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EXHIBIT 10.12
Letter dated September 13, 1995 regarding Amendment No. 4 to the Cooperative
Agreement
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134-DMG-95
September 13, 1995
▇▇. ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
National Science Foundation
Division of Networking and Communications
Research, Room 1175
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
SUBJBCT: Imposition of Fees for Second Level Domain Name Registrations
REFERENCE: Cooperative Agreement No. NCR-9218742
Dear ▇▇. ▇▇▇▇▇▇▇▇:
Network Solutions Incorporated request National Science Foundation approval to
begin charging a $50 per year fee for the registration and maintenance of
second level domain names in the "COM", "ORG", "NET", "EDU", and "GOV" domains
currently funded through the referenced Cooperative Agreement. As described in
the enclosed policy statement, registration charges for new domain names will
apply to domain name applications received on and after 12:01 A.M., Thursday,
September 14, 1995. Renewal charges will apply to all registered domain names
as described in the enclosed Fee for Registration of Domain Name policy
statement.
If approved, effective 12:01 A.M., September 14, 1994, and subject to the terms
and conditions of both letter and the Cooperative Agreement, as modified,
Network Solutions will accept all responsibility for the management and
administration of Registration Services/Information Services. Network
Solutions' responsibilities include:
- Provide the necessary staffing to continue, and improve, Registration
Services
- Provide the necessary staffing to provide Information Services to the
academic and R&E communities
- Provide the necessary staffing to collect and process the fees associated
with Registrations and Renewals
- Provide all required facilities, hardware, software, training, and other
support required of the Registration Services staff
- Fully fund the Scout Headquarters through a subcontract with the University
of Wisconsin
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- Fund the support services of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ through a subcontract directly
with him
- Fund the services of ▇▇▇ ▇▇▇▇▇▇, as the IANA. Support for ▇▇▇ ▇▇▇▇▇▇ will
require modifications to his current subcontract with Network Solutions,
and to his financial relationship with ARPA.
- Fund the continued development and refinement of RWhois
If approved, effective 12:01 AM., September 14, 1994, Network Solutions
proposes that the cost-plus-fixed-fee financial relationship between Network
Solutions and the Foundation will end. From that date forward, Network
Solutions will support, with the fees collected, the services described in this
letter and the elements of the Third Year Plan previously approved, and will
not seek additional financial support from the Foundation, except for payment
of the "EDU" and "GOV" domain names as described in the enclosed policy, so
long as fee collecting continues.
Network Solutions understands that all funds collected constitute "program
income" under the terms of the Cooperative Agreement. Of the funds collected,
Network Solutions will retain 70 percent as consideration for the services
provided. The remaining 30 percent will be available as an Internet Support
Fund.
The Internet Support Fund will be used to offset the costs which the Foundation
and other agencies are incurring for the intellectual infrastructure which
underlies the operation of the Internet. Because the requirements for program
income expenditures will probably be dynamic and, in some cases unpredictable,
those expenditures will be subject to the direction of an advisory panel
consisting of representatives of the Internet community.
As stated in the enclosed policy statement, Network Solutions understands any
changes to the fee structure will require the Foundation's approval.
In recognition of, and consideration for, the long term investments required in
connection with this proposal, Network Solutions Incorporated request the
Foundation's approval of registration fees and application of 30% of collected
revenue toward support of the intellectual infrastructure underpinning the
Internet to be effective for the balance of the Cooperative Agreement period of
performance, or March 31 1998, whichever is longer.
If you have any questions of a technical nature, please contact ▇▇▇▇ ▇▇▇▇▇▇▇ at
(▇▇▇) ▇▇▇-▇▇▇▇ (Internet: ▇▇▇▇▇@▇▇▇▇▇▇.▇▇▇). For matters related to the
Cooperative Agreement, please contact ▇▇▇▇▇ ▇▇▇▇▇▇ at (▇▇▇) ▇▇▇-▇▇▇▇ (Internet:
▇▇▇▇▇@▇▇▇▇▇▇.▇▇▇).
Sincerely,
▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Contracts Administrator
cc: ▇▇▇▇▇▇ ▇▇▇▇▇▇ (w/one copy of enclosure)
Encl: Fee for Registration of Domain Names
Return to the table of contents.
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FEE FOR REGISTRATION OF DOMAIN NAMES
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1. INTRODUCTION
1.1 SUMMARY
Since March 1, 1993, the National Science Foundation has funded the
administration of the "COM", "ORG", "NET", "EDU", and "GOV" and root
domains through a Cooperative Agreement with Network Solutions, the
InterNIC Registrar. Beginning not later than September 13, 1995, the
Registrar will require direct payment from domain name applicants and
holders for registration and maintenance of the domain names at the
second level of the five listed top-level domains. The funds received
from those fees will replace the funding provided by the National Science
Foundation, and will provide "program income" which will offset costs
related to the intellectual infrastructure of the Internet.
1.2 BACKGROUND
Originally, the Internet began as a research experiment and network known
as the ARPANET, which supported the exchange of files and data among
government contractors and researchers. As the TCP/IP suite was
developed in the early 1980s, the Domain Name System (DNS) emerged as the
replacement system to the original ARPANET hosts.txt mechanism. The
high-level structure of names used by DNS eventually evolved into five
world-wide generic domains ("COM", "ORG", "NET", "EDU", and "INT"), two
U.S. only generic domains ("MIL" and "GOV"), and country code domains
(e.g., "US" for the United States, "AU" for Australia, etc.)
The exponential growth of the Internet, due mostly to the connecting of
commercial organizations to the Internet over the past couple years, has
had a directly proportional affect on the registration activity of the
Registrar. The increased activity, with the corresponding growth of
operating costs, have resulted in funding requirements exceeding the
National Science Foundation's budget. In addition, it is appropriate
that Internet users, instead of the U.S. Federal Government, pay the
costs of domain name registration services. Accordingly, the Registrar
will begin charging a fee for the registration and maintenance of domain
names in the "COM", "ORG", "NET", "EDU", and "GOV" domains.
1.3 GUIDELINES, PROCEDURES, AND POLICIES
The guidelines, procedures, and policies that are currently
operative with regard
to the Domain Name System will not change (RFCs 1031 through 1035, RFC
1480, and RFC 1591).
2. DEFINITIONS
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Applicant
The party or organization, such as a company or service provider, that is
applying for a new domain name.
Domain
Any root-level domain (i.e. . within the "COM", "ORG", "NET", "EDU", and
"GOV" root domains. (Note: This does not include domains "COM", "ORG",
"NET", "EDU", and "GOV" which exist under a country domain. For example,
"COM.AU" is the commercial subdomain in Australia)
Contact
The person responsible for a particular domain or aspect of a particular
domain. There are four types of contacts: administrative, technical,
zone, and billing contacts. These contacts are listed in the InterNIC's
WHOIS database. Communication with contacts is via the email address that
is listed in this database.
Domain Name
The operational name used by TCP/IP applications that identifies an
organization connected to the Internet.
DNS
The Domain Name System handles mapping from hostnames to Internet
addresses. Configuration information from the InterNIC Registration
Services database is released into DNS three times a week (Monday,
Wednesday, and Friday at 5 p.m. EST)
WHOIS
A database utility that allows queries of domain records which include
company, contact, and operational information from the InterNIC
Registration Services database.
New Domain Name
Names that have not yet been entered into the InterNIC Registration
Services database, or names that have expired and have been removed from
the InterNIC database and made available for reissue to an applicant at a
later time.
Existing Domain Name
Names that are registered within the InterNIC Registration Services
database and accessible through WHOIS.
Internet Service Provider
Commercial companies that provide connectivity between the domain name
holder and the Internet, and that assist with domain name registrations.
3. CHARGES
The Registrar will apply two types of charges with respect to domain names.
The first is a "Registration Fee" (or initial fee) for new domain names; the
other is a "Maintenance Fee" (or recurring fee) for existing domain names that
are already registered. These initial and recurring fees for each domain name
cover the costs for an unlimited number of update requests, including changes
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in domain name, for each domain name. The Registrar requires that all
applications continue to be sent electronically, and that the payments are made
by any of the methods outlined below. Payment must be in U.S. dollars.
(Please note that "▇▇-▇▇▇▇.▇▇▇▇" domains are not subject to Registration Fees.)
The Registrar will announce any future price changes, which are subject to
National Science Foundation approval, by notice on "▇▇-▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇."
3.1 NEW DOMAIN NAMES
3.1.1 REGISTRATION FEE
The Registration Fee for a new domain name is $100.00. New
domain names are valid for two years from the date that the
Registrar activates the domain name. The Registrar will remove
domain names from the database upon the request of the domain
name holder; however, the Registration Fee is non-refundable.
Domain Names deleted from the database will be available for
reuse as described in Section 3.3.
3.1.2 PAYMENT OF FEE
The Registrar will activate domain names upon request, on a
first-come, first-serve basis. Payment of the Registration Fee
is due by 12:00 PM (Eastern Time) on the 30th day after the
activation date, or on the last work day preceding the due date
if the 30th day falls on a weekend or holiday. The Registrar
will delete the domain name from the database on the day after
the due date if payment is not received. Domain Names deleted
from the database will be available for reuse as described in
Section 3.3.
3.2 EXISTING DOMAINS
3.2.1 MAINTENANCE FEE
For all registered domain names, there will be an Maintenance
Fee of $50.00 per year per domain name, due upon the anniversary
date of the domain name activation. This annual fee will keep
the domain name valid for one year. Payment must be made in
advance on an annual basis. The payment is non-refundable
3.2.2 PAYMENT OF FEE
Payment of the Maintenance Fee is due by 12:00 PM (Eastern Time)
on the anniversary of the activation date, or the last workday
preceding the anniversary date if the anniversary date falls on
a weekend or holiday. The Registrar will delete the domain name
from the database on the day after the due date if payment is
not received. Domain Names deleted from the database will be
available for reuse as described in Section 3.3.
3.2.3 NOTIFICATION OF MAINTENANCE FEE DUE
The Registrar will provide 60 days advance notice, by email, to
the domain name billing contact (or administrative contact, in
the absence of a separately identified billing contact), with a
copy to the administrative, technical, and zone contacts, that
the Maintenance Fee is due on the anniversary of the activation
date. In addition, email notification will also be sent to the
address that is advertised via DNS within the Start of
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Authority (SOA) record.
The Registrar will send reminder notices 30 days and 15 days
prior to the activation anniversary date, unless it receives
payment. If the Registrar does not receive payment by the due
date, it will remove the name from the DNS and notify the
contacts that such action is being taken. Domain Names deleted
from the database will be available for reuse as described in
Section 3.3.
The Registrar will not attempt to notify the contacts by any
means other than email. It is the responsibility of the
administrative, billing, technical, and zone contacts to keep
their records up to date in the InterNIC Registration Services'
database.
3.3 DOMAIN NAME DELETIONS
Domain names deleted from the database will become available for reuse
after a 60 day "hold" period. The purpose of the 60 day period is to
minimize the probability the next holder of that domain name will
receive messages intended for the previous holder.
3.4 SPECIAL INITIAL GRACE PERIOD
To allow domain name applicants and holders time to prepare for the new
billing procedures, the Registrar will grant an initial grace period of
90 days on all domain name registration transactions. All new
applications during the three calendar months following the
implementation of fees will have 90 days to pay for their domain names.
All domain names with annual maintenance fees due during the three
calendar months following implementation of fees will have 90 days to
pay for their domain names. All new domain name applications received
before the implementation date will be exempt from the initial domain
name Registration Fee; however, they will be charged the Maintenance
Fee on each activation anniversary date.
4. INVOICING AND PAYMENT
The Registrar requires that all applications be submitted electronically to
▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇, and that the payment be made by any of the methods
described in this section. All fees are to be paid in U.S. currency.
Facsimile numbers and U.S. postal addresses are:
FAX:
(▇▇▇) ▇▇▇-▇▇▇▇ (InterNIC Registration Services)
U. S. Mail:
InterNIC Registration Services
P.O. Box 1656
Herndon, VA 22070
USA
4.1 SPECIAL PAYMENTS
4.1.1 "EDU" AND "GOV" DOMAINS
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The National Science Foundation will pay the fees associated
with domain name registrations and maintenance for the academic
institutions registered in the "EDU" domain. The National
Science Foundation will pay the fees, on an interim basis,
associated with domain name registrations and maintenance for
the U. S. Federal Government agencies registered in the "GOV"
domain..
4.1.2 INTERNET SERVICE PROVIDERS
As an alternative to domain name by domain name billing, the
Registrar will allow Internet Service Providers to establish
and maintain special accounts against which each registration
and maintenance action will be debited. The Registrar will
require each Internet Service Provider using this optional
payment method to maintain a positive balance in their account.
The Registrar will not process domain name applications and
renewals if there is an insufficient balance in the respective
account.
4.2 INVOICES
Except as set forth in Section 4.1, the Registrar will batch process
and electronically send invoices each night. The invoices will include
domain names registered the preceding day.
4.3. CHECKS AND MONEY ORDERS
All checks and money orders should be made out to "InterNIC
Registration Services." For single domain registrations, the applicant
must list the domain name on the check. For multiple domain
registrations, except in the special cases described in Section 4.1
above, the applicant must list on the payment template the domain names
for which payment is being made.
Insufficient payments or failure to indicate the domain name(s)
associated with the payment will result in a returned check. Returned
checks will not change the due date for payment. Failure to resubmit
proper payment by the due date will result in the loss of the domain
name.
4.4 CREDIT CARDS
Except in the special cases described in Section 4.1 above,
organizations may pay the Registration and Maintenance Fees by American
Express, MasterCard, or VISA. The Card Number, Expiration Date, and
Name, as it appears on the card, must be supplied with each charge on
the hardcopy InterNIC Registration Services payment form which will be
attached to the electronic domain name application acknowledgment. The
payment form is also available from the InterNIC Registration Services
Help Desk, or electronically at
▇▇▇://▇▇.▇▇▇▇▇▇▇▇.▇▇▇/▇▇▇▇▇▇▇▇▇/▇▇▇-▇▇▇▇▇▇▇▇.▇▇▇. For security reasons,
InterNIC will not accept credit card information submitted by email.
For single domain registrations, the applicant must list the domain name
on the form. For multiple domain registrations, except in the special
cases described in Section 4.1 above, the applicant must indicate on the
payment template the domain names for which payment is being made.
The Registrar can not process payments unless the domain names are
identified, and will not process payments which are insufficient to pay
for the cost of domain name registration or renewal. The Registrar
will return improperly submitted payments to the domain name holder.
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Payments returned because of improper submission will not change the
due date for payment. Failure to resubmit proper payment by the due
date will result in the loss of the domain name. Credit card payments
for domain name applications and renewals may be faxed to the number
listed above.
4.5 SUBMISSION BY U.S. POSTAL MAIL
Checks, money orders, and credit card information may be sent to
InterNIC Registration Services by U.S. Postal Mail to the address
listed in Section 4 above.
4.6 FUTURE METHODS OF PAYMENT
The Registrar is considering other payment methods, such as submission
by electronic means. Of particular concern is the security associated
with electronic traffic over the Internet. The Registrar plans to
phase electronic payment implementation after security analyses are
complete.
4.7 FORM OF PAYMENT NOT ACCEPTED
The Registrar will not accept currency, coin, purchase orders, or
stamps as payment. The Registrar will not accept credit card
information over the telephone or sent by email.
4.8 TAXES
Because the InterNIC is selling a service from the Commonwealth of
Virginia, Registration Fees and Maintenance Fees are exempt from sales
tax.
5. DOMAIN NAME REGISTRATION FUNDS
All funds collected as the result of charging a fee for domain name
registration are "program income." The Registrar will use 70 percent of the
income to offset the costs of providing InterNIC Registration Services.
The Registrar will dedicate 30 percent of the funds to offset the costs which
are associated with the intellectual infrastructure which underlies the
operation of the Internet. Areas of the infrastructure to be supported will be
discussed in the InterNIC Registrar's Annual Report and Project Plan to the
National Science Foundation, and will be subject to oversight by an advisory
panel. The panel will consist of representatives from the Internet community.
A public accounting will be made of the expenditures toward the Internet
infrastructure.
6. SUGGESTIONS AND COMPLAINTS
Billing questions should be sent to ▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇. Comments should be
addressed to ▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇.▇▇▇.
