by the purchase price in effect for the Participant for that Purchase Date. However, the maximum number of shares of Common Stock purchasable per Participant on any one
Purchase Date shall not exceed 2,500 shares, subject to periodic adjustments in 

3

 

the event of certain changes in the Corporation's capitalization. In addition, the maximum number of shares of Common Stock purchasable in total by all Participants on any one Purchase Date shall not
exceed 600,000 shares, subject to periodic adjustments in the event of certain changes in the Corporation's capitalization. However, the Plan Administrator shall have the discretionary authority,
exercisable prior to the start of any offering period under the Plan, to increase or decrease the limitations to be in effect for the number of shares purchasable per Participant and in total by all
Participants on each Purchase Date within that offering period. 

        E.    Excess Payroll Deductions. Any payroll deductions not applied to the purchase of shares of Common
Stock on any Purchase Date because they are not sufficient to purchase a whole share of Common Stock shall be held for the purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of Common Stock by reason of the limitation on the maximum number of shares purchasable per Participant or in the aggregate on the Purchase Date shall be
promptly refunded. 

        F.    Suspension of Payroll Deductions. In the event that a Participant is, by reason of the accrual
limitations in Article VIII, precluded from purchasing additional shares of Common Stock on one or more Purchase Dates during the offering period in which he or she is enrolled, then no further
payroll deductions shall be collected from such Participant with respect to those Purchase Dates. The suspension of such deductions shall not terminate the Participant's purchase right for the
offering period in which he or she is enrolled, and payroll deductions shall automatically resume on behalf of such Participant once he or she is again able to purchase shares during that offering
period in compliance with the accrual limitations of Article VIII. 

        G.    Termination of Purchase Right. The following provisions shall govern the termination of
outstanding purchase rights: 

        (i)    A
Participant may withdraw from the offering period in which he or she is enrolled by filing the appropriate form with the Plan Administrator (or its designate) at any
time prior to the next scheduled
Purchase Date in that offering period, and no further payroll deductions shall be collected from the Participant with respect to the offering period. Any payroll deductions collected during the
Purchase Interval in which such withdrawal occurs shall, at the Participant's election, be immediately refunded or held for the purchase of shares on the next Purchase Date. If no such election is
made at the time of such withdrawal, then the payroll deductions collected with respect to the Purchase Interval in which such withdrawal occurs shall be refunded as soon as possible. 

        (ii)  The
Participant's withdrawal from the offering period shall be irrevocable, and the Participant may not subsequently rejoin that offering period. In order to resume
participation in any subsequent offering period, such individual must re-enroll in the Plan (by making a timely filing of the prescribed enrollment forms) on or before his or her scheduled
Entry Date into that offering period. 

        (iii)  Should
the Participant cease to remain an Eligible Employee for any reason (including death, disability or change in status) while his or her purchase right remains
outstanding, then that purchase right shall immediately terminate, and all of the Participant's payroll deductions for the Purchase Interval in which the purchase right so terminates shall be
immediately refunded. However, should the Participant cease to remain in active service by reason of an approved unpaid leave of absence, then the Participant shall have the right, exercisable up
until the last business day of the Purchase Interval in which such leave commences, to (a) withdraw all the payroll deductions collected to date on his or her behalf for that Purchase Interval
or (b) have such funds held for the purchase of shares on his or her behalf on the next scheduled Purchase Date. In no event, however, shall any further payroll deductions be collected on the
Participant's behalf during such leave. Upon the Participant's return to active service (x) within ninety (90) days following the commencement of such leave or (y) prior to the
expiration of any longer period for which such 

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Participant's right to reemployment with the Corporation is guaranteed by statute or contract, his or her payroll deductions under the Plan shall automatically resume at the rate in effect at the
time the leave began, unless the Participant withdraws from the Plan prior to his or her return. An individual who returns to active employment following a leave of absence which exceeds in duration
the applicable (x) or (y) time period will be treated as a new Employee for purposes of subsequent participation in the Plan and must accordingly re-enroll in the Plan (by
making a timely filing of the prescribed enrollment forms) on or before his or her scheduled Entry Date into the offering period. 

        H.    Change in Control. Each outstanding purchase right shall automatically be exercised, immediately
prior to the effective date of any Change in Control, by applying the payroll deductions of each Participant for the Purchase Interval in which such Change in Control occurs to the purchase of whole
shares of Common Stock at a purchase price per share equal to eighty-five percent (85%) of the lower of (i) the Fair Market Value per
share of Common Stock on the Participant's Entry Date into the offering period in which such Change in Control occurs or (ii) the Fair Market Value per share of Common Stock immediately prior
to the effective date of such Change in Control. However, the applicable limitation on the number of shares of Common Stock purchasable per Participant shall continue to apply to any such purchase,
but not the limitation applicable to the maximum number of shares of Common Stock purchasable in total by all Participants. 

        The
Corporation shall use reasonable efforts to provide at least ten (10)-days prior written notice of the occurrence of any Change in Control, and Participants shall,
following the receipt of such notice, have the right to terminate their outstanding purchase rights prior to the effective date of the Change in Control. 

        I.    Proration of Purchase Rights. Should the total number of shares of Common Stock to be purchased
pursuant to outstanding purchase rights on any particular date exceed the number of shares then available for issuance under the Plan, the Plan Administrator shall make a pro-rata
allocation of the available shares on a uniform and nondiscriminatory basis, and the payroll deductions of each Participant, to the extent in excess of the aggregate purchase price payable for the
Common Stock pro-rated to such individual, shall be refunded. 

        J.    Assignability. The purchase right shall be exercisable only by the Participant and shall not be
assignable or transferable by the Participant. 

        K.    Stockholder Rights. A Participant shall have no stockholder rights with respect to the shares
subject to his or her outstanding purchase right until the shares are purchased on the Participant's behalf in accordance with the provisions of the Plan and the Participant has become a holder of
record of the purchased shares. 

 VIII.    ACCRUAL LIMITATIONS  

        A.    No
Participant shall be entitled to accrue rights to acquire Common Stock pursuant to any purchase right outstanding under this Plan if and to the extent such accrual,
when aggregated with (i) rights to purchase Common Stock accrued under any other purchase right granted under this Plan and (ii) similar rights accrued under other employee stock
purchase plans (within the meaning of Code Section 423) of the Corporation or any Corporate Affiliate, would otherwise permit such Participant to purchase more than Twenty-Five
Thousand Dollars ($25,000.00) worth of stock of the Corporation or any Corporate Affiliate (determined on the basis of the Fair Market Value per share on the date or dates such rights are granted) for
each calendar year such rights are at any time outstanding. 

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        B.    For
purposes of applying such accrual limitations to the purchase rights granted under the Plan, the following provisions shall be in effect: 

        (i)    The
right to acquire Common Stock under each outstanding purchase right shall accrue in a series of installments on each successive Purchase Date during the offering
period on which such right remains outstanding. 

        (ii)  No
right to acquire Common Stock under any outstanding purchase right shall accrue to the extent the Participant has already accrued in the same calendar year the right
to acquire Common Stock under one or more other purchase rights at a rate equal to Twenty-Five Thousand Dollars ($25,000.00) worth of Common Stock (determined on the basis of the Fair
Market Value per share on the date or dates of grant) for each calendar year such rights were at any time outstanding. 

        C.    If
by reason of such accrual limitations, any purchase right of a Participant does not accrue for a particular Purchase Interval, then the payroll deductions which the
Participant made during that Purchase Interval with respect to such purchase right shall be promptly refunded. 

        D.    In
the event there is any conflict between the provisions of this Article and one or more provisions of the Plan or any instrument issued thereunder, the provisions of
this Article shall be controlling. 

 IX.    EFFECTIVE DATE AND TERM OF THE PLAN  

        A.    The
June 5, 2001 amendment and restatement of the Plan shall become effective at the Effective Time, provided no
purchase rights granted under the Plan shall be exercised, and no shares of Common Stock shall be issued hereunder, until the Corporation shall have complied with all applicable requirements of the
1933 Act (including the registration of the shares of Common Stock issuable under the Plan on a Form S-8 registration statement filed with the Securities and Exchange Commission),
all applicable listing requirements of any Stock Exchange (or the Nasdaq Stock Market, if applicable) on which the Common Stock is listed for trading and all other applicable requirements established
by law or regulation. 

        B.    The
Plan shall serve as the successor to the Predecessor Plans, and no further offering periods under either Predecessor Plan shall commence after the Effective Date. 

        C.    Unless
terminated by the Board prior to such time, the Plan shall terminate on the last business day in April 2011. If the Board terminates the Plan prior to a
regularly scheduled Purchase Date, any outstanding purchase rights shall be automatically exercised, immediately prior to the effective date of such termination, by applying payroll deductions of each
Participant to the purchase of whole shares of Common Stock at a purchase price per share equal to the lower of: (i) the fair market value per
share of Common Stock on the Participant's Entry Date into the offering period or (ii) the Fair Market Value per share of Common Stock immediately prior to the effective date of the termination
of the Plan. No further purchase rights shall be granted or exercised, and no further payroll deductions shall be collected, under the Plan following such termination. 

 X.    AMENDMENT OF THE PLAN  

        A.    The
Board may alter, amend or suspend the Plan at any time. 

        B.    In
no event may the Board effect any of the following amendments or revisions to the Plan without the approval of the Corporation's stockholders: (i) increase the
number of shares of Common Stock issuable under the Plan, except for permissible adjustments in the event of certain changes in the Corporation's capitalization or (ii) modify the eligibility
requirements for participation in the Plan. 

6

 

        C.    The
Board amended and restated the Plan on January 29, 2002 to reflect, among other things, the automatic share reserve increase that occurred on January 2,
2002. 

 XI.    GENERAL PROVISIONS  

        A.    All
costs and expenses incurred in the administration of the Plan shall be paid by the Corporation; however, each Plan Participant shall bear all costs and expenses
incurred by such individual in the sale or other disposition of any shares purchased under the Plan. 

        B.    Nothing
in the Plan shall confer upon the Participant any right to continue in the employ of the Corporation or any Corporate Affiliate for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Corporate Affiliate employing such person) or of the Participant, which rights are hereby expressly
reserved by each, to terminate such person's employment at any time for any reason, with or without cause. 

        C.    The
provisions of the Plan shall be governed by the laws of the State of Delaware without resort to that State's conflict-of-laws rules. 

7

 
 

Schedule A
  
    Corporations Participating in
  the United Online, Inc. 2001
  Employee Stock Purchase Plan    
  

United Online, Inc.

Juno Online Services, Inc.

NetZero, Inc. 

 
 
 

APPENDIX    
  

        The following definitions shall be in effect under the Plan: 

        A.    Board shall mean the Corporation's Board of Directors. 

        B.    Cash Earnings shall mean (i) the regular base salary paid to a Participant by one or more Participating Companies
during such individual's period of participation in one or more offering periods under the Plan and (ii) any overtime payments, bonuses, commissions, profit-sharing distributions and other
incentive-type payments received during such period. Cash Earnings shall be calculated before deduction of (A) any income or employment tax withholdings or (B) any
contributions made by the Participant to any Code Section 401(k) salary deferral plan or Code Section 125 cafeteria benefit program now or hereafter established by the Corporation or any
Corporate Affiliate. Cash Earnings shall not include any contributions made on the Participant's behalf by the Corporation or any Corporate Affiliate to any
employee benefit or welfare plan now or hereafter established (other than Code Section 401(k) or Code Section 125 contributions deducted from such Cash Earnings). 

        C.    Change in Control shall mean a change in ownership of the Corporation pursuant to any of the following transactions: 

        (i)    a
merger, consolidation or reorganization approved by the Corporation's stockholders, unless securities representing more
than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned the Corporation's outstanding voting securities immediately prior to such transaction, or 

        (ii)  any
stockholder-approved transfer or other disposition of all or substantially all of the Corporation's assets; or 

        (iii)  the
acquisition, directly or indirectly, by a person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by or is under common control with the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the Corporation's outstanding securities pursuant to a tender or exchange offer made directly to the Corporation's stockholders. 

        D.    Code shall mean the Internal Revenue Code of 1986, as amended. 

        E.    Common Stock shall mean the Corporation's common stock. 

        F.    Corporate Affiliate shall mean any parent or subsidiary corporation of the Corporation (as determined in accordance with
Code Section 424), whether now existing or subsequently established. 

        G.    Corporation shall mean United Online, Inc., a Delaware corporation, and any corporate successor to all or
substantially all of the assets or voting stock of United Online, Inc., which shall assume the Plan. 

        H.    Effective Time shall be November 1, 2001. Any Corporate Affiliate that becomes a Participating Corporation after
such Effective Time shall designate a subsequent Effective Time with respect to its employee-Participants. 

        I.    Eligible Employee shall mean any person who is employed by a Participating Corporation on a basis under which he or she is
regularly expected to render more than twenty (20) hours of service per week for more than five (5) months per calendar year for earnings that are considered wages under Code
Section 3401 (a). 

A-1

 

        J.    Entry Date shall mean the date an Eligible Employee first commences participation in the offering period in effect under
the Plan. The earliest Entry Date under the Plan shall be the Effective Time. 

        K.    Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following
provisions: 

        (i)    If
the Common Stock is at the time traded on the Nasdaq Stock Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date
in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq Stock Market. If there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

        (ii)  If
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists. 

        L.    Juno ESPP shall mean the Juno Online, Inc. 1999 Employee Stock Purchase Plan. 

        M.  1933 Act shall mean the Securities Act of 1933, as amended. 

        N.    Participant shall mean any Eligible Employee of a Participating Corporation who is actively participating in the Plan. 

        O.    Participating Corporation shall mean the Corporation and such Corporate Affiliate or Affiliates as may be authorized from
time to time by the Board to extend the benefits of the Plan to their Eligible Employees. The Participating Corporations in the Plan are listed in attached Schedule A. 

        P.    Plan shall mean the United Online, Inc. 2001 Employee Stock Purchase Plan, as set forth in this document. 

        Q.    Plan Administrator shall mean the committee of two (2) or more Board members appointed by the Board to administer
the Plan. 

        R.    Predecessor Plans shall mean the Juno ESPP and the NetZero, Inc. 1999 Employee Stock Purchase Plan. 

        S.    Purchase Date shall mean the last business day of each Purchase Interval. 

        T.    Purchase Interval shall mean each successive six (6)-month period within the offering period at the end of which there
shall be purchased shares of Common Stock on behalf of each Participant. 

        U.    Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 

A-2

QuickLinks

UNITED ONLINE, INC. 2001 EMPLOYEE STOCK PURCHASE PLAN (As amended and restated effective January 29, 2002)

Schedule A Corporations Participating in the United Online, Inc. 2001 Employee Stock Purchase Plan

APPENDIX

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