[sheet: Checklist Header]

Field	Value
Document Title	Closing Checklist — Settlement Implementation
Matter	Verimark Hospitality Group Inc. v. Coastal Palms Franchise Holdings LLC et al.
Case No.	1021-00006
Court	Circuit Court of the 17th Judicial Circuit, Broward County, Florida
Prepared By	Yuki Nakamura, Lead Associate, Calderwood & Harkness LLP
Date Prepared	April 23, 2024
Settlement Agreement Date	April 22, 2024
Settlement Amount	$87,500,000
Client	Verimark Hospitality Group Inc. (Nasdaq: VHMK)
Client Contact — Legal	Renata Solis-Vega, SVP & General Counsel
Client Contact — Finance	Martin Holcomb, EVP & CFO
Client Contact — Franchise Ops	Deidre Langston, SVP, Franchise Operations
Responsible Partner	Priya Anand (FL Bar No. 0087451)
Billing Partner	Douglas Carmichael (FL Bar No. 0093217)
Opposing Counsel	Whitfield, Barrow & Crane LLP — Nathan Whitfield III (lead), Gabriela Montes
Defendant Lender	Ironclad National Bank — Devon Schultz, SVP, Commercial Real Estate Lending

[sheet: Closing Checklist]

Item No.	Category	Action Item Description	Responsible Party	Counterparty / Recipient	Target Date	Actual Completion Date	Status	Notes / Reference
1	Settlement Agreement Execution	Circulate execution-version Settlement Agreement and Mutual Release (52 pages + Exhibits A–F) to all signatories for wet-ink and electronic signature	Yuki Nakamura / Calderwood & Harkness LLP	All parties: Verimark Hospitality Group Inc., Coastal Palms Franchise Holdings LLC, Randall Brecker, Theresa Brecker, Nolan Prescott, Gulf Breeze Hospitality LLC, Savannah Lodging Partners LLC, Suncoast Room Management Inc.	April 22, 2024	April 22, 2024	Complete	Final execution version dated April 22, 2024; file: final-settlement-agreement-execution.docx
2	Settlement Agreement Execution	Collect and confirm fully executed signature pages from all parties and counterparts	Yuki Nakamura / Calderwood & Harkness LLP	Whitfield, Barrow & Crane LLP (Gabriela Montes) — collecting defendant signatures	April 22, 2024	April 22, 2024	Complete	Confirmed all 8 signatories executed; original counterparts to be held by C&H
3	Settlement Agreement Execution	Distribute fully executed copies of Settlement Agreement to all parties and counsel of record	Yuki Nakamura / Calderwood & Harkness LLP	Renata Solis-Vega (Verimark); Nathan Whitfield III (WBC); all signatory entities	April 23, 2024	In Progress	Electronic copies distributed; original counterparts to follow by courier
4	Cash Payment at Closing	Confirm wire transfer of $25,000,000 from Ironclad National Bank escrow account to Verimark Hospitality Group Inc. designated account	Martin Holcomb (Verimark CFO)	Ironclad National Bank (Devon Schultz, SVP, Commercial Real Estate Lending), 225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303	April 22, 2024	April 22, 2024	Complete	Wire reference to be confirmed; $25M initial cash payment per Settlement Agreement § 3.1 and Exhibit A
5	Cash Payment at Closing	Obtain and file wire transfer confirmation / receipt from receiving bank	Carlos Espinoza / Calderwood & Harkness LLP	Martin Holcomb (Verimark)	April 23, 2024	In Progress	Request confirmation from Verimark treasury
6	Security Interest — UCC Filings	Prepare and finalize UCC-1 Financing Statement for filing with Florida Secured Transaction Registry; Debtor: Coastal Palms Franchise Holdings LLC (9500 Gulf Shore Drive, Suite 450, Naples, FL 34108); Secured Party: Verimark Hospitality Group Inc. (2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301)	Yuki Nakamura / Calderwood & Harkness LLP	Florida Secured Transaction Registry	April 24, 2024	In Progress	Draft prepared April 24, 2024 (file: ucc-1-financing-statement-draft.docx); collateral: first-priority lien on 8 unencumbered hotel properties (aggregate appraised value: $71.2 million)
7	Security Interest — UCC Filings	File UCC-1 Financing Statement with Florida Secured Transaction Registry and obtain filing confirmation/stamped copy	Yuki Nakamura / Calderwood & Harkness LLP	Florida Secured Transaction Registry	April 26, 2024	Open	Confirm filing number and effective date upon filing
8	Security Interest — UCC Filings	Conduct UCC lien search post-filing to confirm perfection and priority of Verimark's security interest in 8 unencumbered hotel properties	Carlos Espinoza / Calderwood & Harkness LLP	Florida Secured Transaction Registry	April 30, 2024	Open	Search against Debtor: Coastal Palms Franchise Holdings LLC
9	Ironclad National Bank — Lender Notices	Send notice to Ironclad National Bank re: settlement and Verimark's junior lien position on 8 unencumbered properties; request written acknowledgment/consent	Priya Anand / Calderwood & Harkness LLP	Devon Schultz, SVP, Ironclad National Bank, 225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303	April 24, 2024	In Progress	Letter dated April 24, 2024 (file: letter-ironclad-notice-settlement-lien.docx); Ironclad holds first-lien mortgages on 18 of 22 properties with ~$94M aggregate outstanding balance
10	Ironclad National Bank — Lender Notices	Obtain and file written acknowledgment/consent from Ironclad National Bank regarding Verimark's junior lien	Yuki Nakamura / Calderwood & Harkness LLP	Devon Schultz, Ironclad National Bank	May 7, 2024	Open	Follow up if no response by May 3, 2024
11	Personal Guaranties	Obtain executed Personal Guaranty from Randall Brecker in favor of Verimark per Settlement Agreement Exhibit E	Whitfield, Barrow & Crane LLP (Gabriela Montes)	Randall Brecker → Verimark Hospitality Group Inc.	April 22, 2024	April 22, 2024	Complete	Guaranty delivered concurrently with Settlement Agreement execution
12	Personal Guaranties	Obtain executed Personal Guaranty from Nolan Prescott in favor of Verimark per Settlement Agreement Exhibit E	Whitfield, Barrow & Crane LLP (Gabriela Montes)	Nolan Prescott → Verimark Hospitality Group Inc.	April 22, 2024	April 22, 2024	Complete	Guaranty delivered concurrently with Settlement Agreement execution
13	Personal Guaranties	Confirm original executed guaranty forms are in C&H possession and provide copies to Renata Solis-Vega	Yuki Nakamura / Calderwood & Harkness LLP	Renata Solis-Vega (Verimark)	April 25, 2024	Open	Originals to be maintained in matter file
14	Franchise Surrender — Notices	Prepare and send Franchise Surrender Notices for each of the 14 surrendered properties using approved template	Yuki Nakamura / Carlos Espinoza / Calderwood & Harkness LLP	Coastal Palms Franchise Holdings LLC, c/o Whitfield, Barrow & Crane LLP, 1221 Brickell Avenue, Suite 3000, Miami, FL 33131	April 25, 2024	In Progress	Template: franchise-surrender-notice-template.docx; 14 individual notices customized with property-specific information per Exhibit B
15	Franchise Surrender — Notices	Send Franchise Surrender Notice — Sarasota Property 1 (Verimark Suites)	Yuki Nakamura	Coastal Palms / Gulf Breeze Hospitality LLC	April 25, 2024	Open	De-identification deadline: August 20, 2024 (120 days from April 22, 2024)
16	Franchise Surrender — Notices	Send Franchise Surrender Notice — Sarasota Property 2 (Verimark Suites)	Yuki Nakamura	Coastal Palms / Gulf Breeze Hospitality LLC	April 25, 2024	Open	De-identification deadline: August 20, 2024
17	Franchise Surrender — Notices	Send Franchise Surrender Notice — Sarasota Property 3 (Verimark Suites)	Yuki Nakamura	Coastal Palms / Gulf Breeze Hospitality LLC	April 25, 2024	Open	De-identification deadline: August 20, 2024
18	Franchise Surrender — Notices	Send Franchise Surrender Notices — Fort Myers Properties 1–4 (Verimark Suites)	Yuki Nakamura	Coastal Palms / Gulf Breeze Hospitality LLC	April 25, 2024	Open	4 properties; de-identification deadline: August 20, 2024
19	Franchise Surrender — Notices	Send Franchise Surrender Notices — Jacksonville Properties 1–2 (Verimark Suites)	Yuki Nakamura	Coastal Palms Franchise Holdings LLC	April 25, 2024	Open	2 properties; de-identification deadline: August 20, 2024
20	Franchise Surrender — Notices	Send Franchise Surrender Notices — Savannah, GA Properties 1–3 (Verimark Suites)	Yuki Nakamura	Coastal Palms / Savannah Lodging Partners LLC	April 25, 2024	Open	3 properties; de-identification deadline: August 20, 2024
21	Franchise Surrender — Notices	Send Franchise Surrender Notices — Brunswick, GA Properties 1–2 (Verimark Suites/Select)	Yuki Nakamura	Coastal Palms / Savannah Lodging Partners LLC	April 25, 2024	Open	2 properties; de-identification deadline: August 20, 2024
22	Franchise Surrender — De-identification	Coordinate with Deidre Langston (SVP, Franchise Operations) to establish de-identification monitoring schedule for 14 surrendered properties (removal of Verimark branding, signage, proprietary systems)	Yuki Nakamura / Calderwood & Harkness LLP	Deidre Langston (Verimark); Coastal Palms	May 15, 2024	Open	120-day compliance deadline: August 20, 2024; consequences of non-compliance per Settlement Agreement
23	Retained Properties — New FLAs	Execute new 10-year Franchise License Agreements for 8 retained properties per Settlement Agreement Exhibit C: Naples (4 properties), Marco Island (2 properties), Tampa (2 properties)	Renata Solis-Vega / Deidre Langston (Verimark)	Coastal Palms Franchise Holdings LLC	May 22, 2024	Open	New FLAs incorporate enhanced audit and reporting requirements per Exhibit D; form of new FLA attached as Exhibit C to Settlement Agreement
24	Retained Properties — New FLAs	Confirm delivery of 8 fully executed new FLAs and distribute to all relevant parties	Yuki Nakamura / Calderwood & Harkness LLP	Renata Solis-Vega; Deidre Langston; Whitfield, Barrow & Crane LLP	May 31, 2024	Open

25	Enhanced Audit Protocol	Confirm implementation of enhanced audit protocol (Exhibit D) for 8 retained properties: quarterly audits, real-time POS integration with Verimark's revenue-management system, Coastal Palms bears all audit costs for 5 years	Deidre Langston (Verimark SVP, Franchise Operations)	Coastal Palms Franchise Holdings LLC	June 30, 2024	Open	Per Settlement Agreement Exhibit D; ongoing monitoring per post-settlement compliance memo
26	Court Filings — Dismissal	Prepare Joint Stipulation of Dismissal with Prejudice for filing in Case No. 1021-00006, Circuit Court of the 17th Judicial Circuit, Broward County, Florida	Yuki Nakamura / Calderwood & Harkness LLP	Whitfield, Barrow & Crane LLP (Nathan Whitfield III) — co-signature required	April 25, 2024	In Progress	Dismisses all claims (Counts I–X) and Coastal Palms' counterclaim with prejudice; each party bears own costs and fees; references settlement without disclosing terms
27	Court Filings — Dismissal	Obtain co-signature from Nathan Whitfield III (WBC) on Joint Stipulation of Dismissal	Yuki Nakamura / Calderwood & Harkness LLP	Nathan Whitfield III, Whitfield, Barrow & Crane LLP	April 26, 2024	Open	Priya Anand (FL Bar No. 0087451) signs for Verimark
28	Court Filings — Dismissal	File Joint Stipulation of Dismissal with Prejudice with Clerk of Court, Broward County; obtain Order of Dismissal from Hon. Richard M. Calloway	Yuki Nakamura / Calderwood & Harkness LLP	Clerk of Court, 17th Judicial Circuit, Broward County, FL	April 26, 2024	Open	Confirm entry of Order of Dismissal; distribute stamped copies to client and opposing counsel
29	Insurance Notification	Notify Pinnacle Indemnity Insurance Co. of settlement and case closure under Policy No. PLI-VHG-2021-08874	Douglas Carmichael / Calderwood & Harkness LLP	Arthur Baines, Claims Counsel, Pinnacle Indemnity Insurance Co.	April 30, 2024	Open	Include final litigation-cost summary for coverage-claim purposes
30	Structured Payment Schedule — Calendar	Establish internal calendar/tickler system for monitoring 8 semi-annual structured payments of $7,812,500 each; first payment due October 22, 2024; final payment due April 22, 2028; interest at 6.5% per annum (simple) on outstanding balance	Yuki Nakamura / Calderwood & Harkness LLP	Renata Solis-Vega; Martin Holcomb (Verimark)	April 30, 2024	Open	Per Settlement Agreement § 3.2 and Exhibit A; total structured portion: $62,500,000; acceleration triggers per Settlement Agreement § 5
31	Structured Payment Schedule — Calendar	Provide Verimark with detailed payment schedule including principal, interest calculations, and cumulative totals for each of 8 installments	Carlos Espinoza / Calderwood & Harkness LLP	Martin Holcomb, EVP & CFO, Verimark	April 30, 2024	Open	Per Exhibit A to Settlement Agreement
32	SEC Disclosure Coordination	Coordinate with Verimark's securities counsel regarding disclosure of settlement as 'material litigation settlement' in Q2 2024 Form 10-Q, consistent with confidentiality provisions of Settlement Agreement	Priya Anand / Calderwood & Harkness LLP	Renata Solis-Vega (Verimark GC); Martin Holcomb (Verimark CFO)	May 15, 2024	Open	Verimark trades on Nasdaq under ticker VHMK; settlement amount and detailed terms remain confidential subject to SEC disclosure obligations
33	Matter Closing — Calderwood & Harkness	Prepare and distribute Matter Closing Memorandum documenting final disposition, fee summary, key learnings, and file-retention instructions	Priya Anand / Douglas Carmichael	Internal — Calderwood & Harkness LLP matter file	April 26, 2024	In Progress	Fee summary: $6.82M C&H fees + $1.85M Ridgeline Forensic Advisory + $742K Nexagen Document Solutions + $38K Everwood Dispute Resolution + $124.5K court reporter/deposition costs = $9,574,500 total
34	Matter Closing — Calderwood & Harkness	Transmit final invoice and cumulative fee summary to Verimark (Martin Holcomb); March–April 2024: $387,400 fees + $14,200 costs	Douglas Carmichael / Calderwood & Harkness LLP	Martin Holcomb, EVP & CFO, Verimark Hospitality Group Inc., 2400 East Las Olas Blvd., Suite 3100, Fort Lauderdale, FL 33301	April 30, 2024	Open	Cumulative matter total: $9,574,500 (fees and expenses combined)

[sheet: Surrendered Properties]

Property No.	Property Name / Identifier	Brand	City	State	Owning Entity	De-identification Deadline	De-identification Status
1	Sarasota Property 1	Verimark Suites	Sarasota	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
2	Sarasota Property 2	Verimark Suites	Sarasota	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
3	Sarasota Property 3	Verimark Suites	Sarasota	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
4	Fort Myers Property 1	Verimark Suites	Fort Myers	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
5	Fort Myers Property 2	Verimark Suites	Fort Myers	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
6	Fort Myers Property 3	Verimark Suites	Fort Myers	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
7	Fort Myers Property 4	Verimark Suites	Fort Myers	FL	Gulf Breeze Hospitality LLC	August 20, 2024	Pending
8	Jacksonville Property 1	Verimark Suites	Jacksonville	FL	Coastal Palms Franchise Holdings LLC	August 20, 2024	Pending
9	Jacksonville Property 2	Verimark Suites	Jacksonville	FL	Coastal Palms Franchise Holdings LLC	August 20, 2024	Pending
10	Savannah Property 1	Verimark Suites	Savannah	GA	Savannah Lodging Partners LLC	August 20, 2024	Pending
11	Savannah Property 2	Verimark Suites	Savannah	GA	Savannah Lodging Partners LLC	August 20, 2024	Pending
12	Savannah Property 3	Verimark Suites	Savannah	GA	Savannah Lodging Partners LLC	August 20, 2024	Pending
13	Brunswick Property 1	Verimark Suites	Brunswick	GA	Savannah Lodging Partners LLC	August 20, 2024	Pending
14	Brunswick Property 2	Verimark Select	Brunswick	GA	Savannah Lodging Partners LLC	August 20, 2024	Pending

[sheet: Retained Properties]

Property No.	Property Name / Identifier	Brand	City	State	Owning Entity	New FLA Term	Appraised Value	Encumbered by Ironclad Mortgage	Serves as Verimark Collateral	New FLA Execution Status
1	Naples Property 1	Verimark Suites	Naples	FL	Gulf Breeze Hospitality LLC	10 years from execution	$8,900,000	No	Yes	Pending
2	Naples Property 2	Verimark Suites	Naples	FL	Gulf Breeze Hospitality LLC	10 years from execution	$9,200,000	No	Yes	Pending
3	Naples Property 3	Verimark Suites	Naples	FL	Gulf Breeze Hospitality LLC	10 years from execution	$8,750,000	No	Yes	Pending
4	Naples Property 4	Verimark Suites	Naples	FL	Gulf Breeze Hospitality LLC	10 years from execution	$9,100,000	No	Yes	Pending
5	Marco Island Property 1	Verimark Select	Marco Island	FL	Gulf Breeze Hospitality LLC	10 years from execution	$10,450,000	No	Yes	Pending
6	Marco Island Property 2	Verimark Select	Marco Island	FL	Gulf Breeze Hospitality LLC	10 years from execution	$9,800,000	No	Yes	Pending
7	Tampa Property 1	Verimark Suites	Tampa	FL	Coastal Palms Franchise Holdings LLC	10 years from execution	$7,600,000	No	Yes	Pending
8	Tampa Property 2	Verimark Suites	Tampa	FL	Coastal Palms Franchise Holdings LLC	10 years from execution	$7,400,000	No	Yes	Pending

[sheet: Payment Schedule]

Payment No.	Payment Type	Due Date	Principal Amount	Interest Rate	Interest Period	Estimated Interest Due	Total Payment Due	Cumulative Principal Paid	Outstanding Balance After Payment	Status
0	Cash at Closing	April 22, 2024	$25,000,000	N/A	N/A	$0	$25,000,000	$25,000,000	$62,500,000	Complete
1	Semi-Annual Installment 1	October 22, 2024	$7,812,500	6.5% per annum, simple	April 22, 2024 – October 22, 2024 (6 months)	$2,031,250	$9,843,750	$32,812,500	$54,687,500	Pending
2	Semi-Annual Installment 2	April 22, 2025	$7,812,500	6.5% per annum, simple	October 22, 2024 – April 22, 2025 (6 months)	$1,777,344	$9,589,844	$40,625,000	$46,875,000	Pending
3	Semi-Annual Installment 3	October 22, 2025	$7,812,500	6.5% per annum, simple	April 22, 2025 – October 22, 2025 (6 months)	$1,523,438	$9,335,938	$48,437,500	$39,062,500	Pending
4	Semi-Annual Installment 4	April 22, 2026	$7,812,500	6.5% per annum, simple	October 22, 2025 – April 22, 2026 (6 months)	$1,269,531	$9,082,031	$56,250,000	$31,250,000	Pending
5	Semi-Annual Installment 5	October 22, 2026	$7,812,500	6.5% per annum, simple	April 22, 2026 – October 22, 2026 (6 months)	$1,015,625	$8,828,125	$64,062,500	$23,437,500	Pending
6	Semi-Annual Installment 6	April 22, 2027	$7,812,500	6.5% per annum, simple	October 22, 2026 – April 22, 2027 (6 months)	$761,719	$8,574,219	$71,875,000	$15,625,000	Pending
7	Semi-Annual Installment 7	October 22, 2027	$7,812,500	6.5% per annum, simple	April 22, 2027 – October 22, 2027 (6 months)	$507,813	$8,320,313	$79,687,500	$7,812,500	Pending
8	Semi-Annual Installment 8 (Final)	April 22, 2028	$7,812,500	6.5% per annum, simple	October 22, 2027 – April 22, 2028 (6 months)	$253,906	$8,066,406	$87,500,000	$0	Pending

[sheet: Key Contacts]

Name	Title / Role	Organization	Address	Phone	Email	Notes
Priya Anand	Responsible Partner (FL Bar No. 0087451)	Calderwood & Harkness LLP	110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301	Lead counsel for Verimark
Douglas Carmichael	Billing Partner (FL Bar No. 0093217)	Calderwood & Harkness LLP	110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301
Yuki Nakamura	Lead Associate (FL Bar No. 0119644)	Calderwood & Harkness LLP	110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301	Closing checklist coordinator
Carlos Espinoza	Working Associate (FL Bar No. 0128903)	Calderwood & Harkness LLP	110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301
Renata Solis-Vega	SVP & General Counsel	Verimark Hospitality Group Inc.	2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301	Primary client contact — legal
Martin Holcomb	EVP & Chief Financial Officer	Verimark Hospitality Group Inc.	2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301	Primary client contact — finance; wire transfer coordination
Deidre Langston	SVP, Franchise Operations	Verimark Hospitality Group Inc.	2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301	De-identification monitoring; new FLA execution; enhanced audit protocol
Nathan Whitfield III	Senior Partner; lead defense counsel	Whitfield, Barrow & Crane LLP	1221 Brickell Avenue, Suite 3000, Miami, FL 33131	Co-signatory on Joint Stipulation of Dismissal
Gabriela Montes	Partner; discovery & motions	Whitfield, Barrow & Crane LLP	1221 Brickell Avenue, Suite 3000, Miami, FL 33131	Coordinating defendant signature pages and guaranty delivery
Randall Brecker	Managing Member (60% equity)	Coastal Palms Franchise Holdings LLC	9500 Gulf Shore Drive, Suite 450, Naples, FL 34108	Personal guarantor; signatory
Nolan Prescott	Member (25% equity); passive investor	Coastal Palms Franchise Holdings LLC	9500 Gulf Shore Drive, Suite 450, Naples, FL 34108	Personal guarantor; signatory
Devon Schultz	SVP, Commercial Real Estate Lending	Ironclad National Bank	225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303	Lender notice recipient; escrow wire coordination; ~$94M first-lien mortgage holder
Arthur Baines	Claims Counsel	Pinnacle Indemnity Insurance Co.	Policy No. PLI-VHG-2021-08874; notify of settlement and case closure
Hon. Richard M. Calloway	Circuit Judge	17th Judicial Circuit, Broward County, FL	Assigned judge; Order of Dismissal to be entered

[sheet: Checklist Header]
Field | Value
Document Title | Closing Checklist — Settlement Implementation
Matter | Verimark Hospitality Group Inc. v. Coastal Palms Franchise Holdings LLC et al.
Case No. | 1021-00006
Court | Circuit Court of the 17th Judicial Circuit, Broward County, Florida
Prepared By | Yuki Nakamura, Lead Associate, Calderwood & Harkness LLP
Date Prepared | April 23, 2024
Settlement Agreement Date | April 22, 2024
Settlement Amount | $87,500,000
Client | Verimark Hospitality Group Inc. (Nasdaq: VHMK)
Client Contact — Legal | Renata Solis-Vega, SVP & General Counsel
Client Contact — Finance | Martin Holcomb, EVP & CFO
Client Contact — Franchise Ops | Deidre Langston, SVP, Franchise Operations
Responsible Partner | Priya Anand (FL Bar No. 0087451)
Billing Partner | Douglas Carmichael (FL Bar No. 0093217)
Opposing Counsel | Whitfield, Barrow & Crane LLP — Nathan Whitfield III (lead), Gabriela Montes
Defendant Lender | Ironclad National Bank — Devon Schultz, SVP, Commercial Real Estate Lending
[sheet: Closing Checklist]
Item No. | Category | Action Item Description | Responsible Party | Counterparty / Recipient | Target Date | Actual Completion Date | Status | Notes / Reference
1 | Settlement Agreement Execution | Circulate execution-version Settlement Agreement and Mutual Release (52 pages + Exhibits A–F) to all signatories for wet-ink and electronic signature | Yuki Nakamura / Calderwood & Harkness LLP | All parties: Verimark Hospitality Group Inc., Coastal Palms Franchise Holdings LLC, Randall Brecker, Theresa Brecker, Nolan Prescott, Gulf Breeze Hospitality LLC, Savannah Lodging Partners LLC, Suncoast Room Management Inc. | April 22, 2024 | April 22, 2024 | Complete | Final execution version dated April 22, 2024; file: final-settlement-agreement-execution.docx
2 | Settlement Agreement Execution | Collect and confirm fully executed signature pages from all parties and counterparts | Yuki Nakamura / Calderwood & Harkness LLP | Whitfield, Barrow & Crane LLP (Gabriela Montes) — collecting defendant signatures | April 22, 2024 | April 22, 2024 | Complete | Confirmed all 8 signatories executed; original counterparts to be held by C&H
3 | Settlement Agreement Execution | Distribute fully executed copies of Settlement Agreement to all parties and counsel of record | Yuki Nakamura / Calderwood & Harkness LLP | Renata Solis-Vega (Verimark); Nathan Whitfield III (WBC); all signatory entities | April 23, 2024 | In Progress | Electronic copies distributed; original counterparts to follow by courier
4 | Cash Payment at Closing | Confirm wire transfer of $25,000,000 from Ironclad National Bank escrow account to Verimark Hospitality Group Inc. designated account | Martin Holcomb (Verimark CFO) | Ironclad National Bank (Devon Schultz, SVP, Commercial Real Estate Lending), 225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303 | April 22, 2024 | April 22, 2024 | Complete | Wire reference to be confirmed; $25M initial cash payment per Settlement Agreement § 3.1 and Exhibit A
5 | Cash Payment at Closing | Obtain and file wire transfer confirmation / receipt from receiving bank | Carlos Espinoza / Calderwood & Harkness LLP | Martin Holcomb (Verimark) | April 23, 2024 | In Progress | Request confirmation from Verimark treasury
6 | Security Interest — UCC Filings | Prepare and finalize UCC-1 Financing Statement for filing with Florida Secured Transaction Registry; Debtor: Coastal Palms Franchise Holdings LLC (9500 Gulf Shore Drive, Suite 450, Naples, FL 34108); Secured Party: Verimark Hospitality Group Inc. (2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301) | Yuki Nakamura / Calderwood & Harkness LLP | Florida Secured Transaction Registry | April 24, 2024 | In Progress | Draft prepared April 24, 2024 (file: ucc-1-financing-statement-draft.docx); collateral: first-priority lien on 8 unencumbered hotel properties (aggregate appraised value: $71.2 million)
7 | Security Interest — UCC Filings | File UCC-1 Financing Statement with Florida Secured Transaction Registry and obtain filing confirmation/stamped copy | Yuki Nakamura / Calderwood & Harkness LLP | Florida Secured Transaction Registry | April 26, 2024 | Open | Confirm filing number and effective date upon filing
8 | Security Interest — UCC Filings | Conduct UCC lien search post-filing to confirm perfection and priority of Verimark's security interest in 8 unencumbered hotel properties | Carlos Espinoza / Calderwood & Harkness LLP | Florida Secured Transaction Registry | April 30, 2024 | Open | Search against Debtor: Coastal Palms Franchise Holdings LLC
9 | Ironclad National Bank — Lender Notices | Send notice to Ironclad National Bank re: settlement and Verimark's junior lien position on 8 unencumbered properties; request written acknowledgment/consent | Priya Anand / Calderwood & Harkness LLP | Devon Schultz, SVP, Ironclad National Bank, 225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303 | April 24, 2024 | In Progress | Letter dated April 24, 2024 (file: letter-ironclad-notice-settlement-lien.docx); Ironclad holds first-lien mortgages on 18 of 22 properties with ~$94M aggregate outstanding balance
10 | Ironclad National Bank — Lender Notices | Obtain and file written acknowledgment/consent from Ironclad National Bank regarding Verimark's junior lien | Yuki Nakamura / Calderwood & Harkness LLP | Devon Schultz, Ironclad National Bank | May 7, 2024 | Open | Follow up if no response by May 3, 2024
11 | Personal Guaranties | Obtain executed Personal Guaranty from Randall Brecker in favor of Verimark per Settlement Agreement Exhibit E | Whitfield, Barrow & Crane LLP (Gabriela Montes) | Randall Brecker → Verimark Hospitality Group Inc. | April 22, 2024 | April 22, 2024 | Complete | Guaranty delivered concurrently with Settlement Agreement execution
12 | Personal Guaranties | Obtain executed Personal Guaranty from Nolan Prescott in favor of Verimark per Settlement Agreement Exhibit E | Whitfield, Barrow & Crane LLP (Gabriela Montes) | Nolan Prescott → Verimark Hospitality Group Inc. | April 22, 2024 | April 22, 2024 | Complete | Guaranty delivered concurrently with Settlement Agreement execution
13 | Personal Guaranties | Confirm original executed guaranty forms are in C&H possession and provide copies to Renata Solis-Vega | Yuki Nakamura / Calderwood & Harkness LLP | Renata Solis-Vega (Verimark) | April 25, 2024 | Open | Originals to be maintained in matter file
14 | Franchise Surrender — Notices | Prepare and send Franchise Surrender Notices for each of the 14 surrendered properties using approved template | Yuki Nakamura / Carlos Espinoza / Calderwood & Harkness LLP | Coastal Palms Franchise Holdings LLC, c/o Whitfield, Barrow & Crane LLP, 1221 Brickell Avenue, Suite 3000, Miami, FL 33131 | April 25, 2024 | In Progress | Template: franchise-surrender-notice-template.docx; 14 individual notices customized with property-specific information per Exhibit B
15 | Franchise Surrender — Notices | Send Franchise Surrender Notice — Sarasota Property 1 (Verimark Suites) | Yuki Nakamura | Coastal Palms / Gulf Breeze Hospitality LLC | April 25, 2024 | Open | De-identification deadline: August 20, 2024 (120 days from April 22, 2024)
16 | Franchise Surrender — Notices | Send Franchise Surrender Notice — Sarasota Property 2 (Verimark Suites) | Yuki Nakamura | Coastal Palms / Gulf Breeze Hospitality LLC | April 25, 2024 | Open | De-identification deadline: August 20, 2024
17 | Franchise Surrender — Notices | Send Franchise Surrender Notice — Sarasota Property 3 (Verimark Suites) | Yuki Nakamura | Coastal Palms / Gulf Breeze Hospitality LLC | April 25, 2024 | Open | De-identification deadline: August 20, 2024
18 | Franchise Surrender — Notices | Send Franchise Surrender Notices — Fort Myers Properties 1–4 (Verimark Suites) | Yuki Nakamura | Coastal Palms / Gulf Breeze Hospitality LLC | April 25, 2024 | Open | 4 properties; de-identification deadline: August 20, 2024
19 | Franchise Surrender — Notices | Send Franchise Surrender Notices — Jacksonville Properties 1–2 (Verimark Suites) | Yuki Nakamura | Coastal Palms Franchise Holdings LLC | April 25, 2024 | Open | 2 properties; de-identification deadline: August 20, 2024
20 | Franchise Surrender — Notices | Send Franchise Surrender Notices — Savannah, GA Properties 1–3 (Verimark Suites) | Yuki Nakamura | Coastal Palms / Savannah Lodging Partners LLC | April 25, 2024 | Open | 3 properties; de-identification deadline: August 20, 2024
21 | Franchise Surrender — Notices | Send Franchise Surrender Notices — Brunswick, GA Properties 1–2 (Verimark Suites/Select) | Yuki Nakamura | Coastal Palms / Savannah Lodging Partners LLC | April 25, 2024 | Open | 2 properties; de-identification deadline: August 20, 2024
22 | Franchise Surrender — De-identification | Coordinate with Deidre Langston (SVP, Franchise Operations) to establish de-identification monitoring schedule for 14 surrendered properties (removal of Verimark branding, signage, proprietary systems) | Yuki Nakamura / Calderwood & Harkness LLP | Deidre Langston (Verimark); Coastal Palms | May 15, 2024 | Open | 120-day compliance deadline: August 20, 2024; consequences of non-compliance per Settlement Agreement
23 | Retained Properties — New FLAs | Execute new 10-year Franchise License Agreements for 8 retained properties per Settlement Agreement Exhibit C: Naples (4 properties), Marco Island (2 properties), Tampa (2 properties) | Renata Solis-Vega / Deidre Langston (Verimark) | Coastal Palms Franchise Holdings LLC | May 22, 2024 | Open | New FLAs incorporate enhanced audit and reporting requirements per Exhibit D; form of new FLA attached as Exhibit C to Settlement Agreement
24 | Retained Properties — New FLAs | Confirm delivery of 8 fully executed new FLAs and distribute to all relevant parties | Yuki Nakamura / Calderwood & Harkness LLP | Renata Solis-Vega; Deidre Langston; Whitfield, Barrow & Crane LLP | May 31, 2024 | Open
25 | Enhanced Audit Protocol | Confirm implementation of enhanced audit protocol (Exhibit D) for 8 retained properties: quarterly audits, real-time POS integration with Verimark's revenue-management system, Coastal Palms bears all audit costs for 5 years | Deidre Langston (Verimark SVP, Franchise Operations) | Coastal Palms Franchise Holdings LLC | June 30, 2024 | Open | Per Settlement Agreement Exhibit D; ongoing monitoring per post-settlement compliance memo
26 | Court Filings — Dismissal | Prepare Joint Stipulation of Dismissal with Prejudice for filing in Case No. 1021-00006, Circuit Court of the 17th Judicial Circuit, Broward County, Florida | Yuki Nakamura / Calderwood & Harkness LLP | Whitfield, Barrow & Crane LLP (Nathan Whitfield III) — co-signature required | April 25, 2024 | In Progress | Dismisses all claims (Counts I–X) and Coastal Palms' counterclaim with prejudice; each party bears own costs and fees; references settlement without disclosing terms
27 | Court Filings — Dismissal | Obtain co-signature from Nathan Whitfield III (WBC) on Joint Stipulation of Dismissal | Yuki Nakamura / Calderwood & Harkness LLP | Nathan Whitfield III, Whitfield, Barrow & Crane LLP | April 26, 2024 | Open | Priya Anand (FL Bar No. 0087451) signs for Verimark
28 | Court Filings — Dismissal | File Joint Stipulation of Dismissal with Prejudice with Clerk of Court, Broward County; obtain Order of Dismissal from Hon. Richard M. Calloway | Yuki Nakamura / Calderwood & Harkness LLP | Clerk of Court, 17th Judicial Circuit, Broward County, FL | April 26, 2024 | Open | Confirm entry of Order of Dismissal; distribute stamped copies to client and opposing counsel
29 | Insurance Notification | Notify Pinnacle Indemnity Insurance Co. of settlement and case closure under Policy No. PLI-VHG-2021-08874 | Douglas Carmichael / Calderwood & Harkness LLP | Arthur Baines, Claims Counsel, Pinnacle Indemnity Insurance Co. | April 30, 2024 | Open | Include final litigation-cost summary for coverage-claim purposes
30 | Structured Payment Schedule — Calendar | Establish internal calendar/tickler system for monitoring 8 semi-annual structured payments of $7,812,500 each; first payment due October 22, 2024; final payment due April 22, 2028; interest at 6.5% per annum (simple) on outstanding balance | Yuki Nakamura / Calderwood & Harkness LLP | Renata Solis-Vega; Martin Holcomb (Verimark) | April 30, 2024 | Open | Per Settlement Agreement § 3.2 and Exhibit A; total structured portion: $62,500,000; acceleration triggers per Settlement Agreement § 5
31 | Structured Payment Schedule — Calendar | Provide Verimark with detailed payment schedule including principal, interest calculations, and cumulative totals for each of 8 installments | Carlos Espinoza / Calderwood & Harkness LLP | Martin Holcomb, EVP & CFO, Verimark | April 30, 2024 | Open | Per Exhibit A to Settlement Agreement
32 | SEC Disclosure Coordination | Coordinate with Verimark's securities counsel regarding disclosure of settlement as 'material litigation settlement' in Q2 2024 Form 10-Q, consistent with confidentiality provisions of Settlement Agreement | Priya Anand / Calderwood & Harkness LLP | Renata Solis-Vega (Verimark GC); Martin Holcomb (Verimark CFO) | May 15, 2024 | Open | Verimark trades on Nasdaq under ticker VHMK; settlement amount and detailed terms remain confidential subject to SEC disclosure obligations
33 | Matter Closing — Calderwood & Harkness | Prepare and distribute Matter Closing Memorandum documenting final disposition, fee summary, key learnings, and file-retention instructions | Priya Anand / Douglas Carmichael | Internal — Calderwood & Harkness LLP matter file | April 26, 2024 | In Progress | Fee summary: $6.82M C&H fees + $1.85M Ridgeline Forensic Advisory + $742K Nexagen Document Solutions + $38K Everwood Dispute Resolution + $124.5K court reporter/deposition costs = $9,574,500 total
34 | Matter Closing — Calderwood & Harkness | Transmit final invoice and cumulative fee summary to Verimark (Martin Holcomb); March–April 2024: $387,400 fees + $14,200 costs | Douglas Carmichael / Calderwood & Harkness LLP | Martin Holcomb, EVP & CFO, Verimark Hospitality Group Inc., 2400 East Las Olas Blvd., Suite 3100, Fort Lauderdale, FL 33301 | April 30, 2024 | Open | Cumulative matter total: $9,574,500 (fees and expenses combined)
[sheet: Surrendered Properties]
Property No. | Property Name / Identifier | Brand | City | State | Owning Entity | De-identification Deadline | De-identification Status
1 | Sarasota Property 1 | Verimark Suites | Sarasota | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
2 | Sarasota Property 2 | Verimark Suites | Sarasota | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
3 | Sarasota Property 3 | Verimark Suites | Sarasota | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
4 | Fort Myers Property 1 | Verimark Suites | Fort Myers | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
5 | Fort Myers Property 2 | Verimark Suites | Fort Myers | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
6 | Fort Myers Property 3 | Verimark Suites | Fort Myers | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
7 | Fort Myers Property 4 | Verimark Suites | Fort Myers | FL | Gulf Breeze Hospitality LLC | August 20, 2024 | Pending
8 | Jacksonville Property 1 | Verimark Suites | Jacksonville | FL | Coastal Palms Franchise Holdings LLC | August 20, 2024 | Pending
9 | Jacksonville Property 2 | Verimark Suites | Jacksonville | FL | Coastal Palms Franchise Holdings LLC | August 20, 2024 | Pending
10 | Savannah Property 1 | Verimark Suites | Savannah | GA | Savannah Lodging Partners LLC | August 20, 2024 | Pending
11 | Savannah Property 2 | Verimark Suites | Savannah | GA | Savannah Lodging Partners LLC | August 20, 2024 | Pending
12 | Savannah Property 3 | Verimark Suites | Savannah | GA | Savannah Lodging Partners LLC | August 20, 2024 | Pending
13 | Brunswick Property 1 | Verimark Suites | Brunswick | GA | Savannah Lodging Partners LLC | August 20, 2024 | Pending
14 | Brunswick Property 2 | Verimark Select | Brunswick | GA | Savannah Lodging Partners LLC | August 20, 2024 | Pending
[sheet: Retained Properties]
Property No. | Property Name / Identifier | Brand | City | State | Owning Entity | New FLA Term | Appraised Value | Encumbered by Ironclad Mortgage | Serves as Verimark Collateral | New FLA Execution Status
1 | Naples Property 1 | Verimark Suites | Naples | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $8,900,000 | No | Yes | Pending
2 | Naples Property 2 | Verimark Suites | Naples | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $9,200,000 | No | Yes | Pending
3 | Naples Property 3 | Verimark Suites | Naples | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $8,750,000 | No | Yes | Pending
4 | Naples Property 4 | Verimark Suites | Naples | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $9,100,000 | No | Yes | Pending
5 | Marco Island Property 1 | Verimark Select | Marco Island | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $10,450,000 | No | Yes | Pending
6 | Marco Island Property 2 | Verimark Select | Marco Island | FL | Gulf Breeze Hospitality LLC | 10 years from execution | $9,800,000 | No | Yes | Pending
7 | Tampa Property 1 | Verimark Suites | Tampa | FL | Coastal Palms Franchise Holdings LLC | 10 years from execution | $7,600,000 | No | Yes | Pending
8 | Tampa Property 2 | Verimark Suites | Tampa | FL | Coastal Palms Franchise Holdings LLC | 10 years from execution | $7,400,000 | No | Yes | Pending
[sheet: Payment Schedule]
Payment No. | Payment Type | Due Date | Principal Amount | Interest Rate | Interest Period | Estimated Interest Due | Total Payment Due | Cumulative Principal Paid | Outstanding Balance After Payment | Status
0 | Cash at Closing | April 22, 2024 | $25,000,000 | N/A | N/A | $0 | $25,000,000 | $25,000,000 | $62,500,000 | Complete
1 | Semi-Annual Installment 1 | October 22, 2024 | $7,812,500 | 6.5% per annum, simple | April 22, 2024 – October 22, 2024 (6 months) | $2,031,250 | $9,843,750 | $32,812,500 | $54,687,500 | Pending
2 | Semi-Annual Installment 2 | April 22, 2025 | $7,812,500 | 6.5% per annum, simple | October 22, 2024 – April 22, 2025 (6 months) | $1,777,344 | $9,589,844 | $40,625,000 | $46,875,000 | Pending
3 | Semi-Annual Installment 3 | October 22, 2025 | $7,812,500 | 6.5% per annum, simple | April 22, 2025 – October 22, 2025 (6 months) | $1,523,438 | $9,335,938 | $48,437,500 | $39,062,500 | Pending
4 | Semi-Annual Installment 4 | April 22, 2026 | $7,812,500 | 6.5% per annum, simple | October 22, 2025 – April 22, 2026 (6 months) | $1,269,531 | $9,082,031 | $56,250,000 | $31,250,000 | Pending
5 | Semi-Annual Installment 5 | October 22, 2026 | $7,812,500 | 6.5% per annum, simple | April 22, 2026 – October 22, 2026 (6 months) | $1,015,625 | $8,828,125 | $64,062,500 | $23,437,500 | Pending
6 | Semi-Annual Installment 6 | April 22, 2027 | $7,812,500 | 6.5% per annum, simple | October 22, 2026 – April 22, 2027 (6 months) | $761,719 | $8,574,219 | $71,875,000 | $15,625,000 | Pending
7 | Semi-Annual Installment 7 | October 22, 2027 | $7,812,500 | 6.5% per annum, simple | April 22, 2027 – October 22, 2027 (6 months) | $507,813 | $8,320,313 | $79,687,500 | $7,812,500 | Pending
8 | Semi-Annual Installment 8 (Final) | April 22, 2028 | $7,812,500 | 6.5% per annum, simple | October 22, 2027 – April 22, 2028 (6 months) | $253,906 | $8,066,406 | $87,500,000 | $0 | Pending
[sheet: Key Contacts]
Name | Title / Role | Organization | Address | Phone | Email | Notes
Priya Anand | Responsible Partner (FL Bar No. 0087451) | Calderwood & Harkness LLP | 110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301 | Lead counsel for Verimark
Douglas Carmichael | Billing Partner (FL Bar No. 0093217) | Calderwood & Harkness LLP | 110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301
Yuki Nakamura | Lead Associate (FL Bar No. 0119644) | Calderwood & Harkness LLP | 110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301 | Closing checklist coordinator
Carlos Espinoza | Working Associate (FL Bar No. 0128903) | Calderwood & Harkness LLP | 110 SE 6th Street, Suite 2800, Fort Lauderdale, FL 33301
Renata Solis-Vega | SVP & General Counsel | Verimark Hospitality Group Inc. | 2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301 | Primary client contact — legal
Martin Holcomb | EVP & Chief Financial Officer | Verimark Hospitality Group Inc. | 2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301 | Primary client contact — finance; wire transfer coordination
Deidre Langston | SVP, Franchise Operations | Verimark Hospitality Group Inc. | 2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, FL 33301 | De-identification monitoring; new FLA execution; enhanced audit protocol
Nathan Whitfield III | Senior Partner; lead defense counsel | Whitfield, Barrow & Crane LLP | 1221 Brickell Avenue, Suite 3000, Miami, FL 33131 | Co-signatory on Joint Stipulation of Dismissal
Gabriela Montes | Partner; discovery & motions | Whitfield, Barrow & Crane LLP | 1221 Brickell Avenue, Suite 3000, Miami, FL 33131 | Coordinating defendant signature pages and guaranty delivery
Randall Brecker | Managing Member (60% equity) | Coastal Palms Franchise Holdings LLC | 9500 Gulf Shore Drive, Suite 450, Naples, FL 34108 | Personal guarantor; signatory
Nolan Prescott | Member (25% equity); passive investor | Coastal Palms Franchise Holdings LLC | 9500 Gulf Shore Drive, Suite 450, Naples, FL 34108 | Personal guarantor; signatory
Devon Schultz | SVP, Commercial Real Estate Lending | Ironclad National Bank | 225 Peachtree Street NE, Suite 2600, Atlanta, GA 30303 | Lender notice recipient; escrow wire coordination; ~$94M first-lien mortgage holder
Arthur Baines | Claims Counsel | Pinnacle Indemnity Insurance Co. | Policy No. PLI-VHG-2021-08874; notify of settlement and case closure
Hon. Richard M. Calloway | Circuit Judge | 17th Judicial Circuit, Broward County, FL | Assigned judge; Order of Dismissal to be entered

[sheet: Checklist Header]

Record

Parties

Dates

Amounts