PSr GROUP Project “Rome” Campaign Intell igence & Influence Services Proposal April 2016 Overview PSV GROUP This document details the services proposed by Psy Group for the “Lion" project between now and July 2016. Psy was asked to provide a proposal for the following services: 1. Conduct initial mapping and analysis of approx. 5,000 targets belonging to “Rome”, dividing them into: a. Pro “Lion” b. Pro “Bear” c. Undecided / Unknown 2. Conduct automated analysis (using sentiment analysis and other tools) to create an initial snapshot of the split and reach initial sorting into the above categories as a base for the activity. 3. Apply complementary manual intelligence research and analysis to further assist with mapping and improve the quality and accuracy of the split into groups. 4. Conduct intensive influence activities and campaigns with a focus on the undecided delegates and their influences in order to sway them towards Lion. To note, due to the sensitivity of some of the activities and the need for compartmentalization and secrecy, Psy Group will use code names (list of code names to be provided separately), password protected documents and other security measures. Furthermore, Psy Group will provide all services in accordance with the laws and regulations of the country/ies in which they are conducted. Plan Detail Based on the goals defined by the client, we propose the following activity: Phase 1 - Initial Mapping Psy will engage in thorough, multisource intelligence collection and analysis to rapidly map the 5,000 Rome targets and divide them into an initial split as follows: 1. Pro/ Supporting Lion* 2. Pro/Supporting Bear* 3. Unknown / Undecided * the exact definition and threshold of Pro/Supporting will be defined together with Lion’s professional team. The initial analysis and screening will combine a variety of automated and proprietary tools (specialized crawlers, top-notch Israeli sentiment analysis software, algorithms and more) as well as manual review and analysis by intelligence experts who are all veteran intelligence officers. The automated collection and analysis will enable rapid collection, aggregation and breakdown of large volumes of data on each target - OSINT (open source intelligence), proprietary / closed databases, social media, etc. This method will provide an initial ranking for each target, placing them into one of the above 3 categories. In our experience, areas with a high level of emotional involvement such as politics tend to pose a big challenge for automated contextual and sentiment-based systems and methods. In light of the task at hand, it is imperative to reach the highest degree of accuracy in categorizing the targets. Therefore, Psy will run manual reviews on the information collected on each target to verify the accuracy of the automatic sorting process, decrease the number of unknowns and avoid false positives and negatives. www.psy-group.com P5V GROUP Combining both approaches (automated and manual) described above will provide us with the following deliverables: • Qualified base mapping and categorization • Base intelligence dossier on each target, including actionable intelligence (likes, dislikes, areas of interest, inner circles, etc.) that will serve the outreach and influence teams in the next phase. Dossier Pro Against ~T — Undecided Phase 2 - Influence & Ongoing Mapping Although the full list of targets for Rome will be available only in the beginning of June, we will conduct phase 2 in parallel to phase 1, with a slightly staggered start. We assume the initial mapping will yield the first batch of qualified targets (i.e definite Lion, definite Bear and definite unknown) within several days and we will therefore commence influence activities in tandem to the initial mapping stage as targets become available from the collection team. Psy will proceed at this stage to apply our proprietaiy Influence-*- process, a highly effective and structured process of influencing targets through the use of messages tailored to them specifically based on research and intelligence, and delivered through authentic or authentic-looking 3rd party platforms for maximum efficacy and resonance. The process is depicted in the following illustration: Who How What II II Identify Target Audience/s Plan and Create Influence Prepare Messages Deliver Messages Ongoing montirolng Platforms & Infrastructure and Content and Content and feedback www.psy-group.com P5V GROUP The lnfluence+ process has 3 main stages: Who, How and What “Who“- together with Lion’s campaign team and based on the results of the initial mapping and analysis, we will prioritize the targets to focus on (only undecided / unknown, attempt to convert identified Bear supporters, fortify contact with and affirm decision of Lion supporters, etc.). Each target will already have a general and actionable intelligence dossier as a product of the initial mapping stage, and during this phase additional information will be collected as needed. “How in parallel to the mapping and selection of the actual targets for the influence+ activity, we will create the delivery platforms and mechanisms to lead the campaign and deliverthe messages and content to the specific targets. In general, there are two types of platforms created for the campaign in this stage: • Intelligence platforms - this activity involves setting up the infrastructure required to collect actionable intelligence from the targets (in addition to open source, Lion’s team, covert sources, etc.) by using tailored avatars, 3rd parties and more. Once the information has been uncovered or extracted, it is delivered to the Influence platform for use in the campaign as needed. This is also a part of the ongoing mapping process, which aims to expand and further qualify targets screening and selection following the initial mapping phase. • Influence platforms - like the intelligence platforms, this activity also involves setting up the required infrastructure using assets like tailored avatars, 3rd parties and more. The purpose of these platforms is to engage the targets and actively convince them orsway their opinion towards our goals as well as enable delivery of the desired tailored messages to the targets as well as to actively engage them. “What” - the tailored message that will be deemed most effective along with the how (the proper vessel). Once the required information has been obtained, identified our produced, we will then package it for effective delivery to the target audience/s. The “What” includes information like ulterior motives and hidden plans of the opponents, reasons to vote for Lion in ways that resonate with the target (i.e from a like-minded individual, concerned citizen, influencer, activist, former Bear supporter, etc.), and more. Once the information is obtained, it is assigned to the delivery platform that is deemed the most effective to deliver it to the target audience. The lnfluence+ process assumes several main underlying assumptions and deliverables: • All engagement, outreach and other contact with targets will be done by Psy using authentic 3rd party voices, dedicated platforms and tailored approaches. This will enable each approach to look authentic and not part of the paid campaign. • We assume several points of contact with each target overthe project duration. This is required to convert tougher targets, maintain contact with converted targets to ensure they do not change their mind, etc. • We will operate across multiple media platforms, both online and offline. Our research and operational intelligence dossiers will indicate which media is most appropriate to which target/s. • Constant ongoing automated/manual screening and monitoring throughout the project • At present we assume (statistically) that we will actively engage up to 2,500 undecided / unknown targets with ourlnfluence+ activity. • All Psy influence activity will be carried out in parallel to Lion’s other campaign efforts and will be totally detached from it. Intelligence well be provided to the campaign as required. We recommend keeping this www.psy-group.com P5V GROUP activity compartmentalized and on need-to-know basis since secrecy is a key factor in the success of the activity. Project Resources Psy will establish a dedicated team within the company that will work on Project Rome specifically. The team will include over 40 intelligence and influence experts and supporting functions, namely: • Project Manager • Campaign / Creative Manager • Reputation Management Expert • Intelligence Collection Officer • Team Managers - Intelligence and Outreach • Intelligence Collection Team • Outreach Team • Active Intelligence Specialists (Avatars / Platforms) • Intelligence Specialist • Graphic design team • Content writers • Technology team (systems, software, algorithms) Timeline and Major Activities The following is a timeline of the major activities, including scale-up phase (when applicable): APRIL MAY JUNE JULY Platform setup - ► vt Initial monitoring w Automated collection w Ongoing Monitoring W W Content * Packaging W w Outreach w Regular Activity Scale-up Activity www.psy-group.com PSV GROUP Legality and Confidentiality As previously mentioned, Psy applies strict confidentiality parameters to every activity we conduct. The client and target are compartmentalized on a need-to-know basis. Projects, targets and client information are assigned code names for security reasons and external communication is password protected and kept at a minimal level to prevent information leakage. Psy prides itself on highly professional conduct and a strict code of ethics. While the activity we conduct involves significant creativity and out-of-the-box thinking, we always adhere to a very high moral code we have set for ourselves and abide by the laws of the countries we operate in. We retain top legal counsel on a regular basis to ensure activities are in full legal compliance. Cost & Payment Terms The above proposed activity will cost $3,210,000. This does not include the cost of media, which will be billed at cost + 20% management fee and pre-approved with the client in advance prior to committing and spending. We estimate media cost at around $100,000 at this point (mostly social / online media). In the event that developments warrant a change in media spending or additional media channels, this will be analyzed and presented to the client for approval in advance. Payment terms are: • 1/3 - signing of contract • 1/3 - 2 months from initiation of project • 1/3 - end of project www.psy-group.com GROUP Project “Rome” Opposition Intelligence Research April 2016 P5V This document details the services proposed by Psy Group for opposition intelligence research and analysis. Psy was asked to provide a proposal for the following services: 1. Intensive, deep open source opposition research on target “Forest" and her 10 closest associates (names to be supplied by Lion’s team). 2. Additional follow-up research on the information found and any new information that surfaces at the time of the research. To note, due to the sensitivity of some of the activities and the need for compartmentalization and secrecy, Psy Group will use code names (list of code names to be provided separately), password protected documents and other security measures. Furthermore, Psy Group will provide all services in accordance with the laws and regulations of the country/ies in which they are conducted. Prior to conducting the research, Psy will consult with the “Lion" team to define and prioritize the research EEls (Essential Elements of Information), as well as the list of targets. This will enable us to focus our research and collection activities on gaining the most relevant information for Lion’s team. Based on the EEI prioritization, Psy will engage in thorough, multisource intelligence collection and analysis on target “Forest” and her 10 closest associates as indicated by Lion’s team. The research will include the following: 1. Comprehensive open source intelligence (OSINT) collection and analysis. 2. Cross references with various sources of information (public and paid) 3. Additional complementary intelligence activities. 4. Preparation of detailed intelligence dossiers on each target. 5. Additional follow-up research stage on the information found and any new information that surfaces (external or internal) during the research stage. At the end of the process, Lion’s team will have an in-depth, comprehensive intelligence dossier on each of the intelligence targets, based on the brief from Lion’s team and the agreed EEls. Each dossier will also include any actionable intelligence collected. Psy will setup a dedicated team of intelligence officers and analysts within the company for Project Forest The team will include the following functions: • Senior Intelligence Officer • Intelligence Collection Officer • Intelligence Collection Team • Expert Intelligence professionals (as required) • Teclh support www.psy-group.com ' " S P5V GROUP We estimate full review of all available information, preparation of the intelligence dossiers and follow-up reviews will require approx. 3 months. Psy applies strict confidentiality parameters to every activity we conduct. The client and target are compartmentalized on a need-to-know basis. Projects, targets and client information are assigned code names for security reasons and external communication is password protected and kept at a minimal level to prevent information leakage. Psy prides itself on highly professional conduct and a strict code of ethics. While the activity we conduct involves significant creativity and out-of-the-box thinking, we always adhere to a very high moral code we have set for ourselves and abide by the laws of the countries we operate in. We retain top legal counsel on a regular basis to ensure activities are in full legal compliance. The above proposed activity will cost $400,000. This includes all costs associated with the project. Payment terms are: • 1/3 - signing of contract • 1/3 - 1.5 months from initiation of project • 1/3 - end of project www.psy-group.com G R 0 !VSay 2016 Psy Group (“PSY”) specializes in innovative influence and intelligence activities tailored to a client's unique needs. With its proven skills of persuasion, PSY generates influence through various online and offline platforms, assets and techniques. PSY’s customized solutions are designed and oriented toward the defined target audience(s). Through its advanced intelligence-gathering capabilities, PSY works with each client to create and promote tailored third-party messaging directed toward optimizing impact and acceptance within the target audience(s). To achieve the desired outcome in the 2016 presidential campaign, PSY recommends and offers the specialized services as outlined below (“PROJECT ROME”). Note that these proprietary services are intended and designed to supplementthe general campaign efforts. These services focus on select voter groups/segments that may not be susceptible to campaign messaging originating from the candidate or organizations known to be affiliated with the candidate. Such targeted voter groups/segments may include but not be limited to: • Minority communities • Suburban female voters • Undecided/swing voters in battleground states PSY proposes that PROJECT ROME be comprised of the following key elements: • Plan and coordinate all specialized intelligence and influence activities with the general campaign staff. • Conduct necessary intelligence gathering and analysis to support the creation of targeted and trusted, third-party messaging and online/virtual platforms to optimize audience impact and acceptance. • Create, cultivate and operate numerous online/virtual platforms and “avatars” (tailored online platforms/personas created specifically to engage and interact with the target audiences) to deliver the required messaging. The messages may include: o Positive reinforcement of the candidate’s strengths and merits, delivered to the target audience by like-minded individuals, people of the same/similar background, fellow promoters and supporters of “change", opposing party members who have “seen the light”, etc. o Alternative messaging to highlight the weaknesses of the candidate’s opponent. • Create immediate buzz” to emphasize and capitalize on real-time positive developments for the candidate during the campaign and to divert attention away from negative messaging by the candidate’s opponent and incoming media attacks. • Develop international online platforms geared toward influencing global/foreign country audiences with positive messaging about the candidate that will resonate with US voters. • Map and conduct advanced due diligence on the opposition 's campaign staff and key personnel; prepare and deliver messaging to highlight weaknesses within opposition campaign leaders and expose rifts and rivalries within opposition. PSY seeks to commence immediately with a two-stage process that will run until the November elections: • STAGE 1 (May-July 2016): coordinate efforts with campaign team; conduct intelligence gathering and analysis; plan and create the required third-party online assets (virtual platforms, websites, avatars) for optimizing influential outcomes within targeted audience(s). • STAGE 2 (July-Nov. 2016): Deploy online assets; recruit online influencers and supporters; engage and monitor target audience(s) to ensure effectiveness of specialized influence activities. www.psy-group.com