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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black">Dear Mike and all:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black">Inspection is a statutory right that attaches to a person with the status of a member, but would be “merely” a right given in the Bylaws to the Empowered Community.&nbsp;
 But either way, the enforcement mechanism would be the same.&nbsp; Whether it’s a right granted by statute, or a right validly granted in the Bylaws, we understand that, should enforcement be needed, the CCWG proposes that Empowered Community must go through an
 Empowered Community IRP, and then eventually to court or Board recall, if necessary.&nbsp; (In the remote event going to court were necessary, the argument before the court would be framed somewhat differently depending on whether one is in the statutory/member
 context, versus the bylaws-granted third-party-right context, but the Empowered Community should have a winning argument in either case.)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black">If the right to inspect is given to the Empowered Community rather than to the individual Decisional Participants, it’s not clear to us (AdlerColvin) whether the
 CCWG intends that an individual Decisional Participant acting alone would have the right to direct Empowered Community action (similar to the mechanism for the Empowered Community designating SO and AC directors), or whether the CCWG intends that there would
 a some sort of group decision process, with thresholds for decisions, etc. (as with other Empowered Community powers).&nbsp; If the right to inspect is given to the individual Decisional Participants directly, then the Empowered Community is only engaged for enforcement
 of that right, and the question of how the Empowered Community would be authorized to invoke the inspection right would not arise.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black">Hope that’s helpful.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black">Rosemary<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">Rosemary E. Fei</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">Adler &amp; Colvin</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">235 Montgomery Street, Suite 1220</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">San Francisco, CA 94104</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">415/421-7555 (phone)</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">415/421-0712 (fax)</span><span style="color:black"><br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">rfei@adlercolvin.com</span><span style="font-size:11.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">
<br>
</span><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">www.adlercolvin.com</span><span style="font-size:11.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">
</span><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:black">Adler &amp; Colvin is a San Francisco Green Business certified by the City and County of San Francisco. Please consider the environment before you print this email.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black"><o:p>&nbsp;</o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:&quot;Tahoma&quot;,&quot;sans-serif&quot;">From:</span></b><span style="font-size:10.0pt;font-family:&quot;Tahoma&quot;,&quot;sans-serif&quot;"> Holly Gregory
<br>
<b>Sent:</b> Tuesday, January 26, 2016 2:25 PM<br>
<b>To:</b> Chartier, Mike S; Rosemary E. Fei<br>
<b>Cc:</b> CCWG Accountability; Mathieu Weill; thomas@rickert.net; León Felipe Sánchez Ambía; Bernard Turcotte; Sidley ICANN CCWG; ICANN-Adler<br>
<b>Subject:</b> RE: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p>&nbsp;</o:p></p>
<p class="MsoNormal">It seems to me, Mike, that there is a trade-off. The SOs and ACs will have the right to seek inspection without undertaking the escalation process of getting the Sole Designator -- or as we like to call it the Empowered Community --to act
 to make the request and that is significant. If the right was given to the Sole Designator/Empowered Community directly, the ACs /SOs would need to petition the Sole Designator at the outset to request the information. But either way, enforcement is available
 through the IRP process, such that any abuses by the Board can be redressed.<br>
<br>
HOLLY J. GREGORY<br>
Partner and Co-Chair<br>
Global Corporate Governance &amp; Executive Compensation Practice<br>
<br>
Sidley Austin LLP<br>
787 Seventh Avenue<br>
New York,&nbsp;NY 10019<br>
&#43;1 212 839 5853<br>
<a href="mailto:holly.gregory@sidley.com">holly.gregory@sidley.com</a><br>
<a href="http://www.sidley.com">www.sidley.com</a><br>
&nbsp;SIDLEY AUSTIN LLP<br>
&nbsp;<br>
<br>
<br>
-----Original Message-----<br>
From: Gregory, Holly <br>
Sent: Tuesday, January 26, 2016 5:18 PM<br>
To: 'Chartier, Mike S'; Rosemary E. Fei (<a href="mailto:rfei@adlercolvin.com">rfei@adlercolvin.com</a>)<br>
Cc: CCWG Accountability; Mathieu Weill; <a href="mailto:thomas@rickert.net">thomas@rickert.net</a>; León Felipe Sánchez Ambía; Bernard Turcotte<br>
Subject: RE: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<br>
<br>
I should have copied Rosemary on my original email to you; apologies.<br>
<br>
HOLLY J. GREGORY<br>
Partner and Co-Chair<br>
Global Corporate Governance &amp; Executive Compensation Practice<br>
<br>
Sidley Austin LLP<br>
787 Seventh Avenue<br>
New York,&nbsp;NY 10019<br>
&#43;1 212 839 5853<br>
<a href="mailto:holly.gregory@sidley.com">holly.gregory@sidley.com</a><br>
<a href="http://www.sidley.com">www.sidley.com</a><br>
&nbsp;SIDLEY AUSTIN LLP<br>
&nbsp;<br>
<br>
<br>
-----Original Message-----<br>
From: Chartier, Mike S [<a href="mailto:mike.s.chartier@intel.com">mailto:mike.s.chartier@intel.com</a>]
<br>
Sent: Tuesday, January 26, 2016 5:12 PM<br>
To: Gregory, Holly<br>
Cc: CCWG Accountability; Mathieu Weill; <a href="mailto:thomas@rickert.net">thomas@rickert.net</a>; León Felipe Sánchez Ambía; Bernard Turcotte<br>
Subject: Re: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<br>
<br>
Thanks,<br>
But if the right was given to the sole designator, could they go directly to court to force inspection?<br>
And in the new case, would inspection be possible in court after escalation, or is the only recourse to remove board members.<br>
<br>
On Jan 27, 2016, at 5:49 AM, Gregory, Holly &lt;<a href="mailto:holly.gregory@sidley.com%3cmailto:holly.gregory@sidley.com">holly.gregory@sidley.com&lt;mailto:holly.gregory@sidley.com</a>&gt;&gt; wrote:<br>
<br>
Great question Mike,<br>
<br>
Individual ACs and SOs will be able to enforce their inspection rights through the IRP. And if the Board abuses the process by denying appropriate requests, the ACs and SOs can also petition the Empowered Community to use its escalation capabilities up to an
 IRP based on that abuse and potentially escalate further to enforcement and/or Board removal. Language could be added to clarify this if the CCWG-ACCT thinks helpful.<br>
<br>
Holly and Rosemary<br>
<br>
<br>
HOLLY J. GREGORY<br>
Partner and Co-Chair<br>
Global Corporate Governance &amp; Executive Compensation Practice<br>
<br>
Sidley Austin LLP<br>
787 Seventh Avenue<br>
New York, NY 10019<br>
&#43;1 212 839 5853<br>
<a href="mailto:holly.gregory@sidley.com%3cmailto:holly.gregory@sidley.com">holly.gregory@sidley.com&lt;mailto:holly.gregory@sidley.com</a>&gt;<br>
<a href="http://www.sidley.com">www.sidley.com</a>&lt;<a href="http://www.sidley.com/">http://www.sidley.com/</a>&gt;<br>
[<a href="http://www.sidley.com/files/upload/signatures/SA-autosig.png">http://www.sidley.com/files/upload/signatures/SA-autosig.png</a>]&lt;<a href="http://www.sidley.com/">http://www.sidley.com/</a>&gt; SIDLEY AUSTIN LLP<br>
<br>
<br>
From: <a href="mailto:accountability-cross-community-bounces@icann.org%3cmailto:accountability-cross-community-bounces@icann.org">
accountability-cross-community-bounces@icann.org&lt;mailto:accountability-cross-community-bounces@icann.org</a>&gt; [<a href="mailto:accountability-cross-community-bounces@icann.org">mailto:accountability-cross-community-bounces@icann.org</a>] On Behalf Of Chartier,
 Mike S<br>
Sent: Tuesday, January 26, 2016 4:08 PM<br>
To: Bernard Turcotte<br>
Cc: ACCT-Staff (<a href="mailto:acct-staff@icann.org%3cmailto:acct-staff@icann.org">acct-staff@icann.org&lt;mailto:acct-staff@icann.org</a>&gt;); Accountability Community<br>
Subject: Re: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<br>
<br>
Thanks.<br>
I must have been wrong (Holly could set me straight).<br>
I thought a difference was the Sole Designator would be able to enforce the inspection right directly in court.<br>
<br>
From: Bernard Turcotte [<a href="mailto:turcotte.bernard@gmail.com">mailto:turcotte.bernard@gmail.com</a>]<br>
Sent: Tuesday, January 26, 2016 8:20 AM<br>
To: Chartier, Mike S &lt;<a href="mailto:mike.s.chartier@intel.com%3cmailto:mike.s.chartier@intel.com">mike.s.chartier@intel.com&lt;mailto:mike.s.chartier@intel.com</a>&gt;&gt;<br>
Cc: Accountability Community &lt;<a href="mailto:accountability-cross-community@icann.org%3cmailto:accountability-cross-community@icann.org">accountability-cross-community@icann.org&lt;mailto:accountability-cross-community@icann.org</a>&gt;&gt;; ACCT-Staff (<a href="mailto:acct-staff@icann.org%3cmailto:acct-staff@icann.org">acct-staff@icann.org&lt;mailto:acct-staff@icann.org</a>&gt;)
 &lt;<a href="mailto:acct-staff@icann.org%3cmailto:acct-staff@icann.org">acct-staff@icann.org&lt;mailto:acct-staff@icann.org</a>&gt;&gt;<br>
Subject: Re: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<br>
<br>
Mike,<br>
<br>
Given what is proposed, individual decisional participants in the Empowered Community being able to make inspection requests (as per their own inter processes) directly to the Board, actually goes well beyond what the CCWG was originally requesting, escalation
 process for inspection (petition, support, community forum etc.), it was felt it was no longer necessary to provide inspection rights to the Sole Designator.<br>
<br>
Hope the answers your question.<br>
<br>
Cheers.<br>
<br>
B.<br>
<br>
On Mon, Jan 25, 2016 at 9:23 PM, Chartier, Mike S &lt;<a href="mailto:mike.s.chartier@intel.com%3cmailto:mike.s.chartier@intel.com">mike.s.chartier@intel.com&lt;mailto:mike.s.chartier@intel.com</a>&gt;&gt; wrote:<br>
I must have missed in the minutes (or the meeting itself), but just for process sake, could you point me where the conclusion was reached to remove the right of inspection from the sole designator?<br>
<br>
From: <a href="mailto:accountability-cross-community-bounces@icann.org%3cmailto:accountability-cross-community-bounces@icann.org">
accountability-cross-community-bounces@icann.org&lt;mailto:accountability-cross-community-bounces@icann.org</a>&gt; [<a href="mailto:accountability-cross-community-bounces@icann.org%3cmailto:accountability-cross-community-bounces@icann.org%3e">mailto:accountability-cross-community-bounces@icann.org&lt;mailto:accountability-cross-community-bounces@icann.org&gt;</a>]
 On Behalf Of Bernard Turcotte<br>
Sent: Monday, January 25, 2016 11:12 AM<br>
To: Accountability Community &lt;<a href="mailto:accountability-cross-community@icann.org%3cmailto:accountability-cross-community@icann.org">accountability-cross-community@icann.org&lt;mailto:accountability-cross-community@icann.org</a>&gt;&gt;; ACCT-Staff (<a href="mailto:acct-staff@icann.org%3cmailto:acct-staff@icann.org">acct-staff@icann.org&lt;mailto:acct-staff@icann.org</a>&gt;)
 &lt;<a href="mailto:acct-staff@icann.org%3cmailto:acct-staff@icann.org">acct-staff@icann.org&lt;mailto:acct-staff@icann.org</a>&gt;&gt;<br>
Subject: [CCWG-ACCT] CCWG - Recommendation 1 - Final version for legal review<br>
<br>
​<br>
All,<br>
<br>
​Per the request of the co-chairs we are publishing the final draft version of Annex 1 for legal review.<br>
<br>
This version has been generated from the conclusion of the second reading document with minor edits by staff.<br>
<br>
As such you will find attached 2 versions, Word and PDF of the marked up text.<br>
<br>
Once this legal review is completed (48 hours - 16:00UTC Wednesday), results of the review will be published on this list, a final version will be generated and posted for final CCWG comments.​<br>
<br>
​Thank You.<br>
<br>
B​ernard Turcotte<br>
ICANN Staff Support for CCWG<br>
<br>
<br>
<br>
<br>
<br>
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<a href="https://mm.icann.org/mailman/listinfo/accountability-cross-community">https://mm.icann.org/mailman/listinfo/accountability-cross-community</a><o:p></o:p></p>
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