Document:

DEPARTMENT OF VETERANS AFFAIRS
                                 Medical Center
                                508 Fulton Street
                                 Durham NC 27705

January 23, 2002
                                                              In Reply Refer To:
                                                                         558/90C

National Research Corporation
Attn:  Patrick E. Beans
1245 Q. Street
Lincoln, NE 68508

Dear Mr. Bean:

          Acceptance is made of your offer submitted in response to our RFQ
558-Q4l-02 to furnish Veteran Satisfaction Surveys for the Performance Analysis
Center for Excellence (PACE), located at 615 Davis Drive, Suite 800,
Morrisville, NC, under the MOBIS Contract No. GS-1OF-0332L. The period of the
contract is established for January 23, 2002 through September 30, 2002 in the
estimated annual amount of $4,665,882.00. Purchase Order Number 558-HT1002 has
been assigned and must appear on all invoices and future correspondence. An
executed copy of the contract is enclosed for your files.

          In accordance with VAAR Clause 852.270-1, PACE Staff members have been
delegated Contracting Officer's Technical Representatives on this contract. All
work performed under this contract must be coordinated through the
representatives. A copy of the memo of delegation is enclosed.

          Payment will be made monthly in arrears upon submission of your
properly prepared invoice to the Resource Support Service (04), VA Medical
Center (558), 1970 Roanoke Blvd., Salem, VA 24153. The contract number must be
reflected on your invoice.

          If there are any questions, please feel free to contact the
undersigned at (919) 286-6915.

                                        Sincerely,

                                        BERMA K. NORRIS
                                        Contracting Officer

Enclosures:
Purchase Order No. 558-HT1002
Delegation of COTR

                                       1
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
<S>                                                                       <C>                                        <C>
SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS                          1.  REQUISITION NUMBER                     PAGE 1 OF 36
  OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24 & 30                              558-02-2-8888-0944
------------------------------------------------------------------------------------------------------------------------------------
2.  CONTRACT NO.              3.  AWARD/EFFECTIVE      4.  ORDER NUMBER   5.  SOLICITATION NUMBER       6.  SOLICITATION ISSUE DATE
     GS-10F-0332L             DATE         1/23/02        558-HT1002         558-Q41-02                           10/9/2001
------------------------------------------------------------------------------------------------------------------------------------
7.  FOR SOLICITATION      a.  NAME                                        b.  TELEPHONE NUMBER (No         8. OFFER DUE DATE/
INFORMATION CALL:               Berma Norris                              Collect Calls)                   10/24/01; 4:30 pm LOCAL

                                                                                           919/286-6915
------------------------------------------------------------------------------------------------------------------------------------
9. ISSUED BY                        CODE   558/90C  10. THIS ACQUISITION IS      11. DELIVERY FOR FOB      12. DISCOUNT TERMS
                                                                                 DESTINATION UNLESS
                                                    |X| UNRESTRICTED             BLOCK IS MARKED
                                                    |_| SET ASIDE  % FOR         |_| SEE SCHEDULE
Department of Veterans Affairs                      |_| SMALL BUSINESS
VA Medical Center                                   |_| SMALL DISADV. BUSINESS
Acquisition Materiel Management (90C)               |_| 8(A)
508 Fulton Street
Durham, NC 27705                                           NAICS
Attn:  Berma Norris                                 SIC. 541613
                                                    SIZE STANDARD: $5.0 MILLION
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 |_|13A. THIS CONTRACT IS A RATED ORDER
                                                                                        UNDER DPAS (15 CFR 700)
                                                                                 N/A
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 13B. RATING   N/A
------------------------------------------------------------------------------------------------------------------------------------
                                                                                 14. METHOD OF SOLICITATION
                                                                                 |X| RFQ         |_| IFB           |_| RFP
------------------------------------------------------------------------------------------------------------------------------------
15. DELIVER TO                      CODE            16. ADMINISTERED BY                                                    CODE

         Same as Block 9                                                          Same as Block 9

------------------------------------------------------------------------------------------------------------------------------------
             CODE  1TFT6        FACILITY            18A. PAYMENT WILL BE MADE BY                                           CODE
                                CODE

 National Research Corporation                      RESOURCES SUPPORT SERVICE (04)
   1245 Q. Street                                   VA Medical Center (558)
  Lincoln, NE 68508                                 1970 Roanoke Blvd.
                                                    Salem, VA 24153
Duns No.          05-085-7788
Telephone No. 800-388-4264  fax 402-475-9061
------------------------------------------------------------------------------------------------------------------------------------
|_|                                                 18B.SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18A UNLESS BLOCK BELOW IS CHECKED
17B.CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH                           |_| SEE ADDENDUM
ADDRESS IN OFFER
------------------------------------------------------------------------------------------------------------------------------------
     19                               20                                21               22               23             24
  ITEM NO.               SCHEDULE OF SUPPLIES/SERVICE                QUANTITY           UNIT          UNIT PRICE       AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
1.               Furnish Veteran Satisfaction Surveys in accordance                                                   Attached
                 with the attached scope of work for the Performance
                 Analysis Center for Excellence (PACE) located at
                 615 Davis Drive, Suite 800, Morrisville, NC, in
                 accordance with MOBIS - Schedule 874-3 Survey Services.
                 AS DESCRIBED HEREIN:

                     (ATTACH ADDITIONAL SHEETS AS NECESSARY)
------------------------------------------------------------------------------------------------------------------------------------
25. ACCOUNTING AND APPROPRIATION DATA                                               26. TOTAL AMOUNT AWARD (FOR GOVT. USE ONLY)
    36X4537B3      BOC 2529   Cost Center 615300      HT1002                                  Est. $4,665,882.00
------------------------------------------------------------------------------------------------------------------------------------
|X| 27A.SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3     ADDENDA |X|  ARE  |_| ARE NOT ATTACHED.
        AND FAR 52.212-5 ARE ATTACHED.
|_| 27B.CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4.                 ADDENDA |_| ARE |_| ARE NOT ATTACHED.
        FAR 52.212-5 IS ATTACHED.
------------------------------------------------------------------------------------------------------------------------------------
28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN ___0____ COPIES       29. AWARD OF CONTRACT:  REFERENCE __your__ OFFER
    TO ISSUING OFFICE.  CONTRACTOR AGREES TO FURNISH AND DELIVER ALL ITEMS SET    |X| YOUR OFFER ON SOLICITATION (BLOCK 5),
|X| FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL SHEETS SUBJECT TO   INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET
    THE TERMS AND CONDITIONS SPECIFIED HEREIN.                                    FORTH HEREIN, IS ACCEPTED AS TO ITEMS: MARKED "A"
                                                                                  DATED    10/23/01
------------------------------------------------------------------------------------------------------------------------------------
30A. SIGNATURE OF OFFEROR/CONTRACTOR                               31A. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

------------------------------------------------------------------------------------------------------------------------------------
30B. NAME AND TITLE OF SIGNER (TYPE OR PRINT)   30C DATE SIGNED  31B. NAME OF CONTRACTING OFFICER (TYPE OR PRINT)  31C. DATE SIGNED

Patrick E. Beans, CFO                               10/23/01     BERMA K. NORRIS
------------------------------------------------------------------------------------------------------------------------------------
32A. QUANTITY IN COLUMN 21 HAS BEEN                             33. SHIP NUMBER       34. VOUCHER NUMBER    35. AMOUNT VERIFIED
                                                                                                                CORRECT FOR
|_| RECEIVED    |_| INSPECTED   |_| ACCEPTED AS CONFORMS TO THE  -----------------
                       CONTRACT, EXCEPT AS NOTED                   PARTIAL   FINAL
------------------------------------------------------------------------------------------------------------------------------------
32B. SIGNATURE OF AUTHORIZED GOVT. REPRESENTATIVE    32C. DATE     36. PAYMENT                              37. CHECK NUMBER

                                                                   __ COMPLETE   __ PARTIAL   __ FINAL
------------------------------------------------------------------------------------------------------------------------------------
41A. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT      38. S/R ACCOUNT NUMBER  39. S/R VOUCHER NUMBER   40. PAID BY
------------------------------------------------------------------------------------------------------------------------------------
                                                                   42A. RECEIVED BY (PRINT)
------------------------------------------------------------------------------------------------------------------------------------
41B. SIGNATURE AND TITLE OF CERTIFYING OFFICER       41C. DATE     42B. RECEIVED AT (LOCATION)
------------------------------------------------------------------------------------------------------------------------------------
                                                                   42C. DATE REC'D         42D. TOTAL CONTAINERS
                                                                   (YY/MM/DD)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
                                       2
<PAGE>
RFQ 558-Q41-02
CONTINUATION BLOCK

2.1  CONTRACT ADMINISTRATION DATA

(continuation from Standard Form 1449, block 18A.)

1.   Contract Administration: All contract administration matters will be
handled by the following individuals:

         a.       CONTRACTOR:       National Research Corporation
                                    1245 Q. Street
                                    Lincoln, NE 68508

         b.       GOVERNMENT:       Contracting Officer (90C)
                                    Berma Norris
                                    Dept. of Veterans Affairs Medical Center
                                    508 Fulton Street
                                    Durham NC 27705-3875

2.   CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the
contractor will be made in accordance with:

          [X] 52.232-34, Payment by Electronic Funds Transfer - Other than
                         Central Contractor Registration, or

mailed to the following address:
                                ------------------------------------------------

                                  ---------------------------------------------

                                  ---------------------------------------------

3.   INVOICES: Invoices shall be submitted in arrears:

     a.   Quarterly              [ ]
     b.   Semi-Annually  [ ]
     c.   Other                  [X] (please specify) Monthly
                                                      -------

4.   GOVERNMENT INVOICE ADDRESS: All invoices from the contractor shall be
mailed to the following address:

     Fiscal Officer (04)
     Department of Veterans Affairs Medical Center
     508 Fulton Street
     Durham, NC 27705

OFFERORS MUST COMPLETE AND RETURN ALL INFORMATION DESIGNATED IN 52.212-1,
INSTRUCTIONS TO OFFERORS - COMMERCIAL ITEMS, PARAGRAPH b, PRIOR TO THE TIME
SPECIFIED IN BLOCK 8 OF SF 1449 IN ORDER TO BE CONSIDERED FOR AWARD.

ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to
the Solicitation numbered and dated as follows:

                                       3
<PAGE>

              Price/Cost Proposal - VHA RFQ NRC Alternate Approach

                                       4
<PAGE>
              Price/Cost Proposal - VHA RFQ NRC Alternate Approach
                           Base Year - September 2002

--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
1. Recently Discharged Inpatient Survey
    Semi-Annually (* estimated patients)              2    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
2. Ambulatory Care Survey General Primary Care
    Visits (Quarterly) (* estimated patients)         4    Surveys     *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
3. Ambulatory Care Survey Persian Gulf Era Survey
    (Deployed and Non-Deployed) Annually              1    Surveys     *     *
     (* estimated patients)
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.

                                       5
<PAGE>
--------------------------------------------------------------------------------
4. Ambulatory Care Spinal Cord Patient Survey
    Annually (* estimated patients)                  1     Surveys     *     *
   16 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
5. Home Based Primary Care Survey Annually
     (* estimated patients)                          1     Surveys     *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
6. Prosthetics and Sensory Aids Patient Survey
     (* estimated patients)                          1     Surveys     *    *
   10 pages approx. (Every other year)
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
7. Diabetic Foot Care (DQIP) Annually
     (* estimated patients)                          1     Surveys     *     *
   20 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       6
<PAGE>
The Government may exercise the option to renew this contract for four (4)
additional years in accordance with Clause 52.217-9. If the option is exercised,
written notice will be provided.

SUPPLIES OR SERVICES AND PRICE/COST

OPTION YEAR I:

Contractor to provide all labor, equipment, materials and supervision to process
Patient Surveys as listed herein for the Department of Veterans Affairs for the
period of October 1, 2002 through September 30, 2003.

--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
1. Recently Discharged Inpatient Survey
    Semi-Annually (* estimated patients)              2    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
2. Ambulatory Care Survey General Primary Care
    Visits (Quarterly) (* estimated patients)         4    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       7
<PAGE>
--------------------------------------------------------------------------------
3. Ambulatory Care Survey Persian Gulf Era Survey
    (Deployed and Non-Deployed) Annually
    (*estimated patients)                             1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
4. Ambulatory Care Spinal Cord Patient Survey
    Annually (* estimated patients)                   1    Surveys    *     *
   16 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
5. Home Based Primary Care Survey Annually
    (* estimated patients)                            1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
6  Diabetic Foot Care (DQIP) Annually
    (* estimated patients)                            1    Surveys    *     *
   20 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       8
<PAGE>
SUPPLIES OR SERVICES AND PRICE/COST

OPTION YEAR II:

Contractor to provide all labor, equipment, materials and supervision to process
Patient Surveys as listed herein for the Department of Veterans Affairs for the
period of October 1, 2003 through September 30, 2004.

--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
1. Recently Discharged Inpatient Survey Semi-Annually
    (* estimated patients)                            2    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
2. Ambulatory Care Survey General Primary Care Visits
    (Quarterly) (* estimated patients)                4    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
3. Ambulatory Care Survey Persian Gulf Era Survey
    (Deployed and Non-Deployed) Annually
    (*estimated patients)                             1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       9
<PAGE>
--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
4. Ambulatory Care Spinal Cord Patient Survey
    Annually (* estimated patients)                   1    Surveys    *     *
   16 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
5. Home Based Primary Care Survey Annually
    (* estimated patients)                            1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
6. Prosthetics and Sensory Aids Patient Survey
    (* estimated patients)                            1    Surveys    *     *
   10 pages approx. (Every other year)
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
7. Diabetic Foot Care (DQIP) Annually
    (* estimated patients)                            1    Surveys    *     *
   20 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       10
<PAGE>
SUPPLIES OR SERVICES AND PRICE/COST

OPTION YEAR III:

Contractor to provide all labor, equipment, materials and supervision to process
Patient Surveys as listed herein for the Department of Veterans Affairs for the
period of October 1, 2004 through September 30, 2005.

--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
1. Recently Discharged Inpatient Survey Semi-Annually
    (* estimated patients)                            2    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
2. Ambulatory Care Survey General Primary Care Visits
    (Quarterly) (* estimated patients)                4    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
3. Ambulatory Care Survey Persian Gulf Era Survey
    (Deployed and Non-Deployed) Annually
    (*estimated patients)                             1    Surveys    *    *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       11
<PAGE>
--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
4. Ambulatory Care Spinal Cord Patient Survey
    Annually (* estimated patients)                   1    Surveys    *     *
   16 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
5. Home Based Primary Care Survey Annually
    (* estimated patients)                            1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
6. Diabetic Foot Care (DQIP) Annually
    (* estimated patients)                            1    Surveys    *     *
   20 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       12
<PAGE>
SUPPLIES OR SERVICES AND PRICE/COST

OPTION YEAR IV:

Contractor to provide all labor, equipment, materials and supervision to process
Patient Surveys as listed herein for the Department of Veterans Affairs for the
period of October 1, 2005 through September 30, 2006.

--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
1. Recently Discharged Inpatient Survey Semi-Annually
     (* estimated patients)                           2    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
2. Ambulatory Care Survey General Primary Care Visits
    (Quarterly) (* estimated patients)                4    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
3. Ambulatory Care Survey Persian Gulf Era Survey
    (Deployed and Non-Deployed) Annually
    (* estimated patients)                            1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       13
<PAGE>
--------------------------------------------------------------------------------
ITEM                                                                       TOTAL
 NO.                       SURVEY DESCRIPTION         QTY  UNIT  UNIT COST  COST
--------------------------------------------------------------------------------
4. Ambulatory Care Spinal Cord Patient Survey
    Annually (* estimated patients)                   1    Surveys    *     *
   16 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
5. Home Based Primary Care Survey Annually
    (* estimated patients)                            1    Surveys    *     *
   12 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
6. Prosthetics and Sensory Aids Patient Survey
    (* estimated patients)                            1    Surveys    *     *
   10 pages approx. (Every other year)
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------
7. Diabetic Foot Care (DQIP) Annually
    (* estimated patients)                            1    Surveys    *     *
   20 pages approx.
   Set Up Costs                         *
   Printing                             *
   Distribution Costs                   *
   Receipt and Processing Costs         *
   Comment Capture                      *
   Reporting                            *
   POSTAGE                              *
--------------------------------------------------------------------------------

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.
                                       14January 4, 2002

Via Facsimile Transmission                           CONFIDENTIAL

Mr. Michael C. Higgins
Widepoint Corporation
One Mid-America Plaza,  Suite 403
Oak Brook Terrace, IL  60181

Dear Mike:

This letter will confirm the agreement between you and Widepoint Corporation
(formerly Zmax Corporation), hereinafter the "Company", regarding the
termination of your Employment and Non-Compete Agreement dated as of September
1, 1999 (the "Employment Agreement") with the Company, in the form of a
Separation Agreement (the "Agreement") as follows:

1. In consideration of the payments herein described, you resign your employment
and all positions and offices held with the Company and any of its affiliates,
including your responsibilities as a Director of the Company, effective as of
the close of business on December 31, 2001 (the "Separation Date"). It is
understood that the Company and its affiliates will take actions in reliance on
your resignation and that your resignation is irrevocable. Company hereby waives
the sixty (60) day notice requirement for such resignation.

2. No later than 10 days following the Separation Date, you will receive your
salary for all work performed during the last payroll period of your employment,
if not yet fully compensated.

3. In consideration of your acceptance of this Agreement and subject to your
meeting in full your obligations under it, and subject further to your continued
compliance with the provisions of Paragraph 5 (for a 6 month period commencing
on the Separation date), and Paragraph 6 (for such period as the information is
deemed by Company to be confidential) of your Employment Agreement :

     a) The Company will provide you a payment in the amount of $95,625.00,
representing 6 Months of salary at your now current rate of compensation,
payable in a single lump sum, less any legally required deductions, no later
than 10 days following the Separation Date, in consideration for a release of
any and all obligations of the Company and its affiliates to you.

     b) The Company will immediately provide you with 100,000 Vested Stock
Options at an exercise price of $0.18 per share, such price being consistent
with other senior management Options awarded in 2001. The Exercise Period for
these Options will be extended to one (1) year from the Separation Date, or
December 31, 2002.

     c) The Company will reimburse you for all business expenses which you
incurred in connection with your employment through the Separation Date,
provided that (i) such expenses are eligible for reimbursement under the
Company's expense policy; and (ii) that you submit all documentation and
substantiation of such expenses required under that policy no later

                                       1
<PAGE>

than January 31, 2002. Without limiting the generality of the foregoing, no
personal expenses are eligible for reimbursement.

     d) The Company agrees that its officers and directors, and any agents,
representatives, or affiliates, speaking on behalf of the Company, including but
not limited to Steve Komar, Norman Wareham, James Ritter, James McCubbin, and
Mark Mirabile, shall refrain from commenting on your performance during your
employment with the Company, excluding only positive comments concerning you
made in the sole discretion of the Company, its officers and directors, agents,
representatives or affiliates.

4. You agree that, notwithstanding anything contained to the contrary, whether
in the Employee Agreement or otherwise, the payments provided under paragraphs 2
and 3 of the Agreement are in complete satisfaction of any and all compensation
or other payments due to you from the Company or any of its affiliates, whether
for services provided or otherwise, through the Separation Date, expressly
excluding payments or distributions due to you as an investor in the Company,
and that, except as expressly provided under this Agreement in accordance with
the terms of the Employment Agreement, no further compensation or other payments
are owed to you. You will not continue to earn vacation or other paid time off
after the Separation Date. Your participation in all employee benefit plans of
the Company will end as of the Separation Date, with the exception of
medical/dental coverage (the employer portion of which will continue to be
funded by the Company), such coverage to continue at your election through June
30, 2002. You may further elect to continue, at your cost, your participation
and that of your eligible dependents in the Company's group health and dental
plans for a limited additional period of time, in accordance with the terms and
conditions of the federal law known as "COBRA."

5. You agree that neither yourself nor any agent, representative or affiliate
will comment on your relationships, experiences, or opinions of the Company or
its Officers or Directors, excluding only positive comments made by you or your
representatives in your sole discretion.

6. You agree to return to the Company, no later than 30 days following the
Separation Date, any and all documents, materials and information (whether in
hardcopy, on electronic media or otherwise) related to Company business (whether
present or otherwise) and all keys, access cards, and credit cards (not
including miscellaneous office equipment and supplies) of the Company and its
affiliates in your possession or control. Further, you give the Company
assurance that you will not retain any copy of any documents, materials or
information of the Company or any of its affiliates (whether in hardcopy, on
electronic media or otherwise). Finally, you will provide a written statement
attesting that you have complied with the provisions of this Paragraph to the
best of your knowledge. The Company will then acknowledge and accept these
representations in writing, such acceptance not to be unreasonably withheld.

7. In exchange for the payments provided you hereunder, you, on behalf of
yourself and your affiliates, hereby freely and voluntarily release and forever
discharge the Company and its affiliates, including without limitation all of
the respective directors, officers, managers, shareholders, members, general and
limited partners, employees, agents, successors and assigns of the foregoing and
all others connected with any of them, both individually and in their official
capacities, from any and all causes of action, rights or claims that you have
had in the past, now have, or might now have, in any way related to or arising
out of your Employment Agreement, or

                                       2
<PAGE>

your investment in the Company, or pursuant to any federal, state or local law,
regulation or other requirement. You hereby further covenant and agree to
indemnify all of the foregoing persons and entities from any and all claims that
you may directly or indirectly make in contravention of this paragraph or in
breach of any of the provisions of this Agreement.

8. The Company and its affiliates, including without limitation all of the
respective directors, officers, and successors and assigns of the foregoing,
both individually and in their official capacities, hereby freely and
voluntarily release and forever discharge you from any and all causes of action,
rights or claims that they have had in the past, now have, or might now have, in
any way related to or arising out of your Employment Agreement, or your
investment in the Company, or pursuant to any federal, state or local law,
regulation or other requirement. The Company hereby further covenants and agrees
to indemnify you from any and all claims that it may directly or indirectly make
in contravention of this paragraph or in breach of any of the provisions of this
Agreement.

9. This letter contains the entire agreement between you and the Company and
replaces all prior employment-related agreements, communications and
understandings, whether written or oral, with respect to your employment, and
its termination by the Company and all matters related thereto, excluding only
Paragraphs 5 and 6 of the Employment Agreement, which shall remain in full force
and effect in accordance with their terms for an indefinite period with respect
to Paragraph 6 and for a period of six months with respect to Paragraph 5. All
other provisions of the Employment Agreement are hereby terminated.

10. In signing this Agreement, you give the Company assurance that you have read
and understood all of its terms; that you have had a full and reasonable
opportunity to consider its terms and to consult with anyone of your choosing;
that you have signed this Agreement knowingly and voluntarily; and that in
signing this Agreement you have not relied on any promises or representations,
express or implied, which are not set forth expressly in this Agreement.

If the terms of this Agreement are acceptable to you, please sign, date and
return this letter to me via Facsimile transmission no later than the close of
business on January 9, 2002. At the time you sign and return this letter to me,
it will take effect as a legally binding agreement between you and the Company
on the basis set forth above.

Sincerely,

WIDEPOINT CORPORATION
By:

----------------------------------
Steve L. Komar
Chairman of the Board of Directors

Accepted and agreed:

----------------------------------                ----------------------
MICHAEL C. HIGGINS                                Date

                                       3

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