ScheinDesign Interactive™ – Kaplan Proposal January 2010 ScheinDesign Interactive™ Draft Proposal Version 1.0 Kaplan, Inc.™ – January 2010 Kaplan University, Kaplan Higher Education, Kaplan Test Prep & Admissions, Kaplan Professional, Kaplan K12 I. Executive Summary: Kaplan, Inc. (herein “KAP”). Reference to other KAP business units will be preceded by KAP- and abbreviated with the first letters of each word capitalized. E.g. Kaplan University will be: KAP-KU. Based on past and present knowledge, analysis, press releases, news releases, customer feedback, competitive landscape, online presence, partnerships, acquisitions and researchable and downloadable documentation, ScheinDesign Interactive™ (herein “SDI™”) has prepared this draft proposal to provide the basis for additional discussions and progress towards defining opportunities for KAP, KAP-KU, KAP-HE, KAP-TPA, KAP-PU and KAP-K12. The initial release of Version 1.0 is designed to provide the foundation for long-term business relationship and goals, as the first list of 10 proposed deliverables to be executed in a phased approach. Version 1.0 will also act as a draft proposal, while maintaining flexibility to qualify and quantify a final proposal to be followed by mutually agreeable terms in the form of a contract, which will include a fee structure, timeline and list of deliverables to be delivered by both SDI™ and KAP in completion of the proposed projects listed below. SDI™'s suggested Version 1.0 approach will focus primarily on goals and deliverables, existing SDI services and opportunities as we further define the development schedule and budget for customizing and developing an additional online presence and product offerings while scheduling and planning future partnerships and acquisitions as it relates to the specific needs of KAP and its separate, online and offline business units and courses. II. ScheinDesign Interactive™ Overview: ScheinDesign Interactive™ (SDI™) is a multi-disciplinary Interactive Agency, which launched its business in 1999. With its humble beginnings in print and multimedia, SDI™ expanded its knowledge and success into the Interactive World under the tutelage and working relationship with such Industry Leaders as Apple, AOL, Time Warner and Kaplan. SDI™ is one of the first online Agencies to bridge the gap between the creative vision and business development. Today, SDI™ continues to work with its clients to reinvent their global brand while repackaging their products and services. With a team of extraordinary talent and a network of industry visionaries, SDI™ is developing new and exciting opportunities for an interactive, global economy. The NEW Enterprise of today is working with Agencies like SDI™ that brings with them the creative wisdom and business savvy that is necessary to take today’s PATH TO SUCCESS that speaks to the 21st Century interactive, social media customer and consumer. With a passion for excellence, SDI™ is positioned to bring its clients winning results and Return On Investment 2. II. SDI™ Proposal: Goals and Objectives for Kaplan, Inc. and Business Units (Version 1.0) The following proposal, Version 1.0, includes website analysis and suggested development, online marketing, strategic partnerships, acquisitions and competitive/analytical due diligence. As a follow-up to the conversation and email between Phillip Schein of SDI™ and Andy Rosen, CEO & Chairman Kaplan, Inc., towards the end of Q4 of 2009, this proposal will identify discussed and additional business and Internet-based ideas and solutions to continue the successful extension of the KAP brand. As requested by Andy S. Rosen, I’ve included Melissa Mack, SVP, Marketing, Kaplan, Inc. and John Polstein, CEO, Kaplan Test Prep in the emailing of this proposal. Since there is overlap in the following proposed new and existing business opportunities along with attention to functional and information-based design, programming and brand extension/awareness, it seemed most appropriate to email this proposal to ALL. I look forward to further discussion on how these opportunities as they align with KAP’s short and long-term goals for 2010 and beyond. SDI™ – Kaplan, Inc. 1 CONFIDENTIAL ScheinDesign Interactive™ – Kaplan Proposal January 2010 1. KapTV.com (or iKapTV.com, KapTV.tv, KaplanTV.com, iKapTV.tv) – It’s time to take the mission and message from home study kits, books, authors, software, videos, JV partnerships and acquisitions worldwide and package the content for a Cable TV Syndicated Program. With assets, top teachers, presenters, authors, students, Doctors, celebrity-like professionals in their respective fields, etc. (diverse, smart, funny and brand building for the course-specific customer and demographics), KAP is ready for the next BIG move! Online to CABLE NETWORK! It’s time to extend the KAP Brand beyond courseware and online certification. It’s time to launch KapTV; syndicated globally and represented online: KAP-TPA, KAP-KU and KAP-KU are clearly the best and freshest content to build and create a “treatment” and “syndicated cable program”. a. KAP-TPA would be an untapped and natural continuation of KAP-TPA’s SAT, GMAT, GRE, USMLE, TOEFL, MCAT, etc. existing classroom, online and community audience of Mother’s, Teenagers, College Students and the International Community looking to change their lives. TV’s and mobile devices (cell phones) are in more countries and homes than a computer. Even the most third-world, underdeveloped countries, has a TV with Cable and/or a mobile device. Europe, Asia, Latin America, South America and Africa are more Technology advanced than the US when it come to Telecommunications and a “common network” for both TV and mobile devices. b. As for KAP’s largest piece of the pie, KAP-KU owns 50% or more of today’s growing revenue. I believe this is because KAP was willing to take chances and throw money at an opportunity that had (and has) the potential on paper to bring KAP unbelievable reach and rewards. If the plan failed, the LOSS in brand equity would almost $0 dollars as it affected the rest of the KAP businesses, but the REWARD could be huge and ongoing! This was proven in KAP-KU’s number and percent of the $5 billion dollar Enterprise. This why KAP-TV, even after the numbers are crunched, will be the best “target case”. c. Production Options: Harpo Communications, Discovery Communications and/or Sony Pictures Television to develop a syndicated daytime and evening programming from existing KAP Content, but reformatted into several treatments from a Q&A Show like Dr. Oz (KapTV – A Higher Education), with guest appearances based on that days show: i. The idea or concept ii. The treatment iii. Set up the meeting iv. Choose the right network and production company v. Organize the content vi. A professional like “Jeff Arnold” or a “Lawyer” to pitch the meeting and treatment d. Discovery Communications is a perfect partner for KAP. They have “Discovery Health”, “Science Channel”, “Discovery Kids”, “HowStuffWorks”, and “Discovery Education”. It’s a natural addition to add KAPTV (branding a NEW name is needed) to the Network to increase their product offering to their viewers. Adding College, Professional, Online Degrees, K-12 and Community to their channels would be GREAT! e. Jeff Arnold and I worked together back in the early days of “HowStuffWorks”. Jeff’s history really got his start with creating WebMD. Today, he works for Discovery as Chief of Global Digital Strategy and HowStuffWorks.com Chairman Emeritus. Recently with Discovery Communications he launched “ShareCare”, an online experience leveraging the reach and tools of social networking, through both corporate and professional partnerships like Dr. Oz, publishing companies, world renowned Hospitals and much more, bringing online healthcare into the 21st Century Online Communities. f. Example of KAPTV’s, Edutainment Educators, Professionals and Industry-specific Celebrities are endless and below I have identified 2 that represent the “real world” success stories and celebrities in their own right that represent the KAP-KU customer and TV educator/entertainer: i. Nutrition BS Certification: Heidi Skolnik – (http://www.nutritionconditioning.net/) a 30 year friend who has presented on Good Morning America, Early Show, Food Network, 20/20, etc. and has been published in several trade and National magazine as a columnist which includes First for Women, Woman's Day, Ladies Home Journal, Good housekeeping, Parents, Real Simple, SELF, InStyle, Natural Health, Teen Vogue, Glamour, Men's Health, American Baby, Parenting, Oxygen and many more. She’s also the author of the “Reverse Diet”. 1. Credentials: Heidi also has expertise within the corporate wellness arena, working with top companies such as Morgan Stanley, Becton-Dickinson, Johnson and Johnson, Colgate- Palmolive and Merrill-Lynch. 2. Heidi holds two Masters Degrees and is a New York State Certified Nutritionist. She is a Fellow with the American College of Sports Medicine (ACSM) and is ACSM certified as a Health Fitness Instructor. Heidi is the president of Nutrition Conditioning, Inc., a nutrition consulting practice, serving the greater New York Metropolitan area. SDI™ – Kaplan, Inc. 2 CONFIDENTIAL ScheinDesign Interactive™ – Kaplan Proposal January 2010 3. Owner of Nutrition Conditioning, Inc., a nutrition consulting practice that helps individuals, teams and organizations achieve health and performance goals, serving the greater New York Metropolitan area. 4. Senior Nutritionist at The Women's Sports Medicine Center at the Hospital for Special Surgery, a nationally recognized integrated medical practice and health resource for active women of all ages and abilities and the first of its kind in the United States. 5. Sports Nutrition Consultant to the New York Giants football team, New York Knicks basketball team, the School of American Ballet and The Juilliard School. ii. Professor Marshall Brain: Fonder and creator of HowStuffWorks (I met Marshall when I was involved in packaging and identifying financing for HowStuffWorks). HowStuffWorks is a commercial edutainment website that was founded by Marshall Brain with the goal of giving its target audience an insight into the way in which many things work.