2024 Board Orientation Manual

Suzanne Battista 12/31/2025 *

Geoff Gonella Ex - Officio

Matt Hinch 12/31/2027

Chris Hodgson 12/31/202 7

Delora Ifekauche 12/31/202 7

Camp Kaufman 12/31/202 4*

Matt Paul 12/31/2027

Louie Perry 12/31/2026

Stacy Rich 12/31/2027

Jim Richards 12/31/2024

Hunt Shipman 12/31/2025

Mike Smith 12/31/2025

Amy Souders 12/31/2026

Susan Sweat 12/31/2026

Eric Tober 12/31/2025

Nial Patel 12/31/2027

EX ECUTIVE COMMITTEE & SENIOR LEADERSHIP TEAM AS OF MARCH 1, 2023

SENIOR LEADERSHIP TEAM

EXECUTIVE COMMITTEE

Suzanne Battista

Geoff Gonella

Camp Kaufman

Tony Essalih

Will Smith

Geoff Gonella Chief Executive Officer

Camp Kaufman President

Suzanne Battista Chief Operating Officer

F EDERAL & STATE LEADERSHIP TEAMS AS OF MARCH 1, 2023

FEDERAL LEADERSHIP TEAM

ST AT E LEADERSHIP TEAM

Max de Vreeze

Geoff Gonella

Chris Hodgson

Madeleine Diakiwski

Dao Nguyen

Max de Vreeze

David Adelman

Camp Kaufman

Gabrielle Kees

Maddy Williams

Chris Carpenter

BOARD OF DIRECTORS

ROLES & RESPONSIBILITIES OVERVIEW

Board of Directors Functions & Composition : Cornerstone Government Affairs, Inc. (Cornerstone)’s Board of Directors (Board) functions as an advisory body to the Senior Leadership Team (LT) with broad powers to act as a check and conduct oversight when acting as a unified majority. The Board focuses on long-term, broad-view strategic considerations affecting the business, while serving as a resource to colleagues on short-term goals and objectives.

The goal for the composition of the Board is to reflect the totality and the input of the firm’s employee-ownership broadly and appropriately across a variety of dimensions, including, but not limited to business units, gender and racial balance, role, capabilities and skillsets, experience, and other metrics, while placing a critical and fundamental emphasis on partisan balance.

Board of Directors Responsibilities :

As the highest leadership body of the firm and to satisfy its fiduciary duties, the Board of Directors is generally responsible for assisting with the following:

 Determining and implementing the mission, vision, and values of the firm

 Evaluating the performance of the Chief Executive Officer (CEO)

 Strategic and organizational planning

 Ensuring strong fiduciary oversight and financial management

 Monitoring the firm’s business units and overall services

 Enhancing the firm’s brand and reputation

 Assessing its own performance as the governing body of the firm

Each individual board member is expected to:

 Know the firm’s mission, vision, values, policies, programs, and needs;

 Faithfully review and understand the organization’s financial statements;

 Serve as active advocates and ambassadors for the organization and fully engage in identifying and securing the financial resources and partnerships necessary for the organization to grow and expand;

 Keep up with issues and developments that have an impact on the company;

 Leverage connections, networks, and resources to help achieve the organization’s mission;

 Help identify personal connections that can add value to the firm;

 Prepare for, attend, and conscientiously participate in board meetings;

 Assure that the company complies with all professional standards and legal requirements; and,

 Understand the financial affairs of the company and ensuring that fiduciary duties are met. These fiduciary duties include:

1. A duty of care

2. A duty of loyalty

3. A duty to act within the law

1. Duty of Care: A duty of care ensures that each board member acts with good business judgment and care when suggesting, making, or voting on improvements. This includes due diligence, using expertise to balance the pros and cons of a potential change and acting as a “reasonable person” would in their situation.

2. Duty of Loyalty: The duty of loyalty is two-fold. First, it’s about acting in the best interests of the company itself, not for them as the board member. Beyond that, it’s a duty of loyalty to the company itself which means exercising confidentiality, not advising competitor companies, and disclosing potential conflicts of interest.

3. Duty to Act Within the Law: The duty of acting within the law requires a very strong understanding of any laws, regulations and by-laws that apply to the business and its activities. This duty is also known as corporate or board governance.

Criteria for New Board Member Selection :

Consistent with our business model and philosophy, consideration of Board members is not done on a formulaic basis or exclusively by financial metrics. Rather, evaluation of potential Board members is based on a broad and diverse set of leadership-driven criteria that reflects where we are as a business today and where we are hoping to go in the future. It is also based on a desire for the Board to better reflect our entire organization.

Criteria includes, but is not limited to:

 Demonstrated commitment to the business model and approach

 Demonstrated understanding, appreciation and promotion of the firm’s mission, vision, and values

 Consistent and significant contributions to the business

 Creative thinking and problem solving

 Demonstrated leadership qualities

 Positive influence on the culture and environment

 Peer recommendations and support

 Diversity

In consideration of these qualities, we work hard to also factor in the need for diversity. Diversity based not only on elements such as race and gender but also of thought, perspective, background, relationships, experience and expertise.

Summary of Relevant Board of Directors Bylaw Sections :

Recognizing that Cornerstone’s Bylaws are structured in accordance with the corporation statute of the District of Columbia, it is important to understand what the language within the Bylaws related to the Board of Directors means relevant to the Board’s roles and responsibilities. While a copy of the Bylaws is given to each Board member, below is a general summary of the language included in Section 3 to help interpret the meaning of this language.

Section 3.01 : General Powers

This section outlines how Cornerstone’s business affairs are to be managed under the direction of the Board of Directors.

S ection 3.02 Number and Term of Office

This section outlines that the Board of Directors shall be made up of 15 total Directors and at any time, the number may change, so long as it is no less than three and no more than the maximum number permitted by the Business Corporation Act at that time. It also notates that the “Shareholder”, which is Cornerstone Government Affairs, Inc. Employee Stock Ownership Trust, must elect Directors each year at the annual meeting for each Director whose term is expiring, and each Director will serve four one-year terms or until his or her successor is elected and qualified – note: internally, we communicate this as one four-year term, but according to the D.C. Corporation Statue, Directors can only serve single year terms, so we have captured it as four one-year terms for this reason. Given the Trustee serves as the representative for the Cornerstone ESOT, he or she must approve the election of the new Directors annually. Since an annual meeting is rarely held, a written consent acknowledging the approval of the slate of Directors by the Trustee will suffice.

S ection 3.03 Term Limits

As also outlined in the above section, this section indicates that any Director may serve up to four one-year terms and may be reelected to the Board after stepping off the Board for at least one year following the conclusion of the fourth consecutive one-year term. As notated above, internally, we communicate this as one four-year term, but according to the D.C. Corporation Statue, Directors can only serve single year terms, so we have captured it as four one-year terms for this reason.

S ection 3.04 Filling Vacancies

This section outlines that if a current Board member steps off the Board, the remaining Directors,

by majority vote, may elect a new Board member to fill the vacant Board seat for the unexpired portion of the remaining term. The newly elected Director will then hold office until the Board seat term expires and/or his or her successor is elected, or until resigning or being removed before the end of the term by an affirmative vote of the Trustee.

Similarly, if the Board chooses to increase the number of Board seats, the Directors for these newly added seats will be elected by the existing Board of Directors, and will hold office until the next annual meeting (end of year) and thereafter until his, her, or their successors are elected.

Important to note here that even though terms are set, any Director may be removed from office with or without cause by the affirmative vote of the Trustee

S ection 3.05 Meeting Location

This section simply states that the Board of Directors can determine where all business is conducted, whether within or outside of the District of Columbia, so long as the entire Board agrees.

S ection 3.06 Meeting Electronically

This section indicates that the Board of Directors meetings can be taken remotely via conference call or video conference call or in-person and if they are taken not in-person, so long as the Director can be heard and their presence is considered the same whether in-person or virtual.

S ection 3.07 Regular Meetings

This section does not necessarily apply given the need to often schedule or reschedule Board meetings throughout the year, but basically indicates that all Board meetings can be scheduled and take place so long as the CEO (serving as the Secretary) notifies the Board at least three days before the meeting is held. It also indicates that if there is an annual Shareholders meeting (which there typically is not), the annual meeting or in our case, the meeting during which the new Board members are elected, must be held immediately after the annual Shareholder meeting (if any) It also indicates that the Board may transact any business at a regularly scheduled meeting.

S ection 3.08 Special Meetings

This section outlines that the Chief Executive Officer may call special meetings outside the regular meetings at any time he or she elects or when a majority of the Board of Directors provides a written request for a meeting to be held. The CEO (serving as the Secretary) must give notice of each special meeting of the Board of Directors in writing at least three days before the meeting. Any Director may waive receipt of notice. These special meetings can be held to discuss any type of business.

Section 3.09 Quorum

This section defines a “quorum” being 51% of all Directors, if all are present If not all Directors are present, a majority of those present may adjourn the meeting and act as a quorum.

This section then goes on to highlight what actions may only be taken by an affirmative vote of at least 70% of the entire Board of Directors, which are as follows (in summary):

A. Ceasing the firm’s business before the firm’s actual termination or if the firm were unable to act on its own as a business;

B. Materially altering the firm’s business or changing any approved business plan that is in place;

C. Filing or consenting to file a petition for or against the firm under any federal or state bankruptcy, insolvency, or reorganization act;

D. Merger or consolidation of the firm with another organization or the change/reorganization of the firm into any other legal form in which Cornerstone Government Affairs, Inc. is not the entity that will remain in existence or the Shareholders no longer control Cornerstone;

E. Registering any interest in this Company for an offering under any federal or state securities law;

F.Selling any firm owned property in liquidation or dissolving and liquidating the firm;

G. Changing Cornerstone’s legal name;

H. Borrowing money whether on a secured or unsecured basis, that would result in an outstanding loan exceeding $5,000,000.00;

I. Incurring capital expenditures, such as property, equipment purchases, furniture, etc., in excess of $2,000,000.00

S ection 3.10 Meetings of Directors

This section outlines that outside of any regular or special scheduled Board meetings, if all the Directors meet, regardless of location, and consent to hold a meeting, that meeting is considered to be a formal meeting where corporate action can be taken.

S ection 3.11 Action without Meeting by Written Consents

This section outlines that a meeting does not have to be called to move forward with a vote or action, so long as written consents setting forth the action taken are signed by all the Directors. The written consents can serve the same purpose as a unanimous vote of the Directors at a meeting. The CEO (serving as the Secretary) must file the consents with the Board meeting minutes though to declare that the action was officially taken.

S ection 3.12 Compensation of Directors

This section outlines that the Board of Directors is to determine if any compensation or salary be paid for attendance at each regular or special meeting of the Board in which a Director actually

participates and reimbursement of the expenses incurred in attending any regular or special meeting of the Board. However, no special compensation is given to Board members for their role on the Board, and ultimately, this section is non-relevant, but required to have in our bylaws.

Section 3.14 Conflicts of Interest

This section defines various scenarios in which a conflict of interest may come into play for those that serve on the Board of Directors.

a)Conflict-of-interest Transaction: The definition of a conflict-of-interest transaction is a transaction with the firm in which a Director has a material direct or indirect interest. A conflict- of-interest transaction is not voidable by the firm solely because of the Director’s interest in the transaction if any one of the following is true

1. Material Facts Disclosed to Board of Directors: The material facts of the transaction and the Director’s interest were disclosed or known to the Board of Directors and the Directors authorized, approved, or ratified the transaction;

2. Material Facts Disclosed to Shareholder: The material facts of the transaction and the Director’s interest were disclosed or known to the entire firm and ultimately the Trustee and they authorized, approved, or ratified the transaction; or

3. Fair to Corporation: The transaction was fair to the firm, defined by the courts.

b) Indirect Interest: This section defines that a Director of the Corporation has an indirect interest in a transaction if:

1. Material Financial Interest in Another Party to the Transaction: He or she has a material financial interest or is a general partner to the other party involved in the transaction; or

2. Officer in Another Party to the Transaction: He or she is a director, officer, or trustee or holds a position with the other party involved in the transaction

c) Approval of Conflict-of-interest Transaction

If a conflict-of-interest transaction is under consideration and the material facts have been disclosed to the Board, it will be considered approved if it receives the affirmative vote of a majority of the Board of Directors that do not have a material interest in the transaction A single Director cannot approve the transaction though. If a majority of the Directors who have no direct or indirect interest in the transaction vote to approve the transaction, a quorum is present for taking action under this Section, even if it is not equivalent to the 51% threshold. The Director who does have a direct interest in the transaction being present or voting does not affect the outcome.

AMENDED AND RESTATED Bylaws of Cornerstone Government Affairs, Inc.

A District of Columbia Corporation

Article One Office

The Corporation’s principal office will be located in the District of Columbia. The Registered Office of the Corporation required by the Business Organizations Act of District of Columbia to be maintained in the District of Columbia may be, but need not be, identical with the principal office in the District of Columbia. The Board of Directors may change the address of either office from time to time.

Article Two Shareholders

Section 2.01 Special Meetings

Special meetings of the Shareholders may be called at any time for any purpose by the Chief Executive Officer or by a majority of the Board of Directors. The special meeting will be called by the Chief Executive Officer, the Secretary, or any Director of the Corporation upon the written request of the holders of 51% of all the shares outstanding and entitled to vote on the business to be transacted at the meeting. The written request must state the meeting’s purpose. The Shareholders must restrict the business transacted at all special meetings of Shareholders to the purpose stated in the notice of the meeting.

Section 2.02 Meeting Location

The Shareholders will hold all meetings at the Corporation’s principal office or elsewhere in the United States as designated by the Board of Directors and specified in the notice of the meeting.

Unless otherwise provided in the Articles of Incorporation, the Board of Directors may adopt procedures authorizing any special meeting of Shareholders to be held solely by means of remote communication rather than in person at a physical location. Subject to any procedures the Board of Directors may adopt, Shareholders and any proxyholders not physically present at a meeting of Shareholders may participate in and vote at the meeting by conference telephone or other similar electronic communications equipment and will be deemed present in person at the meeting for all purposes of these Bylaws, whether the meeting is held at a designated place or solely by means of remote communication. Any procedures promulgated by the Board of Directors must require that all the Shareholders and any proxyholders participating in the meeting can hear and speak to each other at the same time. If any Shareholder or proxyholder votes or takes other action at the meeting by means of remote communication, the Corporation must maintain a record of the vote or other action taken.

Section 2.03 Meeting Notice

The Secretary will notify each Shareholder at least 10 days but no more than 30 days before the meeting. The notice must state the place, day, and hour at which the meeting will be held and must state briefly the meeting’s purpose. If any Shareholder meeting is adjourned to a different date, time, or place, the Secretary need not give notice of the new date, time, or place if this information is announced at the meeting before adjourning. But if a new record date for the adjourned meeting is fixed, the Secretary must give notice of the adjourned meeting to Shareholders as of the new record date.

Section 2.04 Shareholder Meetings

If all the Shareholders entitled to vote meet at any place, within or outside the District of Columbia, and consent to the holding of a meeting, the meeting will be valid without call or notice, and the Shareholders may take any action at the meeting.

Section 2.05 Action without Meeting by Written Consent

Any action required or permitted to be taken at a Shareholder meeting may be taken without a meeting when all the Shareholders entitled to vote on the subject matter sign a written consent to the action. These signed consents will have the same force and effect as the unanimous vote of all the Shareholders at a meeting duly held. The Secretary must file these consents with the minutes of the Shareholder meetings.

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Section 2.06 Quorum

The presence in person or by proxy of the holders of record of 51% of the shares of the capital stock of the Corporation issued and outstanding and entitled to vote will constitute a quorum at all meetings of the Shareholders, except as otherwise specifically provided by law, by the Articles of Incorporation, or by these Bylaws, or a resolution of the Board of Directors requiring satisfaction of a greater or lesser quorum requirement. If less than a quorum attends a meeting, the meeting may be adjourned from time to time until a quorum is present. A majority vote of the Shareholders present or represented may adjourn the meeting without any notice other than by announcement at the meeting. At any adjourned meeting at which a quorum is later present, any business may be transacted that might have been transacted if the meeting had been held as originally called.

Section 2.07 Conduct of Meetings

The Chief Executive Officer of the Corporation will preside over Shareholder meetings or, if she or he is not present, by a chairperson elected at the meeting. The Secretary of the Corporation, or if she or he is not present, any Assistant Secretary will act as secretary of the meeting. In the absence of the Secretary and any Assistant Secretary, the presiding officer may appoint a person to act as secretary of the meeting.

Section 2.08 Voting

At all Shareholder meetings, every Shareholder entitled to vote will have one vote for each share of stock standing in his or her name on the books of the Corporation on the date the Shareholders entitled to vote at the meeting are determined. The vote may be made either in person or by proxy. The proxy must be appointed by a written instrument signed by the Shareholder or the Shareholder’s duly authorized attorney in fact, bearing a date not more than three months before the meeting, unless the instrument provides for a longer period, but in no event more than 11 months before the meeting. The proxy must be dated, but need not be sealed, witnessed, or acknowledged. All elections must be had and all questions must be decided by a majority of the votes cast at a duly organized meeting, except as otherwise provided by law, by the Articles of Incorporation, or by these Bylaws.

Section 2.09 Records Inspection

A Shareholder entitled to inspect the records of the Corporation under any statutory or other legal right will have access to the records on demand only during the usual and customary hours of business and in a manner that will not unduly interfere with the Corporation’s regular conduct of the business. A Shareholder may delegate this inspection right to a certified or public accountant or a licensed attorney at law on the condition that, at the Corporation’s request, an accurate copy of every report made by the accountant or attorney based on the inspection be provided to the Corporation when the report is completed. No Shareholder may use, permit to be used, or acquiesce to others’ use of any information the Shareholder, accountant, or attorney obtains to the competitive detriment of the Corporation.

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Article Three

Board of Directors

Section 3.01 General Powers

The property and business of the Corporation will be managed under the direction of the Board of Directors of the Corporation.

Section 3.02 Number and Term of Office

The number of Directors to constitute the Board of Directors of the Corporation will be fifteen

The Board of Directors may at any time change the number of Directors to constitute the Board of Directors (to any number not less than three and not more than any maximum number permitted by the Business Corporation Act) by a resolution of a majority of the entire Board of Directors. The Shareholders must elect Directors each year at the annual meeting of Shareholders for which a Director’s term is expiring, and each Director will serve for a four-year term or until his or her successor is elected and qualified. The initial Directors will serve for a term as indicated in the initial Shareholder minutes.

Section 3.03 Term Limits

Any individual may serve as a Director for a single four-year term; provided however, that an individual may serve additional terms after a year of being off the board following each four year term he or she may serve.

Section 3.04 Filling Vacancies

If a vacancy in the Board of Directors arises for any reason, the remaining Directors, by majority vote, may elect a successor to hold office for the unexpired portion of the remaining term. The newly elected Director will hold office until the election of his or her successor, or until resigning or being removed before the end of the term by an affirmative vote of a majority of the Shareholders.

Similarly, if the number of Directors is increased as provided in these Bylaws, the additional Directors will be elected by the Board of Directors already in office, and will hold office until the next annual meeting of Shareholders and thereafter until his, her, or their successors are elected.

Any Director may be removed from office with or without cause by the affirmative vote of the holders of the majority of the stock issued, outstanding, and entitled to vote at any special meeting of Shareholders regularly called for the purpose.

Section 3.05 Meeting Location

The Board of Directors may hold their meetings, have one or more offices, and keep the books of the Corporation within or outside the District of Columbia, at any place or places as they may from time to time determine by resolution or by written consent of all the Directors.

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Section 3.06 Meeting Electronically

Members of the Board of Directors may participate in a meeting by means of conference telephone or other similar electronic communications equipment if all of the persons participating in the meeting can hear and speak to each other at the same time. Participating in a meeting in this manner is the same as presence in person at a meeting for all purposes of these Bylaws.

Section 3.07 Regular Meetings

The Board of Directors may hold regular meetings without notice at those times and places as the Board determines by corporate resolution only if the Secretary has mailed notice of every Board resolution fixing or changing the time or place for holding the regular meetings to each Director at least three days before the first meeting held under the resolution. But the annual meeting of the Board of Directors must be held immediately after the annual Shareholder meeting at which a Board of Directors is elected. The Board may transact any business at a regular meeting.

Section 3.08 Special Meetings

Special meetings of the Board of Directors will be held whenever called by direction of the Chief Executive Officer. Special meetings must be called by the Chief Executive Officer or the Secretary upon written request of a majority of the Board of Directors. The Secretary must give notice of each special meeting of the Board of Directors by mailing the notice to each Director at least three days before the meeting. Any Director may waive receipt of notice. Unless otherwise indicated in the notice, the Board may transact any business at a special meeting.

Section 3.09 Quorum

A quorum for the transaction of business at all meetings of the Board of Directors comprises 51% of all the Directors. But if at any meeting less than a quorum is present, a majority of those present may adjourn the meeting from time to time, and the act of a majority of the Directors present at any meeting at which there is a quorum will be the act of the Board of Directors, except as may be otherwise specifically provided by law, by the Articles of Incorporation, or by these Bylaws.

Notwithstanding anything contained herein to the contrary, the following actions may only be taken by an affirmative vote of at least 70% of the entire Board of Directors:

A. ceasing the Company’s business before the Company’s actual termination or acting in any way that would make it impossible to carry on the Company’s business;

B. materially altering the Company’s business or deviating from any approved business plan of the Company;

C. filing or consenting to file a petition for or against the Company under any federal or state bankruptcy, insolvency, or reorganization act;

D. merge or consolidate the Company with or into any other entity or change or reorganize the Company into any other legal form in which the Company is not the surviving entity or the Shareholders otherwise control the surviving entity;

E. registering any interest in this Company for an offering under any federal or state

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securities law;

F. selling substantially all of the property in liquidation or dissolving and liquidating the Company;

G. change the name of the Company;

H. borrow money on behalf of the Company, whether on a secured or unsecured basis, which would cause the then outstanding indebtedness of the Company to exceed Five Million Dollars ($5,000,000.00);

I. incur capital expenditures in excess of Two Million Dollars ($2,000,000.00) in any single transaction or any series of related transactions;

Section 3.10 Meetings of Directors

If all the Directors entitled to vote meet at any place, within or without the State, and consent to hold a meeting, that meeting will be valid without call or notice, and the Board may take any corporate action at the meeting.

Section 3.11 Action without Meeting by Written Consents

Any action required or permitted to be taken at a meeting of the Directors may be taken without a meeting when written consents setting forth the action taken are signed by all the Directors entitled to vote with respect to the subject matter. These consents will have the same force and effect as the unanimous vote of the Directors at a meeting duly held. The Secretary must file the consents with the minutes of the meetings of the Directors.

Section 3.12 Compensation of Directors

The Board of Directors will fix by resolution the compensation or salary paid for attendance at each regular or special meeting of the Board in which a Director actually participates and reimbursement of the expenses incurred in attending any regular or special meeting of the Board. The reimbursement and compensation will be payable whether or not a meeting is adjourned because of the absence of a quorum. No provision of these Bylaws precludes any Director from serving the Corporation in any other capacity and receiving compensation for that service.

Section 3.12 Committees

The Corporation shall appoint individuals to serve on an ESOP Committee (which is a committee established pursuant to the Cornerstone Government Affairs, Inc. Employee Stock Ownership Plan [“ESOP”] and an Executive Committee and are not committees of the Board). In addition, the Board may appoint any other committees as it may deem appropriate.

(a)

General Provisions

(1)

Committee Chairperson

The Board shall designate a chairperson of each Committee, except for the ESOP Committee. The chairperson of the ESOP Committee shall be designate by the ESOP Committee. The chairperson will chair all meetings

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of the Committee and set the agenda for meetings.

(2) Meetings

A Committee shall meet as often as it determines but no less than once annually, either in person or telephonically, and at such times and places as the Committee shall determine.

(3) Quorum

Except as may be otherwise specifically provided by the Articles of Incorporation, a majority of the members of a Committee shall constitute a quorum for the transaction of business. A quorum, once attained at a meeting, continues until adjournment despite voluntary withdrawal of enough members of a Committee to leave less than a quorum. The act of the majority of the members of a Committee present at a meeting at which a quorum is present will be the act of such Committee.

(b) ESOP Committee

The ESOP Committee will be responsible for overseeing the ESOP and serving as a liaison between the ESOP and its participants. Specifically, the ESOP Committee is empowered to assist the Trustee and Plan Administrator to satisfy and operate the ESOP in accordance with the terms of the Guidelines for the Cornerstone Government Affairs, Inc. ESOP Committee. The ESOP Committee members are appointed by the Corporation.

(c) Executive Committee

The Board of Directors shall create an Executive Committee to assist the Chief Executive Officer, the President, and the Chief Operating Officer in managing and leading the firm in the execution of the various business strategies and operations of the Corporation.

The Executive Committee shall be comprised of five members, the Chief Executive Officer, the President, the Chief Operating Officer and two other members at large of the firm chosen and appointed by the Board of Directors.

The Executive Committee will be chaired by the Chief Executive Officer and the Committee shall be responsible for additional responsibilities as assigned by the Chief Executive Officer from time to time.

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Section 3.14 Conflicts of Interest

(a) Conflict-of-interest Transaction

A conflict-of-interest transaction is a transaction with the Corporation in which a Director of the Corporation has a material direct or indirect interest. A conflict- ofinterest transaction is not voidable by the Corporation solely because of the Director’s interest in the transaction if any one of the following is true:

(1) Material Facts Disclosed to Board of Directors

The material facts of the transaction and the Director’s interest were disclosed or known to the Board of Directors or a committee of the Board of Directors and the Board of Directors or committee authorized, approved, or ratified the transaction;

(2) Material Facts Disclosed to Shareholders

The material facts of the transaction and the Director’s interest were disclosed or known to the Shareholders entitled to vote and they authorized, approved, or ratified the transaction; or

(3) Fair to Corporation

The transaction was fair to the Corporation.

(b) Indirect Interest

For purposes of this Section, and without limiting the interests that may create conflict-of-interest transactions, a Director of the Corporation has an indirect interest in a transaction if:

(1) Material Financial Interest in Another Party to the Transaction

Another entity in which he or she has a material financial interest or in which he or she is a general partner is a party to the transaction; or

(2) Officer in Another Party to the Transaction

Another entity of which he or she is a director, officer, or trustee or in which he or she holds another position is a party to the transaction and the transaction is or should be considered by the Board of Directors of the Corporation.

(c) Approval of Conflict-of-interest Transaction

For purposes of Subsection (a)(1) of this Section, a conflict-of-interest transaction

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A District of Columbia Corporation

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will be approved if it receives the affirmative vote of a majority of the Board of Directors (or of the committee) who have no direct or indirect interest in the transaction, but a transaction may not be approved under this Section by a single Director. If a majority of the Directors who have no direct or indirect interest in the transaction vote to approve the transaction, a quorum is present for taking action under this Section. The presence of, or a vote cast by, a Director with a direct or indirect interest in the transaction does not affect the validity of any action taken under Subsection (a)(1) of this Section if the transaction is otherwise approved under that Subsection.

For purposes of Subsection (a)(2) of this Section, a conflict-of-interest transaction will be approved if it receives the vote of a majority of the shares entitled to be counted under this Subsection. Shares owned by or voted under the control of a Director who has a direct or indirect interest in the transaction and shares owned by or voted under the control of an entity described in Subsection (b)(2) of this Section may not be counted in a vote of Shareholders to determine whether to approve a conflict-of-interest transaction under Subsection (a)(2) of this Section. But the vote of those shares is counted in determining whether the transaction is approved under other Sections of these Bylaws. A majority of the shares, whether or not present, that are entitled to be counted in a vote on the transaction under this Subsection constitutes a quorum for taking action under this Section.

Article Four Officers

Section 4.01 Election, Tenure, and Compensation

The officers of the Corporation will be a Chief Executive Officer, a President, a Chief Operating Officer, a Secretary, and a Treasurer, and one or more assistants to these officers as the Board of Directors from time to time may consider necessary for the Corporation’s proper conduct of the business. The officers will be elected annually by the Board of Directors at its first meeting following the annual meeting of the Shareholders except where a longer term is specifically provided in an employment contract duly authorized and approved by the Board of Directors. In any employment contract, the Board of Directors may employ an officer for a term in excess of one year and for as long a term as the Board determines in accordance with the law. Any two or more of the above offices, except that of Chief Executive Officer, may be held by the same person, but no officer may sign, acknowledge, or verify any instrument in more than one capacity if the law or these Bylaws require the instrument to be executed, acknowledged, or verified by two or more officers. The Board of Directors will fix the compensation or salary paid to all officers of the Corporation by resolution.

If any office other than an office required by law is not filled by the Board of Directors or later

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becomes vacant, the office and all references in these Bylaws are inoperative until the Board of Directors fills the office in accordance with these Bylaws.

Except where otherwise specifically provided in a contract duly authorized by the Board of Directors, all officers and agents of the Corporation are subject to removal at any time by the majority vote of the whole Board of Directors, and all officers, agents, and employees hold office at the discretion of the Board of Directors or of the officers appointing them.

Section 4.02 Powers and Duties of the Chief Executive Officer

The Chief Executive Officer of the Corporation has general charge and control of all its business affairs and properties. He or she will preside at all Shareholder meetings.

The Chief Executive Officer provides leadership for all aspects of the company’s operations with an emphasis on long-term goals, growth, profit, and return on investment.

The Chief Executive Officer may sign and execute all authorized bonds, contracts, or other obligations in the Corporation’s name. He or she will have the general powers and duties of supervision and management usually vested in the office of chief executive officer of a corporation.

The Chief Executive Officer will be an ex officio member of all the standing committees. He or she shall perform all other duties as the Board of Directors may assign from time to time.

Section 4.03 President

The President is the second in command to the Chief Executive Officer and works closely with the Chief Executive Officer in determining business strategy and execution, making recommendations to the Board of Directors and other duties and responsibilities assigned to the President by the Chief Executive Officer.

The President also has direct management leadership responsibilities for the State Government Relations and the Public Affairs business units. In this capacity, the President is responsible for growing these two business units, assigning and adding personnel and ensuring overall performance of the various teams.

Section 4.04 Chief Operating Officer

The Chief Operating Officer directly reports to the Chief Executive Officer and is responsible for overseeing company operations, project timelines, business developments, and employee productivity while building a highly inclusive culture to ensure team members thrive.

Additionally, the Chief Operating Officer works with the Chief Executive Officer and the President to set and drive the organizational vision and mission, corporate strategy, and hiring needs as well as measuring and analyzing current revenue streams, offerings, and relationships to optimize business growth and revenue strategy.

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The Chief Operating Officer is responsible for developing actionable business strategies, objectives, and plans that ensure alignment with short- and long-term objectives developed in tandem with the Chief Executive Officer and the President as well as strategically managing, organizing, and coordinating employees from different departments and locations to ensure efficiency and implementing financial procedures and organizational policies and programs to drive the company’s operating capabilities.

Section 4.05 Secretary

The Secretary will give or cause to be given notice of all meetings of Shareholders and Directors and all other notices required by law or by these Bylaws. In the Secretary’s absence, refusal, or neglect, the Chief Executive Officer may direct any person to give this notice. The Secretary must record all the Shareholder and Board of Director meeting proceedings in books provided for that purpose, and shall perform all other duties assigned by the Directors or the Chief Executive Officer. The Secretary will have charge of the transfer book for shares of the Corporation. The Secretary will have custody of the corporate seal, if any; will affix the seal to all instruments requiring it when authorized by the Board of Directors or the Chief Executive Officer; and will attest the fixing of the seal.

In general, the Secretary shall perform all the duties generally incident to the office of Secretary, subject to the control of the Board of Directors and the Chief Executive Officer.

Section 4.06 Treasurer

The Treasurer will have custody of all the funds and securities of the Corporation, and he or she will keep full and accurate account of receipts and disbursements in books belonging to the Corporation. The Treasurer will deposit all moneys and other valuables in the name and to the credit of the Corporation in the depository or depositories designated by the Board of Directors.

The Treasurer will disburse the funds of the Corporation as ordered by the Board of Directors, taking proper vouchers for all disbursements. He or she will provide to the Chief Executive Officer and the Board of Directors, with or without specific request, an account of all his or her transactions as Treasurer and of the financial condition of the Corporation.

The Treasurer will give the Corporation a bond, if required by the Board of Directors, in a sum, and with one or more sureties satisfactory to the Board of Directors, for the faithful performance of the duties of his or her office and for the restoration to the Corporation of all books, papers, vouchers, moneys, and other properties of any kind in his or her possession or under his or her control belonging to the Corporation if he or she is removed from office for any reason.

The Treasurer shall perform all the duties generally incident to the office of the Treasurer, subject to the control of the Board of Directors and the Chief Executive Officer.

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Article Five Capital Stock

Section 5.01 Issuance of Certificates of Stock

The certificates for shares of the stock of the Corporation must be in a form consistent with the Articles of Incorporation or its amendments, and as approved by the Board of Directors. All certificates must be signed by the Chief Executive Officer and countersigned by the Secretary or by an Assistant Secretary. All certificates for each class of stock will be consecutively numbered. The Secretary will enter the name of the person owning the shares issued and the holder’s address in the Corporation’s books. The Secretary will cancel all certificates surrendered to the Corporation for transfer and no new certificates representing the same number of shares may be issued until the former certificate or certificates for the same number of shares have been surrendered and cancelled. If a certificate of stock is lost or destroyed, the Secretary may issue a replacement certificate upon proof of the loss or destruction and, unless specifically waived by the Chief Executive Officer, give a satisfactory bond of indemnity not exceeding an amount double the value of the stock. Both the proof and bond must be in a form approved by the Corporation’s general counsel and by the Transfer Agent of the Corporation and by the Registrar of the stock.

The Board of Directors may issue the number of shares of each class or series authorized by the Articles of Incorporation. The Board of Directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the Corporation, including cash, promissory notes, services performed, contracts for services to be performed, or other securities of the Corporation. Before the Corporation issues shares, the Board of Directors must determine that the consideration for the shares to be issued is adequate. The Board of Directors will determine the terms upon which the rights, options, or warrants for the purchase of shares or other securities of the Corporation are issued and the terms, including the consideration, for which the shares or other securities are to be issued.

Section 5.02 General Prohibition on Share Transfers

No Shareholder has any right to sell, gift, assign, encumber, transfer, or otherwise dispose of his or her stock except as provided in these Bylaws. This provision does not prohibit or restrict the Corporation’s right to issue stock in the Corporation. However, if a Shareholder’s employment, other than a Shareholder of record on December 28, 2016, with the Corporation is terminated for any reason, whether voluntarily or involuntarily, he or she must sell all of the stock in the Corporation that he or she owns at the time of this employment termination to the Corporation, a Shareholder of record on December 28, 2016, or to the Cornerstone Government Affairs, Inc. Employee Stock Ownership Trust.

Section 5.03 Encumbrance Restrictions on Share

A Shareholder may not mortgage, pledge, or otherwise encumber his or her stock without the prior written consent of Shareholders owning 100% of the outstanding common stock of the Corporation, including the stock that is proposed to be mortgaged, pledged, or otherwise

encumbered. Each Shareholder may grant or deny consent. This consent is not an amendment to these Bylaws.

Section 5.04 Eligible Subchapter S Corporation Shareholder

Despite anything to the contrary in these Bylaws, any time that the Corporation has an election to be treated as a Subchapter S corporation under the Code, no Shareholder may transfer, or agree to transfer, the Shareholder’s shares, either during the Shareholder’s lifetime or by operation of Shareholder’s Will, Revocable Living Trust, or other instrument, unless the transferee is qualified under the Code to be a Subchapter S corporation Shareholder.

Section 5.05 Effect of Improper Transfer

Any attempted transfer of stock in violation of this Article Five is null and void ab initio. No such transfer or admission may be recorded on the Corporation’s books and the purported transferee or Shareholder in any such transfer will not be treated (and, in the case of a transfer, the purported transferor will continue to be treated) as the owner of such stock for all purposes of these Bylaws. If the ownership of stock is in doubt, or if there is reasonable doubt as to who may receive a distribution attributable to stock, the Corporation may accumulate the amounts to be distributed until this issue is finally determined and resolved.

Section 5.06 Transfer of Shares

Shares of the Corporation’s capital stock will be transferred on the corporate books only by the holder of the stock in person or by his or her attorney in fact. The capital stock certificates must be surrendered and cancelled in exchange for a like number of shares in accordance with these Bylaws.

Section 5.07 Registered Shareholders

The Corporation may treat the holder of record of any share or shares of stock as the holder in fact of those shares, and is not bound to recognize any equitable or other claim to or interest in those shares in the name of any other person even if the Corporation has notice of the claim or interest, except as specifically provided by District of Columbia law.

Section 5.08 Closing Transfer Books

The Board of Directors may fix the time not more than 50 days before the date of any Shareholder meeting, date of any dividend payment, or date of any allotment of rights—during which time the books of the Corporation will be closed against stock transfers. In the alternative, the Directors may fix a date not more than 50 days before the date of any Shareholder meeting, date of any dividend payment, or date of any allotment of rights as a record date to determine the Shareholders entitled to receive notice of and to vote at any meeting or to receive any dividends or rights (as the case may be). Only Shareholders of record on those dates will be entitled to receive notice of and to vote at the meeting or to receive dividends or rights (as the case may be).

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Section 5.09 Dividends

The Board of Directors may from time to time declare and direct the Corporation to pay dividends on its outstanding shares in the manner and upon the terms provided by law and by its Articles of Incorporation.

Article Six Corporate Seal

The Corporation will not have a corporate seal.

Article Seven

Bank Accounts and Loans

Section 7.01 Bank Accounts

The Board of Directors may from time to time authorize designated officers or agents of the Corporation to deposit any corporate funds in those banks or trust companies designated by the Board of Directors, or may delegate to those officers or agents the authority to designate banks or trust companies. The designated officers or agents may also withdraw any or all of the funds of the Corporation deposited in the bank or trust company upon checks, drafts, or other instruments or orders for the payment of money, drawn against the account or in the name or behalf of this Corporation and made or signed by those officers or agents. Each bank or trust company with which funds of the Corporation are deposited is authorized to accept, honor, cash, and pay without limit as to amount all checks, drafts, or other instruments or orders for the payment of money when drawn, made, or signed by officers or agents designated by the Board of Directors until the bank or trust company receives written notice revoking the authority of any officers or agents from the Board of Directors. The Board of Directors will certify from time to time to those banks or trust companies the signatures of the officers or agents of the Corporation authorized to draw against those accounts. If the Board of Directors fails to designate the persons by whom checks, drafts, and other instruments or orders for the payment of money will be signed, any checks, drafts, and other instruments or orders for the payment of money must be signed by the Chief Executive Officer and countersigned by the President, the Secretary or Treasurer or an Assistant Secretary or an Assistant Treasurer of the Corporation.

Section 7.02 Loans

No loans may be contracted on behalf of the Corporation and no evidences of indebtedness may be issued in its name unless authorized by a resolution of the Board of Directors. The authority granted in the resolution may be general or confined to specific instances.

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Section 7.03 Contracts

The Board of Directors may authorize any officer, agent, or agents of the Corporation to enter into any contract or to sign and deliver any instrument in the name of and on behalf of the Corporation. The authority granted by the Board of Directors may be general or confined to specific instances.

Article Eight

Reimbursements

If the Internal Revenue Service disallows in whole or in part any payments made to an officer or other employee of the Corporation such as salary, commission, interest or rent, or incurred entertainment expense as a deductible expense, the officer or employee must reimburse the Corporation for the amount to the full extent of its disallowance. The Board of Directors must enforce payment of each amount disallowed. Instead of payment by the officer or other employee, the Board of Directors may authorize proportionate amounts to be withheld from his or her future compensation until the amount owed to the Corporation has been recovered.

Article Nine

Miscellaneous Provisions

Section 9.01 Fiscal Year

The first fiscal year of the Corporation will be determined by the filing of the first federal income tax return of the Corporation. Each fiscal year following the first fiscal year must end on the same date unless changed by resolution of the Board of Directors.

Section 9.02 Validity of Copies

Any person may rely on a copy of these Bylaws or any resolution of the Board of Directors that the Secretary certifies to be a true copy to the same effect as if it were an original.

Section 9.03 Singular and Plural; Gender

Unless the context requires otherwise, words denoting the singular may be construed as plural and words of the plural may be construed as denoting the singular. Words of one gender may be construed as denoting another gender as appropriate within the context. The word or used in a list of more than two items may function as both a conjunction and a disjunction as the context requires or permits.

Section 9.04 Resignation or Removal

The phrase resignation or removal means the voluntary or involuntary removal of a Director or officer, as the case may be, due to death, disability, removal by vote of the Shareholders or

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Directors (as the case may be), resignation, or refusal to act.

Section 9.05 Headings of Articles, Sections, and Subsections

The headings of Articles, Sections, and Subsections used within these Bylaws are included solely for the convenience and reference of the reader. They have no significance in the interpretation or construction of these Bylaws.

Section 9.06 Notices

Unless otherwise stated, whenever Bylaws call for notice, the notice must be in writing and must be personally delivered with proof of delivery, or mailed postage prepaid by regular US mail, to the last known address of the party requiring notice. If delivery is made by US mail, notice is effective on the date mailed; in all other cases, notice is effective when delivery is made.

Section 9.07 Waiver of Notice

Whenever any notice is required to be given under these Bylaws, the Articles of Incorporation, or any law, a written waiver of the notice, signed by the person or persons entitled to receive notice, whether before or after the time stated therein, is equivalent to the giving of that notice.

Attending any meeting is a waiver of notice of the meeting except if the attendance is for the specific purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened.

Article Ten Amendments

The Board of Directors has the authority to amend, alter, or repeal these Bylaws, in whole or in part, and may from time to time make additional Bylaws. This action may be taken at any general or special meeting of the Board of Directors by a vote of the Directors. But if the action is to be taken at a special meeting, notice of the meeting must state that a purpose of the meeting will be to consider and act upon alterations, amendments, or repeal of the Bylaws.

Article Eleven

Prior Bylaws Superseded

Effective March 1, 2023, these Amended and Restated Bylaws supersede the prior Amended and Restated Bylaws dated October 16, 2017 and December 3, 2020.

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CERTIFICATE

I hereby certify that the foregoing Bylaws, consisting of 17 pages, including this page, constitute the Bylaws of Cornerstone Government Affairs, Inc. adopted by the Board of Directors of the corporation as of March 1, 2023.

Geoffrey Gonella, Secretary

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2024

2024

2024

2024

2024

February

202 3 Top Line Revenue Snapshot

All Offices Combined

Budget: $78,630,000

Actuals: $80,815,099

 2022 Actuals: $68,881,581

 17% Growth from 2022 to 2023 (Actuals)

Washington, DC Office

Budget: $45,000,000

Actuals: $44,983,819

 2022 Actuals: $40,254,573

 12% Growth from 2022 to 2023 (Actuals)

State Offices

Budget: $29,130,000

Actuals: $30,705,788

 2022 Actuals: $25,214,908

 22% Growth from 2022 to 2023 (Actuals)

Ranked by Revenue:

1. Maryland Office: $5,286,237

2. Texas Offices: $4,632,657

3. Georgia Office: $3,963,767

4. Iowa Office: $3,705,762

5. Louisiana Office: $3,526,736

6. Illinois Offices: $2,484,000

Public Affairs

Budget: $4,500,000

Actuals: $5,125,492

 2022 Actuals: $3,412,100

 50% Growth from 2022 to 2023 (Actuals)

Advisory Services*

Budget: $1,323,500

Actuals: $731,985

 2022 Actuals: $892,895

7. Mississippi Office: $2,303,800

8. Maine Office: $1,316,666

9. Kentucky Office: $1,279,588

10. Oklahoma Office: $1,252,250

11. Colorado Office: $929,324

12. New Hampshire Office: $25,000

*Included in DC and States totals above – tracked internally as no separate budget for this business unit.

Breakdown of Total Revenue in 2023

Net Profit/Loss Snapshot

AllOfficesCombinedNetProfit/LossfromOperations

2022: $8,827,026

2023: $8,414,197 – Budget: $8,685,193

2024: $6,493,870 (budgeted)

Washington,DCOffice

2022: $4,957,710

2023: $4,669,717 – Budget: $5,394,000

2024: $3,687,500 (budgeted)

StateOfficesCombined

2022: $4,073,356

2023: $3,728,287 – Budget: $3,678,035

2024: $2,781,308 (budgeted)

PublicAffairs

2022: ($204,040)

2023: $16,193 – Budget: ($386,842)

2024: $25,062 (budgeted)

ESOPRelatedExpenses

2022: ($5,813,888) – does not include transfer of $250,000 for future RL funding

2023: ($6,062,277) – does not include transfer of $250,000 for future RL funding

2024: ($5,267,850) (budgeted) – does not include budgeted transfer of $250,000 for future RL funding

Growth from 2022 to 2023 (Actuals)

TotalNetIncome(ESOP&DebtService)

2022: $3,013,138

2023: $2,351,920

2024: $1,226,020

Accounts Receivable Snapshot

AR Totals as of 12/31/2022: $8,330,990

AR Totals as of 12/31/2023: $10,751,860 – includes current AR of $4,553,981

 Frontera Resources: $1,000,000

 MicroGEM: $555,210

 Homeplate: $310,000

2023 Total Bad Debt Expense: $219,937

Expense Overview

Compensation Package

 Livinguard: $250,020

 IEM: $225,052

 Vyripharm Enterprises: $165,000

 2023 Salaries, Bonuses & Payroll Taxes: $51,483,795

 2023 Benefits (Insurance, Parking, 401(k), Charitable Giving): $4,028,618

2023: $55,512,413 or 68.5% of total revenue

2024: $65,888,705 or 72.5% of total revenue (budgeted)

2023 Operations Overhead Percentage: 10% of total salaries, bonuses & payroll taxes are attributed to the firm’s operations personnel

2022 Net Full-Time New Hires: 29 – 136 total (as of 12/31/2022) / 14.5% growth since 2021

2023 Net Full-Time New Hires: 31 – 164 total (as of 12/31/2023) / % growth since 2022

2023 Largest Notable Overhead Expenses

 Consultants & GR/PA Subcontractors: $4,556,105 or 6% of total revenue

o Consultants: $3,100,917

o Government Relations/Public Affairs:$1,455,188

 Rent: $3,559,072 or 4% of total revenue

 Non-Reimbursable Business Expenses: $2,437,648 or 3% of total revenue

 Insurance – Medical, Dental & Vision: $1,942,372 or 2% of total revenue

Other 2023 Notable Overhead Expenses

 401(k) Match: $1,083,452

 Subscriptions: $919,257

 Intern Salaries: $531,167

 Parking: $494,638

 Political Contributions: $426,244

 Computer Service & Support: $369,247

 Communications: $356,452

 Insurance – Other: $346,030

 Memberships: $326,391

 Sponsorships: $319,346

Notable Overhead Changes

2022 to 2023 :

 Reductions:

o Removal of 20th Anniversary Activities, including lower charitable contributions due to fundraising campaign conclusion

o Moved into office space & reallocated furniture expenses to balance sheet

o Workers compensation & liability insurance premiums adjusted with audit corrections

 Increases – most all increases are due to additional personnel:

o Addition of “bad debt expense” to account for write offs from previous years

o Higher computer service & support due to outsourced Help Desk & revamping of office conference rooms & infrastructure

o Higher continuing education & conferences due to focus around succession efforts & encouragement of personnel to participate in more continuing education & conference opportunities

o Higher ESOP Administration for additional consulting services for Repurchase Liability study & investment account management fees

o Higher intern fees due increase in minimum wage, enforcement of overtime pay & additional interns added to programs

o Higher office supplies & staff expenses due to uptick in team building events & purchases for new & existing office spaces

o Higher political contributions due to expansion of state offices & request for more political giving

o Higher outside professional fees due to additional subcontractors on projects, financial controller fees & legal fees

o Higher rent due to continued expansion of D.C. & state offices & normal escalations

o Higher subscriptions due to increased need for licensing across all business units & additional administrative subscriptions

2023 to 2024 :

 Reductions:

o Lower outside professional fees due to lower anticipated legal fees

 Increases – most all increases are due to additional personnel:

o Higher computer service due to new outside security vendor

o Higher equipment purchases due to state office moves & revamp of IT infrastructure in addition to new hires & existing employee computer upgrades

o Higher ESOP administration due to new trustee increased fees

o Higher intern fees due to 2024 increase to minimum wage

o Higher marketing & promotions due to presidential conventions

o Higher professional development for additional executive coaching & leadership development opportunities

Client Service Professionals – Production Per Desk

2021 Net Full-Time Staff Members (over the course of 12 months): 117

2022 Net Full-Time Staff Members (over the course of 12 months): 136

2023 Net Full-Time Staff Members (over the course of 12 months): 164

2021 Breakdown – did not include associates in this calculation this year

Total FTE Senior Client Service Professionals: 99

Total Firm Revenue: $60,986,204

Revenue Generated per FTE Senior Client Service Professional: $616,022

Average Compensation Cost per FTE Senior Client Service Professional: $267,317

Gross Profit per Desk Based on Salary: $348,705

2022 Breakdown

Total FTE Client Service Professionals: 122

Total Firm Revenue: $68,881,581

Revenue Generated per FTE Client Service Professional: $564,603

Average Compensation Cost per FTE Client Service Professional*: $272,926

Gross Profit per Desk Based on Salary: $291,677

*Reflective of all client service professionals – average compensation cost per Principal is $343,250.

2023 Breakdown

Total FTE Client Service Professionals: 152

Total Firm Revenue: $80,815,099

Revenue Generated per FTE Client Service Professional: $531,678

Average Compensation Cost per FTE Client Service Professional*: $279,500

Gross Profit per Desk Based on Salary: $252,178

*Reflective of all client service professionals – average compensation cost per Principal is $373,750

202 4 Financials Projection Summary

All Offices Combined

 Baseline: $81,185,709

 Adjustments: $2,765,448

 New Business: $6,928,843

 Total Revenue Goal: $90,880,000

o 12.5% Growth from 2023 Actuals to 2024 Budget

Washington, DC Office

 Baseline: $45,702,627

 Adjustments: $297,373

 New Business: $3,000,000

 Total Revenue Goal: $49,000,000

o 9% Growth from 2023 Actuals to 2024 Budget

State Offices Combined

 Baseline: $29,900,082

 Adjustments: $2,093,075

 New Business: $2,886,843

 Total Revenue Goal: $34,880,000

o 13.5% Growth from 2023 Actuals to 2024 Budget

Ranked by Revenue Goals:

1. Maryland Office: $5,650,000

2. Texas Offices: $4,750,000

3. Georgia Office: $4,300,000

4. Iowa Office: $4,100,000

5. Louisiana Office: $3,600,000

6. Illinois Offices: $2,750,000

Public Affairs

 Baseline: $5,583,000

 Adjustments: $375,000

 New Business: $1,042,000

 Total Revenue Goal: $7,000,000

7. Mississippi Office: $2,750,000

8. Oklahoma Office: $2,000,000

9. Maine Office: $1,600,000

10. Colorado Office: $1,450,000

11. Kentucky Office: $1,400,000

12. New Hampshire Office: $530,000

o 36.5% Growth from 2023 Actuals to 2024 Budget

Advisory Services*

 Baseline: $414,156.32

 Adjustments: $41,000

 New Business: $349,000

 Total Revenue Goal: $805,000

o 10% Growth from 2023 Actuals to 2024 Budget

*Internally tracked – totals are part of other office goals

Madeleine Diakiwski Chair

Max de Vreeze Member

Chris Hodgson Member

Dao Nguyen Member

Stacy Rich Member

Hunt Shipman Member

Shanetta Paskel Chair

Melissa Ayala Porte Member

Mike Goodman Member

Alex Lopez Member

TJ Tatum Member

Mike Smith Member Name Role

Name Role

Maddy Williams Chair

David Adelman Member

Matt Hinch Member

Gabrielle Kees Member

Sally Kilpatrick Member

Jenna Massoni Member

John Sandell Chair

Chris Carpenter Member

Erik Fatemi Member

Molly Kiernan Member

Anne Mazuca Member

Lizzie Messer Member

Heather Molino Member

Nial Patel Member

Jim Richards Member Name Role

Kirsten West Chair

Claire Burghoff Member

Jimmy Centers Member

Yunjeong Lee Member

Matt Paul Member Name Role

Advisory Services Business Unit Subcommittee

Madeleine Diakiwski Chair

Jack Belcher Member

Ayana Freeman Member

Alice Gomez Member

Brent Greenfield Member

Camille Young Member

Cornerstone

Vision 2030

A Strategic Plan for the Continued Growth of Cornerstone

Approved : March 1 , 2023

Amended : March 1, 2024

INTRODUCTION

Cornerstone was founded by like-minded professionals with a shared vision and goal of improving the business of government relations and public affairs. While many competitors rely on a business model that showcases individuals, we orient ourselves around teams, and to each employee’s overall contributions to those teams and the business.

We built our business on the foundation of team-oriented collaboration and a holistic, comprehensive approach to everything we do, from personal client service provided by professionals to our internal systems of operations, evaluation, and decision-making. We believe in hard work; a flat, disciplined, and rigorous process and structure; consistent communication; accountability; and high-quality performance. Cornerstone operates as a complete team by bringing together a group of capable and qualified professionals with broad and diverse backgrounds, experiences, perspectives, and relationships, to conceive and execute successful strategies on behalf of our clients

Cornerstone is an industry leader in federal government relations. We are a national leader in state government relations, with a unique business approach among government affairs consulting firms. Our public affairs and advisory services business units are comparatively smaller but rapidly growing and highly respected components of our diversified business.

Since our founding in 2002, we have grown significantly and consistently and in doing so have diversified our business and established a valuable brand. Today, we are fortunate to have an organization of over 180 professionals, 170 of which are employee-owners. We have four distinct business units that have team members in 15 offices across the country. In 2023, our revenue was just under $80 8 million. Overall, Cornerstone is one of the most respected and successful professional services and public affairs consulting firms in our industry.

As we look to the future, we do so from a position of strength. However, this strength doesn’t mean we won’t face challenges. Included within this document is a plan outlining how we will meet those challenges through a series of strategic planning goals. This plan is designed to be flexible enough to evolve and change based on economic and environmental considerations.

As we strive to meet those challenges, we will be guided by our mission, vision, and values as well as several key priorities:

 Maintaining and Strengthening Our Culture

 Maintaining and Strengthening the Team Approach

 Maintaining Excellence in Our Work Product

 Promoting Balance, Bipartisanship, and an Inclusive Environment

 Developing Leaders at all Levels

 Continuing Our Commitment to Transparency and Accountability

EXECUTIVE SUMMARY

There is broad consensus that our current structure and approach work well and that there is a high level of confidence in current leadership, and in our ability and desire to grow across all business units. That said, there is a need to prepare for the future of the firm, to evolve as we continue to grow and to work to ensure long-term sustainability. All these need to be intentional, structured, and as inclusive as possible.

There is also broad consensus that we will face many challenges in the coming years, including a highly volatile and partisan political environment, an uncertain economy, the lingering effects of the global pandemic, rapidly changing technology developments, as well as ongoing and growing competition. Finally, there is the reality that current leaders in the firm will transition and/or retire.

Broad consensus also exists that we are well positioned to handle these challenges, in part, because of our structure and our professionals

Cornerstone’s 2016 conversion from a partnership to an Employee Stock Ownership Plan (ESOP) was a move wholly in line with our mission, philosophy, goals, and values – to formalize our commitment to a flat and non-hierarchical structure and ensure every single member of the firm had a financial and equity stake in its future.

The move also represented a critically important step toward planning the long-term durability of the firm. Many firms in our industry experience challenges and erosion as their founders begin to transition away from the business, often looking to realize their early investment through sale, merger, or other disposition that may not be in the best long-term interests of the overall business and the professionals within.

With the conversion to an ESOP, the firm established a new governance structure that included the establishment of a Board of Directors. At present, there remains a desire for the Board, while maintaining its strong powers to check and conduct oversight of current and new leadership, to serve primarily as an advisory and strategic body for the firm’s leadership It is our intent that Board composition should evolve to reflect the full balance of the firm’s employee-owners broadly and appropriately.

There is also a desire to expand the leadership team(s) throughout the organization to reflect the growing operational needs

There is a desire for increased communication and transparency, including more regular, fixed, and periodic meetings oriented toward participation in business decisions by all employee-owners and briefings of all employee- owners by the Board and members of the leadership teams

Over the past few years, we have focused significant attention on building out and formalizing our operations team while adding several new team members. That work lays a foundation that will only continue in the months and years to come – as our broader team continues to grow, the operations team will grow. There is a clear desire and need to expand and potentially reorganize/restructure the operations team to better meet the needs of the growing organization. This includes all aspects of operations from finance to marketing to information technology to human resources to compliance.

Across the firm, there is a desire for more leadership opportunities and the need to develop a larger group of leaders. Yet, there is also a clear recognition that leadership at the firm and throughout the business units can mean many different things and can come in many different forms.

While there is an endorsement of the benefit and positive role of certain committees, the sense is that any standing committee needs to carry a specific purview and responsibilities and have an obligation of periodic reporting to the Board and other members of the leadership team(s).

Regarding Diversity, Equity, and Inclusion (DEI), overall, the sentiment is that Cornerstone has steadily improved its internal DEI efforts. Cornerstone is doing better than many of its counterparts in this area, and we should be proud of where we are. However, there remains a strong commitment to do more in the areas of DEI. Racial and gender diversity have increased at Cornerstone and focus remains on other areas of diversity, including, but not limited to sexual orientation, religion, geography, socioeconomic status, partisan affiliation, and educational backgrounds.

This plan outlines a series of possible reforms and new approaches to the systems, structures, and institutions of our business in part to improve and streamline our possible approach to planning leadership and management succession.

Establishing and appointing key personnel in new senior leadership roles will help develop our bench of senior leaders by providing those individuals with increased exposure to the operations and details of our business and preparing them for expanding responsibilities over time.

Additionally, the proposed structural and institutional reforms will pave the way for continued flexibility both in terms of the next succession and many possible future transitions – all with the goal of creating a durable foundation for our firm to continue building on well into the future.

Following an initial review from the various subcommittees, the feedback received was broadly enthusiastic and supportive regarding the overall initial implementation of the strategic plan. In particular, the subcommittees believe that the process of continually seeking to incorporate and include views from throughout the entire firm was and is extremely strong. Likewise, they continue to view the work at this stage of implementation to continue seeking out ongoing feedback from team members at all levels as very positive and reflective of the firm’s overall culture and values.

Subcommittees also acknowledged areas of ongoing focus and as is outlined in the updated Dashboard suggested adjustments to several tactics and recommend new tactics.

Finally, in terms of overall revenue targets, we offer the following updated projections for 2024 through 2030, which is based on a minimum of 10% annual revenue growth in 2024 and a minimum of 5% of annual revenue growth year over year for 2025-2030. This is directly in line with the current projections for our annual ESOP valuation. Below is a snapshot of those projected revenue goals, based on the above growth percentages:

 2023: $ 80,787,099 - Actuals

o FGR: $44,573,334

o SGR: $30,358,038

o Public Affairs: $5,123,742

o DEI: $353,250

o ESG: $171,025

o PAC: $207,710

 2024: $ 90,880,000

o FGR: $48,495,000

o SGR: $34,580,000

o Public Affairs: $7,000,000

o DEI: $300,000

o ESG: $250,000

o PAC: $255,000

 2025: $95,759,250

o FGR: $50,919,750

o SGR: $36,309,000

o Public Affairs: $7,700,000

o DEI: $300,000

o ESG: $250,000

o PAC: $280,500

 2026: $100,918,738

o FGR: $53,465,738

o SGR: $38,124,450

o Public Affairs: $8,470,000

o DEI: $300,000

o ESG: $250,000

o PAC: $308,550

 2027: $106,360,674

o FGR: $56,139,024

o SGR: $40,030,673

o Public Affairs: $9,317,000

o DEI: $300,000

o ESG: $250,000

o PAC: $323,978

 2028: $112,117,058

o FGR: $58,945,976

o SGR: $42,032,206

o Public Affairs: $10,248,700

o DEI: $300,000

o ESG: $250,000

o PAC: $340,176

 202 9 : $118,207,846

o FGR: $61,893,274

o SGR: $44,133,816

o Public Affairs: $11,273,570

o DEI: $300,000

o ESG: $250,000

o PAC: $357,185

 20 30 : $124,654,417

o FGR: $64,987,938

o SGR: $46,340,507

o Public Affairs: $12,400,927

o DEI: $300,000

o ESG: $250,000

o PAC: $375,044

Inherent in these numbers is the focus to continue to shrink the gap between revenue attributed to the federal government relations business unit and the other business units with the goal of getting closer to a 50/50 balance by the end of 2030.

IDENTITY

Mission

To inform, advise, and advocate on behalf of our clients and to serve as a team of trusted partners, who create opportunities and solve problems delivering positive outcomes.

Vision

Cornerstone was founded to provide comprehensive, team-based, bipartisan counsel to clients. Our commitment to that founding philosophy enables us to deliver exceptional results. Our goal for the future is to continue growing and developing responsibly, while preserving the culture, core values, and mission that make Cornerstone special.

Values

Collaboration & Teamwork . Drawing on the strengths of our diverse backgrounds, experiences, and viewpoints, we work collaboratively to provide our clients with creative ideas and achievable solutions. We believe in hard work, strategic planning, aggressive implementation, loyalty, consistent communication, and accountability

Commitment to Excellence . We strive to attract and retain the most respected industry experts and reliable advocates, building a team of trusted advisors to deliver sound advice and exceptional client service.

Honesty & Trust . Our professionals embrace an inclusive culture and comprehensive team approach to everything from client service to operations. We believe leveraging our collective expertise and experience helps us build long-term, authentic relationships and in doing so adhering to the highest professional standards and ethics.

MANAGEMENT AND STRUCTURE

The following addresses the organizational structure and management of the organization, with particular emphasis on the Board of Directors. As a general principle of the firm, the flat organizational structure with minimum management oversight is greatly valued, is a key cultural component of the firm, and will be retained as the firm continues to grow and expand.

Goal No. 1 Increase Rotation of Board Members and Reduce Board Size to 13 Seats

The composition of the Board should continuously evolve – both now and into the future – to reflect the totality and the input of the firm’s employee-ownership more broadly and appropriately across a variety of dimensions, including, but not limited to business units, gender and racial balance, role, capabilities and skillsets, experience, and other metrics, while continuing to place a critical and fundamental emphasis on partisan balance.

The Board shall develop a timeline for all currently non-rotating seats to transition to rotating seats that is outlined in the attached Board Rotation Schedule Beginning January 1, 2025, rotating seats shall serve one four-year term and may be eligible for reelection to the Board after a one-year break in service. Prior to January 1, 2025, the length of Board terms will vary to create a reasonable rotation schedule going forward.

There will be no permanent members of the Board. The Chief Executive Officer (CEO), the President, and the Chief Operating Officer (COO) will become Ex-Officio nonvoting members of the Board between January 1, 2024 and January 1, 2026 in accordance with the Board Rotation Schedule outlined in the Appendix As these transitions take place, only the CEO’s voting seat will be replaced and the voting seats of the President and COO will not be replaced. At the conclusion of these transitions on December 31, 2025, the Board will consist of 13 voting members and 3 Ex-Officio members.

An effort will be made to formalize input from all members of the firm regarding new Board members going forward.

Goal No. 2

Create an Audit Committee of the Board

A three-person Audit Committee of the Board will be created to assist the Board with responsibilities for oversight of the financial reporting process, selection of an independent auditor, and receipt of audit results both internal and external.

SUCCESSION AND LEADERSHIP DEVELOPMENT

Goal No. 3 Provide Opportunities for Leadership Development

Succession begins with identifying key team members who are interested in additional management and leadership positions within the firm, who have demonstrated strong performance, leadership traits, sound judgement, an open and accessible demeanor, and who exemplify our core values.

This strategic plan has implemented several opportunities for members of the firm to participate more fully in the management and leadership of the company and to gain experience and visibility into all aspects of the firm’s operations.

These opportunities include, but are not limited to the following:

 Creating more rotating seats on the Board

 Shortening Board terms

 Reconstitution of the Executive Committee

 Creation of a Federal Leadership Team and State Leadership Team

 Creation of a PA Managing Principal position(s)

 Reorganized and restructured Committees

 Providing additional management and operations support for each business unit

In addition to the growth opportunities listed above, the Senior Leadership Team will evaluate various management and leadership programs and select those that seem to be most relevant and beneficial to the firm.

Examples of these additional developmental opportunities are:

 External executive management and leadership programs offered by several highly regarded universities;

 A custom designed program specifically for Cornerstone that is directly focused on the specific and most relevant topics that the Senior Leadership Team and future leaders identify. An external consulting firm(s) may be engaged to design and deliver these programs; and,

 Individual and team coaching will be provided as desired and needed

Additionally, there will likely be special initiatives and projects created throughout the implementation of the strategic plan. These too, will provide additional opportunities for future leaders to contribute and demonstrate their management and leadership skills and to be considered for positions focused on management and leadership.

Finally, the Board of Directors and the Senior Leadership Team recognize that succession planning is an ongoing process and that as the company grows, there will be additional opportunities for team members to deepen the management and leadership bench.

DIVERSITY, EQUITY,

AND INCLUSION

Cornerstone has steadily improved and focused its internal diversity, equity, and inclusion (DEI) efforts. As mentioned prior, Cornerstone is doing better than many of its counterparts in this area and should be proud of where we are. However, there is strong support to do more in the areas of DEI. The goals below are the focus of the firm’s immediate efforts to continue to improve our DEI efforts.

Goal No. 1 Define DEI for Cornerstone

Cornerstone will create an affirmative statement, for internal use, as to its definition of DEI:

 Diversity is having a representation of differences that may include race, ethnicity, nationality, gender, gender identity, sexual orientation, religion, socioeconomic status, geography, language, (dis)ability, age, religious affiliation, or political perspective. Diversity is often meant to refer to groups that have been underrepresented, marginalized, or discriminated against in society.

 Equity is ensuring access to opportunities and resources, providing fair practices, and guaranteeing equal treatment for all. A key component of equity is understanding that to obtain it, one must recognize barriers, past discriminations, or a person’s unique needs. A quote by an unknown author illustrates this point in simple terms: “Equality is giving everyone the same pair of shoes. Equity is giving everyone a pair of shoes that fits.”

 Inclusion is creating a culture where all are welcomed, respected, and valued for what the person contributes to the workplace and society in general. An inclusive environment is one where everyone feels as if they belong.

Goal No. 2

Continue to Focus Additional Attention on DEI Efforts Across the Firm

We will continue to focus on enhancing our annual DEI training for all professionals across the firm to be more interactive as well as respectful of traditional marginalized communities and various political ideologies. Such training will be in addition to our regular HR training, and we will strive to do this dedicated training on an annual basis.

Goal No. 3

Continue to Expand Recruitment Efforts for Diverse Candidates and D iversify our Work place

The firm has made a concerted effort over the past few years to expand the recruitment of diverse candidates to further diversify our workplace. We will continue to expand these recruiting efforts by attending diverse job fairs, placing advertisements and listings in diverse places, and supporting Cornerstone

professionals in whatever they need to develop a diverse candidate pool. We will dedicate time to continue to develop relationships with HBCUs, MSIs, and the diverse staff organizations on Capitol Hill and in state capitals, when applicable.

Goal No. 4 E nhance and Improve our Internal Intercultural Activities and Awareness Programs

To better educate and raise awareness about the diverse backgrounds of our professionals, we will enhance and improve our internal programs around intercultural activities This will include dedicating financial resources where necessary for quarterly social events and diversity awareness initiatives (4 per year) It is important to note that these efforts are not just for the people of the groups we are mentioning but also for education of our employees to make them more aware of how important diversity is to the effectiveness of the firm, to our clients, and to society

Goal No. 5 Develop and Utilize Best Practices Around DEI for Marketing, Business Development , and Client Service

Working with the marketing team, we will develop a process to implement a series of best practices around DEI that can be utilized in the areas of marketing, business development, and client service.

Additionally, we will continue to conduct more outreach to diverse communities and caucuses at both the federal and state levels with the interest in hosting Cornerstonesponsored events on their behalf. These events not only benefit recruitment and Cornerstone’s brand, but they also serve as opportunities to market the firm and build and maintain relationships with key elected officials and their staffs.

FEDERAL GOVERNMENT RELATIONS

Federal Government Relations (FGR) is a foundational capability and business unit of Cornerstone. Over the past 20 years, the business unit has grown significantly and in 2023, FGR represented 55% of the firm’s total revenue.

Maintaining our bipartisan and team approach has been critical to the business unit’s success and will be critical to its future growth. On the management and structure front, the primary goal is to provide additional leadership and resources to the organization and operations of the business unit without adding unnecessary or burdensome reporting and/or bureaucracy.

The core team structure is critical to our collaborative nature and the overall performance of the business unit, but there is recognition that growth of the business unit can impede the most efficient operation of our client teams. The team approach works best with clear communication and mutual understanding and commitment to the expectations of clients and colleagues. Assisting colleagues’ capacity to balance personal, client service, and business development goals – especially considering the recent and expected future growth – is key to the continued success of FGR.

Cornerstone is active to some degree across virtually the entire breadth of federal legislative and administrative policymaking, at varying levels and frequency of engagement. We are at our strongest in policy spaces where we combine several diverse qualities of client service personnel, including government experience, relationships among policymakers, political activity, relationships within industry, and subject matter expertise.

There is significant opportunity for the FGR offering to grow – in capability, clients, and team members. We have already established ourselves as one of the premier independent lobbying firms in D.C. and believe this reputation and our unique culture, ESOP structure, and team approach will help us achieve continue growth and success over the next several years.

The following goals are designed to assist with the above outlined growth and are based on a commitment of resources to the unit’s leadership. These resources will be dedicated to ensuring we hit our growth targets, leading talent acquisition, establishing and facilitating best practices for client service and business development, optimizing the team approach, and protecting the firm’s culture.

They are based in part on the idea of modest growth in revenue (between 3-5% annually) and additional team members. They include the creation of a Federal Leadership Team that is a combination of operations and client service professionals. They include an expansion of the operations team focused on FGR and the development of a leadership cohort for purposes of both professional development and succession. Finally, they are based on increased transparency, accountability, and communication within the business unit, between all business units, and with all staff.

Culture is universally valued and recognized as a competitive advantage. As such, we will look for ways to encourage the hallmarks of our culture throughout the business unit, including prioritizing diversity as a business imperative and critical to our future growth.

Goal No. 1 Maintain a Top 5 Ranking * (among independent firms)

* Based on publicly available LDA revenue

Goal No. 2 Achieve a Minimum of 5 % Annual Growth in Revenue

Goal No. 3

Maintain Balance Between Revenue and Personnel Growth

It is important that we consistently review the balance between revenue growth and personnel growth. This includes the need to regularly review and analyze the size of our core client service teams, the scope of service associated with each client engagement, and the level of client retainers. We need to maintain a certain level of utilization for all our team members to make sure that we can provide the highest level of service. As we add clients and revenue, we will make sure we have the right number of team members and that the work of those team members is properly balanced. Inherent in this ongoing analysis is the goal of this business unit remaining profitable.

Goal No. 4

Enhance Oversight and Leadership of the FGR Business Unit

FGR is of a size, in terms of personnel, clients, and revenue, that it requires additional coordination and leadership. As such, a Federal Leadership Team, which includes a combination of client service and operations professionals who are focused on FGR and report to the CEO, was created in 2023 This group works together to develop and share best practices, assist with balancing workloads, and ensure that our team model is functioning effectively and efficiently. This group focuses on communication, collaboration, cooperation, and the culture of the business unit, and will be a resource for all members of FGR. In 2024 and beyond, this leadership team will focus on further integrating with our federal practice groups and facilitate additional information sharing with the entire FGR team on topics of importance A more in-depth overview of the Federal Leadership Team’s roles and responsibilities is outlined here within under Appendix B.

Goal No. 5 Add Key Personnel in Priority Areas

We will continue to assess areas of need, gaps in capabilities, and opportunities for growth as it relates to identifying potential additions to the client service team. We will remain focused on building as broad and diverse a team as possible with solid balance between generalists and subject matter experts. Based on our current assessment, these issue areas include:

Goal No. 6

 Energy/Environment

 Tax Policy

 Appropriations

 Healthcare (CMS, FDA, etc.)

 Financial Services

 Agriculture

 Tech/Telecom/AI/Cyber

 National Security (Defense)

Additionally, we will remain in the market for opportunistic hires that have other important capabilities, relationships, and skillsets. This includes factors like partisan balance, gender balance, diversity, reputation, relationships, geographic focus, business development success, potential for leadership, etc. Inherent in this is succession planning and backfilling existing strengths to prepare for future transitions.

Bolster Political Activity

As an important function of the FGR business, we will work to bolster political activity across the firm through sharing of best practices. We will work to broaden the group of team members involved in these activities. This will include sharing ways we can support colleagues in growing relationships, more closely tracking memberships, identifying relationships gaps, and finding ways to develop those relationships. We also will focus on doing a better job of making our clients aware of our activity in this space and garnering their support.

Goal No. 7

Improve Best Practices Around Client Service Functions

Utilizing a combination of the new FGR Senior Team and the expanded Client Service Operations team, we will work to develop improved best practices around all aspects of our client service. This will include how to be more effective as a team lead and team member; better methods to promote communications and teamwork, intelligence, and information sharing; how to better utilize political activity; and rightsizing of client scopes of work and retainers

Goal No. 8

Better Define Roles, Responsibilities , and Function s of Practice Groups

Our practice groups are a critical tool for us to develop and maintain expertise in several core areas. They are also an important business development and marketing tool. These practice groups work best when they grow organically and without any formalized leadership roles, such as heads of practices groups.

An exchange of information between practice group members (subject matter experts and generalists) is important and generally beneficial to all colleagues and

clients. Practice groups will be encouraged to report out on regular staff calls and over email to regularly share information that may be of interest to colleagues and clients. To supplement the work being done by subject matter experts within practice groups, we will encourage generalists to engage on a regular basis to exchange intel or discuss what intel must be gathered on upcoming legislative or regulatory activity of interest.

Despite no formalized leadership, more structure, communication, and coordination are beneficial and will be encouraged and facilitated by the Federal Leadership Team

STATE GOVERNMENT RELATIONS

Since 2008, the State Government Relations (SGR) business unit has been a highly successful endeavor for Cornerstone. That success is due to the strong talent across our states and the support of the operations team and leadership. The employee-owners are natural entrepreneurs and have successfully grown and developed their offices and client bases with oversight from senior leadership as needed and as requested.

The flat management structure of the SGR business unit is unique compared to other firms and is deeply coveted by our existing team members. This management structure enables us to recruit some of the most talented people in the industry and allows for ongoing, strategic operational decision-making. As Cornerstone grows, the strategic plan will provide a guide for our state offices to maintain this management structure while meeting the needs and expectations of all Cornerstone employees.

Current oversight and management of the existing state offices is solid and highly effective but not sustainable given the aggressive growth strategy. A leading factor in the ability to attract and retain quality candidates to Cornerstone is the hands-off management style. Cornerstone state office professionals have the autonomy to create, adapt, and build a business based on their strategic desires and decisions, with the safety net and support of the overall organization. The desire to stay flat and lean is the overwhelming preference of our existing professionals.

The growth and expansion of the state offices have been driven by the people and the opportunities that presented themselves, as opposed to a more formal or formulaic process. Cornerstone’s SGR revenue has grown at an average rate of 41% annually since the business unit launched in 2008 and has achieved a 22% annual growth rate in the past five years. The average headcount in the state offices is six, and there is strong support across the states for growth but also a recognition of the need to preserve the firm’s culture in the process.

Goal No. 1 Achieve a M inimum of 5 % A verage A nnual R evenue G rowth A cross A ll Existing S tate O ffices Beginning in 2024

Goal No. 2 St rive to E qual C loser to 50% of the F irm’s O verall R evenue by 2033

Goal No. 3 Maintain Balance, Diversity and Flexibility When Growing in New and Existing Markets

As new state offices open, Cornerstone will analyze how each expanded territory can strengthen the firm’s current regions and/or add geographic and political diversity.

Goal No. 4

Continuing to enlist Cornerstone’s existing professionals early in the process when identifying new state opportunities will minimize risk and ensure that our colleagues feel that they have a voice in the future of the firm.

We will work to continually find ways to tether SGR and its personnel to the overall organization without being burdensome. Expanded onboarding activities with existing states and personnel will help ensure new state team members feel like part of the overall organization early on.

Maintain a Flat Management Structure

A flat management structure is an important goal but not sustainable based on macro and micro feedback from colleagues.

The firm established a State Leadership Team to assist the President with all aspects of operations except compensation in 2023. In addition to the Senior Manager of State Government Relations, this team is comprised currently three state client service professionals. This group works together to develop and share best practices, assist with balancing workloads, and ensure that our team model is functioning effectively and efficiently. This group focuses on communication, collaboration, cooperation, and the culture of the business unit, and serves as a resource for all members of SGR This group will continue to focus on increasing the amount of travel to the state offices to interact with state colleagues and develop communication cadence between the SLT and various state offices. A more in-depth overview of the State Leadership Team’s roles and responsibilities is outlined here within under Appendix B.

Goal No. 5

Increase Communication Among Individual State Team Members and Between State Offices as well as the D.C. Office

The State Leadership Team will assist the President to continue building unique opportunities for state team members to interact with one another as well as their D.C. office team members.

Goal No. 6

Develop a Specific Succession Plan for SGR Business Unit

A succession plan for the SGR business unit will be established to streamline the inevitable process of change in management and leadership.

The SGR succession plan involves the recognition of internal employees who merit advancement and training these employees to assume future roles within the company. An effective plan will further equip the identified successor(s) with the skills and competencies needed for their future role. Cornerstone employees possess a significant amount of trust in current leadership to establish a plan.

In the event a vacancy occurs, Cornerstone’s Board of Directors will develop a process to fill the position, and the Board, in coordination with the President and State Leadership Team, will seek advice from their state colleagues to validate recommendations when replacing or adding a management position.

The criteria the Board will use in their selection will include the following but not be limited to:

 Internal candidate (possesses institutional knowledge)

 Reflects the Cornerstone culture

 Possesses leadership traits

 Ability to work with colleagues of any political affiliation

 Respect of their peers

 Trustworthiness

 Willingness to forego client service

 Attention to detail and organized

 Interest and availability to travel to state offices

 Strong communication skills

 Desire to lead

PUBLIC AFFAIRS

Cornerstone Public Affairs is a bipartisan team dedicated to helping clients effectively tell their stories. As a group of professionals with diverse experience in public relations, business, media, government, and politics, the team helps clients anticipate and navigate the complexities that occur at the intersection of policy, politics, and public perception. The team currently has nearly 20 fulltime client service professionals generating and managing over $5.5 million in revenue through the service of nearly 40 clients with an average monthly retainer of $13,768.

Cornerstone’s Public Affairs (PA) business unit was launched in April 2017 with the goal of providing a complete, complimentary service offering led by senior-level bipartisan professionals to Cornerstone clients, both current and potential, that increases the ability to achieve governmentfacing goals.

Launched out of the Des Moines, Iowa office, the business unit’s goal was to expand Cornerstone’s services, experience, and expertise with the addition of a public affairs offering and to solidify Cornerstone’s position as the market leader and only true bipartisan firm in the state of Iowa.

In its inaugural year, Cornerstone Public Affairs secured work with eight clients, the majority of which were Iowa-based. However, in 2018, the client mix began to shift to include more clients with a national purview, including clients shared with the FGR business unit and standalone Cornerstone PA clients. With a growing mix of clients (both shared with FGR and standalone PA) with national interests, Cornerstone PA added a permanent public affairs and strategic communications presence to Cornerstone’s Washington, D.C. office in January 2019. Since that time, Cornerstone PA has added six additional principals in D.C. in addition to hiring dedicated public affairs professionals in the Atlanta, Georgia office; the Oklahoma City, Oklahoma office; the Houston, Texas office; and the Concord, New Hampshire office. Additionally, Cornerstone PA has added a dedicated public affairs manager to facilitate business development and operational needs and has grown its associate-level ranks to a team of six across offices in Atlanta, D.C., Des Moines, and Houston

Of the current PA clients, 17 are exclusively under contract for PA services and 21 are shared clients among the other three business units

Public Affairs growth is key to the future growth of Cornerstone and requires a different formula for success than the other business units.

Goal No. 1 Achieve a Minimum of 10 - 15% Annual Revenue Growth Beginning in 2024

Goal No. 2

Enhance Connection between PA and both FGR and SGR

We will explore a diversification of Public Affairs capabilities, services and structure (including pricing) designed to be more integrated and supportive of government relations clients.

Goal No. 3

Significantly Increase Understanding and Knowledge of PA Capabilities and Service Among Cornerstone Team Members

We will create a plan to educate Cornerstone staff on public affairs capabilities. Cornerstone has a large client base across a range of industries, organizations, and sizes. Many FGR and SGR clients either have or need a PA capability. With a focused effort to highlight PA client success stories, regular descriptions of PA capabilities shall be announced on regular staff calls

Goal No. 4 Standardization and Formalization of Client Service Operations

The Public Affairs Manager shall work closely with the President and the Managing Principal(s) to standardize and formalize the core team evaluation and implementation process to allow for more balance amongst the PA team as it relates to core team involvement, both in terms of leadership and membership.

Goal No. 5

Develop Strategic Hiring Plan Specific to PA

We will work to enhance our existing strategic hiring efforts specific to PA while mirroring the approach we take on FGR strategic hiring. These efforts will be led by the President in coordination with all members of the PA team.

Goal No. 6

Expand PA Presence and Capabilities in State Offices

In coordination with state office personnel, we will focus on building out the PA presence across our state offices, where and when it makes sense. At this time, we will focus on near-term expansion in Texas, Maryland, and Louisiana. Existing capabilities reside in Georgia and Oklahoma as well as Mississippi and Maine, though the latter two states are typically one-off engagements.

Goal No. 7

Enhance PA’s I n - H ouse Capabilities

Current in-house capabilities and service offerings include:

 Strategic communications counsel

 Public relations campaign development

 Message crafting

 Media training

 Press engagement

 Brand and initiative launches

 Crisis communications and rapid response

 Event planning and execution

 Issue advocacy support

 Brand management

 Collateral design

 Social media engagement

 Focus group engagement and management

To enhance the existing capabilities of the PA service offerings, we will work to build out and define a digital communications capability in the near-term. As the PA team continues to grow, we will evaluate if other capabilities, such as research (polling and aggregated data), trend analysis, online surveys, and interviews, make sense to build out

ADVISORY SERVICES

As Cornerstone’s newest business unit, Advisory Services has already begun to show how it can diversify the firm’s client work and revenue. To date, this business unit has operated differently from others by pulling in existing firm personnel and resources to provide additional services in the areas of Diversity, Equity, and Inclusion (DEI); Environmental, Social, and Governance (ESG); and Political Action Committees (PAC)

Advisory Services has sufficient resources for current needs and modest growth, but significant growth for this business unit will require a thoughtful approach, strategy, and resources. The most significant resources would be around personnel and staff education and training for marketing purposes.

Despite its relative size, the Advisory Services business unit has provided a positive impact to Cornerstone. It has served as both a revenue and capabilities diversification tool. It has created service offerings with limited conflicts within the business unit and between business units, and it has created the opportunity to broaden and strengthen our relationship with clients.

The aim for Advisory Services is to remain profitable and contribute more to the firm’s overall revenue by improving and expanding existing offerings. We will also undertake an initiative to review, evaluate, and potentially launch other/new potential offerings.

The priority is education on the service offerings within the business unit to our other business units. We also need a more robust external marketing and branding effort to increase awareness and educate key constituencies of our clients, capabilities, and team members in this area of the business.

While we are projecting modest growth in all three service offerings, the following goals assume no major changes to our existing client service teams. They do include additional resources in operations in areas such as human resources, finance, marketing, and intern support. Potential changes and/or additional management in each of the Advisory Services offerings as well as the business unit overall are under consideration. As we have in the past, we are open to potential client service professional additions, should such a candidate be identified and/or an increase in business generation is realized in the short-term.

Goal No. 2

Increase Awareness of Advisory Services Capabilities Across Cornerstone

It has become apparent that Cornerstone professionals need to develop a deeper understanding of the Advisory Services capabilities. Increasing this awareness and further educating our professionals will allow for natural growth as professionals are able to confidently market our Advisory Services offerings. To better educate the firm on these capabilities, we will work to provide biannual Advisory Services Lunch & Learns to provide an opportunity for hands-on training. Additionally, we will work to share case studies and other Advisory Services marketing materials to increase their ability to market these services to existing and potential clients.

Goal No. 3

Enhance Marketing Efforts Surrounding our Advisory Services Capabilities

To grow the Advisory Services client base, there needs to be a more concerted effort to better market these capabilities. While the marketing techniques associated with service offerings differ, we will focus on investing more time and effort into digital marketing, participation in conferences and speaking engagements, and the coordination of Cornerstone branded events to promote these service offerings.

Additionally, to ensure our Advisory Services professionals feel confident in their ability to service clients in these areas, we will continue to promote the pursuit of continued education, professional development trainings and certifications amongst our DEI, ESG, and PAC team members, with approval by the Senior Leadership Team of the financial obligations associated with this initiative.

Goal No. 4

Evaluate Additional Dedicated Senior Client Service Professional s

Over the next 12-18 months, we will evaluate the potential to add dedicated senior client service professionals to both the DEI and ESG teams. Such professionals will likely have direct experience in client service in these areas and have recognized expertise in each area. Several metrics will be utilized in the evaluation, including potential future growth, potential client base, profitability, etc.

Goal No. 5

Evaluate Specific Branding and Marketing Strategies for Each of the Advisory Services Offerings – New Goal Established in 2024

In an effort to evaluate specific branding and marketing strategies for each of the Advisory Services offerings, we will focus on creating working groups to review current strategies and make recommendations on any adjustments.

APPENDIX A

202

December 31, 2024 – 1 New Board Member

1) Camp Kaufman – Move to Ex-Officio non-voting Board member – seat will be removed from the Board

2) Jim Richards – New member with term expiring December 31, 2028

December 31, 2025 – 3 New Board Members

1) Suzanne Battista – Move to Ex-Officio non-voting Board member – seat will be removed from the Board

2) Hunt Shipman – New member with term expiring December 31, 2029

3) Mike Smith – New member with term expiring December 31, 2029

4) Eric Tober – New member with term expiring December 31, 2029

December 31, 2026 – 3 New Board Members

1) Louie Perry – New member with term expiring December 31, 2030

2) Amy Souders – New member with term expiring December 31, 2030

3) Susan Sweat – New member with term expiring December 31, 2030

December 31, 2027 – 4 New Board Members

1) Matt Hinch – New Member with term expiring December 31, 2031

2) Delora Ifekauche – New Member with term expiring December 31, 2031

3) Matt Paul – New Member with term expiring December 31, 2031

4) Stacy Rich – New Member with term expiring December 31, 2031

December 31, 2028 – 3 New Board Members

1) Chris Hodgson – Term expiring December 31, 2032

2) Nial Patel – Term expiring December 31, 2032

3) New Member – Term expiring December 31, 2032

December 31, 2029 – 3 New Board Members

1) New Member – Term expiring December 31, 2033

2) New Member – Term expiring December 31, 2033

3) New Member – Term expiring December 31, 2033

December 31, 2030 – 3 New Board Members

1) New Member – Term expiring December 31, 2034

2) New Member – Term expiring December 31, 2034

3) New Member – Term expiring December 31, 2034

APPENDIX B

Federal Leadership Team Roles and Responsibilities

The Federal Leadership Team will be a standing resource of 4-5 professionals from our client service and operations teams to assist and support the CEO with all operative aspects of the FGR business unit, including, but not limited to general operational support, client service coordination, business development and marketing, human resources, and financial planning. FGR team members will not report to the Federal Leadership Team and the Leadership Team will not be involved in individual compensation matters. The Federal Leadership Team will be proactive in their implementation on several fronts and a primary interface on several others.

General Support

 Proactively communicate with FGR colleagues and serve as a resource and mentor for FGR professionals to ensure our team model is functioning effectively and efficiently

 Promote and increase communication, cooperation, and collaboration within the FGR team and with other business units in an effort to maintain the culture of the firm.

 Work to identify needs, gaps, and opportunities within the FGR team to help assess future hires and the overall growth of the business unit.

 Collaborate with FGR colleagues on conflict of interest and business risk management.

 Provide general support to the Operations team (Client Service Operations, Compliance, Finance, Human Resources, Information Technology, Marketing) in its work with the FGR team, as needed.

 Provide regular reports to the CEO on the overall operations of the FGR team.

 Assist with monitoring the implementation of the strategic plan

Client Service Coordination

 Assist with balancing client service core teams and workloads:

o Collaborate with FGR team members to help assess bandwidth and balance of client service teams; and

o Review and provide feedback on client core team documents and client lists.

 Support the ongoing evaluation of client scopes of services, retainers, and contract renewals.

Business Development and Marketing

 Collaborate with the FGR marketing team and individual FGR client service professionals on business development opportunities, as needed.

 Assist with the effective transition of potential clients to existing clients.

NOTE: The Federal Leadership Team will meet weekly and assist with each of these activities at the direction of and in consultation with the CEO and the Chief of Staff.

State Leadership Team Roles and Responsibilities

The State Leadership Team will be a standing resource to assist and support the President with all operative aspects of the SGR business unit, including, but not limited to, general operational support, client service coordination, business development and marketing, human resources, and financial planning. SGR team members will not report to the State Leadership Team and the Leadership Team will not be involved in individual compensation matters. The State Leadership Team will be proactive in their implementation on several fronts and a primary interface on several others. Among other benefits, the Leadership Team will provide the President with additional time to focus on management of the Public Affairs business unit as well as SGR expansion.

General Support

 Serve as a daily resource to SGR professionals on all operations of the firm and work to ensure that our team model is functioning effectively and efficiently.

 Increase communication and collaboration in an effort to maintain the culture of the firm:

o Participate on state biweekly calls;

o Travel to state offices (3-4 states per member);

o Proactively communicate with SGR colleagues and serve as a general resource for SGR colleagues;

o Work to improve existing activities and identify new initiatives to protect and enhance the culture of the firm, maintain our team approach, and promote communication, cooperation, and collaboration among colleagues;

o Coordinate and attend state office team-building activities; and,

o Develop and share best practices across the state offices.

 Provide general support to the Operations team (Client Service Operations, Compliance, Finance, Human Resources, Information Technology, Marketing) in its work with the SGR team, as needed.

 Assist with monitoring the implementation of the strategic plan.

Client Service Coordination

 Assist with balancing client service core teams and workloads:

o Collaborate with SGR team members to help assess bandwidth and balance of client service teams Work with the state offices to identify needs and gaps in current markets and personnel; and,

o Maintain client core team documents and client lists (specific to Senior Manager of SGR).

 Support the ongoing evaluation of client scopes of services, retainers, and contract renewals.

Business Development and Marketing

 Help with business development opportunities as needed;

 Coordinate with the marketing team to enhance oversight and ensure the effective transition of potential clients to existing clients; and,

 Coordinate and attend state-related events.

Additional Items

 Coordinate relationships with external state consulting firms across the country;

 Provide regular reports to the President on the overall operations of the SGR team; and,

 Facilitate and help manage the firm’s involvement in and efforts around national memberships.

NOTE: The State Leadership Team will meet weekly and assist with each of these activities at the direction of and in consultation with the President and the Senior Manager, SGR.

Management and Structure Goals 2023 Dashboard

1)Establish an Initial Board of Directors with 15 Voting Members

2)Increase Rotation of Board Members and Reduce Board Size to 13 Voting Members

3)Create an Executive Committee

4)Reorganize the Firmwide Senior Leadership Team

5)Create an Audit Committee of the Board

6)Streamline, Reorganize, and Restructure Standing Committees

The

Management and Structure Goals 2024 Dashboard

1)Increase Rotation of Board Members and Reduce Board Size to 13 Voting Members

CEO, President and COO to move to Ex-Officio

2)Create an Audit Committee of the Board

3)Provide Opportunities for Leadership Development

Gonella (12/31/2023); Camp Kaufman (12/31/2024); Suzanne Battista (12/31/2025)

Leadership Team determining recommendations to board - ongoing Board agenda item

Assessing program structure with current executive coaches and working to build out suite of program offerings The

began in May

as of 2/2024, 6 colleagues receiving coaching and 4-5 more slated for 2024

1)Define

Add definition of DEI and what it means to the firm to Cornerstone employee handbook

Enhance new employee onboarding process with increased focus on DEI initiatives and activities

2)Continue

Hire additional Human Resources (HR) team member and shift roles of existing HR department to allow for greater focus on DEI efforts

Finalize launch of DEI annual trainings for all employees

3)Continue

Continue efforts around identifying diverse candidates to expand our growing team

Continue to support and participate in diverse caucus events

Work to identify job fairs and strategic partnerships that target diversity candidates for Cornerstone to attend

Conduct more outreach to HBCUS, MSIs, and our clients to get diverse applicants and interns

4)Enhance

Establish annual budget for intercultural activities and

Culture Committee to work with Operations team to plan and execute at least 4 intercultural activities and awareness programs

5)Develop

for

commemorative months in 2024

1)Define DEI for Cornerstone

Diversity, Equity, and Inclusion Goals 2024 Dashboard

Enhance new employee onboarding process with increased focus on DEI initiatives and activities

2)Continue to Focus Additional Attention on DEI Efforts Across the Firm

Finalize launch of DEI annual trainings for

3)Continue to Expand Recruitment Efforts for Diverse Candidates and Diversify our Workplace

Continue efforts around identifying diverse candidates to expand our growing

Continue to support and participate in diverse caucus events

Work to identify job fairs and strategic partnerships that target diversity candidates for Cornerstone to attend

Conduct more outreach to HBCUS, MSIs, and our clients to get diverse applicants and interns

4)Enhance and Improve our Internal Intercultural Activities and Awareness Programs

Subcommittee to conduct outreach to human resources team to schedule a meeting in early 2024

5)Develop and Utilize Best Practices Around DEI for Marketing, Business Development, and Client

Service

fair attendance shall continue in 2024 and will work to identify potential strategic partnership

in regards to the internship program, but more resources are now being put into doing the same for full-time hires, including participating in HBCUs

1)Maintain a Top 5 Ranking (among independent firms)

2)Achieve a Minimum of 5% Annual Growth in Revenue

Facilitate internal discussions on client contract renewal best practices

Share

Evaluate current client retainers, scopes of work and resource allocation to identify where we should pursue increases

Further develop best practices on identifying and facilitating multi/cross business unit opportunities

3)Maintain Balance Between Revenue and Personnel Growth

Attract a minimum of

Maintain a well-sized associate team to help balance overall team workloads with client

Develop additional management tools to measure

Communicate team membership and leadership averages and areas

4)Enhance Oversight and Leadership of the FGR Business Unit

Establish an FGR Strategic Hiring Committee to support the recruiting and hiring process

Create a working list of target hires with details on their capabilities and potential timing

Conduct a continual assessment and prioritization of target hires and growth areas

Provide regular information sharing with the FGR business unit on prioritization of target hires

6)Bolster

Strengthen coordination between our D and R groups

Create a working group of professionals who are focused on strengthening coordination between our D and R groups and the sharing of best practices

Increase best practices conversations on specific fundraising tactics (e.g. building networks, how to host an event and what's required, etc.)

Create a list of clients with PACs to be utilized by both our D and R team members as a resource for fundraising efforts

Conduct a more regular review of our fundraising efforts

7)Expand

Add a new position – Senior Manager, Federal

Create and launch Federal Leadership Team

8)Improve

Encourage

Provide more regular information sharing and readouts from federal

Increase continuing education and training

9)Better

1)Maintain

Generate

2)Achieve

Facilitate internal discussions on client contract renewal best practices

Share information on average client retainer levels based on scopes of work and organizational types

Evaluate current client retainers, scopes of work and resource allocation to identify where we should pursue increases

Further develop best practices on identifying and facilitating multi/cross business unit opportunities

3)Maintain

Attract a minimum of

Maintain a well-sized associate team to help balance overall team workloads with client revenue

Develop additional management tools to measure team leadership and membership

Communicate team membership and leadership

Develop and facilitate team management

4)Enhance

and needs for associate team growth

Conduct a continual assessment and prioritization of target hires and growth areas

Provide regular information sharing with the FGR business unit on prioritization of target hires and growth areas

6)Bolster Political Activity

Increase internal communication and organization among D team members

Increase internal communication and organization among R team members Completed but Always in Progress

Strengthen coordination between our D and R groups

Create a working group of professionals who are focused on strengthening coordination between our D and R groups and the sharing of best practices

Increase best practices conversations on specific fundraising tactics (e.g. building networks, how to host an event and what's required, etc.)

Conduct a more regular review of our fundraising efforts

8)Improve Best Practices Around Client Service Functions

Encourage and facilitate small group forums on specific client service topics

Provide more regular information sharing and readouts from federal practice groups

Increase continuing education and training opportunities

Tailor our FGR new hire onboarding process with additional discussions on specific topics (e.g. client service tactics, business development and pitching, fundraising, etc.)

9)Better Define Roles, Responsibilities, and Functions of Practice Groups

Enhance communication among Energy practice group

Enhance communication among Health practice group Completed

FGR Strategic Hiring Committee continues to meet and assess prioritization of target hires and growth areas

CEO working with FGR Strategic Hiring Committee to communicate efforts

Regular (monthly) meetings occurring for R team members

FLT coordination being led by Chris Hodgson and Dao Nguyen to share best practices, questions and topics between D and R groups

Asking D and R groups to conduct a review in Q1 2024 to capture all 2023 activity; Event

highlighting Cornerstone event hosting to be circulated in Q1 2024

conversations to organize list of topics and sessions for 2024

working actively on this effort; share practice group agendas w/ FGR team (what's on their radar - hearings, issues, etc.)

Continued participation from colleagues in continuing education and training opportunities; FLT members have encouraged colleagues to find these opportunities; Professional Development Committee to assist here

worked with the HR team in 2024 to tailor onboarding schedules for new FGR hires

actively on this effort - Chris Hodgson joining monthly Energy meetings; ongoing efforts related to information sharing

working actively on this effort - 2023 analysis completed but will re-engage for 2024; ongoing efforts to further integrate into monthly meetings

Reach each state office top line revenue goals

Add personnel to existing offices who have a book of business and/or who we believe can help us attract new clients/revenue

Each state office analyze current contract retainers and scopes of work at least twice a year (mid-year and year-end) and identify and pursue potential increases

Each state office review projections quarterly or as needed

Retain as many existing clients as possible and pursue long-term clients vs. short-term/session-only clients

Add new market(s)/new state office(s)

While 3 states didn’t hit their revenue goal, SGR collectively surpassed its goal and saw a 22% growth rate in this year

Hired roughly 20 new state colleagues across 11 offices based on state's needs

Each state office thoroughly reviewed their projections more so than in years past and had mid-year check-in

Quarterly Finance Manager circulates projections quarterly for review and upon request

Ongoing efforts of state teams; 92% client retention rate from 2023 baseline

New Hampshire office launched 9/1/2023 and short list of additional potential new state office locations established

Set

Add personnel to existing offices who have a book of business and/or who we believe can help us attract new clients/revenue

Each state office analyze current contract retainers and scopes of work at least twice a year (mid-year and year-end) and identify and pursue potential increases

Each state office review projections quarterly or as needed

Retain as many existing clients as possible and pursue long-term clients vs. short-term/session-only

Add new market(s)/new state office(s) based on opportunity and financial stability of the company

Set and reach state office top line revenue goals

Add personnel to existing offices who have a book of business and/or who we believe can help us attract new clients/revenue

Each state office analyze current contract retainers and scopes of work at least twice a year

and identify and pursue potential increases

Each state office review projections quarterly or as needed

Retain as many existing clients as possible and pursue long-term

Finance Manager will continue to circulate projections quarterly for review and upon request

Continuing discussions surrounding potential new states

3 states didn’t hit their revenue goal, SGR collectively surpassed its goal and saw a 22% growth rate in this year; 2024 planning meetings set to determine goals

Each state office thoroughly reviewed their projections more so than in years past and had

check-in; While this was improvement, we can still be more intentional about assessing scopes and retainers

circulates projections quarterly for review and upon request

Establish a State Leadership

President continues to manage state offices on a day-to-day basis with support from the Senior Manager, State Government Relations and the SLT

More travel to state offices for the state senior manager and create a travel and communication cadence between the SLT members and various state offices

6)Increase Communication Among Individual State Team Members and Between State Offices as well as the D.C. Office

More travel to state offices for the senior manager and SLT members

Develop and implement best practices to maintain culture and ongoing

Continue in-person onboarding process and travel to DC for new hires

7)Develop

a Specific Succession Plan for SGR Business Unit

Identify key leaders in the organization and provide internal leadership opportunities and projects for

have begun travel to state offices and goal set for 2024 for Board members to travel to at least one state office; operations team members developing schedule for travel as well

members, FLT, SLT, Committees, Working Groups, etc. Create external professional education and development opportunities (e.g. ESOP Convention, etc.)

1)Achieve

Set and reach state office top line revenue goals

Add personnel to existing offices who have a book of business and/or who we believe can help us attract new clients/revenue

Each state office analyze current contract retainers and scopes of work at least twice a year (mid-year and year-end) and identify and pursue potential increases

Each state office review projections quarterly or as needed

Retain as many existing clients as possible and pursue long-term clients vs. short-term/session-only clients

Add new market(s)/new state office(s) based on opportunity and financial stability of the company

Completed but Always in Progress

Completed but Always in Progress

Completed but Always in Progress

To begin in early 2024

States to continue reviewing their projections and conducting mid-year check-ins; need to focus more on assessing scopes and retainers

Finance Manager will continue to circulate projections quarterly for review and upon request

Completed but Always in Progress Ongoing Ongoing efforts of state teams

Completed but Always in Progress

Assessment to begin in early 2024; Continuing discussions surrounding potential new states

Set and reach state office

Add personnel to existing offices who have a book of business and/or who we believe can help us attract new clients/revenue

Each state office analyze current contract retainers and scopes of work at least twice a year (mid-year and year-end) and identify and pursue potential increases

Each state office review projections quarterly or as needed

Retain as many existing clients as possible and pursue long-term clients vs. short-term/session-only clients

Add new market(s)/new state office(s) based on opportunity and financial stability of the company

Increase interaction and communication with possible hires/firms with a focus on states where we have internal relationships

Completed but

Completed but

Completed but

Completed but

in Progress

Completed but

Progress

More involvement and support from select SGR professionals at all national membership events to increase relationship building Completed but

Increase focus on opening physical locations/offices around the country, including but not limited to, states where our existing personnel are currently already doing work

Assessment to begin in early 2024

States to continue reviewing their projections and conducting mid-year check-ins; need to focus more on assessing scopes and retainers

Finance Manager will continue to circulate projections quarterly for review and upon request

Ongoing efforts of state teams

Assessment to begin in early 2024; Continuing discussions surrounding potential new states

to increase involvement at RGA, DGA, RAGA and DAGA events

President

Each Board member, Executive Committee member, and State Leadership Team member visit at least one state office per year

Develop and implement best practices to maintain culture and ongoing communication

Continue in-person onboarding process and travel to DC for new hires

Commit to at least one annual in-person gathering for all state colleagues

Encourage each state office to host a retreat for their office annually

6)Develop a Specific Succession Plan for SGR Business Unit

Completed but Always in

Completed but

but

Goal set for 2024 for Board members to travel to at least one state office; operations team members developing schedule for travel as well

Biweekly calls, state offsite, state retreats/strategy meeting, SLT, all staff call, State Series

team coordinates with Senior Manager, SGR to schedule as new hires are identified

Offsite save the date sent - location being finalized

SLT to work with individual states on establishing dates for retreats

Create external professional education and development opportunities (e.g. ESOP Convention, etc.)

Executive Committee regularly check in with president to monitor bandwidth and feelings of effectiveness

New Tactic Added

Completed but Always in

President to continue communicating with EC on relevant issues

1)Recognize a 15-20% Revenue Growth in 2023

Reach top line revenue goal set

Identify another senior principal or two who we believe can help us attract additional clients/revenue

Ensure every member of the Public Affairs (PA) team participates in business development process. At principal level, it is expected a leadership role be taken to secure and close business deals.

Actively explore further expansion into Cornerstone states

Public Affairs team members shall engage in skill development, professional networking, trend

2)Achieve a Minimum of 10-15% Annual Revenue Growth Beginning in 2024

Identify another senior principal or two who we believe can help us attract additional

Ensure every member of the PA team participates in business development process. At principal level, it is expected a leadership role be taken to secure and close business deals.

Actively explore further expansion into Cornerstone states

Public Affairs team members shall engage in skill development, professional networking, trend

3)Increase Dedicated Leadership to PA Business Unit

4)Enhance PA Representation in Firm Leadership

5)Enhance Connection between PA and both FGR and SGR

Seek non-public affairs team member to offer insight into how public affairs enhanced their service offering

Conduct a quarterly (or more frequent) case study presentation at Monday staff meeting

Utilize onboarding PA meetings to explain offerings

Look for opportunities to educate new Cornerstone principals in small groups or one-on-ones (for example, get lunch or coffee with new hires)

7)Standardization

Deputize the Public Affairs Manager to work with BD lead Principals to build out client teams with bandwidth and skill set in mind

Public Affairs Manager to ask associates weekly what their 1-5 bandwidth is to inform projects and one-off assignments

8)Develop

Stack rank capabilites we don't currently offer, and explore hires who offer those capabilities

Increase efforts to create a pool of potential hires that is outside of current networks

Determine metrics to define success in terms of increased diversity in hiring

Explore increased external recognition for Cornerstone's good client work and DC involvement as a tool

case studies presented during business unit updates during staff meeting

during all new hire onboarding meetings

Public Affairs Goals 2024

1)Achieve a Minimum of 10-15% Annual Revenue Growth Beginning in 2024

Reach top line revenue goal set in January

Identify another senior principal or two who we believe can help us attract additional clients/revenue Completed but Always in Progress

Explore digital capabilities and vision

Ensure every member of the PA team participates in business development process. At principal level, it is expected a leadership role be taken to secure and close business deals.

Actively explore further expansion into Cornerstone states

Public Affairs team members shall engage in skill development, professional networking, trend analysis and continuing education

2)Enhance Connection between PA and both FGR and SGR

Explore opportunities to educate our colleagues on our service offerings in small groups across

Proactively look for more joint pitch opportunities In Progress

Explore adding public affairs professionals to the state offices where there is market demand and it makes business sense

3)Significantly Increase Understanding and Knowledge of PA Capabilities and Service Among Cornerstone Team Members

Overall revenue goal of $7 million set for 2024; as of 3/1/2024, total revenue is at $5.68 million

New D.C. hire in February 2024

outsourcing and in-house hire

efforts of the PA team to evaluate with President and Managing Principals

efforts of the PA team to evaluate with President and Managing Principals

efforts of the PA team to identify opportuntiies

Seek non-public affairs team member to offer insight into how public affairs enhanced their service offering

Look for opportunities to educate new Cornerstone principals in small groups or one-on-ones (for example, get

or coffee with new hires)

4)Standardization and Formalization of

Deputize the Public Affairs Manager to work with BD lead Principals to build out client teams with bandwidth

skill set in mind

5)Develop

Public Affairs Manager joins monthly Principal calls and schedules meetings as needed to assess,

6)Expand PA Presence and Capabilities in State Offices

Explore adding public affairs professionals to the state offices where there is market demand

7)Enhance PA’s In-House Capabilities

Support and promote opportunities for team members to enhance skills, both through continuing education

internal resource offerings

Create clear job descriptions and advancement opportunities so staff know how they can grow

Advisory Services Goals 2023 Dashboard

1)Achieve a Minimum of 5-10% Annual Revenue Growth Across All Service Offerings

Realize

Add

Realize

Add 2-3 new

Add 2-4 new Center for ESG and Sustainability contracts (research projects)

Realize

Add 2 new Cornerstone PAC clients

Develop creative pricing options for PAC projects and additional revenue sources

Increase our internal staff awareness and external marketing/branding activities of our

Conduct regular evaluation of the need for additional Advisory Services personnel to achieve revenue goals and balance workloads

2)Increase

Provide regular Advisory Services business unit updates on the Weekly Staff

Consistent circulation of updated Advisory Services collateral materials to staff

Conduct regular and dedicated briefings on each

Provide regular e-mail updates on client activities and

Implement a regular Advisory Services business unit meeting to increase communication within the business

3)Enhance

Small

for onboarding meetings in

and first overview provided to new hires in July 2023

Regular updates being provided by DEI, ESG and PAC team members with the intention of increasing the frequency of updates in 2024

Collateral materials circulated to staff on a semi-regular basis, but more consistency and frequency is needed in

Sending a scheduling email in January to

ESG team involvement in the Texas CPA Energy Conference, the Hart Energy Conference and the Texas Advanced Nuclear Reactor Working Group; DEI team involvement in the annual CBC and NBCSL conferences; PAC team involvement in the NABPAC Conference Participate

Most relevant for PAC services; ongoing participation in PAC PALs social network and NABPAC and Public Affairs Council continued learning and workshops

Increase communication with other business units to encourage cross selling and multi-business unit

Implement a regular Advisory Services business unit meeting to increase communication within the business

4)Evaluate Additional Dedicated Senior Client Service Professionals

Monitor performance and growth of DEI advisory services to determine need of

Monitor performance and growth of ESG advisory services to determine need of additional personnel

Monitor performance and growth of PAC advisory services to determine need

Higher number of cross selling and multi-business unit opportunities involving Advisory Services in 2023, with the majority of those involving PAC services

Sending a scheduling email in January 2024 to implement a quarterly Advisory Services meeting

Actively monitoring growth and performance of service line to determine needs and opportunities with growing the DEI team

Actively monitoring growth and performance of service line to determine needs and opportunities with growing the ESG team

Actively monitoring growth and performance of service line to determine needs and opportunities with growing the

Add

Add 2-3 new

Add 2-4 new Center for ESG and Sustainability contracts (research projects)

Realize

Increase

Add

Develop creative pricing options for PAC projects and additional revenue sources Completed

Increase our internal staff awareness and external marketing/branding activities of our Advisory

Conduct regular evaluation of the need for additional Advisory Services personnel to achieve revenue goals and balance workloads

Completed

Continue to evaluate payment structures and right size monthly retainers, project fees and hourly rates

Continue initiatives by all teams (DEI, ESG & PAC) throughout the year to increase both internal and external awareness of our Advisory Services

Ongoing conversations to evaluate the level of client work and revenue alongside workloads - will develop a cadence for these meetings

Provide

Consistent circulation of updated Advisory Services collateral materials to staff

Conduct regular and dedicated briefings on each service offering

Regular updates being provided by DEI, ESG and PAC team members with the intention of increasing the frequency of updates in

Collateral materials circulated to staff on a semi-regular basis, but will do so more consistenly and frequently in 2024

Need to schedule briefings for ESG and DEI in 2024 - PAC done in 2023, but will schedule another in 2024 Provide

a quarterly

Monitor

Monitor performance and growth of ESG advisory services to determine need of additional personnel

Monitor performance and growth of PAC advisory services to determine need of

5)Evaluate Specific Branding and Marketing Strategies for Each of the Advisory Services Offerings

New Goal Added

2024 CORNERSTONE COMMITTEE S

CULTURE COMMITTEE

Purpose: To maintain and improve the culture of the firm and promote and enhance our bedrock values: communication, cooperation, collaboration, and teamwork amongst all colleagues across all business units.

The focus of this committee is to facilitate dialogue and conversation on a range of important issues; cultivate a positive, respectful, and understanding work environment that promotes diversity, equity, and inclusion; and reinforce our organizational philosophy.

Chairs:

Members:

Joe Barton and Camille Young

Beckie Feldman

Steve Marchese

Bernie Marczyk

Katelyn O’Hare-Hayes

Nial Patel

Louie Perry

Amy Souders

TJ Tatum

ES OP COMMITTEE

Purpose: To oversee the firm’s ESOP and serving as the liaison between the ESOP and its participants. The Committee is empowered to assist the Trustee and Plan Administrator to satisfy and operate the ESOP in accordance with the terms of the Guidelines of the Cornerstone ESOP Committee

Chair:

Members:

Suzanne Battista

Jack Belcher

Joe Bischoff

Chris Carpenter

Will Cousineau

Alice Gomez

Elizabeth Teed

Eric Tober

Todd Webster

FEDERAL GOVERNMENT RELATIONS (FGR)

STRATEGIC HIRING COMMITTEE

Purpose: To identify and assess the needs and opportunities for future hires and overall growth and expansion of the Federal Government Relations business unit.

Chairs:

Members:

Carlos Jackson and John Sandell

Courtney Bradway

Mike Goodman

Molly Kiernan

Anthony Lazarski

Stacy Rich

Chris Sarley

Sarah Venuto

INTERN COMMITTEE S

Purpose: To oversee all functions of the firm’s Internship Programs, which consists of three sessions in the Fall/Winter, Winter/Spring and Summer.

The focus of these committees are to ensure that the recruitment and management of intern candidates is handled efficiently and is based on the firm’s needs and objectives while providing the best internship experience to those interns who are selected and serve as an intern for each session.

Members: Federal

Leah Hathaway

Taylor Levins

Courtney Cano

Lily Max Cooke

Hunt Shipman

Susan Sweat

Public Affairs

Bridget Maloy

Mark Calvin

Yunjeong Lee

Operations

Kyleigh Boval

Caitlin Greene

Teresa DiGioia

Taylor Johnson

ONBOARDING & MENTORSHIP COMMITTEE

Purpose: To improve and assist with the onboarding and mentorship process for all Cornerstone employees.

The focus of this committee is to advise and work with the Human Resources team to make the introduction to the firm and onboarding process for new hires more organized and structured. This includes providing useful tools and guidance to allow them to succeed in their new position as well as strengthen the mentorship experience for all employees.

Chairs:

Members:

Lucy Lasseur and Christian Lee

Paul DiNino

Erik Fatemi

Delora Ifekauche

Robin Juliano

Abi Kinnard

Maggie Linden

Bridget Maloy

Jenna Sublett

Kara van Stralen

Pending New Member Addition

PROFESSIONAL DEVEL O PMENT COMMITTEE

Purpose: To identify and provide opportunities for Cornerstone employees to support professional development.

The focus of this committee is to research and assess coursework, programs, and certifications for leadership, managerial, and educational development to directly support and advance the mission of the firm. This includes identifying and proposing topics and speakers for webinars, seminars, and events to support knowledge, skills, and abilities for the Cornerstone team across legislative, policy, technical, operations, and other areas of importance for all employees.

Chairs:

Members :

Madeleine Diakiwski and Jonathan Miller

Emily Broda

Charles Carithers

Fred Clark

Jordan Gleason

Lizzie Imber

Karyn Richman

Matt Schnappauf

Ben Sheidler

Paige Thorson

Mark Yates

A RTIFICIAL IN TELLIGENCE (AI) WORKING GROUP

Purpose: To draft an official policy and best practices around Cornerstone’s use of artificial intelligence across all aspects of our business

Chairs:

Members :

Brent Greenfield and Max Moll

Diana Borda

Megan Davisson

Tarek El Mehri

Christian Walker

Dylan Mooers

Montgomery Odle

Mike Padgett

Hunt Shipman

Ellen Valentino

Cornerstone is a leading, bipartisan, employee-owned government and public affairs consulting firm dedicated to serving the communities in which we live and work. Last year marked our 20th anniversary and two decades of volunteering time and resources to make a positive impact. To better capture our firm’s involvement in our local communities, we are pleased to present our 2022 Community Impact Statement.

CORPORATE GIVING

Cornerstone engages in charitable giving to support various organizations and programs important to our team members.

$110,900

In 2022, the firm contributed to through charitable giving initiatives and sponsorship opportunities.

120 organizations

EMPLOYEE-DIRECTED SUPPORT & VOLUNTEERISM

Organizations supported by our team members include:

$1.7 million

Since 2002, Cornerstone has contributed more than to local and national causes.

$1,000 annually

Cornerstone'sCommunityEngagementProgramprovideseach employeewith tosupportnon-profit organizationsandcharitiesoftheirchoosing.

Throughthisprogram,wesupportabroadsetofnational organizations,causesandinitiatives,includinghomelessness, education,foodinsecurity,diversity,disasterrelief,medical research,veteran’sbenefits,publichealth,animalrescueand more.

Cornerstoneencouragesitsemployeestobeactiveintheir communitiesandserveinleadershipandvolunteerpositions. Ourteammembershavededicatedthousandsofhoursgiving backtothoseinneed.

www.cgagroup.com | @cgagroup

20TH ANNIVERSARY CHARITABLE GIVING CAMPAIGN

The power of service is at the heart of our philosophy, model and approach.

In 2022, one of the ways our firm acknowledged the milestone of our 20th anniversary, was through a dedicated, year-long charitable giving campaign focused on

food insecurity.

Across 11 states and the District of Columbia, Cornerstone identified local food banks to support financially and through multiple days of service by our employee owners.

$205,000

In total, Cornerstone and its employees donated to 14 food banks.

Cornerstone is proud of the impact our team has on our communities.

Cornerstone is a leading, bipartisan, employee-owned government and public affairs consulting firm dedicated to serving the communities in which we live and work. To better capture our firm’s involvement in our local communities, we are pleased to present our 2023 Community Impact Statement.

CORPORATE GIVING

Cornerstone engages in charitable giving to support various organizations and programs important to our team members.

$150,000

In 2023, the firm contributed just over to through charitable giving initiatives and sponsorship opportunities.

150 organizations

EMPLOYEE-DIRECTED SUPPORT & VOLUNTEERISM

$1,000 annually

Cornerstone'sCommunityEngagementProgramprovideseach employeewith tosupportnon-profit organizationsandcharitiesoftheirchoosing.

Throughthisprogram,wesupportabroadsetofnational organizations,causesandinitiatives,includinghomelessness, education,foodinsecurity,diversity,disasterrelief,medicalresearch, veteran’sbenefits,publichealth,animalrescueandmore.

Cornerstoneencouragesitsemployeestobeactiveintheir communitiesandserveinleadershipandvolunteerpositions.Our teammembershavededicatedthousandsofhoursgivingbackto thoseinneed.

www.cgagroup.com

Since 2002, Cornerstone has contributed more than to local and national causes.

$1.86 million

2023 SERVICE INITIATIVE

The power of service is at the heart of our philosophy, model and approach. For our 2023 Service Initiative, Cornerstone employee owners across our state offices and in DC each identified a local organization to support through a dedicated day of service. Our teams across the country always enjoy coming together to set aside time and make an impact on their local communities and those in need, and Cornerstone looks forward to continuing the Service Initiative tradition for years to come.