FYI From: Erika Mann <erika@erikamann.com> Sent: Wednesday, October 24, 2018 4:08 PM To: Drazek, Keith <kdrazek@verisign.com> Subject: [EXTERNAL] Fwd: IMPORTANT: INFORMATION CONCERNING THE RESERVE FUND Dear Keith - as discussed right now! Kind regards, Erika ---------- Forwarded message ---------- From: Erika Mann <erika@erikamann.com<mailto:erika@erikamann.com>> Date: Wed, Oct 24, 2018 at 1:27 PM Subject: Fwd: IMPORTANT: INFORMATION CONCERNING THE RESERVE FUND To: Heather Forrest <haforrestesq@gmail.com<mailto:haforrestesq@gmail.com>>, "Austin, Donna" <Donna.Austin@team.neustar<mailto:Donna.Austin@team.neustar>>, Rafik Dammak <rafik.dammak@gmail.com<mailto:rafik.dammak@gmail.com>> Dear Heather, Donna, Rafik - I'm forwarding you the information I send to the CCWG AP today concerning an upcoming Board resolution about the replenishment of the reserve fund. I'm a bit concerned to send this information to the whole GNSO, simply because it then will be on public record immediately and the Board will not pass the resolution before tomorrow. Erika ---------- Forwarded message ---------- From: Erika Mann <erika@erikamann.com<mailto:erika@erikamann.com>> Date: Wed, Oct 24, 2018 at 1:20 PM Subject: IMPORTANT: INFORMATION CONCERNING THE RESERVE FUND To: ccwg-auctionproceeds@icann.org<mailto:ccwg-auctionproceeds@icann.org> Dear CCWG AP colleagues - Cherine Chalaby asked for a meeting this morning, October 24, to inform me as CCWG AP Co-Chair about a resolution the Board will pass tomorrow morning, October 25, concerning the replenishment of the Reserve Fund. Maarten Botterman attended the meeting and Chris Disspain was present for a short period at the beginning of the meeting. To replenish the Reserve Fund, the Board resolution will request a contribution from ICANN ORG on an annual basis (8 years), total $32 Million, and an immediate contribution from Auction Proceed, total $36 Million. These two amounts seen together would replenish the Reserve Fund (in 8 years) to the agreed height. Cherine was interested in informing us ahead of the decision and I mentioned, that we were expecting such a move and, as far as this is concerned, we're not surprised to see the Board passing this resolution tomorrow and that we do appreciate his approach in informing us ahead of passing the resolution. Reminder: The 'Document for Public comment – Replenishment Strategy for the ICANN Reserve Fund' (open date, March 6th, 2018/closed April 25th, 2018) mentioned the following about the replenishment of the fund in relation to the topics mentioned above: https://www.icann.org/en/system/files/files/proposed-reserve-fund-replenishm... § Contribution from ICANN Org: Future adopted budgets could be made to provide a contribution to the Reserve Fund on an annual basis. This would require ICANN Org to plan each fiscal year for expenses to be lower than funding by an amount explicitly designated for the purpose of replenishing the Reserve Fund. Given ICANN’s funding constraints, contributions from ICANN org to the Reserve Fund replenishment result from a reduced allocation of ICANN’s resources to its on-going activities, in order to produce a surplus that is allocated to the Reserve Fund. Such allocation is and needs to continue being the subject of community engagement and input. § Auction Proceeds: ICANN currently has US$ 104 million collected from auctions that were held as the mechanism of last resort to resolve string contention in the new gTLD program (including investment returns). This amount excludes US$ 132 million relating to the auction of the .WEB string net of auction fees Kind regards, Erika Barcelona, October 24, 2018