AFC policy:

AFC^® must not be exposed to undue contractual risk, especially risk that is beyond our control.

As a result:

Before entering into any contracts on behalf of AFC, employees should:

• determine whether they have the proper authority;
• analyze and quantify all risks, to the extent possible;
• limit potential risks by ensuring that contracts contain realistic and practical indemnity terms, insurance provisions, and operating procedures; and
• seek legal review of all contracts and agreements entered into on behalf of AFC.

In addition:

The Office of General Counsel must review every contract in advance that involves any of the following:

• intellectual property (e.g., trademarks, trade secrets, copyrights, and confidential and proprietary information) owned by AFC or by a third party;
• proposed perpetual renewal rights or a term of more than three (3) years;
• real property; indemnity and/or hold harmless obligations of AFC;
• release of rights by or against AFC;
• AFC guaranty or the personal guaranty of an AFC employee, director or officer; or,
• aggregate payments totaling over $50,000.