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<DIV><FONT face=Arial color=#0000ff size=2>
<DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff><SPAN
class=628514115-23112005>Dear all,</SPAN></FONT></DIV>
<DIV dir=ltr align=left><FONT face=Arial color=#0000ff><SPAN
class=628514115-23112005></SPAN></FONT> </DIV>
<DIV dir=ltr align=left><SPAN class=628514115-23112005><FONT face=Arial><FONT
color=#0000ff><SPAN class=027480518-23112005>BulkRegister</SPAN> supports
this statement</FONT></FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=628514115-23112005><FONT face=Arial
color=#0000ff></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=628514115-23112005><SPAN
class=027480518-23112005><FONT face=Arial color=#0000ff>thank you,
</FONT></SPAN></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=628514115-23112005><SPAN
class=027480518-23112005><FONT face=Arial color=#0000ff>Donna
McGehee</FONT></SPAN></SPAN></DIV></DIV></FONT></DIV>
<BLOCKQUOTE dir=ltr style="MARGIN-RIGHT: 0px">
<DIV></DIV>
<DIV class=OutlookMessageHeader lang=en-us dir=ltr align=left><FONT
face=Tahoma size=2>-----Original Message-----<BR><B>From:</B>
owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] <B>On
Behalf Of </B>Bhavin Turakhia<BR><B>Sent:</B> Tuesday, November 22, 2005 9:53
PM<BR><B>To:</B> 'Nevett, Jonathon';
registrars@gnso.icann.org<BR><B>Subject:</B> [registrars] PLEASE confirm your
support of this Statement<BR><BR></FONT></DIV>
<DIV dir=ltr align=left><SPAN class=647145102-23112005><FONT face=Arial
color=#0000ff size=2>Hi everyone.</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=647145102-23112005><FONT face=Arial
color=#0000ff size=2></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=647145102-23112005><FONT face=Arial
color=#0000ff size=2>Just to be clear, apart from posting this to the comments
yourself, please also send a confirmation to Jon or myself that you support
this statement. Since I will be shortly sending this statement to the ICANN
Board as an official statement from the constituency</FONT></SPAN></DIV>
<DIV dir=ltr align=left><SPAN class=647145102-23112005><FONT face=Arial
color=#0000ff size=2></FONT></SPAN> </DIV>
<DIV dir=ltr align=left><SPAN class=647145102-23112005><FONT face=Arial
color=#0000ff size=2>bhavin</FONT></SPAN></DIV><BR>
<BLOCKQUOTE dir=ltr
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px">
<DIV class=OutlookMessageHeader lang=en-us dir=ltr align=left>
<HR tabIndex=-1>
<FONT face=Tahoma size=2><B>From:</B> owner-registrars@gnso.icann.org
[mailto:owner-registrars@gnso.icann.org] <B>On Behalf Of </B>Nevett,
Jonathon<BR><B>Sent:</B> Tuesday, November 22, 2005 7:30 PM<BR><B>To:</B>
registrars@gnso.icann.org<BR><B>Subject:</B> [registrars] Registrars
Statement on .com agreement<BR></FONT><BR></DIV>
<DIV></DIV>
<DIV class=Section1>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">Registrar
Colleagues:<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">The Registrar Constituency .com
Working Group set up by Bhavin has drafted the following statement.
Please feel free <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> sign on <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the statement and <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> post it <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the ICANN website -- <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> post comments, please send an e-mail
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName>: <FONT color=navy><SPAN style="COLOR: navy"><A
title=mailto:settlement-comments@icann.org
href="mailto:settlement-comments@icann.org">settlement-comments@icann.org</A></SPAN></FONT>.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">Thanks.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">Jon
<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">We, the undersigned registrars,
recommend against ICANN signing the<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">proposed .com Registry
Agreement. The following reflects those
issues<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">that are of foremost concern
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> registrars:<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">1. New
Registry Services <o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">The proposed .com contract locks
ICANN and VeriSign in for three years<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">on a version of the consensus
policy covering the standards and process<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">for consideration of new
registry services. The new registry
services<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">consensus policy process that
recently was approved by the ICANN board<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">is untested, and it is likely
that the ICANN community will need <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName><o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">refine and improve it after it
is implemented. A three year lock will<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">unnecessarily handcuff ICANN and
the ICANN community.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">We recommend the deletion of
Sections 3.1(b)(v)(B) and 3.1(b)(v)(C), and<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">allowing the existing ICANN
policy development and refinement process <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName><o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">be used during the term of the
agreement.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">2. Registry
Agreement Renewal<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">According <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> its own Bylaws and the Memorandum of
Understanding between<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">ICANN and the United States
Department of Commerce, one of ICANN's core<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">missions is <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> promote competition. We understand that
the current .com<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">contract contains a "presumptive
renewal" provision, which by its nature<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">hinders competition. The
proposed .com contract, however, goes much<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">farther than the existing
contract by strengthening the presumptive<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">renewal and termination
provisions on behalf of VeriSign, thereby
making<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">it virtually impossible for
VeriSign <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> lose the .com registry
and<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">impossible <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> reap the benefits of competition.
VeriSign should be<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">appointed as the
administra<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName>r of the .com registry, not its
owner.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">We recommend reverting from
Section 4.2 of the proposed .com agreement<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on"><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">to</SPAN></FONT></st1:PersonName><FONT
face=Arial size=3><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> the
renewal terms of Section 25 of the current .com agreement,
which<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">requires a six month review of a
"Renewal Proposal" provided by VeriSign<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">and only under terms that are in
"substantial conformity with the terms<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">of registry agreements between
ICANN and opera<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName>rs of other open
TLDs.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">. ." ICANN also
should strengthen the termination provisions
currently<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">contained in Section 6.1 of the
proposed agreement by using the relevant<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">text from Sections 16(B-E) of
the current agreement.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">3. Registry
Fees<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">The proposed .com contract would
permit VeriSign <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> unilaterally
raise<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">registration fees by 7% per
year. The existing .com contract and all<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">gTLD registry agreements (other
than the .net agreement with VeriSign,<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">which was entered
in<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> without community input in violation of
ICANN's<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">Bylaws) require the registries
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> cost-justify any price increases.
In<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">an industry where the economics
suggest that fees should be going down<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">when there is competition, it is
particularly troublesome and<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">anti-competitive <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> grant a monopolist or a single source provider
the<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">unilateral right <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> increase costs without
justification.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">Unfortunately, these fee
increases would result in cost increases <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName><o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">individual registrants. We
note that in the recent competitive process<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">for .net, VeriSign significantly
lowered its registry fees. There is no<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">reason for unilateral cost
increases for the larger .com registry.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">We recommend that the Board
delete the current text of Section<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">7.3(d)(ii) and replace it with
Section 22(A) of the current .com<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">agreement requiring VeriSign
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> justify and ICANN <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> approve any<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">proposed fee increase. If
there is a dispute between ICANN and VeriSign<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">over a cost increase, ICANN
should have the right <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> seek competitive<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">price proposals from other
registry opera<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName>rs <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> ensure that the
ICANN<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">community receives the benefits
of competition.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">4. New ICANN
Fees<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">ICANN and VeriSign propose a new
ICANN fee that would be assessed on<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">VeriSign and passed on
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the registrars. This fee would result
in<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">excess of approximately $150
million dollars <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> ICANN, and would be
an<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">end run around the existing
ICANN budget approval process. As
proposed,<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">ICANN staff has removed an
important check on the ICANN budget process.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">All ICANN fees that impact
registrants should be subject <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the ICANN<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">budget approval process and
should not only be the subject of<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">negotiations between VeriSign
and ICANN. <o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">In addition <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the changes suggested in number 3 above, we
recommend the<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">removal of Sections 7.3(g-h) in
the proposed contract. Any transaction<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">fees that ICANN needs
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> collect from registrars (and hence
registrants)<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">should be assessed through the
current transaction fees charged by ICANN<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on"><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">to</SPAN></FONT></st1:PersonName><FONT
face=Arial size=3><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">
registrars and be subject <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> the existing budget approval
process.<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">While we understand the desire
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> finalize the litigation, it should
not<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">be done so without a sufficient
review process nor at the expense of<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">major tenets of ICANN's
mission. In its current form, it is a bad<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">settlement for ICANN, the ICANN
community, and the public-at-large. We,<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">therefore, urge the ICANN Board
<st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> take advantage of the six
month<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">review of a "Renewal Proposal"
contemplated in the existing .com<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">agreement, which doesn't expire
until November 2007. The Board should<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">use this time <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> review the complicated contracts in their
entirety,<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">have a public comment period
commensurate with the importance of the<o:p></o:p></SPAN></FONT></P>
<P class=MsoPlainText><FONT face=Arial size=3><SPAN
style="FONT-SIZE: 12pt; FONT-FAMILY: Arial">issue, and make the changes
necessary <st1:PersonName
style="BACKGROUND-POSITION: left bottom; BACKGROUND-IMAGE: url(res://ietag.dll/#34/#1001); BACKGROUND-REPEAT: repeat-x"
w:st="on">to</st1:PersonName> improve the
agreement.<o:p></o:p></SPAN></FONT></P></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>