The current .org registry agreement between ICANN and VeriSign, Inc., states:

5.1.4 No later than 90 days prior to the Expiration Date, [VeriSign] will pay to ICANN or ICANN's designee the sum of US $5 million, to be used by ICANN in it sole discretion to establish an endowment to be used to fund future operating costs of the non-profit entity designated by ICANN as successor operator of the .org registry. [VeriSign] agrees that such funds, once paid to ICANN, will become the property of ICANN and/or ICANN's designee, and that [VeriSign] will have no ownership or other rights or interests in such funds or in the manner in which they are used or disbursed.

NeuStar’s proposal for the reassignment of the .org registry, that is, our plan for a seamless and stable transition of the registry from VeriSign and the on-going management of the registry, is not contingent upon receipt of the VeriSign endowment. Our global Internet registry infrastructure, staff, and experience is more than adequate to meet all of the expectations and milestones described throughout this proposal.

As a privately held corporation, not a noncommercial entity, NeuStar does not qualify for the funds under the terms explicitly outlined in the current .org registry agreement between ICANN and VeriSign, Inc. Further, NeuStar does not intend to take any measures to change that status (i.e., creating a new entity or arbitrarily entering into a partnership) to seek qualification for these funds.

We find it important to note that we are in financial position to meet the needs set forth by ICANN to administer the .org registry. Our experience managing Internet registries, combined with our unique experience transitioning an existing registry from VeriSign, enables us to forecast our expense to a detailed level, and we are confident we can manage the name space without aid from the endowment. NeuStar has made a substantial investment in our existing, proven registry infrastructure, and in developing channel relationships that we will leverage if we are chosen as the successor operator. The transition and ongoing stability of the .org registry will not be put in jeopardy awaiting transfer of funds from VeriSign or ICANN.

In conclusion, based on our current funding and the breadth of our experience, NeuStar can effectively manage the .org registry without seeking qualification for the endowment.

If so, describe in detail how you propose to use this endowment. Include the commitments you propose to make about the uses to which the endowment would be put. Explain why those uses are consistent with the smooth, stable transition and operation of the .org TLD for the benefit of current and future .org registrants.

Not applicable.

If you propose to seek to qualify to receive the endowment funds, explain why you believe that your proposed use is consistent with the terms of the endowment.

Not applicable.