Risk Register

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Legal & Operational Risk Register

Tracking of open risks, mitigation strategies, and ownership

Total Risks
10
Critical
1
High
6
In Progress
4
R-001CriticalUnder Analysis

El Salvador Foreign Agents Law Exposure

Description

Potential exposure under El Salvador Foreign Agents Law for nonprofit operations and US-controlled entities. Could impact ability to operate Fundacion Murph Life and Casa Conejo subsidiaries.

Likelihood

Medium

Impact

High

Mitigation Strategy

Jorge Alfaro to complete Foreign Agents Law analysis and recommend contract structures to minimize exposure. May require local board composition and operational independence.

Timeline

Urgent — before any ES entity formation

Owner

Jorge Alfaro

Affected Entities
Fundacion Murph Life (El Salvador)Casa Conejo (El Salvador)MurphsLife Foundation
Notes

ADDN partnership and government relations may provide clarity. Bryan Nuñez to advise on regulatory landscape.

R-002HighPending

Trademark Ownership & Transfer Clarity

Description

Trademark (Reg. No. 8,015,171) currently held by Lucas George & Aaron Murphy individually, not by nonprofit. Ownership transfer to MurphsLife Foundation needed for long-term clarity and IP protection.

Likelihood

Low

Impact

High

Mitigation Strategy

Tim Nielsen to draft trademark assignment agreement transferring ownership from Lucas & Aaron to MurphsLife Foundation. Ensure proper documentation and USPTO filing.

Timeline

Before investor capital raise

Owner

Tim Nielsen

Affected Entities
MurphsLife FoundationConejo CoffeeCasa ConejoAll for-profit subsidiaries
Notes

Current registration is solid (Nov 4, 2025). Transfer is administrative but critical for investor confidence.

R-003MediumNeeds Clarification

Costa Rica Farm Deed Status Unknown

Description

Deed offer from donor may have expired or status is unclear. Impacts long-term property strategy for Costa Rica farm project.

Likelihood

Medium

Impact

Medium

Mitigation Strategy

Lucas George to re-engage with donor and confirm current status of deed offer. If expired, negotiate renewal or alternative arrangements.

Timeline

Before Costa Rica project launch

Owner

Lucas George

Affected Entities
Costa Rica Farm ProjectMurphsLife Foundation
Notes

Not critical for immediate operations but needed for long-term planning.

R-004HighIn Progress

Employment Contracts & HR Structure Not Finalized

Description

Employment agreements for key team members (Emmanuel, Dianne, others) not yet finalized. HR structure and roles need clear documentation.

Likelihood

High

Impact

Medium

Mitigation Strategy

Emmanuel Poulain and Dianne to finalize employment contract templates. Ensure compliance with IRS regulations for nonprofit compensation.

Timeline

Q1 2026

Owner

Emmanuel Poulain

Affected Entities
MurphsLife FoundationAll entities
Notes

Templates exist but need customization and execution. Critical for audit compliance.

R-005HighPending

FMV Property Lease Not Yet Drafted

Description

Fair-market-value property lease between nonprofits and for-profit subsidiaries not drafted. Required before any for-profit operations on nonprofit property.

Likelihood

High

Impact

High

Mitigation Strategy

Jorge Alfaro to draft FMV Property Lease for El Salvador operations. Tim Nielsen to draft for US properties. Lease structure to be based on property valuations.

Timeline

Before for-profit entity operations begin

Owner

Jorge Alfaro

Affected Entities
Casa Conejo (El Salvador)MurphsLife FoundationAll for-profit subsidiaries
Notes

Critical for IRS compliance and clear separation of nonprofit/for-profit operations.

R-006HighPending

Conejo Group PBC Formation Not Yet Filed

Description

Delaware PBC (Public Benefit Corporation) for Conejo Group holding company not yet filed. Blocks all for-profit subsidiary formation.

Likelihood

Low

Impact

High

Mitigation Strategy

Tim Nielsen to file Delaware articles of incorporation for Conejo Group PBC ASAP. Ensure PBC status is clearly designated in articles.

Timeline

ASAP (this week if possible)

Owner

Tim Nielsen

Affected Entities
Conejo Group PBCConejo CoffeeCasa Conejo USA
Notes

Blocking item for investor capital raise. Once filed, other entities can follow.

R-007HighIn Progress

Conflict-of-Interest Policies Not Yet Adopted

Description

Distinct conflict-of-interest policies required for nonprofit and for-profit entities. Aaron Murphy's roles across entities need clear governance framework.

Likelihood

High

Impact

Medium

Mitigation Strategy

Jonathan Bench to finalize conflict-of-interest policies for both US and El Salvador nonprofits. Recommend non-voting shares for Aaron in for-profits to reduce conflicts.

Timeline

Before investor capital raise

Owner

Jonathan Bench

Affected Entities
MurphsLife FoundationCasa Conejo (El Salvador)All for-profit entities
Notes

Independent board oversight and clear policies are investor confidence factors.

R-008HighIn Progress

Bridge Instrument for Investor Capital Not Yet Finalized

Description

Legal vehicle for receiving investor capital (bridge note, SAFE, or convertible debt) not yet finalized. Investors are ready but instrument is the blocker.

Likelihood

Low

Impact

High

Mitigation Strategy

Jonathan Bench and Michelle James to present legal vehicle options and finalize bridge instrument. Target completion before next investor calls.

Timeline

This week (by March 5, 2026)

Owner

Jonathan Bench

Affected Entities
Conejo CoffeeCasa Conejo USAInvestor capital raise
Notes

Investors are ready. This is the final blocker for capital deployment.

R-009MediumIn Progress

Google Drive Document Management Workflow Not Standardized

Description

Document versioning, access control, and naming conventions not standardized. Risk of confusion, lost versions, or unauthorized access.

Likelihood

High

Impact

Low

Mitigation Strategy

Catherine Wahlen to establish Google Drive folder structure, naming conventions, and version control protocols. Ensure all legal team members follow the same standards.

Timeline

This week

Owner

Catherine Wahlen

Affected Entities
All entitiesLegal teamCompliance team
Notes

Operational efficiency issue. Clear protocols will reduce errors and improve collaboration.

R-010MediumScheduled

Audit Postponed to Later in 2026

Description

Annual audit postponed to later in 2026. Requires complete financial records, bank statements, and documentation.

Likelihood

Low

Impact

Medium

Mitigation Strategy

Emmanuel Poulain to gather all financial records, resolve Chase bank statement issues, and prepare for audit. Ensure all transactions are properly documented.

Timeline

Q2/Q3 2026

Owner

Emmanuel Poulain

Affected Entities
MurphsLife Foundation
Notes

Chase bank statements currently being chased. Must be resolved before audit.