WHISTLEBLOWER POLICY

NIC Inc. and its subsidiaries ("NIC" or the "Company") are committed to achieving compliance with all applicable securities laws and regulations, accounting standards, internal accounting controls and audit practices. Employees are expected to report any complaints or concerns regarding accounting, internal accounting controls, or auditing matters. The Audit Committee of the NIC Board of Directors (the "Audit Committee") will oversee treatment of employee concerns in this area. The Audit Committee is made up of directors who are not affiliates or officers of the Company.

In order to facilitate the reporting of employee complaints, the Audit Committee has established procedures for (1) the receipt, retention, and treatment of complaints regarding accounting, internal accounting controls, or auditing matters ("Accounting or Auditing Matters") and (2) the confidential, anonymous submission by employees of concerns regarding questionable Accounting or Auditing Matters.

This Policy Applies to
All employees.

Complaint Procedure
An employee of NIC Inc. or its subsidiaries ("NIC" or the "Company") may submit a complaint regarding Accounting or Auditing Matters through the procedures described below. These procedures also permit employees to submit anonymous reports. All reports will be treated confidentially to the extent reasonably possible. No one will be subject to retaliation of any kind because of a good faith report of a complaint or concern regarding Accounting or Auditing Matters.

In order to facilitate the reporting of employee complaints, the Audit Committee has established the following procedures:

Receipt of Employee Complaints

• Employees may forward concerns regarding Accounting or Auditing Matters through the employee hotline at 1-866-325-5329. Reports may be made anonymously to the hotline.
• Employees may forward concerns regarding Accounting or Auditing Matters by sending an e-mail to confidential@nicusa.com. This e- mail account automatically removes the sender's contact information from the document header to ensure anonymity. Any employee who wishes to disclose his/her identity will need to include contact information in the body of the e-mail.
• Employees may forward concerns regarding Accounting or Auditing Matters on an anonymous basis via U.S. Mail. All complaints may be sent through regular mail marked CONFIDENTIAL and addressed as follows:
  
  Mr. Art Burtscher
  Chairman - NIC Board of Directors Audit Committee
  c/o McCarthy Group Advisors
  One Pacific Place, Suite 250
  1125 South 103rd Street
  Omaha, NE 68124
  

Scope of Matters Covered by These Procedures
These procedures cover employee complaints relating to any questionable Accounting or Auditing Matters, including, but not limited to:

• Fraud or deliberate error in the preparation, evaluation, review or audit of any financial statement of NIC;
• Fraud or deliberate error in the recording and maintaining of financial records of NIC;
• Deficiencies in or noncompliance with NIC's internal accounting controls;
• Misrepresentation or false statement to or by a senior officer or accountant regarding a matter contained in the financial records, financial reports or audit reports of NIC; or
• Deviation from full and fair reporting of NIC's financial condition.

Treatment of Complaints

• Upon receipt of a complaint NIC's Audit Committee Chair will (I) determine whether the complaint actually pertains to Accounting or Auditing Matters and (II) when possible, acknowledge receipt of the complaint to the sender.
• Complaints relating to Accounting or Auditing Matters will be reviewed under the Audit Committee's direction and oversight. The review will be conducted in a confidential manner to the fullest extent possible consistent with the need to conduct an adequate review. Members of management not involved in the complaint may be used to assist the committee.
• Prompt and appropriate corrective action will be taken when and as warranted in the judgment of the Audit Committee.
• NIC will not discharge, demote, suspend, threaten, harass, or in any manner discriminate against any employee in the terms and conditions of employment based upon any lawful actions of such employee with respect to good faith reporting of complaints regarding Accounting or Auditing Matters or otherwise as specified in Section 806 of the Sarbanes-Oxley Act of 2002.

Reporting and Retention of Complaints and Investigations
The Audit Committee will maintain a log of all complaints, tracking their receipt, investigation and resolution and prepare a summary report for the NIC Board of Directors on a quarterly basis, or more frequently if warranted. If there have been no complaints, the quarterly report will specifically state that fact. Copies of complaints and the log will be maintained in accordance with NIC's document retention policy.
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