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                                                                 EXHIBIT 10.30

                            ASSET PURCHASE AGREEMENT

         This ASSET PURCHASE AGREEMENT (this "AGREEMENT") is made this 15 day
of September, 1999, by and between National Information Consortium, Inc., a
Colorado corporation ("BUYER"), and Electric Press, Inc., a Virginia
corporation ("SELLER").

                                R E C I T A L S:

         A. Buyer desires to purchase, and Seller desires to sell, substantially
all of Seller's assets, properties and rights in the business conducted by
Seller's eFed division (the "BUSINESS").

         B. Buyer is to acquire only specified liabilities in connection with
its purchase of the Business, as herein described.

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises, agreements, representations, warranties and covenants herein
contained, the parties hereby agree as follows:

                                    SECTION 1

                           PURCHASE AND SALE OF ASSETS

         1.1. CLOSING DATE. The closing (the "CLOSING") of the transactions
contemplated hereby shall be held at the offices of counsel to Buyer, Morrison &
Foerster LLP, 2000 Pennsylvania Avenue, NW, Washington, D.C. 20006-1888 on the
second Business Day following the satisfaction or waiver of all of the
conditions specified in Sections 4.3, 4.4 and 4.5 or on such other date as may
be mutually agreed upon by the parties (the "CLOSING DATE").

         1.2.     SALE OF ASSETS.

         At the Closing, Seller shall sell, transfer, convey, assign and deliver
to the Subsidiary, free and clear of all liens, security interests, other
encumbrances, restrictions on transfer and adverse claims ("ENCUMBRANCES"), and
Buyer shall purchase from Seller, all of Seller's right, title and interest in
the assets, properties, goodwill and rights of Seller set forth on
SCHEDULE 1.2(a) (the "Assets").

                  (a) Without limiting the generality of the foregoing or the
description of "Assets" set forth on Schedule 1.2(a), the Assets shall include
the following:

                           (i) Seller's entire right, title and interest in and
         to all current and archived code, articles, reviews, ratings,
         commentary and other content, including all web site pages, used
         exclusively in connection with the Business, including media on which
         only such content is stored, and further including all inventory of
         such materials, whether in printed form or on film, microfilm,
         microfiche or other negative;

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                           (ii) all of the software and scripting, in all
         formats (including object and source formats), relating to or used
         exclusively in connection with the Business, including all web site
         design and operational software set forth on Schedule 1.2(a), and
         including with respect thereto: (1) all inventories of computer program
         code (in all media) for said software and scripting; (2) any related
         documentation and user materials; and (3) Seller's rights under all
         related warranties; the source and object code for the procurement
         management software used by Seller to conduct the Business;

                           (iii) the web sites and the domain names described in
         SCHEDULE 1.2(a)(iii);

                           (iv) the tangible personal property used to conduct
         the Business to the extent listed in SCHEDULE 1.2(a)(iv), together with
         all related documentation and user materials, and all related
         warranties;

                           (v) Seller's entire right, title and interest to the
         third-party software licensed by Seller used exclusively in connection
         with the Business, including any related documentation and user
         materials, and Seller's rights under all related warranties;

                           (vi) all of the technical data and know-how,
         including research, product plans, marketing materials, developments,
         inventions, discoveries, processes, formulas, algorithms, technology,
         designs, drawings, and business strategies, presently used exclusively
         in and material to, the Business;

                           (vii) all of the trademarks, service marks, and trade
         names (including registrations, licenses, and applications to register
         pertaining thereto) used to identify the Business and/or its goods or
         services (including any trademarks registered, or for which
         registration is applied, after the date hereof), as set forth on
         SCHEDULE 1.2(a)(vii) (the "TRADEMARKS");

                           (viii) all patents and copyrights (including
         registrations, licenses, and applications to register pertaining
         thereto), and all other intellectual property rights, trade secrets,
         and other proprietary information, processes, and formulas used
         exclusively in the Business;

                           (ix) all accounts receivable of Seller relating to
         the Business (the "ACCOUNTS RECEIVABLE") as specified in a schedule to
         be prepared by Seller in accordance with an accounting procedure to be
         agreed upon by Buyer and Seller and provided to Buyer by Seller two
         days prior to the Closing Date (the "ACCOUNTS RECEIVABLE SCHEDULE");

                           (x) all goodwill of the Business as a going concern;
         all goodwill associated with the Trademarks;

                           (xi) Seller's entire right, title and interest in, to
         and under all contracts, agreements, licenses, permits, arrangements,
         permissions and other commitments and

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         arrangements, oral or written, with any person or entity (including
         legal authorities) with respect solely to the Business, including,
         subject to the consent of the applicable government agency, all
         contracts with governmental bodies or agencies under which Seller
         provides services in connection with the Business; PROVIDED that Buyer
         acknowledges that certain government contracts, specified on
         SCHEDULE 1.2(a)(xi), require the prior consent of the other parties
         to the assignment of such contracts;

                           (xii) all rights of Seller under express or implied
         warranties from suppliers or contractors with respect to the Assets;

                           (xiii) all claims, causes of action, choses in
         action, rights of recovery and rights of set-off of any kind arising
         out of the Assets or the Business;

                           (xiv) all existing business and marketing records of
         the Business, including accounting and operating records, asset
         ledgers, inventory records, budgets, databases, customer lists,
         employment and consulting agreements, supplier lists, information and
         data respecting leased or owned equipment, files, books, correspondence
         and mailing lists, creative, promotional and advertising materials and
         brochures, and other business records; and

                           (xv) all media, including disks, tapes and CDs, and
         other tangible property necessary for the transfer of the Assets from
         Seller to Buyer pursuant to the terms and conditions of this Agreement.

         1.3. BILL OF SALE. The sale and delivery of the Assets shall be
effected by a Bill of Sale, Assignment and Assumption Agreement in the form of
EXHIBIT A attached hereto (the "BILL OF SALE") and such endorsements,
assignments, licenses, drafts, checks and other instruments of transfer and
conveyance, agreements, and documents in form described herein or reasonably
acceptable to Buyer; PROVIDED that the consent to the assignment of contracts
relating to the Business between Seller and the United States government shall
be accomplished by a separate agreement among Buyer, Seller and the United
States government (the "Novation").

         1.4.     ASSUMED LIABILITIES.

                  (a) At the Closing, Buyer shall assume:

                           (i) the trade accounts payable of the Seller relating
         to the Business that were incurred in the ordinary course of the
         Business and are set forth on SCHEDULE 1.4(a) (the "Assumed Liabilities
         Schedule") prepared by Seller in accordance with an accounting
         procedure to be agreed upon by Buyer and Seller and provided to Buyer
         by Seller two days prior to the Closing;

                           (ii) the duties and obligations required to be
         performed after the Closing under the contracts, leases and other
         agreements included in the Assets; and

                           (iii) the employment related payables of Seller to
         the extent specifically

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         related to the operation of the Business arising subsequent to the
         Closing and set forth on SCHEDULE 1.4(a).

                  (b) Seller shall, when due, satisfy all of its liabilities or
obligations, except for the liabilities listed on the Assumed Liabilities
Schedule.

         1.5. BASE PURCHASE PRICE. As consideration for the sale and transfer of
the Assets, Buyer shall pay or deliver to Seller at the Closing:

                  (a) $15 million in cash and

                  (b) 606,000 shares of Buyer's common stock ("BUYER COMMON
STOCK");

PROVIDED that the 606,000 shares of Buyer Common Stock delivered under in this
Section 1.5 shall be issued pursuant to the terms and restrictions contained in
Section 1.9; and PROVIDED FURTHER that all shares of Buyer Common Stock
delivered pursuant to this Section 1.5 and any other provision of this Agreement
shall be valued at $16.50165 per share, unless the terms of such other provision
specifically calculate the per share valuation of Buyer Common Stock on a
different basis.

         1.6. ADDITIONAL PURCHASE PRICE. Buyer shall make additional payments to
Seller as follows:

                  (a) On or before March 31 of 2000, 2001, 2002, 2003 and 2004
(each, a "REVENUE PAYMENT DATE") Buyer shall at its option either (i) issue to
Seller a number of shares of Buyer Common Stock or (ii) pay the cash equivalent
of the prior clause (i) determined as of such date (the "REVENUE PAYMENT")
determined by the following formula:

                           (__(X-Y)____) * 606,000
                           ($200,000,000)

where (X) means Cumulative Business Revenues and (Y) means Cumulative Previous
Business Revenues on which a Revenue Payment has been made.

         The Revenue Payment shall be payable on the first Revenue Payment Date
on which the Cumulative Business Revenues is equal to or exceeds $10,000,000.
Buyer shall not be obligated to issue more than 606,000 shares of Buyer Common
Stock.

                  (b) On or before March 31 of 2000, 2001, 2002, 2003 and 2004
(each, an "EBITDA PAYMENT DATE"), Buyer shall issue to Seller a number of shares
of Buyer Common Stock (the "EBITDA PAYMENT") determined by the following
formula:

                           (__(X-Y)____) * Potential EBITDA Shares
                           ($110,000,000)

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where (X) means Cumulative Business EBITDA and (Y) means Cumulative Previous
EBITDA on which an EBITDA payment has been made.

         The EBITDA Payment shall be payable on the first EBITDA Payment Date on
which the Cumulative EBITDA is equal to or exceeds $10,000,000. Buyer shall not
be obligated to issue more than the number of Potential EBITDA Shares to Seller.

                  (c) For purposes of this Agreement, terms used in subsections
(a) and (b) above shall be defined as follows:

                           (i) "CURRENT YEAR BUSINESS REVENUES" means revenues
         reflected on Buyer's financial statements for the calendar year
         immediately preceding the Revenue Payment Date which were derived by
         Buyer from the operation of the Business, determined in accordance with
         generally accepted accounting principles applied on a consistent basis,
         based upon audited financial statements of Buyer performed by its
         independent accounting firm.

                           (ii) "CUMULATIVE BUSINESS REVENUES" means the total
         of all Current Year Business Revenues for the calendar years ending
         prior to the Revenue Payment Date.

                           (iii) "CUMULATIVE PREVIOUS BUSINESS REVENUES" means
         the total of all Current Year Business Revenues for calendar years
         ending more than one year prior to a particular Revenue Payment Date.

                           (iv) "CURRENT YEAR BUSINESS EBITDA" means earnings
         before interest, taxes and depreciation reflected on Buyer's financial
         statements for the calendar year immediately preceding the EBITDA
         Payment Date which were derived by Buyer from the operation of the
         Business, determined in accordance with generally accepted accounting
         principles applied on a consistent basis, based upon audited financial
         statements of Buyer performed by its independent accounting firm,
         subject to the limitations of Section 1.6(c)(viii) below.

                           (v) "CUMULATIVE EBITDA" means the total of all
         Current Year EBITDA for the calendar years ending prior to the EBITDA
         Payment Date.

                           (vi) "CUMULATIVE PREVIOUS EBITDA" means the total of
         all Current Year EBITDA for calendar years ending more than one year
         prior to a particular EBITDA Payment Date.

                           (vii) "POTENTIAL EBITDA SHARES" means $10,000,000
         divided by the average of the closing sale price of Buyer Common Stock
         on the Nasdaq National Market on each of the five (5) trading days
         immediately preceding (but not including) the first EBITDA Payment Date
         on which Buyer is obligated to issue Buyer Common Stock to Seller with
         respect to an EBITDA Payment.

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                           (viii) For the purposes of determining Current Year
         Business EBITDA, Buyer shall not allocate to the Business any corporate
         financial overhead, accounting or legal expenses that are not incurred
         in the operation of the Business.

                           (ix) Buyer shall manage and operate the Business and
         the Assets as a separate business unit after the Closing, and shall
         maintain a financial reporting system that will separately account for
         the revenue and expenses of the Business and the Assets, through
         December 31, 2003 (the "Earn Out Period"). Moreover, neither Buyer
         (through operating divisions or units other than the Business) nor its
         subsidiaries or other entities contracted by it shall, during the Earn
         Out Period,(x) compete with the Business; (y) transfer personnel from
         the Business without Seller's consent, which shall not be unreasonably
         withheld; or (z) cause or permit assets of the Business to be sold or
         transferred without Seller's consent, which consent shall not be
         unreasonably withheld. For the purposes of calculating the Revenue
         Payment, Buyer shall not allocate to the Business expenses or costs
         that are not incurred in the operation of the Business.

         1.7. ALLOCATION. Within 90 days after the Closing Date, Buyer shall
prepare and finalize a schedule setting forth an allocation of the Purchase
Price among the Assets (the "ALLOCATION SCHEDULE"), subject to the approval of
Seller which shall not be unreasonably withheld. Each party agrees to report the
transactions contemplated hereby for federal income tax and all other tax
purposes (including for purposes of Section 1060 of the Internal Revenue Code of
1986, as amended (the "CODE")) in a manner consistent with the Allocation
Schedule, and in accordance with all applicable rules and regulations, and to
take no position inconsistent with the allocation set forth therein in any
administrative or judicial examination or other proceeding. Each of Buyer and
Seller shall timely file the appropriate forms in accordance with the
requirements of Section 1060 of the Code and this Section.

         1.8.     METHOD OF PAYMENT.

                  (a) Except as otherwise expressly provided herein, all cash
payments from one party to another under this Agreement shall be made by wire
transfer in United States dollars to an account designated in writing by the
party to receive such payment. With respect to all payments made pursuant to
this Section 1, the parties agree that such designation has been already been
provided in advance of the scheduled date of payment and need not be provided
two Business Days before the Closing Date.

                  (b) Buyer shall not be required to deliver or issue fractional
shares, and instead may deliver an equivalent cash amount in lieu of any
fractional share.

                  (c) Any payment or delivery hereunder due on a day which is
not a Business Day shall be postponed, without interest, until the next Business
Day.

                  (d) Buyer shall have no obligation to register under the
Securities Act of 1933, as amended (the "Securities Act"), any shares of Buyer
Common Stock delivered to Seller pursuant to this Agreement except as provided
in Section 6 herein.

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                  (e) Buyer shall be entitled to deduct and withhold from any
payment or delivery of Buyer Common Stock to Seller or Shareholders hereunder
such amount as Buyer is legally required to deduct and withhold with respect to
the making of such payment or delivery under the Code or any provision of state,
local or foreign tax laws.

         1.9.     REPURCHASE RIGHT; CANCELLATION RIGHT; ESCROW.

                  (a) With respect to 151,500 shares (the "Indemnity Shares") of
the Buyer Common Stock to be delivered to the Seller at the Closing pursuant to
Section 1.5(b):

                           (i) The Indemnity Shares shall be divided equally
         between and issued to each of Walter L. Mazan II, Robert Main and
         Ronald Linehan (each a "Shareholder"). The certificates representing
         the Indemnity Shares shall each be stamped or otherwise imprinted with
         a legend in the form set forth on EXHIBIT B attached hereto, which,
         inter alia, shall have the effect of prohibiting each of the
         Shareholders from offering to sell, contracting to sell or otherwise
         selling, disposing of, loaning, pledging or granting any rights with
         respect to any such shares of Buyer, any options or warrants to
         purchase any such shares of Buyer Common Stock, or any securities
         convertible into or exchangeable for such shares of Buyer Common Stock
         until up to the second anniversary of the Closing Date and subject to
         cancellation in whole or in part, subject to Section 1.9(a)(ii)(2), in
         order to satisfy Seller's obligations under Section 5.2(c).

                           (ii) Pursuant to the terms of this Agreement and
         Section 5.2(c), under certain circumstances Buyer may have a claim
         against the Indemnity Shares (a "CLAIM") from the period following the
         Closing Date until up to the second anniversary of the Closing Date.
         Subject to the provisions of Section 1.9(a)(ii)(4) and the procedures
         set forth in Section 5.2(c):

                                (1) From time to time, on or before the first
                                    anniversary of the Closing Date, Buyer
                                    may give a notice (the "NOTICE") to
                                    Seller specifying in reasonable detail
                                    the nature and dollar amount (to the
                                    extent ascertainable at the time) of any
                                    Claim it may have under this Agreement
                                    and Section 5.2(c). Buyer may make more
                                    than one Claim with respect to any
                                    underlying state of facts. If Seller
                                    gives a notice to Buyer disputing any
                                    Claim (a "COUNTER NOTICE") within 30 days
                                    following receipt by Seller of Buyer's
                                    Notice, both Buyer and Seller agree to
                                    comply fully with the provisions set
                                    forth under Section 1.9(a)(ii)(4) below.
                                    If Buyer does not receive a Counter
                                    Notice within the period ending 30 days
                                    after the receipt by Seller of such
                                    Notice, then the dollar amount claimed by
                                    Buyer as set forth in the Notice shall be
                                    deemed established for purposes of this
                                    Agreement and Section 5.2(c), and Buyer
                                    has the immediately exerciseable right to
                                    repurchase up to the number of

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                                    Indemnity Shares (the "CLAIMED SHARES")
                                    equal to the quotient achieved by
                                    dividing the dollar value of such Claim
                                    by $16.50165. At the end of such 30-day
                                    period, Seller shall cause Shareholders
                                    to deliver to Buyer's transfer agent the
                                    certificates representing the Indemnity
                                    Shares, and Buyer shall instruct its
                                    transfer agent to cancel that portion of
                                    Claimed Shares represented by the
                                    certificate and to reissue three
                                    certificates representing the balance of
                                    uncancelled Indemnity Shares, each
                                    bearing a legend in the form set forth on
                                    Exhibit B, in the names of the
                                    Shareholders.

                                (2) Immediately after the first anniversary
                                    of the Closing Date, Seller shall cause
                                    Shareholders to deliver to Buyer's
                                    transfer agent the certificates
                                    representing the remaining Indemnity
                                    Shares, and Buyer shall instruct its
                                    transfer agent to cancel such
                                    certificates and reissue (A) three
                                    certificates in equal amounts
                                    representing in the aggregate 15,150
                                    shares of Buyer Common Stock, each in the
                                    name of a Shareholder and each stamped or
                                    otherwise printed with a legend in the
                                    form set forth on Exhibit B; and (B)
                                    three certificates in equal amounts
                                    representing in the aggregate the balance
                                    of the Indemnity Shares held by
                                    Shareholder on the first anniversary of
                                    the Closing Date, each to be issued in
                                    the name of a Shareholder and without
                                    bearing restrictive legends and not
                                    subject to Claims presented on or before
                                    such date.

                                (3) From time to time, on or before the
                                    second anniversary of the Closing Date,
                                    Buyer may give a Notice to Seller
                                    specifying in reasonable detail the
                                    nature and dollar amount (to the extent
                                    ascertainable at the time) of any Claim
                                    it may have arising under the matter
                                    described in SCHEDULE 5.2(c). If Seller
                                    gives a Counter Notice to Buyer, within
                                    30 days following receipt by Seller of
                                    Buyer's Notice, both Buyer and Seller
                                    agree to comply fully with the provisions
                                    set forth under Section 1.9(a)(ii)(4)
                                    below. If Buyer does not receive a
                                    Counter Notice within the period ending
                                    30 days after the receipt by Seller of
                                    Buyer's Notice, then the dollar amount
                                    claimed by Buyer as set forth in the
                                    Notice shall be deemed established for
                                    purposes of this Agreement and Section
                                    5.2(c), and Buyer has the immediately
                                    exerciseable right to repurchase up to
                                    15,150 Indemnity Shares. At the end of
                                    such 30-day period, Seller shall cause
                                    Shareholders to deliver to Buyer's
                                    transfer agent the certificates

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                                    representing the Indemnity Shares, and
                                    Buyer shall instruct its transfer agent
                                    to cancel that portion of Claimed Shares
                                    represented by the certificate and to
                                    reissue three certificates, each bearing
                                    a legend in the form set forth on Exhibit
                                    B, in the names of the Shareholders.

                                (4) If a Counter Notice is given with respect
                                    to a Claim, Seller and Buyer may
                                    apportion the Indemnity Shares only in
                                    accordance with (A) joint written
                                    instructions of Buyer and the Seller or
                                    (B) a final non-appealable order from
                                    binding arbitration (an "ORDER"). Both
                                    Buyer and Seller shall act on such Order
                                    without further question.

                  (b) With respect to 363,600 shares of the Buyer Common Stock
(the "RETENTION HOLDBACK") to be delivered pursuant to Sections 1.5(b):

                           (i) The Retention Holdback shall be divided equally
         between and issued to each of the Shareholders. The certificates
         representing the Retention Holdback shall each be stamped or otherwise
         imprinted with a legend in the form set forth on EXHIBIT C attached
         hereto.

                           (ii) If, on or prior to the first anniversary of the
         Closing Date, either or both of Ronald Linehan or Robert Main are no
         longer employed by Buyer for any reason except death or Buyer's
         termination of employment without Cause (as defined in Section 7.9),
         Buyer shall, subject to the provisions of Section 1.9(b)(iv), on or
         after the first anniversary of the Closing Date, notify Seller in
         writing (the "RETENTION CLAIM") that, within 30 days from the date of
         the Retention Claim, Buyer shall repurchase the Retention Holdback and
         instruct its transfer agent to cancel all of the certificates held by
         Seller that represent the Retention Holdback. If Seller does not
         dispute in a written notice given to Buyer (the "COUNTER RETENTION
         NOTICE") within 30 days from the date of the Retention Notice, Buyer
         may at any time thereafter repurchase the Retention Holdback at a price
         equal to the greater of (1) $0.001 per share or (2) Seller's obligation
         incurred in protecting the price of such Buyer Common Stock, if any,
         and instruct its transfer agent to cancel all of the certificates held
         by Seller that represent the Retention Holdback. In the event Seller
         should receive any payments from third parties as a result of any
         agreement protecting the price of such Buyer Common Stock repurchased
         by Buyer, Seller shall promptly remit the premiums paid to Buyer.

                           (iii) If, on or prior to the first anniversary of the
         Closing Date, either or both of Ronald Linehan or Robert Main remain
         employed by Buyer or are no longer employed by Buyer due to death or
         Buyer's termination of employment without Cause (as defined in
         Section 7.9), Buyer shall provide written instruction to its transfer
         agent to cancel the certificates representing the Retention Holdback
         and issue to the Shareholders replacement certificates that no longer
         bear restrictive legends.

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                           (iv) If a Counter Notice is given with respect to a
         Retention Claim, only in accordance with (i) joint written instructions
         of Buyer and the Seller, or (ii) a final non-appealable Order, may the
         restrictions from transfer be lifted from the certificates. Both Buyer
         and Seller shall act on such Order and legal opinion without further
         question.

                  (c) Subject to the terms of Section 1.9(c)(iv) below, with
respect to 90,900 shares of the Buyer Common Stock (the "GOVERNMENT CONTRACTS
HOLDBACK") to be delivered pursuant to Section 1.5(b):

                           (i) The Government Contracts Holdback shall be
         divided equally between and issued to each of the Shareholders and
         delivered to Morrison & Foerster LLP (the "ESCROW AGENt"), 2000
         Pennsylvania Avenue, NW, Washington, D.C. 20006-1888. The certificates
         representing the Government Contracts Holdback shall each be stamped or
         otherwise imprinted with a legend in the form set forth on Exhibit C
         attached hereto. The parties agree that the Government Contracts
         Holdback shall be held in escrow, pursuant to reasonable terms to be
         established by Escrow Agent, until the earlier of (1) Seller's
         obtaining the consent of the parties listed on Schedule 1.2(a)(xi) to
         the assignment to Buyer of the agreements between Seller and such
         parties, (2) Seller's securing alternate agreements that replace those
         listed on Schedule 1.2(a)(xi) by providing the same services to the
         same governmental agencies as those provided by the agreements listed
         on Schedule 1.2(a)(xi) or (3) 120 days after the Closing Date.

                           (ii) If, before 120 days following the Closing Date,
         the events described in either Sections 1.9(c)(i)(1) or 1.9(c)(i)(2)
         occur, Buyer shall instruct Escrow Agent to deliver the Government
         Contracts Holdback to Seller. If the events described in either
         Sections 1.9(c)(i)(1) or 1.9(c)(i)(2) do not occur before 120 days
         following the Closing Date, Buyer shall promptly give to Seller and to
         Escrow Agent a notice (the "HOLDBACK NOTICE") that Buyer intents to
         instruct Escrow Agent to deliver the Government Contracts Holdback to
         Buyer. If Seller gives a notice to Buyer disputing the Holdback Notice,
         (a "COUNTER HOLDBACK NOTICE") within 30 days following receipt by Buyer
         of such Counter Notice, both Buyer and Seller agree to comply fully
         with the provisions set forth under Section 1.9(c)(iii) below. If Buyer
         does not receive a Counter Notice within the period ending 30 days
         after the receipt by Buyer of such Counter Notice, then the dollar
         amount claimed by Buyer as set forth in the Notice shall be deemed
         established for purposes of this Agreement, and Buyer has the
         immediately exerciseable right to instruct Escrow Agent to deliver the
         Government Contracts Holdback to Buyer equal to the quotient achieved
         by dividing the dollar value of such Claim by $16.50165.

                           (iii) If a Counter Holdback Notice is given with
         respect to a Claim, Buyer may instruct its transfer agent to deliver
         the Government Contracts Holdback to Buyer, only in accordance with
         (A) joint written instructions of Buyer and the Seller or (B) an
         Order. Any such Order shall be accompanied by a legal opinion of
         counsel for the presenting party satisfactory to the other party to
         the effect that the Order is final and non-

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         appealable. Both Buyer and Seller shall act on such Order and legal
         opinion without further question.

         1.10. ACCOUNTS RECEIVABLES. Any amounts paid to Seller with respect to
any Account Receivable after the Closing Date will be delivered by Buyer to
Seller as soon as reasonably practicable. Any revenues or compensation received
in connection with the Business that are paid to Seller prior to the Closing
Date for services to be provided after the Closing Date will be held until the
Closing Date and then delivered by Seller to Buyer.

         1.11. EXCLUDED ASSETS. The following items are not included in the
Assets or the Business (the "EXCLUDED ASSETS"): (i) all assets, tangible or
intangible, used by Seller in its publishing business; (ii) all trademarks,
trade names and intellectual property used by Seller in its business operations
for both the business and the publishing business, except to the extent
specifically listed in Schedules 1.2(a), 1.2(a)(iii), 1.2(a)(iv), 1.2(a)(vii)
and the Accounts Receivables Schedule.

                                   SECTION 2

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller represents and warrants to Buyer as of the date hereof and as of
the Closing Date as follows, except for disclosure contained on the Schedules
hereto numbered to correspond to the sections below (the "DISCLOSURE
SCHEDULES"):

         2.1. DUE ORGANIZATION, POWER AND AUTHORITY. Seller is a corporation
duly and validly incorporated under the laws of the Commonwealth of Virginia and
is qualified to conduct business in every jurisdiction where such qualification
is required. Seller has the full corporate power and authority to conduct its
business as presently conducted and to enter into this Agreement and the other
Transaction Documents and to consummate the transactions contemplated herein and
therein.

         2.2. POWER; AUTHORIZATION AND ENFORCEABILITY. All action on the part of
Seller necessary for the authorization, execution, delivery and performance of
this Agreement and the other Transaction Documents to which it is a party has
been taken and remains in full force and effect. Seller has all requisite power
and capacity to execute and deliver this Agreement and to carry out and perform
its obligations under the terms of this Agreement and each of the Transaction
Documents to which it is a party. All action on the part of Seller necessary for
the authorization, execution, delivery and performance of this Agreement and the
other Transaction Documents to which it is a party has been taken and remains in
full force and effect. Delivery of the Bill of Sale and other instruments of
transfer contemplated by Section 1.3 will transfer to Buyer good and marketable
title to all of the Assets, free and clear of any Encumbrance. This Agreement
constitutes, and the other Transaction Documents will each constitute, the valid
and binding obligations of Seller, enforceable in accordance with its terms,
except as such

                                       11

<PAGE>

enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, arrangement, moratorium or other similar laws and by general
principles of equity.

         2.3. NO CONFLICT. Seller is not in violation in any material respect of
any term or provision of any agreement to which it is a party. The execution,
delivery and performance of this Agreement and each of the other Transaction
Documents by Seller have not resulted and will not result in, nor will
consummation of the transactions contemplated hereby or thereby result in, any
violation of or conflict with, or constitute a default under, any agreement, or
result in the creation of any Encumbrance upon any of the Assets or any of the
other assets of Seller or the acceleration of maturity of or other change in any
obligation of Seller or right of any third-party; and there exists no such
violation, conflict or default that does or could reasonably be expected to
materially adversely affect the condition or prospects of the Business or the
Assets or the ability of Seller to consummate its obligations hereunder and
under the Transaction Documents.

         2.4. GOVERNMENTAL CONSENTS, ETC. To the best of Seller's knowledge, no
consent, approval or authorization of or designation, declaration, or filing
with any governmental, regulatory or administrative body, agency or authority,
or any court or judicial authority (each, an "AUTHORITY") on the part of Seller
is required in connection with the valid execution and delivery of this
Agreement or any other Transaction Document or the consummation of the
transactions contemplated hereby or thereby. The execution, delivery, and
performance of this Agreement and each Transaction Document, and the
consummation of the transactions contemplated hereby or thereby, do not require
consent, approval, or authorization under any agreement to which Seller is a
party or by which the Assets or Business is bound or affected.

         2.5.     FINANCIAL STATEMENTS AND CONDITION.

                  (a) Seller has delivered to Buyer financial statements for the
periods January 1, 1997 through December 31, 1997, January 1, 1998 through
December 31, 1998 (the "Financial Statements"), and for the period January 1,
1999 through June 30, 1999 (the "Interim Statements"). The Financial Statements
are audited and prepared in accordance with United States generally accepted
accounting principles consistently applied throughout the period covered by the
Financial Statements. Seller's independent auditors have provided a review
report covering the Interim Statements. The Financial Statements and the Interim
Statements constitute true and complete financial statements for the periods
specified and are in accordance with the books and records of the Seller. Such
statements present fairly the position of the Business as of the respective
dates thereof and the results of operations and cash flows of the Business for
the periods covered thereby.

                  (b) Seller has no direct or indirect indebtedness,
liabilities, claims, losses, damages, deficiencies, obligations or
responsibilities, liquidated or unliquidated, accrued, absolute, contingent, or
otherwise ("LIABILITIES") which in any way encumber the Assets and no
Liabilities otherwise exist that encumber the Assets.

                  (c) Since June 30, 1999, Seller has not:

                                       12

<PAGE>

                           (i) suffered any change, event or condition that, in
         any case or in the aggregate, has had or could reasonably be expected
         to have a material adverse effect upon the Business or the Assets or
         Seller's ability to consummate the transactions contemplated herein and
         in the other Transaction Documents;

                           (ii) entered into any material transaction, contract
         or commitment relating to the Business in any manner; and

                           (iii) incurred or paid any liability or obligation
         not in the ordinary course of business, consistent with past custom and
         practice including as to quantity and frequency with respect to the
         Business.

         2.6. TAX MATTERS. Seller has, within the times and in the manner
prescribed by law, filed all required tax returns, including sales and use tax
returns, has paid or provided for all taxes, including sales and use tax owed by
Seller, with respect to the Business (whether or not shown on any tax return to
be due and owing by him), has paid or provided for all deficiencies or other
assessments of taxes, interest or penalties owed by it, and, to the best of
Seller's Knowledge (as defined), all such tax returns were correct and complete.
No taxing authority has asserted, or, to the best of Seller's Knowledge, will
successfully assert, any claim for the assessment of any additional taxes of any
nature with respect to any periods covered by any such tax returns; and all
taxes or other charges required to be withheld or collected by Seller, with
respect to the Business, have been duly withheld or collected and, to the extent
required, have been paid to the proper taxing Authority or properly segregated
or deposited as required by law.

         2.7. COMPLIANCE AND LAWS. Seller has in all respects complied with, and
is now in all respects in compliance with, all laws, rules, regulations, orders,
judgments and decrees of all Authorities applicable to the Business with which
failure to comply would result in a Material Adverse Effect (as defined) on
Seller, and the Business is otherwise in compliance with all such laws,
regulations, orders, judgments and decrees. Seller possesses each franchise,
license, permit, authorization, certification, consent, variance, permission,
order or approval of or from any Authority, and has filed all filings, notices
or recordings with any Authority (collectively, "LICENSES") with which the
failure to comply would result in a Material Adverse Effect on the Seller and is
now, and has at all times in the past been, in compliance with each thereof.
Each such License is identified on SCHEDULE 2.7. No proceeding or other action
is pending or, to the best of Seller's Knowledge, threatened, to revoke, amend,
or limit any License, and Seller has no basis to believe that any such
proceeding or action would result from the consummation of the transactions
contemplated hereby or by the other Transaction Documents, or that any such
License would not be renewed in the ordinary course.

         2.8. LITIGATION. There is no pending or, to the best of Seller's
Knowledge, threatened adverse claim, dispute, governmental investigation, suit,
action, arbitration, legal, administrative or other proceeding of any nature,
domestic or foreign, criminal or civil, at law or in equity, by or against or
otherwise affecting Seller, the Business or the Assets.

         2.9. TANGIBLE PROPERTY. Seller has good and marketable title to each
item of tangible personal property that is an Asset, free and clear of all
Encumbrances, and each such item of

                                       13

<PAGE>

tangible personal property is in good operating condition and repair, useable
in the ordinary course of business. SCHEDULE 1.2(a)(iv) contains a complete
and accurate list setting forth a description of each item of tangible
property that is an Asset.

         2.10.    AGREEMENTS.

                  (a) SCHEDULE 2.10(a) sets forth a true and complete list of
all Material agreements, written or oral, express or implied, including all
commitments, guarantees of indebtedness and other instruments, binding Seller
with respect to the Business or the Assets or that otherwise bind or affect the
Business or Assets, and all powers of attorney. True and complete copies of each
such written agreement have been delivered to Buyer.

                  (b) With respect to such agreements:

                           (i) Each such agreement is the valid and binding
         obligation of the other contracting party, enforceable in accordance
         with its terms against the other contracting party, except as such
         enforceability may be limited by applicable bankruptcy, insolvency,
         reorganization, arrangement, moratorium or other similar laws and by
         general principles of equity, and is in full force and effect;

                           (ii) Seller has fulfilled all material obligations
         required to have been performed by him prior to the Closing Date, and
         there is no reason to believe that the other contracting party will not
         be able to fulfill all of its or its obligations when due in respect
         thereof; and

                           (iii) to the best of Seller's Knowledge, no other
         contracting party to any such agreement is in breach thereof, and there
         are not, nor have there been in the twelve (12) month period prior to
         the date hereof, any material disputes between Seller and any other
         contracting party.

                  (c) Seller is not a party to, nor is Seller otherwise bound
by, any agreement or commitment that (i) restricts the conduct of the Business
anywhere in the world; (ii) contains any unusual or burdensome provisions that
could reasonably be expected to have an adverse effect upon the condition
(financial or otherwise) of the Business or the Assets; or (iii) grants
exclusive rights to sell advertising on the Web Sites or any other exclusive
rights.

                  (d) All representations and warranties that have been provided
by Seller and which are contained in any agreement with any federal, state or
local governmental authority listed on Schedule 2.10(a) are true and complete.

         2.11.    EMPLOYEES AND CONSULTANTS.

                  (a) SCHEDULE 2.11(a) is a true and complete list of each
employee of Seller and each consultant with whom Seller has done business within
twelve months prior to the date hereof involving the Business. The schedule sets
forth for each employee the current rate of compensation for such employee and
the employee's hire date.

                                       14

<PAGE>

                  (b) Seller has provided to Buyer true and complete copies of
all employee benefits plans and other related materials of Seller.

                  (c) Schedule 2.11(c) lists (i) all "employee benefit plans"
within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), (ii) all employment agreements, including,
but not limited to, any individual benefit arrangement, policy or practice with
respect to any current or former employee or director of Seller or of any trade
or business, whether or not incorporated, which would be treated as a single
employer with Seller under Section 4001 of ERISA or Section 414(b), (c), (m) or
(o) of the Internal Revenue Code of 1986, as amended (the "CODE") (each such
trade or business, a "MEMBER OF THE CONTROLLED GROUP"), and (iii) all other
employee benefit, bonus or other incentive compensation, stock option, stock
purchase, stock appreciation, severance pay, lay-off or reduction in force,
change in control, sick pay, vacation pay, salary continuation, retainer, leave
of absence, educational assistance, service award, employee discount, fringe
benefit plans, arrangements, policies or practices, whether legally binding or
not, which Seller or any Member of the Controlled Group maintains, to which any
of them contributes, or for which any of them has any obligation or liability
(collectively, the "EMPLOYEE PLANS" and each an "EMPLOYEE PLAN").

                  (d) None of the Employee Plans is a plan described in Section
3(35) of ERISA or a plan subject to the minimum funding standards set forth in
Section 302 of ERISA and Section 412 of the Code (a "DEFINED BENEFIT PLAN"), and
neither Seller nor any Member of the Controlled Group has ever sponsored,
maintained or contributed to, or ever been obligated to contribute to, a Defined
Benefit Plan.

                  (e) None of the Employee Plans is a plan described in Section
3(37) of ERISA (a "MULTIEMPLOYER PLAN," and neither Seller nor any Member of the
Controlled Group has ever contributed to, or ever been obligated to contribute
to, a Multiemployer Plan.

                  (f) Seller does not maintain or contribute to any plan that
provides health benefits to an employee after the employee's termination of
employment or retirement except as required under Section 4980B of the Code and
Sections 601 through 608 of ERISA.

                  (g) Each Employee Plan which is an "employee benefit plan," as
defined in Section 3(3) of ERISA, complies by its terms and in operation with
the requirements provided by any and all statutes, orders or governmental rules
and regulations currently in effect and applicable to the Employee Plan,
including but not limited to ERISA and the Code.

                  (h) All reports, forms and other documents required to be
filed with any government entity or furnished to employees, former employees or
beneficiaries with respect to any Employee Plan (including without limitation,
summary plan descriptions, Forms 5500 and summary annual reports) have been
timely filed and furnished and are accurate.

                  (i) Each of the Employee Plans that is intended to qualify
under Section 401(a) of the Code has been determined by the Internal Revenue
Service so to qualify after January 1, 1989, and each trust maintained pursuant
thereto has been determined by the Internal Revenue Service to be exempt from
taxation under Section 501 of the Code. Nothing has occurred since

                                       15

<PAGE>

the date of the Internal Revenue Service's favorable determination letter
that could adversely affect the qualification of the Employee Plan and its
related trust. Seller and each Member of the Controlled Group have timely
amended and operated each of the Employee Plans to comply with the Small
Business and Job Protection Act of 1996 and subsequent legislation enacted
through the date hereof, and Section 501 of the Code.

                  (j) All contributions for all periods ending prior to the
Closing Date (including periods from the first day of the current plan year to
the Closing Date) have been made [or will have been made prior to the Closing
Date] by Seller or by a Member of the Controlled Group.

                  (k) All insurance premiums have been paid in full, subject
only to normal retrospective adjustments in the ordinary course, with regard to
the Employee Plans for plan years ending on or before the Closing Date.

                  (l) With respect to each Employee Plan:

                           (i) no prohibited transactions (as defined in Section
         406 or 407 of ERISA or Section 4975 of the Code) have occurred for
         which a statutory exemption is not available;

                           (ii) no action or claims (other than routine claims
         for benefits made in the ordinary course of plan administration for
         which plan administrative review procedures have not been exhausted)
         are pending or threatened or imminent against or with respect to the
         Employee Plan, any employer who is participating (or who has
         participated) in any Employee Plan or any fiduciary (as defined in
         Section 3(21) of ERISA), of the Employee Plan;

                           (iii) neither Seller, nor any fiduciary has any
         Knowledge of any facts that could give rise to any such action or
         claim; and

                           (iv) each Employee Plan provides that it may be
         amended or terminated at any time and, except for benefits protected
         under Section 411(d) of the Code, all benefits payable to current,
         terminated employees or any beneficiary may be amended or terminated by
         Seller at any time without liability.

                  (m) Neither Seller nor any Member of the Controlled Group has
any liability or is threatened with any liability (whether joint or several)
(i) for any excise tax imposed by Sections 4971, 4975, 4976, 4977 or 4979 of
the Code, or (ii) to a fine under Section 502 of ERISA.

                  (n) All of the Employee Plans, to the extent applicable, are
in compliance with the continuation of group health coverage provisions
contained in Section 4980B of the Code and Sections 601 through 608 of ERISA.

                  (o) True, correct and complete copies of all documents
creating or evidencing any Employee Plan have been delivered to Buyer, and true,
correct and complete copies of all

                                       16

<PAGE>

reports, forms and other documents required to be filed with any governmental
entity or furnished to employees, former employees or beneficiaries
(including, without limitation, summary plan descriptions, Forms 5500 and
summary annual reports for all plans subject to ERISA, but excluding
individual account statements and tax forms) have been delivered to Buyer.
There are no negotiations, demands or proposals which are pending or have
been made which concern matters now covered, or that would be covered, by the
type of agreements required to be listed in Schedule 2.11(c).

                  (p) All expenses and liabilities relating to all of the
Employee Plans have been, and will on the Closing Date be fully and properly
accrued on Seller's books and records and disclosed in accordance with generally
accepted accounting principles and in plan financial statements.

                  (q) To the best knowledge of Seller, Seller is not engaged,
and has never been engaged, in any unfair labor practice of any nature. There
has never been any slowdown, work stoppage, labor dispute or union organizing
activity, or any similar activity or dispute, affecting Seller or any of its
employees. There is not now pending, and to the best knowledge of Seller no
person has threatened to commence, any such slowdown, work stoppage, labor
dispute or union organizing activity or any similar activity or dispute, nor has
any event occurred, nor does any condition or circumstance exist, that likely
would directly or indirectly give rise to or provide a basis for the
commencement of any such slowdown, work stoppage, labor dispute or union
organizing activity or similar activity or dispute.

         2.12. BROKERS OR FINDERS. Seller has not incurred, nor will incur,
directly or indirectly, any liability, for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this Agreement or any
transaction contemplated hereby. Seller shall indemnify and hold Buyer harmless
with respect to any claim by any broker, agent, or finder claiming to have acted
on behalf of Seller, respecting the subject matter hereof.

         2.13.    INTELLECTUAL PROPERTY.

                  (a) Seller owns, Buyer shall receive at Closing, and Seller's
intellectual property includes, all trademarks, service marks, trade names, and
copyrights (including registrations, licenses, and applications pertaining
thereto) and all other intellectual property rights, software (in object and
source code formats), trade secrets, and other proprietary information,
processes, and formulas used in the Business and set forth on Schedule 1.2(a).
At the date hereof, Seller has no registered trademarks, service marks, trade
names or copyrights. Buyer acknowledges that the Assets do not include
intellectual property used by Seller in its other businesses, including, but not
limited to the name "Electric Press" and the domain registration
www.elpress.com.

                  (b) Each employee and consultant of Seller has executed a
proprietary rights and information agreement in a form provided to Buyer.

                  (c) No intellectual property right or other claims have been
asserted by any person or entity to the use of any Asset and there is no valid
basis for any such claim. The use of any

                                       17

<PAGE>

Asset by Seller, and the operation of the Business as currently conducted,
does not infringe on the intellectual property or other rights of any person
arising out of the laws of the United States.

                  (d) Seller has good and marketable title to each item of
intellectual property used in the Business as more fully described in
Sections 1.2(a)(v), 1.2(a)(vi), 1.2(a)(vii) and 1.2(a)(viii), free and clear
of all Encumbrances. Seller is the sole and rightful owner of all right,
title and interest in and to each of such items of intellectual property, and
has the unrestricted right to market, license and otherwise exploit each
intangible Asset.

         2.14.    THIRD-PARTY COMPONENTS, RIGHTS, ETC.

                  (a) To the best of Seller's knowledge, Seller has validly and
effectively obtained the right and license to use the third-party programs and
other intellectual property included in the Assets and used to operate the
Business as it is currently operated or has been conducted in the last year,
including intellectual property rights and licenses as provided for under the
agreements set forth in SCHEDULE 1.2(a), except for any open source software and
derivatives thereof developed by Seller which Seller has and at all times has
had the right to use in the Business without obtaining a license and which Buyer
similarly will be entitled to so use following the Closing Date. Seller has the
right to assign and transfer to Buyer the foregoing rights and licenses, and, to
the best of Seller's Knowledge, the Assets contain no other programming or
materials in which any third-party may claim superior, joint, or common
ownership, including any right or license other than licenses granted in the
ordinary course of business. The Assets do not contain derivative works of any
programming or materials not owned in their entirety by Seller and included in
the Assets.

                  (b) Seller has not granted, transferred or assigned any of
Seller's right, title or interest in or to any Asset to any person or entity
other than in the ordinary course of business. There are no contracts,
agreements, licenses, and other commitments and arrangements in effect with
respect to the marketing, distribution, licensing or promotion of any Asset by
any independent salesperson, distributor, sublicensor or other remarketer or
sales organization, except as set forth on SCHEDULE 1.2(a).

         2.15.    GENERAL.

                  (a) No representation or warranty made by Seller herein or in
any other Transaction Document, or any schedule or exhibit attached hereto or
thereto, contains any material misstatement of any fact or omits to state
anything necessary to make any material statement made herein or therein not
misleading. The information to be provided to Buyer by Seller or any of its
representatives for inclusion in the Registration Statement will not contain any
material misstatement of any fact or omit to state anything necessary to make
any material fact contained therein not misleading.

                  (b) Other than the facts or other information disclosed in the
Disclosure Schedules, there is no fact within the Knowledge of Seller (other
than publicly known facts relating exclusively to political or economic matters
of general applicability that will adversely affect all comparable businesses)
that:

                                       18

<PAGE>

                           (i) may have a Material Adverse Effect on the
         Business or its condition, assets, liabilities, operations, financial
         performance, net income or prospects, or the ability of Seller to
         comply with or perform any covenant or obligation under this Agreement
         or any of the other Transaction Documents; or

                           (ii) may have the effect of preventing, delaying,
         making illegal or otherwise interfering with any of the transactions
         contemplated hereby or by any of the other Transaction Documents.

         2.16.    INVESTMENT REPRESENTATIONS.

                  (a) Seller is an "accredited investor," as defined in
Rule 501(a) under the Securities Act. Seller, by reason of its business and
financial experience has such knowledge, sophistication and experience in
financial and business matters and in making investment decisions of this
type that it is capable of (i) evaluating the merits and risks of an
investment in Buyer Common Stock and making an informed investment decision,
(ii) protecting its own interest and (iii) bearing the economic risk of such
investment.

                  (b) Seller is acquiring the Buyer Common Stock to be issued
pursuant to Section 1.5(b) and 1.6 for investment for Seller's own account, not
as a nominee or agent and not with the view to, or any intention of, a resale or
distribution thereof, in whole or in part, or the grant of any participation
therein, except distributions to its shareholders pro rata, from time to time.
Seller understands that such shares have not been, and will not be, registered
under the Securities Act or state securities laws. Seller will comply with the
Securities Act in connection with any offer, sale, pledge, transfer or other
disposition of such shares.

                                   SECTION 3

                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller as of the date hereof and as of
the Closing Date as follows:

         3.1. REQUISITE POWER. Buyer has all requisite corporate power to
execute and deliver this Agreement and to carry out and perform its obligations
under the terms of this Agreement and the other Transaction Documents to which
it is a party.

         3.2. AUTHORIZATION. All action on the part of Buyer necessary for the
authorization, execution, delivery and performance of this Agreement and the
other Transaction Documents to which it is a party has been taken and remains in
full force and effect. This Agreement constitutes, and the other Transaction
Documents to which Buyer is a party will each constitute, the valid and binding
obligation of Buyer enforceable against Buyer in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, arrangement, moratorium or other similar laws and by
general principles of equity.

                                       19

<PAGE>

         3.3. NO CONFLICT. The execution, delivery, and performance of this
Agreement and any of the other Transaction Documents to which it is a party by
Buyer has not resulted and will not result in, nor will consummation of the
transactions contemplated hereby or thereby result in, any material violation
of, or conflict with, or constitute a default under, any of its charter
documents or material agreements; and there exists no such violation or default
that does or could materially and adversely affect the ability of Buyer to
consummate its obligations hereunder.

         3.4. GOVERNMENTAL CONSENTS, ETC. To the best of Buyer's knowledge, no
consent, approval or authorization of or designation, declaration, or filing
with any Authority on the part of Buyer is required in connection with the valid
execution and delivery of this Agreement or any Transaction Document to which
Buyer is a party or the consummation of the transactions contemplated thereby or
thereby.

         3.5. BROKERS OR FINDERS. Buyer has not incurred, and will not incur,
directly or indirectly, any liability for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this Agreement or any
transaction contemplated hereby. Buyer shall indemnify and hold Seller harmless
with respect to any claim by any broker, agent or finder claiming to have acted
on behalf of Buyer respecting the subject matter hereof.

         3.6. BUYER'S COMMON STOCK. The issuance and delivery by Buyer of shares
of Buyer's Common Stock in connection with the Base Purchase Price and the
Additional Purchase Price will be, at the Closing, or at the Revenue Payment
Date, as applicable, duly and validly authorized by all necessary corporate
action on the part of Buyer. The shares of Buyer's Common Stock to be issued
will, when issued and delivered to Seller in accordance with this Agreement, be
validly issued, fully paid and non-assessable, and free and clear of all liens,
claims and Encumbrances.

         3.7.     GENERAL.

                  (a) No representation or warranty made by Buyer herein or in
any other Transaction Document contains any material misstatement of any fact or
omits to state anything necessary to make any material statement made herein or
therein not misleading.

                  (b) There is no fact within the Knowledge of Buyer (other than
publicly known facts relating exclusively to political or economic matters of
general applicability that will adversely affect all comparable businesses)
that:

                           (i) may have a material adverse effect on the ability
         of Buyer to comply with or perform any covenant or obligation under
         this Agreement or any of the other Transaction Documents; or

                           (ii) may have the effect of preventing, delaying,
         making illegal or otherwise interfering with any of the transactions
         contemplated hereby or by any of the other Transaction Documents.

                                       20

<PAGE>

                                    SECTION 4

                CLOSING CONDITIONS/CLOSING DOCUMENTS/TERMINATION

         4.1. SELLER DELIVERIES. At the Closing, Seller shall execute and
deliver to Buyer the following documents:

                  (a) a noncompetition agreement (the "NONCOMPETITION
AGREEMENT") in the form of EXHIBIT D with Seller;

                  (b) the Bill of Sale, and such other instruments of assignment
as Buyer and its counsel reasonably request to evidence or effect the sale,
transfer and conveyance and assignment of the Assets to the Subsidiary;

                  (c) a certificate, signed by the chief executive officer of
Seller and dated as of the Closing Date, to the effect that (i) all of the
representations and warranties of Seller in this Agreement are true and correct
as of the Closing Date, as if made on the Closing Date; and (ii) Seller has
fully performed each covenant required to be performed prior to the Closing
Date;

                  (d) a certificate, dated the Closing Date, of an officer of
Seller attaching resolutions of the Board of Directors of Seller in connection
with the authorization and execution, delivery and performance by Buyer of this
Agreement and the other Transaction Documents to which Buyer is a party,
certified as being in full force and effect as of the Closing Date;

                  (e) disks, tapes and/or CDs containing the intangible Assets
set forth in Section 1.2 and SCHEDULE 1.2(a); all records and other materials
and documentation set forth in Section 1.2 and SCHEDULE 1.2(a);

                  (f) all passwords and communications information used solely
to operate the Business;

                  (g) all other records of the Business not previously provided
to Buyer as reasonably requested by Buyer;

                  (h) an opinion of Seller's counsel in form and substance
satisfactory to Buyer and its counsel;

                  (i) all consents necessary to transfer agreements, domain
names and other tangibles and intangibles included in the Assets; and

                  (j) a receipt, executed by the Shareholders, acknowledging
issuance to them of the Buyer Common Stock and providing certain investment
representations and representations acknowledging the restrictions placed on the
shares pursuant to this Agreement.

         4.2. BUYER DELIVERIES. At the Closing, Buyer shall execute and deliver
to Seller:

                                       21

<PAGE>

                  (a) the Bill of Sale;

                  (b) a certificate, signed on behalf of Buyer and dated as of
the Closing Date, to the effect that (i) all of the representations and
warranties of Buyer in this Agreement are true and correct as of the Closing
Date, as if made on the Closing Date; and (ii) Buyer has fully performed each
covenant required to be performed prior to the Closing Date;

                  (c) a certificate, dated the Closing Date, of an officer of
Buyer attaching resolutions of the Board of Directors of Buyer in connection
with the authorization and execution, delivery and performance by Buyer of this
Agreement and the other Transaction Documents to which Buyer is a party,
certified as being in full force and effect as of the Closing Date;

                  (d) the cash portion of the Purchase Price;

                  (e) certificates representing an aggregate amount of 151,500
shares of Buyer Common Stock, issued pursuant to the terms and restrictions
contained in Section 1.9(a);

                  (f) certificates representing an aggregate amount of 363,600
shares of Buyer Common Stock issued pursuant to the terms and restrictions
contained in Section 1.9(b); and

                  (g) certificates representing an aggregate amount of 90,900
shares of Buyer Common Stock issued pursuant to the terms and restrictions
contained in Section 1.9(c).

         4.3. BUYER'S CLOSING CONDITIONS. Buyer's obligation to consummate the
transactions contemplated hereby at the Closing is conditioned on the following:

                  (a) the representations and warranties of Seller contained in
this Agreement or in any other Transaction Document are true and correct on the
date hereof and on the Closing Date with the same effect as though such
representations and warranties had been made on and as of the Closing Date;

                  (b) Seller shall have delivered all of the documents and
materials required under Section 4.1;

                  (c) all material registrations, filings, applications,
notices, consents, approvals, orders, qualifications and waivers required in
respect of the transactions contemplated hereby and by the other Transaction
Documents other than the Novations ("CONSENTS") shall have been filed, made or
obtained and remain effective;

                  (d) Seller's satisfaction of and compliance with all covenants
to be performed by Seller under this Agreement and the other Transaction
Documents prior to the Closing;

                  (e) each of the employees of Seller specified in
SCHEDULE 4.3(e) (the "KEY EMPLOYEES") shall have accepted employment with
Buyer effective as of the Closing and shall have executed a Buyer Employment
Agreement. Each of Ronald Linehan and Robert Main

                                       22

<PAGE>

shall have entered into a Buyer Employment Agreement and a key employee
agreement in the form set forth on EXHIBIT E attached hereto;

                  (f) the parties to each of the contracts listed in
SCHEDULE 4.3(f) shall have consented to the assignment of such contracts to
Buyer without requiring any change to the terms of such contracts that
diminishes their value or is otherwise adverse to Buyer other than the
Novations;

                  (g) the positive difference between the Accounts Receivable
and the Accounts Payable as stated on the Accounts Receivable Schedule and the
Accounts Payable Schedule, shall be no less than $300,000; and

                  (h) no event shall have occurred or be existing which has had,
or is reasonably likely to have, a material adverse effect on the condition or
prospects of the Business.

         4.4.     SELLER'S CLOSING CONDITIONS.

         Seller's obligation to consummate the transactions contemplated hereby
at the Closing is conditioned on the following:

                  (a) the representations and warranties of Buyer contained in
this Agreement or in any other Transaction Document are true and correct on the
date hereof and on the Closing Date with the same effect as though such
representations and warranties had been made on and as of the Closing Date;

                  (b) Buyer shall have delivered all of the documents required
under Section 4.2; and

                  (c) Buyer's satisfaction of and compliance with all covenants
to be performed by Buyer under this Agreement and the other Transaction
Documents prior to the Closing.

         4.5. CONDITIONS TO EACH PARTY'S OBLIGATIONS. Each party's obligation to
consummate the transactions contemplated hereby at the Closing is further
subject to the conditions that:

                  (a) any applicable waiting period under the HSR Act (as
defined below) shall have expired or been terminated;

                  (b) there be no suit, action or other proceeding before any
Authority in which it is sought to prohibit the consummation of such
transactions or to restrict the transfer or use of any Assets; and

                  (c) no temporary restraining order or injunction or court
order preventing the consummation of such transactions or the transfer or use of
any Assets shall be in effect.

                                       23

<PAGE>

         4.6.     TERMINATION.

                  (a) Each party shall have the right to terminate this
Agreement on the signed written agreement of the other party.

                  (b) Buyer shall have the right to terminate this Agreement
upon notice to Seller if Buyer during the course of its due diligence review
discovers information that was not previously provided by Seller and such
information would have a material adverse effect on the Business.

                  (c) Each party shall have the right to terminate this
Agreement if the closing conditions for the terminating party have not been
satisfied within 90 days of date of this Agreement; PROVIDED that neither party
shall have a right to so terminate if the failure to satisfy that party's
closing conditions is caused by or results from the failure of that party to
satisfy its obligations under this Agreement or any of the other Transaction
Documents or if such party is otherwise in default of any of its
representations, warranties or covenants under this Agreement.

                                   SECTION 5

                                   COVENANTS

         5.1.     PRE-CLOSING COVENANTS.

                  (a) Each of Seller and Buyer shall use its reasonable efforts
to conduct the Closing within 5 days following the date hereof.

                  (b) Each of Seller and Buyer shall at its own expense file
with the United States Department of Justice and the Federal Trade Commission,
any required regulatory submissions under the Hart-Scott-Rodino Antitrust
Improvements Act of 1968 (the "HSR ACT") and shall use its commercially
reasonable efforts to obtain any necessary approvals of such agencies to the
consummation of the transactions contemplated by this Agreement and the
Transaction Documents.

                  (c) Seller will take all commercially reasonable steps as may
be necessary to put Buyer in actual possession and operating control of the
Assets and Business as of the Closing Date, including obtaining all Consents.

                  (d) Until the earlier of termination of this Agreement or the
Closing Date: (i) neither Seller nor any of its representatives shall engage in
any discussions or negotiations with a third-party for the acquisition of all or
any portion of the Business or the Assets or solicit or otherwise facilitate or
encourage (through the provision of information or otherwise) an offer for the
acquisition of all or any portion of the Business or the Assets, and (ii) in the
event that Seller is approached by a third-party with respect to an acquisition
of all or any portion of the Business or the Assets, Seller shall immediately
notify Buyer in writing of the identity of such third-party.

                                       24

<PAGE>

                  (e) Until the earlier of the termination of this Agreement or
the Closing, Seller shall, except with the prior written consent of Buyer:

                           (i) operate the Business exclusively in the ordinary
         course consistent with past practices and in a manner which neither
         increases nor decreases web site Traffic in a manner inconsistent with
         commercially reasonable past practices;

                           (ii) maintain the Assets in good repair and
         condition, ordinary wear and tear excepted, and continue to preserve
         and protect the Assets;

                           (iii) comply with all applicable laws, regulations,
         rules, ordinances and court orders;

                           (iv) maintain the books and records of the Business
         on a basis consistent with prior periods;

                           (v) perform in all respects under all obligations and
         agreements of the Business, including paying when due all accounts
         payable, rents, taxes and other obligations of Seller or otherwise
         affecting the Business;

                           (vi) cause the positive difference between its
         Accounts Receivable and Accounts Payable, determined immediately prior
         to the Closing Date, to be less than $300,000; and

                           (vii) use all commercially reasonable efforts to
         preserve the Business and preserve the goodwill of licensors,
         suppliers, consultants, contributors, customers and others having
         business relations with the Business.

                  (f) Until the earlier termination of this Agreement or the
Closing, Seller shall not, except with the prior written consent of Buyer,
except in the ordinary course of business:

                           (i) sell, lease, license or otherwise dispose of any
         Assets other than in the ordinary course of business consistent with
         past practices, grant any right or interest in any Asset to any person
         or create or permit the imposition of any Encumbrance on any Asset, and
         with respect to intellectual property licensed from third parties and
         included in the Assets, sell, lease, license, or otherwise dispose of,
         or enter into any other agreement with respect to, such intellectual
         property in a manner which would prevent or interfere with the grant of
         the license;

                           (ii) make any assignment, license or sub-license of
         any of the intangible Assets;

                           (iii) enter into any contract or agreement with
         respect to the Business;

                           (iv) incur, assume, guarantee or otherwise become
         liable for any indebtedness for borrowed money with respect to the
         Business or the Assets;

                                       25

<PAGE>

                           (v) waive any confidentiality rights pertaining to
         the Assets or the Business;

                           (vi) enter into any joint venture, partnership or
         other similar arrangement or form any other new material arrangement
         for the conduct of the Business or with respect to the Assets; or

                           (vii) adopt or amend, or permit any Member of the
         Controlled Group to adopt or amend, any Employee Plan, except to the
         extent necessary to comply with changes in applicable law.

                  (g) Seller will afford, or cause to be afforded, to Buyer and
its representatives access to all personnel, facilities, properties, books, tax
returns, accounts, data, records, agreements and documents pertaining to or
included in the Assets or the Business. Seller will promptly advise Buyer in
writing of any event occurring subsequent to the date of this Agreement which
would render any representation or warranty of Seller contained in this
Agreement, if made on or as of the date of such event or the Closing Date,
untrue or inaccurate in any material respect or which is reasonably likely to
have a material adverse effect on the condition or prospects of the Business. ;
PROVIDED that Seller shall not be obligated to deliver to Buyer information the
delivery of which is prohibited by applicable law. Buyer will maintain the
confidentiality of all information (to the extent it is otherwise non-public and
not independently developed by Buyer) provided pursuant to this Section 5.1(g)
pending the Closing Date.

                  (h) Seller will provide Buyer with the Services pursuant to
the terms set forth on Schedule 1.2(a)(xvi). Seller will provide the employees
working for the Business with medical insurance coverage for approximately
thirty (30) days or until any applicable waiting period expires under Buyer's
plan, for which coverage Buyer will pay Seller.

                  (i) Buyer shall offer employment to each Key Employee,
including a grant of options to purchase Buyer Common Stock in an amount
specified on SCHEDULE 5.1(i).

                  (j) Buyer understands that its consent to the execution of a
counter party agreement by Seller's shareholders may be required, and that such
consent shall not be unreasonably withheld or unduly delayed.

         5.2.     POST-CLOSING COVENANTS.

                  (a) For a period of one year from and after the Closing,
Seller shall, at Buyer's expense, execute all such instruments or documents and
take all such other actions as Buyer may reasonably request to effectuate the
transactions contemplated hereby and by the other Transaction Documents,
including (i) obtaining of any necessary or advisable consents not required by
Buyer prior to Closing (including consents to assignment of contract rights and
obligations as Buyer may reasonably request); (ii) filing of tax returns,
including the filing of sales and use tax returns and notices as any party
hereto may reasonably require; and (iii) cooperating with Buyer to facilitate
the transition of Business customers, developers, content contributors and
advertisers to Buyer (such cooperation does not include going on joint sales

                                       26

<PAGE>

calls, preparation of marketing materials or presentations, or traveling to
any site outside of the northern Virginia area).

                  (b) Seller shall make available to Buyer the services
specified in SCHEDULE 5.2(b) AND Buyer shall pay Seller for such services
pursuant to a separate Services Agreement in the form set forth on Exhibit F
(the "SERVICES AGREEMENT").

                  (c) Subject to the limitations below, Seller shall indemnify,
defend and hold harmless Buyer, its officers, directors, employees, partners,
members, shareholders, affiliates and agents (and their officers, directors,
employees, members, partners and shareholders) (collectively, the "INDEMNIFIED
PARTIES") from and against any action, loss, liability, damage, claim, fine,
penalty, lien or expense, including legal costs, reasonable attorneys' fees and
expenses (collectively, "LOSSES") to the extent the same arises out of or is
related to (i) any breach by Seller of any representation, warranty, agreement
or covenant made by Seller herein or in any other Transaction Document;
(ii) Seller's failure to comply with any bulk sales or similar law; (iii) any
tax, including use or sales tax, in respect of the conduct of the Business
prior to the Closing Date; (iv) any claim arising out of or in connection
with the conduct of the Business on or prior to the Closing Date alleging
that all, or any portion of, the Business infringes any intellectual property
right or other interest of any person or entity; and (v) any claim, cause of
action or other obligation of Seller or of the Business relating to the
period prior to the Closing Date, whether the claim relating to such
obligation arises before or after the Closing Date, including any obligations
with respect to Assumed Liabilities to the extent that any such obligation or
Assumed Liability arose from or was the result of any facts or circumstances,
the existence of which constitutes a breach of a representation or warranty
made by Seller hereunder. Each Indemnified Party will give prompt notice to
Seller upon actual knowledge thereof of any claim or condition to which the
foregoing indemnification covenant relates; PROVIDED that failure to give
such notice shall not preclude any indemnity hereunder unless and to the
extent that such failure has actually and materially prejudiced Seller. With
respect to claims arising from the matter asserted on SCHEDULE 5.2(c), Buyer
must inform Seller of such claims within 24 months following the Closing
Date. With respect to claims arising from other breaches of representations
and warranties, Buyer must inform Seller of any such claims within 12 months
following the Closing Date except for breaches of representations and
warranties set forth in Section 2.6, which must be asserted within 30 days
after the expiration of the applicable statute of limitations governing the
assertion of liabilities which are the subject thereof, and Sections 2.1 and
2.2, as to which there is no limitation as to the date of assertion. The
liability of Seller under this Section 5.2(c) shall not exceed $2,500,000 and
shall be paid by each Shareholder, pro rata, from the aggregate 151,500
shares of Buyer Common Stock issued to and held by each Shareholder pursuant
to Section 1.9(a).

                  (d) Subject to the limitations below, Buyer shall indemnify,
defend and hold harmless Seller, its officers, directors, employees, partners,
members, shareholders, affiliates and agents (and their officers, directors,
employees, members partners and shareholders) (collectively, the "SELLER'S
INDEMNIFIED PARTIES") from and against any Losses to the extent the same arises
out of or is related to (i) any breach by Buyer of any representation, warranty,
agreement, or covenant made by Buyer herein or in any other Transaction
Document, (ii) any

                                       27

<PAGE>

claim, cause of action or other obligation of Buyer or of the Business
relating to the Assumed Liabilities, except to the extent arising from
circumstances constituting a breach of any representation, warranty or
covenant of Seller (without regard to any limit on the survival of such
representations, warranties or covenants); and (iii) any debt, liability or
obligation arising out of the Assets or the operation of the Business after
the Closing. Seller will give prompt notice to Buyer upon actual knowledge
thereof of any claim or condition to which the foregoing indemnification
covenant relates; PROVIDED that failure to give such notice shall not
preclude any indemnity hereunder unless and to the extent that such failure
has actually and materially prejudiced Buyer. Seller must inform Buyer of any
claims for breaches of representations and warranties within 12 months
following the Closing Date except for breaches of representations and
warranties set forth in Section 3.1 and 3.2, as to which there is no
limitation as to the date of assertion.

                  (e) Subject to the provisions of Section 5.2(h), Buyer shall
have the right to setoff any amount it is obligated to pay to Seller pursuant to
this Agreement or the other Transaction Documents against any amount owed by
Seller for any reason pursuant to this Agreement or the other Transaction
Documents; PROVIDED that where Buyer desires to exercise such setoff right in
respect of shares of Buyer Common Stock otherwise deliverable by Seller, Seller
may, at its option, elect to pay to Buyer in cash the amount to be setoff, which
payment must be made by Seller within five business days of Buyer's notice of
claim or Buyer shall again be entitled to exercise such right of setoff.

                  (f) From and after the Closing, if Seller becomes aware of any
Asset in its possession that was not delivered to Buyer at Closing, Seller shall
promptly notify Buyer of any such Asset, and deliver any such Asset to Buyer in
accordance with Buyer's reasonable instructions.

                  (g) From and after the date which is sixty days after the
Closing Date, Seller shall, upon the written request of Buyer, immediately
destroy or erase all of Seller's copies of the Assets set forth in
SCHEDULE 1.2(a) and, upon Buyer's request, promptly confirm destruction of
same by signing and returning to Buyer an "affidavit of destruction"
acceptable to Buyer.

                  (h) Except with respect to claims arising from the matter
described in Schedule 5.2(c), as to which Seller shall be liable for all amounts
up to but not in excess of $250,000, Seller shall not be liable to any
Indemnified Party unless an until the aggregate amount of Losses exceed the
amount of $100,000, and thereafter Indemnified Party shall be entitled to
indemnification only for the aggregate amount of such Losses in excess of
$100,000. The aggregate liability, including expenditures for legal fees and
disbursements, to which Seller shall be subject pursuant to the provisions of
Section 5.2(c) shall not exceed that number of shares of Buyer Common Stock
which equals $2,500,000, based upon the Closing Share Price. Any liability
directly to Buyer may be paid by the delivery of shares of Buyer's Common Stock
held in escrow pursuant to Section 1.9(a) or may be discharged at the election
of the Seller in cash. All damages to which the Indemnified Party may be
entitled pursuant to the provisions of Section 5.2(c) shall be net insurance
coverage in which Indemnified Party receives the benefits with respect thereto.

                                       28

<PAGE>

                  (i) With respect to disputes arising under Sections 1.9(a),
1.9(b) and 1.9(c), notwithstanding anything to the contrary contained in this
Agreement, all disputes shall be settled by arbitration administered by the
American Arbitration Association in accordance with the Commercial Arbitration
Rules then in effect. The arbitration shall be held in either Virginia or
Kansas; the location to be chosen by the respondent within 5 days after receipt
of claimant's demand for arbitration. The arbitration shall be conducted in by a
panel of three arbitrators to be selected within 15 days after respondent's
receipt of claimant's demand for arbitration and in the following manner: Buyer
shall select one arbitrator; Seller shall select one arbitrator; and a third
arbitrator, chose by the selected party arbitrators, to serve as a neutral
chairperson. If one or both of the parties fail to nominate an arbitrator within
the time limits specified herein, the American Arbitration Association shall
select an arbitrator on the party's behalf. The hearing shall be held no later
than 60 days following the appointment of the third arbitrator.

                                   SECTION 6

                               REGISTRATION RIGHTS

         6.1. PIGGYBACK REGISTRATION RIGHTS. If at any time Buyer proposes to
register for public offering any of its common stock under the Securities Act
(other than a registration statement on Form S-8 or Form S-4, or their
successors, or any other form for a similar limited purpose such as a dividend
reinvestment plan, or any registration statement covering only securities
proposed to be issued in exchange for securities or assets of another entity),
whether or not for its own account, Buyer shall furnish prompt (but in no event
later than thirty (30) days prior to the filing of the applicable registration
statement) written notice to each Shareholder of its intention to effect such
registration and the intended method of distribution in connection therewith.
Upon the written request of a Shareholder made to Buyer within 15 days after the
mailing of such notice by Buyer, Buyer shall include in such registration the
number of shares requested for inclusion by such Shareholder (the "Registrable
Securities"), subject to the provisions hereof and other customary terms,
conditions, limitations and cut-backs relating to the registration of securities
generally; PROVIDED, HOWEVER, that all rights granted pursuant to this Section 6
to any Shareholder shall terminate with respect to any Registrable Securities
held by such Shareholder upon the earlier to occur of (i) the time as all such
Registrable Securities of such Shareholder may immediately be sold pursuant to
Rule 144 and/or Rule 145 under the Securities Act within any ninety (90) day
period, or (ii) upon the sale of all such Registrable Securities pursuant to a
registration statement or Rule 144 and/or Rule 145 under the Securities Act.

         6.2. In addition to the obligations set forth under Section 6.3, in
order to include any Registrable Securities of a Shareholder in a registration
statement pursuant to this Section 6 that the Shareholder shall furnish to Buyer
such information regarding itself, the Registrable Securities held by it, and
the intended method of disposition of such securities as shall be required to
effect the registration of the Registrable Securities held by such Shareholder.
Any such information, or any comments on any such information included in a
draft of a registration

                                       29

<PAGE>

statement provided to such Shareholder for its comment, shall be provided to
Buyer within any reasonable time period requested by Buyer.

         6.3. Each Shareholder shall notify Buyer, at any time when a prospectus
is required to be delivered under applicable law, of the happening of any event
as a result of which the prospectus included in the applicable registration
statement, as then in effect, with respect to information provided or confirmed
by such Shareholder, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing.
Such Shareholder shall immediately upon the happening of any such event cease
using such prospectus.

         6.4. In connection with any underwritten offering of a Shareholder's
Registrable Securities, Buyer shall not be required under this Section 6 to
register any of such Registrable Securities in connection with such underwritten
offering unless such Shareholder accepts the underwriters selected by Buyer and
executes an underwriting agreement with such underwriters containing such
provisions as are customary in an underwritten offering that includes shares
held by selling shareholders. Registrable Securities shall be sold in such
offering only in such quantity as the lead managing underwriter determines, in
its sole discretion, will not jeopardize the success of the offering by Buyer.
To the extent that the lead managing underwriter will not permit the
registration of all of the securities sought to be registered, in the case of a
registration pursuant to this Section 6, the securities to be included shall be
apportioned as follows: (i) first, Buyer and any holders of securities of Buyer
exercising any demand registration rights granted to such holders shall be
entitled to register all securities that Buyer or such other holders propose to
sell for their own account, in such proportion as they shall agree upon; (ii)
second, any holders of Buyer securities exercising piggyback registration rights
as and to the extent that such registration rights were granted prior to the
date hereof and have priority over the registration rights granted to
Shareholders hereunder; and (iii) lastly, any Shareholder, together with any
holders of other Buyer securities exercising piggyback registration rights as
and to the extent that such registration rights rank PARI PASSU with the
piggyback registration rights hereunder, shall be entitled to register, on a pro
rata basis (based on the number of Registrable Securities which a Shareholder
would be entitled, absent any apportionment pursuant to this Section 6.4 to have
Buyer register), up to that number of Registrable Securities and other shares of
common stock that is equal to the remaining shares of common stock that the lead
managing underwriter will permit to be registered after giving effect to the
apportionment set forth in clauses (i) and (ii) above, in connection with such
offering.

         6.5. If requested by Buyer or a representative of the underwriters of
the offering, each Shareholder shall not sell or otherwise transfer or dispose
of any securities held by such Shareholder (other than those included in the
registration) for a period specified by the representative of the underwriters,
not to exceed one hundred eighty (180) days following the effective date of a
registration statement of Buyer filed under the Securities Act.

         6.6. Nothing in this Section 6 shall create any liability on the part
of Buyer or any other person to any Shareholder if Buyer or any other person
should, for any reason, decide not

                                       30

<PAGE>

to file a registration statement proposed to be filed or to withdraw such
registration statement subsequent to its filing, regardless of any action
whatsoever that any Shareholder may have taken, whether as a result of the
issuance by Buyer of any notice under this Section 6 or otherwise.

         6.7. Unless otherwise required by law, rule or regulation, if
Registrable Securities owned by Shareholders who have made the election provided
in Section 6.1 are included in such registration statement, the Buyer shall bear
and pay all fees, costs, and expenses incident to such inclusion, including,
without limitation, registration fees, blue sky qualification fees, exchange
listing fees and expenses, legal fees and disbursements of Buyer's counsel
(including blue sky counsel), reasonable legal fees and disbursements of one
counsel to the Shareholders, printing costs, costs of any special audits and
accounting fees. Each selling Shareholder shall pay all underwriting discounts
and commissions with respect to such Shareholder's Registrable Securities, as
well as fees and disbursements of counsel (other than the one counsel to the
Shareholders) and other advisors for such selling Shareholder and all internal,
overhead and other expenses of such selling Shareholder.

         6.8. The Buyer, before filing a registration statement, amendment or
supplement thereto, will furnish copies of such documents to legal counsel
selected by the Shareholders. In addition, the Buyer will make available for
inspection by any selling Shareholder or by any attorney or other agent of any
selling Shareholder all information reasonably requested by such persons which
relates to such registration. All non-publicly available information provided to
any selling Shareholder, or any attorney or agent of any selling Shareholder
shall be kept strictly confidential by such selling Shareholder, or attorney or
agent of such selling Shareholder so long as such information remains nonpublic.

         6.9. The Buyer will promptly notify each selling Shareholder of the
occurrence of any event which renders any prospectus then being circulated among
prospective purchasers misleading because such prospectus contains an untrue
statement of a material fact or omits to state a material fact necessary to make
the statements made, in light of the circumstances in which they were made, not
misleading, and the Buyer will amend the prospectus so that it does not contain
any material misstatements or omissions and deliver the number of copies of such
amendments to each selling Shareholder as each selling Shareholder may require.

         6.10. In connection with any registration of Registrable Securities
pursuant to this Agreement, the Buyer shall, at its expense, keep effective and
maintain such registration and any related qualification of Registrable
Securities under state securities laws for such period not exceeding 120 days as
may be necessary for the selling Shareholders, underwriters and selling agents
to dispose of such Registrable Securities, from time to time to amend or
supplement the Prospectus used in connection therewith to the extent necessary
to comply with applicable laws, and to furnish to such selling Shareholders such
number of copies of the registration statement, the prospectus constituting a
part thereof, and any amendment or supplement thereto as such selling
Shareholders may reasonably request in order to facilitate the disposition of
the registered Registrable Securities.

                                       31
<PAGE>

         6.11. Subject to the requirements of the applicable securities laws,
nothing in this agreement to the contrary shall prevent Shareholders from
participating in any tender offer for outstanding Buyer Common Stock, which
tender offer is not in violation of the Securities Exchange Act of 1934, as
amended, and the regulations promulgated thereunder; PROVIDED that $16.50165 for
every share of Buyer Common Stock finally tendered by each Shareholder is set
aside, to the reasonable satisfaction of Buyer, secured and made available to
Buyer to cover claims that may arise from time to time against such shares under
the terms of this Agreement.

                                   SECTION 7

                                  MISCELLANEOUS

         7.1. GOVERNING LAW. This Agreement shall be governed in all respects by
the laws of the State of Kansas, without giving effect to any choice or conflict
of law provision or rule (whether of the State of Kansas or any other
jurisdiction that would cause the application of the laws of any jurisdiction
other that the State of Kansas).

         7.2. SURVIVAL. The representations and warranties made herein shall
survive any investigation made by the parties and the Closing for a period of 12
months following the Closing Date, except for the representations and warranties
set forth in Sections 2.1, 2.2, 2.6, 3.2 and 3.6 which shall survive until the
expiration of the applicable statute of limitations governing the assertion of
liabilities which are the subject thereof. Except as expressly provided
otherwise herein, the covenants and agreements made herein shall survive the
Closing.

         7.3. SUCCESSORS AND ASSIGNS. Except as otherwise provided herein, the
provisions hereof and of the other Transactional Documents shall inure to the
benefit of, and be binding upon, the successors, assigns, heirs, executors and
administrators of the parties hereto. No party may assign any of its rights or
obligations hereunder or thereunder without the express written consent of the
other party hereto, which consent may not be unreasonably withheld; PROVIDED
that any party may assign any and all of its rights and interests hereunder of
thereunder to one or more of its affiliates and designate one or more of its
affiliates to perform its obligations hereunder; PROVIDED that such party
remains liable for full and total performance of its obligations hereunder and
thereunder.

         7.4. NOTICES. Any notices authorized to be given hereunder or under any
of the other Transactional Documents shall be in writing and deemed given, if
delivered personally or by overnight courier, on the date of delivery, if a
Business Day, or if not a Business Day, on the first Business Day following
delivery, or if mailed, three days after mailing by registered or certified
mail, return receipt requested, and in each case, addressed, as follows:

                                       32

<PAGE>

                  If to Buyer:

                  National Information Consortium, Inc.
                  Attention:  President
                  12 Corporate Woods
                  10975 Benson Street, Suite 390
                  Overland Park, KS 66210
                  Facsimile: (913) 498-3472

                  and a copy to:

                  John W. Campbell, Esq.
                  Morrison & Foerster LLP
                  425 Market Street
                  San Francisco, CA  94105
                  Facsimile:  (415) 268-7522

                  If to Seller:

                  Duffy Mazan,
                  Chief Executive Officer
                  Electric Press, Inc.
                  1140 Isaac Newton Square
                  Reston, VA 22090
                  Facsimile: (703) 742-4648

                  and a copy to

                  Jocelyn West Brittin, Esq.
                  McGwire, Woods, Battle & Boothe LLP
                  1750 Tyson's Boulevard
                  McLean, VA 22102
                  Facsimile: (703) 712-5050

or if delivered by telecopier, on a Business Day before 4:00 PM local time of
addressee, on transmission confirmed electronically, or if at any other time or
day on the first Business Day succeeding transmission confirmed electronically,
to the facsimile numbers provided above, or to such other address or telecopy
number as any party shall specify to the other, pursuant to the foregoing notice
provisions.

         7.5. WAIVER; AMENDMENTS. This Agreement and the other Transaction
Documents (i) set forth the entire agreement of the parties respecting the
subject matter hereof; (ii) supersede any prior and contemporaneous
understandings, agreements, or representations by or among the parties, written
or oral, to the extent they related in any way to the subject matter hereof; and

                                       33

<PAGE>

(iii) may not be amended orally, and no right or obligation of any party may be
altered, except as expressly set forth in a writing signed by such party.

         7.6. COUNTERPARTS. This Agreement may be signed in several
counterparts.

         7.7. EXPENSES. Each party shall bear its own expenses incurred with
respect to the preparation of this Agreement and the other Transaction Documents
and the consummation of the transactions contemplated hereby and thereby.

         7.8. POST-CLOSING CONFIDENTIALITY AND PUBLICITY. On and at all times
after the date of this Agreement:

                  (a) except to the extent required by law, and until Buyer has
made its public announcement regarding this transaction, Seller shall not make
any disclosure of any nature (to any of their suppliers, customers, landlords,
creditors or employees or to any other person) concerning any of the
transactions contemplated by this Agreement or any of the other Transactional
Documents except as contemplated by the Transactional Documents agreed to by
Buyer, and Seller shall keep the existence and terms of this Agreement and the
other Transaction Documents strictly confidential; and

                  (b) Seller shall keep strictly confidential, and shall not
use, or disclose to any other person, any non-public document or other
information that relates directly or indirectly to the Business or the Assets,
including personnel information, secret processes, proprietary know-how,
customer lists and other technical or business information included in the
Assets and not generally known in similar businesses.

         7.9.     CERTAIN DEFINITIONS.

                  (a) When used in this Agreement, "TRANSACTION DOCUMENTS" shall
mean this Agreement, the Seller Services Agreement and the Bill of Sale.

                  (b) When used in this Agreement, "BUSINESS DAY" shall mean a
day other than a Saturday, Sunday or a day on which commercial banks in Kansas
City, Kansas are generally closed for business.

                  (c) When used in this Agreement, "PERSON" shall mean and
include any individual, entity or Authority.

                  (d) When used in this Agreement, "CAUSE" shall mean an
employee's conviction of a felony or the willful and deliberate failure of an
employee to perform his customary duties, in a manner consistent with the manner
reasonably prescribed by the Board of Directors or President of Buyer (other
than any failure resulting from his incapacity due to physical or mental
illness, disability or death) after not less than thirty (30) days prior written
notice from Buyer.

                  (e) When used in this Agreement, "KNOWLEDGE" of a particular
fact or other matter shall mean, with respect to an individual, that:

                                       34

<PAGE>

                           (i) such individual is actually aware of such fact or
         other matter; or

                           (ii) a reasonable individual could be expected to
         discover or otherwise become aware of such fact or other matter in the
         course of conducting a reasonably diligent investigation concerning the
         truth or existence of such fact or other matter.

         Seller shall be deemed to have "Knowledge" of a particular fact or
other matter if any officer or key employee of Seller has Knowledge of such fact
or other matter.

                  (f) When used in this Agreement, "MATERIAL" means, with
respect to the representations, warranties and covenants provided herein, a
contract, obligation, liability, transaction, breach, Encumbrance, proceeding or
other matter or event, if the aggregate amount or value involved with respect to
each such contract, obligation, liability, transaction, breach, Encumbrance,
proceeding or other matter or event exceeds $10,000.

                  (g) When used in this Agreement, "MATERIAL ADVERSE EFFECT"
means, with respect to Seller, (i) any material adverse effect on Seller's
business, financial condition, assets, liabilities, operations, financial
performance, net income or prospects or (ii) any material adverse effect on
Seller's ability to comply with or perform any material covenant or obligation
under this Agreement and the other Transactional Documents.

         7.10. SEVERABILITY. In the event any of the provisions of this
Agreement shall be held by a court or other tribunal of competent jurisdiction
to be unenforceable, the other provisions of this Agreement shall remain in full
force and effect.

         7.11.    INTERPRETATION.

                  (a) The parties hereto agree that any rule of construction to
the effect that ambiguities are to be resolved against the drafting party shall
not be applied in the construction or interpretation of this Agreement.

                  (b) As used in this Agreement, the words "include" and
"including," and variations thereof, shall not be deemed to be terms of
limitation, but rather shall be deemed to be followed by the words "without
limitation."

                  (c) Except as otherwise indicated, all references in this
Agreement to "Sections," "Exhibits" and "Schedules" refer to Sections of this
Agreement and Exhibits and Schedules to this Agreement.

                  (d) A person shall be deemed to have "knowledge" of a
particular fact or matter if (i) such person is actually aware of such fact or
other matter or (ii) a reasonable person would be expected to become aware of
such fact or other matter in the course of performing such person's ordinary
duties and responsibilities in a reasonable and prudent manner consistent with
such person's position.

                                       35

<PAGE>

         IN WITNESS WHEREOF, the undersigned have executed this Asset Purchase
Agreement as of the date first written above.

                                NATIONAL INFORMATION CONSORTIUM, INC.

                                By:   /s/
                                      -----------------------------------------
                                       Name:

                                       Title:

                                ELECTRIC PRESS, INC.

                                By:   /s/
                                      -----------------------------------------
                                       Name:

                                       Title:

                                       36<PAGE>

                                                                 EXHIBIT 10.31

                             CONTRIBUTION AGREEMENT

         THIS CONTRIBUTION AGREEMENT (this "AGREEMENT") is entered into as of
the 12th day of January, 2000, by and among National Information Consortium,
Inc., a Colorado corporation ("NIC"), Conquest, Inc., a NIC entity, a Colorado
corporation (the "COMPANY"), and the members (the "CONQUEST MEMBERS") of
Conquest Softworks, L.L.C., a Colorado limited liability company ("CONQUEST").

                                    RECITALS

         WHEREAS, NIC and the Conquest Members will form the Company for the
purpose of carrying out the transactions contemplated by this Agreement;

         WHEREAS, NIC desires to contribute the NIC Assets (as defined below) to
the Company in exchange for fifty percent (50%) of the shares of the Company's
common stock, par value $.001 per share (the "SHARES") outstanding immediately
following the Closing (as defined below), subject to the terms and conditions of
this Agreement; and

         WHEREAS, the Conquest Members desire to contribute all of the member
interests in Conquest (the "MEMBER INTERESTS") to the Company in exchange for
fifty percent (50%) of the Shares outstanding immediately following the Closing,
subject to the terms and conditions of this Agreement.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, and intending to be legally bound
hereby, NIC, the Company and the Conquest Members hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1 DEFINITIONS. As used in this Agreement, the following terms shall
have the following meanings:

         "AGREEMENT" shall mean this Contribution Agreement, dated January 12,
2000, by and among NIC, the Company and the Conquest Members.

         "ARTICLES OF INCORPORATION" shall mean the Articles of Incorporation of
the Company, substantially in the form attached hereto as Exhibit 1.1, as the
same may be amended, supplemented or otherwise modified from time to time.

         "CLOSING" shall have the meaning set forth in Section 3.1 of this
Agreement

         "CLOSING DATE" shall mean the actual date of the Closing.

<PAGE>

         "CONQUEST" shall mean Conquest Softworks, L.L.C., a Colorado limited
liability company.

         "GAAP" means generally accepted accounting principles as currently in
effect in the United States consistently applied.

         "GOVERNMENTAL AUTHORITY" shall mean any nation or government, any state
or other political subdivision thereof, and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, but does not include any such entity in its capacity as a party
to any contract.

         "LIABILITIES" shall mean, as to any Person, all debts, liabilities and
obligations, direct, indirect, absolute or contingent of such Person or entity,
whether accrued, vested or otherwise, whether known or unknown and whether or
not actually reflected, or required by GAAP to be reflected, in such Person's
balance sheets or other books and records.

         "LIENS" shall mean any adverse claims, liens, security interests,
charges, leases, licenses and other encumbrances of any kind and nature.

         "MEMBER INTERESTS" shall mean the member interests in Conquest, as set
forth in Schedule 2.2.

         "COMPANY" shall mean Conquest, Inc., a NIC entity, a Colorado
corporation.

         "NIC" shall mean National Information Consortium, Inc., a Colorado
corporation.

         "NIC ASSETS" shall mean the assets set forth on Schedule 2.1 to be
contributed by NIC to the Company pursuant to the terms and conditions of this
Agreement.

         "PERSON" shall mean any individual, corporation, partnership, joint
venture, trust, incorporated organization, limited liability company, other form
of business or legal entity or Governmental Authority.

         "RELATED AGREEMENTS" shall mean, collectively, the Common Stock
Purchase Agreement to be entered by and among NIC and the Conquest Members,
substantially in the form of Exhibit 1.2 attached hereto, and the Investors'
Rights Agreement to be entered into by and among the Company, NIC and the
Conquest Members, substantially in the form of Exhibit 1.3 attached hereto.

         "SHARES" shall mean the shares of the Company's common stock, par value
$.001 per share.

                                   ARTICLE II

<PAGE>

                CONTRIBUTION OF ASSETS; ASSUMPTION OF LIABILITIES

         2.1 CONTRIBUTIONS OF NIC. Subject to the terms and conditions contained
in this Agreement, at the Closing NIC shall contribute, transfer, assign, convey
and deliver to the Company, and the Company shall acquire from NIC free and
clear of all liens and encumbrances, the NIC Assets as set forth in Schedule 2.1
hereto, which assets consist of the following:

         (i) all of the NIC software business operations and assets (including
         all sources codes, software applications, contracts and potential
         contracts and other assets) for Uniform Commercial Code internal
         government office software and corporations/business entities internal
         government office software for secretary of states offices; and

         (ii) the sum of Two Million Dollars ($2,000,000) in cash.

         The parties hereto hereby agree and acknowledge that the remaining NIC
business shall not be included in the NIC Assets, including but not limited to
all government database filing and interface software. NIC shall execute and
deliver such bills of sale and other documents of transfer as may be necessary
or reasonably requested to effect and memorialize the contributions, transfers,
assignments, conveyances and deliveries set forth in this Section 2.1.

         2.2 CONTRIBUTIONS OF CONQUEST MEMBERS. Subject to the terms and
conditions contained in this Agreement, at the Closing each Conquest Member
shall contribute, transfer, assign, convey and deliver to the Company, and the
Company shall acquire from the Conquest Member, free and clear of all liens and
encumbrances, all of the Conquest Member's right, title and interest in: (i) the
Member Interests as set forth in Schedule 2.2 (which the Conquest Members
represent and warrant constitute all of the issued and outstanding member
interests in Conquest); and (ii) source codes, domain names, and ISP addresses
developed by or used in Conquest's business.

         Each Conquest Member shall execute and deliver such bills of sale and
other documents of transfer as may be necessary or reasonably requested to
effect and memorialize the contributions, transfers, assignments conveyances and
deliveries to be made by such Conquest Member under this Section 2.2.

         Each Conquest Member understands and agrees that, upon the
contributions, transfers, assignments, conveyances and deliveries set forth in
this Section 2.2, all rights that such Conquest Member may have as a member or
employee of Conquest shall terminate.

         2.3 ASSUMPTION OF LIABILITIES. On and after the Closing Date, the
Company will, pursuant to an assumption agreement in a form reasonably
satisfactory to the parties hereto, assume and agree to pay, perform and
discharge when due, all of the following Liabilities (collectively, the "ASSUMED
LIABILITIES"): All of Conquest's executory

<PAGE>

contracts, entered into in the ordinary course of its business, to provide
software and related services to state and county governments, and all of the
contracts listed in Schedule 2.1 attached hereto.

         2.4 ISSUANCE OF SHARES. As consideration for the contributions of NIC
set forth in Section 2.1 above, and subject to the terms and conditions
contained in this Agreement and the Articles of Incorporation, the Company shall
issue to NIC 15,000,000 validly issued, fully paid and nonassessable Shares of
the Company, which shall constitute fifty percent (50%) of the issued and
outstanding capital stock of the Company on the Closing Date. As consideration
for the contributions of the Conquest Members set forth in Section 2.2 above,
and subject to the terms and conditions contained in this Agreement and the
Articles of Incorporation, the Company shall issue to the Conquest Members an
aggregate of 15,000,000 validly issued, fully paid and nonassessable Shares of
the Company, which shall constitute fifty percent (50%) of the issued and
outstanding capital stock of the Company on the Closing Date.

                                   ARTICLE III

                                     CLOSING

         3.1 TIME AND PLACE OF CLOSING. The consummation of the contributions
described herein and the other transactions contemplated hereby (the "CLOSING")
shall take place on January 14, 2000, at the offices of Morrison & Foerster LLP,
5200 Republic Plaza, 370 Seventeenth Street, Denver, Colorado 80202-5638, or at
such other date or location as the parties may mutually agree.

         3.2 RELATED AGREEMENTS. On the Closing, the relevant parties shall
enter into the Common Stock Purchase Agreement substantially in the form set
forth as Exhibit 1.2 attached hereto, and the Investors' Rights Agreement
substantially in the form set forth as Exhibit 1.3 attached hereto.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         4.1 REPRESENTATIONS AND WARRANTIES OF NIC. Except as set forth in
Schedule 4.1 attached hereto, NIC hereby represents and warrants to the other
parties to this Agreement as follows:

         (a) DUE ORGANIZATION. NIC is duly organized, validly existing and in
good standing under the laws of the State of Colorado, and has the requisite
power and authority to own or lease its properties and to carry on its business
as presently conducted. NIC has all requisite power and authority to enter into
this Agreement and the Related Agreements and to perform its obligations
hereunder and thereunder.

<PAGE>

         (b) POWER AND AUTHORITY. The execution, delivery and performance by NIC
of this Agreement and the Related Agreements and the consummation by NIC of the
transactions contemplated hereby and thereby have been duly authorized by all
necessary corporate action. This Agreement has been, and each of the Related
Agreements will on the Closing Date be, duly executed and delivered by NIC and
constitutes or, in the case of the Related Agreements, upon execution thereof
will constitute, a valid and legally binding obligation of NIC, enforceable
against it in accordance with its terms.

         (c) GOOD AND MARKETABLE TITLE. NIC has good and marketable title to the
NIC Assets to be contributed hereunder, free and clear of all liens,
encumbrances, equities, security interests and claims whatsoever, with full
right and authority to deliver the same hereunder, and that upon delivery of the
NIC Assets hereunder, the Company will receive good and marketable title
thereto, free and clear of all liens, encumbrances, equities, security interests
and claims whatsoever. The Conquest Members have been provided true and accurate
copies of all contracts listed in Schedule 2.1, and there have been no
amendments or modifications to, or breach of, such contracts as of the date
hereof.

         (d) NO VIOLATION. The execution, delivery and performance of this
Agreement and the Related Agreements by NIC and the consummation by NIC of the
transactions contemplated hereby and thereby will not (i) conflict with or
result in a breach of any provision of the charter or bylaws of NIC,
(ii) require any consent, approval, authorization or permit of, or filing
with or notification to, any Governmental Authority, (iii) require the
consent or approval of any Person (other than a Governmental Authority) or
violate or conflict with, or result in a breach of any provision of,
constitute a default (or an event which with notice or lapse of time or both
would become a default) or give to any third party any right of termination,
cancellation, amendment or acceleration under, or result in the creation of a
Lien under, any of the terms, conditions or provisions of any contract,
license or other agreement or instrument to which NIC is a party or by which
it or its assets or property are bound, or (iv) violate or conflict with any
order, writ, injunction, decree, statute, rule or regulation applicable to
NIC; other than any consents and approvals the failure of which to obtain and
any violations, conflicts, breaches defaults and other rights set forth
pursuant to clauses (ii), (iii) and (iv) above which, individually or in the
aggregate, would not reasonably be expected to have a material adverse effect
on the NIC Assets or NIC's ability to perform its obligations under this
Agreement or the Related Agreements.

         (e) LEGAL PROCEEDINGS. There is no litigation, proceeding or
governmental investigation to which NIC is a party pending or, to the knowledge
of NIC, threatened against NIC or that relates to the transactions contemplated
by this Agreement which could, either individually or in the aggregate, result
in a material adverse effect on the NIC Assets or which seeks to restrain or
enjoin the consummation of any of the transactions contemplated hereby. NIC is
not in violation of any term of any judgment, writ, decree, injunction or order
entered by any court or governmental authority (domestic or foreign) and
outstanding against NIC or with respect to the NIC Assets, except for such
violations which could not, individually or in the aggregate, have a material
adverse effect on the NIC Assets. To the knowledge of NIC, there are no facts

<PAGE>

which would provide a basis for any successful prosecution of any such
litigation, proceeding or investigation.

         (f) NO FEES. Neither NIC nor its officers, directors or employees, on
behalf of NIC, has employed any broker or finder or incurred any other Liability
for any brokerage fees, commissions or finders' fees in connection with the
transactions contemplated by this Agreement.

         4.2 REPRESENTATIONS AND WARRANTIES OF THE CONQUEST MEMBERS. Except as
set forth in Schedule 4.2 attached hereto, each of the Conquest Members hereby
represents and warrants to NIC and the Company as follows:

         (a) DUE ORGANIZATION OF CONQUEST. Conquest is duly organized, validly
existing and in good standing under the laws of the State of Colorado, and has
the requisite power and authority to own or lease its properties and to carry on
its business as presently conducted.

         (b) POWER AND AUTHORITY. This Agreement has been, and each of the
Related Agreements will on the Closing Date be, duly authorized, executed and
delivered by the Conquest Member and constitutes or, in the case of the Related
Agreements, upon execution thereof will constitute, valid and binding
obligations of the Conquest Member enforceable against such Conquest Member in
accordance with its terms.

         (c) FINANCIAL INFORMATION. (i) The unaudited balance sheet of Conquest
as at December 31, 1999 (such latest balance sheet being referred to herein as
the "BALANCE SHEET") and the related statements of operations and cash flows for
the period ending December 31, 1999, copies of which have been furnished to NIC
and which are attached hereto as Schedule 4.2(c), present fairly in all material
respects the financial condition of Conquest as at December 31, 1999, and the
results of its operations for the twelve-month period ending on December 31,
1999. At December 31, 1999, Conquest did not have any material contingent
obligation, contingent liability or liability for taxes, or any long-term lease
or unusual forward or long-term commitment not reflected in the Balance Sheet or
otherwise disclosed in the Schedules to this Agreement.

         (ii) Except to the extent set forth in the Balance Sheet, Conquest does
not have any Liabilities or obligations (absolute, accrued, contingent or
otherwise), whether due or to become due which would be required, in accordance
with GAAP, to be set forth on a balance sheet of Conquest, other than any such
Liabilities or obligations incurred since December 31, 1999 in the ordinary
course of business consistent with past practice.

         (d) GOOD AND MARKETABLE TITLE. Such Conquest Member has good and
marketable title to all Member Interests and other assets to be contributed by
such Conquest Member hereunder, free and clear of all liens, encumbrances,
equities, security interests and claims whatsoever, with full right and
authority to deliver the same hereunder, and that upon delivery of such Member
Interests hereunder, the Company will

<PAGE>

receive good and marketable title thereto, free and clear of all liens,
encumbrances, equities, security interests and claims whatsoever.

         (e) NO VIOLATION. The execution, delivery and performance of this
Agreement and the Related Agreements by such Conquest Member and the
consummation by such Conquest Member of the transactions contemplated hereby and
thereby will not (i) conflict with or result in a breach of any provision of the
organizational documents of Conquest, (ii) require any consent, approval,
authorization or permit of, or filing with or notification to, any Governmental
Authority, (iii) require the consent or approval of any Person (other than a
Governmental Authority) or violate or conflict with, or result in a breach of
any provision of, constitute a default (or an event which with notice or lapse
of time or both would become a default) or give to any third party any right of
termination, cancellation, amendment or acceleration under, or result in the
creation of a Lien under, any of the terms, conditions or provisions of any
contract, license or other agreement or instrument to which Conquest or such
Conquest Member is a party or by which they or their respective assets or
property are bound, or (iv) violate or conflict with any order, writ,
injunction, decree, statute, rule or regulation applicable to Conquest or such
Conquest Member; other than any consents and approvals the failure of which to
obtain and any violations, conflicts, breaches defaults and other rights set
forth pursuant to clauses (ii), (iii) and (iv) above which, individually or in
the aggregate, would not reasonably be expected to have a material adverse
effect on the assets, business or condition (financial or otherwise) of Conquest
or the Conquest Member or the Conquest Member's ability to perform its
obligations under this Agreement or the Related Agreements.

         (f) LEGAL PROCEEDINGS. There is no litigation, proceeding or
governmental investigation to which Conquest is a party pending or, to the
knowledge of the Conquest Member, threatened against Conquest or that relates to
the transactions contemplated by this Agreement which could, either individually
or in the aggregate, result in a material adverse effect on the assets, business
or condition (financial or otherwise) of Conquest or which seeks to restrain or
enjoin the consummation of any of the transactions contemplated hereby. Conquest
is not in violation of any term of any judgment, writ, decree, injunction or
order entered by any court or governmental authority (domestic or foreign) and
outstanding against Conquest or with respect to its assets, except for such
violations which could not, individually or in the aggregate, have a material
adverse effect on the assets, business or condition (financial or otherwise) of
Conquest. To the knowledge of such Conquest Member, there are no facts which
would provide a basis for any successful prosecution of any such litigation,
proceeding or investigation.

         (g) NO FEES. Except as set forth in Schedule 4.2(g) hereto, such
Conquest Member has not employed any broker or finder or incurred any other
Liability for any brokerage fees, commissions or finders' fees in connection
with the transactions contemplated by this Agreement.

         4.3 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties given by the parties in Article IV shall survive the Closing until
the third

<PAGE>

anniversary of the Closing Date, at which time such representations and
warranties will terminate.

                                    ARTICLE V

                                    COVENANTS

         5.1 FILINGS. As promptly as practicable after the date of this
Agreement, each of the parties hereto shall make or cause to be made all filings
and submissions under applicable laws and regulations, if any, as may be
required for the consummation of the transactions contemplated by this
Agreement. Each of the parties hereto shall coordinate and cooperate in
exchanging such information and providing such reasonable assistance as may be
requested by either of them in connection with the filings and submissions
contemplated by this Section 5.1.

         5.2 CONSENTS. Each of the parties hereto shall use their best efforts
to obtain all necessary consents, approvals and waivers of all Governmental
Authorities necessary for the consummation of the transactions contemplated by
this Agreement and all consents, approvals and waivers required under any
contract, license or other agreement to which it is a party.

         5.3 AGREEMENT TO COOPERATE; FURTHER ASSURANCES. Subject to the terms
and conditions of this Agreement, each of the parties hereto shall use all
reasonable efforts to take, or cause to be taken, all action and to do, or cause
to be done, all things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the transactions contemplated by
this Agreement. In case at any time after the Closing Date any further action is
necessary or desirable to transfer any of the NIC Assets or the Member Interests
to the Company (including obtaining any third party consents), to effect the
assumption by the Company of the Assumed Liabilities or otherwise to carry out
the purposes of this Agreement, the parties hereto shall execute such further
documents (including assignments, acknowledgements and consents and other
instruments of transfer) and shall take such further action as shall be
necessary or desirable to effect such transfer and to otherwise carry out the
purposes of this Agreement, in each case to the extent not inconsistent with
applicable law.

         5.4 CONDUCT OF CONQUEST PENDING THE CLOSING DATE. The Conquest Members
agree that except with the prior written consent of NIC, prior to the Closing
Date Conquest shall:

         (a) operate its business only in the usual, regular and ordinary
manner, on a basis consistent with past practice and, to the extent consistent
with such operation, use its reasonable efforts to preserve its present business
organization intact, keep available the services of its present employees,
preserve its present business relationships and maintain all rights, privileges
and franchises necessary or desirable in the normal conduct of its business;

<PAGE>

         (b) maintain its inventory of supplies, parts and other materials and
keep its books, accounts, files and records in the usual, regular and ordinary
manner, on a basis consistent with past practice, and comply with and perform in
all material respects all laws and contractual and other obligations applicable
to Conquest's business;

         (c) maintain in full force and effect adequate insurance with respect
to Conquest's business and the employees of Conquest covering risks customarily
insured by similar businesses;

         (d) not enter into any contract, agreement or other commitment which
involves aggregate consideration in excess of $10,000 except for purchases and
sales of inventories and advertising promotion in the ordinary course of
business consistent with past practice;

         (e) except as required by applicable law or to the extent required
under existing employee benefit plans, agreements or arrangements as in effect
on the date of this Agreement, not (i) increase the compensation or fringe
benefits of any of Conquests' officers or employees, except for increases, in
the ordinary course of business, in salary or wages of employees who are not
officers, (ii) except in the ordinary course of business grant any severance or
termination pay, (iii) hire, except in the ordinary course of business, any new
employees or consultants, or (iv) enter into or amend or terminate any
collective bargaining, bonus, profit sharing, thrift, compensation, pension,
retirement, deferred compensation, employment, termination, severance or other
plan, agreement, trust, fund, policy or arrangement for the benefit of any past
or present officers or employees;

         (f) not dispose of or abandon any of the Conquest assets, other than
the disposition of obsolete or worn-out equipment or machinery in the ordinary
course of business, consistent with past practice;

         (g) not (i) permit or allow any of the Conquest assets to become
subject to any Liens, or (ii) waive any material claims or rights relating to
the Conquest business or assets;

         (h) not acquire or agree to acquire outside the ordinary course of
business any assets that are material, individually or in the aggregate, to the
Conquest business, or make or agree to make any capital expenditures except for
capital expenditures not in excess of $10,000 for any individual expenditure and
$50,000 in the aggregate;

         (i) not transfer any rights of material value of the Conquest business
or modify or change in any material respect any existing license, lease,
contract or other document relating to the operations of the Conquest business,
other than in the ordinary course of business consistent with past practice;

         (j) not change any material accounting principle that would affect the
Balance Sheet;

<PAGE>

         (k) not pledge or otherwise use any Conquest assets as collateral or
security for any indebtedness of Conquest or any other Person other than liens
arising in the ordinary course of business under existing agreements that are
released prior to the Closing;

         (m) pay all trade payables, accrued expenses (including legal and other
professional fees and the finders fees identified in Schedule 4.2(g) attached
hereto) and payroll and other taxes in accordance with past practice and all
applicable terms thereof and legal requirements; and

         (n) not authorize any of, or commit or agree to take any of, the
foregoing prohibited actions.

         5.5 CONDUCT OF NIC PENDING THE CLOSING DATE. NIC agrees that, except
with the prior written consent of the Conquest Members, prior to the Closing
Date NIC shall:

         (a) operate the NIC Assets only in the usual, regular and ordinary
manner, on a basis consistent with past practice and, to the extent consistent
with such operation, use its reasonable efforts to preserve the NIC Assets
intact, and comply with and perform in all material respects all laws and
contractual and other obligations applicable to the NIC Assets;

         (b) not dispose of or abandon any of the NIC Assets, permit or allow
any of the NIC Assets to become subject to any Liens, or waive any material
claims or rights relating to the NIC Assets;

         (c) not transfer any rights of material value of the NIC Assets or
modify or change in any material respect any existing license, contract or other
document relating to the operations of the NIC Assets, other than in the
ordinary course of business consistent with past practice;

         (d) not pledge or otherwise use any NIC Assets as collateral or
security for any indebtedness of NIC or any other Person other than liens
arising in the ordinary course of business under existing agreements that are
released prior to the Closing; and

         (e) not authorize any of, or commit or agree to take any of, the
foregoing prohibited actions.

         5.6 PUBLIC STATEMENTS. Before any party shall release any information
concerning this Agreement or the matters contemplated hereby which is intended
for or may result in public dissemination thereof, they shall cooperate with the
other parties, shall furnish drafts of all documents or proposed oral statements
to the other parties, provide the other parties the opportunity to review and
comment upon any such documents or statements and shall not release or permit
release of any such information

<PAGE>

without the consent of the other parties, except to the extent required by
applicable law or the rules of any securities exchange or automated quotation
system on which its securities are traded.

         5.7      ADDITIONAL COVENANTS OF THE CONQUEST MEMBERS.

         (a) Each Conquest Member acknowledges that: (i) he has occupied a
position of trust and confidence with Conquest and has become familiar with
Conquest's Confidential Information; (ii) Conquest's products and services are
marketed throughout the United States; (iii) Conquest competes with other
businesses that are or could be located in any part of the United States; and
(iv) the confidentiality obligations and covenant not to compete set forth below
are reasonable and necessary to protect and preserve the Conquest business.

         (b) For purposes of this Agreement, "Confidential Information" shall
mean any and all of the following which are the subject of reasonable efforts to
maintain their secrecy and which derive independent economic value (whether
actual or potential) from not being generally known to other persons: compute
software and programs (including object code and source code); computer software
and database technologies, systems, structures and architectures (and related
processes, formulae, compositions, improvements, devices, inventions and other
information); inventions and ideas; successes and failures; specifications;
processes; past, current and planned research and development; price lists;
market studies; business plans; and other information relating to the business
operations of Conquest. The following information is not regarded as
confidential and is excluded from the definition of Confidential Information:

                  (i) information which at the time of disclosure to the
Conquest Member was in the public domain or which, after disclosure to the
Conquest Member, became part of the public domain through no action by, or fault
of, the Conquest Member;

                  (ii) information which can be shown by the Conquest Member
through tangible evidence to have been know to the Conquest Member at the time
of disclosure and not acquired directly or indirectly as a consequence of or
through his employment or ownership status with Conquest or Conquest Software,
Inc.; or

                  (iii) information which was received by the Conquest Member
from a third party having the legal right to transmit it.

         (c) Each Conquest Member agrees that he will not disclose or use any
Confidential Information, except as required for the faithful performance of his
duties to the Company and that he will take reasonable precautions against the
unauthorized disclosure or use of Confidential Information.

         (d) Each Conquest Member further covenants that, in order to protect
the value of the Conquest membership interests and other assets being
contributed to the

<PAGE>

Company, he shall not for a period of two (2) years from the date of this
Agreement, directly or indirectly engage (whether as owner, partner,
investor, employee, advisor, consultant, contracting party, referring source
or otherwise) in any business anywhere in the United States that is in
competition with the Company's Business (as defined in the Investors' Rights
Agreement, attached hereto). This covenant not to compete includes, but is
not limited to, activities with respect to software object technology design,
development, sales or consulting involving systems for the filing, searching,
indexing and database management of Uniform Commercial Code documents,
corporation documents and records, real estate and land records, motor
vehicle registration, titles, licensing and records, court documents and
records, trademark registration, professional licensing and tax assessment.
Notwithstanding the foregoing, a Conquest Member may purchase or otherwise
acquire up to (but not more than) one percent of any class of securities of
any enterprise (but without otherwise participating in the activities of such
enterprise) if such securities are listed on any national or regional
securities exchange or have been registered under Section 12(g) of the
Securities Exchange Act of 1934, as amended.

                                   ARTICLE VI

                         CONDITIONS PRECEDENT TO CLOSING

         6.1 CONDITIONS TO EACH PARTY'S CLOSING OBLIGATIONS. The respective
obligations of each party to consummate the transactions contemplated by this
Agreement shall be subject to the fulfillment of the following conditions on or
prior to the Closing Date:

         (a) No statute, rule, regulation, executive order, decree, or
preliminary or permanent injunction shall have been enacted, entered,
promulgated or enforced by any state, federal or foreign court of competent
jurisdiction or governmental authority which prohibits consummation of the
transactions contemplated by this Agreement and the Related Agreements, whether
temporary, preliminary or permanent; provided, however, that the parties hereto
shall use their reasonable commercial efforts to have such order, decree or
injunction vacated; and

         (b) all orders, consents and approvals of Governmental Authorities
legally required for the consummation of the transactions contemplated by this
Agreement shall have been obtained and be in effect at the Closing Date, except
those for which failure to obtain such consents and approvals would not,
individually or in the aggregate, have a material adverse effect on the assets,
business or condition (financial or otherwise) of the Company.

         6.2 CONDITIONS TO THE CLOSING OBLIGATIONS OF NIC. The obligations of
NIC to consummate the transactions contemplated by this Agreement shall be
subject to the fulfillment of the following additional conditions:

         (a) the Conquest Members shall have performed in all material respects
its obligations under this Agreement required to be performed by it at or prior
to the Closing Date, and the representations and warranties of the Conquest
Members set forth in this

<PAGE>

Agreement shall be true and correct in all material respects at and as of the
Closing Date as if made at and as of such time, except to the extent that any
such representation or warranty specifically speaks to a specified date, in
which case such representation or warranty shall have been true and correct
as of such date; and

         (b) the Company shall have all intellectual property rights necessary
to conduct its business, except for such rights the failure of which to have
would not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the assets, business or condition (financial or
otherwise) of the Company.

         6.3 CONDITIONS TO THE CLOSING OBLIGATION OF THE CONQUEST MEMBERS. The
obligation of the Conquest Members to consummate the transactions contemplated
by this Agreement shall be subject to the fulfillment of the following
additional conditions:

         (a) NIC shall have performed in all material respects its obligations
under this Agreement required to be performed by it at or prior to the Closing
Date, and the representations and warranties of NIC set forth in this Agreement
shall be true and correct in all material respects at and as of the Closing Date
as if made at and as of such time, except to the extent that any such
representation or warranty specifically speaks to a specified date, in which
case such representation or warranty shall have been true and correct as of such
date; and

         (b) the Company shall have all intellectual property rights necessary
to conduct its business, except for such rights the failure of which to have
would not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on the assets, business or condition (financial or
otherwise) of the Company.

                                   ARTICLE VII

                                   TERMINATION

         7.1 TERMINATION. This Agreement may be terminated at any time prior to
the Closing by:

         (a)      the mutual written consent of NIC and the Conquest Members;

         (b) either NIC or the Conquest Members if (i) any Governmental
Authority, the consent of which is a condition to the obligations of each party
hereto to consummate the transactions contemplated hereby, shall have determined
not to grant its consent (or imposes material conditions with respect thereto
such that the condition precedent set forth in Section 6.1(c) is incapable of
being satisfied) and all appeals of such determination shall have been taken and
have been unsuccessful; or (ii) any court of competent jurisdiction in the
United States shall have issued an order, judgment or decree (other than a
temporary restraining order) restraining, enjoining or otherwise prohibiting the
transactions contemplated hereby and such order, judgment or decree shall have
become final and nonappealable;

<PAGE>

         (c) NIC if there has been a material breach by a Conquest Member of any
representation, warranty, covenant or agreement set forth in this Agreement,
which breach has not been cured within ten days following receipt by the
Conquest Members of notice of such breach;

         (d) the Conquest Members if there has been a material breach by NIC of
any representation, warranty, covenant or agreement set forth in this Agreement,
which breach has not been cured within ten days following receipt by NIC of
notice of such breach; or

         (e) either NIC or the Conquest Members by written notice to the other
on or after February 15, 2000 if the Closing has not occurred prior to receipt
of such notice.

         7.2 EFFECT OF TERMINATION. In the event of termination of this
Agreement as provided in Section 7.1 hereof, this Agreement shall forthwith
become void (except this Section 7.2, and Sections 5.6 hereof, which shall
survive the termination) and there shall be no liability on the part of any
parties or their respective officers or directors except for any breach of any
of its obligations under Section 5.6 hereof. Notwithstanding the foregoing, no
party hereto shall be relieved from liability for any willful breach of this
Agreement.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         8.1 INDEMNIFICATION BY NIC AND THE CONQUEST MEMBERS. NIC and each
Conquest Member hereby agree to indemnify the Company and defend and hold it
harmless from and against any and all claims, demands, liabilities, costs,
expenses, penalties, damages and losses, including, without limitation,
attorneys' fees, resulting from any misrepresentation or breach of warranty or
breach of covenant made by such party in this Agreement or in any document,
certificate, or exhibit given or delivered to the Company pursuant to or in
connection with this Agreement.

         8.2 SURVIVAL. The indemnification provisions of Section 8.1 shall
survive beyond the Closing. Notwithstanding the foregoing, the obligations to
indemnify the Company and to hold it harmless for misrepresentations and
breaches of warranties made in this Agreement shall terminate when the
applicable representation or warranty terminates pursuant to Section 4.3 hereof;
provided, however, that such obligation to indemnify and hold harmless shall not
terminate with respect to any item as to which the Company shall have, before
the expiration of the applicable period, previously made a claim by delivering a
notice (stating in reasonable detail the basis of such claim) to the
indemnifying party.

                                   ARTICLE IX

                               GENERAL PROVISIONS

<PAGE>

         9.1 NOTICES. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the
party to be notified; (ii) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient, if not, then on the next business
day; or (iii) one day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All
communications shall be sent to the respective parties at the addresses or
facsimile numbers set forth below:

         If to the Conquest Members:

                  To the address set forth below the Conquest Member's signature
                  hereto

         with a copy to:

                  Boardman, Suhr, Curry & Field LLP
                  Fourth Floor
                  One South Pinckney Street
                  P.O. Box 927
                  Madison, Wisconsin 53701-0927
                  Attention:  Jon C. Nordenberg
                  Telecopier: (608) 283-1709

         If to NIC:

                  Jim Dodd
                  President and Chief Executive Officer
                  National Information Consortium, Inc.
                  12 Corporate Woods
                  10975 Benson Street, Suite 390
                  Overland Park, Kansas 66210
                  Telecopier: 877-456-3468

         with a copy to:

                  Morrison & Foerster LLP
                  425 Market Street
                  San Francisco, California 94105
                  Attention: John W. Campbell III, Esq.
                  Telecopier: 415-268-7522

         9.2 ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding between the parties hereto with respect to the subject matter
hereof.

         9.3 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument.

<PAGE>

         9.4 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado.

         9.5 INTERPRETATION OF AGREEMENT. The article, section and other
headings of this Agreement are for convenience of reference only and shall not
be construed to affect the meaning of any provision contained herein.

         9.6 NO ASSIGNMENT; SUCCESSORS AND ASSIGNS. The parties' respective
rights and obligations hereunder may not be assigned, transferred, pledged, or
encumbered, in any manner, direct or indirect, contingent or otherwise, in whole
or in part, voluntarily or by operation of law, without the prior written
consent of the other parties, provided that the foregoing shall not apply to any
assignment by operation of law to any successor Person in any merger or
consolidations, This Agreement shall be binding on the parties hereto and their
respective successors and permitted assigns.

         9.7 EXPENSES. Except as set forth in this Agreement, whether or not the
transactions contemplated by this Agreement are consummated, all legal and other
costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such
costs.

         IN WITNESS WHEREOF, the parties hereto have entered into this Agreement
as of the date first set forth above.

                               NATIONAL INFORMATION CONSORTIUM, INC.

                               By: /s/ Kevin Childress
                                   -------------------------------------------
                                     KEVIN CHILDRESS
                                     Chief Financial Officer

                               Address:   National Information Consortium, Inc.
                                          12 Corporate Woods
                                          10975 Benson Street, Suite 390
                                          Overland Park, Kansas 66210
                                          Facsimile: __________

                               CONQUEST, INC., A NIC ENTITY

                               /s/ William Birdsall
                               -------------------------------------------
                               By:             William Birdsall
                               Address:        464 Turner Driver, Suite 5

                                               Durango, CO 81301

<PAGE>

                               CONQUEST MEMBERS:

                               William Birdsall

                               /s/ William Birdsall
                               -------------------------------------------
                               Address:        25 Lewis Mountain Lane
                                               Durango, CO 81301

                               The Nelson Family Foundation Inc.

                               /s/ Jerry Nelson
                               -------------------------------------------
                               By:             Jerry Nelson
                               Address:        8787 E. Pinnacle Peak Road

                                               Suite 200
                                               Scottsdale, AZ 85255

                               Peter Glick

                               /s/ Peter Glick
                               -------------------------------------------
                               Address:        117 Sunrise Lane
                                               Durango, CO 81301

                               Thomas Sullivan, Sr.

                               /s/ Thomas Sullivan, Sr.
                               -------------------------------------------
                               Address:        6390 E. Tanque Verde Road
                                               Tuscon, AZ 85715

                               William Eckard

                               /s/ William Eckard
                               -------------------------------------------
                               Address:        5566 Country Road, #203
                                               Durango, CO 81301

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