Section 2 – Business Capabilities and Plan

D12. The second section of the Registry Operator's Proposal (after the "General Information" section) is a description of the registry operator's Business Capabilities and Plan. This section must include a comprehensive, professional-quality business plan that provides detailed, verified business and financial information about the registry operator. The topics listed below are representative of the type of subjects that will be covered in the Business Capabilities and Plan section of the Registry Operator's Proposal.
[INSTRUCTION: ICANN will extensively review and analyze this section of the Registry Operator's Proposal. The content, clarity, and professionalism of this section will be important factors in ICANN's evaluation of applications. We strongly recommend securing professional assistance from financial and management consultants to aid in the formulation of your business plan, in securing the necessary sources of financing, and in preparation of this section.]

D13. The Business Capabilities and Plan section should consist of at least the following:

D13.1. Detailed description of the registry operator's capabilities. This should describe general capabilities and activities. This description also offers the registry operator an opportunity to demonstrate the extent of its business and managerial expertise in activities relevant to the operation of the proposed registry. The following items should, at a bare minimum, be covered:

The DotKids, Inc. team is led by Aimee Correnti, as CEO and co-founder. The founding team consists of a group of professionals that include, B&N Consulting, whose founder is a co-author of the current NSI Registry Registrar Protocol. DotKids, Inc. has also teamed up with SARAF Software Solutions, Inc. (http://www.SARAF.com) and Comdisco (http://www.Comdisco.com) . SARAF will be responsible for the software development of the .kids Registry system and all technical support and future enhancements to the system. Comdisco will bring its experience in the disaster-recovery and web hosting arenas to provide the data center and daily operations of the Registry along with the backup and disaster-recovery backup sites. Currently, Comdisco has global presence and provides disaster recovery to about 75% of the fortune 500 companies. They operate one of the largest private networks in the country.

DotKids, Inc. plans are to introduce a “green space” for kids and teens on the Internet by working closely with global children organizations and other industry experts. DotKids, Inc. has already contacted Stephen Balkam, Executive Director of the Internet Content Rating Association (ICRA). DotKids, Inc. will continue discussions with him to implement ICRA as an accredited rating service to assist in creating the value of the .kids TLD. Through ICRA standards, our implementation of this TLD is a vast step forward in addressing one of the largest concerns existing in the world today and that is to provide a safer Internet for children and families.

The Company is also assembling a world-class group of outside Advisors to provide strategic and tactical guidance to the Management Team. To date this group includes Jean Armour Polly, Netmom and ICRA Board member; Donna Rice Hughes, author, Kids Online; COPA Commissioner; Internet safety lecturer and media
spokesperson noted; Nigel Williams of Childnet UK and ICRA Board member; Al MacKay of The Canadian Public Affairs Channel and ICRA Board member; John O’Connor, Professor of English and Cultural Studies at George Mason University; Jennifer Albert; lawyer for Hunton & Williams, Partner on their Litigation, Intellectual Property, and Antitrust Team; Dennis Grabow of the Millenium Investment Corporation; and Susan Defife, former CEO/Founder of Womenconnect.com. In addition, DotKids, Inc. is also assembling a sublevel advisory board consisting of teens and kids from around the world.

D13.1.1. Company information. Date of formation, legal status, primary location, size of staff, formal alliances, references, corporate or other structure, ownership structure.

Business Incorporation date : September 29, 2000

DotKids, Inc.
103 West Broad Street

5^th Floor

Falls Church, VA 22046

Phone# 703-771-3338

DotKids, Inc. is a Delaware C Corporation and currently holds a 7 person management team as noted in section: D13.1.6

Formal Alliances:

SARAF Software Solutions, Inc., (http://www.saraf.com) SARAF Software Solutions, located in Falls Church - Virginia, has over 5 years of Internet application development experience. With its focus on Internet backend applications, and with a
niche in domain registration systems and backend infrastructures, SARAF
offers robust e-solutions to e-business needs.

SARAF will be providing its RegyStar™ product to DotKids, Inc. RegyStar™ will
be customizing DotKids, Inc. with a stable domain registration system that
is scaleable and will easily allow the addition of various other existing
RegyStar™ modules to serve their business model. (Attachment VII-g)

Comdisco, (http://www.comdisco.com) with over 30 years of experience, offers a complete suite of information technology services including business continuity, Web services, network services, and IT Control and Predictability Solutions SM. Comdisco also delivers flexible equipment solutions for key vertical industries and a unique blend of technology services for education, and healthcare organizations. Comdisco will be providing the data center and back up recovery systems. Currently, Comdisco has global presence and they provide disaster recovery to about 75% of the fortune 500 companies. They operate one of the largest private networks in the country.

In implementing the labeling and rating for the, .kids, TLD, DotKids, Inc. will work with an accredited rating agency. Current considerations that are able to provide a global system are The Internet Content Rating Association (ICRA). ICRA is an international, independent, non-profit organization with offices in Washington, D.C, USA and Brighton, UK, that empowers the public, especially parents, to make informed decisions about electronic media by means of an open, objective, content advisory system. This system takes a global approach in providing parents the tools to control without censorship.(Attachment VII-h)

References/Letter of Support: (Attachment VII-f)

· Congressman Frank Wolf , Virginia, U.S.

· Steve Case Family Foundation

· Mario Morino, Morino Institute

· Danni Ashe, Danni’s Hard Drive

· David Holtzman, former CTO of Network Solutions, Inc.

Ownership Makeup:

The current ownership makeup consists of a team of visionaries along side B&N Consulting. As two separately identified groups, they share joint ownership in DotKids, Inc.

Aimee Correnti, David Correnti and Kristen Correnti-Faett; make up the visionaries that have dedicated their time and efforts in pulling together the team and associations for this valued concept.

Contact Information:

Aimee Correnti

102 Governors Drive SW

Lessburg, VA 20175

Phone # 703-771-3338

B & N Consulting, LLP, whose founders are Ban Saraf and Neeran Saraf, provide the operation infrastructure and the technical leadership to this effort.

Contact Information:
Address: 103 West Broad Street
5th. Floor
Falls Church, VA 22046
Phone # 703-538-5666

D13.1.2. Current business operations. Core capabilities, services offered, products offered, duration of provision of services and products.

While DotKids, Inc. is a newly formed company it brings together over 60 years of relevant experiences in establishing successful business operations. Expertise ranging from industry relations, technical innovation, management creativity, marketing and financial stability bring together a team capable of proposing the .kids TLD.

DotKids, Inc.’s core capabilities include:

As Registry –The .kids Registry will be approaching and improving upon many issues of concern existing in today’s Network Solutions, Inc. (NSI) model. DotKids, Inc. team has contacted a number of Registrars to have a better understanding of their business and the pros and cons in the existing NSI Registry model. We feel that .kids Registry team has a clear understanding of these issues. One of the main issues facing the public today in regard to the current NSI Registry model is the lack of consistency and standard in the content and the format of the Whois data from the different registrars. Being a "fat” or “thick" model, the .kids Registry Whois service will provide a solution to that by being the goto Whois server for the complete Whois
information.

Outline of the .kids Registry business model:

- Register domains in the .kids TLD.

- The .kids Registry is based on B2B model providing domain registration services to ICANN Accredited Registrars.

- Provide domain registration services including support to the ICANN Accredited Registrars.

- The .kids Registry will be a “Thick” or “Fat” Registry model where the SLD Holder information will also be stored at the .kids Registry database along with the Registrar information.

- Working with content rating organizations, to encourage domain labeling and rating in combined efforts with an accredited rating organization. The .kids Registry will also store the label/rating data directly from the rating agent in the database.

- Domain registrations will be for a minimum of one year and up to a maximum of 10 years with one-year increments.

- Registration fee – Registrars will be charged $12 per year per registration following the initial roll out period. During this period we recommend a fee structure that will scale down over a 3-month period to handle the “rush” of domain name registrations.

- DotKids, Inc. also plans to work with the IP groups to research ways where their concerns are addressed.

As Labeling/Rating – DotKids, Inc., while not a restricted TLD, targets and caters to a specific market. This user end market will be defined in the application process. By default all domains registered in the .kids TLD will be unrated. By working with the rating organization, the DotKids, Inc. group will be developing an interface with these organizations. The goal is to eliminate unnecessary paper work and also the possibility of fraud. For this reason, we are proposing and will be working aggressively with such organizations to allow us to be notified every time a domain name is newly rated, the rating of a domain is modified, or the rating has been canceled. This direct interaction between the .kids system and other rating organizations’ systems removes the need to have either Registrars or SLD holders as providers of the rating information. DotKids, Inc. will provide a list of rating organizations on our website along with contact information to encourage SLD holders to use this service.

As Software – The introduction of filtering software will also be another factor in encouraging domain holders to rate their content in order to ensure a broader market. The filtering software will be available to ISPs, allowing them to repackage and sell this service under their individual terms and contract lengths. The “sell” will be powered by DotKids, Inc.. Upon choosing this service from the ISP, the users, based on the individual user preferences, will be unable to access .com sites. Their service will only recognize the TLD “.kids”. This service will also include e-mail/chat accounts for minors. To create industry awareness, the initial roll out of this software will be at no cost to the ISP.

As a Brand – Giving parents, guardians, and teachers a globally recognized brand that assures value from a company Where Kids and Teens are Top Level.

As a Company-

To our employees -Creating a highly effective employee recruiting, retention and rewards program such as ownership in the company through stock options, first class benefits, and employee referral programs.

To our customers – Quality service through innovative technology and human points of contact, both of which will provide responsive customer service. In addition, our commitment to excellence through evolving products and customer interaction.

To the global community- To the extent we achieve our business model, we fully intend to reinvest a portion of our revenues back into the community. DotKids, Inc. will support various efforts to assist underprivileged kids and teens by providing educational and technological resources.

D13.1.3. Past business operations/entity history. History, date of formation, legal status/type of entity, initial services, duration of provision of services and products.

DotKids, Inc. consists of a new company formed by the entities as stated in section 13.1.1. The entities joined efforts bringing years of relevant industry experience to implement processes and address one of the largest concerns surrounding the Internet today, children online. In addition, it will provide a solution for expanding the DNS.

The idea of a “green space” through a top level domain, .kids, required months of research and development. For the past twelve months, time was devoted in evaluating existing approaches in addressing children and teen safety while online. During this process, it was determined that none of these existing approaches fully addressed or met the needs of online safety.

During our research we contacted and consulted with a wide range of members of the Internet community relevant to our mission. Including:

§ Stephen Balkam of ICRA

§ Morino Institute

§ Jean Armour Polly, Netmom

§ Donna Rice Hughes

§ AOL Foundation

§ Parry Aftab of Cyberangels

§ Silvertech Industries

§ Headbone Interactive

§ COPA Commission members

§ Debbie Mahoney, SOCUM

In addition to the above names, there are several others that also provided favorable feedback, encouragement and support.

D13.1.4. Registry/database/Internet related experience and activities. Experience with database operation, Internet service provision.

DotKids, Inc. is partnering with two major companies. Comdisco, to provide the daily operations of the .kids Registry system (Comdisco) and SARAF Software Solutions, to provide the .kids Registry software system.

Comdisco has over 30 years of experience, offers a complete suite of information technology services including business continuity, Web services, network services, and IT Control and Predictability Solutions SM. Comdisco also delivers flexible equipment solutions for key vertical industries and a unique blend of technology services for education, and healthcare organizations. Comdisco will be providing the data center and back up recovery systems. Currently, Comdisco has global presence and provides disaster recovery to about 75% of the fortune 500 companies. They operate one of the largest private networks in the country.

SARAF Software Solutions, Inc, has been involved in the domain registration software development arena for over three years. The team has been involved in the development of NSI Registry system, co-authored the RRP protocol and has attended most of the ICANN meetings and closely followed the development of events from the “green-paper”, to the “white-paper” and the present status. SARAF is currently working with a number of ICANN Accredited Registrars to help them in developing and maintaining their domain registration systems (BulkRegister, Virtual Internet, Parava Networks, and used to work with Network Solutions). The SARAF team is one of the few software development companies that has an in-depth knowledge of the domain registration business and the software requirements to implement these business processes/rules.

D13.1.5. Mission. The registry operator's mission and how it relates to expansion into the registry operation field.

The mission of DotKids, Inc. is to incorporate multiple processes to address the issue surrounding minors online. Implementation of the TLD .kids, along with other processes, will give the Internet user confidence that a site is appropriate for minors. Processes for reporting fraudulent or inappropriate activities within this space will be addressed in our model by providing the Internet user a 24x7 report capability to call or e-mail any such activity.

As it relates specifically to the registry operation, DotKids , Inc. is taking an industry friendly approach. The company plans to operate a “Thick” or “Fat” Registry system to promote competition among Registrars. DotKids, Inc. will work with ICANN and supporting constituency groups to assist in addressing and implementing the solutions to the numerous issues relating to Registry operations.

D13.1.6. Management. Qualifications and experience of financial and business officers and other relevant employees. Please address/include past experience, resumes, references, biographies.

See Attached DotKids, Inc. Organizational Chart

Below are biographies for the current Management Team and Officers that highlights areas of expertise and past experiences. Individual resumes and references are available upon request.

Aimee Correnti,Co-Founder and Chief Executive Officer

Aimee Correnti is one of the visionaries of DotKids, Inc. and brings with her over 9 years of experience in management, sales, marketing and operations. She has dedicated the time in research and development over the past 12 months. Aimee’s dedication and commitment has brought together the team to implement the .kids TLD and to act in this position through the proposal efforts. She co-founded and operated Correnti and Company, LLC which was established three years ago. Correnti & Company provided services to an impressive corporate clientele in the Washington, DC area. Specifically providing the following services: special event design, creative presentations for various corporate marketing, promotion and acknowledgements.

Jack Hughes,Chief Financial Officer

Jack Hughes, Interim CFO, brings over 25 years of experience as a Senior Financial Executive in fast growth technology companies. Most recently, Jack was the Senior Vice President and CFO of BTG Inc, a $600 million Information Technology Company based in northern Virginia. While at BTG, Jack managed the merger/acquisition and divestiture program that contributed to the company's dramatic growth during that time. He directed the company's IPO and follow-up offering, which raised over $40 million, and established BTG's senior debt relationship with major commercial banks, which resulted in lines of credit in excess of $150 million. During his career,Jack has participated in the negotiation and consummation of more than 25 M/A transactions.

Neeran Saraf, Chief Technical Officer

Neeran Saraf has over 18 years of experience in computer science, including systems development, analysis and architecture as well as managerial roles. She has been involved in a number of start-up ventures in Northern Virginia and is currently President and Chief Technical Officer of SARAF Software Solutions, a company that specializes in IT assessment and planning, systems design and needs analysis. Neeran has been heavily involved in the domain name registration industry over the last three years and played an integral role in designing and building the NSI shared registry system. She was project manager and co-author of the Registry Registrar Protocol (RRP) which allows Registrars to communicate with the NSI Registry. In addition, Neeran has also actively participated in a number of industry organizations, including the Northern Virginia Technology Council, Greater Washington Board of Trade, Women in Technology, Association for Women in Computing, Women in Technology International and the Netpreneur Program. Neeran holds a bachelor’s degree in computer science from Imperial College, University of London and a Master’s Degree in computer science from George Mason University.

Ban Saraf, Chief Operating Officer

Ban Saraf has co-founded two other IT companies. Her strength in establishing the company's functional infrastructure, ensuring that it's growth plans are consistent with its spatial and financial growth plans. Ban has assisted in establishing and monitoring HR and financial systems within the company. She also assists in the company's marketing through her various industry related organization commitment. She also establishes outreach efforts to assist non-profit organizations' presence on the web. Her bilingual upbringing and multi cultural background, allow her to further investigate various ways to expand the company's presence worldwide. Ban has a BA in International Studies and a MA in Culture and Society.

David Correnti, Vice President of Product Development

David Correnti brought the original vision of the .kids TLD. His experience and training in the Internet Industry relating specifically to connectivity and web hosting sparked the idea to create such an environment. He brings innovative thinking and creative ideas for pipeline products and services to be provided by DotKids, Inc.. David has years of sales experience that enables him to understand the needs and demands of consumers. His demonstrated ability to bring solutions to the issues surrounding any project provides much value to our company. David has proven through his experiences a track record for excellent customer relations and providing quality services.

Kristen Correnti-Faett, Vice President of Marketing/Communications

Kristen Correnti-Faett is also one of the visionaries involved in developing the .kids TLD environment. Kristen has implemented her exceptional talents and design skills through her entrepreneurial endeavors. Her recent experience as co-founder in Correnti & Company, LLC providing special event design, creative presentations for various corporate marketing, promotion and acknowledgements has been another way to display her creative visions. Kristen owned her own retail operation for 8 years where she carried her vision for this business from concept to reality. Her expertise in merchandising, advertising, marketing, and customer satisfaction built a loyal and impressive clientele. She received her Associates Degree in Visual Communications from the Art Institute of Pittsburgh.

Lisa Favis, Vice President of Sales

Lisa Favis has over 12 years of sales, marketing and management experience. Most recently she was the Area Vice President for HQ Global Workplaces, an officing solutions provider. She was in charge of the metropolitan Washington, DC market. During her five years with the company, she raised the revenues from 2 million to over 11 million. She helped manage the acquisition of 4 companies and merger with 2 companies. Lisa assisted in opening 5 new offices locations; expanded 3 locations; co-authored the companies training manuals; conducting sales training seminars; and hired and managed over 70 new employees. Lisa received her BA from George Mason University.

Hunton & Williams, http://www.hunton.com

Hunton and Williams is an International Law Firm with offices located in the United States, Europe and Asia. Their awareness of and respect for cultural differences support their ability to manage the challenges of doing business in the global community. While they are a full service Law Firm, one of their specialties is technology.

Terrence Hammons- http://www.hunton.com/profiles/lawyer_profile.asp?id=257

A member of the Corporate Technology Practice Group in the firm’s McLean office. This Practice focuses on advising entrepreneurs, emerging growth companies, venture capital and technology companies and investment bankers in the technology area with particular emphasis on private equity and corporate securities transactions, including mergers and acquisitions, joint ventures, strategic alliances and corporate finance.

Jennifer Albert- http://www.hunton.com/profiles/lawyer_profile.asp?id=11

Jennifer Albert works for Hunton & Williams’ DC Office. She has represented Internet service providers (ISPs), web site owners/operators and web site developers in connection with various agreements relating to the conduct of business over the Internet, including agreements relating to web site development, web site hosting and maintenance, Internet access, retail web site operations, advertising services, web site hyperlinks, corporate Internet and email use policies, web site privacy policies, shrinkwrap/clickwrap licenses, web site sweepstakes and/or contests policies, content provider licenses, domain name licenses and/or assignments, Internet/online services subscriptions, joint ventures and strategic alliances, research and development, product and software distribution and/or resale, bulletin board/ chat room operator/information and content provider policies, electronic agencies, retail web site sales, data security and disaster recovery and the provision of services from trusted third parties for the authentication and/or certification of digital signatures and encryption keys.

D13.1.7. Staff/employees. Current staff size, demonstrated ability to expand employee base, hiring policy, employee training, space for additional staff.

DotKids, Inc. currently consists of the management team as noted above. Our systems operations, Comdisco, has many locations Internationally and is currently running a $4.1 billion dollar annual operation. To date, DotKids, Inc. is outsourcing our public relations, administrative staff, legal services, and software development departments.

Moving forward into business operations, DotKids, Inc. has considered and projected the appropriate scalability of staffing and space. These specific costs are noted in our financial projections (see attached documentation).

· A Proposed Hiring/Training Policy (attachment VII-a)

D13.1.8. Commercial general liability insurance. Address/include amount of insurance policy, provider of policy, plans for obtaining additional insurance.

DotKids, Inc. plans to obtain a Commercial General Liability (CGL) policy in an appropriate amount of coverage commensurate with the business risks with an umbrella. The CGL policy will include advertising injury insurance coverage, Errors & Omissions coverage, and business interruption insurance coverage.

We are currently in negotiations with Hartford, Travelers, and St. Paul. For Professional liability we are in negotiations with Golf Industries (totally owned by Citi Group) and Employer's Reinsurance.

D13.2. Business plan for the proposed registry operations. This section should present a comprehensive business plan for the proposed registry operations. In addition to providing basic information concerning the viability of the proposed operations, this section offers the registry operator an opportunity to demonstrate that it has carefully analyzed the financial and operational aspects of the proposal. At a minimum, factors that should be addressed are:

D13.2.1. Services to be provided. A full description of the registry services to be provided.

DotKids, Inc. will operate as a “Thick” or “Fat” Registry system in which all data elements of the domain record will be stored in the .kids Registry database. The .kids Registry will be responsible for maintaining the integrity and the security for all the data stored in its database. DotKids, Inc. will develop, maintain and operate a multiple Registrar system for registration of second-level domain names in the .kids TLD. DotKids, Inc. will provide ICANN Accredited Registrars with access to the system, enabling the registration of .kids domain names via a protocol developed by DotKids, Inc. In the operation of the .kids Registry, DotKids, Inc. will provide the following services and products:

· Accreditation Service Agreements

· Domain Registration Services

· Zone File Distribution

· Whois Service

· Reporting

· Registrar Support

· Customer Service

Each of these services is described below.

Registration Services

DotKids, Inc. will develop a registration protocol for the registration and maintenance of domains in the .kids TLD. Registrars will perform domain registrations using the DotKids, Inc. defined domain registration XML (attachment VII-b). This is an open standard that easily allows Registrars to implement their interface with the .kids Registry system. The .kids Registry will charge ICANN accredited Registrars an initiation fee.

DotKids, Inc. will also provide sample client programs to the ICANN accredited Registrars, which implement the .kids domain registration DTD. The .kids Registry will also have a test environment for the Registrars to test their client software. Registrars will not be enabled for the production system until they pass the certification process.

DotKids, Inc. will ensure that all Registrars have equal access to the .kids Registry and domain registrations will be performed on first-come first serve basis (after the initial sunrise and startup periods).

DotKids, Inc. will also provide to the public a free interactive web page and port 43 Whois look up service for the core data elements of the .kids Registry. The .kid Registry Whois database will be updated at least once per day on pre-determined schedule. In addition, the Whois database will be available for all the accredited Registrars allowing them to provide Whois lookup services.

Accreditation Services

DotKids, Inc. will enter into agreements with ICANN’s accredited Registrars and is willing to assist ICANN in this process. Under the “Thick” or “Fat” Registry system, Registrars have no need to maintain the registration data that is replicated in the .kid Registry database. The .kids Registry has a responsibility to securely store the data submitted by the Registrars. Consequently, this might lower the barrier of entry for new Registrars allowing for increased Registrar competition. The criteria for Registrar accreditation will be reduced, and largely focused on technical capabilities.

Zone File Distribution

The .kids Registry will be responsible for the generation, distribution, maintenance and running of the .kids zone files. Initially the .kids zone files will be generated at least twice a day. The zone file generation frequency may change to more frequent zone updates.

Reporting

The .kids Registry will provide the Registrars with a complete set of their data on a weekly basis. This data will be placed in a secure FTP site allowing Registrars to retrieve their data at their own schedule time. The Registrars in turn can use the data to perform their own reporting requirements. On a daily basis, the .kids Registry will produce detailed reports of all transactions with the Registry. The reports will include daily, weekly, and monthly snapshots of all new registrations, transfers, deletions, name server changes, domain name contact modifications, and rating changes. These reports will be made available through a password-controlled account. Aging reports will be archived and made available to the Registrars at anytime.

In addition, detailed financial reports will be made available to all Registrars. These reports will be made available through the Registrar’s web account and in hard copy.

DotKids, Inc. will also publish weekly systems performance and availability statistics and reports. All planned systems outages will follow a strict notification process, providing Registrars with ample warning and opportunity to make any necessary preparations.

Customer Service

The .kids Registry will provide 24x7 telephone and email customer support. Each Registrar will be assigned a dedicated account manager to assist them with all aspects of the Registry-Registrar relationship. During the test bed and certification period, Registrars will be assigned a dedicated certification manager to assist them with the ramp up phase.

D13.2.2. Revenue model. A full description of the revenue model, including rates to be charged for various services.

§ SRS Agreement –The .kids Registry will enter into Service Level Agreements with all ICANN Accredited Registrars. The one time fee for this agreement will be $10,000.

§ Domain Name Registrations (B2B & B2C) – As the Registry, DotKids, Inc. will receive $12 per registration. For the initial roll out period, DotKids, Inc. plans are to implement a higher fee structure starting at $48 for the first month, $36 for the second month, $24 for the third month and then will resume the $12 fee structure for the remaining 9 months of that fiscal year. This amount will be reevaluated following the first 12 months of operation.

§ Renewal of Domain Name Registrations – .kids Registry will charge the same annual fee for Renewals as for the initial Registration of $12.

§ Transfers – .kids Registry will transfer Domain Names which will include a one year renewal on that Domain Name for $12.

§ Special Services under consideration include special case refunds to Registrars with the appropriate proof of a refund to the registrant and special reporting being made available at Registrars request.

D13.2.3. Market. Market definition, size, demand, accessibility.

Demand for DotKids, Inc. products and services are fueled in part by the increasing level of concern for Internet safety for children. This growing concern is evidenced by increasing media coverage, U. S. Congressional hearings and commercial activities aimed at curbing access to adult content on the Internet. We view ourselves as advancing the goals of International governments, parents and the community at large through the establishment of an approach that combines the processes to provide a safer web environment for minors.

The following statistics on the market outlook further support DotKids, Inc. immediate entrée into the Internet community:

According to a July 2000 survey “Online youth are no longer a segment, but have become mainstream, with 68 percent of teenagers now online. “

(Source:Studies http://www.harrisinteractive.com/news/index.asp?NewsID=143&HI_election=All)

“[In the US,] kids' [Internet} penetration (2-12) will increase from 32 percent in 2000 to 62 percent by 2005” (Source: Jupiter Communications, June 2000 http://www.jup.com/company/pressrelease.jsp?doc=pr000615)

“The number of 2-17 year olds online in the US has tripled to 25 million since 1997, when 8 million children and teenagers had Internet access, according to a new study from Grunwald Associates.” Additionally, “About 46 percent of all family homes now have Internet access, but by 2005, more children will go online at school than at home.” (Source: Grunwald Associates, June 2000 http://www.grunwald.com/survey/index.htm)

“Parents trust their children's use of the Internet; however, they do have some concerns. Their top three concerns are the possibilities that their children will encounter pornography (46 percent), undesirable adults (29 percent) and violent or hate content (20 percent) online.” (Source: National School Boards Foundation, March 2000 http://www.nsbf.org/safe-smart/guides.htm)

“78 Percent of US parents are concerned about the type of content their children can access online, according to a study by the Annenberg Public Policy Center. Parents are most concerned that their children can access pornography or might give out personal information online.

While three-quarters of those surveyed believe that the Net is a positive learning tool, half of those surveyed expressed a fear that the Net interferes with teaching positive values. One third of parents use software to control the type of content that their children can access online.” (Source: Annenberg Public Policy Center, May 1999 http://www.appcpenn.org/appc/reports/rep27.pdf)

“A new report from Media Metrix reveals that 8.65 million Brazilians used the Internet in August, while over 50 percent of users are under 24 years old.” (Source: Media Metrix Sept 2000 http://www.mediametrix.com/press/releases/20000914b.jsp)

Children ages 8 to 15 have become the largest single group of Internet users (Arbitr Study, 10/99)

D13.2.4. Marketing plan. Advertising, publicity, promotion strategy, advertisement development strategy, relationship with advertising firm. Use of Registrars and other marketing channels.

In the implementation of its Marketing strategy, DotKids, Inc. will implement a combination of advertising, public relations, and strategic partnership formations with schools, libraries and other organizations, to enhance users’ and potential users’ knowledge of DotKids, Inc. and to penetrate the international market. Our end result is to get our name in front of as many users as possible to establish and encourage use of DotKids, Inc. and create global recognition as a family friendly web environment.

Advertising:

Advertising will be a primary activity of our marketing plan to build market identity and image. Examples include: industry trade journals and trade publications to be targeted include: Domain Street, Teen, Kids Sports Illustrated, Parenting, Family PC, .net – The Internet Magazine, Offspring, Wired, Creative Classroom and other kid and teen related International media.

The Company will also have a prominent presence at trade shows focusing on the kid and teen market.

Public Relations:

DotKids, Inc. may use public relations to communicate a favorable image of our network and tools to promote goodwill. Placement of information into the news media to attract attention and build up interest in DotKids, Inc. to build corporate image, and to properly promote DotKids, Inc.’s offerings will play an important role in support of our viral marketing and community marketing programs.

Direct Mail / Direct-Relationship Marketing Strategy:

DotKids, Inc. may also roll out a direct marketing campaign to communicate to our target users about our services, to produce prospect leads, to strengthen brand image, and to inform and educate our target market about the Company’s offerings. Various tools including letters, introduction packages and computer diskettes will be used to elicit an immediate and positive response.

D13.2.5. Estimated demand for registry services in the new TLD. Projected total demand for registry services in the TLD, effect of projected registration fees, competition. Please provide estimates for at least 10%, 50%, and 90% confidence levels.

The initial content provider markets we seek to dominate are:

Ø Children and Teen Entertainment

Ø Educational

Ø Historical

Ø Health

Ø Sports

Ø Business

Ø Research

D13.2.6. Resources required to meet demand. Provide a detailed estimate of all resources (financial, technical, staff, physical plant, customer service, etc.) required to meet the estimated demands, using at least the 10%, 50%, and 90% confidence levels.

D13.2.7. Plans for acquiring necessary systems and facilities. Describe plans for acquiring all necessary systems and facilities for providing the proposed services at each estimated demand level. Provide details as to the scope, cost, and vendor for any significant planned outsourcing.

DotKids, Inc. will be providing ICANN a complete detailed document regarding the operations of the Registry system no later than Wednesday, October 4, 2000, as a separately bound document and in electronic format.

D13.2.8. Staff size/expansion capability. Plans for obtaining the necessary staff resources, capacity for expansion, hiring policy, employee training, space for additional staff, staffing levels needed for provision of expanded technical, support, escrow, and registry services.

DotKids, Inc. plans to outsource its human resources (HR) function to an
accredited and reliable staffing and HR company. They will also assist
us in setting up the hiring policy, and any employee codes of conduct that
may be required, and produce a working handbook for our team. DotKids, Inc. is outsourcing its technical and operations functions. DotKids Inc.’s executive staff has discussed and shared its needs, requirements and expansion plans with the companies that will provide these services.

DotKids, Inc. will obtain the necessary facilities in accordance with the staffing and operation projections provided.

DotKids, Inc. is outsourcing its technical and operations. They have already discussed and shared their needs, requirements and expansion plans with the companies that will provide these services.

D13.2.9. Availability of additional management personnel. How will management needs be filled?

DotKids, Inc. believes that it has the ability to quickly find more than adequate management personnel. The availability of qualified employees was instrumental in selecting the Washington DC metropolitan area as the operational home of DotKids, Inc. Recruitment will not be difficult, as Washington DC is one of the most sophisticated markets in the world making it very attractive to potential candidates.

D13.2.10. Term of registry agreement. State assumptions regarding the term of any registry agreement with ICANN or the sponsoring organization. Note that the .com/.net/.org registry agreement has a basic term of four years.

DotKids, Inc. is open and willing to negotiate this term with ICANN, however, it proposes that the registry agreement be for a term of 10 years, with the option to renew or extend the agreement at the conclusion of the term. DotKids, Inc believes that a term of 10 years is essential to the success of the Registry for several reasons.

The .kids Registry model is much more complex than current model (NSI) used in the registration of .com, .org, and .net. While the actual registrations of the .kids domain names will be unrestricted, the goal of creating a minor friendly Internet community will take much longer to evolve. For the model to succeed there must be a reasonable level of consumer confidence that the Registry will have continuity and stability well into the future. The mere possibility that the Registry operation could change in a relatively short period of time, would only serve to undermine the public’s confidence.

The creation of any Registry system requires significant capital investment, and the .kids Registry is no exception. The term length must be sufficient enough to provide a reasonable assurance of a favorable return on investment. It is in everyone’s best interest to allow the Registry the opportunity to grow and succeed.

D13.2.11. Expected costs associated with the operation of the proposed registry. Please break down the total estimated operational costs by the sources of the costs for each estimated demand level. Be sure to consider the TLD's share of ICANN's cost recovery needs. (See <http://www.icann.org/financials/budget-fy00-01-06jun00.htm#IIIB>.)

DotKids, Inc. has attached a projected financial proforma. (attachment VII-e)

No specific cost recovery considerations are included in these projections. DotKids, Inc. fully recognizes the need for such recovery on ICANN’s behalf and is willing to negotiate and fully comply.

D13.2.12. Expected revenue associated with the operation of the proposed registry. Please show how expected revenue is computed at each estimated demand level.

D13.2.13. Capital requirements. Quantify capital requirements in amount and timing and describe how the capital will be obtained. Specify in detail all sources of capital and the cost of that capital (interest, etc.). Evidence of firm commitment of projected capital needs will substantially increase the credibility of the registry operator's proposal.

DotKids, Inc. recognizes that to maintain the stability of the Internet, this responsibility must be awarded to a company that is financially secured to operate. DotKids, Inc. will forward to ICANN a firm letter of commitment for financing. As detailed throughout, the focus on the value of this model and this TLD is very high. The model we are presenting shows strong technical, strong financial pro-formas and a strong Advisory Board. In addition, our systems operations, Comdisco’s annual financials reflect a $4.1 billion dollar operation.(www.comdisco.com)

D13.2.14. Business risks and opportunities. Describe upside and downside contingencies you have considered and discuss your plans for addressing them.

In an ideal world, the upside of the .kids TLD is the creation of a new TLD where minor only related domains are registered. Since we all know that this is difficult to achieve without other processes in place, our business plan is aiming at providing a workable solution to this. The creation of the new .kids TLD, along with the cooperation of the rating organizations in relating the rating information to the .kids Registry; and the development of the filtering software, all three combined will work for achieving the goals of the .kids TLD. All of these three factors will allow an easy mechanism for parents to restrict access to material they deem inappropriate for their kids.

The downside is more in regard to the goal of the DotKids, Inc. group in achieving a safe haven for minors on the Internet. Missing any of the above three elements might diminish the objectives of the .kids TLD.

D13.2.15. Registry failure provisions. Please describe in detail your plans for dealing with the possibility of registry failure.

D13.3. Pro-forma financial projections. Please provide detailed pro-forma financial projections, consistent with your business plan, for the demand scenarios that you estimate under item D13.2.5. The pro-formas should show revenue and expense estimates broken down by detailed categories and should be broken down into periods no longer than quarterly.

DotKids, Inc. has attached financial projections. (attachment VII-e)

D13.4. Supporting documentation. The following documentation should be provided in support of the Business Capabilities and Plan section:

D13.4.1. Registry operator's organizational documents. Documents of incorporation (or similar documents).

DotKids, Inc. has attached organizational documents

D13.4.2. References. A list of significant trade and credit references.

DotKids, Inc. is a newly formed company and does not hold any trade and credit references. However, are attaching documentation of support letters and testimony in favor the .kids TLD.

D13.4.3. Annual report. The registry operator's most recent annual financial report (or similar document). Audited financials are preferred.

Comdisco Annual Financial report. (http://www.comdisco.com/investor/annual.asp)

D13.4.4. Proof of capital. Provide evidence of existing capital or firm commitments of capital. Demonstrated access to necessary capital will be carefully scrutinized.

DotKids, Inc. is prepared to scale our corporate structure according to the financial requirements and terms of Investors.

D13.4.5. Proof of insurance. Please provide proof of the insurance described in item D13.1.8.