Contract analysis

1. Purpose and Overview We write to provide you and the Verimark Hospitality Group Inc. ("VHG") leadership team with a comprehensive status update following the initiation of federal litigation against Coral Verimark Resorts LLC ("CVR") on July 22, 2025. This letter summarizes all actions taken in connection with the filing of suit, describes the current procedural posture of the case, and identifies the immediate ne

2. Filings Completed on July 22, 2025 2.1 Verified Complaint On July 22, 2025, Calderwood & Harkness LLP filed a Verified Complaint on behalf of VHG in the United States District Court for the Southern District of Florida, Miami Division. The case has been assigned Case No. 1:25-cv-22847-AMC and has been referred to the calendar of the Honorable Adrienne M. Castellano, United States District Judge. A conformed copy o

1. Count I — Federal Trademark Infringement under Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1), based on CVR's unauthorized use of marks confusingly similar to VHG's federally registered VERIMARK trademarks in connection with identical and closely related hospitality services.

2. Count II — Federal Unfair Competition / False Designation of Origin under Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), based on CVR's use of the "VERIMARK RESORTS" name and "VR Verimark" stylized logo in a manner likely to cause confusion, mistake, or deception as to the origin, sponsorship, or affiliation of CVR's resort properties and services.

3. Count III — Federal Trademark Dilution under Section 43(c) of the Lanham Act, 15 U.S.C. § 1125(c), based on CVR's dilution by blurring of VHG's famous VERIMARK marks through the use of substantially similar marks in the same hospitality industry, thereby weakening the distinctiveness of VHG's marks.

4. Count IV — Florida Common Law Trademark Infringement, based on VHG's longstanding common law rights in the VERIMARK marks predating CVR's adoption of its infringing marks, and CVR's use of confusingly similar marks in commerce within the State of Florida.

5. Count V — Violation of the Florida Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.204, based on CVR's deceptive and unfair trade practices in adopting and using marks confusingly similar to VHG's established marks, thereby misleading consumers regarding the source and affiliation of CVR's services. The Complaint sets forth in detail VHG's extensive trademark portfolio and rights, including the followin

3. Service of Process We confirm that service of the Summons and Verified Complaint was effected upon Coral Verimark Resorts LLC on July 22, 2025. Service was accomplished both at CVR's principal office located at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308, and upon CVR's designated registered agent, Suncoast Filing Services LLC, located at 100 S.E. 3rd Avenue, Suite 210, Fort Lauderdale, Florida 33301.

4. Preliminary Injunction Hearing The Court has scheduled the hearing on VHG's Motion for Preliminary Injunction for September 10, 2025. We are preparing in earnest for the hearing and anticipate the following procedural developments in the interim period. First, we anticipate that CVR will file an opposition brief and supporting evidence in response to VHG's Motion. The Court's local rules and any order setting the

5. Expert Engagement 5.1 Consumer Confusion Survey — Pinnacle Brand Analytics LLC We are in the process of formally engaging Dr. Irene Calder, Ph.D. (Consumer Psychology), of Pinnacle Brand Analytics LLC, located at 1500 Peachtree Street N.W., Suite 800, Atlanta, Georgia 30309, to design and conduct a consumer confusion survey for use as evidence in this litigation. Dr. Calder is a nationally recognized expert in con

6. Coordination with TTAB Opposition As noted above, the TTAB Opposition proceeding, Opposition No. 91/287,456, remains suspended pursuant to the stipulated order entered by the Board on February 18, 2025. The opposition concerns CVR's United States Trademark Application Serial No. 98/432,117 for the mark "VERIMARK RESORTS" in International Class 043 (hotel and resort services), which was filed by CVR on April 15, 20

7. Discovery Preparation We anticipate that formal discovery will commence after CVR files its answer or responsive pleading (due August 12, 2025) and after the parties conduct a discovery planning conference pursuant to Federal Rule of Civil Procedure 26(f). The Rule 26(f) conference must typically be held at least twenty-one (21) days before the date of the Court's scheduling conference or the deadline for a schedu

8. Action Items for VHG The following items require VHG's attention and prompt action in the coming weeks. 8.1 Designation of Rule 30(b)(6) Representative We request that VHG identify and designate a corporate representative or representatives pursuant to Federal Rule of Civil Procedure 30(b)(6) who can testify on behalf of the company regarding the following topics: VHG's trademark portfolio and registration history

9. Anticipated Defense Positions Based on our review of CVR's responses to VHG's pre-litigation cease-and-desist correspondence and our assessment of the likely defense strategy, we anticipate that CVR will assert several defenses, each of which we believe can be effectively rebutted. The principal anticipated defense positions are as follows: Descriptiveness or Genericness. In its response to VHG's cease-and-desist

10. Budget and Fee Update As set forth in the engagement letter dated June 16, 2025, the estimated legal fees for this matter through the preliminary injunction phase are in the range of $275,000 to $375,000. We are pleased to report that costs incurred to date are within the lower range of this estimate, reflecting the team's efficiency in preparing the initial filings and the benefit of the substantial investigativ

11. Upcoming Key Dates Summary For ease of reference, the following is a summary of the key upcoming dates and deadlines in this matter: We will promptly advise you of any additional dates set by the Court or arising from the progression of the case. Closing We are confident that VHG is in a strong position in this litigation. VHG's trademark portfolio is robust and well-established, anchored by three federal registr

1. Conformed copy of Verified Complaint (filed July 22, 2025)

2. Conformed copy of Memorandum of Law in Support of Motion for Preliminary Injunction (filed July 22, 2025)

3. Conformed copy of Declaration of Leonard Yee (filed July 22, 2025)

4. Conformed copy of Declaration of Jorge A. Quintana (filed July 22, 2025)

5. Conformed copy of Proposed Preliminary Injunction Order (filed July 22, 2025)

6. Conformed copy of Notice of Related TTAB Proceeding (filed July 22, 2025) CONFIDENTIALITY NOTICE: This communication, including all attachments and enclosures, is protected by the attorney-client privilege and/or the work product doctrine. It is intended exclusively for the use of the addressee(s) named above and other authorized representatives of Verimark Hospitality Group Inc. If you are not the intended recipi