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InfoSend Response— 12/29/2006 <br />5. This requirement is met. The bill images will be reproduced in their current form. <br />This requirement is met. InfoSend will sign the indemnification agreement. In InfoSend's <br />view this patent is overly broad and will eventually be overturned. The patent is for the <br />process of EBPP, not a specific software solution that relates to it. Emergis no longer <br />offers an EBPP solution. The patent has been challenged in the United States District <br />Court for the District of Kansas. The court issued a "claim construction order" that limited <br />the scope of the patent to exclude billers who use third parties to offer EBPP to their <br />customers. <br />Text from: www.energypulse.net /centers/ article /article _ display.cfm ?a_id =1385 <br />Up until now, a bone of contention in the interpretation of the patent was whether it <br />covers EBPP systems that use third -party EBPP service providers such as PayPal or <br />CheckFree. Emergis asserts that it does. However, on September 14, 2006, the United <br />States District Court for the District of Kansas issued a "claim construction order" in the <br />case filed by Emergis against cable TV company Cable One, Inc. in which the court <br />determined the meaning and scope of certain terms used in the claims of the `362 <br />patent. <br />"In basic terms, the claim construction order says the '362 patent does not cover any <br />third -party system where the payment instructions are sent from the consumer to a third - <br />party EBPP service provider as opposed to going directly to the biller," says Griffin. "This <br />is a significant blow to Emergis's licensing campaign. Up to this point, Emergis has <br />argued that a utility using a third -party EBPP service provider infringes the `362 patent if <br />their customers do not realize when they have left the utility's Web site to pay their bill at <br />the third -party service provider's Web site, especially where the third -party service <br />provider's site looks like the utility's Web site." <br />This requirement is met. In addition to this, InfoSend will provide the City with round the <br />clock support for critical issues. InfoSend offers standard customer support, 8 a.m. to 5 <br />p.m., to all customers. An after -hours support number will be provided to the City and <br />can be used 7 days per week, 24 hours per day, 365 days per year. When this number <br />is called the City will receive a response from an InfoSend technical representative <br />within 4 hours. This extended support is currently provided to clients like the City of <br />Anaheim who have data processing operations that run 24 hours per day. <br />B. Requirements: Product Development and Ongoing Maintenance <br />1. This requirement is met. EBPP functionality and processes will be developed by and <br />hosted by InfoSend. <br />2. This requirement is met. InfoSend will be will be responsible for customer authentication, <br />payment authorization, security, error processing, and reports. Customer support is <br />normally handled by providing a webpage for City customers to fill out when they have <br />question. An email is then immediately sent to a specified City address to communicate <br />the question and a copy is sent to the customer. If the City wishes the email to be sent to <br />InfoSend instead and for InfoSend to contact the customer this can be done as well. <br />25J -14 <br />O <br />