Issue 2 proposal v12

Attached.
I believe I included all the changes agreed to from last week.

The only quibble that I have with the wordings is that it talks about 
'binding on the reference-side'. Since this is expected to be used at 
the edges of the domain, it is preferable to not talk about 'references' 
but instead say something like 'binding on the client-side' or 'the 
invoker's binding'.

-Anish
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