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</v:background></xml><![endif]--><div class=WordSection1><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'>Dear all, <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'>The notes, recordings and transcripts for the CWG </span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D'>RFP3</span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'> Call on </span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D'>26</span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'> January are available here: </span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="https://community.icann.org/pages/viewpage.action?pageId=51416945">https://community.icann.org/pages/viewpage.action?pageId=51416945</a></span><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#1F497D'>NOTES:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Calibri",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>RFP 3 Meeting - 26 January 2015</span><span style='font-size:9.0pt;font-family:"Calibri",sans-serif;color:windowtext'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Agenda<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>1. Welcome<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>2. Roll Call<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Attendance will be taken from AC room<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>On audio only: Siva<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>3. Review Structural Analysis - Contract Co.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>See <a href="https://docs.google.com/document/d/1KXYKuFKfPADgF3U0WmruLPrwhm8y3yHv160Lphz3-X8/edit?usp=sharing%20">https://docs.google.com/document/d/1KXYKuFKfPADgF3U0WmruLPrwhm8y3yHv160Lphz3-X8/edit?usp=sharing</a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Entity Status of Contract Co.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Survey did not reveal many areas of convergence<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Objective to flesh out details of contract co. regardless of whether the principle of contract co. is supported at the end of the day<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Does non-profit corporation status require specific resources or could it be a 1$ company i.e. how well does it need to be funded? No particular minimum funding requirements (no statutory requirements), at least in the US. Not-profit does not make it cannot make money - in a US context it mainly refers to the fact that it does not have shareholders and does not return profit to third parties. Not-profit typically has a public interest purpose, which could also be in the form of a membership organization (for the benefit of its members). <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• A non-profit first needs to be established as a corporation - what is the timeframe to move from a corporation to a not-for-profit corporation (501C status)? As it incorporates it is immediately characterized as a not-for-profit. Needs specific approval and apply for tax exempt status. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• How does this compare to a limited liability corporation? All corporation provide limited liability. A limited liability corporation is always for profit - lighter weight structure for a typical corporation (for example, units compared to shares)<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Jurisdiction<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Diversity of jurisdiction would be satisfied by having it in another jurisdiction than California. Suggested jurisdiction is Delaware which is set up to provide a home for many corporations. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Delaware law is set up to be easily adopted by third parties - allow for standard aspects of setting up a corporation.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• All registry agreements are signed under California law - could be a reason to maintain Contract Co. in the US. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Membership<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Contract Co. would have no members<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>Relationship to ICANN<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Independent of ICANN<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Indemnification - contemplated in the contract, IANA Operator would indemnify Contract. Co. Would that mean that ICANN would be funding its opponents case without any limitations? Normally parties will bear their own costs - only in exceptional cases this may be different. Indemnification does not mean you can act with impunity. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Relationship to MRT<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• If MRT is a committee of Contract Co, this could be problematic. - was one of the suggestion, not necessarily a recommendation<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Bylaws of Contract Co would specify it would take its direction from MRT<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Should MRT be Board of Contract Co? Entities should be separate to avoid empire building. However, would it be possible to keep MRT within the same bounds as Contract Co.? How would MRT institute itself? MRT could be the board and bylaws could restrict actions of MRT - could be as effective as any other set of restrictions to avoid overreaching of board. Could address some issues, but might create others? Consider pros and cons of structuring it this way.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• RFP would be most labor intensive task for MRT but would only occur periodically.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Organizational Documentation<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Contract Co would have Articles of Incorporation and Bylaws to make its limited purpose clear - not able to act outside its limited remit. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Any decisions that would need to be made would be specified in the Bylaws<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Running of RFP would fall to the MRT<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Transparency <o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Contract Co would function in a fully transparent manner<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>Accountability<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Accountable to MRT; board members subject to recall; performance subject to review as well as budget. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Composition of Board<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Board will be as small as allowed by relevant corporate law.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• May want to consider staying away from paying board members - but further advice may be needed.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Only motivation is to carry out limited tasks of Contract Co and take direction from MRT.<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Staff would be as small as possible<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Meetings<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Conducted primarily by phone and web<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Term lengths / limits<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Staggered, term limited<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>How will decisions be made<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Decisions will be made by the MRT and adopted by the Board of Contract Co. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Support needs<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Little or no staff - delegate daily functions to CSC, MRT or MRT secretariat<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• May require a web-site as well as email and email lists<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>When would the Board meet<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• As rarely as possible consistent with legal requirements<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Funding<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Same as MRT<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Capture<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Safeguards must be in place to avoid capture<o:p></o:p></span></p><p class=MsoNormal style='margin-left:.5in'><span style='font-size:9.0pt'>• Capture shouldn't be defined by economic interests as registries are expected to have a specific interest in the IANA function<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt'>Further legal advice will be needed to assess viability of Contract Co. option. - any suggestions for legal counsel are welcome.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;color:#262626'><o:p> </o:p></span></p></div></body></html>