Preliminary Report Meeting of the Executive Committee 16 August 2001

At its meeting on 16 August 2001, the ICANN Executive Committee adopted the following resolutions:

Approval of Minutes

Resolved [EC01.7] that the Minutes of the Meeting of the Executive Committee held on 30 January 2001 are hereby approved and adopted as presented.

Repayment of Loans

The Executive Committee approved repayment of two loans:

MCI WorldCom

Whereas, MCI WorldCom, Inc. has loaned ICANN a principal amount of US$500,000, which was due for repayment on 28 July 2001;

Whereas, the principal due to MCI WorldCom for repayment is US$500,000 and the unpaid interest that will be accrued through 21 August 2001 is US$31,958;

Whereas, in resolution 99.121 the Board delegated to the Executive Committee the authority (with exceptions not here relevant) to exercise all the Board's powers in the oversight of the management of the affairs of ICANN;

Resolved [EC01.8], that the President is authorized to disburse, on or about 21 August 2001, US$531,958 to MCI WorldCom, Inc. in full repayment of its loan to ICANN.

(Dr. Cerf did not participate in this action of the Executive Committee.)

3Com

Whereas, 3Com Corporation has loaned the Corporation a principal amount of US$175,000, which will be due for repayment on 23 August 2001;

Whereas, the principal due to 3Com for repayment is US$175,000 and the unpaid interest that will be accrued through 23 August 2001 is US$11,375;

Whereas, in resolution 99.121 the Board delegated to the Executive Committee the authority (with exceptions not here relevant) to exercise all the Board's powers in the oversight of the management of the affairs of ICANN;

Resolved [EC01.9], that the President is authorized to disburse, on or about 21 August 2001, US$186.375 to 3Com Corporation in full repayment of its loan to ICANN.

Payment of Legal Expenses

Whereas, ICANN had significant needs for legal services in the months of February and May 2001 concerning implementation of the new TLD program authorized by resolutions 00.46 through 00.51;

Whereas, Jones, Day, Reavis & Pogue provided extensive legal services to meet these needs;

Whereas, ICANN received invoices from Jones, Day for US$105,209.90 and US$78,650.70 for legal services provided to ICANN in connection with the introduction of new TLDs and related matters during the months of February and May 2001;

Whereas, the President reviewed the invoices and determined that in his opinion they represent a proper indebtedness of ICANN, are for authorized services, and should be paid;

Whereas, the President has advised the Executive Committee that ICANN has adequate funds to pay these expenses;

Whereas, in resolution 99.121 the Board delegated to the Executive Committee the authority (with exceptions not here relevant) to exercise all the Board's powers in the oversight of the management of the affairs of the Corporation;

Whereas, the President advised the Executive Committee's members of his opinion that the invoices should be paid;

Resolved [EC01.10] that the payment to Jones, Day, Reavis & Pogue of US$105,209.90 and US$78,650.70 for legal services provided to ICANN in connection with the introduction of new TLDs and related matters during the months of February and May 2001 is hereby approved and authorized.

Director/Officer Travel Reimbursement Procedures

Whereas, Article V, Section 22 and Article VII, Section 7 of the ICANN bylaws authorize the Board to authorize the reimbursement of actual and necessary reasonable expenses incurred by Directors performing duties as Directors and Committee Members;

Whereas, Article VIII, Section 9 of the ICANN bylaws provides that expenses incurred by ICANN Officers in connection with performance of their Officer duties may be reimbursed to Officers of the President (in the case of Officers other than the President) or the Board;

Whereas, in resolution 99.121 the Board delegated to the Executive Committee the authority (with exceptions not here relevant) to exercise all the Board's powers in the oversight of the management of the affairs of the Corporation;

Whereas, the Executive Committee has considered a statement of 'Administrative Procedures for Reimbursement of Expenses' presented by Diane Schroeder, ICANN Business Manager, dated 16 August 2001;

Whereas, the Executive Committee believes that it is appropriate to approve formal procedures for the reimbursement of Director's and Officer's expenses;

Whereas, the President has incurred and requested reimbursement for US$45,754.29 in expenses in the course of his duties as President;

Resolved [EC01.11] that the procedures for reimbursement of expenses of Directors and Officers stated in the 16 August 2001 'Administrative Procedures for Reimbursement of Expenses' are hereby adopted;

Resolved [EC01.12] that the payment of US$45,754.29 to M. Stuart Lynn in reimbursement of expenses he incurred as President is hereby approved and ratified; and

Resolved [EC01.13] that, as stated in item 8 of the 'Administrative Procedures for Reimbursement of Expenses', the Vice-President and General Counsel may authorize payment to the President of an advance, not to exceed US $20,000 at any time, toward expenses already incurred by the President but not yet authorized by the Board, with the expenses to be later approved by the Board (or an authorized Committee of the Board).

Authorization of Hans Kraaijenbrink Travel

Resolved [EC01.14] that the Executive Committee approves reimbursement of the expenses of Director Hans Kraaijenbrink for trips he made, prior to adoption of the Administrative Procedures for Reimbursement of Expenses, on behalf of ICANN to the 11 July 2001 PSO General Assembly in Sophia Antipolis, France and to the 5-10 August 2001 Internet Engineering Task Force meeting in London, England.

(Mr. Kraaijenbrink did not participate in this action of the Executive Committee.)

The Executive Committee also discussed other matters (including personnel matters) but took no action on these.