2023A-02548-CHC-ROC Notice of Hearing and Packet MAILED

2023A-02548-CHC-ROC · Registrar of Contractors · 2024-01-08

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

McDowell Hotel I LLC, Case No. 2023-02548 COMPLAINANT, Docket No. 2023A-02548-CHC-ROC

v. NOTICE OF HEARING ON CONTESTED CASE Adanac Builders Corporation License No. ROC 189034,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D). HEARING INFORMATION The hearing is set for: February 16, 2024 9:00 AM Velva Moses-Thompson Google Meet. A link will be provided directly from The Office of Administrative Hearings. Go to www.azoah.com to request to appear in-person.

If you have requested to appear in-person at the hearing, the hearing will be held at 1740 W Adams Street, Phoenix, AZ 85007.

You must attend this hearing. This is an adversarial hearing before an administrative law judge, and is conducted in a similar manner as judicial proceedings. Thus, you must be prepared to present evidence, including witness testimony and documents, in support of your case.

STATEMENT OF LEGAL AUTHORITY AND JURISDICTION The State of Arizona has determined that the licensing and regulation of construction contractors is a proper state function, and has vested authority in the Registrar of Contractors

to administer Title 32, Chapter 10 of the Arizona Revised Statutes. A.R.S. §§ 32-1101 et seq.

All hearings for alleged violations of Title 32, Chapter 10 are conducted under Title 41,

Chapter 6, Article 10. A.R.S. § 32-1156.

The statutes and rules governing the hearing can be found at: Arizona Revised Statutes §§ 41-1092 to -1092.12, and Arizona Administrative Code R2-19-101 to -122. PARTICULAR ARIZONA STATUTES AND RULES INVOLVED The statutes and rules the Respondent is alleged to have violated are cited in the complaint and citation, which were served on the Respondent on December 5, 2023.

SHORT AND PLAIN STATEMENT OF THE MATTERS ASSERTED The complaint and citation allege that the Respondent committed the following act(s):

Charge: 1 A.R.S. § 32-1154(A)(3) - R4-9-108(a)

Charge: 2 A.R.S. § 32-1154(A)(22)

THE PARTIES TO THE ADMINISTRATIVE HEARING

Because Respondent is a licensee and is charged with an act(s) or omission(s) that is cause for the suspension or revocation of a license, Respondent is a party to this case and will be a party to the hearing. Because Complainant alleged Respondent committed an act(s) or omission(s) that is cause for the suspension or revocation of a license, Complainant is a party to this case and will be a party to the hearing.

Respondent and Complainant, as the parties to the hearing, will present evidence and

argument to the administrative law judge.

The Registrar’s assigned investigator will appear as a witness at the hearing.

RIGHT TO BE REPRESENTED The parties to the administrative hearing may choose to be represented by an attorney. A.R.S. § 41-1092.07(B). If one of the parties is a company, the company may be represented by an officer or employee if that person satisfies the conditions set forth in A.R.S. § 32- 1156(B).

CHANGE OF ADDRESS Each party must inform the Registrar and the Office of Administrative Hearings of any change of address within five (5) days of the change. A.R.S. § 41-1092.04.

HEARING PROCEDURES AND RULES The administrative hearing will be conducted in accordance with A.R.S. §§ 41-1092 to -1092.12, and A.A.C. R2-19-101 to -122. The parties should review the statutes, rules, and processes governing the administrative hearing. Copies of the statutes, rules, and articles regarding the administrative hearing process can be found at https://www.azoah.com/.

REGISTRAR’S APPEARANCE BY VIDEO CONFERENCE OR TELEPHONE The Registrar’s investigators, employees, and attorneys will appear at the hearing via video conference or telephone unless requested by a party to appear in-person. Requests for the Registrar’s investigators, employees, or attorneys to appear in-person must be filed with the Registrar and the Office of Administrative Hearings no later than seven (7) calendar days prior to the hearing date.

HEARING PACKET In the interests of administrative efficiency, the Registrar compiles and discloses

certain documents to the parties and the Office of Administrative Hearings. These documents

are attached to this Notice of Hearing as the “Hearing Packet.” If any party wishes to submit

additional evidence, they must do so during the hearing after completing a disclosure statement. See “Disclosure Statement” section below. SUBPOENAS FOR TESTIMONY FROM A WITNESS OR DOCUMENTS The parties to the hearing must be prepared to present evidence in support of their

case. If a party wants to obtain testimony from a witness or documents not in the party’s

possession, the party must prepare and file a written subpoena for the Administrative Law

Judge to review and sign, if approved. A.R.S. § 41-1092.07(C). Forms for requesting a

subpoena can be found on the Office of Administrative Hearings’ website at www.azoah.com. The party seeking a subpoena must serve notice on all the parties to the hearing, and on the Registrar. A.R.S. § 41-1092.04.

DISCLOSURE STATEMENT At least seven calendar days before the hearing, each party must prepare and serve a

disclosure statement on all other parties, and file it with the Office of Administrative Hearings.

A.A.C. R4-9-118; A.A.C. R2-19-108. The disclosure statement must include any exhibit the

party will use at the hearing. A party’s failure to timely disclose any witness or exhibit, without good cause, may result in the administrative law judge excluding those witnesses or exhibits from being used at the hearing. A.A.C. R4-9-118(C). A sample disclosure form is available on the Registrar’s website at https://roc.az.gov/forms/RC-L-800A%20- %20Prehearing%20Disclosure%20Statement%2020191007v4.pdf

CHANGING THE HEARING DATE The date of the hearing may only be advanced or delayed on the agreement of the

parties or on a showing of good cause. A.R.S. § 41-1092.05(C). The date of the hearing may

be changed by filing a written agreement of the parties to change the date of the hearing. The

written agreement must be filed with the Office of Administrative Hearings, directed to the

assigned Administrative Law Judge, and transmitted to the Registrar and all other parties. The

assigned Administrative Law Judge may be found on the Office of Administrative Hearings’ web portal at www.azoah.com If a party would like to move the date of the hearing without agreement of all parties, the party must file a written motion with the Office of Administrative Hearings, directed to the assigned Administrative Law Judge, and transmit a copy to the Registrar and all other parties.

The motion must state in detail good cause for why the date of the hearing should be advanced or delayed, and the position of all other parties regarding the advancement or delay. A party may also file a motion asserting a right to an expedited hearing upon a showing of extraordinary circumstances or the possibility of irreparable harm. A.R.S. § 41-1092.05(E).

RESOLUTION SHORT OF ADJUDICATION In any case which is resolved or settled by the parties, or which is withdrawn by the Complainant without objection from Respondent after the Notice of Hearing is issued, the parties must notify the Office of Administrative Hearings of the resolution or settlement. Any such cases will be listed on the Registrar’s website and its records under the category: “Closed Complaints – Resolved/Settled/Withdrawn.” Dated January 8, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail January 8, 2024 to: Respondent(s) Adanac Builders Corporation 17505 N 79th Ave Ste 209 Glendale, AZ 85308

Complainant(s) McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

Kevin M. Estevez, Esq. N Central Ave Ste 2000 Phoenix, AZ 85004

Copy sent electronically this same date to:

Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar

Case No. 2023-02548 /

Katie Hobbs, Governor Martin Quezada, Director

Hearing Packet FAQ What is the Hearing Packet?

The Hearing Packet is a packet of certain documents collected or issued by the Registrar over the course of its investigation.

Who gets the Hearing Packet?

The Hearing Packet is assembled and distributed to all parties and to the Office of Administrative Hearings (“OAH”) prior to an administrative hearing.

What types of cases does the Registrar prepare a Hearing Packet for?

The Registrar prepares a Hearing Packet for Complainant-Handled Cases and No-Pay Cases. Note: If the Docket Number on the Notice of Hearing contains a “CHC” or “NPC”, your case is a Complainant-Handled Case or a No-Pay Case.

What is in the Hearing Packet?

The Hearing Packet contains essential case-specific documents and at a minimum will include the following documents:

● Original complaint;

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

● Citation; and ● Answer.

The Hearing Packet will also contain the following documents (if applicable):

● Jobsite inspection notices, notes, and photos; ● Written directives; and ● Compliance inspection notices, notes, and photos.

What if there are documents missing from the Hearing Packet?

If there is any evidence you submitted to the Registrar that are not included in the Hearing Packet it is your responsibility to introduce that evidence at the administrative hearing. Note: The administrative law judge assigned to your case does not have access to the entire Registrar record.

If there is additional evidence you submitted to the Registrar during the investigation that you also want to introduce as evidence during your hearing, it is your responsibility to:

● Properly disclose that evidence to the other party; and ● Introduce the evidence during your hearing.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martin Quezada, Director

How do I disclose evidence I intend to use at a Hearing?

You must properly disclose any and all documents and witnesses you intend to use at your hearing according to the Registrar’s Prehearing Disclosure Rules. See Arizona Administrative Code Section R4-9-118.

A sample prehearing disclosure form and instructions are provided to the parties by the Registrar.

How do I obtain documents I previously submitted to the Registrar?

If you previously submitted documents to the Registrar and need a copy of these documents, please contact the Registrar’s Legal Department or submit a public records request at https://roc.force.com/AZRoc/s/roc-public-request.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov Hearing Packet FAQ

Katie Hobbs, Governor Martín Quezada, Director

Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

March 3, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

A formal complaint has been filed with the Arizona Registrar of Contractors.

A jobsite inspection is scheduled for March 21, 2023 at 11:30 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the work complained of within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on this complaint. 2. The Registrar may also be precluded from taking further action on this complaint, if the work that is the subject of the complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area (ladder or manlift as appropriate). Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity to inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests. 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection. If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely, Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

A Guide to Jobsite Inspections

Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license alleging poor workmanship, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

Jobsite Inspection Rights and Responsibilities Access to inspect: The property owner has complete control over who they allow on the property. However, if the Registrar’s investigator or the contractor cannot inspect the work, the Registrar will not move forward with a citation.

Cooperation: Arizona law enables injured parties to seek relief for damages through several paths. When dealing with a licensed contractor, the Registrar of Contractors’ administrative complaint process may serve as one of those possible paths. However, in order to use that path, the Registrar relies on the cooperation of all parties to a complaint.

Minimum workmanship: The Registrar investigates workmanship complaints for compliance with minimum workmanship and professional industry standards. The Registrar does not issue citations for work that meets these standards.

Scope: The scope of the Jobsite Inspection is limited to items listed in the complaint filed with the Registrar’s office. It is the complainant’s responsibility to point out the complaint item(s) and the Investigators role to review the item(s). If the complainant identifies additional workmanship items not listed in the original complaint, they must file an addendum to the complaint. The Registrar’s Investigator may identify additional administrative violations by the contractor (e.g. work performed out of scope of the license and failure to provide a contract that meets requirements set by Arizona law) at the time of the inspection.

The Role of the Investigator At the Jobsite Inspection, the Registrar’s investigator will: ● Only investigate the items listed on the complaint form filed with the Registrar. ● Will gather evidence to make an informed decision about the complaint items.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will leave the jobsite and review the evidence provided during the inspection. Generally, the investigator does not make any determination at the time of the jobsite inspection regarding whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Questions? If you have already filed a complaint and it was assigned to an investigator, you are encouraged to contact that investigator directly with the information listed in your jobsite inspection letter. If you have not filed a complaint yet or have not been assigned an investigator, you can reach the Registrar’s compliance department at (877) 692-9762. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

A Guide to Written Directives Purpose of the Jobsite Inspection When the Registrar receives a complaint against a contractor’s license, the Registrar generally schedules a Jobsite Inspection. The Jobsite Inspection serves two purposes: 1. To give the contractor an opportunity to inspect the complaint items; and 2. To give the Registrar an opportunity to determine if the contractor’s work violates Arizona law.

What to expect after a Jobsite Inspection After doing a Jobsite Inspection, the Registrar’s Investigator will determine whether the allegations listed in the complaint are supported. ● If the allegations are confirmed, the Registrar’s Investigator may issue a Written Directive telling the contractor to correct the poor or incomplete work. ● If the allegations are not confirmed, the Registrar’s Investigator will close the complaint.

Written Directives Access: In order to use the administrative process offered by the Registrar, a property owner must provide reasonable access to allow the contractor to fix their work as directed by the Registrar in a Written Directive. Complainants may not put any additional, unnecessary restrictions on the Respondent above and beyond the initial contract requirements agreed upon at the beginning of the project. Respondents are required to make repairs on items identified on any Written Directive, not otherwise restricted by local code or HOA limitations. Complainants must make access available to the Respondent to make the required repairs and failure to provide reasonable access may result in the Registrar dismissing the complaint.

Contractor obligations: The Written Directive will set a deadline for compliance. This is the period of time determined by the Investigator as necessary to complete the items listed in the Directive. ● The deadline for compliance assumes the contractor will promptly begin working on the items listed in the Directive. ● Do not wait. Both parties should communicate quickly to schedule the work.

Extensions: If good cause exists to extend this deadline, either party may submit a written request to the Investigator. The Registrar will review requests for extension and determine if the Directive should be extended.

Manner and method of performance: The Registrar does not provide specific instructions for how to correct poor work. A licensed contractor is expected to have the skill and professionalism to complete the work. Moreover, the complainant may not dictate the manner of repair. If the contractor fails to appropriately correct the work according to the contract, the Registrar will issue a citation.

Compliance Inspection: After the Written Directive expires, the Registrar’s Investigator will contact the complainant to determine if the contractor performed any corrective work. ● If the contractor did corrective work, the Investigator may schedule a Compliance Inspection to determine if the poor work is corrected. ● If the contractor did not perform any corrective work, the Registrar’s Investigator will not do a Compliance Inspection and will determine whether to issue a citation based on the administrative record.

Work performed after the directive ends: After the Directive period ends, a property owner may choose to allow the contractor to continue its work. The Registrar encourages parties to work cooperatively, but cannot 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

require a homeowner to continue to allow a contractor access to the property after the Directive period ends in order for the administrative process to continue. Denying access after the Directive ends is not grounds to close or dismiss a complaint.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 Katie Hobbs, Governor Martín Quezada, Director

Complainant Attorney: Kevin M. Estevez, Esq North Central Avenue, Suite 2000 Phoenix, AZ 85004

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C008 05/21 3/14/23, 10:01 AM FW: HIE ROC Response - [email redacted] - State of Arizona Mail

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99+ Compose Mail Fax: 623.328.5186

Inbox 275 AZ ROC# 189034 KB-01/# 328481 C-37 Chat Starred CA ROC# 1046543

Snoozed Spaces Sent Drafts 83 Todd Anderson Meet to Dave More Dave,

Labels Sorry I hadn't gotten back to you yet. I received your previous email and have downloaded it into the case file. I've also sent a them to resend all documentation regarding this complaint. I only have the 1st few pages of a much larger file. Waiting on the Quarantine Todd Anderson

Reply Forward

https://mail.google.com/mail/u/0/?ogbl#inbox/FMfcgzGslbGNjBMjqpbWfWgMkgXztgSM 1/1 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

Todd Anderson <[email redacted]>

FW: HIE ROC Response messages

Dave Fix <[email redacted]> Tue, Mar 14, 2023 at 9:16 AM To: Todd Anderson <[email redacted]>

Todd,

Attached above is my response to the complaint filed by McDowell Hotel I LLC; Complaint Intake 2023-02548.

Please review and let me know if you need anything else from me.

The response is the last attachment and all other attachments are supporting documents to the response.

FYI, I did not receive any attachments under Exhibit A.

Thank You,

David Fix

17505 N. 79th Avenue

Suites 209/210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37 https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 1/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

CA ROC# 1046543

---------- Forwarded message ---------- From: Navin Kuber <[email redacted]> To: Dave Fix <[email redacted]>, "Terry O'Neill" <[email redacted]> Cc: Bcc: Date: Mon, 8 Aug 2022 22:36:56 +0000 Subject: FW: Grease Trap

See below for grease trap substitute. Need to send the specs to city. You had mentioned that Maricopa / Holbrook used under sink mount separator.

Thank you

Good buildings come from good people & all problems are solved by good design

Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted]

NOTICE: This E-mail (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. ss 2510-2521, is confidential and is legally privileged. If you are not the intended please delete if received in error and notify sender.

From: Ofria, John <[email redacted]> Sent: Friday, August 5, 2022 3:18 PM To: Navin I. Kuber <[email redacted]> Cc: Kolls, Cris <[email redacted]> Subject: Re: Grease Trap

Navin,

We do not typically recommend any product or manufacturer. My advice is to consult your mechanical Engineer for a surface mounted grease interceptor that can accommodate the needs of your installation.

Regards,

John Ofria

Regional Manager Construction Services

Americas Design & Construction https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 2/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

IHG®

Ravinia Drive, Suite 100, Atlanta, Georgia 30346

Mobile: 702.286.8500

From: Navin Kuber <[email redacted]> Date: Friday, August 5, 2022 at 2:42 PM To: Ofria, John <[email redacted]> Cc: 'Dave Fix' <[email redacted]> Subject: Grease Trap John; Can you send me information for the water separator below sink that can be substituted for Grease Trap. Thank you Good buildings come from good people & all problems are solved by good design

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Email originated outside of IHG

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John; Can you send me information for the water separator below sink that can be substituted for Grease Trap.

Thank you

Good buildings come from good people & all problems are solved by good design

Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted] https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 3/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

---------- Forwarded message ---------- From: Douglas Dieker <[email redacted]> To: Dave Fix <[email redacted]> Cc: Bcc: Date: Mon, 13 Mar 2023 19:22:57 +0000 Subject: Fw: McDowell Hotel I v. Adanac Builders Here is my notification to HIE's attorney regarding fire line and grease interceptor.

Douglas F. Dieker DIEKER COPPLE, PLLC 14256 N. Northsight Blvd. Suite 110 Scottsdale, AZ 85260 Phone -- (602) 528-4700 Fax -- (602) 528-4701

CONFIDENTIALITY NOTICE: This message is being sent by or on behalf of a lawyer. It is intended exclusively for the individual or entity to whom it is addressed. This communication may contain privileged, confidential, or otherwise proprietary information. If you are not the named addressee, you are not authorized to read, print, retain, copy of disseminate this message or any part of it. If the recipient of this message is not the intended addressee, please call 602- 528-4700 or reply to this email immediately.

Also, if the content of this e-mail includes any communication pertaining to the settlement of any dispute, please be advised the such communication is protected pursuant to Rule 408, Arizona Rules of Evidence.

IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this notice, visit http://www.irs.gov/pub/irs-pdf/pcir230.pdf. The above statement is made in accordance with Circular 230, 31 C.F.R., Subtitle A, Part 10, revised as of June 20, 2005.

From: Douglas Dieker <[email redacted]> Sent: Wednesday, February 22, 2023 2:26 PM To: Valerie Corral <[email redacted]>; Jennifer Reiter <[email redacted]> Cc: Kevin Estevez <[email redacted]> Subject: Re: McDowell Hotel I v. Adanac Builders

Kevin,

The fire line was installed under the supervision and licensing of Fire Shield. See attached letter and CO.

https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 4/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

Adanac was asked by Navin Kuber not to install the grease interceptor as he wanted to purchase above-slab interceptors instead. See attached email.

Terry O'Neil is well aware of both of these facts. Please note he created the attached CO.

Douglas F. Dieker DIEKER COPPLE, PLLC 14256 N. Northsight Blvd. Suite 110 Scottsdale, AZ 85260 Phone -- (602) 528-4700 Fax -- (602) 528-4701

From: Valerie Corral <[email redacted]> Sent: Friday, February 17, 2023 3:05 PM To: Douglas Dieker <[email redacted]>; Jennifer Reiter <[email redacted]> Cc: Kevin Estevez <[email redacted]> Subject: McDowell Hotel I v. Adanac Builders

Good evening,

Please find attached Mr. Estevez’s letter in the above referenced matter. The originals will follow by certified mail.

Thank you.

Valerie Corral, Legal Assistant

Holden Willits PLC

North Central Avenue, Suite 2000

Phoenix, Arizona 85004

602.508.6210 https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 5/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response [email redacted]

www.holdenwillits.com

**Please note we’ve moved! Same building address, but different suite.

attachments

HIE Draw #18 Pay App.PNG 906K

HIE Final Pay App.PNG 1405K

HIE Signed SOV (002).pdf 714K HIE Contract Executed by Tushar AIA Revision 7-7-20 (002).pdf 2681K HIE Lien FIled by Adanac.pdf 278K FW: Grease Trap.eml 87K [number redacted]-Holiday_Inn-95th_Lane-001-Fire_Line_Inspection-2023-02-22.pdf 131K Fireshield - Fire Line - Install Letter.pdf 169K FW_ Grease Trap .eml 87K Fw: McDowell Hotel I v. Adanac Builders.eml 561K HIE ROC Response .docx 55K

https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 6/7 3/14/23, 9:51 AM State of Arizona Mail - FW: HIE ROC Response

Dave Fix <[email redacted]> Tue, Mar 14, 2023 at 9:17 AM To: Todd Anderson <[email redacted]>

Todd,

Please let me know that you have received my response.

Thank You,

David Fix

17505 N. 79th Avenue

Suites 209/210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

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https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-f%3A1760360528926068369&simpl=msg-f%3A1760360510… 7/7 Katie Hobbs, Governor Martín Quezada, Director

Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C010 04/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C010 04/21 Katie Hobbs, Governor Martín Quezada, Director

March 17, 2023

Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for March 21, 2023 at 11:30 AM has been rescheduled for April 12, 2023 at 9:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

Sincerely,

Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Complainant Attorney: Kevin M. Estevez, Esq North Central Avenue, Suite 2000 Phoenix, AZ 85004

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Within AZ 877.692.9762 · Fax 602.542.1599 · roc.az.gov C010 04/21 Katie Hobbs, Governor Martín Quezada, Director

Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Katie Hobbs, Governor Martín Quezada, Director

Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Katie Hobbs, Governor Martín Quezada, Director

May 26, 2023

Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for April 12, 2023 at 9:00 AM has been rescheduled for June 26, 2023 at 9:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

Sincerely,

Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 July 24, 2023

Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties and the need for additional information, another jobsite inspection has been scheduled for August 7, 2023 at 9:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

Sincerely,

Todd Anderson Todd Anderson, Investigator#227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave #Ste 209 Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 August 8, 2023

Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for August 7, 2023 at 9:00 AM has been rescheduled for August 11, 2023 at 11:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

Sincerely,

Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 8/14/23, 8:56 AM State of Arizona Mail - Jobsite Inspection Reschedule Notices #2023-02548

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Todd Anderson <[email redacted]> Tue, Aug 8, 2023 at 2:45 PM To: Kevin Estevez <[email redacted]>

Great. I'll send out reschedule letters.

Todd Anderson [Quoted text hidden]

Todd Anderson <[email redacted]> Tue, Aug 8, 2023 at 2:58 PM To: Kevin Estevez <[email redacted]>

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20230808 ROC Re-schedule of Jobsite Inspection 2023-02548.pdf 98K

Todd Anderson <[email redacted]> Tue, Aug 8, 2023 at 2:59 PM To: Dave Fix <[email redacted]>

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20230808 ROC Re-schedule of Jobsite Inspection 2023-02548.pdf 98K

Dave Fix <[email redacted]> Tue, Aug 8, 2023 at 4:28 PM To: Todd Anderson <[email redacted]>

Received, thank you.

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Kevin Estevez <[email redacted]> Fri, Aug 11, 2023 at 8:49 AM To: Todd Anderson <[email redacted]>, Douglas Dieker <[email redacted]>

Todd:

This confirms that the Complainant will be adding the following items to its complaint:

1. Adanac’s failure to install flashing around the windows; 2. Adanac’s failure to install underground conduit;

https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-a:r3435012095346281761&simpl=msg-a:r3591416443821… 14/20 8/14/23, 8:56 AM State of Arizona Mail - Jobsite Inspection Reschedule Notices #2023-02548 3. Adanac’s failure to install air conditioning units that complied with the plans and specifications; and 4. Adanac’s failure to comply with the plans and specifications in connection with construction of the roof.

These issues were mentioned/examined at the June 26, 2023 jobsite meeting and are being added to Complainant’s complaint. Thank you.

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Douglas Dieker <[email redacted]> Fri, Aug 11, 2023 at 9:10 AM To: Kevin Estevez <[email redacted]> Cc: Todd Anderson <[email redacted]>, Monica Peraza <[email redacted]>

Adanac needs to be given an opportunity to answer these last-minute allegations. Rather than have another inspection should we reschedule today to another time?

Doug

Douglas F. Dieker DIEKER COPPLE, PLLC 14256 N. Northsight Blvd. Suite 110 Scottsdale, AZ 85260 Phone — (602) 528-4700 Fax — (602) 528-4701

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Todd Anderson

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17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308

Office: 623.266.2761 https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-a:r3435012095346281761&simpl=msg-a:r3591416443821… 15/20 8/21/23, 11:39 AM State of Arizona Mail - Jobsite Inspection Reschedule Notices #2023-02548

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Monday, July 24, 2023 4:19 PM To: [email redacted]; Dave Fix <[email redacted]> Subject: Jobsite Inspection Reschedule Notices #2023-02548

attachments

image001.png 9K

Kevin Estevez <[email redacted]> Fri, Aug 11, 2023 at 11:12 AM To: Todd Anderson <[email redacted]>, Douglas Dieker <[email redacted]>

Todd:

This confirms that Navin Kuber is a representative of the owner for purposes of today’s inspection.

https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-a:r3435012095346281761&dsqt=1&simpl=msg-a:r35914… 99/106 8/21/23, 11:39 AM State of Arizona Mail - Jobsite Inspection Reschedule Notices #2023-02548

Sent from my iPhone

On Aug 11, 2023, at 8:49 AM, Kevin Estevez <[email redacted]> wrote:

Todd:

This confirms that the Complainant will be adding the following items to its complaint:

1. Adanac’s failure to install flashing around the windows; 2. Adanac’s failure to install underground conduit; 3. Adanac’s failure to install air conditioning units that complied with the plans and specifications; and 4. Adanac’s failure to comply with the plans and specifications in connection with construction of the roof.

These issues were mentioned/examined at the June 26, 2023 jobsite meeting and are being added to Complainant’s complaint. Thank you.

Best Regards,

Kevin

Kevin M. Estevez HOLDEN WILLITS PLC Two North Central Avenue, Suite 2000 Phoenix, AZ 85004 602-508-6225 phone 602-508-6211 fax [email redacted]

From: Todd Anderson <[email redacted]> Sent: Tuesday, August 8, 2023 2:46 PM To: Kevin Estevez <[email redacted]> Subject: Re: Jobsite Inspection Reschedule Notices #2023-02548

Great. I'll send out reschedule letters.

Todd Anderson

On Tue, Aug 8, 2023 at 1:28 PM Kevin Estevez <[email redacted]> wrote:

Todd:

https://mail.google.com/mail/u/0/?ik=9cbed3e67d&view=pt&search=all&permthid=thread-a:r3435012095346281761&dsqt=1&simpl=msg-a:r3591… 100/106 Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 August 21, 2023

Re: Complaint No. 2023-02548

Dear Complainant and Respondent:

After the initial filing of the complaint 2023-02548, the Complainant filed the attached amended complaint containing additional complaint items.

A jobsite inspection is scheduled September 7, 2023 at 11:00 AM. The Complainant is required to be present. The Respondent’s attendance is requested and encouraged. The Registrar encourages both parties to make a good faith effort to resolve this complaint prior to the jobsite inspection.

COMPLAINANT: 1. Under A.R.S. § 32-1155(D)(1), the Respondent must be allowed, upon request, the opportunity to inspect the amended complaint items within fifteen (15) days of receiving this notice. If Respondent is not provided an opportunity to inspect the work within the fifteen (15) day time period, the Registrar may be prohibited from taking further action on the amended complaint items. 2. The Registrar may also be precluded from taking further action on the amended complaint items, if the work that is the subject of the amended complaint is subject to neglect, modification, or abnormal use. A.R.S. § 32-1155(D)(2) 3. You must provide safe access to any area to be inspected. If access to a roof or other elevated area is required, you must provide a means to safely access the area. Additionally, please secure any animals.

RESPONDENT: 1. Enclosed is a copy of the amended complaint. Under A.R.S. § 32-1155(D) you must be allowed, upon request, the opportunity inspect the work complained of within fifteen days of the date of receipt of this notice. 2. To assist the assigned investigator in evaluating the merits of the amended complaint, please submit a response to the enclosed complaint to the assigned investigator prior to the scheduled inspection. 3. If you do not attend the jobsite inspection, your absence may negatively impact the investigation, and your interests.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 4. If a building permit(s) was required for this project, please have the building permit information available at the jobsite inspection.

If either party needs to reschedule the jobsite inspection, please notify the assigned investigator at least three business days prior to the inspection date to schedule a new date and time.

If the parties resolve the complaint prior to the inspection, please notify the assigned investigator in writing and by phone as soon as possible.

Sincerely,

Todd Anderson Todd Anderson, Investigator 602 7716769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

CC: Choose an item. Choose an item. Choose an item. Choose an item.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED) License mailing address (if different from account/company address of record):

Adanac Builders Corporation

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Complainant Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 (DELETE THIS ADDRESS/PAGE IF NOT WARRANTED)

Respondent Attorney:

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C007 04/21 Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 Respondent: Adanac Builders Corporation DBA: 17505 N 79th Ave Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 September 5, 2023

Re: Complaint Number 2023-02548

Dear Complainant and Respondent:

Due to a conflict in scheduling of one of the parties, the jobsite inspection scheduled for September 7, 2023 at 11:00 AM has been rescheduled for September 18, 2023 at 9:00 AM.

If either party is unable to attend, the Registrar requires 36-hours advance notice for cancellation or continuance.

Complainant: Safe access is required to any area to be inspected.

Should you have any questions regarding the above, please contact me.

Sincerely,

Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C010 04/21 JSI Photos #2023-02548 P 1 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 2 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM

Flashing JSI Photos #2023-02548 P 3 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM

Sample Piece of Flashing JSI Photos #2023-02548 P 4 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 5 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 6 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 7 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 8 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 9 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM JSI Photos #2023-02548 P 10 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM

Conduit and wires run By 3rd Party JSI Photos #2023-02548 P 11 Date: 9/18/23 at 9:00 am JSI PHOTOS 00AM Jobsite Inspection Notes

Case No.: 2023-02548 Investigator: Todd Anderson Inspection Date: September 18, 2023 Inspection Time: 9:00 AM

Complainant: McDowell Hotel I Respondent: Adanac Builders LLC Corporation Not Present: Not Present:

Jobsite General Notes:

Present for the Jobsite Inspection were Kevin Dandridge and Douglas Dieker representing ADANAC. Kevin Estevez and Valerie Corral representing the Complainant.

Complaint Item: 1 - (R) failed to pay its sub-contractors and suppliers A.R.S. § 32-1154(A)(10) Investigator’s Observation: This item is relative to a No Pay complaint which should be filed by the sub-contractor. Governing Rule: N/A

Complaint Item: 2 - Violation of A.R.S. § 32-1154(A)(6). Adanac engaged in repeated fraudulent acts by repeatedly misre-presenting that it paid its subcontractors & suppliers Investigator’s Observation: Not a workmanship or abandonment item which can be investigated and cited. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complaint Item: 3 - Adanac’s failure to comply with the plans and specifications in connection with construction of the roof. Investigator’s Observation: Foam roof installed by Respondent is not consistent with contract drawings which call out TPO. No change order was provided to substantiate the mutual desire for this change in roofing material. Respondent asserts that approval of payment applications is proof of acceptance of this material. This is not sufficient evidence to substantiate that the installation of the current roofing material, which does not comply with contract documents (drawings), is acceptable. Respondent should correct the roof to comply with contract documents and complete any related permit/inspection required for this activity. Governing Rule: ARS 32-1154(A)(2)(a) - Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Complaint Item: 4 - Violation of A.R.S. § 32-1154(A)(16) Adanac appears to have knowingly contracted beyond the scope of its licenses in connection with the defective installation of a fire hydrant Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). The fire hydrant was later installed by a 3rd party. Governing Rule: N/A

Complaint Item: 5 - Adanac’s failure to install flashing around the windows Investigator’s Observation: Verified. Flashing on subject windows does not comply with approved contract drawings. Respondent provided no information from manufacture to validate the reason for this non-compliance. Respondent should correct the subject windows to comply with contract documents (drawings), 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

correct any damage caused by this repair and complete any related permit/inspection required for this activity. Governing Rule: ARS 32-1154(A)(2)(a) - Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Complaint Item: 6 - Grease Interceptor was billed but never installed by Adanac Builders. Investigator’s Observation: Unable to verify. Complaint item was subject to modification ARS 32-1155(D)(2). The Grease Interceptor was later installed by a 3rd party Governing Rule: N/A

Complaint Item: 7 - Plumbing supplies were from their own stock but was represented differently. Investigator’s Observation: This is a Contractual Dispute. The ROC has no jurisdiction over the matter. Governing Rule: N/A

Complaint Item: 8 - Adanac’s failure to install air conditioning units that complied with the plans and specifications. Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). Air Conditioning units were later installed by a 3rd party Governing Rule: N/A

Complaint Item: 9 - Adanac’s failure to install underground conduit. Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). The underground conduit was later

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

installed by a 3rd party. Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov RCC100 08/19

Complainant: McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Respondent: Adanac Builders Corporation DBA: 17505 N 79th AVE Suite 209 Glendale, AZ 85308

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 October 20, 2023

License No. ROC 189034

Re:Complaint No. 2023-02548

WRITTEN DIRECTIVE FROM THE REGISTRAR

Dear Respondent:

After investigation, the Registrar determined that you failed to meet the requirements of A.R.S. § 32-1154(A), and now issues this Directive requiring you to take appropriate corrective action. Failure to comply with this Directive constitutes a violation of A.R.S. § 32-1154(A)(22) and may result in the issuance of a citation, discipline of your license, and a civil penalty pursuant to A.R.S. § 32-1154(E) of up to $500.00. You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on November 8th, 2023.

RESTRICTIONS • You may not perform or hire other contractors to perform work that is outside the scope of your license. • If your license is currently suspended for administrative reasons 1, or is inactive, expired, or cancelled, you may not perform any corrective work nor contract in any manner, which includes hiring other contractors to perform work, until the suspension of your license(s) has been lifted or your license(s) has been reactivated.

DIRECTIVE REQUIREMENTS You are directed to remedy the following violations by the appropriate means:

Compliance Item: 3 - Adanac’s failure to comply with the plans and specifications in connection with construction of the roof. Investigator’s Observation: Foam roof installed by Respondent is not consistent with contract drawings which call out TPO. No change order was provided to substantiate the mutual desire for this change in roofing material. Respondent asserts that approval of payment applications is proof of acceptance of this material. This is not sufficient evidence to substantiate that

This means the license is suspended for lack of qualifying party, lack of bond, nonrenewal, Recovery Fund payout, or for any reason listed in A.R.S. § 32-1124(F). 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 the installation of the current roofing material, which does not comply with contract documents (drawings), is acceptable. Respondent should correct the roof to comply with contract documents and complete any related permit/inspection required for this activity. Governing Rule: ARS 32-1154(A)(2)(a) - Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Compliance Item: 5 - Adanac’s failure to install flashing around the windows Investigator’s Observation: Verified. Flashing on subject windows does not comply with approved contract drawings. Respondent provided no information from manufacture to validate the reason for this non-compliance. Respondent should correct the subject windows to comply with contract documents (drawings), correct any damage caused by this repair and complete any related permit/inspection required for this activity. Governing Rule: ARS 32-1154(A)(2)(a) - Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Compliance Item: 1 - (R) failed to pay its sub-contractors and suppliers A.R.S. § 32-1154(A)(10) Investigator’s Observation: This item is relative to a No Pay complaint which should be filed by the sub-contractor. Governing Rule: N/A

Compliance Item: 2 - Violation of A.R.S. § 32-1154(A)(6). Adanac engaged in repeated fraudulent acts by repeatedly misre-presenting that it paid its subcontractors & suppliers Investigator’s Observation: Not a workmanship or abandonment item which can be investigated and cited. Governing Rule: N/A

Compliance Item: 4 - Violation of A.R.S. § 32-1154(A)(16) Adanac appears to have knowingly contracted beyond the scope of its licenses in connection with the defective installation of a fire hydrant Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). The fire hydrant was later installed by a 3rd party. Governing Rule: N/A

Compliance Item: 6 - Grease Interceptor was billed but never installed by Adanac Builders. Investigator’s Observation: Unable to verify. Complaint item was subject to modification ARS 32-1155(D)(2). The Grease Interceptor was later installed by a 3rd party Governing Rule: N/A

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 Compliance Item: 7 - Plumbing supplies were from their own stock but was represented differently. Investigator’s Observation: This is a Contractual Dispute. The ROC has no jurisdiction over the matter. Governing Rule: N/A

Compliance Item: 8 - Adanac’s failure to install air conditioning units that complied with the plans and specifications. Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). Air Conditioning units were later installed by a 3rd party Governing Rule: N/A

Compliance Item: 9 - Adanac’s failure to install underground conduit;. Investigator’s Observation: Unable to verify. Complaint item was subject to modification pursuant to ARS 32-1155(D)(2). The underground conduit was later installed by a 3rd party. Governing Rule: N/A

Please direct all questions regarding this Directive to the undersigned Investigator.

Sincerely,

Todd Anderson Todd Anderson, Investigator #227 (602) 771-6769 [email redacted] 1700 W Washington St, Ste 105 Phoenix, AZ 85007

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Case No. 2023-02548 McDowell Hotel I LLC,

COMPLAINANT, v. CITATION Adanac Builders Corporation, License No. ROC 189034,

RESPONDENT.

The Registrar issues this Citation to Adanac Builders Corporation (“Respondent”) under A.R.S. § 32-1155(A). If Respondent fails to answer this Citation by December 20, 2023, then under A.R.S. § 32-1155(C), Respondent’s failure to answer may be deemed an admission of the act or acts charged in the underlying complaint, and the Registrar may then suspend or revoke Respondent’s license(s). THE WRITTEN COMPLAINT On February 28, 2023, McDowell Hotel I LLC DBA: (“Complainant”) filed a written complaint with the Registrar. A copy of that Complaint is attached to this Citation. A FORMAL STATEMENT OF THE CHARGES AGAINST RESPONDENT The Registrar investigated this matter and finds cause to charge Respondent with violation(s) of Title 32, Chapter 10 of the Arizona Revised Statutes. Respondent is charged with violating: Charge :1 A.R.S. § 32-1154(A)(3) - R4-9-108(a) Violation of any rule adopted by the Registrar; Namely A.A.C. R4-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Charge :2 A.R.S. § 32-1154(A)(22) Failure to take appropriate corrective action to comply with this chapter or with rules adopted pursuant to this chapter without valid justification within a reasonable period of time after receiving a written directive from the Registrar. The written directive shall set forth the time within which the contractor is to complete the remedial action. The time permitted for compliance shall not be less than fifteen days from the date of issuance of the directive. A license shall not be revoked or suspended nor shall any other penalty be imposed for a violation of this paragraph until after a hearing has been held. If the matter proceeds to a hearing and the administrative law judge determines that any of the charges listed above are supported by a preponderance of the evidence, then Respondent’s license(s) may be subject to suspension or revocation, and Respondent may be subject to other penalties provided by law, including civil penalties under A.R.S. §§ 32-1154(E) and (F).

FILING A WRITTEN ANSWER Respondent must appear by filing with the Registrar a written answer to the citation and complaint showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). Respondent’s written answer should contain the heading “Written Answer to Citation and Complaint” and should include the case number, which is Case No. 2023-02548. How to File a Written Answer: Respondent’s written answer may be submitted in the following ways: In-Person: 1700 W. Washington St., Ste. 105, Phoenix, Arizona, 85007-2812 Mail: P.O. Box 18244, Phoenix, Arizona, 85005-8244 Email: [email redacted] of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 The Registrar’s normal office hours are 8:00 a.m. to 5:00 p.m., Monday through Friday. If Respondent submits a written answer by mail, it is not filed with the Registrar until the Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than December 20, 2023. This deadline is calculated under A.R.S. §§ 32-1155(A) and (B), which provides a deadline ten days after service of the Citation. Service of the Citation and Complaint is complete five days after the Registrar mails a copy of the Citation and Complaint to Respondent’s latest address of record in the Registrar’s office. Consequences for Failing to File a Written Answer: If Respondent fails to answer, Respondent’s failure may be deemed an admission of the act or acts charged in the written complaint. A.R.S. § 32-1155(C). The Registrar may then suspend or revoke Respondent’s license(s). THE ADMINISTRATIVE HEARING If Respondent files a timely written answer contesting any charges in the Complaint, then the Registrar will request the Office of Administrative Hearings set a date for an administrative hearing and will notify all the parties at least 30 days before that hearing. A.R.S. § 41-1092.05(D). INVESTIGATOR’S APPEARANCE AS A WITNESS The Registrar’s assigned investigator will appear as a witness at the hearing. If either party demands the attendance at the hearing of any other person, that party must obtain and serve a subpoena in compliance with the rules and processes established by the Office of Administrative Hearings.

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 RESPONDENT’S RIGHT TO REQUEST AN INFORMAL SETTLEMENT CONFERENCE Under A.R.S. § 41-1092.06, if Respondent submits a request to the Registrar for an informal settlement conference, the Registrar must hold a conference within 15 days after receiving the request. Respondent’s request for an informal settlement conference must be in writing and must be filed no later than 20 days before the administrative hearing. A.R.S. § 41- 1092.06(A). The Registrar will not close or settle any case without both parties’ appearance at the Settlement Conference. The parties participating in the settlement conference must have the authority to settle the case and must waive their right to object to the participation of the Registrar’s settlement conference representative in the final administrative decision. A.R.S. § 41-1092.06(B). Any statements, either written or oral, made by the parties at the conference, including a written document, created or expressed solely for the purpose of settlement negotiations, are inadmissible in the administrative hearing. A.R.S. § 41-1092.06(B).

RESPONDENT’S PRIOR RECORD Under A.A.C. R4-9-117, in determining the appropriate discipline, the administrative law judge and the Registrar may consider not only facts in the current case, but also facts in prior cases and any documents regarding Respondent on file with the Registrar. Respondent’s prior disciplinary record and current license(s) status may be considered as a mitigating or aggravating factor in determining the appropriate discipline. EVIDENTIARY DISCLAIMER By issuing this Citation, the Registrar is directing Respondent to file a written answer to the Citation and Complaint, showing cause, if any, why Respondent’s license(s) should not be suspended or revoked. A.R.S. § 32-1155(A). This Citation does not constitute proof that any of 6

1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 charge or allegation in Complainant’s written complaint is in fact true. This Citation does not constitute proof that Respondent violated any statutory provision or rule adopted by the Registrar. Dated December 5, 2023. By: /s/ Gail Mathews Gail Mathews Legal Assistant II Legal Department Arizona Registrar of Contractors

COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, December 5, 2023 to: Respondent Certified Mail No: [number redacted] Adanac Builders Corporation 17505 N 79th AVE Suite 209 Glendale, AZ 85308

Copy mailed by USPS First Class mail this same date to: Respondent Adanac Builders Corporation 17505 N 79th AVE Suite 209 Glendale, AZ 85308 Complainant McDowell Hotel I LLC 1750 N 95th Ln Phoenix, AZ 85037 Kevin M. Estevez, Esq 2 North Central Avenue, Suite 2000 Phoenix, AZ 85004

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602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Complainant at email address on record with the Registrar Complainant’s Attorney at email address of record with Registrar

Case No. 2023-02548

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1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees Complaint Number: Mail to: Registrar of Contractors ______________________ P.O. Box 18243 Phoenix, AZ 85005-8243

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any) Dr. Tushar Gohel McDowell Hotel I LLC Mailing Address (Enter jobsite in Contract/Project section) City State Zip 1750 North 95th Lane Phoenix AZ 85037 Phone Number Email [email redacted] I consent to receive communications electronically in connection with this case Yes No Name of Attorney (if any) Kevin M. Estevez Street Address of Attorney City State Zip North Central Avenue, Suite 2000 Phoenix AZ 85004 Phone Number of Attorney Email of Attorney 602.508.6225 [email redacted] Contractor Information Name (as shown on contract/invoice) ROC License Number(s) Adanac Builders Corporation 339911; 189034; 328481 Street Address City State Zip 17505 North 79th Avenue, Suite 401 Glendale AZ 85308 Phone Number Email 623.266.2761 [email redacted] Name of Person(s) Representing License David P Fix; Susan Deanne Fix Contract/Project Information Contract Date Contract Amount Amount Paid 06/29/2020 $8,935,779.00 $5,888,902.78 Date Work Started Date Work Stopped Date Work Was Completed 9/30/2020 10/14/2022 Not Complete Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip 1750 North 95th Lane Phoenix AZ 85037 Name of Construction Site Owner Construction Site Name (if applicable) McDowell Hotel I LLC Holiday Inn Express & Suites/McDowell Hotel I LLC Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for Abandonment Poor Work Fail to pay; fraud; beyond lic. Other _______________________ I have contacted the contractor by Phone Email Letter N/A Have you filed a complaint in court? Yes No N/A If yes, provide a copy of civil complaint Has any work been corrected? Yes No If yes, by whom? ______________________ The contract was Written Oral Both All change orders were Written Oral Both N/A This project was Commercial Residential On Tribal Land This project involved New Home Remodel Repair Commercial Building Other ____________________ A building permit was obtained by Contractor Property Owner Building permit # ________________

RCC099 12/05/18 Licensed Complaint Form For Current or Suspended Licensees

Contract/Project Information Continued List and briefly describe each complaint item (Please do not write "see attached" or use additional pages unless necessary to further describe issues or list more complaint items) (limited to 100 characters per line)

1.Violation of A.R.S. § 32-1154(A)(10). Adanac failed to pay its subcontractors & suppliers, causing 9 2.mechanics liens to be recorded on the Project totaling $851,712.71. (See Ex. C). Currently, 3 3.subcontractor/supplier liens remain from the following entities: (1) ProFab Construction, LLC for 4.$235,939.73; (2) L&W Supply Corporation for $115,424.73; & (3) Hajoca Corporation for $167,788.63. 5.Further, Complainant was recently forced to pay twice for labor & material furnished: (1) to extin- 6.guish liens recorded by Little Enterprises Inc. d/b/a Stone Cold Masonry and Diversified Roofing; & 7. (2) to get Stucco Rennovations of Arizona & Colter Electric to perform additional work. Complainant 8.demanded that Adanac pay all these funds, but Adanac failed to do so. (See Ex. D). 9. 10.Violation of A.R.S. § 32-1154(A)(6). Adanac engaged in repeated fraudulent acts by repeatedly misre- 11.presenting that it paid its subcontractors & suppliers. Specifically, in each pay app that Adanac 12. submitted to Complainant on the Project, Adanac represented that "all amounts have been paid by 13. [Adanac] for Work for which previous Certificates for Payment were issued and payments received from 14. [Complainant]." Given the liens recorded against the Project, these representations were false & 15. Adanac knew them to be false. In addition, the plans called for the installation of a grease 16. interceptor. And although Adanac purchased a grease interceptor for the Project, installed cleanout 17. pipes indicating the interceptor had been installed, & ostensibly billed for installation of grease 18. interceptor, Complainant discovered no interceptor was installed or left on the property. 19. 20. (See Ex. A for remainder of violation 2 and for violation 3). Signature I declare under penalty of perjury that the information and documents contained on this Complaint Form, included with this complaint, or hereafter submitted in support of this complaint are true and accurate to the best of my knowledge. I will assist in the investigation or in the prosecution of the contractor or other parties, and will, if necessary, attend hearings and testify to facts. Printed Name Signature Date

RCC099 12/05/18

EXHIBIT A Continuation of Violation of A.R.S. § 32-1154(A)(6) Additionally, Adanac fraudulently represented that plumbing materials it was using were from its own supply (rather than furnished from a supplier) and “free from any claims, liens, or encumbrances.” Adanac ostensibly made these misrepresentations to: (1) avoid providing lien waivers from suppliers; and (2) fraudulently obtain payment for plumbing materials for which Adanac was, in turn, failing to pay. After Hajoca Corporation recorded its lien, it was discovered that these materials were purchased from Hajoca and Adanac’s representations regarding the origin of the material were false. See Email and supporting documentation attached hereto as Exhibit F. Finally, Adanac also knowingly installed a foam roof that was of substantially lower quality than what was called for by the plans.

Violation of A.R.S. § 32-1154(A)(16) Adanac appears to have knowingly contracted beyond the scope of its licenses in connection with the defective installation of a fire hydrant. Complainant recently alerted Adanac that the fire hydrant on the east side of the Project was installed below grade and needed to be raised. Complainant also provided Adanac with an opportunity to inspect this defective work. During the inspection, Adanac confirmed that it had self-performed the work relating to the installation of the fire hydrant and offered to fix the same. It was, however, subsequently learned that Adanac apparently lacks the requisite license to perform or repair this work. First, none of Adanac’s licenses seemingly allow Adanac to install the fire hydrant and/or the related line. Second, Adanac prepared and executed a document relating to the Project that indicates that Adanac: (1) was allegedly using Fireshield, Inc.’s “certification to install the fire line;” and (2) “will not hold Fireshield liable or responsible for workmanship on the fire line installed by Adanac Builders Corporation.” See October 14, 2021 Letter signed by Adanac and attached hereto as Exhibit G. To the extent Adanac thought it was performing work under Fire Shield, Inc.’s C-16 license, it was not permitted to do so and the resulting work was unlicensed.

Additional Attachments: Fully executed contract attached hereto as Exhibit B. Liens attached hereto as Exhibit C. Demand Letters attached hereto as Exhibit D. Payment Application attached hereto as Exhibit E. Supporting Documentation for Hajoca materials attached hereto as Exhibit F. Letter signed by Adanac attached hereto as Exhibit G. EXHIBIT B i AIA DocumentA10f-2017 Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum

AGREEMENT made as of the Twenty Ninth day of June in the year Two Thousand Twenty {In words, indicate day, month and year.) ADDITIONS AND DELETIONS: The author of this document has BETWEEN the Owner: added information needed for its (Name, legal status, address and other information) completion. The author may also have revised the text of the original McDowell Hotel I, LLC AIA standard form. An Additions and 1750 N . 95 th Lane Deletions Report that notes added Phoenix, AZ 85037 information as well as revisions to the standard form text is available from the author and should be reviewed. A and the Contractor: vertical line in the left margin of this document indicates where the author (Name, legal status, address and other information) has added necessary information and where the author has added to or Adanac Builders Corporation deleted from the original AIA text. 17505 N. 79th Avenue Suite 40 I Phoenix, AZ 85308 This document has important legal consequences. Consultation with an for the following Project: attorney is encouraged with respect (Name, location and detailed description) to its completion or modification.

The parties should complete Holiday Jnn Express & Suites/McDowell Hotel I, LLC A 101®--2017, Exhibit A , Insurance I 750 N. 95th Lane Phoenix, AZ 85037 and Bonds, contemporaneously with Four Story Wood Frame I 08 Room Hotel 58, 189 sq. ft. this Agreement. AIA Document A201®-2017, General Conditions of The Architect: the Contract for Construction, is (Name, legal status, address and other information) adopted in this document by reference. Do not use with other Associated Architects general conditions unless this E. Palo Verde Street document is modified. Gilbert, AZ 85296

The Owner and Contractor agree as follows.

AIA Document A101"' -2017. Copyright © 1915, 1918, 1925, 1937, 1951 , 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991 , 1997, 2007 and 2017 by The lnit. American Institute of Architects. All rights reserved. The "American lnstrtute of Architects," "AIA," the AIA Logo, "A10 1." and "AIA Contract Documents' are registered trademarks and may oot be used without permission. This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order 1 No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents"' Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) TABLE OF ARTICLES

THE CONTRACT DOCUMENTS

THE WORK OF THIS CONTRACT

DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

CONTRACT SUM

PAYMENTS

DISPUTE RESOLUTION

TERMINATION OR SUSPENSION

MISCELLANEOUS PROVISIONS

ENUMERATION OF CONTRACT DOCUMENTS

EXHIBIT A INSURANCE AND BONDS

ARTICLE 1 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions oftbe Contract (General, Supplementary, and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement, and Modifications issued after execution oftl1is Agreement, all o f which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations, or agreements, either written or oral. An enumeration o f the Contract Documents, other than a Modification, appears in Article 9.

ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others.

ARTICLE 3 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION § 3.1 The date of commencement of the Work shall be: (Check one ofthe following boxes.)

The date oftbis Agreement.

A date set forth in a notice to proceed issued by the Owner.

[X] Established as fo llows: (Insert a date or a means to determine the date ofcommencement of the Work.)

Within 15 Working Days fro m Closing of the Loan

lf a date of commencement of the Work is not selected, then the date of commencement shall be the date of this Agreement.

§ 3.2 The Contract Time shall be measured from the date of commencement of the Work.

§ 3.3 Substantial Completion § 3.3.1 Subject to adj ustments of the Contract Time as provided in the Contract Documents, the Contractor shall achieve Substant ial Completion o f the entire Work: Substant ial Completion is achieved at Certificate of Occupancy, but punch list items may remain. {Check one of the following boxes and complete the necessary inf ormation.) AIA Document A101"' - 2017. Copyright © 1915, 19 18, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. A merican Institute of Architects. All ri ghts reserved. The "American Institute of Architects," "AIA," the AIA Logo, "A101 ," and "AIA Conlract Documents' are registered trademarlcs and may not be used without pennissIon. This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order 2 No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents• Tenns of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) [X ] Fourteen ( 14) months from the date of commcncement of the Work.

[ ] By the following date:

§ 3.3.2 Subject to adjustments of the Contract Time as provided in the Contract Documents, if portions of the Work are to be completed prior to Substantial Completion of the entire Work, the Contractor shall achieve Substantial Completion of such portions by the following dates:

Portion of Work Substantial Completion Date xx.xx :xxxx § 3.3.3 If the Contractor fails to achieve Substantial Completion as provided in this Section 3.3, liquidated damages, if any, shall be assessed as set forth in Section 4.5.

ARTICLE 4 CONTRACT SUM § 4.1 The Owner shall pay the Contractor the Contract Sum in cun·ent funds for the Contractor's perfonnance of the Contract. The Contract Sum shall be Eight Million Five Hundred Ninety-three Thousand Three Hundred Forty-seven Dollars and Zero Cents($ 8,593,347.00 ), subject to additions and deductions as provided in the Contract Documents.

§ 4.2 Alternates § 4.2.1 Alternates, if any, included in the Contract Sum:

Item Price xx.xx xx.xx § 4.2.2 Subject to the conditions noted below, the following alternates may be accepted by the Owner following execution of this Agreement. Upon acceptance, the Owner shall issue a Modification to this Ag reement. (Insert below each alternate and the conditions that must be me/for the Owner to accept the alternate.)

Item Price Conditions for Acceptance xx.xx xxxx xx.xx § 4.3 Allowances, if any, included in the Contract Sum: (Identify each allowance.) (Row deleted)

See Article 9.4 xxxx § 4.4 Unit prices, if any: (Identify the item and state the unit price and quantity limitations, if any, to which the unit price will be applicable.)

Item Units and Limitations Price per Unit ($0.00) xxxx xxxx xxxx § 4.5 Liquidated damages, if any: (Insert terms and conditions for liquidated damages, if any.)

:xxxx § 4.6 Other: (Insert provisions for bonus or other incentives, if any, that might result in a change to the Contract Sum.)

xx.xx

AIA Document A101., -2017. Copyright © 19 15, 1918, 1925, 1937, 195 1, 1958, 1961 , 1963, 1967, 1974 , 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. American Institute of Architects. All rights reserved. The "American Institute of Architects: "AIA: the AIA Logo, "A101: and "AIA Contract Documents· are registered trademarks and may not be used without permission. This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order 3 No.[number redacted] which expires on 07/03/2021, is not for resale, Is licensed for one-lime use only, and may only be used in accordance with the AIA Contract Documents"' Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) ARTICLE 5 PAYMENTS § 5.1 Progress Payments § 5.1.1 Based upon Appl ications for Payment submitted to the Arch itect by the Contractor and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided be low and elsewhere in the Contract Documents.

§ 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows:

xxxx § 5.1.3 Provided that an Application for Payment is received by the Architect not later than the 5th day of a month, the Owner shall make payment of the amount certified to the Contractor not later than the 15th day of the month. If an Application for Payment is received by the Arch itect after the app lication date fixed above, payment of the amount certified shall be made by the Owner not later than ten ( l O) days after the Architect receives the Application for Payment. (Federal, state or focal laws may require payment within a certain period oftime.)

§ 5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values sha ll be prepared in such fonn, and supported by such data to substantiate its accuracy, as the Architect may require. This schedule of values shall be used as a basis for reviewing the Contractor's Applications for Payment.

§ 5.1.5 Applications for Payment shall show the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment.

§ 5.1.6 In accordance with AJA Doc ument A20 IThL2Q 17, General Conditions of the Contract for Construction, and subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows:

§ 5.1 .6.1 The amount of each progress payment shall fi rst include: .1 That portion of the Contract Sum properly allocable to completed Work; .2 That portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the s ite for subsequent incorporation in the co mpleted construction, or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing; and .3 That portion of Construction Change Directives that the Architect determines, in the Architect's professional judgment, to be reasonably justified.

§ 5.1.6.2 The amount of each progress payment shall then be reduced by: .1 The aggregate of any amounts previously paid by the Owner; .2 The amount, if any, for Work that remains uncorrected and for which the Architect has previously withheld a Certificate for Payment as provided in Article 9 of AJA Document A201-201 7; .3 Any amount for which the Contractor does not intend to pay a Subcontractor or material supplier, unless the Work bas been performed by others the Contractor intends to pay; .4 For Work perfonned or defects discovered since the last payment application, any amount for which the Architect may withl1old payment, or nullify a Certificate of Payment in whole or in part, as provided in Article 9 of AlA Document A20 1- 2017; and .5 R etainage withheld pursuant to Section 5.1.7.

§ 5.1.7 Retainage § 5.1.7.1 For each progress payment made prior to Substantial Completion of the Work, the Owner may withhold the following amount, as retainage, from the payment otherwise due: (insert a percentage or amount to be withheld as retain age from each Application for Payment. The amount of retainage may be limited by governing law.)

10%

AIA Document A101• - 2017. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961 , 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. American Institute of Architects. All rights reserved. The "Amencan Institute of Architects," "AIA," the AtA Logo, "A 101," and "AIA Contract Documents· are registered trademarks and may not be used without permission. This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents® Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) § 5.1.7.1.1 The following items are not subject to retainage: (insert any items not subject to the withholding ofretainage, such as general conditions, insurance, etc.)

General Requirements, overhead, profit and taxes per Cost Worksheet (Schedule of Values)

§ 5.1.7.2 Reduction or limitation ofretainage, if any, shall be as follows: (ff the retainage established in Section 5.1. 7.1 is to be modified prior to Substantial Completion ofthe entire Work, including modifications for Substantial Completion ofportions of the Work as provided in Section 3.3.2, insert provisions for such modifications.)

xxxx § 5.1 .7.3 Except as set forth in this Section 5.1.7.3, upon Substantial Completion of the Work, the Contractor may submit an Application for Payment that includes the retainage withheld from prior Applications for Payment pursuant to this Section 5.1. 7. The Application for Payment submitted at Substantial Completion shall not include retainage as follows: (Insert any other condilionsfor release ofretainage upon Substantial Completion.)

xxxx § 5.1.8 If final completion of the Work is materially delayed through no fa ul t of the Contractor, the Owner shall pay the Contractor any additional amounts in accordance with Article 9 of AJA Document A201- 2017.

§ 5.1.9 Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site.

§ 5.2 Final Payment § 5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when .1 the Contractor has fully perfonned the Contract except for the Contractor's responsibility to correct Work as provided in Article 12 of AIA Document A201- 2017, and to satisfy other requirements, if any, which extend beyond final payment; and .2 a final Certificate for Payment has been issued by the Architect.

§ 5.2.2 The Owner's final payment to the Contractor shall be made no later than 30 days after the issuance of the Architect's final Certificate for Payment, or as follows:

xxxx § 5.3 Interest Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of interest agreed upon, if any.)

1.5 % per month - lf delay in payments is beyond owner's control, no interest to be charged.

ARTICLE 6 DISPUTE RESOLUTION § 6.1 Initial Decision Maker The Architect will serve as the Initial Decision Maker pursuant to Article 15 of AJA Document A20 1- 20 17, unless the parties appoint below anoU1er individual, not a party to this Agreement, to serve as the Initial Decision Maker. (ffthe parties mutually agree, insert the name, address and other contact information ofthe initial Decision Maker, if other than the Architect.)

xxxx

AIA Document A101• - 2017. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. American Institute of Architects. All rights reserved. The "American lnslltute of Architects," "AIA," the AIA Logo, "A101 ." and "AIA Contract Documents· are registered trademarks and may not be used without permission. This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents"' Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) § 6.2 Binding Dispute Resolution For any Claim subject to, but not resolved by, mediation pursuant to Artic le 15 of AfA Document A201-2017, the method of binding d ispute resolution shall be as follows: (Check the appropriate box.)

[X] Arbitration pursuant to Section 15.4 of A JA Document A20 1-2017

Litigation in a court of competent jurisdiction

Other (Specify)

ff the Owner and Contractor do not select a method of binding dispute resolution, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, C laims will be resolved by litigation in a court of competent jurisdiction.

ARTICLE 7 TERMINATION OR SUSPENSION § 7.1 The Contract may be term inated by the Owner or the Contractor as provided in Article 14 of AIA Document A201- 2017.

§ 7.1.1 Tfthe Contract is terminated for the Owner's conven ience in accordance with Article 14 of AIA Document A201- 20 17, then the Owner shall pay the Contractor a termination fee as follows: (Insert the amount of, or methodfor determining, the fee, ifany, payable to the Contractorfollowing a termination for the Owner's convenience.)

xxxx § 7.2 The Work may be suspended by the Owner as provided in Article I 4 of AJA Document A20 1- 20 17.

ARTICLE 8 MISCELLANEOUS PROVISIONS § 8.1 Where reference is made in this Agreement to a provision of A IA Document A201- 20 I7 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. I. Surplus or unused amounts listed as Allowance line items in SOY (Schedule of Values) may be relocated to other line items or credited to owner. § 8.2 The Owner's representative: (Name, address, email address, and other information)

Tushar Gohel MD 630-696-7 I 65/[email redacted]

§ 8.3 The Contractor's representative: (Name, address, email address, and other information)

David Fix 602-292-3987/[email redacted]

§ 8.4 Neither the Owner's nor the Contractor's representative shall be changed without ten days' prior notice to the other party.

§ 8.5 Insurance and Bonds § 8.5.1 The Owner and the Contractor shall purchase and maintain insurance as set forth in AIA Document A IOJTM_2017, Standard Form of Agreement Between Owner and Contractor w here the basis of payment is a Stipulated Sum, Exhibit A, Insuran ce and Bonds, and elsewhere in the Contract Documents. Owner - Builder's Risk Policy Contractor - GL Policy with owner as named insured

AIA Document A101• -2011. Copyright © 1915, 1918, 1925, 1937. 1951, 1958, 1961 , 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. American Institute of Architects. All rights reserved. The "American lnsblute of Architects." "AtA," the AIA Logo, "A101 ," and "AIA Contract Documents· are registered trademarks and may not be used withoul permission This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents"' Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) § 8.5.2 The Contractor shall provide bonds as set forth in AlA Document A IO1TM._20 17 Exhibit A, and elsewhere in the Contract Documents.

§ 8.6 Notice in electronic fom1at, pursuant to Article 1 of AlA Document A201- 2017, may be given in accordance with AlA Document E203TM_2013, Building Information Modeling and Digital Data Exhibit, if completed, or as otherwise set forth below: (Ifother than in accordance with AJA Document £203- 2013, insert requirements for delivering notice in electronic format such as name, title, and email address of the recipient and whether and how the system will be required to generate a read receipt/or the transmission.)

§ 8.7 Other provisions:

xx.xx ARTICLE 9 ENUMERATION OF CONTRACT DOCUMENTS § 9.1 This Agreement is comprised of the following documents: .1 AlA Document A IO 1TM._2017, Standard Form of Agreement Between Owner and Contractor .2 Ex hibit A, Insurance .3 AIA Document A20I™-2017, Articles 14. 1 and 14.2 .4 HIE Phoenix Costs Worksheet (Schedule of Values) Signed by Builder and Owner

.5 Drawings/Documents 1) Civil / Utility plans dated 4/28/2019 by Babbit Nelson Engineering (Darren Smith) of Mesa, Arizona. 2) Structure Engineering report dated 11/8/2019 by Arun Inc (Arpan B. Tailor) of Chandler, Arizona. 3) Landscape Plans by JSR Design Studios (Jonathan Robertson) of Phoenix, Arizona. 4) Approved Building Plans - 3rd Submittal Drawings dated 3/26/2020 by Associated Architects approved by City of Phoenix 5) ACS Geotechnical Report dated 7/31/2019 6) IHG Preliminary Design Review dated 8/26/2019 7) IHG Brand Standard Manual dated 11/14/2019

Number Title Date x:xxx xx.xx xx.xx .6 Specifications

Section Title Date Pages xxxx xx.xx xx.xx xx.xx .7 Addenda, if a ny:

Number Date Pages xx.xx xx.xx xx.xx Portions of Addenda relati ng to bidding o r proposal requirements are not part of the Contract Documents unless the bidding or proposal requirements are also enumerated in this Article 9 .

.8 Other Exhibits: (Check all boxes that apply and include appropriate information identifying the exhibit where required.)

[ ] AlA Document E204TM_20 17, Sustainable Projects Exhibit, dated as indicated below: (Insert the date ofthe £204-2017 incorporated into this Agreement.) AIA DocumentA101• -2011. Copyright © 1915, 1918, 1925, 1937, 1951. 1958, 1961. 1963, 1967, 1974, 19TT, 1987, 1991, 1997, 2007 and 2017 by The lnit. American Institute of Architects. All righls reserved. The "American Institute of Architects," "AIA," the AIA Logo, "A101 ," and "AIA Contract Documents· are registered trademar1's and may not be used wlthoul permission. This document was produced by AIA soflware at 15:29:13 ET on 07/08/2020 under Order No.[number redacted] which expires on 07/03/2021, is not for resale. is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents• Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) The Sustainabi lity Plan :

Title Date Pages

Supplementary and other Conditions oftbe Contract:

Document Title Date Pages

.9 Other documents, if any, listed below: (List here any additional documents that are intended to form part of the Contract Documents. ALA Document A20 / TM._20/7 provides that the advertisement or invitation to bid, Instructions to Bidders, sample forms. the Contractor's bid or proposal, portions ofAddenda relating to bidding or proposal requirements, and other information furn ished by the Owner in anticipation of receiving bids or proposals, are not part of the Contract Documents unless enumerated in this Agreement. Any such documents should be listed here only if intended to be part of the Contract Documents.)

Th;s AgceemeJ ,ed ;'._to as of the day and yeac fost writtea above.

OWNER :l,ef!: , - CO _N_~ C...__----\jlc:....ign-atu-r ~~ e_!) _ _ _ _ _ _ __

Tushar Gohel il""'~ .-£'¥ CEo (Printed name and title) (Printed name and title)

AIA Document A101 • - 2017. Copyrighl © 1915. 1918, 1925, 1937, 1951, 1958, 1961 , 1963, 1967, 1974, 1977, 1987, 1991, 1997, 2007 and 2017 by The lnit. American lnstilule of Architects. All rig hts reserved . The "American lns~tute or Architects ," "AIA," the AIA Logo, "A101," and "AIA Contract Documents· are registered trademarl<s and may not be used without pennission . This document was produced by AIA software at 15:29:13 ET on 07/08/2020 under Order 8 No.[number redacted] which expires on 07/03/2021, is not for resale, is licensed for one-time use only, and may only be used in accordance with the AIA Contract Documents• Terms of Service. To report copyright violations, e-mail [email redacted]. User Notes: ([number redacted]) 17505 N. 79th Ave., Suite 401, Peoria, AZ 85308 Ofc:623.266.2761/Fax:623.328.5186 AZ ROC License# - 189034-KB01 CA ROC License# - 1046543

The following Sections are from AIA Document A201-2017

ARTICLE 14 TERMINATION OR SUSPENSION OF THE CONTRACT § 14.1 Termination by the Contractor § 14.1.1 The Contractor may terminate the Contract if the Work is stopped for a period of consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub- subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, for any of the following reasons: .1 Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped; .2 An act of government, such as a declaration of national emergency, that requires all Work to be stopped; .3 Because the Owner/Lender has not issued a Certificate for Payment and has not notified the Contractor of the reason for withholding certification as provided in Section 9.4.1, or because the Owner has not made payment on a Certificate for Payment within the time stated in the Contract Documents; or

§ 14.1.2 The Contractor may terminate the Contract if, through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, their agents or employees, or any other persons or entities performing portions of the Work, repeated suspensions, delays, or interruptions of the entire Work by the Owner as described in Section 14.3, constitute in the aggregate more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less.

§ 14.1.3 If one of the reasons described in Section 14.1.1 or 14.1.2 exists, the Contractor may, upon seven days’ notice to the Owner/Lender, terminate the Contract and recover from the Owner payment for Work executed, as well as reasonable overhead and profit on Work not executed, and costs incurred by reason of such termination.

§ 14.1.4 If the Work is stopped for a period of 60 consecutive days through no act or fault of the Contractor, a Subcontractor, a Sub-subcontractor, or their agents or employees or any other persons or entities performing portions of the Work because the Owner has repeatedly failed to fulfill the Owner’s obligations under the Contract Documents with respect to matters important to the progress of the Work, the Contractor may, upon seven additional days’ notice to the Owner and the Architect, terminate the Contract and recover from the Owner as provided in Section 14.1.3. § 14.2 Termination by the Owner for Cause § 14.2.1 The Owner may terminate the Contract if the Contractor .1 repeatedly refuses or fails to supply enough properly skilled workers or proper materials;

.2 fails to make payment to Subcontractors or suppliers in accordance with the respective agreements between the Contractor and the Subcontractors or Suppliers;

.3 repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; or

.4 otherwise is guilty of substantial breach of a provision of the Contract Documents.

§ 14.2.2 When any of the reasons described in Section 14.2.1 exist, and upon certification by the Owner/Lender that sufficient cause exists to justify such action, the Owner may, without prejudice to any other rights or remedies of the Owner and after giving the Contractor and the Contractor’s surety, if any, seven days’ notice, terminate employment of the Contractor and may, subject to any prior rights of the surety: .1 Exclude the Contractor from the site and take possession of all materials, equipment, tools, and construction equipment and machinery thereon owned by the Contractor;

.2 Accept assignment of subcontracts pursuant to Section 5.4; and

.3 Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work.

§ 14.2.3 When the Owner terminates the Contract for one of the reasons stated in Section 14.2.1, the Contractor shall not be entitled to receive further payment until the Work is finished.

§ 14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for the Architect’s services and expenses made necessary thereby, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor. If such costs and damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner. EXHIBIT C EXHIBIT D Kevin M. Estevez Direct: (602) 508-6225 [email redacted]

Two North Central Avenue, Suite 2000 | Phoenix, AZ 85004 Phone: (602) 508-6210 | Fax: (602) 508-6211

November 23, 2022

VIA FIRST-CLASS MAIL AND EMAIL

Douglas F. Dieker Dieker Copple, PLLC 14256 N. Northsight Blvd., Ste. 110 Scottsdale, AZ 85260 [email redacted]

Re: McDowell Hotel I, LLC v. Adanac Builders Corporation Project: Holiday Inn Express & Suites/McDowell Hotel I, LLC Subcontractor: Little Enterprise, Inc. dba Stone Cold Masonry

Dear Doug:

Enclosed herewith is a copy of the Notice and Claim of Mechanic’s, Materialmen’s or Professional Services Lien (the “Lien”) recently recorded by Little Enterprises, LLC dba Stone Cold Masonry (“Stone Cold”) on the Holiday Inn Express & Suites/McDowell Hotel I, LLC Project (the “Project”). As set forth in the Lien, Stone Cold claims that it is owed $55,148.50 for labor and material furnished to the Project.

Based on my review of the payment applications submitted by Adanac in connection with the Project, it appears that Adanac billed and was paid for Stone Cold’s scope of work (except for retention). Accordingly, it appears that Adanac was obligated to pay substantially all the sums claimed by Stone Cold long ago. If Adanac contends otherwise, please provide a written explanation of Adanac’s position. To the extent that Adanac has failed to pay Stone Cold amounts owed, it will serve as additional evidence of Adanac’s repeated failure to make payments to its subcontractors and/or suppliers, further justifying McDowell’s termination of Adanac. See Glazer Const. Co. v. U.S., 52 Fed. Cl. 513, 526 (2002).

In light of the above, McDowell hereby demands that Adanac immediately pay Stone Cold and cause the Lien to be released. If Adanac fails to pay Stone Cold by 5:00 p.m. on Wednesday, November 30, 2022, McDowell will have no choice but to take action to release the Lien. If that is the case, McDowell will then seek to recover the amount of its (1) payment and/or (2) other costs associated with causing Stone Cold to release the lien from Adanac.

G:\Docs\McDowell Hotel\Corres\2022.11.23 Estevez to Dieker re Stone Cold.docx November 23, 2022 Page 2

Please feel free to contact me should you wish to discuss any of the foregoing.

Very truly yours,

Kevin M. Estevez KME/vc Enclosure

G:\Docs\McDowell Hotel\Corres\2022.11.23 Estevez to Dieker re Stone Cold.docx EXHIBIT E EXHIBIT F 2/22/23, 8:50 AM Gmail - 40816 RE: Back up documents for Plumbing

Tushar Gohel MD <[email redacted]>

40816 RE: Back up documents for Plumbing messages

Caspersen, Katy <[email redacted]> Mon, Feb 13, 2023 at 8:03 AM To: Tushar Gohel MD <[email redacted]>, Colleen McMahon <[email redacted]>, Navin Kuber <[email redacted]>, Fergal Flanagan <[email redacted]>, Bryan Borders <[email redacted]>

Dr. Gohel –

Throughout the project Adnac has claimed that they self-performed the plumbing work and provided materials from their own stock. We requested backup documentation with every draw in which they drew on the plumbing line and they indicated with each draw that all plumbing work was self-performed and provided an out of stock materials certificate (see attached sample from draw 5), per the attached Adnac has certified that any materials used were free of claims.

Regarding Electrical, our records indicate that Coulter Electric has received payment totaling $496,999.35. The other funds disbursed on this line were for the low voltage subcontractor (Cable-It Communications) and work Adnac claimed as self-performed for services that did not require an electrical license (see below email correspondence from Adnac regarding this).

Please let me know if you have any questions or need any additional information relating to these two lines.

Thanks.

Katy

https://mail.google.com/mail/u/0/?ik=ae1347b038&view=pt&search=all&permthid=thread-f%3A1757728621135509263&simpl=msg-f%3A17577286211… 1/3 2/22/23, 8:50 AM Gmail - 40816 RE: Back up documents for Plumbing

Katy Caspersen | Operations Manager

Direct: 541.593.4228 | Main: 541.593.3600 | Fax: 541.593.3604

[email redacted]

Tetra Tech, Inc.| Complex World, Clear Solutions

Construction Management Division

56835 Venture Ln #204 | Sunriver, OR 97707 | www.tetratech.com.CRM

PLEASE NOTE: This message, including any attachments, may include privileged, confidential and/or inside information. Any distribution or use of this communication by anyone other than the intended recipient is strictly prohibited and may be unlawful. If you are not the intended recipient, please notify the sender by replying to this message and then delete it from your system.

From: Tushar Gohel MD <[email redacted]> Sent: Monday, February 13, 2023 6:09 AM To: Caspersen, Katy <[email redacted]>; Colleen McMahon <[email redacted]>; Navin Kuber <[email redacted]>; Fergal Flanagan <[email redacted]>; Bryan Borders <[email redacted]> Subject: Back up documents for Plumbing

Katy,

We received this mechanic's lien for line item 108/1502 for Plumbing.

They have not been paid for material since the project started.

As of Draw 17, 82% completed based on inspection by tetratach.

Do you have any backup documents?

Thanks

Tushar Gohel, MD

Adnac - Out of Stock Certificate.pdf 23K

Tushar Gohel MD <[email redacted]> Mon, Feb 13, 2023 at 8:23 AM To: Kevin Estevez <[email redacted]>, Navin Kuber <[email redacted]>

Kevin

https://mail.google.com/mail/u/0/?ik=ae1347b038&view=pt&search=all&permthid=thread-f%3A1757728621135509263&simpl=msg-f%3A17577286211… 2/3 2/22/23, 8:50 AM Gmail - 40816 RE: Back up documents for Plumbing

See below. Fraud created by ADANAC. [Quoted text hidden]

Adnac - Out of Stock Certificate.pdf 23K

Tushar Gohel MD <[email redacted]> Mon, Feb 13, 2023 at 8:26 AM To: "Caspersen, Katy" <[email redacted]> Cc: Bryan Borders <[email redacted]>, Colleen McMahon <[email redacted]>, Fergal Flanagan <[email redacted]>, Navin Kuber <[email redacted]>

Thank you for the clarification.

We did receive Preliminary-Lien for Hajoca plumbing supply initially when project was very early in process. I think you don’t get pre lien copies unless bank had forwarded those to you.

Hajoca provided us with back up documents of invoices dated back long time ago.

Navin, can you share with Tetra-tach and bank for records.

Tushar. [Quoted text hidden]

Caspersen, Katy <[email redacted]> Mon, Feb 13, 2023 at 8:33 AM To: Tushar Gohel MD <[email redacted]> Cc: Bryan Borders <[email redacted]>, Colleen McMahon <[email redacted]>, Fergal Flanagan <[email redacted]>, Navin Kuber <[email redacted]>

Dr. Gohel –

Thank you, you are correct, we do not typically receive pre-liens unless they are provided by others.

I will certainly check the file when I am back in the office to see if we have any pre-liens as well.

[Quoted text hidden]

https://mail.google.com/mail/u/0/?ik=ae1347b038&view=pt&search=all&permthid=thread-f%3A1757728621135509263&simpl=msg-f%3A17577286211… 3/3 2/23/23, 1:09 PM Gmail - Fwd: Grease Trap - Holiday Inn

Tushar Gohel MD <[email redacted]>

Fwd: Grease Trap - Holiday Inn Navin Kuber <[email redacted]> Thu, Feb 23, 2023 at 12:07 PM To: "Dr. Tushar MD Gohel" <[email redacted]>

FYI

Sent from my T-Mobile 5G Device Get Outlook for Android

From: Terry O'Neill <[email redacted]> Sent: Tuesday, August 9, 2022 8:47:46 AM To: Dave Fix <[email redacted]> Cc: Navin Kuber <[email redacted]> Subject: RE: Grease Trap - Holiday Inn

Dave

FYI – The drawings show the grease trap line picking up two sinks and two floor sinks. That line is already installed in the slab.

Taken from Maven Engineering sheet P2.1.

Terry O'Neill, MBA

Senior Project Manager

Cell 480-522-0235

Adanac Builders Corporation

https://mail.google.com/mail/u/0/?ui=2&ik=ae1347b038&view=lg&permmsgid=msg-f:[number redacted] 1/4 2/23/23, 1:09 PM Gmail - Fwd: Grease Trap - Holiday Inn 17505 N. 79th Avenue Suite 209

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

ROC# 189034

From: Navin Kuber <[email redacted]> Sent: Monday, August 8, 2022 3:37 PM To: Dave Fix <[email redacted]>; Terry O'Neill <[email redacted]> Subject: FW: Grease Trap

See below for grease trap substitute. Need to send the specs to city. You had mentioned that Maricopa / Holbrook used under sink mount separator.

Thank you

Good buildings come from good people & all problems are solved by good design

Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted]

From: Ofria, John <[email redacted]> Sent: Friday, August 5, 2022 3:18 PM To: Navin I. Kuber <[email redacted]> Cc: Kolls, Cris <[email redacted]> Subject: Re: Grease Trap

Navin,

https://mail.google.com/mail/u/0/?ui=2&ik=ae1347b038&view=lg&permmsgid=msg-f:[number redacted] 2/4 2/23/23, 1:09 PM Gmail - Fwd: Grease Trap - Holiday Inn We do not typically recommend any product or manufacturer. My advice is to consult your mechanical Engineer for a surface mounted grease interceptor that can accommodate the needs of your installation.

Regards,

John Ofria

Regional Manager Construction Services

Americas Design & Construction

IHG®

Ravinia Drive, Suite 100, Atlanta, Georgia 30346

Mobile: 702.286.8500

From: Navin Kuber <[email redacted]> Date: Friday, August 5, 2022 at 2:42 PM To: Ofria, John <[email redacted]> Cc: 'Dave Fix' <[email redacted]> Subject: Grease Trap

John; Can you send me information for the water separator below sink that can be substituted for Grease Trap. Thank you Good buildings come from good people & all problems are solved by good design

ZjQcmQRYFpfptBannerStart

Email originated outside of IHG

ZjQcmQRYFpfptBannerEnd

https://mail.google.com/mail/u/0/?ui=2&ik=ae1347b038&view=lg&permmsgid=msg-f:[number redacted] 3/4 2/23/23, 1:09 PM Gmail - Fwd: Grease Trap - Holiday Inn

John; Can you send me information for the water separator below sink that can be substituted for Grease Trap.

Thank you

Good buildings come from good people & all problems are solved by good design

Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted]

https://mail.google.com/mail/u/0/?ui=2&ik=ae1347b038&view=lg&permmsgid=msg-f:[number redacted] 4/4 EXHIBIT G 12/20/23, 8:03 AM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

Donna Lewandowski <[email redacted]>

RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3 message

Dave Fix <[email redacted]> Tue, Dec 19, 2023 at 8:49 AM To: Donna Lewandowski <[email redacted]>

Donna,

Thank you, I appreciate that you noted that I filed yesterday. I will try to copy all of the attachments including photos onto one Word document.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

From: Donna Lewandowski <[email redacted]> Sent: Monday, December 18, 2023 1:17 PM To: Dave Fix <[email redacted]> Subject: Re: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

Mr. Fix - If you are unable to provide them in pdf form, I suggest that you print them and either drop them off at our office, or mail them to us. I have noted in the file that you filed your answer today, so no default will be issued.

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 1/5 12/20/23, 8:03 AM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3 Donna Lewandowski

Paralegal Manager, Legal Department

Arizona Registrar of Contractors

1700 W. Washington St., Suite 105

Phoenix, AZ 85007

[email redacted]

602.771.6713 (Direct Line)

602.568.4477 (Cell Phone)

www.roc.az.gov

ROC is now on social media!

Make sure to follow us on:

Fill out AZ ROC's survey to let us know how we're doing and how we can better serve you!

On Mon, Dec 18, 2023 at 1:14 PM Donna Lewandowski <[email redacted]> wrote:

Mr. Fix - Some of the attachments you provided are still emails. I tried to print them and they cut off quite a bit of information. In addition, there are quite a few attachments. Please provide everything under one pdf. If this is not provided, some of the information for your answer may not be included. You should be able to pdf the emails and then add your attachments.

Thank you,

Donna Lewandowski

Paralegal Manager, Legal Department

Arizona Registrar of Contractors

1700 W. Washington St., Suite 105

Phoenix, AZ 85007

[email redacted]

602.771.6713 (Direct Line)

602.568.4477 (Cell Phone)

www.roc.az.gov

ROC is now on social media!

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 2/5 12/20/23, 8:03 AM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

Make sure to follow us on:

Fill out AZ ROC's survey to let us know how we're doing and how we can better serve you!

On Mon, Dec 18, 2023 at 12:13 PM Dave Fix <[email redacted]> wrote:

Donna,

I have forwarded all e-mails that contained attachments rather than convert to PDF, because the conversion would not accept the attachments that were part of the e-mail.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

From: [email redacted] <[email redacted]> On Behalf Of Answers - AZROC Sent: Monday, December 18, 2023 11:24 AM To: Dave Fix <[email redacted]> Subject: Re: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

You should be able to combine everything and send it in one PDF document. That ensures that all information is received.

Thank you,

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 3/5 12/20/23, 8:03 AM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3 On Mon, Dec 18, 2023 at 11:21 AM Dave Fix <[email redacted]> wrote:

Oh boy…OK.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

From: [email redacted] <[email redacted]> On Behalf Of Answers - AZROC Sent: Monday, December 18, 2023 11:20 AM To: Dave Fix <[email redacted]> Subject: Re: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

Good morning. Please provide the individual emails as PDF attachments. When we try to print emails like you sent, information is cut off.

Thank you,

Legal Department.

On Mon, Dec 18, 2023 at 11:13 AM Dave Fix <[email redacted]> wrote:

To Whom It May Concern.

E-mail 3 of 3…

Attached above are the Written Directive, Citation and Complaint and our Response to Citation & Complaint 2023-02548. I am sending additional files under a separate e-mail as referenced within our Response in the order listed within the Response.

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 4/5 12/20/23, 8:03 AM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3

I tried sending everything in one e-mail, but there is too much information to send in one e-mail.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

Thank you.

Registrar of Contractors

Legal Department

Thank you.

Registrar of Contractors

Legal Department

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permthid=thread-f:[number redacted]&simpl=msg-f:[number redacted] 5/5 Received 12/22/2023 ROC Legal

5830 W Thunderbird Rd., Suite B8-167 Glendale, AZ 85306 AZ ROC License #’s – 189034-KB01/328481-CR37 CA ROC License # - 104654

Written Answer to Citation and Complaint Case No. 2023-02548

To Whom It May Concern;

I am writing to provide additional input regarding the above Citation and Complaint and attached Written Directive.

I have included the following attachments in the order they appear following the Complaint and this document:

• Adanac’s Response to Complaint including attachments. • Adanac’s Response to 2nd Inspection including attachments. • Photos of window flashing. • Adanac E-mail with attachments regarding Schedule of Values and Foam Roof. • Additional E-mail with attachment regarding SOV and Foam Roof. • Additional e-mail with attachments regarding SOV and Foam Roof. • Written ROC Directive. • E-mail Chain Adanac asking for additional time and inspector’s delays in responding. • E-mail chain regarding Foam Roof and delayed response from inspector. • E-mail chain regarding second inspection that Adanac was not notified of. • Letter from McDowell Hotel LLC attorney. • Letter from Adanac attorney in response. • E-mail to Bel-rea (window installer). • Automated response regarding Bel-rea e-mail no longer valid. • E-mail to Bel-rea insurance carrier with attachments. • E-mail response from Bel-rea insurance carrier. • UPDATE TO PREVIOUS RESPONSE Latest E-mail communication with Bel- Rea Insurer Received 12/22/2023 ROC Legal

The attachments above pretty much detail what has transpired regarding the above complaint, but I will try and summarize our position again.

Firstly, I want to comment regarding the delayed response from the inspector regarding our request for an extension to his 11/8 deadline issued in his Directive. I asked for additional time because the work/corrections he asked for could not be completed in the timeframe allowed. I sent an e-mail on 10/30 asking for more time. I sent a follow up e- mail on 11/10 because I had not received a response. On 11/16 the inspector e-mailed me stating he would get back to me later in the day. On 11/30 I sent an e-mail to the inspector because he had not responded or followed up. On 12/1 I received a response saying my request was denied and that the file had been forwarded to legal. The inspector states in this e-mail that he is sorry, but no extension would have been granted anyway. If that were the case, why did he state in his e-mail of 11/16 that he would review and get back to me? Why not tell me in that e-mail that there would be no extension granted? The inspector’s directive is asking for over 100 window flashings to be replaced/changed; there is no possible way that could have been completed in this timeframe.

Further, I had asked in the e-mails referenced above for the additional time so that I could file a complaint against the company that we hired to install the windows but knowing that timeframe would have exceeded the 11/8 deadline, I wanted to know that I had time to do it before I started down that road.

Since then, I have attempted to reach the company that installed the windows; see e-mail attachment to Bel-rea above along with the automated response e-mail stating that the e- mail address we have on file is no longer valid. I also opened a file/complaint with Bel- rea’s GL insurer at the time they performed the window install and am waiting for them to respond. Per our Sub-Contractor agreement with Bel-rea, they are required to indemnify us regarding workmanship issues. I have also attached the contract we have with Bel-rea.

I also submitted several e-mails starting on 9/19, the day after the second inspection, with attachments regarding the Foam Roof and the fact that it was part of the original Schedule of Values that is part of the AIA contract. I had to follow up several times to get a response from the inspector until he does respond on 10/30 that he will put my input in the file with no further explanation or response to what I had sent him.

Finally, as a background, there was an initial site inspection scheduled by the inspector on 4/12. Adanac and our attorney were present, and the Complainant no showed. We were advised that a second inspection would be scheduled, and the inspector asked for available dates. I responded to the inspector that our GM at the time would need to be at the inspection as he was for the first because he is most familiar with the project. I explained that he would be out of town and unavailable until after the month of July. After not receiving any communication for several months from the inspector regarding the re-inspection, I contacted my attorney asking if he had received notice of the second inspection and he said he had not. I followed up with an email to the Received 12/22/2023 ROC Legal

inspector when he advised me that the second inspection had already taken place on 7/26. In response I asked why we weren’t informed and why did he schedule during a time when I told him my GM would not be available. The inspector simply responded that a letter had been sent to both parties. However, my attorney did not receive the letter and Adanac did not receive the letter. Further when all communication previously about inspections was via e-mail, why suddenly change to notification by letter only? Subsequently, a third inspection was held at the site.

All the above has more to do with the lack of communication and response by the inspector throughout the process.

Regarding the two “deficiencies” included in the Written Directive, I want to comment that the documentation that I provided to the inspector and that I again have provided here, clearly shows that the owner, the owner’s agent, and the owner’s lender were all supplied with the Schedule of Values that clearly states a Class A Foam roof was included, not a TPO or membrane roof. The owner and his agent clearly reviewed the Schedule of Values to the point that they highlighted certain items that they wanted changed. They also highlighted items that they wanted to be included as ALLOWANCE items. To review the Schedule of Values to the extent that they could make these requests is not in line with their position that they were not aware of the items, including the Class A Foam roof, included in the schedule of values. I have included an e-mail that is attached, where the lender asks for changes to the schedule of values via the owner and his agent; further indicating that everyone involved was aware of what was included in the Schedule of Values. In response, we revised the Schedule of Values accordingly and attached it as an addendum to the AIA contract that the owner signed, and the lender approved. For your information, the lender was not going to finalize the loan for this project without the Schedule of Values that we attached to the AIA contract and that clearly states a Class A Foam roof is included.

Additionally, the owner and/or his representatives visited the project on a weekly basis. They were on site when the roof system was being installed, why not make mention of it then? Further, the bank inspector inspected the roof to approve payment for the roof installation. The bank inspector had all documentation regarding what was supposed to be installed, which is clearly a Class A Foam roof. If the documentation he had had listed a membrane roof, he would not have approved the installation and payment for it. The owner also had to sign off on the bank inspector’s paperwork only if he approved. The owner signed the paperwork and the bank funded for the roof that was installed because it is the roof that is included in the Schedule of Values and AIA contract.

To ask us now to replace the roof because the owner wasn’t aware of the Class A Foam roof is not correct. Received 12/22/2023 ROC Legal

Regarding the window flashing, I provided photos of window flashing to the inspector and have attached them again as part of this response. The windows are flashed, and the flashing was inspected and approved by the City and bank’s inspector. The City signed off on the inspection and the bank’s inspector approved payment for the window installation after he visually inspected the installation. The owner then had to sign off on the bank inspector’s findings, if he had any concerns about the flashing, why would he sign off? Further, the owner and/or his representatives visited the jobsite on a weekly basis throughout the construction of the project. If they had an issue with the type of flashing, why not bring it up while something could be done about it. To change the flashing at the time the windows were being installed would have been a very simple task. In fact, Adanac was terminated from this project during the stucco installation process. The owner hired another contractor to finish the project including the stucco installation. Why did the owner not stop the stucco installation and install the flashing that he now claims we should have installed? He could have and should have done so at the time he terminated us and before the stucco installation was completed. To change the flashing now requires cutting into the stucco around all the windows, exposing the building envelope and creates a very difficult task, not to mention the risk of damaging the building envelope and causing future leaks around all the windows. It simply does not make sense.

Per Charge 1 of the Citation issued by the ROC, Adanac is being charged with a violation namely A.A.C. R49-9-108(a): A contractor shall perform all work in a professional and workmanlike manner. Adanac has performed the window flashing installation in a professional and workmanlike manner. Photos have been submitted clearly showing that flashing at all the windows was installed. This same flashing was inspected by the City inspector and passed, it was inspected by the bank inspector and approved and the bank inspector’s report was reviewed and signed/approved by the building owner. Please note before the owner signed or approved any bank inspections, he required his agent, Navin Kuber inspect the property to verify the draw requests and bank inspections. Ownership was fully aware of what flashing was being installed and there is no communication from the owner during the construction process that he was concerned about or disapproved of the flashing that was being installed.

In the ROC inspector’s Written Directive, he cites Governing Rule: ARS 32- 1154(A)(2)(a) - Departure from or disregard of: (a) Plans or specifications in any material respect that is prejudicial to another without consent of the owner or the owner's duly authorized representative and without the consent of the person entitled to have the particular construction project or operation completed in accordance with such plans and specifications and code.

Prejudice is doing something that causes harm or is detrimental to another party. The window flashing installed does not cause harm to ownership, it is not detrimental in that the flashing installed achieves the same purpose as the flashing ownership has now decided they want per the plans. The purpose of window Received 12/22/2023 ROC Legal

flashing is to prevent water from entering the building around the perimeter of the window opening. That has been achieved, and again is proven in photos we have provided.

Per Charge 2 of the Citation issued by the ROC, Adanac is being charged with a violation of A.R.S 32-1154(A)(22). This statute speaks to a contractor not taking a corrective action without valid justification within a certain period of time after receiving a written directive from the ROC. I submit that the arguments above are valid justification. The Class A Foam roof was known by all parties, lender, owner, owner’s agent to be the roofing system that was included in the Schedule of Values included as an addendum to the AIA contract between the owner and Adanac. Adanac should not be required to replace the roof system they contracted for with a roof system that was not contracted for.

The window flashing installed by Adanac is per industry standard and was approved by the City, lender, owner’s agent and owner. The bank draw process requires that all the above be met prior to funding. The window flashing was included in the draw process and funded, therefore it had to have been approved by the owner and lender.

Charge 2 also speaks to a timeframe or time permitted for the “corrective work” to be completed. Per the Directive issued on October 20th, 2023… You must notify the Registrar’s assigned Investigator of your compliance with this Directive prior to 5:00 p.m. on November 8th, 2023. The inspector’s timeframe is not realistic, there is no way that replacement of a 15,000 sf foam roof and 100+ window flashings can be completed within the timeframe (barely three weeks) he allotted within his directive. The inspector’s later statement that the process only needed to be started, does not appear anywhere in his Written Directive, and neither was it communicated in the e-mails between the inspector and Adanac during the 6 weeks Adanac was trying to get clarification from the inspector. While I did not and could not reasonably be expected to inform the inspector of our compliance, I did reach out to him several times asking for clarification and additional time. On October 16th, the inspector responded to my previous e-mails…Sorry I'm just getting back to you now. I've read your email requesting more time on the Written Directive. Let me get back to you hopefully later today. On 11/30, I reached out to the inspector again via e-mail asking for a response and finally on 12/1 the inspector replied… I did receive your email concerning the filing of a complaint against your subcontractor in relation to the missing flashing. However, this complaint still needs to move forward. Further, it is the responsibility of a general contractor to manage their subcontractor(s) and to oversee the completion of the project. I have heard from the Complainant who has informed me that he has received no communication from you and no work has been done to comply with the Written Directive which expired on November 8th, 2023. Therefore, I have referred this complaint to our legal department. Why was Received 12/22/2023 ROC Legal

this not communicated when I first reached out to the inspector on 10/26 or responded to in my other e-mails of 10/30, 11/10, 11/16 or 11/30?

In a 12/1 e-mail, the inspector added…I am sorry for not getting back to you earlier. It was an oversight on my part. However, no extension would have been granted at that time. Even though on 10/16 he states that he will hopefully get back to me later that day regarding my inquiry about additional time or an extension.

Additionally, if the flashing is to be replaced, we will need to contact the window installer and notify their insurance carrier to indemnify us, which is contractual per our sub-contract agreement with the sub-contractor. This process will take several months and there is NO WAY it could have been completed by 11/8 less than a month after the Written Directive was issued. As stated earlier in this response, we have reached out to the window installer and their insurance carrier.

Finally, I have attached a letter from the owner’s attorney along with my attorney’s response. This project is headed towards litigation. We were wrongfully terminated from the project as payment from the owner was withheld from us for several months up to that point. The letter from the owner’s attorney states that they also have no intention of paying us over $600,000.00 in retention that was earned up until the time we were wrongfully terminated. I am asking that the ROC allow this to be settled in court. Any findings that the ROC agrees to hold Adanac accountable for will negatively impact the litigation process for Adanac. It is my belief that the owner’s intention in filing the ROC complaint is for that very reason, to taint the litigation process.

For the above reasons and as I have maintained throughout, I am asking that the ROC dismiss this complaint.

Respectfully submitted,

David Fix/Adanac Builders Corporation Received 12/22/2023 ROC Legal

Attachment 1

Response to Complaint including e-mails to Todd Anderson Email to Todd Anderson

Todd,

I have reviewed the attachments and have edited my response.

Kevin Dandridge representing Adanac and our Attorney Douglas Dieker will be present at the site inspection tomorrow.

Thank You,

David Fix

17505 N. 79th Avenue

Suites 209/210 Received 12/22/2023 ROC Legal

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Dave Fix Sent: Tuesday, March 14, 2023 9:17 AM To: Todd Anderson <[email redacted]> Subject: FW: HIE ROC Response

Todd,

Attached above is my response to the complaint filed by McDowell Hotel I LLC; Complaint Intake 2023-02548.

Please review and let me know if you need anything else from me.

The response is the last attachment and all other attachments are supporting documents to the response.

FYI, I did not receive any attachments under Exhibit A.

Thank You,

David Fix Received 12/22/2023 ROC Legal

17505 N. 79th Avenue

Suites 209/210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543 Received 12/22/2023 ROC Legal

Adanac Response to Complaint

17505 N 79th Avenue, Suite 209/210, Glendale, AZ 85308 Ofc:623.266.2761/Fax:623.328.5186 AZ ROC License #’s - 189034-KB01/328481-CR37 CA ROC License # - 104654

ROC Complaint Response

3/12/2023; Revised 4/11/2023

Re: Complaint 2023-02548

Mr. Anderson,

Following is my response to the Complaint referenced above filed by McDowell Hotel I LLC:

Adanac failed to pay its subcontractors and suppliers causing 9 Mechanics liens to be recorded on the Project.

All liens are the result of non-payment by McDowell Hotel I LLC for work completed by Adanac Builders Corporation: Received 12/22/2023 ROC Legal

1) Draw #18 (attached) submitted by Adanac Builders for payment on 9/14/22 in the amount of $337,911.00 for work completed up to 7/31/2022 was never paid and is still owed to Adanac by McDowell Hotel I LLC. 2) Final payment pay application (attached) dated 12/30/2022 for work completed up to the date of termination of the contract 10/15/2022 in the amount of $593,407.11 was never paid and is still owed to Adanac by McDowell Hotel I LLC. 3) Retention earned and withheld for work completed up to 10/15/2022 in the amount of $711,044.74 was never paid and is still owed to Adanac by McDowell Hotel I LLC. 4) Additionally, McDowell Hotel I LLC improperly withheld retention on several line items listed in the Schedule of Values (attached) including, General Requirements in the amount of $17,510.00, Profit in the amount of $30,316.74, Overhead in the amount of $5,666.90, and Tax in the amount of $40,944.33. Per the project contract (attached), Section 5.1.7.1.1, retention was not to be withheld on these items listed in the Schedule of Values as they were earned. 5) Adanac Builders filed a Mechanic’s lien (attached) in the amount of $1,640,904.95 against the Holiday Inn Express & Suites 1750 N. 95th Lane Phoenix, Maricopa County, AZ 85037; owned by McDowell Hotel I LLC 6803 E. Main Street, Suite 1116 Scottsdale, AZ 85251. The lien was initially filed on 11/08/2022 and amended on 1/15/2023.

Adanac engaged in repeated fraudulent acts by repeatedly misrepresenting that it paid its subcontractors & suppliers.

All funds received by Adanac from McDowell Hotel I LLC were in turn used to pay subcontractors & suppliers for work completed on the project:

1) Final payment pay application (attached) dated 12/30/2022 for work completed up to the date of termination of the contract 10/15/2022, Line 6 states that Adanac has been paid $6,260,186.46. Of that amount, $157,600.00 for General Requirements, $74,900.19 for Profit, and $9,331.01 for Overhead is earned by Adanac, leaving a balance of $6,018,355.26 paid to Adanac to disburse back into the project, including funds owed to subcontractors & vendors. 2) Current job costs paid by Adanac for the project total $6,121,350.15. 3) Not only have all funds received been paid back into the project, Adanac has been underpaid, in addition to the amounts stated above, $102,994.86 for funds paid into the project and that are owed by McDowell Hotel I LLC to Adanac but never paid and still owed to Adanac by McDowell Hotel I LLC. Received 12/22/2023 ROC Legal

The plans called for the installation of a grease interceptor. And although Adanac purchased a grease interceptor for the Project, installed cleanout pipes indicating the interceptor had been installed & ostensibly billed for installation of grease interceptor.

1) Adanac Builders through our attorney Doug Dieker, previously responded to the grease trap allegation (e-mail attached). On February 22/2023 Mr. Dieker sent an e-mail to McDowell Hotel I LLC via their attorney, the response included a copy of the e-mail referenced in paragraph 5 below, where Navin Kuber, owner’s Project Manager, requests an alternative to the grease interceptor. To date McDowell Hotel I LLC has not responded to Mr. Dieker. 2) Adanac does not deny that the plans called for the installation of a grease interceptor, or that it installed clean out pipes for the same. 3) Adanac did not install the grease interceptor, nor did it bill for the grease interceptor. The grease interceptor is included in the attached Schedule of Values under the category Mechanical & Plumbing, see line item# 1502 for the amount of $538,000.00. Per Draw #18 and Final payment pay applications, Adanac has been paid $440,232.23 (less $44,023.22 retention) towards the plumbing line item, leaving $97,767.68 plus earned retention left to bill against it. Adanac was terminated from the project on 10/15/2022 and was not allowed to finish the plumbing installation, including the grease interceptor. 4) Adanac has to date incurred costs for plumbing materials and labor in the amount of $680,423.55 and as indicated above, received payment towards plumbing work in the amount of $440,232.23 (less $44,023.22 retention). The allegation that Adanac received funds for plumbing work we did not perform is categorically false. Adanac is in arrears more than $280,000.00 for plumbing work completed on the project vs plumbing work for which Adanac has received funds. 5) Adanac did not purchase the grease interceptor from Hajoca as alleged by MCDowell Hotel I LLC, neither was it delivered to the site and then removed by Adanac later. In an e-mail dated 8/05/2022 (attached) from McDowell Hotel I LLC’s Project Manager, Navin Kuber asked John Ofria from IHG, for information on a water separator (grease interceptor) that mounts under the sink and above the concrete slab, that could be substituted for the grease interceptor that the plans call for. Mr. Ofria responded that they do not typically recommend a specific product or manufacturer and suggested that Mr. Navin consult with the Mechanical Engineer for the project. Instead of consulting with the Mechanical Engineer, Mr. Kuber on 8/9/2022 asked Adanac for information on a substitute we had used previously on other projects. On the same day Adanac responded that we would look into it. While researching the product and availability, on 10/15/2022, Adanac was terminated from the project. At no time prior, was Adanac asked to forgo researching the Received 12/22/2023 ROC Legal

availability of a substitute or directed to install the grease interceptor as indicated in the plans. 6) McDowell Hotel I LLC’s contention that the presence of clean out pipes for the interceptor somehow indicates that the grease interceptor is also installed is false. The waste line pipes and clean outs for the future grease interceptor were installed at the same time the under slab plumbing was installed a year or more prior. Adanac had every intention of installing the interceptor until we were directed by Mr. Kuber to research options.

Adanac fraudulently represented that plumbing materials it was using were from its own supply…

1) Adanac represented in 3 of 18 draws that it supplied materials from its own supply. In each of these 3 instances Adanac delivered materials stored at other locations to the site; these materials included water supply and waste piping, gas line piping as well as other miscellaneous plumbing materials. The balance of materials were purchased through vendors/suppliers. In these instances, Adanac did not represent that the materials were from stock but requested payment as a percentage complete of the plumbing line item in the attached Schedule of Values. Adanac paid vendors proportionately per what was submitted for in draws and received as payment. Additionally, per Item 4 above, Adanac is in project vs plumbing work for which Adanac has received funds.

Adanac knowingly installed a foam roof that was substantially lower quality than what was called for by the plans.

1) Adanac installed the roof it was contracted to install. Per Item 721 of the attached Schedule of Values, which is an addendum to the AIA contract between ownership and Adanac, found in Article 9.1.4; also attached, Adanac contracted to install a Class A Foam Roof. 2) The attached Schedule of values is the 5th iteration of the document. Each preceding version included the same roof system under Item 721. Each version was reviewed by ownership and its representatives. Each new revision was requested by ownership in an effort to lower the costs of the project. At no time did ownership request Adanac to change the type of roof system from a Class A Foam Roof, knowing that doing so would increase the cost of the project. 3) McDowell Hotel I LLC, signed and approved the AIA contract which included a Class A Foam Roof per the Schedule of Values addendum.

Adanac appears to have knowingly contracted beyond the scope of its license in connection with the defective installation of a fire hydrant. Received 12/22/2023 ROC Legal

1) Adanac Builders is licensed to contract any work to be completed within the boundaries of the aforementioned project, therefore Adanac did not contract outside the scope of its license. 2) Adanac hired a licensed C-16 fire suppression system contractor to perform the installation of the building fire suppression system. During the course of the project, Adanac hired the same C-16 contractor, Fireshield Inc., to purchase the proper permit from the City of Phoenix to install the fire hydrant. Fireshield, purchased the permit and supervised the installation of the hydrant. Fireshield signed an agreement stating their willingness to do so and was also compensated for the additional work, over and above the fire suppression work they were initially hired to perform. 3) The claim that the installation of the hydrant was defective is misleading at best. The hydrant required a simple elevation adjustment. Adanac offered to make the adjustment, but ownership decided to have someone else do so.

Thank you for the opportunity to respond to the complaint filed by McDowell Hotel I, LLC.

If you require additional information, please let me know.

Sincerely,

David Fix/CEO Adanac Builders Corporation Received 12/22/2023 ROC Legal

Unpaid Pay Apps Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

Schedule of Values Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

\ Received 12/22/2023 ROC Legal

\ Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

AIA Contract Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

HIE Lien Filed by Adanac Builders

Recorded on 11/15/2022 Instrument No. [number redacted] Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

E-Mail to Navin Kuber/Owner Regarding Grease Interceptor

See below for grease trap substitute. Need to send the specs to city. You had mentioned that Maricopa / Holbrook used under sink mount separator.

Thank you

Good buildings come from good people & all problems are solved by good design Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted]

From: Ofria, John <[email redacted]> Sent: Friday, August 5, 2022 3:18 PM To: Navin I. Kuber <[email redacted]> Cc: Kolls, Cris <[email redacted]> Subject: Re: Grease Trap

Navin,

Regards,

John Ofria Regional Manager Construction Services Americas Design & Construction

IHG® Ravinia Drive, Suite 100, Atlanta, Georgia 30346 Mobile: 702.286.8500

From: Navin Kuber <[email redacted]> Date: Friday, August 5, 2022 at 2:42 PM To: Ofria, John <[email redacted]> Cc: 'Dave Fix' <[email redacted]> Subject: Grease Trap John; Can y ou send me information for the water separator below sin k that can be substituted for Grease Trap. Than k y ou Good bu ildin gs come from good people & all problems are solved by good desig n ZjQcmQRYFpfptBannerStart

Email originated outside of IHG USE CAUTION: This email came from a sender outside of IHG. Use caution before clicking links, opening attachments or responding. If you are not sure about the legitimacy of this message, please report it using the Report Phish button.

John; ZjQcmQRYFpfptBannerEnd

Can you send me information for the water separator below sink that can be substituted for Grease Trap.

Thank you

Good buildings come from good people & all problems are solved by good design Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 I E: [email redacted]

E-mail from Adanac Attorney to McDowell Hotel LLC Attorney RE: Fireline Here is my notification to HIE's attorney regarding fire line and grease interceptor.

Douglas F. Dieker

DIEKER COPPLE, PLLC

14256 N. Northsight Blvd.

Suite 110

Scottsdale, AZ 85260

Phone -- (602) 528-4700

Fax -- (602) 528-4701

Kevin,

The fire line was installed under the supervision and licensing of Fire Shield. See attached letter and CO.

Adanac was asked by Navin Kuber not to install the grease interceptor as he wanted to purchase above-slab interceptors instead. See attached email.

Terry O'Neil is well aware of both of these facts. Please note he created the attached CO.

Douglas F. Dieker

DIEKER COPPLE, PLLC

14256 N. Northsight Blvd.

Suite 110

Scottsdale, AZ 85260

Phone -- (602) 528-4700

Fax -- (602) 528-4701

Good evening,

Please find attached Mr. Estevez’s letter in the above referenced matter. The originals will follow by certified mail.

Thank you.

Valerie Corral, Legal Assistant Holden Willits PLC North Central Avenue, Suite 2000 Phoenix, Arizona 85004 602.508.6210 [email redacted] www.holdenwillits.com

**Please note we’ve moved! Same building address, but different suite. Received 12/22/2023 ROC Legal

Attachment 2

Adanac’s Response to 2nd Inspection

E-mail to Todd Anderson

Todd,

Attached is a photo of the flashing that was installed on all window openings. I would also like to add that we were terminated from the project on October 14th 2022, (see attached) long before the stucco work was completed and flashing covered over.

Further, hotel ownership was visiting the property regularly, a minimum of once a week throughout the project build. Certainly had the flashings supposedly not been installed, they would have noticed and informed us prior to now.

Regarding the spray foam roof, I have attached a copy of the AIA contract Adanac has with ownership which clearly states the amount of the contract on page 3, Article 4.1 in the amount of $8,593,347.00. On page 7, Article 9.4, the HIE Phoenix Costs Worksheet is listed as an addendum and basis for the contract amount.

I have attached a copy of the HIE Phoenix Costs Worksheet that lists Class A Foam roof as the roofing system included, Line item 721. Line item 2050 of the Worksheet shows the same value as the contract.

Clearly, the Costs Worksheet and Contract included a Class A Foam roof system. Again, ownership visited the property regularly throughout the build, and had there been a concern with the Class A Foam Roof, they would have brought it to our attention immediately at the time the roof system was being applied.

I have also attached an e-mail dated 9/2/2020 that includes the same Costs Worksheet with the same Class A Foam Roof itemization that was sent to Navin Kuber and Dr. Gohel, both representatives of ownership.

Regarding the last item in the revised Complaint, the electrical conduit being referenced was for an interior mounted SES. Ownership, under the direction of Navin Kuber, directed Adanac and SRP to install the SES on the exterior of the building, therefore requiring a different conduit and routing path. This change at ownership’s request caused multiple delays and additional costs to Adanac. Received 12/22/2023 ROC Legal

I have attached an e-mail from Navin Kuber dated 3/30/2022 that included the SRP contract and related documents ownership signed with SRP on 4/19/2021. I have attached the signed contract as well as the blueprints showing the location of the exterior mounted SES. Ownership requested and made the change to an exterior mounted SES and required conduit re-route, not Adanac.

Please let me know if you require anything further.

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Thursday, August 31, 2023 1:21 PM Received 12/22/2023 ROC Legal

To: Dave Fix <[email redacted]> Subject: Re: ROC Addendum Inspection #2023-02548

Yes. Send that to me.

On Wed, Aug 23, 2023 at 7:51 AM Dave Fix <[email redacted]> wrote:

Todd,

FYI, we have photos that show flashing installed as well as a contract that shows SPF roofing. Do you want to see any of that in advance?

Further, we were removed from the project in early October of 2022. A/C units were installed after we were terminated. I can send a copy of the letter of termination?

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308

Office: 623.266.2761 Received 12/22/2023 ROC Legal

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Monday, August 21, 2023 5:16 PM To: Kevin Estevez <[email redacted]>; Dave Fix <[email redacted]>; Douglas Dieker <[email redacted]> Subject: ROC Addendum Inspection #2023-02548

Let me know if either party cannot attend this inspection.

Thanks,

Todd Anderson Received 12/22/2023 ROC Legal

Photos of Window Flashing Being Installed Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

Notice of Termination Letter from McDowell Hotel LLC

Date of Termination 10/14/2022 Received 12/22/2023 ROC Legal

AIA Contract With McDowell Hotel LLC

See copy of AIA contract previously attached.

HIE Phoenix Costs Worksheet

See copy of Phoenix Costs Worksheet (Schedule of Values) previously attached. Received 12/22/2023 ROC Legal

E-Mail from Ownership Requesting Costs Worksheet

E-mail From Navin Kuber/Ownership Re: SRP and Electrical Received 12/22/2023 ROC Legal

Attachments to Previous E-mail

SRP Contract with Ownership

Terms and Conditions 1. The existing applicable SRP Rules and Regulations, as they may be amended or revised from time to time by SRP, and all terms and conditions thereof, are adopted and incorporated herein by reference as part of this Contract. The Rules and Regulations can be found at www.srpnet.com and are on file at the principal offices of SRP. 2. SRP shall construct all electric facilities up to the point(s) of delivery, including any connections to electric, in accordance with the SRP Rules and Regulations and SRP construction specifications and practices. 3. Customer shall timely provide SRP all drawings and data requested by SRP that are pertinent to the design of the Customer Project. SRP shall review such drawings and data for compatibility with SRP facilities and shall have sole discretion in determining whether the Customer facilities may be used with SRP's facilities. 4. Before SRP begins construction, Customer shall provide SRP all requested easements, including any easements required from third parties, for SRP to access and maintain the electric facilities installed under this Contract, using SRP’s standard form(s) of easement. Customer understands and agrees that SRP shall have no obligation to provide electric service to the Project unless and until Customer has provided all such easements. Customer, at all times, shall permit SRP to access and maintain any SRP electric facility on Customer property. Received 12/22/2023 ROC Legal

5. Customer shall require that any construction work performed by Customer or its contractor or subcontractor shall be in accordance with national and local building and safety codes, the SRP Electric Service Specifications and construction drawings, and the Electric Utility Service Entrance Requirements Committee. 6. Customer shall secure all required State, County, and local permits and approvals. 7. Unless otherwise agreed in writing by SRP, Customer shall perform, at Customer’s sole expense, all trenching, provision and installation of conduit, backfilling and surveying with property pins, and grade stakes (Customer Work). All Customer Work shall conform to SRP’s standards. Customer shall forward all results of survey to SRP for review and approval. Upon Customer’s request, SRP may provide survey services for the Project under a separate written agreement. 8. SRP shall not be responsible for, and Customer shall indemnify, defend, and hold harmless SRP and members of its governing bodies, its officers, agents, and employees, for, from, and against any and all claims, demands, suits, costs of defense, attorneys’ fees, witness fees of any type, losses, damages, injuries, expenses, and liabilities (Claims) arising out of or relating to (a) Customer’s performance of the Customer Work, including without limitation Claims arising out of the performance of Customer Work on property not owned by Customer, and (b) damage to SRP facilities caused by Customer or its contractors. Customer’s obligation under this Section shall extend to defend and indemnify SRP when SRP, members of its governing bodies, its officers, agents, and/or employees are allegedly concurrently negligent with Customer, its employees, and/or agents, but shall not extend to any liability caused by the sole negligence of SRP. 9. Prior to SRP’s installing any electric facility, the Customer shall install all water and sewer facilities and backfill. Customer shall not install any curb, sidewalk, paving, or any conflicting foundation within the development boundaries until SRP completes the installation of the electric facilities. Customer shall and hereby does release SRP from any loss, damage, liability, cost, or expense incurred by Customer arising out of (i) any delay by SRP in performing or completing its work or inspecting any Customer Work or (ii) any loss or damage to any installation prohibited by this Section 9, even if such damage was caused by the negligent or intentional act or omission of SRP. 10. Customer shall permit SRP to inspect, at any time, any Customer provided facility. Any inspection by SRP shall not be deemed an approval of any Customer provided facility or a waiver by SRP of any right to enforce strict compliance with the terms and conditions of this Contract. 11. Customer, upon demand, shall reimburse SRP for the costs of relocation of facilities found to be installed at the wrong location or grade due to Customer requested changes in property lines, easement grade, and/or errors in staking, trenching, or survey. 12. If Customer’s load grows to a total coincident demand of 6,740 kVA or greater, but less than 11,800 kVA, the load will be served from at least one dedicated SRP feeder circuit or a substation dedicated to serve only Customer. Any dedicated feeder circuit(s) or substations shall be provided by SRP at the sole expense of Customer. 13. This Contract shall be interpreted, governed by and construed in accordance with the substantive and procedural laws of the State of Arizona, without regard to conflicts of law principles. SRP and Customer agree that any action, suit, or proceeding arising out of or relating to this Contract shall be initiated and prosecuted in a state or federal court of competent jurisdiction located in Maricopa Received 12/22/2023 ROC Legal

County, Arizona, and the parties irrevocably submit to the jurisdiction and venue of such court. To the fullest extent permitted by law, SRP and Customer hereby irrevocably waive any and all rights to a trial by jury and covenant and agree that neither will request a trial by jury, with respect to any legal proceeding arising out of or relating to this Contract. 14. The title to all work performed by SRP, or performed by Customer at SRP’s request and accepted by SRP, shall remain with SRP at all times. 15. Customer shall meet with an SRP inspector before construction begins. The meeting may be scheduled by calling (602) 236-0676 West Valley, (602) 236-6300 East Valley, (602) 236-0808 Homebuilder Management Center, or the SRP Distribution Design Consultant. 16. Security deposits for electrical service may be required. Please call (602) 236-8833 at least thirty (30) days prior to the meter-set need date. Contract #: 4211525 Page: 2 of 2 Issue Date: 04/19/2021 Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

SRP Location Diagram Received 12/22/2023 ROC Legal

Attachment 3

Adanac Response to Third Inspection

Email to Todd Anderson

Todd,

I did not receive an answer to the e-mail below, but I wanted to send the project draw paperwork showing a Class A Foam roof from the inception of the project.

I have attached a copy of the first draw dated 10/20/20, which shows on page 3 of the attachment, line item 721 a Class A Foam Roof. This document is reviewed and signed by the owner each time a draw is requested and approved.

I have also attached a copy of Draw #16 which shows the same Class A Foam roof. Dr. Gohel, the owner of the company signed this same paperwork 16 times, including draws that requested funds against Line item 721. To claim that he was not aware that there was a foam roof being installed is ludicrous. The original Schedule of Values that was attached to the AIA contract included the same information regarding the foam roof as all draw applications.

I have also attached the Funds Control Agreement with Tetra-Tech, the company that monitors the pay application process and whose name is attached to all 16 draw applications. Dr. Gohel also signed this agreement.

Please let me know if you require anything else from us.

Thank You,

David Fix/CEO Received 12/22/2023 ROC Legal

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Dave Fix Sent: Tuesday, September 19, 2023 9:29 AM To: Kevin Dandridge <[email redacted]> Cc: Todd Anderson <[email redacted]> Subject: RE: ROC Information Needed

Todd,

See my highlighted responses below, let me know if we are on the same page?

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210 Received 12/22/2023 ROC Legal

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Kevin Dandridge <[email redacted]> Sent: Tuesday, September 19, 2023 9:08 AM To: Dave Fix <[email redacted]> Cc: Todd Anderson <[email redacted]> Subject: ROC Information Needed

Good Morning Dave

Please gather the following information need and forward to the ROC inspector as well as the opposing attorney. 1. Need signed copy of SOV emails, or texts in agreement to the Foam roofing being installed in lieu of the roof set on the plans. It was explained that the client wanted a cheaper option and the foam was cheaper at the time. We need a agreement or signature to show they agreed. They are stating they didn’t know Adanac were installing the foam roof. I have signed pay apps that include the owner’s signature every time we requested funds from the bank during the build process. Each pay app includes a copy of the schedule of values that clearly lists the Class A Foam roof. The owner’s claim that they did not know is baseless, they were notified in the original e-mail and schedule of values that they sent to the bank to finalize the contract, which the bank then referenced each time we received a draw. 2. You need to get with Pella windows on the installation process for the windows. The optional drip end was not installed with the stucco finish. There is an option drip edge that in not installed in Arizona and on the Pella website there is a video for installation of commercial windows and it does not show the drip edge being installed. Need a letter from the rep. to support. I will reach out to the rep., but ownership hasn’t paid them since we were removed from the project, and I am not sure how responsive they will be. 3. The power issue is I believe solved since the SES was ordered for exterior instead of interior that was on the plan by Navin the owners rep. The underground was done by others after Adanac was removed from site. Received 12/22/2023 ROC Legal

4. The AC unit issue I believe is solved since Adanac was not on site for the installation and the power was run for the correct AC units that were required per plan. I have CC,d Todd Anderson from the ROC to make sure what was requested is correct to give him a chance to correct me if I misquoted.

Thank you

Kevin Dandridge | Owner

Life safety | Because you only get 1 life. [email redacted]

www.1lifesafety.com

C: (602) 799-4800

4611 E Chandler Blvd Suite112-163 Phoenix Az, 85048 Received 12/22/2023 ROC Legal

Attachments to Above E-mail Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

Attachment 4

Adanac Response to Written Directive

E-Mail to Todd Anderson showing E-mail chain with ownership and lender regarding Builder Package that includes Costs Worksheet

Todd,

Regarding your written directive this e-mail chain and attachments above make it very clear that the Class A Foam Roof was part of the original contract and therefore no need for a CO was required? This was sent to the lender and owner at the outset of the project and was required by the lender to approve the project. Owner’s representative Navin Kuber initiated the e-mail chain and I responded with the document that clearly states a Class A Foam Roof. ALL PARTIES involved in making the decision to proceed with the project are included in the e-mail chain.

I would ask that you please review and reconsider your Directive.

Thank You, Received 12/22/2023 ROC Legal

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Dave Fix Sent: Friday, June 12, 2020 11:07 AM To: Navin Kuber <[email redacted]> Cc: Dr. Tushar MD Gohel <[email redacted]>; Paul [Pravin] Patel <[email redacted]>; Patrick Hatten <[email redacted]> Subject: RE: Summit Bank

Gentlemen,

Attached is our contract and all addendums cited within.

The link for the Holiday Inn Express & Suites 3rd Submittal Drawings referenced is below: https://www.dropbox.com/s/jmao99fcfgqaqum/001%203rd%20Submittal%20Drawings% 203.26.20.pdf?dl=0

I will send the Builder’s Package under a separate e-mail.

Dr. Tushar, I have endorsed the contract (first attachment) and there is a space for you to sign as well. Please return an endorsed copy to me.

Thank You, Received 12/22/2023 ROC Legal

David Fix

17505 N. 79th Avenue

Suite 401

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 – KB01

CA ROC# 1046543

From: Dave Fix Sent: Friday, June 12, 2020 9:45 AM To: Navin Kuber <[email redacted]> Cc: Dr. Tushar MD Gohel <[email redacted]>; Paul [Pravin] Patel <[email redacted]>; Patrick Hatten <[email redacted]> Subject: RE: Summit Bank

Working on it today.

Our CPA is out of town until next week, so we may not have that part of the package until then.

Thank You, Received 12/22/2023 ROC Legal

David Fix

17505 N. 79th Avenue

Suite 401

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 – KB01

CA ROC# 1046543

From: Navin Kuber <[email redacted]> Sent: Friday, June 12, 2020 9:26 AM To: Dave Fix <[email redacted]> Cc: Dr. Tushar MD Gohel <[email redacted]>; Paul [Pravin] Patel <[email redacted]>; Patrick Hatten <[email redacted]> Subject: Summit Bank

Got call from Summit Bank following up on Builder Package and AIA contract.

Thanks.

Sent from my Sprint Samsung Galaxy Note10. Get Outlook for Android Received 12/22/2023 ROC Legal

E-mail Chain Regarding Ownership’s Involvement with Development of Schedule of Values/Costs Worksheet

From: Navin Kuber <[email redacted]> Sent: Tuesday, September 1, 2020 10:25 AM To: Dave Fix <[email redacted]> Subject: RE: SOV revised

Dave; See revised in green just 3 lines, I was following instructions from client, and yes per Dirt Worx. Thank you.

Good buildings come from good people & all problems are solved by good design Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 | F: 480.830.7534 I E: [email redacted]

From: Dave Fix <[email redacted]> Sent: Tuesday, September 1, 2020 10:18 AM To: Navin Kuber <[email redacted]> Subject: RE: SOV revised

Navin,

I am not sure why you want to change all of those to allowances? For Dirt Worx? Please clarify, because those items add up to quite a chunk of money??

Thank You,

David Fix Received 12/22/2023 ROC Legal

17505 N. 79th Avenue

Suite 401

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 – KB01

CA ROC# 1046543

From: Navin Kuber <[email redacted]> Sent: Monday, August 31, 2020 5:56 PM To: Dave Fix <[email redacted]> Cc: [email redacted]; [email redacted] Subject: SOV revised

Dave; Revised SOV line item allowances in Green cells and one with yellow cells we already have agreed to that, please get this updated send it back to me ASAP for client signature we are recording the loan document tomorrow, contract amount has not changed.

FYI; We need to work on 91st avenue, seller has agreed to price. We got 30 days to finalize the SOV for 94 rooms. Since you already have LQ under your development it should help with cost.

Thank you as always.

Good buildings come from good people & all problems are solved by good design Received 12/22/2023 ROC Legal

Hotel Devco, LLC | Navin I. Kuber | W: 480.343.5030 | F: 480.830.7534 I E: [email redacted]

Email to Todd Anderson RE: Above Email Chain

Todd,

As a follow up to my e-mail last week, please see the attached e-mail chain. In it, Navin Kuber, owner’s agent, and owner CC’d, asks for changes/edits to the SOV to be included as part of the contract. He clearly reviewed the SOV to the extent that he found items he wanted to have changed. To say that they were not aware of the Class A foam roof is not genuine, and in my opinion even possible. How can the owner and bank request and review a document where they have asked for changes and at the same time say they were not aware?

Thank You,

David Fix/CEO Received 12/22/2023 ROC Legal

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

Attachment 5

Communications with Todd Anderson RE: Corrective Work

Email Chain with Todd Anderson RE; Additional Time for Corrective Work

Dave,

Thank you for your response. As for the allotted time,we start off with 15 days and extend when there appears to have been a good faith effort on the part of the Respondent to either complete the corrective work or to come to some sort of resolution with the Complainant..As stated in the email sent earlier, neither of those two occurred. Additionally, the extension request came in 10-days after the written directive was sent with no attempts to either contact the Complainant or present evidence of doing corrective work (work orders / material invoices). I am sorry for not getting back to you earlier. It was an oversight on my part. However, no extension would have been granted at that time. Furthermore, your license information does not indicate that a complaint was ever filed against your sub contractor. At this point, any further communications should be directed to our legal department. Received 12/22/2023 ROC Legal

Sincerely,

Todd Anderson

On Fri, Dec 1, 2023 at 10:28 AM Dave Fix <[email redacted]> wrote:

Todd,

With all due respect, I asked you about a time extension over 4 weeks ago so that I could do exactly that, try and get the sub to cooperate. Your original deadline was not realistic, so before I started anything, including communicate with the owner or sub, I wanted to make sure that I had adequate time to do so. My communication to you on October 30 is very clear.

You first responded to my question/request over two weeks after I sent it and at the time told me you would get back to me. I sent two follow up e-mails asking for a response, and you are just now responding when on Nov. 16th you said you would get back to me that day?

How is this at all fair or equitable?

Thank You,

David Fix/CEO

5830 W Thunderbird Rd., Received 12/22/2023 ROC Legal

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Friday, December 1, 2023 10:20 AM To: Dave Fix <[email redacted]> Subject: Re: ROC Written Directive #2023-02548

Dave,

I did receive your email concerning the filing of a complaint against your subcontractor in relation to the missing flashing. However, this complaint still needs to move forward. Further, it is the responsibility of a general contractor to manage their subcontractor(s) and to oversee the completion of the project. I have heard from the Complainant who has informed me that he has received no communication from you and no work has been done to comply with the Written Directive which expired on November 8th, 2023.. Therefore, I have referred this complaint to our legal department.

Todd Anderson

On Thu, Nov 30, 2023 at 3:51 PM Dave Fix <[email redacted]> wrote:

Todd,

I am following up for an update on the request below. We are looking for more time to be able to resolve the window flashing issue. Received 12/22/2023 ROC Legal

Also, I had e-mailed you additional information regarding the owner and his representative being involved with the development of the Schedule of Values throughout the process, they gave input, the bank gave input (I sent you a copy of e-mails) and the owner asked for changes on many items, so to say they didn’t understand what was in the SOV regarding the roofing system just isn’t plausible.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Thursday, November 16, 2023 9:37 AM To: Dave Fix <[email redacted]> Subject: Re: ROC Written Directive #2023-02548

Dave, Received 12/22/2023 ROC Legal

Sorry I'm just getting back to you now. I've read your email requesting more time on the Written Directive. Let me get back to you hopefully later today.

Todd Anderson

On Mon, Oct 30, 2023 at 6:26 AM Dave Fix <[email redacted]> wrote:

Todd,

Regarding your directive for the window flashing, we hired a sub contractor to install the windows and will be holding them accountable per our sub-contract with them. Further, per our sub contract, they are to indemnify us against litigation and we will also be notifying that they need to do so.

Your deadline of Nov. 8 for this work to be completed is not realistic in that it will take longer just to get a response from the sub-contractor and possibly their attorney. If they do not respond, we will be filing our own ROC complaint against them and that will also take time to schedule.

With all of this in mind, I am asking for an extension to the Nov. 8 deadline.

Thank You,

David Fix/CEO Received 12/22/2023 ROC Legal

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Friday, October 20, 2023 4:00 PM To: Kevin Estevez <[email redacted]>; [email redacted]; Dave Fix <[email redacted]>; Douglas Dieker <[email redacted]>; Kevin Dandridge <[email redacted]> Subject: ROC Written Directive #2023-02548

Email Chain with Todd Anderson Re: Foam Roof

Dave,

I am out of town until next Tuesday the 10th. Sorry I didn't get back to you earlier. I was able to locate your response before I left yesterday and will fwd it to Complainant's team. Talk to you soon.

Todd Anderson

On Thu, Oct 5, 2023, 11:09 AM Dave Fix <[email redacted]> wrote:

Todd,

I did not receive an answer to the e-mail below, but I wanted to send the project draw paperwork showing a Class A Foam roof from the inception of the project. Received 12/22/2023 ROC Legal

Please let me know if you require anything else from us.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167 Received 12/22/2023 ROC Legal

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Dave Fix Sent: Tuesday, September 19, 2023 9:29 AM To: Kevin Dandridge <[email redacted]> Cc: Todd Anderson <[email redacted]> Subject: RE: ROC Information Needed

Todd,

See my highlighted responses below, let me know if we are on the same page?

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308 Received 12/22/2023 ROC Legal

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Kevin Dandridge <[email redacted]> Sent: Tuesday, September 19, 2023 9:08 AM To: Dave Fix <[email redacted]> Cc: Todd Anderson <[email redacted]> Subject: ROC Information Needed

Good Morning Dave

Please gather the following information need and forward to the ROC inspector as well as the opposing attorney.

1. Need signed copy of SOV emails, or texts in agreement to the Foam roofing being installed in lieu of the roof set on the plans. It was explained that the client wanted a cheaper option and the foam was cheaper at the time. We need a agreement or signature to show they agreed. They are stating they didn’t know Adanac were installing the foam roof. I have signed pay apps that include the owner’s signature every time we requested funds from the bank during the build process. Each pay app includes a copy of the schedule of values that clearly lists the Class A Foam roof. The owner’s claim that they did not know is baseless, they were notified in the original e-mail and schedule of values that they sent to the bank to finalize the contract, which the bank then referenced each time we received a draw. 2. You need to get with Pella windows on the installation process for the windows. The optional drip end was not installed with the stucco finish. There is an option drip edge that in not installed in Arizona and on the Pella website there is a video for installation of commercial windows and it does not show the drip edge being installed. Need a letter from the rep. to support. I will reach out to the rep., but ownership hasn’t paid them since we were removed from the project, and I am not sure how responsive they will be. 3. The power issue is I believe solved since the SES was ordered for exterior instead of interior that was on the plan by Navin the owners rep. The underground was done by others after Adanac was removed from site. Received 12/22/2023 ROC Legal

4. The AC unit issue I believe is solved since Adanac was not on site for the installation and the power was run for the correct AC units that were required per plan.

I have CC,d Todd Anderson from the ROC to make sure what was requested is correct to give him a chance to correct me if I misquoted.

Thank you

Kevin Dandridge | Owner

Life safety | Because you only get 1 life.

[email redacted]

www.1lifesafety.com

C: (602) 799-4800

4611 E Chandler Blvd Suite112-163

Phoenix Az, 85048 Received 12/22/2023 ROC Legal

Attachment 6

Communications with Todd Anderson Regarding Site Inspections

Email Chain with Todd Anderson Regarding Scheduling of Second Site Inspection

Todd,

The last communication I have from you is on 5/18 (see e-mail chain above) when I explained that Kevin Dandridge would not be available until mid-July. Kevin also responded the same. Why would you schedule the second inspection for a time when we told you Kevin wasn’t available? Received 12/22/2023 ROC Legal

Also, do you have a copy of the e-mail you sent to us regarding the second inspection that took place on June 26th , because I do not have a record of it? As far as I know we were unaware of the second inspection that took place.

Again, Kevin is not available on the date you are proposing to have the latest inspection and all along, he was the person that needed to be there. We (Kevin and my attorney) were on site for the first inspection that the complainant wasn’t and it will be highly detrimental to our position if Kevin is not at this final inspection.

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Wednesday, July 26, 2023 11:20 AM Received 12/22/2023 ROC Legal

To: Dave Fix <[email redacted]> Subject: Re: ROC Complaint #2023-02548

Dave,

We had a 2nd inspection on June 26th. I sent out the reschedule letters on May 26th. Only the Complainant showed that time.My report is nearly done but I need input from both parties in order to complete. The new inspection is scheduled for August 7th at 9am.

Thanks,

Todd

On Tue, Jul 25, 2023 at 8:35 AM Dave Fix <[email redacted]> wrote:

Todd,

If I recall, the only jobsite inspection was the one attended by my representative Kevin Dandridge and my attorney Doug Dieker? The owner no showed…correct?

Thank You,

David Fix/CEO

17505 N. 79th Avenue

Suite 210

Glendale, AZ 85308 Received 12/22/2023 ROC Legal

Office: 623.266.2761

Fax: 623.328.5186

AZ ROC# 189034 KB-01/# 328481 C-37

CA ROC# 1046543

From: Todd Anderson <[email redacted]> Sent: Monday, July 24, 2023 2:02 PM To: [email redacted]; [email redacted]; Dave Fix <[email redacted]> Subject: ROC Complaint #2023-02548

Dear Complainant and Respondent:

The report for the above complaint is nearly finished. However, a few issues/clarifications need to be addressed before an inspection report is issued. If at all possible, could we get both parties in attendance for a new Jobsite Inspection on August 7th at 9am?

Please let me know if you cannot attend.

Thank you,

Todd Anderson Received 12/22/2023 ROC Legal

Attachment 7

Communications between McDowell Hotel LLC Attorney and Adanac Attorney

Letter from McDowell Hotel LLC Attorney Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal Received 12/22/2023 ROC Legal

Response to Above From Adanac Attorney to McDowell LLC Attorney

October 26, 2023

Via Email Only ([email redacted]) Kevin M. Estevez, Esq. HOLDEN WILLITS, PLLC Two North Central Avenue, Suite 2000 Phoenix, Arizona 85004

Re: McDowell Hotel I, LLC v. Adanac Builders Corporation

Dear Kevin:

I am in receipt of your correspondence dated October 19, 2023. As you know, Adanac Builders disputes that the contract between the parties was rightfully terminated for cause pursuant to Section 14 of the AIA A202-2017. Therefore, my client disputes that your client is entitled to any claimed damages. Rather, it is Adanac that has been damaged by your client’s wrongful termination.

Should you have any questions, comments or concerns and wish to discuss this further, please feel free to contact me.

Sincerely,

/s/ Douglas F. Dieker

Douglas F. Dieker For the Firm Received 12/22/2023 ROC Legal

Attachment 8

Communications From Adanac with Bel-Rea and Bel- Rea Insurer

E-mail to Bel-Rea

Brett,

The owner of the Holiday Inn Express at 95th and McDowell has filed an ROC complaint against Adanac regarding the window installation. Their complaint is that the correct flashing was not used when the windows were installed. The flashing pieces in question are the top and bottom caps with drip edge that were purchased by Adanac with the window package, but for some reason were not installed by your company when the windows were installed.

The purpose of this e-mail is to ask you to make the corrections requested by the ROC without me having to file a complaint with the ROC to force you to comply.

Perhaps the first step would be for you to plan to meet at the hotel and review what it is that the owners are claiming.

Further, per the sub-agreement we have with you for this project, you are required to indemnify us regarding workmanship. We have the name of your insurance carrier at the time and will be sending them notice as well.

Please help us so that we can get this resolved.

Thank You,

David Fix/CEO Received 12/22/2023 ROC Legal

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

Non-Deliverable e-mail Response To Above Email

Delivery has failed to these recipients or groups:

[email redacted] ([email redacted]) Your message couldn't be delivered. The Domain Name System (DNS) reported that the recipient's domain does not exist.

Contact the recipient by some other means (by phone, for example) and ask them to tell their email admin that it appears that their domain isn't properly registered at their domain registrar. Give them the error details shown below. It's likely that the recipient's email admin is the only one who can fix this problem.

For more information and tips to fix this issue see this article: https://go.microsoft.com/fwlink/?LinkId=389361. Received 12/22/2023 ROC Legal

E-Mail to Bel-Rea Insurer

To Whom It May Concern,

We contracted with your insured, Bel-rea LLC 31107 N 161st Pl Scottsdale, AZ 85262; Policy #NXT3LXVALT-00-WC, see COI above to install windows at our Holiday Inn Express project. See contract with Bel-rea LLC above.

Per our sub-contractor agreement and contract, Bel-rea LLC is required to indemnify us in the event of a workmanship complaint relating to any work that they performed on the project.

Per the AZ Registrar of Contractor’s Written Directive attached above, I have highlighted the area that Bel-rea LLC is responsible to make corrections. I have attempted to reach Bel-rea LLC, but the contact information we had for them is no longer valid.

We are sending this to you so that we can open a file/claim against Bel-rea LLC.

Please let me know what he next step(s) are.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543 Received 12/22/2023 ROC Legal

E-Mail Response From Bel-Rea Insurer

Thanks for reaching out! Your request (#3920452) has been received and is being reviewed by our support staff. We'll get back to you as soon as possible.

Your experience and satisfaction with our Customer Support team is very important to us.

For immediate answers to the most commonly asked questions, please visit our Help Center.

If you are a customer with us, check out our mobile app for 24/7 support!

To download on iOS: NEXT Insurance To download on Android: NEXT Insurance - Apps on Google Play

Download here to get your certificates fast and manage all your business needs such as billing, policy information, and more.

Sincerely, NEXT

Next Insurance, Inc. • PO Box 60787 Palo Alto, CA 94306

(855) 222-5919 Mon - Fri, 6:00 am - 5:00 pm PT

Latest Communication Between Adanac and Bel-Rea Insurer

Abeal,

Please see my responses below in red.

Thank You,

David Fix/CEO

5830 W Thunderbird Rd.,

Suite B8-167

Glendale, AZ 85306-4655

AZ ROC# 189034 KB-01/# 328481 C-37/# 339911 KA-5

CA ROC# 1046543

From: Abeal <[email redacted]> Sent: Wednesday, December 20, 2023 11:02 AM To: Dave Fix <[email redacted]> Subject: [Next Insurance Claims] Re: Claim NXTC-AZGL-HQDFQQ Involving Property Located at 1750 N 95th Lane, Phoenix, AZ, 85037.

Please type your response above! Received 12/22/2023 ROC Legal

A message from our team To respond, simply reply to this email.

Abeal (Next Insurance)

Dec 20, 2023, 12:01 CST

Hello Dave,

I appreciate your prompt response.

At the current moment, coverage is pending and the claim investigation is ongoing.

Please answer the following questions. For any questions that you do not have the answer for, please indicate "Unknown". For any questions that do not apply, please indicate “N/A”.

• Please confirm and update the following contact information Confirmed • Email address: [email redacted] • Phone number: 602-292-3987 • Address: 5830 W Thunderbird Rd Suite B8-167, Glendale, AZ, 85306 Received 12/22/2023 ROC Legal

• Please confirm if the following incident location is correct • 1750 N 95th Lane, Phoenix, AZ, 85037

• Was my Insured hired by Adanac Builders Corporation? Yes • Was Adanac Builders Corporation the general contractor for this project? Yes • From the work contract provided, it appears that the Insured was hired to perform window installation work. Is this correct? Yes • Was there any more work that the Insured performed other than window installation? No • Was the work supposed to be performed by my Insured, employees or subcontractors? Employees • Were permits/licenses required for the work that was to be performed on the property? Yes

• To confirm, did the work start on 10/4/2021? Yes • The estimated completion date per the work contract is 10/15/2021. Was the work completed? Yes • If so, was the work completed on 10/15/2021? If not, what date was it completed? • Was the work inspected by anyone after its completion? Received 12/22/2023 ROC Legal

Did it appear to be in working condition? Yes • If not completed, how much work was left?

• In your own words, can you describe what happened? Flashing that Bel-rea used was not the flashing that came with the window package. • What date were these issues discovered? Exact date unknown • Who discovered it? Building Owner • What happened following the discovery? Building Owner filed a complaint with the Arizona Registrar of Contractors against our GC license. • Was my Insured informed of this? If so, on what date? We have been unable to reach your insured. Contact information we have is no longer valid. • Do you have contact information for my Insured available? If so, please provide. See above.

• What are the damages? Removal of stucco around windows to access installation of flashing is required to rectify. Replace stucco. • Where on the property are the damages located?At windows throughout the main structure. Received 12/22/2023 ROC Legal

• Was there any pre-existing damage before this incident occurred? No • Do you have photos available? If so, please provide for review. No

• Have any repair estimates been obtained? If so, please provide. No • Have any repairs been performed? If so, please provide the repair invoice(s). No • On what dates were the repairs started and completed?

• Has this claim been filed with any other insurance companies? If so, please provide the claim information and status of claim, if available. N/A • Is this claim in suit? If so, please provide the case information. Not yet, but likely to go there

• Is the claimant McDowell Hotel I LLC or Holiday Inn? McDowell Hotel LLC • Please provide the claimant contact information. Kevin Estevez [email redacted] Attorney for McDowell Hotel LLC

I look forward to hearing from you soon with the requested information. On my end, I will continue to investigate the claim and provide you with a status update once I have all I need to finalize the investigation. Received 12/22/2023 ROC Legal

Please note that the office will be closed from Friday to Tuesday for the holiday weekend. I will follow up by Tuesday afternoon with an update on the investigation of the claim

Thank you for your time.

Best regards,

Abeal Claims Advocate Next Insurance

For your protection Arizona law requires the following statement to appear on this form. Any person who knowingly presents a false or fraudulent claim for payment of a loss is subject to criminal and civil penalties.

Next Insurance, Inc. • PO Box 60787 Palo Alto, CA 94306 Mon - Fri, 6:00 am - 5:00 pm PT

Privacy Policy Received 12/22/23, 2:42 PM State of Arizona Mail - RE: Written Answer to Citation & Complaint 2023-02548 E-mail 12/22/2023 3/3 ROC Legal

Donna Lewandowski <[email redacted]>

RE: Written Answer to Citation & Complaint 2023-02548 E-mail 3/3 Dave Fix <[email redacted]> Fri, Dec 22, 2023 at 2:39 PM To: Donna Lewandowski <[email redacted]>

Donna,

Attached is an all inclusive copy of the Written Answer to the Citation and Complaint including all e-mails and attachments.

[Quoted text hidden]

Adanac HIE ROC Response.docx 31742K

https://mail.google.com/mail/u/0/?ik=278fe7c9ff&view=pt&search=all&permmsgid=msg-f:[number redacted]&simpl=msg-f:[number redacted] 1/1 Mediation Notice

Mediation Services Mediation services are available to the parties. What is Mediation? Mediation is a method of resolving disputes where the parties can end conflict without the expense and time associated with the full administrative process. Who Participates in During mediation, a mediator will attempt to help the Mediation? parties find an optimal solution to the conflict. Both parties must agree to participate in mediation, and both parties must bring a representative to mediation that has full authority to settle the entire matter. Mediation Is Not Neither the Registrar nor the Office of Administrative Mandatory Hearings will penalize a party for not agreeing to mediation. Where do the Parties The parties will meet at the Office of Administrative Meet for Mediation? Hearings to participate in mediation.

The Office of Administrative Hearings is located at 1400 West Washington, Suite 101, Phoenix, Arizona 85007. When does Mediation can occur after the Registrar issues a citation, but Mediation Occur? before the administrative hearing. Why Should Parties Mediation can be an alternative to the full administrative Consider Mediation? process. Mediation is beneficial because it is (1) time- efficient, (2) cost-effective, (3) confidential, and (4) capable of providing flexible solutions to complex problems. How to Request If the parties wish to mediate this case, they must file a Joint Mediation Request for Mediation with the Office of Administrative Hearings. A Joint Request for Mediation is included with this Mediation Notice. REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA _________________________ Case No. _______________ COMPLAINANT,

v. JOINT REQUEST FOR MEDIATION _________________________ RESPONDENT.

REQUEST

The parties jointly request that this matter be referred to mediation in the Office of Administrative Hearings (OAH). ☐ This matter is set for hearing on __________________(date). ☐ This matter is not currently set for hearing. MEDIATION AGREEMENT By requesting this mediation and signing below, the parties understand, represent, and agree: 1. The parties are prepared to commence mediation and will be ready for mediation on _____________________(date); 2. The parties will participate in the mediation process in good faith; 3. This request for mediation is not intended to hinder or delay administrative proceedings; 4. No party will contend that the mediation limits the power of OAH and its administrative law judges to conduct an administrative hearing and issue decisions under A.R.S. §§ 41-1092 – 1092.12; 5. The parties will be courteous and respectful throughout the mediation process to all participants; 6. The mediation is completely voluntary and the principal purpose is to allow the parties a full and fair opportunity to discuss settlement; of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 7. The mediator may conduct joint and separate meetings with the parties and may suggest resolutions to the parties’ dispute, but the mediator has no authority to impose a settlement upon the parties; 8. The mediation process is confidential. Communications made, material created for or used during, and acts occurring during mediation are confidential and may not be discovered or admitted into evidence in any proceeding except as provided by A.R.S. § 12-2238; 9. The mediator is not subject to service of process or a subpoena to produce evidence or to testify regarding any evidence or occurrence relating to the mediation except as provided in A.R.S. § 12-2238(C); 10. Neither the mediator, nor the Registrar of Contractors, nor the Office of Administrative Hearings is subject to civil liability for any act or omission in connection with any mediation service or activity except for acts involving

intentional misconduct or reckless disregard of a substantial risk of injury to the rights of others; 11. Throughout the mediation process, each party must have a representative present who will have full settlement authority to settle all claims at issue in the administrative

proceeding. 12. The mediation process will terminate when: a. The parties reach settlement; b. The mediator determines that further efforts at mediation are no longer likely

to achieve a settlement; or c. One of the parties withdraws from mediation. _____________________________________ _______________________ Complainant (or representative) Date

_____________________________________ _______________________ Respondent (or representative) Date

of 3 REGISTRAR OF CONTRACTORS 1700 W. Washington St. Suite 105 – PHOENIX, AZ 85007-2812 Telephone (602)542-1525 1-877-692-9762 PREHEARING DISCLOSURE STATEMENT INSTRUCTIONS ***DO NOT SUBMIT THESE INSTRUCTIONS WITH THE PREHEARING DISCLOSURE FORM***

ADMINISTRATIVE RULES A copy of the Arizona Administrative Code’s Rules for the Registrar of Contractors can be located on the Registrar’s Website.

PREHEARING DISCLOSURE REQUIREMENT Under A.A.C. R4-9-118(A), before a hearing, the parties must prepare a disclosure statement. The disclosure statement must contain: • A list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony; and • A list of all the exhibits that the party will use at the hearing.

FILE PREHEARING DISCLOSURE STATEMENTS • The Prehearing Disclosure Statements and Exhibits may be submitted to the Arizona Office of Administrative Hearings using any of the following: • Electronically: https://portal.azoah.com/submission/ • In-Person or by Mail: 1740 West Adams Street, Lower Level, Phoenix, Arizona 85007

EXCHANGING DISCLOSURE STATEMENTS AND EXHIBITS Under A.A.C. R4-9-118(B) (effective November 5, 2017), a party to the hearing must serve on every other party and file with the Office of Administrative Hearings a copy of: • The disclosure statement; and, • Any exhibit that the party will use at the hearing. Service: The disclosure statement and exhibits must be served on all parties in accordance with Arizona Administrative Code R2-19-108 Filing Documents. Under A.A.C. R2-19-108, service is completed by: • Personal delivery; • 1st class, certified or express mail; or • Facsimile. Timing: The disclosure statement and the exhibits must be served and filed not less than seven calendar days before the date of the hearing. Under A.A.C. R2-19-108, a document is served on a party: • On the date it is personally served; • Five days after it is mailed by express or 1st class mail; • On the date of the return receipt if it is mailed by certified mail; or • On the date indicated on the facsimile transmission.

CONSEQUENCES FOR FAILING TO DISCLOSE Under A.A.C. R4-9-108(C), if a witness or an exhibit is not timely disclosed as required the rules, and good cause for the failure to disclose is not shown, then the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

Form RC-L-800A Prehearing Disclosure Statement Rev. 10/08/2019 Instructions Form PREHEARING DISCLOSURE STATEMENT FORM RC-L-800A

PART 1: WITNESS LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the witnesses the party will call to testify, including the witnesses’ contact information and a brief description of the subject matter of the witnesses’ expected testimony. If you need additional space to list all witnesses, complete and attach additional Witness Lists. Example 1. Name 2. Telephone Number 3. Email Address

John Doe (123) 456-7890 [email redacted] 4. Subject Matter of Expected Testimony

John Doe will testify regarding the poor workmanship and poor installation of the Garage Door. Mr. Doe will also testify regarding the invoices and change orders for the project.

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Witness 1. Name 2. Telephone Number 3. Email Address

4. Subject Matter of Expected Testimony

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 1 of 3 PART 2: EXHIBIT LIST DOCKET NO. Under A.A.C. R4-9-118(A), before a hearing, a party must prepare a disclosure statement containing a list of all the exhibits that the party will use at the hearing. Note: All exhibits listed below must be provided to all parties to the hearing. See A.A.C. R4-9-118(B). If you need additional space to list all witnesses, complete and attach additional Exhibit Lists. Example Contract for new garage door. Invoice #10001 – Cost for garage door replacement.

Exhibit Exhibit Name

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 2 of 3 PART 3: ACKNOWLEDGEMENT & SIGNATURE I certify that the above information is true and correct and that I will serve a copy of this disclosure statement and any exhibits listed in Part 2 to all parties to the hearing in accordance with A.A.C. R4-9-118. I acknowledge and understand that if I fail to properly disclose a witness or exhibit, the administrative law judge may: • Order that certain witnesses or exhibits not be used at the hearing; • Order that a particular fact is or is not established for the record; or, • Order that a charge, a defense, a claim, or some portion thereof, be dismissed.

I am the (check one):  Complainant  Respondent Docket No.

Print Name Signature Date

Form RC-L-800A Prehearing Disclosure Statement Rev. 1/15/2019 Page 3 of 3