Document:

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                                    CONTRACT
                         BETWEEN THE STATE OF TENNESSEE,
                    DEPARTMENT OF FINANCE AND ADMINISTRATION
                                       AND
                NATIONAL INFORMATION CONSORTIUM USA, INCORPORATED

This Contract, by and between the State of Tennessee, Department of Finance and
Administration, hereinafter referred to as the "State" and National Information
Consortium USA, Incorporated, hereinafter referred to as the "Contractor," is
for the provision of an Internet Portal and associated support services, as
further defined in the "SCOPE OF SERVICES."

The Contractor is a for-profit corporation. The Contractor's address is:

12 Corporate Woods
10975 Benson Street, Suite 390
Overland Park, KS 66210

The Contractor's place of incorporation or organization is Kansas.

A.      SCOPE OF SERVICES:

A.1.    The Contractor agrees to perform the services as defined in the Request
        for Proposals for Portal Services (RFP Number 31703-004), including all
        documents referenced in Subsection E.8, below.

B.      CONTRACT TERM:

B.1.    CONTRACT TERM. This Contract shall be effective for the period
        commencing on 8/28/2000 and ending on 8/27/2003. The State shall have no
        obligation for services rendered by the Contractor which are not
        performed within the specified period.

B.2.    TERM EXTENSION. The State reserves the right to extend this Contract for
        two additional one-year periods, provided that the State notifies the
        Contractor in writing of its intention to do so at least thirty (30)
        days prior to the contract expiration date. An extension of the term of
        this Contract will be effected through an amendment to the Contract. If
        the extension of the Contract necessitates additional funding beyond
        that which was included in the original Contract, the increase in the
        State's maximum liability will also be effected through an amendment to
        the Contract and shall be based upon rates provided for in the original
        contract.

C.      PAYMENT TERMS AND CONDITIONS:

C.1.    MAXIMUM LIABILITY. In no event shall the maximum liability of the State
        under this Contract exceed Two Million Eight Hundred Sixty-Two Thousand
        Five Hundred Dollars ($2,862,500.00). The Service Rates in Section C.3
        shall constitute the entire compensation due the Contractor for the
        Service and all of the Contractor's obligations hereunder regardless of
        the difficulty, materials or equipment required. The Service Rates
        include, but are not limited to, all applicable taxes, fees, overheads,
        and all other direct and indirect costs incurred or to be incurred by
        the Contractor.

        The Contractor is not entitled to be paid the maximum liability for any
        period under the Contract or any extensions of the Contract for work not
        requested by the State. The maximum liability represents available funds
        for payment to the Contractor and does not guarantee payment of any such
        funds to the Contractor under this Contract unless the State requests
        work and the Contractor performs said work. In which case, the
        Contractor shall be paid in accordance with the Service Rates detailed
        in Section C.3. The State is under no obligation to request work from
        the Contractor in any specific
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        dollar amounts or to request any work at all from the Contractor during
        any period of this Contract.

C.2.    COMPENSATION FIRM. The Service Rates and the Maximum Liability of the
        State under this Contract are firm for the duration of the Contract and
        are not subject to escalation for any reason unless amended.

C.3.    PAYMENT METHODOLOGY. The Contractor shall be compensated based on the
        Service Rates herein for units of service authorized by the State in a
        total amount not to exceed the Contract Maximum Liability established in
        Section C.1. The Contractor's compensation shall be contingent upon the
        satisfactory completion of units of service or project milestones
        defined in Section A. The Contractor shall be compensated based upon the
        following Service Rates and Payment Rates shown below:

<TABLE>
<CAPTION>
                                                       AMOUNT PER
        SERVICE UNIT/MILESTONE                         TRANSACTION
        ----------------------                         -----------
<S>                                                 <C>
        Driver's License renewals                        $2.50
        Driver's License reinstatements                  $1.00
        Professional License renewals                    $3.50
        Corporate Certificates and Copies                $2.00
        TENNCare Eligibility Verification                $0.00
        Personalized Motor Vehicle Tag                   $3.00
        Environmental Licenses and Permits               $2.00
        Simple Database Search                           $1.00
        Intermediate Database Search                     $1.00
        Vital Records                                    $1.00
</TABLE>

        The Contractor shall be compensated for securing and supporting Premium
        Service Subscribers on an annual basis, the following annual fee:

<TABLE>
<CAPTION>
        SERVICE UNIT/MILESTONE                      ANNUAL FEE
        ----------------------                      ----------
<S>                                              <C>
        Premium Service Subscriber                    $75.00
</TABLE>

        The Contractor shall be compensated for each Consulting Classification
        Skill, based on the following payment rate per hour:

<TABLE>
<CAPTION>
        SERVICE/CLASSIFICATION                 PAYMENT RATE PER HOUR
        ----------------------                 ---------------------
<S>                                         <C>
        Web Designer                                  $65.00
        Web Publisher                                 $55.00
        Advanced Web Publisher                        $80.00
        Web Programmer/Analyst                        $65.00
        Advanced Web Programmer/Analyst               $80.00
</TABLE>

        The Contractor shall submit monthly invoices, in form and substance
        acceptable to the State with all of the necessary supporting
        documentation, prior to any payment. Such
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        invoices shall be submitted for completed units of service or project
        milestones for the amount stipulated. The Contractor shall not be
        compensated for travel time to the primary location of service
        provision.

C.4.    TRAVEL COMPENSATION. The Contractor shall not be compensated or
        reimbursed for travel, meals, or lodging.

C.5     PAYMENT PROCEDURE. The State will pay the Portal Contractor upon
        submission and approval of a consolidated invoice. The consolidated
        invoice should be broken down by State agency and related Portal
        application and should be available to the State in an electronic file
        format. The Portal Contractor will capture relevant accounting
        information so that Portal processing fees can be properly recorded in
        the State's financial system.

        The Contractor must provide an on-line Premium Subscriber Billing System
        for premium service subscribers. Subscribers must be able to access and
        review their invoices on-line over the Portal. The State will define to
        the Contractor the accounting information, credit terms and processing
        cycle for this billing process. The Premium Service Subscribers will pay
        the Contractor based upon these invoices.

C.6.    PAYMENT OF INVOICE. The payment of the invoice by the State shall not
        prejudice the State's right to object to or question any invoice or
        matter in relation thereto. Such payment by the State shall neither be
        construed as acceptance of any part of the work or service provided nor
        as an approval of any of the amounts invoiced therein.

C.7.    INVOICE REDUCTIONS. The Contractor's invoice shall be subject to
        reduction for amounts included in any invoice or payment theretofore
        made which are determined by the State, on the basis of audits conducted
        in accordance with the terms of this contract, not to constitute proper
        remuneration for compensable services.

C.8.    DEDUCTIONS. The State reserves the right to deduct from amounts which
        are or shall become due and payable to the Contractor under this or any
        contract between the Contractor and the State of Tennessee any amounts
        which are or shall become due and payable to the State of Tennessee by
        the Contractor.

C.9.    AUTOMATIC DEPOSITS. The Contractor shall complete and sign an
        "Authorization Agreement for Automatic Deposit (ACH Credits) Form." This
        form shall be provided to the Contractor by the State. Once this form
        has been completed and submitted to the State by the Contractor all
        payments to the Contractor, under this or any other contract the
        Contractor has with the State of Tennessee shall be made by Automated
        Clearing House (ACH). The Contractor shall not invoice the State for
        services until the Contractor has completed this form and submitted it
        to the State.

D.      STANDARD TERMS AND CONDITIONS:

D.1.    REQUIRED APPROVALS. The State is not bound by this Contract until it is
        approved by the appropriate State officials in accordance with
        applicable Tennessee State laws and regulations.

D.2.    MODIFICATION AND AMENDMENT. This Contract may be modified only by a
        written amendment executed by all parties hereto and approved by the
        appropriate Tennessee State officials in accordance with applicable
        Tennessee State laws and regulations.

D.3.    TERMINATION FOR CONVENIENCE. The State may terminate this Contract
        without cause for any reason. Said termination shall not be deemed a
        Breach of Contract by the State. The State shall give the Contractor at
        least ninety (90) days written notice before the effective termination
        date.

D.3.a.  The Contractor shall be entitled to receive compensation for
        satisfactory, authorized service completed as of the termination date,
        but in no event shall the State be liable to the Contractor for
        compensation for any service which has not been rendered.
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D.3.b.  Upon such termination, the Contractor shall have no right to any actual
        general, special, incidental, consequential, or any other damages
        whatsoever of any description or amount.

D.4.    TERMINATION FOR CAUSE. If the Contractor fails to properly perform its
        obligations under this Contract in a timely or proper manner, or if the
        Contractor violates any terms of this Contract, the State shall have the
        right to immediately terminate the Contract and withhold payments in
        excess of fair compensation for completed services. Notwithstanding the
        above, the Contractor shall not be relieved of liability to the State
        for damages sustained by virtue of any breach of this Contract by the
        Contractor.

D.5.    SUBCONTRACTING. The Contractor shall not assign this Contract or enter
        into a subcontract for any of the services performed under this Contract
        without obtaining the prior written approval of the State. If such
        subcontracts are approved by the State, they shall contain, at a
        minimum, sections of this Contract pertaining to "Conflicts of Interest"
        and "Nondiscrimination" (sections D.6. and D.7.).

        Notwithstanding any use of approved subcontractors, the Contractor shall
        be the prime contractor and shall be responsible for all work performed.

D.6.    CONFLICTS OF INTEREST. The Contractor warrants that no part of the total
        Contract Amount shall be paid directly or indirectly to an employee or
        official of the State of Tennessee as wages, compensation, or gifts in
        exchange for acting as an officer, agent, employee, subcontractor, or
        consultant to the Contractor in connection with any work contemplated or
        performed relative to this Contract.

D.7.    NONDISCRIMINATION. The Contractor hereby agrees, warrants, and assures
        that no person shall be excluded from participation in, be denied
        benefits of, or be otherwise subjected to discrimination in the
        performance of this Contract or in the employment practices of the
        Contractor on the grounds of disability, age, race, color, religion,
        sex, national origin, or any other classification protected by Federal,
        Tennessee State constitutional, or statutory law. The Contractor shall,
        upon request, show proof of such nondiscrimination and shall post in
        conspicuous places, available to all employees and applicants, notices
        of nondiscrimination.

D.8.    RECORDS. The Contractor shall maintain documentation for all charges
        against the State under this Contract. The books, records, and documents
        of the Contractor, insofar as they relate to work performed or money
        received under this contract, shall be maintained for a period of three
        (3) full years from the date of the final payment and shall be subject
        to audit at any reasonable time and upon reasonable notice by the State,
        the Comptroller of the Treasury, or their duly appointed
        representatives. The financial statements shall be prepared in
        accordance with generally accepted accounting principles.

D.9.    MONITORING. The Contractor's activities conducted and records maintained
        pursuant to this Contract shall be subject to monitoring and evaluation
        by the State, the Comptroller of the Treasury, or their duly appointed
        representatives.

D.10.   PROGRESS REPORTS. The Contractor shall submit brief, periodic, progress
        reports to the State as requested.

D.11.   STRICT PERFORMANCE. Failure by any party to this Contract to insist in
        any one or more cases upon the strict performance of any of the terms,
        covenants, conditions, or provisions of this Contract shall not be
        construed as a waiver or relinquishment of any such term, covenant,
        condition, or provision. No term or condition of this Contract shall be
        held to be waived, modified, or deleted except by a written amendment
        signed by the parties hereto.

D.12.   INDEPENDENT CONTRACTOR. The parties hereto, in the performance of this
        Contract, shall not act as employees, partners, joint venturers, or
        associates of one another. It is
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        expressly acknowledged by the parties hereto that such parties are
        independent contracting entities and that nothing in this Contract shall
        be construed to create an employer/employee relationship or to allow
        either to exercise control or direction over the manner or method by
        which the other transacts its business affairs or provides its usual
        services. The employees or agents of one party shall not be deemed or
        construed to be the employees or agents of the other party for any
        purpose whatsoever.

        The Contractor, being an independent contractor and not an employee of
        the State, agrees to carry adequate public liability and other
        appropriate forms of insurance, including adequate public liability and
        other appropriate forms of insurance on the Contractor's employees, and
        to pay all applicable taxes incident to this Contract.

D.13.   STATE LIABILITY. The State shall have no liability except as
        specifically provided in this Contract.

D.14.   FORCE MAJEURE. The obligations of the parties to this contract are
        subject to prevention by causes beyond the parties' control that could
        not be avoided by the exercise of due care including, but not limited
        to, acts of God, riots, wars, strikes, epidemics or any other similar
        cause.

D.15.   STATE AND FEDERAL COMPLIANCE. The Contractor shall comply with all
        applicable State and Federal laws and regulations in the performance of
        this Contract.

D.16.   GOVERNING LAW. This Contract shall be governed by and construed in
        accordance with the laws of the State of Tennessee. The Contractor
        agrees that it will be subject to the exclusive jurisdiction of the
        courts of the State of Tennessee in actions that may arise under this
        Contract. The Contractor acknowledges and agrees that any rights or
        claims against the State of Tennessee or its employees hereunder, and
        any remedies arising therefrom, shall be subject to and limited to those
        rights and remedies, if any, available under TENNESSEE CODE ANNOTATED,
        Sections 9-8-101 through 9-8-407.

D.17.   COMPLETENESS. This Contract is complete and contains the entire
        understanding between the parties relating to the subject matter
        contained herein, including all the terms and conditions of the parties'
        agreement. This Contract supersedes any and all prior understandings,
        representations, negotiations, and agreements between the parties
        relating hereto, whether written or oral.

D.18.   SEVERABILITY. If any terms and conditions of this Contract are held to
        be invalid or unenforceable as a matter of law, the other terms and
        conditions hereof shall not be affected thereby and shall remain in full
        force and effect. To this end, the terms and conditions of this Contract
        are declared severable.

D.19.   HEADINGS. Section headings of this Contract are for reference purposes
        only and shall not be construed as part of this Contract.

E.      SPECIAL TERMS AND CONDITIONS:

E.1.    CONFLICTING TERMS AND CONDITIONS. Should any of these special terms and
        conditions conflict with any other terms and conditions of this
        Contract, these special terms and conditions shall control.

E.2.    COMMUNICATIONS AND CONTACTS. All instructions, notices, consents,
        demands, or other communications required or contemplated by this
        Contract shall be in writing and shall be made by facsimile
        transmission, by overnight courier service, or by first class mail,
        postage prepaid, addressed to the respective party at the appropriate
        facsimile number or address as set forth below OR to such other party,
        facsimile number, or address as may be hereafter specified by written
        notice.
<PAGE>

        The State:
        Bonnie Heithcock, State Portal Manager
        Department of Finance and Administration
        312 8th Avenue, North
        16th Floor, William R. Snodgrass Tennessee Tower
        615-741-3700 (voice)
        615-532-0471 (fax)

        The Contractor:
        Debra Luling, Portal General Manager
        National Information Consortium USA, Inc.
        534 South Kansas Avenue, Suite 1210
        Topeka, KS 66603-3406
        785-296-5275
        785-296-5563

        All instructions, notices, consents, demands, or other communications
        shall be considered effectively given as of the day of delivery; as of
        the date specified for overnight courier service delivery; as of three
        (3) business days after the date of mailing; or on the day the facsimile
        transmission is received mechanically by the telefax machine at the
        receiving location and receipt is verbally confirmed by the sender if
        prior to 4:30 p.m. CST. Any communication by facsimile transmission
        shall also be sent by United States mail on the same date of the
        facsimile transmission.

E.3.    SUBJECT TO FUNDS AVAILABILITY. The Contract is subject to the
        appropriation and availability of State and/or Federal funds. In the
        event that the funds are not appropriated or are otherwise unavailable,
        the State reserves the right to terminate the Contract upon written
        notice to the Contractor. Said termination shall not be deemed a breach
        of Contract by the State. Upon receipt of the written notice, the
        Contractor shall cease all work associated with the Contract. Should
        such an event occur, the Contractor shall be entitled to compensation
        for all satisfactory and authorized services completed as of the
        termination date. Upon such termination, the Contractor shall have no
        right to recover from the State any actual, general, special,
        incidental, consequential, or any other damages whatsoever of any
        description or amount.

E.4.    BREACH. A party shall be deemed to have breached the Contract if any of
        the following occurs:

        I)      failure to perform in accordance with any term or provision of
                the Contract;

        II)     partial performance of any term or provision of the Contract;

        III)    any act prohibited or restricted by the Contract, or

        IV)     violation of any warranty.

        For purposes of this contract, items I through IV shall hereinafter be
        referred to as a "Breach."

E.4.a.  Contractor Breach--In event of a Breach by Contractor, the state shall
        have available the following remedies as described further herein:

E.4.a.i.   Actual Damages and any other remedy available at law or equity;

E.4.a.ii.  Liquidated Damages--the State may withhold as liquidated damages the
           amounts designated on Attachment A of this contract from any amounts
           owed Contractor.

E.4.a.ii.(1)    The State shall notify Contractor in writing of the Breach and
                the amounts to be withheld as Liquidated Damages.

E.4.a.ii.(2)    The parties agree that due to the complicated nature of the
                Contractor's obligations under this Contract it would be
                difficult to specifically
<PAGE>

                designate a monetary amount for a Breach by Contractor as said
                amounts are likely to be uncertain and not easily proven.
                Contractor hereby represents and covenants it has carefully
                reviewed the liquidated damages contained in Attachment A and
                agree that said amounts represent a reasonable relationship
                between the amount and what might reasonably be expected in the
                event of Breach, and are a reasonable estimate of the damages
                that would occur from a Breach.

E.4.a.ii.(3)    It is hereby agreed between the parties that the liquidated
                damages represent solely the damages and injuries sustained by
                the State in losing the benefit of the bargain with Contractor
                and do not include: any injury or damage sustained by a third
                party and Contractor agrees that the liquidated damage amount is
                in addition to any amounts Contractor may owe the State pursuant
                to the indemnity provision or other section of this Contract;

E.4.a.ii.(4)    The State may continue to withhold the liquidated damages or a
                portion thereof until the Contractor cures the Breach, the State
                exercises its option to declare a Partial Default, or the State
                terminates the Contract.

E.4.a.ii.(5)    The State is not obligated to assess liquidated damages before
                availing itself of any other remedy.

E.4.a.ii.(6)    The State may chose to discontinue liquidated damages and avail
                itself of any other remedy available under this Contract or at
                law or equity; provided, however, Contractor shall receive a
                credit for said liquidated damages previously withheld except in
                the event of a Partial Default.

E.4.a.iii.      Partial Default

E.4.a.iii.(1)   In the event the State declares a Partial Default, the State
                shall provide written notice to the Contractor of the following:

E.4.a.iii.(1)(a)        The date which Contractor shall terminate providing the
                        service associated with the Breach; and

E.4.a.iii.(1)(b)        The date the State will begin to provide the service
                        associated with the Breach.

E.4.a.iii.(2)   The State may revise the time periods contained in the notice
                written to the Contractor.

E.4.a.iii.(3)   In the event the State declares a Partial Default, the State may
                withhold, together with any other damages associated with the
                Breach, from the amounts due the Contractor the greater of:

E.4.a.iii.(3)(a)        amounts which would be paid the Contractor to provide
                        the defaulted service as provided in subsection (4); or

E.4.a.iii.(3)(b)        the cost to the State of providing the defaulted
                        service, whether said service is provided by the State
                        or a third party.

E.4.a.iii.(4)   To determine the amount the Contractor is being paid for any
                particular service, the Department shall be entitled to receive
                within five (5) days any requested material from Contractor. The
                State shall make the final and binding determination of said
                amount.
<PAGE>

E.4.a.iii.(5)   The State may assess liquidated damages against the Contractor
                for any failure to perform which ultimately results in a Partial
                Default with said liquidated damages to cease when said Partial
                Default is effective.

E.4.a.iii.(6)   Upon Partial Default, the Contractor shall have no right to
                recover from the State any amount whether actual, general,
                special, incidental, consequential, or of any other whatsoever
                description.

E.4.a.iii.(7)   Contractor agrees to cooperate fully with the State in the event
                a Partial Default is taken.

E.4.a.iv.       Termination of the Contract--In the event of a Breach by
                Contractor, the State may terminate the Contract immediately or
                in stages.

E.4.a.iv.(1)    The Contractor shall be notified of the termination writing by
                the State. Said notice shall hereinafter be referred to as
                Termination Notice.

E.4.a.iv.(2)    The Termination Notice may specify either that the termination
                is to be effective immediately, on a date certain in the future,
                or that the Contractor shall cease operations under this
                Contract in stages.

E.4.a.iv.(3)    Contractor agrees to cooperate with the State in the event of a
                termination, Partial Default or Partial Takeover.

E.4.a.iv.(4)    In the event of a termination, the State may withhold any
                amounts which may be due Contractor without waiver of any other
                remedy or damages available to the State at law or at equity.

E.4.a.iv.(5)    In the event of a termination, the Contractor shall be liable to
                the State for any and all damages incurred by the State and any
                and all expenses incurred by the State which exceed the amount
                the State would have paid Contractor under this Contract.

E.4.b.  State Breach--In the event of a Breach of contract by the State, the
        Contractor shall notify the State in writing within thirty (30) days of
        any Breach of contract by the State. Said notice shall contain a
        description of the Breach.

E.4.b.i.        Failure by the Contractor to provide the written notice
                described in section E.4.b. shall operate as an absolute waiver
                by the Contractor of the State's Breach.

E.4.b.ii.       In no event shall any Breach on the part of the State excuse the
                Contractor from full performance under this Contract.

E.4.b.iii.      In the event of Breach by the State, the Contractor may avail
                itself of any remedy at law in the forum with appropriate
                jurisdiction; provided, however, failure by the Contractor to
                give the State written notice and opportunity to cure as
                described in section E.4.b. operates as a waiver of the State's
                Breach.

E.4.b.iv.       Failure by the Contractor to file a claim before the appropriate
                forum in Tennessee with jurisdiction to hear such claim within
                one (1) year of the notice described in section E.4.b. shall
                operate as a waiver of said claim in its entirety. It is agreed
                by the parties this provision establishes a contractual period
                of limitations for any claim brought by the Contractor.

E.5.    PARTIAL TAKEOVER. The State may, at its convenience and without cause,
        exercise a partial takeover of any service which the Contractor is
        obligated to perform under this Contract, including but not limited to
        any service which is the subject of a subcontract between Contractor and
        a third party, although the Contractor is not in Breach (hereinafter
<PAGE>

        referred to as "Partial Takeover"). Said Partial Takeover shall not be
        deemed a Breach of Contract by the State.

E.5.a.  Contractor shall be given at least thirty (30) days prior written notice
        of said Partial Takeover with said notice to specify the area(s) of
        service the State will assume and the date of said assumption.

E.5.b.  Any Partial Takeover by the State shall not alter in any way
        Contractor's other obligations under this Contract.

E.5.c.  The State may withhold from amounts due the Contractor the amount the
        Contractor would have been paid to deliver the service as determined by
        the State. The amounts shall be withheld effective as of the date the
        State assumes the service.

E.5.d.  Upon Partial Takeover, the Contractor shall have no right to recover
        from the State any actual, general, special, incidental, consequential,
        or any other damages whatsoever of any description or amount.

E.6.    PERFORMANCE BOND. Upon approval of the Contract by all appropriate State
        officials in accordance with applicable State laws and regulations, the
        Contractor shall furnish a performance bond in the amount equal to one
        million dollars ($1,000,000.00), guaranteeing full and faithful
        performance of all undertakings and obligations under this Contract for
        the initial Contract term and all extensions thereof. The bond shall be
        in the manner and form prescribed by the State and must be issued
        through a company licensed to issue such a bond in the State of
        Tennessee.

        The Contractor shall obtain the required performance bond in form and
        substance acceptable to the State and provide it to the State no later
        than 9/8/2000. Failure to provide the performance bond prior to the
        deadline as required shall result in contract termination.

        In lieu of a performance bond, an irrevocable letter of credit may be
        substituted as a surety deposit. The substitution of a performance bond
        with a surety deposit, as well as the form and substance of such a
        surety deposit, must be approved by the State prior to its submittal and
        may be rejected by the State at its sole discretion.

E.7.    STATE FURNISHED PROPERTY. The Contractor shall be responsible for the
        correct use, maintenance, and protection of all articles of
        nonexpendable, tangible, personal property furnished by the State for
        the Contractor's temporary use under this Contract. Upon termination of
        this Contract, all property furnished shall be returned to the State in
        good order and condition as when received, reasonable use and wear
        thereof excepted. Should the property be destroyed, lost, or stolen, the
        Contractor shall be responsible to the State for the residual value of
        the property at the time of loss.

E.8.    INCORPORATION OF ADDITIONAL DOCUMENTS. Included in this Contract by
        reference are the following documents:

        I)      The Contract document and its attachments

        II)     All Clarifications and addenda made to the Contractor's Proposal

        III)    The Request for Proposal and its associated amendments

        IV)     Technical Specifications provided to the Contractor

        V)      The Contractor's Proposal

        In the event of a discrepancy or ambiguity regarding the Contractor's
        duties, responsibilities, and performance under this Contract, these
        documents shall govern in order of precedence detailed above.

E.9.    WORKPAPERS SUBJECT TO REVIEW. The Contractor shall make all audit,
        accounting, or financial analysis workpapers, notes, and other
        documentation available for review by the
<PAGE>

        Comptroller of the Treasury or his representatives, upon request, during
        normal working hours either while the analysis is in progress or
        subsequent to the completion of this Contract.

E.10.   PUBLIC FUNDING NOTICE. All notices, informational pamphlets, press
        releases, research reports, signs, and similar public notices prepared
        and released by the Contractor relative to this Contract shall include
        the statement, "This project is funded under an agreement with the State
        of Tennessee." Any such notices by the Contractor shall be approved by
        the State.

E.11.   PROHIBITED ADVERTISING. The Contractor shall not refer to this Contract
        or the Contractor's relationship with the State hereunder in commercial
        advertising in such a manner as to state or imply that the Contractor or
        the Contractor's services are endorsed.

E.12.   CONFIDENTIALITY OF RECORDS. Strict standards of confidentiality of
        records shall be maintained in accordance with the law. All material and
        information provided to the Contractor by the State or acquired by the
        Contractor on behalf of the State whether verbal, written, magnetic
        tape, cards or otherwise shall be regarded as confidential information
        in accordance with the provisions of State law and ethical standards and
        shall not be disclosed, and all necessary steps shall be taken by the
        Contractor to safeguard the confidentiality of such material or
        information in conformance with State law and ethical standards.

        The Contractor will be deemed to have satisfied its obligations under
        this section by exercising the same level of care to preserve the
        confidentiality of the State's information as the Contractor exercises
        to protect its own confidential information so long as such standard of
        care does not violate the applicable provisions of the first paragraph
        of this section.

        The Contractor's obligations under this section do not apply to
        information in the public domain; entering the public domain but not
        from a breach by the Contractor of this Contract; previously possessed
        by the Contractor without written obligations to the State to protect
        it; acquired by the Contractor without written restrictions against
        disclosure from a third party which, to the Contractor's knowledge, is
        free to disclose the information; independently developed by the
        Contractor without the use of the State's information; or, disclosed by
        the State to others without restrictions against disclosure.

        It is expressly understood and agreed the obligations set forth in this
        section shall survive the termination of this Contract.

E.13.   COPYRIGHTS AND PATENTS. The Contractor agrees to indemnify and hold
        harmless the State of Tennessee as well as its officers, agents, and
        employees from and against any and all claims or suits which may be
        brought against the State for infringement of any laws regarding patents
        or copyrights which may arise from the Contractor's performance of this
        Contract. In any such action brought against the State, the Contractor
        shall satisfy and indemnify the State for the amount of any final
        judgment for infringement. The Contractor further agrees it shall be
        liable for the reasonable fees of attorneys for the State in the event
        such service is necessitated to enforce the terms of this Contract or
        otherwise enforce the obligations of the Contractor to the State. The
        State shall give the Contractor written notice of any such claim or suit
        and full right and opportunity to conduct the Contractor's own defense
        thereof.

E.14.   PUBLIC ACCOUNTABILITY. If this Contract involves the provision of
        services to citizens by the Contractor on behalf of the State, the
        Contractor agrees to establish a system through which recipients of
        services may present grievances about the operation of the service
        program, and the Contractor agrees to display a sign stating:

        "NOTICE: This Contractor is a recipient of taxpayer funding. If you
        observe an employee engaging in any activity which you consider to be
        illegal or improper, please call the State Comptroller's toll free
        hotline: 1-800-232-5454"
<PAGE>

        Said sign shall be displayed in a prominent place, located near the
        passageway(s) through which the public passes to receive State funded
        services.

E.15.   AUTHORIZED INDIVIDUALS. Each party hereto has provided the other party
        hereto with a list identifying the individuals from whom the other party
        is authorized to accept any notices, requests, demands, or other advice
        which may be given hereunder by the party providing such list. Said
        lists, which are attached hereto as Attachment B, shall be valid until
        revoked or amended by further written notice. The parties hereto shall
        only be entitled to rely on notices, requests, demands, or other advice
        given by such individuals.

E.16.   YEAR 2000. Notwithstanding any provisions contained in the contract, the
        contractor warrants that each hardware, commercial or custom software,
        firmware, and middleware product delivered under this contract and
        listed below ("listed item") shall be able to accurately process
        date/time data (including, but not limited to, displaying, calculating,
        comparing and sequencing) from, into, and between the twentieth and
        twenty-first centuries, including leap year calculations, when used in
        accordance with the product documentation provided by the contractor and
        subject to the following:

        I.      In the case of hardware, commercial software, firmware, or
                middleware, the aforementioned warranty shall apply to the
                extent that information technology not provided pursuant to this
                contract, but used in combination with the listed items,
                properly exchanges date/time data with it.

        II.     Notwithstanding the foregoing, in cases involving any
                development of new software or system(s) ("custom software"),
                the contractor further warrants that any contractor-provided
                data interfaces between listed items and items or systems not
                provided pursuant to this contract shall accurately process
                date/time data, as defined above and further qualified by
                specific interface requirements; provided that the date/time
                data is accurate within the items or systems not provided.

        In any case, if the contract requires that specific listed items must
        perform as a system in accordance with the foregoing warranty, then that
        warranty shall apply to those listed products as a system. Nothing in
        this warranty shall be construed to limit any rights or remedies the
        State may otherwise have under this contract with respect to defects
        other than year 2000 performance.

        The remedies available to the State under this warranty shall include
        repair or replacement of any listed product whose non-compliance is
        discovered and made known to the contractor in writing within the term
        of that listed item's warranty, as expressed elsewhere in this
        agreement. The contractor shall proceed with repair or replacement
        immediately upon notification by the State of non-compliance, time being
        of the essence.

        The State of Tennessee, at its sole option, may require the contractor,
        at any time, to demonstrate that procedures have been established to
        comply with all the obligations contained herein.

        This Section shall constitute the exclusive warranty regarding the Year
        2000 and is in lieu of all other Year 2000 warranties, whether express
        or implied, including the implied warranties of merchantability and
        fitness for a particular purpose.

E.17.   YEAR 2000 HOLD HARMLESS. As required by Tennessee Code Annotated,
        Section 12-4-118, the contractor shall hold harmless and indemnify the
        State of Tennessee; its officers and employees; and any agency or
        political subdivision of the State for any breach of contract caused
        directly or indirectly by the failure of computer software or any device
        containing a computer processor to accurately or properly recognize,
        calculate, display, sort or otherwise process dates or times.
<PAGE>

E.18.   ADDITIONAL PORTAL APPLICATION SERVICES. During the course of this
        Contract, the State may request the Contractor to design additional
        applications for the State Service Portal. The additional applications
        must be within the scope of this Contract. The State will provide the
        Contractor with documented requirements for the application and the
        Contractor will provide the requesting agency a proposed transaction fee
        or funding mechanism for the application. If the requesting agency and
        the Contractor mutually agree on the transaction fee or funding
        mechanism, the requested application and the associated transaction fee
        or funding mechanism will be reviewed by the Portal Advisory Committee.
        The Portal Advisory Committee must approve and prioritize all Portal
        applications. Approval of additional portal applications will be
        effected through an amendment to the contract before any work can begin
        on any approved application.

E.19.   STATE OWNERSHIP OF WORK PRODUCTS. The State shall have all ownership
        right, title, and interest, including ownership of copyright, in all
        work products, including application software, source code, or
        modifications thereof and associated documentation, created, designed,
        and/or developed solely for the State under this Contract (known
        collectively as "Work Products"). The State shall have royalty-free,
        non- exclusive, and unlimited rights to use, disclose, reproduce, and/or
        publish, for any purpose whatsoever, all said Work Products. The
        Contractor shall furnish the Work Products upon request of the State, in
        accordance with the Contract and applicable State law. The Contractor
        will be able to use the application source code and documentation where
        they may have applicability with other state and local government
        entities.

E.20.   CONTRACTOR PROPRIETARY PRODUCTS. The Contractor shall retain ownership
        right, title, and interest in the portions of the Portal applications
        that were not developed solely using State moneys or resources (known
        collectively as "Contractor Proprietary Products").

        The Contractor hereby grants the State a perpetual, royalty-free,
        irrevocable, unlimited, and nonexclusive right to use the Contractor
        Proprietary Products for the State's business purposes, including, but
        not limited to, use for State's business purposes by any future service
        providers with whom the State may contract. The Contractor warrants that
        Contractor is duly authorized to grant this right.

E.21.   WORK PRODUCTS IN ESCROW. All Work Products and Contractor Portal
        Applications used to support the State Service Portal shall be
        maintained in escrow with an escrow agent. The State shall have access
        to the Products held in escrow in the event of Contractor business
        failure, Contractor breach of contract, Contract termination, or as
        necessary for disaster recovery purposes.

E.22.   POST-CONTRACT TRANSITION SERVICES. In the event that a different vendor
        is awarded the subsequent contract, the Contractor agrees to provide
        continuing services as the State transitions itself to receive such
        services from the new vendor. The services required are those as defined
        under this contract and shall be provided on a month-to-month basis for
        a period not to exceed twelve (12) months. Charges for these services
        shall be at the unit rates then current at the time of contract
        termination.
<PAGE>

IN WITNESS WHEREOF:

NATIONAL INFORMATION CONSORTIUM USA, INC.

--------------------------------------------------------------------------------
HARRY HERINGTON, PRESIDENT

DEPARTMENT OF FINANCE AND ADMINISTRATION:

--------------------------------------------------------------------------------
C. WARREN NEEL, PH.D., COMMISSIONER                    DATE

APPROVED:

DEPARTMENT OF FINANCE AND ADMINISTRATION:

--------------------------------------------------------------------------------
C. WARREN NEEL, PH.D., COMMISSIONER                    DATE

COMPTROLLER OF THE TREASURY:

--------------------------------------------------------------------------------
JOHN G. MORGAN, COMPTROLLER OF THE TREASURY            DATE

<PAGE>

                                  ATTACHMENT A

                               LIQUIDATED DAMAGES
                            SERVICE LEVEL AGREEMENTS

The additional remedies identified in this section shall not be construed to
limit or restrict the State's application of any other remedies available under
this Contract. As used in A, B, and C below, "total monthly costs for all
effected services purchased under this contract" refers to the "amount due the
Contractor by the state, based upon the payment methodology described in Section
C.3 of the Contract." If, at the State's sole discretion, the Contractor is
unable to meet a performance standard due to causes beyond the Contractor's
control, the remedies described below may not be assessed.

A.   Portal Availability

     The following shall define the Service Level Agreement (SLA) commitment for
     the State Service Portal's availability:

     Performance Standard: State Service Portal available 99.7% of the time for
     the entire calendar month.*

     Penalty: Failure to meet the above availability requirement will result in
     a penalty payment of 1% of the total monthly costs for all effected
     services purchased under this contract. Failure to meet the above
     availability requirement for a second consecutive month will result in a
     penalty payment of 2% of the total monthly costs for all effected services
     purchased under this contract. Failure to meet the above availability
     requirement for a "n" consecutive month will result in a penalty payment of
     n% of the total monthly costs for all effected services purchased under
     this contract.

B.   Security Management

     The following shall define the SLA commitment for the State Service
     Portal's Security Management:

     Performance Standard: State Service Portal Security Management identifies
     security breaches, attempted breaches or attacks and TAKES corrective
     action within 2 hours of the occurrence.

     Penalty: Failure to meet the above security management requirement will
     result in a penalty payment of 2% of the total monthly costs for all
     effected services purchased under this contract for each occurrence.
     Failure to meet the above availability requirement for a second consecutive
     month will result in a penalty payment of 2.5% of the total monthly costs
     for all effected services purchased under this contract for each
     occurrence. Failure to meet the above availability requirement for a "n"
     consecutive month will result in a penalty payment of the prior (n minus 1)
     month's penalty percentage with an additional 0.5% added of the total
     monthly costs for all effected services purchased under this contract for
     each occurrence.

C.   Application Availability

     The following shall define the SLA commitment for the State Service
     Portal's specific application availability:

     Performance Standard: State Service Portal applications provided by the
     Contractor will be available to the customer 99.5% of the time for the
     entire calendar month.

     Penalty: Failure to meet the above application availability requirement
     will result in a penalty payment of 1% of the total monthly costs for all
     effected services purchased under this contract. Failure to meet the above
     availability requirement for a second consecutive month will result in a
     penalty payment of 2% of the total monthly costs for all effected services
     purchased under this contract. Failure to meet the above availability
     requirement for a "n" consecutive month will result in a penalty payment of
     n% of the total monthly costs for all effected services purchased under
     this contract.
<PAGE>

*    "For the entire calendar month" refers to the portion of the month that the
     application or portal site was implemented. All time references refer to
     scheduled uptime and exclude scheduled downtimes.
<PAGE>

                                  ATTACHMENT B

                             AUTHORIZED INDIVIDUALS

The State:

      Chief of Information Systems
      Department of Finance and Administration

      State Portal Manager
      Department of Finance and Administration

The Contractor:

      Portal General Manager
      National Information Consortium USA, Inc.

      President
      National Information Consortium USA, Inc.

      President
      National Information Consortium<PAGE>

                   SELF FUNDED ELECTRONIC GOVERNMENT SERVICES

                                  TERM CONTRACT

                                 RESULTING FROM
                                  RFP #01-252B

                    NATIONAL INFORMATION CONSORTIUM USA, INC.

                DOING BUSINESS IN MONTANA THROUGH THE SUBSIDIARY:

                            MONTANA INTERACTIVE, INC.
<PAGE>

                          CONTRACT TERMS AND CONDITIONS

This contract is a result of RFP #01-252B. All references to the RFP in this
contract are references to RFP #01-252B unless otherwise specified.

1.   Parties

     This contract is entered into by and between the Department of
     Administration of the State of Montana, (hereinafter referred to as the
     "Department"), whose address and telephone number are:

                  Department of Administration
                  Information Services Division (ISD)
                  P.O. Box 200113
                  Helena, MT  59620
                  406-444-2700

     and National Information Consortium USA, Inc. (NICUSA), whose Federal ID
     Number, address and telephone number are:

                  National Information Consortium USA, Inc.
                  Doing business in Montana through the
                  subsidiary
                  Montana Interactive, Inc. (MII)
                  Federal ID Number:  91-207-3898
                  677 East 730 South, Suite 204
                  American Fork, Utah 84003
                  801-756-7095

2.   Effective Date, Duration and Renewal

     2.1  This contract shall take effect on January 2, 2001. This contract
          shall terminate on January 1, 2006 unless terminated earlier in
          accordance with the terms of this contract.

     2.2  This contract may be renewed by the Department for five (5) one-year
          periods or for any increments between one (1) and five (5) years as
          agreed upon by both parties. In no case may this contract run longer
          than ten (10) years. Reference: 18-4-313, MCA.

3.   Definition of Project

     For purposes of this contract, "Project" is defined as self-funded
     electronic government (e-government) services and other e-government
     services provided by NICUSA to the State under this contract.

                                       1
<PAGE>

4.   Work Order Procedure

     4.1  For the purpose of this section, "work order" refers to both a
          Transaction Fund Work Order and an Agency Funded Work Order.

     4.2  All new implementations of applications under this contract where
          funding is being provided by the transaction fund must have an
          approved Transaction Fund Work Order (see Attachment A). Each
          Transaction Fund Work Order, at a minimum, must include the
          information provided in Attachment A. In some cases, work may commence
          prior to final approval of the Transaction Fund Work Order. Upgrades
          and enhancements to existing applications do not need to be done
          through work orders.

     4.3  All work conducted by NICUSA under this contract where an agency or
          program is providing the funding must be done through an approved
          Agency Funded Work Order (see Attachment A). Each Agency Funded Work
          Order, at a minimum, must include the information provided in
          Attachment A. If the agency or program is funding the project, work
          can commence upon the approval of the work order.

     4.4  NICUSA and the agency or program will jointly fill out the information
          on the work order, sign it and submit it to the Department for
          signature. The Department will review the work order for compliance
          with this contract, state standards, the strategic direction of the
          State, the impact on the state's infrastructure, and other logistical
          matters. Work orders may be for Internet, or intranet applications, or
          for the support of such applications. Work orders must fit within the
          scope of this contract and the intent of the RFP. The Department
          acting on its own, or acting on the advice of the Governing Board, may
          disapprove any work order. If a work order is disapproved, all
          associated work must immediately cease and desist.

5.   Transaction Fund, Revenue, and Remittance

     5.1  The transaction fund is defined as a fund containing transaction fee
          revenue, as defined in Section 7 of the RFP, generated from the use of
          applications put into production through this contract. Other
          applicable revenue may also reside in the fund such as that defined in
          NICUSA's response to Section 7.8.5 of the RFP.

     5.2  The transaction fund must be established as one or more accounts
          insured by the FDIC in financial institutions. The accounts shall be
          established as trust accounts with the funds held for the benefit of
          the State. NICUSA shall furnish the Department with the names of the
          institutions, the account numbers, and the names of those persons
          having signatory

                                       2
<PAGE>

          authority. The accounts must be established in financial institutions
          licensed in Montana. Exceptions must be approved by both parties.

     5.3  NICUSA is responsible for billing, collecting, and administering all
          revenue from applications put into production under this contract
          unless otherwise stated in the work order. NICUSA is responsible for
          depositing revenue into the transaction fund. NICUSA is responsible
          for all statutory fees owed to the State.

     5.4  NICUSA is responsible for remitting the State's revenues to the
          Department of Revenue as outlined in Section 4.9 of the RFP. NICUSA
          shall follow any special remittance provisions in approved work
          orders. At no time must revenue due to the State be held longer than
          thirty-one (31) days without being remitted to the Department of
          Revenue. Revenue that will be remitted to the Department of Revenue
          includes, but is not limited to, statutory fees and facility charges
          owed by NICUSA to the State.

     5.5  NICUSA is responsible for paying associated operation expenses,
          including all reasonable and required capital reinvestment in the
          Project. All remaining funds are to be retained by NICUSA.

6.   Governing Board

     The State will establish an advisory Governing Board for the Department.
     Final authority resides with the Department. The Governing Board will
     advise on the following in relation to the Project:

     -    Policy;

     -    Work orders proposing a fee;

     -    Fee changes;

     -    General priorities of work orders and investments;

     -    Service Management Business Plan;

     -    Management of the transaction fund; and

     -    Other issues as requested by the Department

     The Governing Board will use the Contractor's response to Section 7 of the
     RFP as a guide in its advice regarding fees, revenue, and NICUSA's return
     on investment versus reinvestment into the State.

7.   Ownership of Data

     The State maintains ownership of all State data provided through the
     Project. Customer data collected by NICUSA may not be used for any purpose
     except in furtherance of the Project. In the event this contract is
     terminated, the necessary customer data collected by NICUSA will be
     provided to the Department or their designee.

                                       3
<PAGE>

8.   NICUSA Employees

     8.1  Employees of NICUSA may be given access to secured facilities and
          data. Prior to having access to secured facilities and data, NICUSA's
          employees must submit to the same level of scrutiny as state employees
          and be approved by the State for access. NICUSA's employees, in
          carrying out this project, must follow all applicable laws, procedures
          and policies.

     8.2  This contract was awarded based on NICUSA's response to the RFP. If
          the key personnel outlined in the RFP response change, the Department
          must be notified immediately. If any of the key personnel outlined in
          the RFP leave, or are otherwise removed and are unable to fulfill this
          contract, they must be replaced by equally experienced and competent
          personnel. The Department may provide input into the selection process
          of key personnel directly fulfilling the terms of this contract.

     8.3  The Department will notify NICUSA of any concerns with key personnel
          directly fulfilling the terms of this contract. NICUSA agrees to make
          a good faith effort to address the Department's concerns, which may
          include replacing key personnel.

9.   Consideration/Payments (Outside of the Transaction Fund)

     9.1  When work conducted by NICUSA is being funded by an agency or program,
          outside of the transaction fund in consideration for services
          provided, the ordering agency or program will pay within thirty (30)
          days of receipt of a properly executed invoice. The final payment,
          plus retainer (if applicable), will be made within thirty (30) days of
          receipt of a properly executed invoice and upon acceptance of the
          completed project.

     9.2  The Department or ordering agencies may withhold payments to NICUSA
          regarding the disputed portion if NICUSA has not performed in
          accordance with this contract or the approved work order.

10.  Political Subdivisions

     This contract will be offered to all entities defined in Section 1.1 of the
     RFP. However, the Governing Board as well as the Department must approve
     all work orders, or other requests regarding this contract, from political
     subdivisions. The Governing Board shall establish the priority of such
     requests and determine the policies and procedures for providing services
     to political subdivisions under this contract. At no time shall services be
     provided to political subdivisions to the detriment of the State.

                                       4
<PAGE>

11.  Warranties

     NICUSA warrants that products (including hardware and software) and
     services offered through this contract will conform to the specifications
     requested, be fit and sufficient for the intended purpose, be of good
     material and workmanship and free from defect. To be fit and sufficient for
     the intended purpose includes adequate system performance.

12.  Scope, Amendment, and Interpretation

     12.1 This contract consists of 27 numbered pages, RFP #01- 252B as amended,
          NICUSA's response to the RFP including the clarification question
          responses, and negotiations. In the case of dispute or ambiguity, the
          order of precedence of document interpretation is in that same order.

     12.2 These documents contain the entire agreement of the parties. Any
          enlargement, alteration or modification requires a written amendment
          signed by both parties. Mutually agreeable changes may be made to this
          contract provided that the terms of this contract:

          12.2.1 Do not materially change NICUSA's obligations to the State as
                 expressed in the contract.

          12.2.2 Do not violate the Constitution, Laws, or Rules of Montana.

          12.2.3 Do not impose onerous obligations or conditions that materially
                 change the value of the product or services to be provided to
                 the Department.

          12.2.4 Do not contravene the mandatory requirements of the RFP.

13.  Non-Exclusive Contract

     The Project is intended to be the State's single comprehensive method for
     e-government services. NICUSA is not the exclusive source for e-government
     services for the State. State entities electing to purchase or provide
     e-government services through sources other than this contract will follow
     existing procurement vehicles, or go through a competitive procurement
     process. However, NICUSA has exclusive rights to links on the State Portal
     for the applications developed by NICUSA, but will not be given exclusive
     rights to state data. The Project may, however, be the exclusive method for
     electronic services and data access for state agencies at their discretion
     as indicated on a work order.

     NICUSA has exclusive rights to the transaction fund for application
     development. However, at the Department's discretion, NICUSA may be
     required to verify that

                                       5
<PAGE>

     their pricing, service and delivery on a specific application project are
     competitive with other vendors who distribute a similar application. If an
     application project is determined by the Department not to be competitive,
     then funding from the transaction fund may be made available to the State
     for the project.

14.  Contract Management Liaison

     This contract is managed by the Information Services Division of the
     Department of Administration for the State of Montana in accordance with
     2-17-501, MCA. Contract management inquiries and problems should be
     addressed to:

                  Audrey Hinman, Chief
                  Internet Technology Services Bureau
                  Information Services Division
                  P.O. Box 200113
                  Helena, MT  59620-0113
                  Telephone: 406-444-2700
                  FAX: 406-444-2701

15.  Contractor Liaison

     NICUSA shall have an Account Executive in place for the duration of this
     contract. The Account Executive is the liaison to the Contract Management
     Liaison and will assume responsibility for the coordination of all products
     and services or projects under this contract. The Account Executive will
     meet with the Contract Management Liaison, agency project manager, agency
     procurement manager, and others as necessary to resolve any conflicts or
     disagreements under this contract. If the Account Executive changes, the
     Department must be notified immediately. The Department reserves the right
     to request NICUSA to change the Account Executive, or any representative
     serving the State, if in the opinion of the Department the current Account
     Executive, or representative, is not adequately meeting the needs of the
     State.

                  Michael Muller, General Manager
                  Montana Interactive, Inc.
                  677 East 730 South, Suite 204
                  American Fork, UT  84003
                  Telephone: 801-756-7095
                  FAX: 801-756-4643

16.  Audit Requirements

     16.1 With the approval of the Department, NICUSA shall select an
          independent auditor to audit, at its own expense, NICUSA's books and
          records, including the transaction fund books and records, on an
          annual basis during the term of the contract. NICUSA shall make such
          books and

                                       6
<PAGE>

          records available at its principal place of business. All audit
          findings including, but not limited to, the audited financial
          statements, auditor opinions, reports on internal control, findings
          and recommendations, and management letters are to be provided to the
          Department for review within one hundred twenty (120) days after the
          close of NICUSA's fiscal year. In addition, NICUSA is subject to any
          further audit and review determined necessary by the Department or the
          Governing Board, after furnishing reasonable notice to NICUSA. This
          includes audits conducted by the Legislative Auditor.

     16.2 To the extent an audit report discloses any discrepancies in charges,
          billings, or financial records, and following a period for review and
          verification of the amount by NICUSA, NICUSA will adjust the
          discrepancy as soon as reasonably possible, but not to exceed ninety
          (90) days. NICUSA shall cooperate to assure that verification is
          completed in a timely manner. NICUSA also agrees to make other changes
          requested by the Department, that are agreed to by NICUSA, to comply
          with recommendations resulting from any audit.

17.  Reporting Requirements

     17.1 NICUSA must provide monthly income statements and balance sheets for
          the transaction fund to the Department.

     17.2 NICUSA must provide a monthly status report to the Department of all
          projects or work orders in progress and an overall view of the
          operation of the services provided under this contract.

     17.3 NICUSA will measure and report monthly to the Department on growth
          trends and usage of the services provided under this contract. The
          report shall include number of hits, access, transactions and other
          performance measures or metrics as mutually agreed upon by the
          Department and NICUSA. NICUSA will measure and report monthly to the
          Department on the performance of the servers provided under this
          contract including swap rate, CPU usage, memory usage and disk usage.

     17.4 NICUSA will submit a proposed three (3) year Service Management
          Business Plan to the Department including activities, schedules,
          deliverables, budgets, and financial forecasts. Section 7 of the RFP
          is to be used as a guideline for the initial Plan. NICUSA will submit
          the initial Plan to the Department within sixty (60) days of the
          execution of this contract. The Plan shall be revised and submitted on
          an annual basis.

     17.5 The Department reserves the right to request additional reports
          regarding this contract. NICUSA agrees to make a good faith effort to
          provide all requested reports.

                                       7
<PAGE>

18.  Contract Performance Security

     Contract Performance Security in the form of a surety bond #103332645 in
     the amount of $250,000 has been received by the State Procurement Bureau
     and will be returned to NICUSA after successful completion of this
     contract. This security must remain in effect for the entire contract
     period.

     The State may collect damages from contract security if NICUSA materially
     fails to perform or provide service as required. This could range from
     going out of business and leaving the State with no service provider or no
     finished or supported product, to completing the contract but doing so
     unsatisfactorily or as required by contract.

     The damages available to the State are limited to the additional costs
     incurred to select a new service provider or the cost of correcting the
     problem. The State may also collect from the security the overhead costs to
     the State in acquiring a new service provider or the overhead time expended
     to correct the problem. Reference: 18-4-312, MCA.

19.  Headings

     The heading or captions of the sections and subsections of this contract
     are inserted for convenience only, shall not be deemed to be part of this
     contract, and in no way define, limit, extend or describe the scope of
     intent of any provisions hereof.

20.  Access and Retention of Records

     20.1 NICUSA agrees to provide the Department, the Legislative Auditor or
          their authorized agents access to any records necessary to determine
          contract compliance.

     20.2 NICUSA agrees to create and retain all records supporting the products
          and services rendered for a period of three (3) years after either the
          completion date of this contract or the conclusion of any claim,
          litigation or exception relating to this contract taken by the State
          of Montana or a third party. Reference: 18-1-118, MCA.

21.  Tax Exemption

     The State of Montana is exempt from Federal Excise Taxes (#81-0302402).

22.  Product Requirements

                                       8
<PAGE>

     NICUSA certifies that all applications offered through this contract are
     fully compatible with the State's computing environment as specified in
     Section 2 of the RFP. Should any application provided through this contract
     fail to exhibit fully compatible performance; NICUSA will be responsible
     for assuming all costs associated with correcting, or replacing all non-
     compliant applications. The Department shall have the final authority to
     determine compliance of an application.

23.  Assignment, Transfer and Subcontracting

     NICUSA may not assign, transfer or subcontract any portion of this contract
     to any non-NIC-related entities without the express written consent of the
     Department. Reference: 18-4-141, MCA. NICUSA is solely responsible for
     ensuring that subcontractors comply with all terms and conditions of this
     contract. All contracts NICUSA engages in with non-NICUSA entities on
     behalf of the State to fulfill this contract must have the ability to be
     assigned, transferred, or assumed by the Department. This specifically
     includes all infrastructure solutions outlined in Section 4 of the RFP.
     NICUSA must provide copies of all said contracts to the Department.

24.  Choice of Law and Venue

     This contract is governed by the laws of Montana. The parties agree that
     any litigation concerning this contract must be brought in the First
     Judicial District in and for the County of Lewis and Clark, State of
     Montana. Reference: 18-1-401, MCA.

25.  Compliance with Laws

     25.1 NICUSA must comply with all applicable federal and state law including
          the prevailing wage laws.

     25.2 NICUSA must comply with the Montana Human Rights Act, the Civil Rights
          Act of 1964, the Age Discrimination Act of 1975, the Americans with
          Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of
          1973.

     25.3 If one or more provisions of this contract are deemed to be unlawful
          or unconstitutional or stricken by a court of law, all valid
          provisions that are severable from the invalid provisions remain in
          effect and are valid and binding on the parties. If any provision
          hereof is in conflict with any applicable statute or rule of law, then
          such provision shall be deemed inoperative to the extent that it may
          conflict therewith and shall be deemed to be modified to conform to
          such statute, rule of law, court order, or judgment.

                                       9
<PAGE>

26.  Indemnification

     NICUSA agrees to indemnify and hold harmless the State, its officials,
     agents, and employees, while acting within the scope of their duties as
     such, harmless from and against all claims, demands, and causes of action
     of any kind or character, including the cost of defense, arising in favor
     of NICUSA's employees or third parties on account of bodily or personal
     injuries, death, or damage to property arising out of services performed,
     goods or rights to intellectual property provided or omissions of services
     or in any way resulting from the acts or omission of NICUSA and/or its
     agents, employees, subcontractors or its representatives under this
     agreement, all to the extent of NICUSA's negligence.

27.  Patent and Copyright Protection

     27.1 In the event of any claim by any third party against the Department
          that the products furnished under this contract infringe upon or
          violate any patent or copyright, the Department shall promptly notify
          NICUSA. NICUSA shall defend such claim, in the Department's name or
          its own, as appropriate, but at NICUSA's expense. NICUSA will
          indemnify the Department against all costs, damages and attorney's
          fees that a Court finally awards as a result of such claim. If the
          Department reasonably concludes that its interests are not being
          properly protected, it may enter any action. However, any settlement
          by the Department with the party alleging such infringement or
          violation shall not be binding upon NICUSA and NICUSA shall be under
          no obligation to pay or indemnify the Department. Further, if
          principles of governmental or public law are involved, the State of
          Montana may participate in the defense of any such action.

     27.2 If any product furnished is likely to or does become the subject of a
          claim of infringement of a patent or copyright, then NICUSA may, at
          its option, procure for the Department the right to continue using the
          alleged infringing product, or modify the product so that it becomes
          non-infringing. If none of the above options can be accomplished, or
          if the use of such product by the Department shall be prevented by
          permanent injunction, the Department agrees to return the product at
          NICUSA's request and NICUSA agrees to grant the Department a credit
          for full cost of the product and any related product provided by
          NICUSA which can no longer be used effectively without the use of the
          infringing product.

     27.3 This section 27 shall not apply if the infringement, or claim thereof,
          is based upon the use of products supplied by NICUSA in combination
          with other software not made or supplied by NICUSA (Department or
          other vendor supplied), or the use of products by the Department with
          apparatus, data or programs not furnished or supplied by NICUSA
          (Department or other vendor supplied), or products not manufactured or
          supplied by

                                       10
<PAGE>

          NICUSA (Department or other vendor supplied). This section 27 will
          apply to all products offered by NICUSA.

28.  Intellectual Property

     28.1 All patent and other legal rights in or to inventions arising out of
          activities funded in whole or in part by this contract must be
          available to the Department for royalty- free and nonexclusive
          licensing to the State. NICUSA shall notify the Department in writing
          of any invention conceived or reduced to practice in the course of
          performance of this contract.

     28.2 The Department shall have a royalty-free, nonexclusive, and
          irrevocable right to reproduce, publish or otherwise use and authorize
          others to use for operation of the State of Montana portal only,
          copyrightable property created under this contract.

     28.3 All application source code and documentation together with all
          updates and revisions (collectively referred to below as "The
          Software") provided to the Department under this contract shall be the
          intellectual and tangible property of NICUSA. However, the State and
          all subsequent e- government service providers working on the State of
          Montana portal, shall be granted a perpetual for-use-only license by
          NICUSA to The Software only for purposes of this Project at no
          additional fee. This license includes rights to modify the code and
          applications, as the State deems appropriate. Designs, logos,
          graphics, and trademarks related to the Project are the property of
          the State and are licensed to NICUSA only for the duration of the
          contract.

     28.4 The Software shall be deposited with an Escrow Agent on a quarterly
          basis. NICUSA and the Department shall mutually choose the Escrow
          Agent. The Department will review, approve and subsequently receive
          from NICUSA, an executed copy of the software escrow agreement between
          NICUSA and the Escrow Agent. NICUSA will notify the Department in
          writing of any amendments to such agreements, any change in Escrow
          Agent, or of any replacement or successor escrow arrangements. The
          Escrow Agent will provide written notification to the Contract
          Management Liaison, at least semiannually, detailing all account
          activity during the previous period. Over the term of the contract,
          NICUSA will have the authority to remove superseded source code.
          Updates to The Software shall be escrowed and owned as stated above.
          The Department has full rights in verifying that this process is
          properly being followed. An exclusion to this provision applies to
          software or documentation created by third parties and purchased by
          NICUSA.

                                       11
<PAGE>

     28.5 The Software shall be released to the Department upon termination of
          this contract, for disaster recovery purposes, if NICUSA is declared
          insolvent through bankruptcy proceedings, if NICUSA is unable to
          perform its obligations to the State under the contract, or as
          otherwise provided in the agreement with the Escrow Agent. In any of
          the events listed above, The Software from the Escrow Agent, and any
          updates or new applications not yet in escrow, shall be delivered to
          the Department immediately.

29.  Insurance Requirements (Receipt of)

     29.1 General Requirements: NICUSA shall maintain for the duration of the
          contract, at its cost and expense, insurance against claims for
          injuries to persons or damages to property, including contractual
          liability which may arise from or in connection with the performance
          of the work by NICUSA, agents, employees, assigns, or subcontractors.
          The insurance shall cover such claims as may be caused by any
          negligent act or omission.

     29.2 Specific Requirements for Commercial General Liability: NICUSA shall
          purchase and maintain Occurrence coverage with combined single limits
          for bodily injury, personal injury, and property damage of $1,000,000
          per occurrence and $2,000,000 aggregate per year to cover such claims
          as may be caused by any act, omission, or negligence of NICUSA or its
          officers, agents, representatives, assigns or subcontractors.

     29.3 Additional Insured Status: The State, its officers, officials,
          employees, and volunteers are to be covered as additional insureds;
          for liability arising out of activities performed by or on behalf of
          NICUSA, including the insured's general supervision of NICUSA;
          products and completed operations; premises owned, leased, occupied,
          or used.

     29.4 Deductibles and Self-Insured Retentions: Any deductible or
          self-insured retention must be declared to and approved by the
          Department. At the request of the agency either: 1) The insured shall
          reduce or eliminate such deductibles or self-insured retentions as
          respect to the State, its officers, officials, employees, and
          volunteers, or; 2) NICUSA shall procure a bond guaranteeing payment of
          losses and related investigations, claims administration, and defense
          expenses.

     29.5 Certificate of Insurance/Endorsements: A certificate of insurance,
          indicating compliance with the required coverages, has been received
          by the State Procurement Bureau. NICUSA must notify the State
          immediately, of any material change in insurance coverage, such as
          changes in limits, coverage, change in status of policy, etc.

     29.6 Primary Insurance: NICUSA's insurance coverage shall be primary
          insurance with respect to the State, its officers, officials,
          employees, and

                                       12
<PAGE>

          volunteers and shall apply separately to each project or location. Any
          insurance or self-insurance maintained by the State, its officers,
          officials, employees or volunteers shall be excess of NICUSA's
          insurance, and shall not contribute with it.

30.  Workers' Compensation/Independent Contractor's Exemption

     Contractors are required to maintain Workers' Compensation or an
     Independent Contractor's Exemption covering NICUSA and/or employees while
     performing work for the State of Montana in accordance with Section 39-
     71-120/401/405, MCA. Neither NICUSA nor its employees are employees of the
     State. This insurance/exemption must be valid for the entire contract
     period.

31.  Meetings

     Each party is required to meet with the other to resolve technical or
     contractual problems that may occur during the term of this contract.
     Meetings will occur as problems arise and will be coordinated by the
     Department. NICUSA will be given a minimum of three (3) full working days
     notice of meeting date, time, and location. Face to face meetings are
     desired. However, upon mutual agreement, a conference call meeting may be
     substituted. Consistent failure to participate in problem resolution
     meetings (two (2) consecutive missed or rescheduled meetings), or failure
     to make a good faith effort to resolve problems (as determined by the
     Department), may result in termination of this contract.

32.  Notice

     Written notice sent by certified mail, return receipt requested, shall be
     deemed made when received or initially refused by the other party.

33.  Termination

     33.1 If NICUSA fails to perform the work in accordance with the provisions
          of this contract, or breaches any contract term and does not cure or
          does not correct such failure within a period of thirty (30) days
          after receipt of the Department's written notice thereof, the
          Department may, by written notice, terminate the whole or any part of
          this contract. Such written notice shall specify the time, the
          specific provision of this contract or "for cause" reason that gives
          rise to the termination, and shall specify reasonable appropriate
          action that can be taken by NICUSA to avoid termination of the
          contract. The phrase "for cause" shall mean:

          33.1.1 Any material breach or evasion by NICUSA of the terms or
                 conditions of this contract and its amendments, if any.

                                       13
<PAGE>

          33.1.2 Substantial cessation or material degradation of Network
                 services by NICUSA shall be cause for immediate termination of
                 this contract.

          33.1.3 A conviction of fraud, misappropriation, embezzlement,
                 malfeasance, significant misfeasance, or illegal conduct by
                 NICUSA, its officers, directors or by any corporation or
                 shareholder owning a controlling interest in NICUSA.

          33.1.4 Dissolution of NICUSA or forfeiture of its corporate existence
                 without assignment to a successor acceptable to the Department.

          33.1.5 NICUSA's doing any of the following:

                 33.1.5.1 Commencing a voluntary case or other proceeding
                          seeking liquidation, reorganization, or other relief
                          with respect to itself or its debts under any
                          bankruptcy, insolvency, or other similar law now or
                          hereafter in effect; or filing an answer admitting the
                          material allegations of a petition filed against
                          NICUSA in any involuntary case or other proceeding
                          commenced against NICUSA seeking liquidation,
                          reorganization, or other relief under any bankruptcy,
                          insolvency, or other similar law now or hereafter in
                          effect with respect to NICUSA or either of their
                          debts; or consenting to any such relief or to the
                          appointment of or taking possession by any such
                          official in any voluntary case or other proceeding
                          commenced against NICUSA seeking liquidation,
                          reorganization, or other relief under any bankruptcy,
                          insolvency, or other similar law now or hereafter in
                          effect with respect to NICUSA or either of their
                          debts;

                 33.1.5.2 Seeking the appointment of a trustee, receiver,
                          liquidator, custodian or other similar official of
                          NICUSA or any substantial part of NICUSA's 's assets;

                 33.1.5.3 Making an assignment for the benefit of creditors;

                 33.1.5.4 Failing, being unable, or admitting in writing the
                          inability generally to pay its debts as they become
                          due; or

                 33.1.5.5 Taking any action to authorize any of the foregoing.

                                       14
<PAGE>

          33.1.6 Intentional or negligent act or omission by NICUSA resulting in
                 the disclosure of any information clearly indicated as being
                 confidential.

     33.2 The Department, at its sole discretion, may terminate or reduce the
          scope of this contract or any work order if available funding is
          reduced for any reason. Reference: 18- 4-313, MCA.

     33.3 If NICUSA fails to perform the work in accordance with any work order,
          or any contract term in the work order and does not cure or does not
          correct such failure within a period of thirty (30) days after receipt
          of the Department's written notice thereof, the Department may, by
          written notice, terminate the whole or any part of the work order.

     33.4 The Department may terminate this contract at any time and without
          cause if directed to do so by statute.

     33.5 NICUSA shall have the right to terminate this contract for any
          material breach or evasion by the Department of the terms or
          conditions of this contract and its amendments, if any, subject to
          cure, by providing written notice of termination to the Department.
          Such notice shall specify the time, the specific reason that gives
          rise to the termination, and shall specify reasonable appropriate
          action that can be taken by the Department to avoid termination of the
          contract. NICUSA shall provide a specified period of time of up to
          thirty (30) calendar days for the Department to cure breaches and
          deficiencies of its performance obligations under this contract.

34.  Infrastructure Support

     NICUSA shall support agency developers (internal employees or contractors)
     with the integration of separately developed agency applications into the
     infrastructure provided through this contract. The Department agrees to be
     an intermediary to cooperatively support these efforts, as resources allow.

35.  Transition Period

     35.1 If for any reason this contract is terminated other than for a
          material breach by the Department, or upon expiration of this contract
          without extension, or at the end of any extension of this contract, at
          the option of the Department NICUSA shall continue to operate under
          this contract in accordance with all its terms and conditions for a
          period of up to twelve (12) months from the time of expiration or
          notification of termination from the Department to NICUSA. The intent
          of this provision is to insure continuation of e-government services
          while a successor (which may be the State) is chosen and installed.
          The Department shall notify NICUSA

                                       15
<PAGE>

          at the earliest possible opportunity, but in any event, no later than
          the date of notification of termination, that it shall continue
          operations and the duration of time for such continuation.

     35.2 If for any reason this contract is terminated the Department has the
          option of purchasing equipment acquired under this contract at fair
          market value. If NICUSA engages in any lease agreements for equipment
          provided under this contract, the Department must have the option to
          assume the lease in case of contract termination. The Department shall
          have necessary access to all equipment and software provided under
          this contract in order to support the Department's work as well as
          agencies.

     35.3 If for any reason this contract is terminated, the remaining funds in
          the transaction fund after all settlements are to be turned over to
          the Department as soon as the reasonable course of business allows,
          but not more than thirty (30) days.

36.  Year 2000 Compliance

     NICUSA warrants that all hardware, software, and/or firmware delivered,
     developed, modified, or licensed, under this contract, shall be able to
     accurately process date data (including, but not limited to, calculating,
     comparing, and sequencing) from, into, and between the twentieth and
     twenty-first centuries, including leap year calculations, when used in
     accordance with the product documentation provided by NICUSA, provided that
     all products (e.g. hardware, software, firmware) used in combination with
     other designated products properly exchange data with it. The remedies
     available to the State under this warranty shall include repair or
     replacement of any product whose non-compliance is discovered and made
     known to NICUSA, in writing, within this warranty period or within one year
     after acceptance, whichever is longer. Nothing in this warranty shall be
     construed to limit any rights or remedies the State may otherwise have
     under this contract, with respect to defects, other than Year 2000
     compliance performance.

                                       16
<PAGE>

37.  Execution

     The parties, through their authorized agents, have executed this contract
     on the dates set out below.

     CONTRACTOR - NATIONAL INFORMATION CONSORTIUM USA, INC.

     -----------------------------------     ------------------------------
     Signature                               Date

     HARRY HERINGTON
     -----------------------------------
     Name

     PRESIDENT
     -----------------------------------
     Title

     12 CORPORATE WOODS
     10975 BENSON ST., SUITE 390
     -----------------------------------
     Address

     OVERLAND PARK, KS  66210                91-207-3898
     -----------------------------------     ------------------------------
     City, State, Zip Code                   Federal Employer ID #

     DEPARTMENT OF ADMINISTRATION - INFORMATION SERVICES DIVISION

     -----------------------------------     ------------------------------
     Signature                               Date

     ANTHONY J. HERBERT
     -----------------------------------
     Name

     ADMINISTRATOR
     -----------------------------------
     Title

     Approved as to form and content:

     -----------------------------------
     Legal Counsel, Department of Administration

     -----------------------------------
     State Procurement Bureau

                                       17
<PAGE>

                                  ATTACHMENT A

Montana Interactive, Inc. (MII) will meet with all state agencies as requested
to discuss their e-government plans. MII should involve the Department in these
meetings when applicable. The appropriate version of the work order should be
completed for all potential applications and MII must give the agency a
reasonable expectation of the priority and schedule for each application. For
large applications, to avoid delays in approval, MII should provide the
Department drafts of work orders prior to their completion. An agency may
indicate on a work order that the Project will be the exclusive method for
electronic services and data access for their data source.

                           TRANSACTION FUND WORK ORDER
                       FOR MONTANA INTERACTIVE, INC. (MII)
                   SELF-FUNDED ELECTRONIC GOVERNMENT SERVICES
                                  TERM CONTRACT

                                                            DATE:
                                                 TRACKING NUMBER:

AGENCY:
DIVISION OR PROGRAM:
PROJECT NAME:
DESCRIPTION OF WORK:    (Include the data sources, what fields or data will be
                        accessed or modified, whether production data or
                        replicated data will be used, how updates to data
                        sources will be conducted and record lock/contention
                        handled, what the complete business process will be from
                        start to finish, what the complete process will be for
                        the end user, access methods available to the end user,
                        any qualification procedures used for end users, a
                        description of the capabilities of the application)

DEVELOPMENT TOOLS AND   (Identify whether Oracle will be used, Visual Basic,
SOFTWARE USED:          etc. and any third party software necessary for the
                        implementation of the application, specifically state
                        whether any non- state standard hardware or software
                        will be involved)

SECURITY:

                                       18
<PAGE>

IMPACT ON THE           (Location of application, impact on hardware, software,
INFRASTRUCTURE:         the state network, and on statewide enterprise license
                        agreements)

SCHEDULE (INCLUDING     (Must include estimated completion dates)
MILESTONES):

DELIVERABLES:

ACCEPTANCE/COMPLETION
CRITERIA:

ESTIMATED AGENCY HOURS:

FEE COLLECTED ON BEHALF
OF AGENCY:

REMITTANCE PROVISIONS:

FEE COLLECTED ON BEHALF
OF TRANSACTION FUND:

MII PROJECT MANAGER:

AGENCY PROJECT MANAGER:

END USER SUPPORT (HELP  (Clearly define how problems that need to be passed
DESK):                  onto the State will be handled and who will be
                        responsible for their resolution and how the problem
                        will be tracked to completion.)

ADDITIONAL TERMS:       (At no time can a work order term be in conflict with a
                        contract term.)

----------------------------------------          ------------------------------
Michael Muller, General Manager                   Date
Montana Interactive, Inc.

----------------------------------------          ------------------------------
(Insert Agency Authority), (Insert Title)         Date
(Insert Agency, Division and/or Program)

----------------------------------------          ------------------------------
Audrey Hinman, Chief                              Date
Internet Technology Services Bureau, ISD

                                       19
<PAGE>

----------------------------------------          ------------------------------
(Insert Chair of Governing Board), Chair          Date
Montana Electronic Government Advisory
Council (Needs to sign only if a fee is
proposed)

                                       20
<PAGE>

                            AGENCY FUNDED WORK ORDER
                       FOR MONTANA INTERACTIVE, INC. (MII)
                   SELF-FUNDED ELECTRONIC GOVERNMENT SERVICES
                                  TERM CONTRACT

                                                            DATE:
                                                 TRACKING NUMBER:

AGENCY:

DIVISION OR PROGRAM:

PROJECT NAME:

DESCRIPTION OF WORK:    (Include the data sources, what fields or data will be
                        accessed or modified, whether production data or
                        replicated data will be used, how updates to data
                        sources will be conducted and record lock/contention
                        handled, security, what the complete business process
                        will be from start to finish, what the complete process
                        will be for the end user, access methods available to
                        the end user, any qualification procedures used for end
                        users, a description of the capabilities of the
                        application)

DEVELOPMENT TOOLS AND   (Identify whether Oracle will be used, Visual Basic,
SOFTWARE USED:          etc. and any third party software necessary for the
                        implementation of the application, specifically state
                        whether any non- state standard hardware or software
                        will be involved)

SECURITY:

IMPACT ON THE           (Location of application, impact on hardware, software,
INFRASTRUCTURE:         the state network, and on statewide enterprise license
                        agreements)

SCHEDULE (INCLUDING     (Must include estimated completion dates)
MILESTONES):

DELIVERABLES:

ACCEPTANCE/COMPLETION
CRITERIA:

ESTIMATED MII HOURS:

ESTIMATED AGENCY HOURS:

                                       21
<PAGE>

RATE(S) CHARGED:        (This can be stated as an amount billable per hour, not
                        to exceed a certain amount, or a fixed agreed to amount;
                        an hourly rate without a cap is not acceptable)

PAYMENT SCHEDULE:       (Outline the complete payment schedule, include any
                        holdbacks due to non- compliance with the approved work
                        order or missing scheduled milestones such as the
                        completion date)

REMITTANCE PROVISIONS
(IF ANY):

MII PROJECT MANAGER:

AGENCY PROJECT MANAGER:

PRODUCTION MAINTENANCE  (Will MII have an ongoing responsibility to maintain
ARRANGEMENT:            and support this application, or will the agency or
                        program take over once the application is in production?
                        If MII will be responsible for maintaining and
                        supporting the application, will the agency be providing
                        the funding to do so?)

END USER SUPPORT (HELP  (Will MII be taking calls from the end users of the
DESK)                   application, or will the agency's help desk take the
                        calls? If MII will be responsible for supporting the
                        application, will the agency be providing the funding to
                        do so? If MII is providing the support, clearly define
                        how problems that need to be passed onto the State will
                        be handled and who will be responsible for their
                        resolution and how the problem will be tracked to
                        completion. If the agency has requirements for reporting
                        regarding support issues, they should be stated here.)

ADDITIONAL TERMS:       (At no time can a work order term be in  conflict with a
                        contract term.)

----------------------------------------          ------------------------------
Michael Muller, General Manager                   Date
Montana Interactive, Inc.

----------------------------------------          ------------------------------
(Insert Agency Authority), (Insert Title)         Date
(Insert Agency, Division and/or Program)

                                       22
<PAGE>

----------------------------------------          ------------------------------
Audrey Hinman, Chief                              Date
Internet Technology Services
Bureau, ISD

                                       23
<PAGE>

                                  ATTACHMENT B

                            INFRASTRUCTURE AGREEMENT
                       FOR MONTANA INTERACTIVE, INC. (MII)

It is the intent of the Department that the electronic government (e-government)
services infrastructure be established in the most cost effective and efficient
manner to lessen the burden on Montana's taxpayers.

The infrastructure established through this contract will be available to all
state agencies for their e-government applications and web sites (not just those
provided by NICUSA). Use of the infrastructure is subject to the Governing
Board's policies and procedures. The infrastructure must support the State's
Internet portal as well as a separate server to support the State's intranet
portal for the duration of the contract. Work orders completed through this
contract may be for both Internet and intranet applications.

This agreement is to outline the resources that will be provided by the
Department and the resources that will be provided by NICUSA as an investment in
the State. This agreement is to set the foundation for the relationship between
the Department and NICUSA; however, it is subject to change as necessary when
both parties agree.

All rates quoted below are for fiscal year 2001 and are subject to change in
future years as determined by the Legislature and/or the Department. NICUSA must
provide all equipment and do all installation necessary to connect the servers
to the network connection provided and must follow the published Mid-Tier
Standards for the State.

HARDWARE

It is required that hardware provided by NICUSA meet the State's needs on an
ongoing basis as deemed appropriate by the Governing Board. All hardware
provided must be state standard equipment (IBM RS/6000 mid-tier boxes and Dell
PowerEdge Intel boxes). The hardware housed in the State Data Center must be
stored in tower racks. The procurement of tower racks to store the hardware is
the responsibility of NICUSA. All consoles should be on a switch and NICUSA is
limited to two physical consoles. The consoles and any console switches are the
responsibility of NICUSA. Contractor employees will be authorized for physical
access to the servers provided under this contract only. Access to secured areas
will be granted on an as needed basis and is available 7 x 24. Appropriate
procedures must be followed to gain access to secured areas. Remote
administration of servers is encouraged.

                                       24
<PAGE>

The following hardware at a minimum will be housed in the State Data Center (it
is understood that NICUSA will require additional servers than those listed
below):

INTERNET PORTAL SERVER: The State requires NICUSA provide a server for the State
Portal (as defined in Section 4 of the RFP), agency web sites, and e-government
services. This server will sit outside of the State's firewall.

INTERNET PORTAL DEVELOPMENT SERVER: The State requires NICUSA provide a
development server for the State Portal (as defined in Section 4 of the RFP),
agency web sites, and e-government services. This server will sit outside of the
State's firewall.

INTRANET PORTAL SERVER: The State requires NICUSA provide a server for the State
intranet, agency intranet web sites, and internal e-government services. This
server will sit inside of the State's firewall.

INTRANET PORTAL DEVELOPMENT SERVER: The State requires NICUSA provide a
development server for the State intranet, agency intranet web sites, and
internal e-government services. This server will sit inside of the State's
firewall.

SERVICES

SERVICES PROVIDED BY ISD:

     1.   Space in the State Data Center including fire protection, air
          conditioning for continuously controlled temperature and humidity, and
          physical security with a centrally administered personnel access
          control system requiring pre-approved individual access

     2.   Connection of all servers to the State Data Network (SummitNet)

     3.   Back-up and recovery of servers using Harbor agents through the
          network with off-site storage following the State's policies

     4.   UPS electrical protection fully isolated from utility power surges,
          fluctuations, spikes, and high frequency electrical noise; provides
          for controlled shutdown of computer equipment during power outages

     5.   Continuous monitoring is available as an option whereas Department
          employees will notify NICUSA when a server is down

     6.   Scheduling of jobs for reliable execution of specific batch job
          streams to accommodate customer's production schedule needs is an
          option

                                       25
<PAGE>

     7.   Notification of all scheduled maintenance and outages

     8.   Ability to participate in weekly problem and change management
          meetings

SERVICES PROVIDED BY NICUSA:

     1.   The necessary hardware and software to support production
          dependencies; NICUSA must provide all equipment and do all
          installation necessary to connect the servers to the network
          connection provided

     2.   Disaster recovery planning and any costs incurred with the disaster
          recovery plan; the disaster recovery plan must include the procedures
          NICUSA will follow when a server goes down with a hardware problem
          such as a system disk crash, hard parity check in a RAM card, etc.;
          the written disaster recovery plan must be submitted to the Department
          for approval within sixty (60) days of contract execution and revised
          annually

     3.   System stability, reliability, and recoverability

     4.   Capacity planning and ongoing analyses of changes in system
          utilization to best assure adequate configuration to accommodate
          ongoing production workload demands

     5.   Performance monitoring of system deliverables, including response
          times and other time-related production deliverables

     6.   Hardware maintenance, upgrades, and all equipment provided under this
          contract

     7.   All operating systems used must be state standard operating systems
          (AIX, Windows NT, or Windows 2000). NICUSA is responsible for
          procuring and installing all software provided under this contract.
          NICUSA is responsible for all operating system installations,
          upgrades, maintenance, software installations, and software changes.
          NICUSA is responsible for all operating systems and software support.

RATES CHARGED BY ISD:

A Service Level Agreement will be signed by both parties for all facility
services provided by ISD. NICUSA will be charged $3,000 per year ($250 per
month) per tower rack (approximately six (6) servers) for housing in the State
Data Center. NICUSA is limited to two consoles regardless of the number of tower
racks.

                                       26
<PAGE>

STATE NETWORK CONNECTIVITY

LOCAL OFFICE CONNECTIVITY: NICUSA will be responsible for a monthly site rate to
connect their local office to SummitNet. The monthly site rate varies depending
on the service requested. The connection options are 56K at $250 per month or
T-1 at $650 per month. These costs do not include the circuit costs. ISD will
provide the service up to and including the router. NICUSA is responsible for
all LANs and equipment in their office to connect to the router.

INTERNET CONNECTIVITY

STATE'S CURRENT CAPACITY: At the time of contract signing, the State intends to
have a physical ATM DS3 connection to the Internet, with 9Mbps being used.
NICUSA will be responsible for paying for additional capacity required for their
use. The Department is willing to negotiate with NICUSA on the appropriate
sharing arrangement, as additional capacity is needed.

ORACLE

Under the existing State of Montana Oracle Enterprise License Agreement, the
Department will provide all required Oracle licenses. It is understood by NICUSA
that these licenses are for exclusive use by NICUSA to carry out the terms of
this contract and may not be used for any other purpose or entity. The State of
Montana Oracle Enterprise License Agreement is for State of Montana agencies
only and does not include and may not be used for political subdivisions. The
Department will provide NICUSA with access to their Oracle web server and NICUSA
is encouraged to use this web server whenever possible. If NICUSA (or an agency)
wishes to have the Department host Oracle databases or applications, they will
be charged ISD's published mid-tier rates. If NICUSA hosts their own Oracle
databases, there will be no additional charges.

The State has the right for agency and Department employees to perform technical
reviews on all Oracle databases and applications prior to implementation.

E-MAIL

It would be very beneficial for the General Manager of Montana Interactive, Inc.
(and perhaps all employees) to be on the state's e-mail system for the benefit
of meeting scheduling and access to the state's address book. The cost is $6.00
per mailbox per month.

                                       27

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