Contract analysis

Section 1: Purpose of This Notice This Litigation Hold Notice is issued by the Office of the General Counsel of Verimark Hospitality Group Inc. ("Verimark," "VHG," or the "Company") to inform you of your obligation to immediately preserve all documents and electronically stored information ("ESI") that may be relevant to anticipated litigation. Your compliance with this Notice is mandatory. Please read it carefully a

1. Inform you that VHG reasonably anticipates litigation arising from the claims described herein;

2. Identify the categories of documents and ESI that must be preserved;

3. Define the time period and subject matter scope of the preservation obligation;

4. Describe your individual obligations as a custodian of potentially relevant information; and

5. Provide you with points of contact for questions regarding the hold. Compliance with this Notice is mandatory. Failure to comply with the preservation obligations described herein may result in severe legal consequences for VHG, including, but not limited to, court-imposed sanctions, adverse inference instructions, spoliation findings, and monetary penalties. In addition, individual employees who fail to comply wi

Section 2: Scope of the Litigation Hold — Subject Matter The allegations set forth in the demand letter from Garza, Linden & Okafor LLP encompass five distinct categories of potential wage-and-hour violations across seven Verimark-branded hotel and resort properties in the Tampa Bay, Orlando, and South Florida markets. Each of these categories implicates different types of documents, data, and communications that mus

Section 3: Preservation Period All documents and ESI within the scope of this Litigation Hold must be preserved from January 1, 2021 through the present and continuing until further notice. This date range has been established to reflect the longest potentially applicable statute of limitations. The five-year limitations period under Florida Statutes § 95.11(2)(b) for claims arising under the Florida Constitution's m

Section 4: Properties Covered This Litigation Hold applies to documents and ESI related to the following seven Verimark-branded hotel and resort properties, all of which are specifically identified in the demand letter from Garza, Linden & Okafor LLP: With respect to Property No. 3 (Verimark Shores Clearwater), please note that this property is owned by Palomar Realty Partners LLC and is managed by VHG pursuant to th

Section 5: Categories of Documents and ESI to Be Preserved The following categories describe the types of documents and ESI that must be preserved under this Litigation Hold. These categories are intended to be illustrative, not exhaustive. If you possess or control documents or ESI that you believe may be relevant to the subject matter of this hold but that do not fall neatly within any of the categories listed belo

Section 6: Your Obligations as a Custodian As an identified custodian under this Litigation Hold, you have the following specific obligations: Suspend All Routine Destruction. You must immediately suspend any automatic or manual document-destruction, deletion, or recycling process that could affect documents or ESI within the scope of this hold. This includes, without limitation, email auto-purge settings (such as ru

Section 7: What You Should NOT Do The following actions are strictly prohibited for the duration of this Litigation Hold: Do not delete or destroy. Do not delete, discard, destroy, shred, recycle, or otherwise dispose of any document, email, file, record, or data that falls within the categories described in this Notice, regardless of whether you believe the document is duplicative, unimportant, outdated, or irreleva

Section 8: Coordination with IT and Luminos Payroll Solutions Inc. VHG is implementing technical preservation measures at the enterprise level to supplement the individual custodian obligations described in this Notice. Specifically: Internal IT Coordination. VHG's Corporate IT Administrator, Malik P. Jefferson, is coordinating directly with Calderwood & Harkness LLP to implement the following technical preservation

Section 9: Identified Custodians This Litigation Hold Notice is being distributed to the following twenty-three (23) custodians, who have been identified, in consultation with outside counsel, as individuals who are likely to possess, control, or have access to documents and ESI within the scope of this hold. Corporate-Level Custodians. Property-Level HR Managers (7) Property-Level General Managers (7) Department Hea

Section 10: Questions and Contacts If you have any questions about this Litigation Hold Notice, your preservation obligations, the scope of the hold, or whether a particular document, data source, or communication falls within the categories described herein, you should contact one of the following individuals: Internal Contacts. Devin K. Arroyo General Counsel, Verimark Hospitality Group Inc. 2400 Bayshore Boulevard

Section 11: Acknowledgment and Certification Each custodian who receives this Litigation Hold Notice is required to sign and return the Acknowledgment and Certification form below within five (5) business days of receipt of this Notice. Completed and signed Acknowledgment and Certification forms should be returned to: Devin K. Arroyo, General Counsel, Verimark Hospitality Group Inc., 2400 Bayshore Boulevard, Suite 11