Contract analysis

1. I am the Vice President of Brand Protection at Verimark Hospitality Group Inc. ("VHG" or "Verimark"). I have been employed by VHG in progressively senior brand-protection and enforcement roles since June 15, 2015, a period of more than ten years. In my current capacity, I am responsible for the oversight and strategic management of VHG's entire trademark portfolio, the development and execution of VHG's brand enfo

2. I have personal knowledge of all of the facts stated in this Declaration, or I have acquired knowledge of such facts through my review of business records maintained by VHG in the ordinary course of business and through my direct involvement in the matters described herein. I am authorized to make this Declaration on behalf of VHG and its officers and directors.

3. I submit this Declaration in support of Plaintiff VHG's Motion for Preliminary Injunction against Defendant Coral Verimark Resorts LLC ("CVR"), seeking to enjoin CVR from using the marks "VERIMARK RESORTS," the stylized logo "VR Verimark," the domain name www.verimarkresortsgroup.com, the Northpoint Services Inc. handle @verimarkresortsofficial, and any other marks confusingly similar to VHG's federally registered

I. BACKGROUND OF VERIMARK HOSPITALITY GROUP INC.

4. VHG is a corporation duly organized and existing under the laws of the State of Delaware, with its principal place of business and corporate headquarters located at 2200 Bayshore Boulevard, Suite 1400, Tampa, Florida 33629. VHG's shares of common stock are publicly traded on the Nasdaq Stock Market under the ticker symbol "VMHG." VHG's federal Employer Identification Number is 26-3847192.

5. VHG's registered agent for service of process in the State of Delaware is Capitol Statutory Services Inc., located at 1209 Orange Street, Wilmington, Delaware 19801. VHG is also registered to do business in the State of Florida and in each other state in which it maintains resort and hotel operations.

6. VHG's Chief Executive Officer is Donald R. Hargrove, who has served in that capacity since 2014. VHG's General Counsel and Senior Vice President of Legal Affairs is Sonia M. Trevino, who has served in that capacity since 2016.

7. VHG is one of the leading hospitality and real estate companies in the United States and the Caribbean. As of the date of this Declaration, VHG owns and operates a portfolio of 74 branded resort and hotel properties spanning 18 states and multiple territories in the Caribbean. VHG's properties are positioned in the luxury and upper-upscale segments of the hospitality market, catering to discerning leisure and busi

8. For the fiscal year ended December 31, 2024, VHG reported total annual revenue of approximately $1.87 billion, as disclosed in VHG's Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. This revenue is derived principally from room revenue, food and beverage sales, resort fees, conference and event services, and ancillary hospitality services operated under the VERIMARK brand

9. VHG has operated under the VERIMARK brand continuously and without interruption since September 3, 2007 — a period of more than 17 years as of the date of this Declaration. During this time, VHG has invested hundreds of millions of dollars in developing, promoting, and protecting the VERIMARK brand. The VERIMARK brand is widely recognized among consumers throughout the United States and the Caribbean as identifyin

10. VHG owns a family of federally registered trademarks incorporating the VERIMARK name and distinctive design elements. These registrations form the foundation of VHG's intellectual property portfolio and reflect VHG's longstanding, exclusive rights to use the VERIMARK marks in connection with hotel and resort services. The principal registrations relevant to this action are described below. A. U.S. Registration No

11. VHG is the owner of U.S. Trademark Registration No. 3,742,618 for the word mark VERIMARK. This registration was issued by the United States Patent and Trademark Office ("USPTO") on March 17, 2009, in International Class 043, covering hotel and resort services. VHG's first use of the VERIMARK word mark in commerce was on September 3, 2007. The registration is active, and all maintenance filings required under the

12. VHG is the owner of U.S. Trademark Registration No. 4,105,233 for the word mark VERIMARK HOSPITALITY. This registration was issued by the USPTO on January 10, 2012, in International Class 043, covering hotel, resort, and hospitality management services. The registration is active, and all required maintenance filings have been timely submitted and accepted. A true and correct copy of the registration certificate

13. VHG is the owner of U.S. Trademark Registration No. 5,489,701 for a stylized "V" design mark incorporating the word VERIMARK. This registration was issued by the USPTO on May 22, 2018, in International Class 043, covering hotel and resort services. The design mark features a distinctive navy-and-gold color scheme that has become closely associated with VHG's brand identity and is prominently displayed across all

14. All three of the foregoing registrations have been maintained in full force and effect through the timely filing of all required affidavits of continued use and incontestability under Sections 8 and 15 of the Lanham Act, 15 U.S.C. §§ 1058, 1065, where applicable.

15. The VERIMARK word mark (U.S. Registration No. 3,742,618) has achieved incontestable status under 15 U.S.C. § 1065, as VHG has filed the required Section 15 declaration of incontestability and the mark has been in continuous use for five consecutive years following the date of registration, during which time there has been no final decision adverse to the owner's claim of ownership of such mark, right to register

16. VHG has used the VERIMARK marks continuously and without interruption since September 3, 2007. At no point during the more than 17 years since the VERIMARK marks were first used in commerce has VHG abandoned, discontinued, or interrupted its use of any VERIMARK mark. The VERIMARK marks have been used consistently and prominently in connection with VHG's hotel and resort services throughout this entire period.

III. VHG'S EXTENSIVE USE AND PROMOTION OF THE VERIMARK BRAND A. Property Portfolio

17. As noted above, VHG currently owns and operates 74 branded resort and hotel properties across 18 states and the Caribbean. Each of these properties prominently features the VERIMARK marks in its exterior and interior signage, all guest-facing materials and amenities, marketing and advertising collateral, online booking platforms, reservation confirmation communications, and social media presence. The VERIMARK mar

18. VHG's southeastern United States portfolio — the geographic region most relevant to this action — includes, among others, the following properties: a. "Verimark Oceanview," located at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305, a 312-room oceanfront luxury resort that has operated under the VERIMARK brand since its opening in 2010; b. "Verimark Bayshore Resort," located at 3400 W. Bay

19. Representative photographs of VHG's branded properties and signage, including the Verimark Oceanview in Fort Lauderdale and the Verimark Bayshore Resort in Tampa, are attached hereto as Exhibit D and incorporated by reference. B. Marketing and Advertising Expenditures

20. VHG makes significant annual investments in marketing and advertising to maintain and enhance the strength and recognition of the VERIMARK brand. In fiscal year 2024, VHG spent approximately $142 million on marketing and advertising activities, representing approximately 7.6% of its $1.87 billion in annual revenue. This level of expenditure is consistent with VHG's historical marketing investment patterns and ref

21. VHG's marketing expenditures encompass a broad range of channels and initiatives, including, but not limited to, national television advertising campaigns, digital advertising across major search engines and programmatic display networks, print media advertisements in leading travel, lifestyle, and business publications, social media campaigns and influencer partnerships, travel industry partnerships with airline

22. VHG operates the primary consumer-facing website www.verimark.com, which serves as the principal online portal for brand promotion, property information, online reservations, loyalty program management, and guest engagement. VHG also maintains active, verified social media accounts across all major platforms, including Northpoint Services Inc. (under the handle @verimarkhospitality), Kestrel Services Inc., X (for

23. Representative samples of VHG's marketing and advertising materials bearing the VERIMARK marks, including examples of print advertisements, digital campaign screenshots, and social media content, are attached hereto as Exhibit E and incorporated by reference. C. Consumer Recognition and Brand Strength

24. As a result of more than 17 years of continuous, extensive, and exclusive use of the VERIMARK marks in connection with luxury hospitality services, and as a result of VHG's substantial and sustained investment in marketing and brand development, the VERIMARK marks have acquired significant consumer recognition, goodwill, and secondary meaning in connection with VHG's hotel and resort services. Consumers in the Un

25. VHG's VERIMARK marks are inherently distinctive, as the term VERIMARK is a coined, fanciful mark that has no descriptive or generic meaning in the English language or in connection with hospitality services. The inherent distinctiveness of the VERIMARK marks has been further strengthened by over 17 years of substantial, continuous, and exclusive use and by the investment of hundreds of millions of dollars in prom

26. The strength and recognition of the VERIMARK brand is reflected in its consistent and prominent coverage in hospitality industry publications, travel media, and consumer review platforms. VHG's properties have been recognized in publications such as Ridgeway Corporation, Northgate Corporation, Ashgrove Partners LLC, and AAA Diamond Ratings, among others, and the VERIMARK brand is regularly referenced and identifi

IV. DISCOVERY OF DEFENDANT'S INFRINGING USE A. Formation and Launch of CVR

27. In approximately early 2024, VHG became aware that a new entity, Coral Verimark Resorts LLC ("CVR"), had begun using marks incorporating the word "VERIMARK" in connection with luxury coastal resort services in the southeastern United States. Specifically, CVR had adopted and was using the marks "VERIMARK RESORTS" as a word mark and a stylized logo bearing the letters "VR" alongside the word "Verimark" (the "VR Ve

28. Based on my investigation and review of publicly available records, CVR was formed as a Florida limited liability company on January 8, 2024, with its principal office located at 6810 Ocean Drive, Unit 3, Fort Lauderdale, Florida 33308. CVR's registered agent for service of process in Florida is Suncoast Filing Services LLC, located at 100 S.E. 3rd Avenue, Suite 210, Fort Lauderdale, Florida 33301.

29. CVR's managing member and founder is Rafael J. Medina. CVR's co-member and operations director is Gabriela N. Serrano. Based on publicly available information, neither Mr. Medina nor Ms. Serrano has any prior affiliation, licensing arrangement, or other relationship with VHG, and neither has ever been authorized by VHG to use the VERIMARK marks in any capacity. B. CVR's Infringing Marks and Activities

30. CVR uses the mark "VERIMARK RESORTS" as a word mark and the stylized logo "VR Verimark" in connection with boutique luxury coastal resort services in the southeastern United States. CVR's services are offered in the identical category of services covered by VHG's registered trademarks — namely, hotel and resort services in International Class 043.

31. Based on my investigation, CVR's first use in commerce of marks incorporating the word "VERIMARK" was on or about March 1, 2024. This is more than 16 years after VHG's first use in commerce of the VERIMARK mark on September 3, 2007. VHG therefore has clear and undisputed priority of use over CVR.

32. CVR registered the internet domain name www.verimarkresortsgroup.com on January 12, 2024, through the domain registrar NetLedger Domains Inc. The domain name incorporates VHG's registered VERIMARK mark and resolves to a fully operational commercial website promoting CVR's resort services. The website prominently features the "VERIMARK RESORTS" and "VR Verimark" marks throughout, including on its homepage, propert

33. CVR also created the Northpoint Services Inc. handle @verimarkresortsofficial on or about January 20, 2024. As of the date of this Declaration, CVR's Northpoint Services Inc. account is active and contains numerous posts promoting CVR's resort properties and services under the "VERIMARK RESORTS" and "VR Verimark" marks. The account's name and content are substantially similar in presentation and tone to VHG's est

34. Screenshots of CVR's website (www.verimarkresortsgroup.com), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit F and incorporated by reference.

35. Screenshots of CVR's Northpoint Services Inc. account (@verimarkresortsofficial), as captured on various dates between March 2024 and July 2025, are attached hereto as Exhibit G and incorporated by reference. C. CVR's Properties and Geographic Overlap

36. CVR opened its first resort property, marketed as "Verimark Resorts Fort Lauderdale," on or about March 15, 2024, at 6810 Ocean Drive, Fort Lauderdale, Florida 33308. This property is a boutique coastal resort offering luxury accommodations, spa services, and dining that directly compete with VHG's hospitality offerings in the Fort Lauderdale market.

37. CVR's Fort Lauderdale property is located approximately four (4) miles from VHG's established "Verimark Oceanview" resort at 1740 N. Fort Lauderdale Beach Boulevard, Fort Lauderdale, Florida 33305. The close geographic proximity of these two properties, both of which bear the "VERIMARK" name in connection with luxury resort services, substantially increases the likelihood that consumers will be confused as to the

38. CVR opened a second resort property, marketed as "Verimark Resorts Harborline Enterprises Head," on or about June 1, 2024, at 44 Lighthouse Road, Harborline Enterprises Head Island, South Carolina 29928. Like CVR's Fort Lauderdale property, this resort offers luxury coastal accommodations in a market where VHG has long-established brand presence and consumer awareness.

39. Based on my investigation, CVR has a third property currently under development in Destin, Florida, at 1025 Emerald Coast Parkway, Destin, Florida 32541. Public records and CVR's own marketing materials indicate that CVR intends to open this property under the "VERIMARK RESORTS" brand in late 2025 or early 2026.

40. All of CVR's operational and planned properties are located within VHG's core southeastern United States market, a region where VHG has maintained a strong and well-established branded presence for more than a decade. The geographic overlap between CVR's operations and VHG's established properties is extensive and directly implicates the markets and consumers most familiar with VHG's VERIMARK brand. D. Similarity

41. CVR's mark "VERIMARK RESORTS" incorporates VHG's federally registered VERIMARK mark in its entirety. CVR has merely appended the generic and descriptive term "RESORTS" to VHG's mark. The addition of a generic term describing the type of service offered does not diminish the confusing similarity between CVR's mark and VHG's registered mark; rather, the dominant element of CVR's mark remains the word "VERIMARK," wh

42. CVR's stylized "VR Verimark" logo employs a serif typeface and a blue-and-gold color palette that closely mirrors VHG's registered "V" Design Mark (U.S. Registration No. 5,489,701), which features a distinctive navy-and-gold color scheme. The visual similarity between CVR's logo and VHG's design mark is striking and extends beyond the use of the word "VERIMARK" to include similarities in typeface style, color cho

43. CVR's marks are used in connection with hotel and resort services — the identical services covered by VHG's federal trademark registrations in International Class 043. The identity of services further increases the likelihood that consumers encountering CVR's marks will be confused as to the source or sponsorship of CVR's services.

44. Side-by-side comparison images of VHG's registered marks and CVR's marks, illustrating the similarities in word elements, typeface, color palette, and overall commercial impression, are attached hereto as Exhibit H and incorporated by reference.

V. CVR'S PENDING TRADEMARK APPLICATION

45. On April 15, 2024, CVR filed U.S. Trademark Application Serial No. 98/432,117 with the USPTO, seeking registration of the mark "VERIMARK RESORTS" in International Class 043 for hotel and resort services. This application was filed more than 16 years after VHG's first use of the VERIMARK mark in commerce and more than 15 years after the issuance of VHG's first federal trademark registration.

46. CVR's trademark application was published for opposition in the Official Gazette on November 5, 2024. Upon learning of the publication, VHG timely filed a Notice of Opposition on December 3, 2024, initiating Opposition No. 91/287,456 before the Trademark Trial and Appeal Board ("TTAB"). In the Notice of Opposition, VHG asserted, among other grounds, that CVR's proposed mark is confusingly similar to VHG's registe

47. The TTAB proceeding in Opposition No. 91/287,456 is currently suspended by stipulation of the parties, entered by the TTAB on February 18, 2025, pending the outcome of this district court action. The suspension was requested because the claims and issues in the TTAB proceeding substantially overlap with the claims asserted by VHG in this litigation, and the parties agreed that resolution of this action would mate

VI. CEASE-AND-DESIST COMMUNICATIONS A. First Cease-and-Desist Letter — May 14, 2024

48. Promptly upon discovering CVR's infringing use of marks incorporating VHG's VERIMARK mark, VHG took immediate action to protect its trademark rights. On May 14, 2024, VHG's General Counsel, Sonia M. Trevino, sent an initial cease-and-desist letter to CVR at its principal office address, directed to the attention of Rafael J. Medina as managing member.

49. The May 14, 2024 letter informed CVR of VHG's federal trademark registrations, VHG's extensive history of use of the VERIMARK marks, and VHG's superior rights in the VERIMARK marks. The letter demanded that CVR immediately cease all use of marks incorporating "VERIMARK" in connection with hospitality services, withdraw its pending U.S. Trademark Application Serial No. 98/432,117, disable the domain name www.verim

50. A true and correct copy of the cease-and-desist letter dated May 14, 2024, from Sonia M. Trevino to CVR, is attached hereto as Exhibit I and incorporated by reference. B. CVR's Response — June 7, 2024

51. On June 7, 2024, VHG received a response to its cease-and-desist letter from CVR's counsel, Natasha K. Okonkwo of Alcántara Reeves LLP, located at 200 Las Olas Circle, Suite 700, Fort Lauderdale, Florida 33301. In her response, Ms. Okonkwo denied that CVR's use of "VERIMARK RESORTS" constituted trademark infringement or created a likelihood of confusion with VHG's marks. Ms. Okonkwo further asserted, on behalf of

52. VHG strongly disputes CVR's characterization of "VERIMARK" as descriptive or generic. As described above, VERIMARK is a coined, fanciful mark that was created by VHG and has no meaning independent of VHG's trademark rights. VHG is unaware of any usage of the term "Verimark" to mean "verified mark of quality" in the hospitality industry or in any other context prior to VHG's first use of the mark in 2007, and CVR'

53. A true and correct copy of CVR's response letter dated June 7, 2024, from Natasha K. Okonkwo of Alcántara Reeves LLP, is attached hereto as Exhibit J and incorporated by reference. C. Second Cease-and-Desist Letter — August 12, 2024

54. After receiving CVR's response and in light of CVR's refusal to cease its infringing activities, VHG engaged the law firm of Calderwood & Harkness LLP as outside counsel to assist in protecting VHG's trademark rights. On August 12, 2024, Marcus Delgado of Calderwood & Harkness LLP sent a detailed second cease-and-desist letter to CVR's counsel, Natasha K. Okonkwo at Alcántara Reeves LLP.