[ga] Funding the DNSO

[DannyYounger@cs.com]

Dear Vany,

One solution regarding long-term funding for the DNSO that has already been 
put forth is incorporated in the appendices of the .pro contract (reprinted 
below):
http://www.icann.org/tlds/agreements/pro/registry-agmt-appg-11mar01.htm

This approach may potentially be incorporated in other upcoming registry 
contracts.
------------------------------

4. Community Refund

For each fiscal twelve-month period (the "Community Refund Period") beginning 
in the term after RegistryPro has fully repaid its investors and declared and 
issued dividend payments to its shareholders, RegistryPro shall issue a 
"Community Refund," as described below. RegistryPro shall be deemed to have 
declared and issued a dividend payment to the extent retained earnings of the 
Company exceed three times its total investment.

The total "Community Refund" will be calculated as follows:

During each Community Refund Period, RegistryPro will calculate the 
percentage of all new .pro domain name registrations associated with Registry 
Services that were sponsored by a shareholder of RegistryPro, which also 
operates as an ICANN-Accredited Registrar as defined in the Registry 
Agreement. Such percentage will be multiplied by RegistryPro's net income 
derived from the Registry Services during such Community Refund Period to 
arrive at the Community Refund.

Example: If the total number of new domain name registrations in a community 
refund period were 300,000 and 50,000 had been registered by the shareholders 
of RegistryPro, 16.667% (50,000/350,000) of the net income (after interest, 
taxes, depreciation, amortization and dividend) derived from Registry 
Services would be available to be paid as a community refund.

The calculation of the Community Refund will be approved by the RegistryPro 
Board of Directors no later 120 calendar days after the audit for such 
accounts has been completed for such Community Refund Period. The refund will 
be distributed no later than 90 calendar days following approval by the Board 
of Directors, unless an extension is needed to review proposals from groups 
requesting such funds.

The RegistryPro Board of Directors shall review the proposals and shall 
determine the recipients and amounts of distributions from the refund. The 
distributions shall be made for the promotion of the management and 
deployment of the Internet in the public interest and may include:

Support of the DNSO. 
Support for additional arbitration mechanisms. 
Consumer-focused domain name education programs. 
Support for ICANN policies. 
Bridging the Digital Divide. 

Each year beginning after the completion of the initial Community Refund 
Period, RegistryPro will report, according to Appendix U, on the 
distributions made from the Community Refund.




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