External Participation Policy

POLICY ON LAWYER PARTICIPATION IN EXTERNAL ENTITIES

Effective Date:02/02/2026

1. PURPOSE

This policy establishes guidelines for Johnson IP Law regarding the participation of lawyers (including the managing attorney) as partners, officers, or directors in entities other than the firm. This policy ensures compliance with professional responsibility standards and malpractice insurance requirements while maintaining focus on client service and conflict management.

2. SCOPE

This policy applies to all lawyers providing legal services under Johnson IP Law name, including sole proprietors, employed attorneys, and contract attorneys.

3. GENERAL PROHIBITION

No lawyer providing legal services for Johnson IP Law shall serve as a partner, officer, or director in any entity other than Johnson IP Law itself, except as expressly permitted under Section 4 below.

4. PERMITTED EXCEPTIONS

The following activities are permitted and do not constitute a violation of this policy:

4.1 Non-Profit Organization Service – Service as a board member, officer, or director of a bona fide non-profit organization, provided:
- The role does not create conflicts of interest with firm clients
- The time commitment does not materially interfere with legal service delivery
- No compensation is received beyond reasonable reimbursement for expenses
- The managing attorney is notified and approves the arrangement

4.2 Passive Investment – Ownership interest in entities where the lawyer does not actively participate in management, governance, or decision-making, and the interest does not exceed [SPECIFY PERCENTAGE, e.g., 5%] of the entity

4.3 Personal Business Entities – Management of personal sole proprietorships or single-member LLCs used for personal investment or real estate purposes, provided they do not interfere with legal practice obligations

4.4 Approved Exceptions – Any other participation approved in writing by the managing attorney on a case-by-case basis, with documented conflict analysis

5. CONFLICT OF INTEREST REQUIREMENTS

Any permitted exception under Section 4 must:
- Be disclosed to all current clients of Johnson IP Law
- Include a written conflict analysis
- Not create or appear to create conflicts between client interests and the external entity
- Be documented in the firm's conflict management system

6. COMPLIANCE & MONITORING

6.1 All lawyers shall disclose any outside directorships, partnerships, or officer positions upon hiring or engagement, and upon any change in status during their tenure.

6.2 The managing attorney shall maintain a current register of all outside positions held by firm lawyers.

6.3 Violations of this policy may result in disciplinary action up to and including termination.

7. INSURANCE & RISK MANAGEMENT

This policy supports the firm's malpractice insurance requirements and risk mitigation strategy. Any outside activity that increases professional liability exposure or creates regulatory compliance issues must be reported to the managing attorney immediately.

8. REVIEW & AMENDMENT

This policy shall be reviewed annually and amended as needed to reflect changes in professional standards, insurance requirements, or firm operations.