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</o:shapelayout></xml><![endif]--></head><body lang=EN-IE link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'>Client Committee,<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'>Lise & I have discussed this and we believe we should follow Sharon / Sidley’s suggestions below AND retain the highlighted / bracketed language.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'>Greg / Maarten, please provide any concerns (if they exist) with the above ASAP.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'>Thanks,<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'>Jonathan<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D;mso-fareast-language:EN-US'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0cm 0cm 0cm'><p class=MsoNormal><b><span lang=EN-US>From:</span></b><span lang=EN-US> Flanagan, Sharon [mailto:sflanagan@sidley.com] <br><b>Sent:</b> 18 April 2016 01:33<br><b>To:</b> Client Committee <cwg-client@icann.org><br><b>Subject:</b> [client com] ICANN Bylaws on Budget - DT-O Input Needed<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>Dear All,</span><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>ICANN Legal is proposing the following edits to Sections 22.4 and 22.5 and Annex F. Can DT-O confirm these edits are acceptable or identify any concerns? We thought #1 and #2 looked ok; however, we understand “uninterrupted” was discussed by DT-O. ICANN Legal explained their concern with “uninterrupted” below: <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:10.5pt;color:black'>“Uninterrupted could be read to signal a technical SLA that the minute to minute (or second to second) performance of IANA functions will always be “uninterrupted”. While that is clearly what our team strives for (and we do not have complaints as far as I’m aware of regarding our performance levels), we should avoid technical SLA language to move to what we understood the intention to be, that there not be gaps in funding that put the fact of performance of the IANA functions at risk. Then whatever technical agreements there are on how that service will be delivered should be housed elsewhere.”<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>One alternative that should meet the concern raised by ICANN Legal, while also covering the concept of no interruptions is below:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:black'>“to ensure performance of those IANA functions and PTI in the future <span style='background:yellow;mso-highlight:yellow'>is not interrupted due to lack of funding</span>”</span><span lang=EN-US style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>With respect to #3, Sidley proposed language to try and capture the DT-O request. ICANN Legal’s edits are reflected as a redline to our proposed language. Please advise if this captures the concept being requested by DT-O, which is also below. Also, is the bracketed language necessary?<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>Thanks,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'>Sharon<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='color:#1F497D'>PROPOSED EDITS TO 22.4, 22.5 AND ANNEX F<o:p></o:p></span></b></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoListParagraph style='margin-left:180.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b><u><span lang=EN-US style='color:#1F497D'>ICANN Legal Proposed Edits to Section 22.4(f)</span></u></b><span lang=EN-US style='color:#1F497D'>:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:180.0pt'><span lang=EN-US>“To maintain ongoing operational excellence and financial stability of the IANA functions (so long as they are performed by ICANN or pursuant to contract with ICANN) and PTI, ICANN shall be required to plan for and allocate funds to <a name="_cp_text_1_32"><u><span style='color:blue'>ICANN’s performance of</span></u></a> the IANA functions and <a name="_cp_text_1_33"><u><span style='color:blue'>to</span></u></a> PTI<a name="_cp_text_1_34"><u><span style='color:blue'>,</span></u></a> as applicable<a name="_cp_text_1_35"><u><span style='color:blue'>,</span></u></a> that are sufficient to cover <a name="_cp_text_2_36"><s><span style='color:red'>the </span></s></a>future expenses and contingencies to ensure <a name="_cp_text_2_37"><s><span style='color:red'>uninterrupted</span></s></a><a name="_cp_text_1_38"></a><u><span style='color:blue'>continuous</span></u> performance of those IANA functions and PTI in the future.”<o:p></o:p></span></p><p class=MsoNormal style='margin-left:144.0pt'><span lang=EN-US><o:p> </o:p></span></p><p class=MsoListParagraph style='margin-left:180.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span lang=EN-US><span style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b><u><span lang=EN-US style='color:#1F497D'>ICANN Legal Proposed Edits to Annex F(1)(f)</span></u></b><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal style='margin-left:180.0pt'><span lang=EN-US>“Notwithstanding any other principle listed above, prevents ICANN, in its responsibility to fund the operations of the IANA functions, from initiating activities that <a name="_cp_text_2_57"><s><span style='color:red'>are</span></s></a><a name="_cp_text_1_58"><u><span style='color:blue'>remain</span></u> </a>subject to community consideration (or for which that community consultation has not concluded)<a name="_cp_text_1_59"><u><span style='color:blue'> with respect to the applicable IANA Budget</span></u></a>, including without limitation, preventing implementation of any contentious <a name="_cp_text_2_60"><s><span style='color:red'>expenditures</span></s></a><a name="_cp_text_1_61"><u><span style='color:blue'>expenditure</span></u> </a>or undertaking any contentious <a name="_cp_text_2_62"><s><span style='color:red'>actions</span></s></a><a name="_cp_text_1_63"><u><span style='color:blue'>action</span></u> </a>that <a name="_cp_text_2_64"><s><span style='color:red'>were</span></s></a><a name="_cp_text_1_65"><u><span style='color:blue'>was</span></u> </a>the subject of the IANA Budget that was rejected by the EC <a name="_cp_text_2_66"><s><span style='color:red'>and</span></s></a><a name="_cp_text_1_67"><u><span style='color:blue'>that</span></u> </a>triggered the need for the Caretaker IANA Budget.”<span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal style='margin-left:144.0pt'><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoListParagraph style='margin-left:180.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span lang=EN-US style='color:#1F497D'><span style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b><u><span lang=EN-US style='color:#1F497D'>Current Draft Language – Section 22.4(b)(i)</span></u></b><span lang=EN-US style='color:#1F497D'>:<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:162.0pt;text-indent:36.0pt'><span lang=EN-US>Separately and in addition to the general ICANN planning process, <a name="_cp_text_1_11"><u><span style='color:blue'>ICANN shall require</span></u> </a>PTI <a name="_cp_text_2_12"><s><span style='color:red'>shall</span></s></a><a name="_cp_text_1_13"><u><span style='color:blue'>to</span></u> </a>prepare and submit to the PTI Board a proposed annual operating plan and budget for <a name="_cp_text_1_14"><u><span style='color:blue'>PTI’s performance of</span></u> </a>the IANA functions for the next fiscal year (“<b>PTI Budget</b>”). <a name="_cp_text_1_15"><u><span style='color:blue'>ICANN shall require</span></u> </a>PTI <a name="_cp_text_2_16"><s><span style='color:red'>shall</span></s></a><a name="_cp_text_1_17"><u><span style='color:blue'>to</span></u> </a>consult with the Supporting Organizations and Advisory Committees<span style='background:yellow;mso-highlight:yellow'>[, as well as the Registries Stakeholder Group, the IAB and RIRs,</span>] during the PTI Budget development process, and shall seek public comment on the draft PTI Budget prior to approval of the PTI Budget by PTI. <a name="_cp_text_2_18"><s><span style='color:red'>The</span></s></a><a name="_cp_text_1_19"><u><span style='color:blue'>ICANN shall require PTI to submit the</span></u> </a>PTI Budget <a name="_cp_text_2_20"><s><span style='color:red'>shall be submitted </span></s></a>to ICANN as <a name="_cp_text_1_21"><u><span style='color:blue'>an</span></u> </a>input prior to and for the purpose of being included in the proposed Operating Plan (as defined in <u>Section 22.5(a)</u>) and ICANN Budget.<span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal style='margin-left:144.0pt'><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:180.0pt'><span lang=EN-US style='color:#1F497D'>This draft language attempts to capture this language in the attached DT-O document, modified to align with comparable language relating to the ICANN Budget:<o:p></o:p></span></p><p class=MsoNormal style='margin-left:180.0pt'><span lang=EN-US>“Separately and in addition to the general ICANN planning process, PTI shall prepare and submit to the PTI Board a proposed operating plan and budget for the IANA functions for the upcoming planning cycle. Such proposed operating plan and budget shall provide appropriate information to enable a consultation process allowing for broad community engagement and input, including appropriate steps for addressing such community input. The proposed operating plan and budget for the IANA functions, resulting from such process, shall be submitted to ICANN as input prior to and for the purpose of being included in the proposed ICANN operating plan and budget, itself then subject to a broad consultation process, including appropriate steps for addressing community input.”<span style='color:#1F497D'><o:p></o:p></span></span></p><p class=MsoNormal style='margin-left:144.0pt'><span lang=EN-US style='color:#1F497D'><o:p> </o:p></span></p><p class=59b759a3-ab1f-4afe-a103-b432f0192d76><span lang=EN-US> <o:p></o:p></span></p><p><span lang=EN-US>****************************************************************************************************<br>This e-mail is sent by a law firm and may contain information that is privileged or confidential.<br>If you are not the intended recipient, please delete the e-mail and any attachments and notify us<br>immediately.<br><br>****************************************************************************************************<o:p></o:p></span></p></div></body></html>