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<div style="direction: ltr;">Pail, I don’t really think it matters which, provided there is consistency. That said, signature of contract seems to me to make the most sense since that date is readily available to anyone by looking at the contract,which will,be
published on the ICANN website in a designated space, whereas identifying the auction date or delegation date, after the event, likely requires more digging. </div>
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<div id="divRplyFwdMsg" dir="ltr"><font face="Calibri, sans-serif" style="font-size:11pt" color="#000000"><b>From:</b> Gnso-newgtld-wg <gnso-newgtld-wg-bounces@icann.org> on behalf of McGrady, Paul D. <PMcGrady@taftlaw.com><br>
<b>Sent:</b> Thursday, June 11, 2020 8:23:57 PM<br>
<b>To:</b> Emily Barabas <emily.barabas@icann.org>; Julie Hedlund <julie.hedlund@icann.org>; gnso-newgtld-wg@icann.org <gnso-newgtld-wg@icann.org><br>
<b>Subject:</b> Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 11 June at 20:00 UTC for 90 Minutes</font>
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<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black">Hi All,</span></p>
<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black"> </span></p>
<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black">So, 3 years from what? The auction, the contract signing, the delegation of the domain name, the launch of the TLD, etc.?</span></p>
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<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black">Best,</span></p>
<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black">Paul</span></p>
<p class="x_MsoNormal"><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:black"> </span></p>
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<p class="x_MsoNormal"><b>From:</b> Gnso-newgtld-wg <gnso-newgtld-wg-bounces@icann.org>
<b>On Behalf Of </b>Emily Barabas<br>
<b>Sent:</b> Thursday, June 11, 2020 9:39 AM<br>
<b>To:</b> Julie Hedlund <julie.hedlund@icann.org>; gnso-newgtld-wg@icann.org<br>
<b>Subject:</b> Re: [Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 11 June at 20:00 UTC for 90 Minutes</p>
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<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">Dear all, </p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">As a follow-up to the agenda and specifically regarding item 2 -- there is some proposed recommendation/implementation guidance text in the Working Document on page 6 that we will reference on the call. It draws on Jeff’s proposal below
and input from WG members on the last call. For easy reference, I’m including it by email, as well:</p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"><i><u><span style="color:black">Recommendation xx</span></u></i><i><span style="color:black">: If an applicant qualifies for Applicant Support and is part of a contention set that is resolved through an auction of last resort, a bid credit,
multiplier, or other similar mechanism must apply to the bid submitted by that applicant. </span></i><i></i></p>
<p class="x_MsoNormal"><i> </i></p>
<p class="x_MsoNormal" style="margin-left:.5in"><i><u><span style="color:black">Implementation Guidance xx</span></u></i><i><span style="color:black">: Research should be conducted in the implementation phase to determine the exact nature and amount of the
bid credit, multiplier, or other mechanism described in recommendation xx. </span></i><i></i></p>
<p class="x_MsoNormal"><i> </i></p>
<p class="x_MsoNormal" style="margin-left:.5in"><i><u><span style="color:black">Implementation Guidance xx</span></u></i><i><span style="color:black">: If the Applicant getting Applicant Support prevails in an auction, there should be restrictions placed on
the Applicant from assigning the Registry Agreement, and/or from any Change of Control for a period of no less than three (3) years. This restriction is in place to prevent gaming of the applicant support program whereby an applicant immediately transfers
its ownership of a registry to a third party in exchange for any form of financial gain. However, legitimate assignments (e.g., changing of ownership due to death or retirement, etc., assignments to subsidiaries, etc.) shall be permitted. All assignments
after such time shall be governed under the then-current Registry Agreement standard provisions; provided that any Assignment or Change of Control after the third year, but prior to the seventh (7th) year, shall require the applicant to repay the full amount
of financial support received through the ASP Program plus an additional ten percent (10%).</span></i><i></i></p>
<p class="x_MsoNormal"><i> </i></p>
<p class="x_MsoNormal"><i><u><span style="color:black">Rationale</span></u></i><i><span style="color:black">: By definition, applicants qualified to receive applicant support have demonstrated that they have limited financial resources available to apply for
a TLD. Applicants with limited financial resources are expected to be disadvantaged when participating in auctions of last resort. The Working Group recommends increasing the chances of applicants qualified to receive applicant support winning at auction by
applying a bid credit, multiplier, or other similar mechanism for bids submitted by such applicants to increase their chances of success at auction. The Working Group recommends that in the implementation phase, appropriate expertise and research should be
leveraged to determine the exact nature and amount of the bid credit, multiplier, or other similar mechanism. To reduce the risk of gaming, the Working Group suggests additional restrictions on assigning the Registry Agreement and/or Change of Control for
those Registry Operators that have benefited from a bid credit, multiplier, or similar mechanism.</span></i><i></i></p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal">Kind regards,</p>
<p class="x_MsoNormal">Emily</p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"> </p>
<div style="border:none; border-top:solid #B5C4DF 1.0pt; padding:3.0pt 0in 0in 0in">
<p class="x_MsoNormal"><b><span style="font-size:12.0pt; color:black">From: </span>
</b><span style="font-size:12.0pt; color:black">Gnso-newgtld-wg <<a href="mailto:gnso-newgtld-wg-bounces@icann.org">gnso-newgtld-wg-bounces@icann.org</a>> on behalf of Julie Hedlund <<a href="mailto:julie.hedlund@icann.org">julie.hedlund@icann.org</a>><br>
<b>Date: </b>Wednesday, 10 June 2020 at 20:39<br>
<b>To: </b>"<a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a>" <<a href="mailto:gnso-newgtld-wg@icann.org">gnso-newgtld-wg@icann.org</a>><br>
<b>Subject: </b>[Gnso-newgtld-wg] Proposed Agenda - New gTLD Subsequent Procedures PDP WG - Thursday, 11 June at 20:00 UTC for 90 Minutes</span></p>
</div>
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<p class="x_MsoNormal"> </p>
</div>
<p class="x_MsoNormal"><span style="color:black">Dear all,</span></p>
<p class="x_MsoNormal" style="font-variant-caps:normal; orphans:auto; text-align:start; widows:auto; word-spacing:0px">
<span style="color:black"> </span></p>
<p class="x_MsoNormal" style="font-variant-caps:normal; orphans:auto; text-align:start; widows:auto; word-spacing:0px">
<span style="color:black">Please find below the proposed agenda for the call on </span><b>Thursday, 11 June<span style="color:black"> 2020 at
</span>20<span style="color:black">:00 UTC </span></b><span style="color:black">for<span class="x_apple-converted-space"> </span></span><b>90<span style="color:red">
</span><span style="color:black">minutes.</span></b></p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"><b><span style="color:black">Proposed Agenda:</span></b></p>
<p class="x_MsoNormal"> </p>
<ol start="1" type="1" style="margin-top:0in">
<li class="x_MsoNormal" style="mso-list:l0 level1 lfo3">Review Agenda/Updates to Statements of Interest</li><li class="x_MsoNormal" style="color:black; mso-list:l0 level1 lfo3">Applicant Support (multipliers at auction) page 6 in 2.1 Auctions: Mechanisms of Last Resort & 2.2 Private Resolution of Contention Sets (Including Private Auction): <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__docs.google.com_document_d_1kUlmZH8nxWTgfcRluA5FxLheMm4XhhOwkRt7om52aQU_edit-3Fusp-3Dsharing&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=mBQzlSaM6eYCHFBU-v48zs-QSrjHB0aWmHuE4X4drzI&m=R9Mshqg1kmw9TridibBxd-wQQNwZO3SvIqvoqQ8zKDo&s=hCYwhyZ-nwSAscSLPJ94r21JcSam_esG__UH09T4eTQ&e=" title="https://docs.google.com/document/d/1kUlmZH8nxWTgfcRluA5FxLheMm4XhhOwkRt7om52aQU/edit?usp=sharing">https://docs.google.com/document/d/1kUlmZH8nxWTgfcRluA5FxLheMm4XhhOwkRt7om52aQU/edit?usp=sharing
[docs.google.com]</a> and proposed language from Jeff Neuman – see below for latest</li><li class="x_MsoNormal" style="mso-list:l0 level1 lfo3">Review "Can't Live With" comments on package 4: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__docs.google.com_document_d_1Hh8Wj3IwXvi91Am1k4Zoooct2zmPOmVe1pLmjQLuQuo_edit-3Fusp-3Dsharing&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=mBQzlSaM6eYCHFBU-v48zs-QSrjHB0aWmHuE4X4drzI&m=R9Mshqg1kmw9TridibBxd-wQQNwZO3SvIqvoqQ8zKDo&s=60CVa6FSkucxqNjPwFk7CHhZ4ALW1deN54cLS8IJFwc&e=">https://docs.google.com/document/d/1Hh8Wj3IwXvi91Am1k4Zoooct2zmPOmVe1pLmjQLuQuo/edit?usp=sharing
[docs.google.com]</a>: </li><li class="x_MsoNormal" style="mso-list:l0 level1 lfo3">AOB</li></ol>
<p class="x_MsoNormal"><span style="color:black"> </span></p>
<p class="x_MsoNormal"><span style="color:black">If you need a dial out or would like to submit an apology, please email </span><a href="mailto:gnso-secs@icann.org" title="mailto:gnso-secs@icann.org">gnso-secs@icann.org</a><span style="color:black">.</span></p>
<p class="x_MsoNormal"><span style="color:black"> </span></p>
<p class="x_MsoNormal"><span style="color:black">Kind regards,</span></p>
<p class="x_MsoNormal">Julie</p>
<p class="x_MsoNormal">---</p>
<p class="x_MsoNormal"><b><span style="color:black">Applicant Support (multipliers at auction), proposed revised language:</span></b></p>
<p class="x_MsoNormal"> </p>
<p class="x_MsoNormal"><span style="color:black">Re: Highlighted language: How do we word allowing assignments/change of control through the normal course of business (changing corporate entities, death or retirement of owners, etc.). If we just use the standard,
you can assign to parents or subs, then that will allow reverse triangular mergers which gets around the whole no assignment/change of control rules. </span></p>
<p class="x_MsoNormal"><span style="color:black"> </span></p>
<p class="x_MsoNormal"><i><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#548235">“If the Applicant getting Applicant Support prevails in an auction, there should be restrictions placed on the Applicant from assigning the Registry
Agreement, and/or from any Change of Control for a period of no less than </span></i><i><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#0070C0">three (3) years</span></i><i><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#548235">.
This restriction is in place to prevent gaming of the applicant support program whereby an applicant immediately transfers its ownership of a registry to a third party in exchange for any form of financial gain. <span style="background:yellow">However, legitimate
assignments (e.g., changing of ownership due to death or retirement, etc., assignments to subsidiaries, etc.) </span></span></i><i><u><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#0070C0; background:yellow">shall be permitted</span></u></i><i><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#548235">.
All assignments </span></i><i><span style="font-size:12.0pt; font-family:"Times New Roman",serif; color:#0070C0">after such time shall be governed under the then-current Registry Agreement standard provisions; provided that any Assignment or Change of Control
after the third year, but prior to the seventh (7<sup>th</sup>) year, shall require the applicant to repay the full amount of financial support received through the ASP Program plus an additional ten percent (10%). </span></i></p>
<p class="x_MsoNormal"> </p>
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