Legality of Electronic Signatures Scott Trainor Deputy General

Legality of Electronic Signatures Scott Trainor, Deputy General Counsel, Docu. Sign Nic Wolfe, Corporate Counsel, Docu. Sign DOCUSIGN CONFIDENTIAL

Agenda • Primer on Electronic Signatures • State of the Law in California • Exceptions • Case Law Support DOCUSIGN CONFIDENTIAL

What is an Electronic Signature? • Sound, symbol, process • Associated with record • Executed or adopted • By a person with intent to sign DOCUSIGN CONFIDENTIAL

Digital Signature vs. Electronic Signature DOCUSIGN CONFIDENTIAL

Electronic Signature Legal sufficiency vs. attribution • UETA answers the question “is it a signature? ” • Does NOT answer the question “is it your signature? ” It’s all in the PROOF • May be proven by any means, including surrounding circumstances or efficacy of agreed-upon security procedure • Different risks may require different kinds of evidence • How does your paper process provide proof? Could it be better?

The Keys to Enforceability Attribution Record Integrity

How Docu. Sign Assures Attribution 1. Signer Identity 2. Audit Trail KBA or In Person Primary Multifactor add-ons Email Address Access Code Third Party Docu. Sign Account SMS Social ID Federated/ SSO Phone Digital Certs ID Check Electronic Notary Standard Method Enterprise Add-On Industry-Leading Choice of Authentication Options

Enforceability: The e. Signature Difference 5/1/2016 Tamper-proof container Paper Record 5/1/2016 8: 41: 12 PM EST name@email. com IP: 192. 156. 22. 122 ID Proofing Options: § One Time Password § Phone Authentication § Knowledge Based Authentication § Witnessed Signing § Digital Certificate Validation

How Docu. Sign Assures Record Integrity Restricted Access • Tags • Hashing and Encrypting • Email Access Code • Tamper Evident • Recipient Roles Security Certifications

The Legal Foundation for Electronic Signatures SECTION 16. 5 Enactment of Sec 16. 5 of the Government Code – 1995 • Permits CA state agencies to use digital signatures UETA Uniform Electronic Transactions Act – 1999 • Adopted by California along with 46 other states + DC • Recognizes the validity of electronic signatures in California business ESIGN Electronic Signatures in Global & National Commerce Act – 2000 • Federal version of UETA • Instant 50 -state baseline • Recognizes the validity of electronic signatures in interstate commerce A conflict arises: Can state agencies use electronic signature?

Assembly Bill 2296 Clarifies that: (a) Use of digital signature is discretionary (b) Use of electronic signature is permitted under UETA standards DOCUSIGN CONFIDENTIAL

Exceptions Classic Exceptions 1. Laws governing wills, codicils or trusts; 2. Laws governing adoption, divorce or other family law matters; 3. All articles of the UCC (except Section 1 -107, Section 1 -206 and Articles 2 and 2 A); and 4. Court orders or other official court documents that a party must execute in connection with court proceedings California-Specific Exceptions 1. Various notices focused on consumer protection, including notices of termination of health insurance, product recall, default under a residential mortgage and others; 2. Any document accompanying the transportation of hazardous or dangerous materials 3. The notice of cancellation regarding certain types telephonic solicitations 4. Written authorization required by health care providers regarding release medical information 5. Foreclosure, seizure, and collection notices 6. Vehicle financing and seizure notices 7. Health provider benefit notices 8. Defect statements for property conversions 9. Davis-Sterling Common Interest Development Act notices 10. Fee-bearing post-dated check agreements 11. Lemon law buyback notices 12. Property seizure notices 13. Pandlord/tenant notices and accounting statements The list goes on… DOCUSIGN CONFIDENTIAL

Case Law Support in California Espejo v. So. Cal. Permanente Med. Group. Ruiz v. Moss Bros. Auto Group, Inc. Sollner v. Linton. Court’s Focus: Attribution Court’s Focus: Docu. Sign Issue: Whether email + logging into portal are sufficient forms of attribution for electronic signatures? Issue: Whether logging into home made portal is sufficient form of attribution for electronic signatures? Issue: Whether the use of Docu. Sign is a valid means of entering into a lease in California Holding: Yes. Holding: No. Holding: Yes. Takeaway: Multiple forms of authentication increase attribution confidence Takeaway: Don’t build your own esign software Takeaway: Docu. Sign is recognized by courts across the world as a credible electronic signature provider DOCUSIGN CONFIDENTIAL

For more information, please contact your local Docu. Sign Sacramento Representative: Jennifer Baker Enterprise Account Executive, Public Sector Sacramento, California Docu. Sign Inc. (650) 561 -5033 (Cell) jennifer. baker@docusign. com