Digital Signature CapabilitiesK Y B i M i !Keep Your Business Moving!

J h M hi iJohn MarchioniARX, Inc.www.arx.com

ARX | 855 Folsom St. Suite 939 San Francisco, CA | (415) 839 8161 | www.arx.com | sales@arx.com

Agenda

Technology Overview

Next Generation SolutionNext Generation Solution

Digital Signature Demo

ROI D iROI Drivers

Electronic Signature Legislation

Case Study

Q&A

When are Digital Signature Needed?

Automating signature-dependent processes: approval, agreement,

and acceptanceand acceptance

Verification inside & outside the organization

Audit regulatory & governance requirementsAudit, regulatory, & governance requirements

When your evolution to a Paperless Environment is hitting the

Signature Stoplight!Signature Stoplight!

Digital Signature Technology

Components: • Document Hash• Private Key• Public Key• ID Certificate

++ ++Document

to SignDigital

SignatureSigned

Document

++ ++Document

HashSigner ID Certificate

Signer Private Key

CoSign®: Meeting Demands of Business

Binds an identity to an electronic document, record or authorization within a business processauthorization within a business process.

Maintains the 3 I’s of proof: f p f

• signer Identity;

• signer Intent; and

• record Integrity.

Affordably completes your investment in business-process o dably co pletes you vest e t bus ess p ocess automation.

Approach to Good Business Practice & Legal Binding

CoSign replaces slow and expensive paper-wet-ink signatures with digital, low-cost, legally enforceable signatures.

CoSign Digital Signatures provide proof of the Three I’s:

IntentIntentIdentityIdentity IntegrityIntegrity

g g g p p

Signer Identity Signer Intent Document Integrity

Who signed the document?

Signer’s ID embedded insigned document

Why did signer participate in the transaction?

Reason Code

Has content changed after it was signed?

Data cannot change withoutsigned document Reason Code Data cannot change without detection & invalidating the

signature(s)

Next Generation Digital Signatures

Turn-key network-attached appliance;

Driven by pre-existing (or pre-established):

• User-Management Policy

• User-Directory

• User-Authentication Scheme

Trusted By:

• Employees• Partners• Customers• Citizens• Citizens• Auditors• Suppliers

CoSign: Sign and Verify Anything

PDF & PDF/AOutlook

Excel00/XP/03/07 Word

00/XP/03/07 Web Forms

PowerPoint00/03/07 Application-Compatible

Signature Mechanism

InfoPath

Virtual

Signature Mechanism

Tiff ImagesLOTUS Forms

AutoCADWordPerfect

Virtual Signing

Live DEMO - Digital Signatures in Action

Also, Recorded DemosMS Office, PDF, MOSS Examples

demo-Applications-signature-http://www.arx.com/resources/digital

demo-SharePoint-signature-http://www.arx.com/resources/digital

Express your unique digital signature securely

Valid SignatureValid Signature

What is a CoSign Digital Signature?

Transaction Transaction IntegrityIntegrity

John Miller IdentityIdentity******

IntentIntent

Huge ROI Potential: Enterprise, B2B and B2C Applications

Transactional Document Examples Governance Document Examples Claims Clinical Documentation

C i h d

Board Actions Corporate Communications and Public

R Customer service change orders Designs, Drawings, Plans Field Service, Maintenance, and

Calibrations ReportsG l C M S i d

Reports Disbursements: Check, Wire Transfer

Orders, and ACH Transactions Employee Actions

E l B fi Ch General Contracts, Master Service, and Sub-contractor Agreements

HIPAA patient forms and consent forms Invoices

L b R t N t d C tifi t f

Employee Benefit Changes Employee On-Boarding Documents Employee Time Sheets Employee Training Acknowledgements

E R t & R i b t Lab Reports, Notes, and Certificates of Analysis

Lease Agreements Loan Agreements

M f t i I t ti d R t

Expense Reports & Re-imbursement Approvals

Financial Spreadsheets: Data Collection and AggregationGift R d Manufacturing Instructions and Reports

Medical Records Purchase Orders Sale Proposals T t P d

Gift Records Journal Entries related to Accounting and

General Ledger Standard Operating Procedures, Policies,

W k I t ti d T i i D t Test Procedures Work Orders

Work Instructions, and Training Documents Tax Filings

ROI Drivers

Digital Signatures = Productivity Tool

• Keeps you paperless, electronic and green;

• Enables you to adapt general operations to Lower Costs;

• Lowers specific cost burdens associated with meeting audit d l li i

“I agree”“I agree”“I authorize”“I authorize”“I declare”“I declare”

and regulatory-compliance requirements.

Speed, Convenience, and ControlAcross all your business processes

The Law and GxP

Disclaimer: ARX is not a law firm and does not provide legal advice. We make no warranty, express or implied, concerning any interpretation of laws and regulations or its reliability as presented here or of the content on websites cited in this presentationon websites cited in this presentation.

US/EU State and Federal Statutes

Legislation• Uniform Electronic Transactions Act • Uniform Electronic Transactions Act

(“UETA”) – 1999

• Electronic Signatures in Global and National Commerce Act (“E-Sign”) – 2000

• EU Directive for Electronic Signatures –19991999

These Acts give legal force and These Acts give legal force and effect to digital signatures.

Uniform Electronic Transactions Act

UETA http://www.law.upenn.edu/bll/archives/ulc/fnact99/1990s/ueta99.htm

SECTION 7. LEGAL RECOGNITION OF ELECTRONIC RECORDS, ELECTRONIC SIGNATURES, AND ELECTRONIC CONTRACTS.

• (a) A record or signature may not be denied legal effect or (a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form;

• (b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation;because an electronic record was used in its formation;

• (c) If a law requires a record to be in writing, an electronic record satisfies the law;

• (d) If a law requires a signature, an electronic signature satisfies the law.

E-Sign Act

ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT (aka E-Sign) at: ( )http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=106_cong_public_laws&docid=f:publ229.106

Mirrors various provisions of UETA (which preceded it.)

• section a) says electronic signatures and documents are legal;

ti b) thi t d t id th t th t • section b) this act does not override other acts that may mandate use of paper-based transactions;

• section c) “Consents” outlines what the parties must agree, ) p g ,and declare they agree(d), to use of electronic signatures/contracts between them; important in B2C and B2B scenariosB2B scenarios.

UETA and E-Sign

46 US States (+ DC, Puerto Rico and the Virgin Islands) have adopted UETA See: http://www ncsl org/programs/lis/CIP/ueta statutes htmSee: http://www.ncsl.org/programs/lis/CIP/ueta-statutes.htm

• Georgia; Illinois; New York; Washington have other statutes pertaining to electronic transactions:GA G C d A 10 12 1 IL 5 ILCS 175/1 101 NY NY CLS St t T h l g 301 t GA: Ga. Code Ann., 10-12-1; IL: 5 ILCS 175/1-101; NY: NY CLS State Technology 301 et seq.; WA: http://apps.leg.wa.gov/RCW/default.aspx?cite=19.34

Th US F d l A t E Si if di t t b The US Federal Act, E-Sign, governs if disputes cannot be settled at the State level.Note: US courts seem to be so routinely admitting electronic signatures due to the y g gE-Sign Act that it is unnecessary for them to write a written opinion actually going through the analysis under the statute; In a sense, the statute is doing its job by obviating the need for any court to think twice about whether an electronic signature could be admissible (assuming it met all the other rules of evidentiary procedure).

GxP (Good Business Practice)

GxP (Good Business Practice)

What the courts are concerned with:• Admissible evidence

W li / d f ll d i t tl i th • Was a policy/procedure followed consistently in the execution of routine business?

What businesses are concerned with:What businesses are concerned with:• Compliance with regulations

• Audit efficiency

Discovery (the process can be easy or not)• Discovery (the process can be easy or not)

• Compliance with FRCP on Admissibility: http://en.wikipedia.org/wiki/Federal_Rules_of_Civil_Procedure

CoSign Digital Signatures ease the audit, discovery and compliance process.

• Proof of signer ID, Intent and transaction Integrity in g , g yone transportable unit—the signed document/record

Case Study: MAXIMUS

Transformed struggling service offering into a competitive differentiator.

I-9 service was to be cancelledP i t iPaper intensive processLow profit operation

Case Study: MAXIMUS

Transformed struggling service offering into a competitive differentiator.

Legislation passed allowing electronic signaturesDigitized entire business process

Case Study: MAXIMUS

Transformed struggling service offering into a competitive differentiator.

The Impact: Decreased processing time and costDecreased processing time and cost

Reduced postage cost for over 700,000 forms/year Reduced FTE in verification process

Drove customer satisfaction and competitive advantageDrove customer satisfaction and competitive advantageService Guarantee < 1 day processing time

Case Study: MAXIMUS

Prior to CoSign, MAXIMUS processed < 300,000 new hires/year. Today, they process > 700,000.

"The I-9 forms are now completed online and electronically signed by both the employee (new hire) and the employer (client manager) using standard electronic signatures. In addition to the cost and time savings for MAXIMUS and our clients, this solution gives us a competitive advantage in our increasingly competitive marketplace.“Nancy Kim

Vice President

Digital Signature Survey for documents, workflow, SharePoint

Survey by January 2010

Non-Users – Extra Overhead/Process Time

On average, how much time would you say is added to the end-to-end process as a result of this physical sign-off?

For 23%, a week or more is added to their

0% 5% 10% 15% 20% 25% 30% 35%

1/2 day or lessis added to their process times.

For 70% it’s at

1 day

2 days

3 daysleast a day.

3 days

One week

Two weeks

Three weeks

More than 1 month

N=195 non-users,

ROI – for Existing Digital-Signature Users

Considering financial, operational and customer-service benefits, what would you consider to be the payback period from your investment in digital signatures?

0% 5% 10% 15% 20% 25% 30% 35% 40%

6 months or less63% of users achieved ROI in

12 months

18 months Users

12 months or less

well ahead of18 months

2 years

UsersPlanned users

- well ahead of expectations

3 years

More than 3 yearsN=84 Users,N=78 Planned Users

CoSign Digital Signature Summary

Closes last gap in going paperless—Approvals

Broad Application Compatibility

Global Proof of the 3 I’s Global Proof of the 3 I s

signer’s Identity and Intent

record Integrity

Verifiable for decades

A Clearly Measurable ROI

Legally Enforceable Signatures

Questions?

See CoSign® Demos & Success Stories:

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