[council] Continued Operations Instrument for new gTLDs

["Bruce Tonkin" <Bruce.Tonkin@xxxxxxxxxxxxxxxxxx>]

Hello All,

Note that a key component of new gTLDs, is that a new gTLD will be
stable and that registrants in a new gTLD are protected in the event
that a new gTLD applicant no longer operates the domain.

The draft registry agreement in the Draft Applicant Guidebook contains
the following provisions in Specification 8 - that requires a financial
instrument to guarantee funds to continue to operate the registry for a
further 3 years.

I point this out - as it is an additional cost once a TLD is awarded -
that funds would need to be allocated for the Continued Operations
Instrument.

Regards,
Bruce Tonkin


CONTINUED OPERATIONS INSTRUMENT

1. The Continued Operations Instrument shall 

(a) provide for sufficient financial resources to ensure
the continued operation of the basic registry functions related to the
TLD set forth in Section [__] of the Applicant Guidebook posted at [url
to be inserted upon finalization of Applicant Guidebook] (which is
hereby incorporated by reference into this Specification 8) for a period
of three (3) years following any termination of this Agreement on or
prior to the fifth anniversary of the Effective Date, and 

(b) shall be in the form of either (i) an irrevocable standby letter of
credit,
or (ii) an irrevocable cash escrow deposit, each meeting the
requirements set forth in Section [__]
of the Applicant Guidebook posted at [url to be inserted upon
finalization of Applicant
Guidebook] (which is hereby incorporated by reference into this
Specification 8).