Contract analysis

I. PURPOSE OF THIS NOTICE Calderwood & Harkness LLP represents Verimark Hospitality Group Inc. ("VHG" or the "Company," Nasdaq: VMRK) in connection with insurance coverage claims arising from Hurricane Callista, which made landfall on the coast of the Lower Florida Keys at approximately 1:30 PM EDT on September 18, 2022. This memorandum constitutes a formal litigation hold notice issued pursuant to the Company's obli

II. BACKGROUND A. Hurricane Callista Hurricane Callista was classified as a Category 4 hurricane on the Saffir-Veltason Hurricane Wind Scale at the time of landfall. The storm made landfall at approximately 1:30 PM EDT on September 18, 2022, in the Big Pine Key area of the Lower Florida Keys, with maximum sustained winds of approximately 145 miles per hour. The hurricane brought catastrophic wind damage and extensive

1. Verimark Grand Key Resort — Mile Marker 48, Marathon, Florida 33050. The Grand Key Resort is a 312-room luxury resort and full-service marina facility located in the Middle Keys. The property features oceanfront accommodations, multiple dining venues, a full-service spa, and a 96-slip marina. Monroe County issued a mandatory evacuation order for all residents and visitors in the Florida Keys effective September 16

2. Verimark Harborview Hotel & Conference Center — 1400 Estero Boulevard, Fort Myers Beach, Florida 33931. The Harborview Hotel is a 224-room hotel with an attached 40,000-square-foot conference and events facility located on Fort Myers Beach in Lee County. The property serves both leisure and group/corporate markets and is a significant revenue-generating asset for VHG. Lee County issued a mandatory evacuation order

3. Verimark Sunset Shores — 7200 Gulf Boulevard, St. Pete Beach, Florida 33706. The Sunset Shores is a 186-room boutique resort located on St. Pete Beach in Pinellas County. The property is positioned as an upscale lifestyle resort and draws a premium leisure clientele. While located farther north than the hurricane's point of landfall, Sunset Shores sustained wind damage to its roofing systems, building envelope, an

III. SCOPE OF THE LITIGATION HOLD — CATEGORIES OF MATERIALS TO BE PRESERVED The following categories describe the types of documents, communications, data, and other materials that must be preserved under this litigation hold. These categories are intended to be illustrative and broadly inclusive. If there is any question as to whether a particular document or item falls within the scope of this hold, it must be pres

IV. PRESERVATION OBLIGATIONS AND INSTRUCTIONS 4.1 Immediate Suspension of Document Destruction Effective immediately upon receipt of this notice, all routine document retention and destruction policies, auto-delete functions, and records-management schedules are hereby suspended with respect to any and all materials falling within the categories described in Section 3 above. This suspension applies to all media and f

V. DISTRIBUTION AND COMPLIANCE 5.1 Further Distribution Nathaniel Driscoll, General Counsel, and Sandra Pellegrini, Vice President of Risk Management, are hereby requested to identify all VHG personnel — at the corporate level and at each of the three affected properties — who may possess, control, or have access to materials falling within the scope of this litigation hold. This includes, without limitation: (a) Pro

VI. CONSEQUENCES OF NON-COMPLIANCE Failure to comply with this litigation hold notice may expose VHG and individual employees to serious legal consequences. Courts have broad discretion to impose sanctions for the spoliation of evidence, and the consequences of non-compliance can include, without limitation: (a) Adverse Inference Instructions: A court may instruct the jury that it may presume the destroyed or lost ev

VII. CONFIDENTIALITY This litigation hold notice is a privileged and confidential attorney-client communication between Calderwood & Harkness LLP and its client, Verimark Hospitality Group Inc. The contents of this notice are protected by the attorney-client privilege and the work-product doctrine. This notice should not be shared with, disclosed to, or discussed with any third party outside of VHG without the prior

1. I will immediately take all necessary steps to preserve all documents, communications, electronically stored information, and tangible items within my possession, custody, or control that fall within the scope of the categories described in Section 3 of the Litigation Hold Notice.

2. I will not delete, destroy, alter, overwrite, or discard any materials falling within the scope of the litigation hold, whether stored on VHG systems, personal devices, personal email or messaging accounts, or any other medium.

3. I will comply with the suspension of routine document retention and destruction policies as described in the Litigation Hold Notice.

4. I will maintain the confidentiality of the Litigation Hold Notice and will not disclose its existence or contents to any third party outside of Verimark Hospitality Group Inc. without the prior approval of VHG's General Counsel or Calderwood & Harkness LLP.

5. I will promptly notify Nathaniel Driscoll, General Counsel, if I become aware of the destruction, loss, or potential compromise of any materials that may fall within the scope of this litigation hold.

6. I will contact the compliance contacts identified in Section 5.3 of the Litigation Hold Notice if I have any questions regarding the scope or application of the hold. Name (Printed): ________ Title / Department: ________ Property / Location: ________ Signature: ________ Date: ________ Please return this completed Acknowledgment Form to: Nathaniel Driscoll, General Counsel Verimark Hospitality Group Inc. 1900 Brick