2023A-11542-CHC-ROC Notice of Hearing and Packet MAILED

2023A-11542-CHC-ROC · Registrar of Contractors · 2024-01-25

REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Degler Davies , Case No. 2023-11542 COMPLAINANT, Docket No. 2023A-11542-CHC-ROC v. NOTICE OF HEARING ON CONTESTED CASE SHAZ GC Inc License No. ROC 327019,

RESPONDENT.

This Notice of Hearing is issued under A.R.S. § 41-1092.05(D).

HEARING INFORMATION The hearing is set for:

March 8, 2024 9:00 AM Sondra Vanella 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 20, 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 26, 2024.

By: /s/ Erika Hoskin Erika Hoskin Legal Secretary Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail January 26, 2024 to: Respondent(s) SHAZ GC Inc 8800 N Gainey Center Dr Ste 350 Scottsdale, AZ 85258

James N. Hanson, Esq. 6730 N Scottsdale Rd Ste 101 Scottsdale, AZ 85253

Complainant(s) Degler Davies 6146 E Alta Hacienda Dr Scottsdale, AZ 85251

Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar

Case No. 2023-11542 /

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

Complainant: Degler Davies 6146 East Alta Hacienda Drive Scottsdale, AZ 85251

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Respondent: SHAZ GC Inc 8800 N Gainey Center Dr Scottsdale, AZ 85258

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 October 12, 2023

Jobsite Inspection Notice Re: Complaint Number 2023-11542

Dear Complainant and Respondent:

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

A jobsite inspection is scheduled for November 2, 2023 at 10:15 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.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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, Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 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 C008 05/21 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.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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.

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 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 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.

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 · Toll Free 877.692.9762 · roc.az.gov C008 05/21 Jobsite Inspection Notes

Case No.: 2023-11542 Investigator: Robert Di Alto Inspection Date: November 2, 2023 Inspection Time: 10:15 AM

Complainant: Degler Davies Respondent: SHAZ GC Inc Not Present: Not Present:

Jobsite General Notes: JSI photos taken with my Google Pixel Phone camera. JSI audio recorded with my Olympus Digital Voice Recorder model DM-720. JSI photos and audio have been placed into the ROC complaint file.

Complaint Item: 1- Interior paint is unacceptable. Shea Homes repainted the outside and inside of the home soon after we closed due to poor workmanship. Shea is in agreement that the homes interior is still not acceptable but are not willing to paint the entire home only certain walls. I have shown them the issues, requested that they view it at night, when the true issue are really visible and they refuse to come after hours to inspect their workmanship. Investigator’s Observation: Verified. I observed several areas where the described complaint item exists. The areas appear to be repairs that have not been sealed or painted and range to repaired and painted areas that are visually apparent and do match the surrounding surfaces/wall and or trim work. Contractor should properly prepare and refinish areas where texture and color is not uniform, matching texture and color as closely as possible. Where the texture and color is not uniform and affects the majority of the wall or area, the whole area should be refinished. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards

Complaint Item: 2- Downstairs bedroom and pantry do not cool. Shea has had Reeis out on many occasions, but it is still not fixed. Follow up appointment has been made but as of today, ac does not cool these two areas. Investigator’s Observation: Verified. The areas described appear to have been an ongoing issue and the Respondent and the subcontractor (Reeis) are aware of the issue and are currently working with the Complainant to resolve them. The Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

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

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 #2023-11542 P 1 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 2 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 3 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 4 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 5 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 6 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 7 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 8 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 9 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 10 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 11 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 12 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 13 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 14 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 15 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 16 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 17 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 18 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 19 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 20 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 21 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 22 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 23 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complaint #2023-11542 P 24 JSI date 11/02/2023 at 10:15 AM JSI PHOTOS Complainant: Degler Davies 6146 East Alta Hacienda Drive Scottsdale, AZ 85251

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: SHAZ GC Inc 8800 N. Gainey Center Drive, Suite 350 Scottsdale, AZ 85258

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C009 04/21 November 14, 2023

License No. ROC 327019

Re:Complaint No. 2023-11542

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 12/01/2023

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:

Complaint Item: 1- Interior paint is unacceptable. Shea Homes repainted the outside and inside of the home soon after we closed due to poor workmanship. Shea is in agreement that the homes interior is still not acceptable but are not willing to paint the entire home only certain walls. I have shown them the issues, requested that they view it at night, when the true issue are really visible and they refuse to come after hours to inspect their workmanship. Investigator’s Observation: Verified. I observed several areas where the described complaint item exists. The areas appear to be repairs that have not been sealed or painted and range to repaired and painted areas that are visually apparent and do match the surrounding surfaces/wall and or trim work. Contractor should properly prepare and refinish areas where texture and color is not uniform, matching texture 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 and color as closely as possible. Where the texture and color is not uniform and affects the majority of the wall or area, the whole area should be refinished. Respondent shall correct by the appropriate means. Governing Rule: Workmanship Rule: ARS §32-1154 (A) (3), namely R4-9-108, Poor work not performed in accordance with professional industry standards

ITEMS NOT REQUIRING CORRECTION The following complaint items require no action by the Respondent:

Not Applicable

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

Sincerely,

Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 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 Complainant: Degler Davies 6146 East Alta Hacienda Drive Scottsdale, AZ 85251

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 05/21 Respondent: SHAZ GC Inc 8800 N. Gainey Center Drive, Suite 350 Scottsdale, AZ 85258

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov

C012 05/21 December 6, 2023

Compliance Jobsite Inspection Notice Re: Complaint No. 2023-11542

Dear Complainant and Respondent:

A Compliance Inspection has been scheduled for December 15, 2023 at 1:30 PM to determine the current status of the items listed on the issued Directive.

The Complainant is required to be present for this inspection. The Respondent is encouraged to be present but is not required to attend.

Complainant: SAFE ACCESS IS REQUIRED TO ANY AREA TO BE INSPECTED.

Sincerely, Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 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

C012 05/21 Complaint #2023-11542 P 1 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 2 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 3 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 4 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 5 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 6 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 7 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 8 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 9 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 10 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 11 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 12 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 13 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 14 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 15 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 16 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 17 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 18 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 19 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 20 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 21 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 22 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 23 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 24 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 25 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complaint #2023-11542 P 26 CJSI date 12/00/2023 at 2:00 PM CJSI PHOTOS Complainant: Degler Davies 6146 East Alta Hacienda Drive Scottsdale, AZ 85251

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Respondent: SHAZ GC Inc 8800 N. Gainey Center Drive, Suite 350 Scottsdale, AZ 85258

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

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 Case No.: 2023-11542 Investigator: Robert Di Alto Inspection Date: December 15, 2023 Inspection Time: 1:30 PM

COMPLIANCE JOBSITE INSPECTION NOTES

Compliance Jobsite General Notes: CJSI photos taken with my Google Pixel Phone camera. CJSI audio recorded with my Olympus Digital Voice Recorder model DM-720. CJSI photos and audio have been placed into the ROC complaint file.

Complaint Item: 1- Interior paint is unacceptable. Shea Homes repainted the outside and inside of the home soon after we closed due to poor workmanship. Shea is in agreement that the homes interior is still not acceptable but are not willing to paint the entire home only certain walls. I have shown them the issues, requested that they view it at night, when the true issue are really visible and they refuse to come after hours to inspect their workmanship. Investigator’s Observation: I observed several locations where the Respondent had performed the corrective work and it appeared to meet professional industry standards. However, I also observed several areas that appeared to have been missed and not addressed and several locations that do not meet professional industry standards. Visible horizontal lines, several roller marks on upstairs hall ceiling etc. Compliance Findings: NOT CORRECTED

Complaint Item: 2- Downstairs bedroom and pantry do not cool. Shea has had Reeis out on many occasions, but it is still not fixed. Follow up appointment has been made but as of today, ac does not cool these two areas. Investigator’s Observation: Verified. The areas described appear to have been an ongoing issue and the Respondent and the subcontractor (Reeis) are aware of the issue and are currently working with the Complainant to resolve them. The Respondent shall correct by the appropriate means. Compliance Findings: WITHDRAWN Complainant chose to withdraw this complaint item at the time of this compliance inspection.

Note: Complainant is not willing to continue to work with Respondent. Stated that written directive was the fourth attempt by the Respondent to perform corrective work.

Please review the complaint items listed above. If any of the items have not been corrected at the time of the compliance inspection this complaint will be forwarded to the Registrar’s legal department and a citation may be issued. 1700 W. Washington Street, Suite 105 · Phoenix AZ 85007-2812

602.542.1525 · Toll Free 877.692.9762 · roc.az.gov C013 4/21 If all items are corrected after receipt of this letter, please notify the Registrar’s legal department by sending a notice of compliance signed by the complainant to fax number (602) 364-0416 or by mail to: Arizona Registrar of Contractors, P.O. Box 18244, Phoenix, Arizona 85005-8244. Sincerely,

Robert Di Alto Robert Di Alto Investigator 602 7716758 [email redacted] 1700 W Washington St, Suite 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 C013 4/21 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Degler Davies, Case No. 2023-11542 COMPLAINANT, v.

SHAZ GC Inc, CITATION License No. ROC 327019,

RESPONDENT.

The Registrar issues this Citation to SHAZ GC Inc (“Respondent”) under A.R.S. § 32- 1155(A). If Respondent fails to answer this Citation by January 4, 2024, 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 October 3, 2023, Degler Davies (“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 5 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. 2023-11542. 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, AZ 85007-2812 Mail: P.O. Box 18244, Phoenix, AZ 85005-8244 Email: [email redacted] 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

of 5 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 Registrar actually receives it. Deadline for Filing a Written Answer: Respondent must file a written answer with the Registrar no later than January 4, 2024. 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. 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-

of 5 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 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 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 20, 2023 By: /s/ Katelyn Rolling Katelyn Rolling Legal Assistant II Legal Department Arizona Registrar of Contractors

of 5 1700 W. Washington Street, Suite 105 · Phoenix, AZ 85007-2812 602.542.1525 · Toll Free 877.692.9762 · roc.az.gov Lg101 8/21 COPY of the foregoing mailed by Certified Mail, Return Receipt Requested, December 20, 2023 to:

Respondent Certified Mail No: [number redacted]

SHAZ GC Inc 8800 N Gainey Center Dr Ste 350 Scottsdale, AZ 85258 Copy mailed by USPS First Class Mail this same date to: Respondent SHAZ GC Inc 8800 N Gainey Center Dr Ste 350 Scottsdale, AZ 85258 Complainant Degler Davies 6146 E Alta Hacienda Dr Scottsdale, AZ 85251

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

Case No. 2023-11542

of 5 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

Person Filing Complaint Full Name (First Middle Last) Business Name (if a licensed contractor or supplier) ROC License Number(s) (if any)

Degler Davies Mailing Address (Enter jobsite in Contract/Project section) City State Zip

6146 East Alta Hacienda Drive Scottsdale Arizona 85251 Phone Number Email

[number redacted] [email redacted] I consent to receive communications electronically in connection with this case Name of Attorney (if any)

Street Address of Attorney City State Zip

Phone Number of Attorney Email of Attorney

Contractor Information Name (as shown on contract/invoice) ROC License Number(s)

SHAZ GC Inc ROC 327019 Street Address City State Zip

8800 N Gainey Center Dr Scottsdale AZ 85258 Phone Number Email

[number redacted] Name of Person(s) Representing License

Zach Waite;Landon Truscott Contract/Project Information Contract Date Contract Amount Amount Paid

December 11, 2020 $2,053,500.00 $2,053,500.00 Date Work Started Date Work Stopped Date Work Was Completed

November 1, 2021 March 30, 2023 March 30, 2023 Close of Escrow (New Home) Move-In Date (New-Home)

Jobsite Street Address City State Zip

6146 East Alta Hacienda Drive Scottsdale AZ 85251 Name of Construction Site Owner Construction Site Name (if applicable)

Phone Number of Construction Site Owner Email of Construction Site Owner

This complaint is for Poor Work I have contacted the contractor by Phone/Text;Email Have you filed a complaint in court? No Has any work been corrected? Yes

RCC099 12/05/18 Page 1 of 2 Licensed Complaint Form Departmental Use Only For Current or Suspended Licensees

Shea Homes The contract was Written All change orders were Written This project was Residential This project involved New Home

A building permit was obtained by Contractor RSFC21012588 Phoenix, Maricopa 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)

Interior paint is unacceptable. Shea Homes repainted the outside and inside of the home soon after we closed due to poor workmanship. Shea is in agreement that the homes interior is still not acceptable but are not willing to paint the entire home only certain walls. I have shown them the issues, requested that they view it at night, when the true issue are really visible and they refuse to come after hours to inspect their workmanship. Downstairs bedroom and pantry do not cool. Shea has had Reeis out on many occasions, but it is still not fixed. Follow up appointment has been made but as of today, ac does not cool these two areas.

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

Degler Davies \complainant1\ \complainantd1\

RCC099 12/05/18 Page 2 of 2 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

RECORD OF CASH RECEIVED [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

Buyer’s Wire Transfer # [number redacted] in the amount of $50,000.00 is attached as payment for the following:

 Earnest Deposit  Other – Home Price  Pre-Paid Options/Upgrades  Other – Third Party Options

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST

Buyer Signature Date

dl.signhere.9 dl.datesign.9 12/11/2020 | 3:54:00 PM MST Agent for Shea Homes Date

Receipt - Payment Rev. 11-15-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

PURCHASE CONTRACT, RECEIPT AND JOINT ESCROW INSTRUCTIONS Degler Davies, Christy Davies (collectively “Buyer”) offers to purchase the real property located at 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017 together with a “Home” (the “Property”) from Shea Homes Arizona Limited Partnership, an Arizona limited partnership (“Seller”), for a purchase price of $2,053,500.00 as may be amended in writing. Following Closing, Seller shall cause “Contractor”, to build the Home, Seller’s Plan No. 4035, Name Residence 3, Elevation A and Garage Right on the Property. Upon the date of Seller’s acceptance (“Effective Date”), this document and its addenda shall form a binding “Contract”.

BUYER SHOULD CAREFULLY READ THIS DOCUMENT AND THE ACCOMPANYING DISCLOSURES BEFORE PURCHASING. PARAGRAPH 10 OF THIS CONTRACT INCLUDES DISPUTE RESOLUTION PROCEDURES THAT INCLUDE BINDING ARBITRATION OF DISPUTES, INCLUDING, WITHOUT LIMITATION, DISPUTES REGARDING ALLEGED CONSTRUCTION DEFECTS. ANY SUCH PROCEDURES WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS AND CLASS ACTIONS ARE NOT PERMITTED.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

1. PURCHASE PRICE.

Purchase Price for the Property and the Home $2,053,500.00 Earnest Money Deposit received with Contract ($50,000.00) Secondary Earnest Money Deposit (Due Effective Date +90) ($50,000.00) Amount Due at Closing (Exclusive of Closing Costs) ($761,400.00) Balance Due Post-Closing (Subject to Addendum A) $1,192,100.00

As material consideration for Seller taking the Property off the market for Buyer, Buyer agrees the “Earnest Money Deposits” and any Additional Deposits (as defined below) are nonrefundable to Buyer except as provided herein. Earnest Money Deposits and Additional Deposits collectively shall be referred to as “Deposits”. Buyer shall not be entitled to any interest on Deposits.

2. OPENING OF ESCROW; ESCROW AGENT. Buyer understands he/she may use any title or escrow company of his/her choosing. Seller and Buyer agree to appoint the entity referenced in Addendum A as the “Escrow Agent” and Seller shall cause “Escrow” to be opened with Escrow Agent. This Contract shall serve as escrow instructions. This Contract shall control any conflict between instructions required by Escrow Agent and this Contract. The parties shall perform all reasonable acts required by Escrow Agent.

3. PAYMENT. Buyer shall make all required payments when due and in strict accordance with the terms of this Contract and Addendum A. All amounts paid to Seller shall be considered earned by Seller upon payment.

4. CLOSING; CLOSING COSTS AND PRORATIONS.

a. Closing: Seller will schedule the “Closing Date” or “Close of Escrow” (the date and time when the deed from Seller to Buyer records) approximately between 30 days from the Effective Date and 60 days prior to the commencement of construction. Seller may alter the Closing Date in its sole discretion. The Parties shall take such necessary steps to effect a “Closing” on the Closing Date. Any delay in Closing by Buyer shall constitute a non-curable default. However, in the event of such default, Seller in its sole and absolute discretion may elect to extend the Closing Date if Buyer agrees to pay an extension fee of $500.00 per day for each calendar

Phoenician Purchase Contract Page 1 of 11 Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

day of delay directly to Seller and NOT be credited toward the Purchase Price. However, this does not grant Buyer any right or impose on Seller any duty to delay Closing. Buyer acknowledges there may be a delay of two (2) or more days between the signing of the Closing documents and the Closing.

b. Conveyance and Title Insurance: Upon the Closing, Seller shall convey title to the Property to Buyer via Special Warranty Deed. Title shall be free and clear of any liens or encumbrances, except the Memorandum of Agreement attached pursuant to Paragraph 11 along with any lien of any real property taxes or assessments not yet due or payable, all assessments, special taxes and bonds of record, easements, dedications, rights-of-way, agreements, the CC&Rs and all other covenants, conditions, restrictions and reservations of record, all alternative dispute resolution or similar agreements of record or to be placed of record at the Closing and any deed of trust, mortgage, other lien or encumbrance caused by Buyer (the “Conditions of Title”). Buyer may elect to purchase from Escrow Agent a policy of title insurance in the amount of the Purchase Price insuring Buyer that title to the Property is vested in Buyer subject only to the Conditions of Title and printed exceptions and exclusions (“Title Policy”). Buyer is advised to review and understand the Title Policy and its exclusions and contact the Escrow Agent with questions. Prior to Closing, Seller and its affiliated companies reserve the right to grant easements so long as they do not materially interfere with Buyer’s use and enjoyment of the Property.

c. Closing Costs; Prorations: Buyer shall pay all costs associated with Closing (“Closing Costs”), except that Seller shall pay all costs in preparing, executing, acknowledging and delivering the deed. Real estate taxes, general and special assessments and bonds, and homeowner association assessments shall be prorated as of the Closing based on the most recent information without adjustment following Closing. Other costs shall be allocated in accordance with the custom as determined by Escrow Agent.

d. Differing Conditions. In the event Buyer discovers material facts different than those which Buyer believed to be true at the Effective Date, Buyer’s decision to Close Escrow constitutes Buyer’s acceptance of such facts and Buyer, to the extent allowed under applicable laws, agrees to waive any claim, cost, demand or action against Seller and Seller’s affiliates with regard to any such facts.

5. DESIGN SELECTIONS, OPTIONS AND UPGRADES. All selections, options, changes or upgrades not included on the “Plans” or “Included Features List” for the Home shall be set forth on Addendum B - Customer Options Request (“COR”). The timing for selection and the availability of “Construction Options” or “Design Upgrades” (collectively, “Options/Upgrades”) will be outlined on the Options/Upgrades Disclosure. Buyer’s failure to make timely Design Option selections is a default and in lieu of Seller’s other remedies, shall entitle Seller to excuse Buyer’s default in exchange for payment of $250 for each calendar day the default exists (“Delay Damages”). Failure to pay Seller Delay Damages within 5 calendar days of being requested to do so shall result in an incurable default. The availability of Options/Upgrades may be limited, and not all Options/Upgrades depicted in marketing materials, models or other homes in the community may be available. Buyer’s election of Options/Upgrades may require Additional Deposits, as determined by Seller in its sole and absolute discretion. If any Options/Upgrades cannot be installed for any reason, Buyer shall not be permitted to cancel this Contract. In the event an Option/Upgrade cannot be installed and if Seller does not provide a similar replacement, Buyer’s sole remedy will be a reduction in price equal to the cost of the Option/Upgrade, provided that the cost of the Option/Upgrade was included in the Purchase Price or Buyer provided an Additional Deposit with respect to such Option/Upgrade.

6. CONSTRUCTION.

a. Contractor. The “Contractor” for the construction of the Home is SHAZ GC, INC., a Delaware corporation (Arizona Contractor’s License # ROC327019), which is an affiliate of Seller. No sales tax receipt will be issued to Buyer nor does Seller warrant expressly or implicitly that any sales tax may be deducted from Buyer’s personal income tax. Buyer acknowledges that: (i) this Contract is between Buyer and Seller and is for the purchase of the Property with the Home constructed thereon in substantial accordance with the terms of this Contract, and is not a contract to construct a Home.

Phoenician Purchase Contract Page 2 of 11 Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

b. Seller’s License. Seller is in the business of selling completed homes built by Contractor. As a material inducement to Seller to enter into this Agreement, Buyer acknowledges and agrees that only Contractor shall be permitted to construct the Home on the Lot. Accordingly, following Close of Escrow Buyer grants Seller, Contractor and Contractor’s sub-tier contractors and suppliers an exclusive, irrevocable “License” to enter the Property to take all such actions reasonably related to Seller’s obligations under this Contract, including causing construction of the Home. Buyer has no right to take possession or occupancy of, nor perform or cause any work to be done on the Property prior to Construction Completion, defined below. NO CONSTRUCTION OF IMPROVEMENTS ON THE PROPERTY MAY BE COMMENCED BY ANYONE OTHER THAN CONTRACTOR PRIOR TO CONSTRUCTION COMPLETION. BUYER’S FAILURE TO ALLOW CONTRACTOR TO CONSTRUCT THE HOME IS A DEFAULT. The provisions of this paragraph survive the Closing.

c. Construction Generally in Accordance with Plans. Following Close of Escrow, Seller shall cause Contractor to construct the Home. Although Seller shall cause Contractor to construct the Home in general conformance with the applicable plans and specifications (collectively, the “Plans”), Seller or Contractor will likely make changes to the construction practices and/or Plans and each retain the right to do so in their sole and absolute discretion. Any such changes may not be reflected in the Plans on file with the governing municipality. Differences will exist in the as-built condition of the home compared to the Plans, and any difference is not considered a defect, a default or a breach of any warranty or representation. If there is a discrepancy between the Plans and the actual as-built conditions of the Home, the as-built conditions will control. The Plans are not part of the Purchase Price.

Even with the most prudent construction practices the possibility exists the Home may contain defective or deficient construction and/or components. NEITHER SELLER, BROKER, NOR CONTRACTOR REPRESENT THE HOME IS OR WILL BE COMPLETELY FREE FROM DEFECTS. THE WARRANTY OUTLINES THE TERMS AND CONDITIONS UNDER WHICH SELLER MAY REMEDY DEFECTIVE MATERIALS AND WORKMANSHIP.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

d. Property Visits. Buyer understands, acknowledges and agrees construction sites are inherently dangerous and hazardous and may cause serious bodily injury or death. Buyer shall not enter any portion of the Property without the prior written permission of Seller and Contractor, whose permission may be withheld in their sole discretion, and whose permission shall not constitute an assumption or guarantee of Buyer’s safety while on site. Buyer’s failure to abide by this Paragraph 5 shall be an un-curable default.

e. Brochures and Renderings. Buyer understands deviations may exist between the Property and designs shown in renderings, brochures, photographs, website pages, displays and other promotional materials as these are displayed for illustration only. Buyer acknowledges these items show prospective buyers what type of features could be incorporated into a home, help provide buyers with possible decorating ideas, and display fixtures and furnishings that may be unavailable to buyers.

f. Construction Start. Seller agrees to cause Contractor to begin construction of the Home within approximately 60 days of Close of Escrow, subject to extensions for such delays related to Options/Upgrades requested by Buyer, governmental authorities, or any other circumstances reasonably beyond the control of Seller and its affiliates and which constitute an “impossibility” under state law. No representation is made by Seller as to a specific start date or schedule of construction other than set forth in this Contract. Seller may not cause the Home to start until Buyer makes all required Options/Upgrade selections

g. Construction Completion. Buyer shall not occupy the Property until the municipality issues a certificate of occupancy and Seller deems the Home complete. (“Construction Completion”). Seller agrees to cause Contractor to complete construction of the Home within 2 years from the date Buyer signed this Contract,

Phoenician Purchase Contract Page 3 of 11 Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

subject only to delays caused by circumstances beyond Seller’s control which are legally recognized defenses to contract actions under the state law in which the Property is located. In the event construction of the Home is not completed within the timeframe set forth in this Subparagraph 6(d), Buyer shall have all remedies at law and equity. Notwithstanding, once started Seller estimates the Home will be completed within 8-14 months from the start of construction. This timeframe is an estimate only and should not be relied upon.

7. CUSTOMER WALK-THRU. Buyer agrees to attend a “Customer Walk-Thru” scheduled by Seller upon Construction Completion. At the Customer Walk-Thru the parties may sign a “Customer Walk-Thru Form” setting forth agreed-upon work or changes (“Punch Items”). The existence of Punch Items shall not entitle Buyer to withhold funds. Except as otherwise provided herein, if Buyer fails to participate in the Customer Walk-Thru, Buyer waives the right to request Punch Item completion. Buyer hereby acknowledges that after Construction Completion, Seller shall have no further or continuing responsibility to cause periodic inspection, replacement, maintenance or repair of improvements on the Property, except as set forth on the Customer Walk-Thru Form or as may be covered by the Warranty.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

8. WARRANTY. Seller hereby provides an express fit and finish warranty outlined in a warranty manual (“Warranty”). The Warranty outlines Seller’s policies and procedures, maintenance requirements and the warranties for the Property. The terms and conditions of the Warranty are incorporated herein. BUYER ACKNOWLEDGES, AGREES, AND ACCEPTS THAT THE WARRANTIES SET FORTH IN THE WARRANTY ARE THE ONLY WARRANTIES GIVEN TO BUYER AND ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. BUYER KNOWINGLY AND EXPRESSLY WAIVES ANY AND ALL CLAIMS UNDER ANY WARRANTIES IMPLIED BY LAW. BUYER REPRESENTS AND AGREES HE/SHE WILL TIMELY PERFORM ALL NECESSARY MAINTENANCE ON THE PROPERTY.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

9. DEFAULTS, REMEDIES, LIQUIDATED DAMAGES AND CANCELLATION.

a. Pre-Closing Buyer Default. Buyer’s failure to timely perform any obligation herein shall constitute a default. Other than defaults under Paragraph 4(a), Buyer shall have a period of 15 calendar days following the date of notice by Seller in which to cure any default. Buyer’s failure to timely cure the default shall entitle Seller to 1) immediately terminate this Contract; 2) be released from all obligations under the Contract; and 3) retain all Deposits made by Buyer, in an amount not to exceed 7% of the Purchase Price, as “Pre-Closing Liquidated Damages”. In the event Deposits exceed Pre-Closing Liquidated Damages, Seller shall refund the balance within 30 days.

b. Post-Closing Buyer Default. Buyer’s failure to timely perform any post-closing obligation, e.g. making timely payments under Addendum A or preventing Contractor from accessing the Property, shall constitute a default. Buyer shall have a period of 3 calendar days following the date of notice by Seller in which to cure any such default. Buyer’s failure to timely cure the default shall entitle Seller to either 1) immediately terminate this Contract and receive “Post-Closing Liquidated Damages” in an amount equal to 10% of the un-paid Balance Due Post-Closing, 2) pursue an action for specific performance, or 3) repurchase the Property and Home from Buyer in an amount equal to the total amount paid by Buyer toward the Purchase Price less 10% to cover Seller’s marketing, real estate commission, lost opportunity costs, lost profits, carrying costs, and other expenses.

c. LIQUIDATED DAMAGES. PRE-CLOSING LIQUIDATED DAMAGES AND POST- CLOSING LIQUIDATED DAMAGES SHALL COLLECTIVELY BE REFERRED TO AS “LIQUIDATED DAMAGES”. BY INITIALING BELOW, BUYER AND SELLER AGREE THE AMOUNT OF LIQUIDATED DAMAGES IS A REASONABLE ESTIMATE OF SELLER’S ACTUAL

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DAMAGES RESULTING FROM BUYER’S BREACH AND ARE REASONABLE AND NOT A PENALTY. BUYER EXPRESSLY AGREES SELLER’S DAMAGES WOULD BE IMPRACTICAL OR EXTREMELY DIFFICULT TO DETERMINE AS THE PARTIES ARE NOT ABLE TO DETERMINE AS OF THE EFFECTIVE DATE 1) WHEN OR IF BUYER MIGHT DEFAULT; 2) IN THE EVENT OF A PRE-CLOSING DEFAULT, WHEN SELLER MIGHT RESELL THE PROPERTY OR FOR HOW MUCH; OR 3) WHAT OTHER COSTS SELLER MIGHT INCUR (INCLUDING BUT NOT LIMITED TO BROKER’S COSTS, LOST OPPORTUNITY COSTS, LOST PROFITS, CARRYING COSTS, COSTS ASSOCIATED WITH RISK OF LOSS, ETC.). BY INITIALING BELOW, BUYER AGREES ITS STATEMENTS IN THIS PARAGRAPH 9(C) CONCLUSIVELY ESTABLISH THE LIQUIDATED DAMAGES AMOUNTS ARE REASONABLE.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Seller’s Initials dl.initialhere.13 dl.initialhere.14

d. Pre-Closing Seller Default. If Seller defaults hereunder, Seller shall have a period of 30 days following receipt of written notice by Buyer to cure the default. If Seller fails to cure the default within this period, Buyer shall be entitled to terminate this Contract upon written notice. If this Contract is so terminated, all amounts paid by Buyer to Seller under this Contract shall be returned to Buyer, Seller shall pay to Buyer an amount equal to the amount of “Earnest Money Deposit received with Contract” paid by Buyer under Paragraph 1 of this Contract, and neither party shall have any further obligation to one another under this Contract as of the effective date of termination, except as provided herein.

e. Post-Closing Seller Default. If Seller fails to perform any post-Closing obligation and such failure is not excused, Seller shall have a period of 30 days following written notice by Buyer to cure the default. In the event Seller cannot reasonable cure the default within 30 days, Seller shall have a reasonable amount of time to do so not to exceed 90 days. If Seller is unable to cure the default, Buyer may either 1) cancel the Contract, 2) bring an action for specific performance, or 3) bring an action for actual damages, excluding incidental, consequential or punitive damages.

f. If either party cancels this Contract as authorized hereunder, neither party shall have any further obligations to the other under the Contract. In the event of a Pre-Closing Default, Buyer shall have no further right, title or interest in or to the Property and shall not record any lis pendens or other instrument.

10. RESOLUTION OF DISPUTES. BUYER AGREES ALL CLAIMS OR DISPUTES BETWEEN BUYER, SELLER, AND/OR CONTRACTOR, HOWEVER BASED, SHALL BE DETERMINED BY THE DISPUTE RESOLUTION PROCEDURES SET FORTH IN THE ATTACHED DISPUTE RESOLUTION ADDENDUM. BUYER ACKNOWLEDGES THAT IN AGREEING TO RESOLVE DISPUTES AS PROVIDED UNDER THE DISPUTE RESOLUTION ADDENDUM, HE/SHE IS WAIVING THE RIGHT TO A TRIAL BY JURY, AND FURTHER AGREES THAT HE/SHE WILL (I) NOT PARTICIPATE IN A CLASS OR MULTI-PARTY ACTION, (II) NOT SEEK REMEDIES BEYOND THOSE CONTAINED IN THE CONTRACT, (III) ONLY SEEK “INDIVIDUALIZED RELIEF” (E.G., AFFECTING ONLY SELLER/CONTRACTOR AND BUYER ALONE, AND NOT ANY THIRD PARTIES), AND (IV) NOT ACT AS A PRIVATE ATTORNEY GENERAL OR ON BEHALF OF THE GENERAL PUBLIC. BUYER SHOULD READ THE DISPUTE RESOLUTION ADDENDUM CAREFULLY AND SEEK LEGAL ADVICE IF BUYER HAS ANY QUESTIONS.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

11. BUYER COVENANTS AND ACKNOWLEDGMENTS. Buyer understands, acknowledges and agrees that:

a. Buyer’s Covenants. Buyer covenants that he/she will (i) act in good faith in connection with this Contract; (ii) reasonably cooperate with Seller or Seller’s contractors and/or agents in performing this

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Contract; (iii) not obstruct or threaten to obstruct Seller’s performance hereunder or Seller’s business, or otherwise engage in unreasonable conduct that may be detrimental to Seller, Seller’s business, or Seller’s agents, employees, contractors or representatives; (iv) not engage in any acts that may jeopardize the safety of persons or the value of the Property; or (v) not commence or cause to be commenced construction of any improvements on the Property (e.g. landscape, pool, window coverings, etc.) prior to Construction Completion. Seller shall not be liable to Buyer for any resulting costs, expenses, liabilities, losses or damages of any kind incurred by Buyer. Buyer’s breach of this covenant shall be an uncurable default.

b. Receipt of Documents. Buyer acknowledges and agrees that before Buyer signed this Contract, Buyer received and had an opportunity to review the “Community Documents”:

(i) HOA Documents (CC&Rs, Articles, Rules, Design Guidelines); (ii) Disclosures (e.g., Disclosure Reports); (iii) Warranty Manual; (iv) License Agreement; (v) Memorandum of Agreement.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

c. Construction Completion will occur post-Closing and Buyer shall not occupy the Property until Construction Completion.

d. Only Contractor shall be permitted to perform construction of a home on the Property prior to Construction Completion, and only the Seller’s Plan No. 4035, Name Residence 3, may be constructed on the Property.

e. Buyer is not acquiring any rights or title to the Plans.

f. The location of utility improvements (e.g. lines, junction boxes, transformers, pedestals, sewer taps, etc.) may vary from locations shown on plot plans, and Seller shall not be obligated to relocate.

g. THE PROPERTY HAS BEEN OR WILL BE CAUSED BY SELLER TO BE GRADED TO DRAIN IN SUBSTANTIAL ACCORDANCE WITH THE PLANS. FUTURE CONSTRUCTION ON THE PROPERTY BY BUYER (E.G., POOLS, SPAS, LANDSCAPING, WALLS, WALKWAYS, ETC.) MAY DISRUPT THE DRAINAGE AND CAUSE FLOODING, EXCESSIVE SETTLEMENT/HEAVING, AND OTHER PROBLEMS WITH THE HOME OR OTHER PROPERTIES, INCLUDING FOUNDATION MOVEMENT AND CRACKING OF SURFACES AND STICKING OF DOORS/WINDOWS. ANY SUBSEQUENT CHANGES IN GRADE OR SOILS CONDITION, AND ANY DAMAGES OR LOSS AS A RESULT, SHALL BE BUYER’S SOLE RESPONSIBILITY.BUYER RELEASES SELLER, ITS AFFILIATES, CONTRACTORS, AGENTS AND EMPLOYEES FROM ALL LIABILITY AND/OR DAMAGES RELATED TO SUCH CHANGES.

h. Fences are not intended to demark Property lines and may encroach on either side of the actual Property line. Seller, its affiliates and its contractor shall not be responsible or liable in the event the fence is not on the Property line.

i. VIEWS NOT GUARANTEED. ALTHOUGH CERTAIN PROPERTY AT ANY POINT IN TIME MAY HAVE PARTICULAR VIEWS, SELLER MAKES NO REPRESENTATION OR WARRANTY WHATSOEVER CONCERNING THE VIEW WHICH ANY PROPERTY MAY HAVE NOW OR IN THE FUTURE. PAYMENT OF ANY PREMIUM FOR A PROPERTY DOES NOT CONSTITUTE A GUARANTEE OF ANY VIEW PROPERTY MAY HAVE NOW OR IN THE FUTURE.

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ANY VIEW WHICH EXISTS AT ANY POINT IN TIME FOR A PROPERTY MAY BE IMPAIRED OR OBSTRUCTED BY THINGS WITHIN OR OUTSIDE THE SUBDIVISION, INCLUDING, WITHOUT LIMITATION, HOMES, IMPROVEMENTS, LANDSCAPING, CONSTRUCTION AND/OR DEVELOPMENT OR BY THE GROWTH OR ELIMINATION OF VEGETATION.

By initialing below, Buyer acknowledges a complete understanding and acceptance of the above Paragraph 11.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

12. SUBROGATION OF INSURANCE CLAIMS. Buyer agrees that any time it or any subsequent purchaser of the Property makes an insurance claim for items that are or may be covered by warranty, Buyer or such subsequent purchaser must notify their insurance company in writing that an on-site inspection with Seller’s representative must be made PRIOR to commencement of the insurance funded repairs. Failure to provide such notification to the insurer or the insurer’s failure to allow a timely onsite inspection by Seller’s representative shall serve to bar and prohibit Buyer, subsequent purchasers and their respective insurance companies from subrogation of the insurance claim against Seller and Seller shall have no responsibilities whatsoever pertaining to the items subject to the insurance claim.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

13. MISCELLANEOUS.

a. Seller makes the following disclosure in accordance with AAC R4-28-803:

BUYER IS ADVISED THAT EARNEST MONEY DEPOSITS, DOWN PAYMENTS AND OTHER ADVANCED MONEY WILL NOT BE PLACED IN A NEUTRAL ESCROW. SUCH MONIES WILL BE PAID DIRECTLY TO SELLER AND MAY BE USED BY SELLER. THIS MEANS BUYER ASSUMES A RISK OF LOSING SUCH MONIES IF SELLER IS UNABLE OR UNWILLING TO PERFORM UNDER THE TERMS OF THE CONTRACT.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

b. NOTIFICATION; RIGHT TO FILE COMPLAINT WITH REGISTRAR OF CONTRACTORS. UNDER ARIZONA REVISED STATUTES § 32-1155, A BUYER OF A DWELLING HAS THE RIGHT TO FILE A WRITTEN COMPLAINT AGAINST THE HOMEBUILDER WITH THE ARIZONA REGISTRAR OF CONTRACTORS, WWW.AZROC.GOV OR (602) 542-1525, WITHIN TWO YEARS AFTER THE CLOSE OF ESCROW OR ACTUAL OCCUPANCY, WHICHEVER OCCURS FIRST, FOR THE COMMISSION OF AN ACT IN VIOLATION OF ARIZONA REVISED STATUTES § 32-1154, SUBSECTION A.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

c. BROKER/LICENSE. Buyer hereby acknowledges that Shea Homes Marketing Company, a Delaware limited liability company is the holder of an Arizona Real Estate Broker’s License and acts as Seller’s “Broker”. Buyer further acknowledges that Seller, and certain officers and employees of Seller may have real estate licenses issued by the State of Arizona. Buyer is aware that on-site Sales Associates represent Seller and not Buyer. Unless Buyer has designated a broker or agent on Seller’s Broker Registration Form, Buyer represents and warrants to Seller that all negotiations relative to this transaction have been carried on exclusively between Buyer and Seller through Broker, and Buyer represents and warrants that it has not dealt with any other agents, brokers, salespersons, finders or person of any kind who will, might or may make a claim for a commission or finder’s fee in connection with this transaction. Buyer shall indemnify and hold Seller and its affiliates harmless

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from and against any and all liability, claims, losses, damages, and expenses, including attorneys’ fees sustained or incurred by Seller or its affiliates resulting from the actions of Buyer or Buyer’s agents. This paragraph shall survive the Closing. No commissions shall be paid by Seller whatsoever if Closing does not occur.

d. Insulation will be installed in the Home as follows

Location Type R-value Thickness Ceilings Blown-In Cellulose R-30 10.2" Exterior Walls with 2x4 Framing Blown-In Cellulose R-14 3 1/2" Total Wall System with 2x4 Framing R-19 Exterior Walls with 2x6 Framing Blown-In Cellulose R-20 5 1/2" Total Wall System with 2x6 Framing R-25 Exterior Walls with 2x8 Framing Blown-In Cellulose R-25 7" Total Wall System with 2x8 Framing R-29

This information is based on manufacturer and/or installer representations, and is provided as required by the Federal Trade Commission. Buyer acknowledges that actual R-value and thickness may vary in certain areas of the Home due to design constraints.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

e. TIME IS OF THE ESSENCE UNDER THIS CONTRACT.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

f. If this Contract is signed by more than one person as Buyer, each person shall be jointly and severally liable. Paragraph headings are for convenience only and shall not limit or expand the interpretation of the provisions of this Contract. The Community Documents, Included Features List, and Addenda referred to herein are incorporated in the Contract by reference and hereby made a part of this Contract.

g. Notwithstanding Seller’s signing this Contract or receiving any Deposits, the obligations of Seller hereunder are subject to the prior sale of the Property (actual or reasonably believed by Seller). In any such event, the parties have no further obligations and amounts paid hereunder by Buyer shall be refunded.

h. Buyer agrees to sign any and all instruments and documents and perform any and all acts reasonably requested by Seller in order to complete this transaction, including but not limited to disclosure documents.

i. No waiver shall be binding unless agreed upon in writing by the party making the waiver. Unless otherwise stated herein, failure to enforce any right shall not be deemed a waiver. A singular waiver shall not be considered as a continuing waiver.

j. Any notice given pursuant to or in connection with this Contract shall be deemed received upon hand delivery, confirmation of email receipt, or three (3) days after the posting thereof, postage prepaid, in the U.S. mail, addressed to the party at the address specified in this Contract or such other address as may have been furnished in writing by a party to the other party.

k. Buyer may not assign, transfer or attempt to assign any interest in this Contract or the Property, or market, advertise or otherwise offer the Property for sale or lease prior to the completion of the Home. Any

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attempt to do so shall constitute a default. Subject to the preceding sentence, this Contract will be binding upon Buyer and Seller, their heirs, personal representatives, successors and assigns.

l. The invalidity or unenforceability of any particular provision of this Contract will not affect the other provisions, and this Contract will be interpreted in all respects as if such unenforceable provisions were omitted.

m. The terms and conditions contained in this Contract shall be kept confidential by Buyer and shall survive the Closing.

14. ENTIRE AGREEMENT. When accepted by Seller’s authorized representative, this Contract constitutes the sole and complete agreement between Seller and Buyer regarding the purchase and sale of the Property. Buyer agrees there are no other understandings, promises, representations, or agreements, oral or written, by Seller or its sales associates pertaining to the purchase and sale of the Property or any land adjacent to or near the Property other than those contained in writing in this Contract. Buyer acknowledges that no sales associate, employee, or other agent of Seller, other than Seller’s authorized representative, has the authority to modify the terms of this Contract or to make any agreements, representations or promises contrary to or inconsistent with the Contract on behalf of Seller. The terms of this Contract may be changed only by a written Addendum to this Contract signed by Buyer and Seller’s authorized representative. Any prior agreements, oral or written, are superseded by this Contract.TO THE EXTENT BUYER IS RELYING ON ANY REPRESENTATIONS OR AGREEMENTS, ORAL OR OTHERWISE, NOT CONTAINED IN THIS CONTRACT, ITS ADDENDA, OR OTHER DOCUMENTS INCORPORATED HEREIN BY REFERENCE (E.G. REPRESENTATIONS MADE BY SALES ASSOCIATES, IN ADVERTISEMENTS, ETC.), BUYER SHALL NOTE THEM BELOW IN THE SPACE PROVIDED. IF THERE ARE NONE, BUYER SHALL SO INDICATE BY WRITING THE WORD “None”. dl.contractnone.4 None dl.contractnote.4 dl.contractnone.5 None dl.contractnote.5

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

BUYER ACKNOWLEDGES HAVING READ OR HAVING BEEN PROVIDED ADEQUATE OPPORTUNITY TO READ THIS CONTRACT AND ITS ASSOCIATED DISCLOSURES, UNDERSTANDS THEIR RESPECTIVE CONTENTS AND EFFECT, AND WAS ADVISED TO AND HAD THE ABILITY TO SEEK COUNSEL PRIOR TO SIGNING BELOW.

THE DEVELOPER SHALL GIVE A PROSPECTIVE PURCHASER A COPY OF THE PUBLIC REPORT AND AN OPPORTUNITY TO READ AND REVIEW IT BEFORE THE PROSPECTIVE PURCHASER SIGNS THIS DOCUMENT.

BUYER:

Degler Davies dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST (Printed Name) (Signature) (Date) Current Address: 4922 East Calle Del Norte, Phoenix, AZ, 85018 Phone(s): Mobile: 602-510-0801 Email Address: [email redacted]

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Christy Davies dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST (Printed Name) (Signature) (Date) Current Address: 4922 East Calle Del Norte, Phoenix, AZ, 85018 Phone(s): Mobile: 480-390-2949 Email Address: [email redacted]

(Printed Name) (Signature) (Date) Current Address: Phone(s): Email Address:

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

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CONTRACTOR: (Agreeing to terms of Paragraph BROKER: (Signing solely to confirm that it 10): represents Seller exclusively as Seller’s broker and does not represent Buyer): SHAZ GC, INC., a Delaware corporation Shea Homes Marketing Company, a Delaware limited liability company By: dl.signhere.13 By: dl.signhere.14 Name: dl.fullname.13 Ken Peterson Its Authorized Agent Name: dl.fullname.14 Carly Harlacher Authorized Agent/Branch Manager Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST By: dl.signhere.14

Name: dl.fullname.14 Carly Harlacher Its Authorized Agent

Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Arizona Contractor’s License No. ROC327019

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ADDENDUM A - FINANCE [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

This “Addendum” is an addendum to the “Contract” between Buyer and Seller and modifies and/or supplements the Contract as set forth below. All capitalized terms not defined in this Addendum have the same meanings as used in the Contract.

Buyer shall pay the Purchase Price and any Amount Due Post Closing with a “Loan” pursuant to the terms of this Addendum and utilizing the “Lender” identified below.

National Bank of Arizona Greg Geis [number redacted] Lender Contact Phone Number 6001 N. 24th Street Phoenix AZ 85016 Address, City, State, ZIP Code

1. Financing. Buyer is NOT required to use any Seller referred lender as Buyer’s lender. Buyer may select any lending institution for the purpose of securing mortgage financing and is NOT in any way whatsoever limited to financing with those referred by Seller.

a. Loan Type. Buyer shall secure a “one-time close” Loan from Lender subject to the terms of this Addendum. A “one time close” Loan aka construction to permanent loan, provides for construction financing during the construction of the Home, provides for progress payment, and automatically switches to permanent financing upon Construction Completion.

b. Loan Covenants. The Loan shall contain a covenant(s) reasonably acceptable to Seller guaranteeing the completion of construction of the Home.

c. Seller Memorandum; Subordination. As part of the Closing process, Seller will record a Memorandum of Agreement outlining certain Buyer obligations under the Contract. In such an event, Seller will accommodate reasonable subordination requests from Lender.

2. Buyer Duties.

a. If not completed prior to the Effective Date, Buyer shall make “Loan Application” to Lender concurrent with Buyer’s signing of the Contract b. Buyer authorizes Seller and its agents to communicate directly with Lender for purposes of determining Buyer’s ability perform under the Contract and to facilitate the “Draw Payments” outlined below. Buyer authorizes Lender and Seller to exchange all information required for such purposes. c. Buyer shall use Buyer’s best efforts to obtain the Loan. Buyer shall: (i) not take any action that prevents Loan approval; (ii) not fail to furnish all information required by Lender within 48 hours after such request is made; (iii) not fail to truthfully and diligently compile, prepare, sign and complete all documents which any Lender may request; (iv) not fail to promptly sign all documents or take all actions necessary for the timely funding of the Loan and any Draw Payments; (vi) not make any misrepresentations or defaults concerning the Loan under this Contract; (vii) not change Lender or type of Loan without Seller’s prior written approval, which may be withheld in Seller’s sole discretion and (vii) shall make all payments due to Lender prior to Construction Completion in strict accordance with the terms of their Loan documents.

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d. Risk of Loss Insurance. Following Closing, Buyer shall bear the risk of loss to the Property or Home. Buyer shall procure, at Buyer’s cost, course of construction insurance reasonably acceptable to Seller naming Buyer, Seller and Contractor as insureds with effective coverage between Closing and Completion of Construction, policy limits equal to the Balance Due Post Closing, deductible or self-insured retention less than $15,000.00, and waiver of subrogation amongst the insureds.

e. Buyer’s failure to comply with this section shall constitute a default under the Contract 3. Seller Duties. a. Seller shall submit all information reasonably requested by Lender. b. Seller shall timely submit “Draw Requests”. c. Provided Buyer is not in default, Seller shall cause Contractor to timely complete construction of the Home. 4. Draw Payments. The Amount Due Post Closing shall be paid by “Draw Payments” from the Loan. “Draw Payments” are releases of portions of loan proceeds occurring upon completion of a particular stage of construction, e.g. pouring of foundation, framing, rough electrical, etc. a. Draw Request. Seller shall cause to be delivered to Lender “Draw Requests”, on a form reasonably acceptable to Seller and Lender, outlining the amount and basis for payment pursuant to a “Draw Schedule”. Draw Requests may include Additional Deposits. b. Payment Timeframe. Buyer shall cause Lender to make all Draw Payments within 5 business days of receiving a Draw Request. Lender’s receipt of a Draw Request signifies Seller’s representation that all amounts due and payable related to the work covered by the Draw Request have been paid or will be paid from funds received from the Draw Request. Upon payment of the Draw Request, title to all work and materials covered by the Draw Request shall be transferred to Buyer. c. Payment Failure. Failure to make Draw Payments within 5 days of receipt shall constitute a Buyer default. Thereafter, in addition to any other remedies afforded Seller, Buyer shall pay a “Late Fee” of $1,000.00 and the amount past due shall accrue interest at a rate of 1.5% per month. 5. Appraisal. Buyer expressly acknowledges that Buyer’s obligations are NOT contingent on the Property appraising for an amount at least equal to the Purchase Price. Buyer acknowledges Seller has no obligation to adjust the Purchase Price or otherwise compensate Buyer if the appraised value of the Property does not equal or exceed the Purchase Price. Lender may require Buyer to provide additional funds to cover the difference between the Purchase Price and any appraised value that is less than the Purchase Price. 6. Title Company and Escrow Agent.

a. Escrow Agent. Buyer understands it may use any title company and escrow agent of its choosing. Seller and Buyer hereby agree to employ First American Title-Phx (“Title Company”) and Bev Mcleer as “Escrow Agent”).

b. Parties’ Cooperation. Seller and Buyer shall perform all acts reasonably required by Escrow Agent to Close Escrow and to enable the issuance of a title insurance policy, including signing additional escrow instructions to the extent not inconsistent with the Contract.

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BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST

Buyer Signature Date

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

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ADDENDUM C – DISPUTE RESOLUTION - ARBITRATION [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

This “Addendum” is an addendum to the “Contract” dated December 8, 2020, between Buyer and Seller for the Property. This Addendum shall modify and/or supplement the Contract as set forth below. All capitalized terms shall have the same meaning as in the Contract unless defined herein.

ANY CLAIM, DISPUTE OR CONTROVERSY THAT MAY ARISE BETWEEN BUYER AND SELLER OR CONTRACTOR SHALL BE RESOLVED BY BINDING ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT AND AS SET FORTH HEREIN. AS TO ALL SUCH CLAIMS, DISPUTES OR CONTROVERSIES, THE PARTIES SPECIFICALLY WAIVE THEIR RIGHT TO SEEK REMEDIES IN COURT AND SPECIFICALLY WAIVE THE RIGHT TO A JURY TRIAL. ARBITRATION DOES NOT APPLY TO CLAIMS, DISPUTES OR CONTROVERSIES RELATED TO OR CONCERNING PERSONAL INJURIES (I.E., ARBITRATION SHALL NOT BE REQUIRED AND THE PARTIES SHALL NOT BE DEEMED TO HAVE WAIVED THE RIGHT TO SEEK REMEDIES IN COURT OR THE RIGHT TO A JURY TRIAL). THE PARTIES AGREE TO (i) WAIVE THE RIGHT TO A TRIAL BY JURY, (ii) NOT PARTICIPATE IN A CLASS OR MULTI-PARTY ACTION, (iii) NOT SEEK REMEDIES BEYOND THOSE CONTAINED IN THE CONTRACT, (iv) ONLY SEEK “INDIVIDUALIZED RELIEF” (E.G., AFFECTING ONLY SELLER/CONTRACTOR AND BUYER ALONE, AND NOT ANY THIRD PARTIES), (v) NOT ACT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED OR DE FACTO CLASS OR REPRESENTATIVE PROCEEDING, AND (vi) NOT ACT AS A PRIVATE ATTORNEY GENERAL OR ON BEHALF OF THE GENERAL PUBLIC. EXCEPT FOR MATTERS RELATING TO THE ARBITRABILITY OR TO THE SCOPE OR ENFORCEABILITY OF THE ARBITRATION PROVISION OR THE LIMITATIONS ON CLASS, REPRESENTATIVE, MULTI-PARTY, PRIVATE ATTORNEY GENERAL AND OTHER NON-INDIVIDUALIZED RELIEF, ALL ISSUES ARE FOR THE ARBITRATOR TO DECIDE. THE PARTIES AGREE THIS CONTRACT INVOLVES INTERSTATE COMMERCE.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

(A) NOTICE AND OPPORTUNITY TO REPAIR.

AT LEAST NINETY (90) DAYS BEFORE BRINGING OR INITIATING AN ARBITRATION ACTION, OR ACTION IN COURT, RELATING TO A CLAIM, DISPUTE OR CONTROVERSY BETWEEN THE PARTIES, BUYER MUST GIVE WRITTEN NOTICE TO SELLER, SPECIFYING IN REASONABLE DETAIL THE NATURE OF THE DISPUTE AND THE BASIS OF THE ACTION UNLESS THE PARTIES AGREE OTHERWISE. “REASONABLE DETAIL” INCLUDES A DETAILED AND ITEMIZED LIST THAT DESCRIBES EACH ALLEGED CLAIM OR DEFECT. FOR CONSTRUCTION DEFECT CLAIMS, BUYER SHALL DESCRIBE THE LOCATION THAT EACH ALLEGED DEFECT HAS BEEN OBSERVED.

AFTER RECEIPT OF THE NOTICE DESCRIBED ABOVE, THE SELLER MAY INSPECT THE HOME, WHERE APPLICABLE, TO DETERMINE THE NATURE AND CAUSE OF THE ALLEGED DEFECTS AND THE NATURE AND EXTENT OF ANY REPAIRS OR REPLACEMENTS NECESSARY TO REMEDY THE ALLEGED DEFECTS. THE BUYER SHALL ENSURE THAT THE HOME IS MADE AVAILABLE FOR INSPECTION NO LATER THAN TEN (10) DAYS AFTER THE BUYER RECEIVES THE SELLER'S REQUEST FOR AN INSPECTION.

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

WITHIN SIXTY (60) DAYS AFTER RECEIPT OF THE NOTICE DESCRIBED ABOVE, THE SELLER SHALL SEND TO THE BUYER A GOOD FAITH WRITTEN RESPONSE TO THE BUYER'S NOTICE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE RESPONSE MAY INCLUDE AN OFFER TO REPAIR OR REPLACE ANY ALLEGED DEFECTS, TO HAVE THE ALLEGED DEFECTS REPAIRED OR REPLACED AT THE SELLER'S EXPENSE, OR TO PROVIDE MONETARY COMPENSATION TO THE BUYER (“INITIAL OFFER”). THE OFFER SHALL DESCRIBE IN REASONABLE DETAIL ALL REPAIRS OR REPLACEMENTS THAT THE SELLER IS OFFERING TO MAKE OR PROVIDE TO THE HOME.

IF THE SELLER DOES NOT PROVIDE A WRITTEN RESPONSE TO THE BUYER'S NOTICE WITHIN SIXTY (60) DAYS, THE BUYER MAY INITIATE ARBITRATION WITHOUT WAITING FOR THE EXPIRATION OF NINETY (90) DAYS AS REQUIRED ABOVE IN THIS SECTION.

WITHIN TWENTY (20) DAYS AFTER RECEIPT OF THE SELLER'S INITIAL OFFER, THE BUYER SHALL PROVIDE A GOOD FAITH WRITTEN RESPONSE. A BUYER WHO ACCEPTS THE SELLER'S INITIAL OFFER SHALL DO SO IN WRITING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. A BUYER WHO REJECTS THE SELLER'S INITIAL OFFER SHALL RESPOND TO THE SELLER IN WRITING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE RESPONSE SHALL INCLUDE THE SPECIFIC FACTUAL BASIS FOR THE BUYER'S REJECTION OF THE SELLER'S OFFER AND THE BUYER'S COUNTEROFFER, IF ANY. WITHIN TEN (10) DAYS AFTER RECEIPT OF THE BUYER'S RESPONSE, THE SELLER MAY MAKE A BEST AND FINAL OFFER TO THE BUYER IN WRITING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED.

IF BUYER REJECTS SELLER’S BEST AND FINAL OFFER, IT MUST DO SO IN WRITING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. UPON REJECTION OF THE BEST AND FINAL OFFER, BUYER MAY INITIATE ARBITRATION.

BUYER’S STRICT COMPLIANCE WITH THE FOREGOING SECTIONS OF THIS PARAGRAPH TOLLS APPLICABLE STATUTE OF LIMITATIONS AND REPOSE, INCLUDING A.R.S. § 12-552, UNTIL THE EARLIER OF NINETY (90) DAYS AFTER THE SELLER RECEIVES BUYER’S NOTICE, SELLER FAILS TO MAKE AN INITIAL OFFER WITHIN SIXTY 60 DAYS OF BUYER’S NOTICE, OR WHEN SELLER MAKES ITS BEST AND FINAL OFFER.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

(B) MEDIATION.

IN AN ATTEMPT TO CONSERVE COSTS AND AS A CONDITION PRECEDENT TO ARBITRATION, OR ANY OTHER ACTION IN COURT, THE CLAIM, DISPUTE OR CONTROVERSY SHALL FIRST BE MEDIATED IN PRIVATE MEDIATION, UNLESS THE PARTIES MUTUALLY AGREE OTHERWISE. THE PARTIES SHALL EQUALLY SHARE THE COSTS OF MEDIATION.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

1. IF ANY CLAIM, DISPUTE OR CONTROVERSY ARISING OUT OF THIS AGREEMENT CANNOT BE RESOLVED BY MEDIATION AS PROVIDED FOR IN SECTION (B), ABOVE, OR IF BOTH PARTIES MUTALLY AGREE THAT MEDIATION IS NOT NECESSARY, ARBITRATION

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

MAY BE INITIATED BY EITHER PARTY SENDING A WRITTEN DEMAND FOR ARBITRATION TO THE OTHER PARTY WITHIN A REASONABLE TIME PERIOD, SUBJECT TO THE REQUIREMENTS FOR CONSTRUCTION DISPUTES SET FORTH IN SECTION (A), WHERE APPLICABLE. IN NO EVENT SHALL THE DEMAND FOR ARBITRATION/MEDIATION BE MADE AFTER THE DATE WHEN INSTITUTION OF LEGAL OR EQUITABLE PROCEEDINGS BASED ON SUCH CLAIM, DISPUTE OR CONTROVERSY WOULD BE BARRED BY THE APPLICABLE STATUTE OF LIMITATIONS OR REPOSE. THE DEMAND FOR ARBITRATION MUST SUFFICIENTLY OUTLINE THE NATURE OF THE DISPUTE AND THE REMEDY SOUGHT. ANY ARBITRATION UNDER THIS CONTRACT SHALL BE PURSUANT TO THE FEDERAL ARBITRATION ACT (CURRENTLY TITLE 9 OF THE UNITED STATES CODE). UNLESS THE PARTIES AGREE OTHERWISE, THE FOLLOWING PROCEDURES SHALL APPLY TO THE SELECTION OF ARBITRATORS: WITHIN FIFTEEN (15) DAYS FOLLOWING RECEIPT OF A WRITTEN DEMAND FOR ARBITRATION, THE PARTIES SHALL EXCHANGE A LIST OF SEVEN (7) POTENTIAL ARBITRATORS, EACH OF WHOM SHALL BE A CURRENT MEMBER IN GOOD STANDING OF THE STATE BAR OF ARIZONA. WITHIN FIFTEEN (15) DAYS FOLLOWING SUCH EXCHANGE, THE PARTIES SHALL MUTUALLY SELECT THE ARBITRATOR(S) FROM THE LIST OF POTENTIAL ARBITRATORS, WHICH ARBITRATOR SHALL BE DEEMED APPROVED BY BOTH PARTIES UNLESS A CONFLICT IS FOUND TO EXIST. IF THE PARTIES ARE UNABLE TO AGREE ON AN ARBITRATOR AFTER ENGAGING IN A GOOD FAITH ATTEMPT TO DO SO, THE PARTIES SHALL SUBMIT THE MATTER TO AAA WHO WILL THEN APPOINT AN ARBITRATOR(S) TO CONDUCT THE ARBITRATION UNDER THE TERMS OF THIS AGREEMENT.

2. THE PARTIES AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN THEIR INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. THE PARTIES AGREE NOT TO ACT AS A PRIVATE ATTORNEY GENERAL OR ON BEHALF OF THE GENERAL PUBLIC. FURTHER, UNLESS BOTH PARTIES AGREE OTHERWISE, THE ARBITRATOR MAY NOT CONSOLIDATE MORE THAN ONE PERSON'S CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING. IF THIS SUBSECTION (2) IS FOUND TO BE UNENFORCEABLE BY A COURT OF COMPETANT JURISDICTION, THEN THE ENTIRETY OF SECTIONS (C) AND (E) SHALL BE STRIKEN AND ALL OTHER PROVISIONS SHALL REMAIN IN EFFECT.

3. THE ARBITRATOR SHALL APPLY THE SUBSTANTIVE LAWS OF THE STATE OF ARIZONA AND SHALL INCLUDE FINDINGS OF FACT AND CONCLUSIONS OF LAW IN HIS OR HER RULING. THE ARBITRATOR SHALL NOT BE PERMITTED TO AWARD DAMAGES EXCEEDING THOSE EXPRESSLY CONTEMPLATED IN THE CONTRACT. THE PARTIES AGREE THAT THE ARBITRATION, ANY AWARD AND/OR SUBSEQUENT JUDGMENT SHALL BE KEPT CONFIDENTIAL BY THE PARTIES AND THEIR COUNSEL. THE PARTIES SHALL EQUALLY SHARE THE ARBITRATOR’S EXPENSES AND FEES REGARDLESS OF WHICH PARTY PREVAILS. THE PARTIES AGREE TO BEAR THEIR OWN ATTORNEYS’ FEES AND EXPERT COSTS REGARDLESS OF WHICH PARTY PREVAILS.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

(D) EACH PARTY SHALL BEAR THE EXPENSE OF THEIR RESPECTIVE ATTORNEYS’ FEES AND COSTS INCURRED RELATED TO ANY MEDIATION, ARBITRATION OR COURT ACTION REGARDLESS OF WHICH PARTY PREVAILS IN SUCH MEDIATION, ARBITRATION OR COURT ACTION.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

(E) THE ARBITRATOR(S) SHALL 1) NOT HAVE THE AUTHORITY TO MODIFY, ALTER, AMEND, OR REFORM THIS AGREEMENT; 2) NOT HAVE THE AUTHORITY TO DISREGARD OR REFUSE TO APPLY APPLICABLE LAW; 3) NOT EXCEED OR INCREASE THE SCOPE OF THEIR AUTHORITY OUTLINED HEREIN; 4) CONDUCT THE ARBITRATION IN COMPLIANCE WITH THE FEDERAL ARBITRATION ACT, TITLE 9 OF THE UNITED STATES CODE.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

(F) ALL OF THE FOREGOING PROVISIONS SHALL SURVIVE THE CLOSING.

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

The Contract, as modified and supplemented by this Addendum, is hereby ratified and shall continue in full force and effect.

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

CONTRACTOR: BROKER:

SHAZ GC, INC., Shea Homes Marketing Company, a Delaware corporation a Delaware limited liability company

By: dl.signhere.13 By: dl.signhere.14

Name: dl.fullname.13 Ken Peterson Name: dl.fullname.14 Carly Harlacher Its Authorized Agent Authorized Agent/Branch Manager

Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

By: dl.signhere.14

Name: dl.fullname.14 Carly Harlacher Its Authorized Agent

Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Arizona Contractor’s License No. ROC327019

Addendum C – Dispute Resolution – Arbitration

Rev. 6-22-20 Arizona DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

INCENTIVE/ALLOWANCE ADDENDUM [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

Incentive/Allowance Addendum Date: December 8, 2020

This “Addendum” is an addendum to the “Contract” dated December 8, 2020, between Buyer and Seller for the Property. This Addendum shall modify and/or supplement the Contract as set forth below and supersedes all prior Incentive Addendums. All capitalized terms shall have the same meaning as in the Contract unless defined herein.

INCENTIVES Buyer and Seller agree that Seller may contribute certain “Incentives” as outlined below:

Home Price: $50,000.00 General - $50,000.00 This Incentive shall reduce the Purchase Price by $50,000.00.

The Contract, as modified and supplemented by this Addendum, is hereby ratified and shall continue in full force and effect.

Addendum – Incentive/Allowance Page 1 Rev. 8-31-18 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent BROKER: (Signing solely to confirm that it represents Seller exclusively as Seller’s broker and does not represent Buyer):

Shea Homes Marketing Company, a Delaware limited liability company

By: dl.signhere.14

Name: dl.fullname.14 Carly Harlacher Authorized Agent/Branch Manager

Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Addendum – Incentive/Allowance Page 2 Rev. 8-31-18 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

GENERAL ADDENDUM [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

Addendum # 1 This “Addendum” is an addendum to the “Contract” dated December 8, 2020, between Buyer and Seller for the Property. This Addendum shall modify and/or supplement the Contract as set forth below. All capitalized terms shall have the same meaning as in the Contract unless defined herein.

All references in the Warranty relating to Closing or Close of Escrow shall be replaced with Construction Completion.

[Signatures Follow]

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

Addendum – General

Rev. 11-15-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

Addendum – General

Rev. 11-15-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

CONSENT REGARDING ELECTRONIC FORMAT [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

This “Consent” is with regard to the “Contract” dated December 8, 2020, between Buyer and Seller for the Property. All capitalized terms shall have the same meaning as in the Contract unless defined herein.

Buyer has the option of receiving Community Documents and other documents relating to the Contract via electronic methods or in paper format. Buyer elects to receive Community Documents and other documents relating to the Contract in electronic format.

By signing below, Buyer signifies a complete understanding and acceptance of this Consent.

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

Consent to Electronic Format

Rev. 1-13-16 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

PROPERTY ACCESS AGREEMENT [number redacted]

Degler Davies, Christy Davies (collectively “Buyer”) and Shea Homes Arizona Limited Partnership, an Arizona limited partnership (“Seller”) are parties to that certain Purchase Contract, Receipt and Joint Escrow Instructions (“Contract”) to purchase the property located at 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017.. Buyer desires to visit the property referenced above or others owned or occupied by Seller or any of its affiliates, contractors, or brokers (“Property”) during the course of construction of the Home. In exchange for Buyer’s promises below, Seller will accommodate Buyer’s desire. All capitalized terms not specifically defined herein shall have the same meaning as in the Contract. Seller discloses and Buyer understands, acknowledges and agrees that construction sites, such as the Property, are inherently dangerous and hazardous and may cause serious bodily injury, illness or death. Risks include, but are not limited to, falling objects, electrical hazards, unprotected openings, uneven surfaces, fall hazards, dust, noise, hazardous substances, construction debris including sharp objects, and construction vehicles and other heavy machinery slips, trips, and falls, and exposure to infectious diseases, including but not limited to COVID-19. Buyer desires to visit the Property and its nearby areas during the course of construction of the Home with full knowledge of the risks. In exchange for Buyer’s agreement below, and as material consideration for Seller granting Buyer a revocable, non-exclusive license to access the Property, Buyer hereby agrees to the following: 1. Buyer agrees to only enter the Property after making an appointment with Seller’s representative and answering basic COVID-19 related screening questions. Appointment times may be limited or not available at all on certain days or times. After-hours access is strictly prohibited. 2. Seller reserves the right to prohibit or restrict photography on the Property. Buyer agrees to provide Seller with copies of photographs taken by Buyer upon Seller’s request. 3. Unless otherwise agreed to by Seller, Buyer understands and agrees it must be accompanied by a representative of Seller at all times when visiting the Property. Buyer acknowledges that although Buyer may be accompanied by a representative of Seller, such presence in no way ensures the safety of Buyer or Buyer’s invitees. Seller’s representative is not obligated to protect Buyer or Buyer’s invitees against any hazards or injury. 4. Buyer understands and acknowledges that visiting the Property may increase Buyer’s chances of becoming exposed to or infected with COVID-19, especially if Buyer is 65 or over or has an underlying medical condition. 5. Buyer accepts and assumes the risk of all injury and damages resulting from any construction site or Property entry, even if that injury or damage is caused by the acts, omissions or negligence of Seller or Seller contractors. 6. Buyer agrees to abide by all policies in place at the Property including but not limited to wearing proper head and foot protection, observing proper decorum, social distancing, and other COVID-19 safety and sanitary protocols, standards of behavior, etc. In the event Buyer brings guests on the Property, Buyer shall cause all such guests to abide by the terms of this Property Access Agreement and any and all such policies. 7. Buyer and each of Buyer’s guests acknowledge that he or she is entering the Property at their own risk and forever waive and relinquish all rights and claims of whatever kind, known or unknown, suspected or unsuspected, which they may have against Seller, its affiliates, its contractors or subcontractors for any personal injury or property damage sustained by Buyer or Buyer’s guests on the Property or at the construction site. 8. Buyer agrees to defend, indemnify and hold harmless Owner, Seller, and their contractors, brokers, agents, employees, sub-contractors and affiliates from any such claims, injury or damages to Buyer or any guests of Buyer arising from or related to visiting the construction site and the Property. Buyer’s defense and indemnity obligations herein shall survive the Closing or other termination of this Contract.

Property Access Agreement Page 1 of 2 Rev. 5-21-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

9. Buyer agrees not to perform or permit its guests to perform ANY construction, modifications, additions, repairs or removal of any components in the Home or on the Property.

Buyer’s failure to perform any of its obligations herein shall constitute a material default under this Agreement and the Contract and shall entitle Seller to immediately terminate both without any cure period.

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

Property Access Agreement Page 2 of 2 Rev. 5-21-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

BROKER COMMISSION AGREEMENT [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

The following constitutes the entire agreement (the “Agreement”) by and between Shea Homes Arizona Limited Partnership, an Arizona limited partnership (“Seller”) and the Broker listed below regarding a potential sales commission described below in Paragraph 1 with respect to the Buyer and the above-described Property. No other representations or acknowledgements shall be binding upon either party unless agreed to in writing by both parties. The parties agree as follows:

1) Seller shall pay to Broker a commission upon the Close of Escrow provided: a) A Contract is signed by Buyer and accepted by Seller within 60 days after the date of this Agreement, and b) Such Close of Escrow occurs within 365 days after the date of this Agreement. 2) Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker. The commission (the “Commission”) shall be as follows:  equal to __________% of the total net sales price of the Property as may be adjusted by the application of any incentives provided by Seller, Lot premiums, and Options and upgrades purchased by Buyer from Seller.  equal to a flat fee of $58,605.00.  equal to __________% of the lessor of the “Base Price” of the Property as that term is defined in the Contract between Buyer and Seller and the total net sales price of the property as may be adjusted by the application of any incentives provided by Seller, Lot premiums, and Options and upgrades purchased by Buyer from Seller. 3) No Commission shall be paid if a Contract is accepted more than 60 days after the date of this Agreement unless Broker has re-registered the Buyer. This Agreement serves as Escrow instructions to govern payment of the Commission to Broker. 4) It is an absolute condition precedent for the payment of any Commission that: a) Broker be the procuring cause for any purchase by Buyer from Seller; b) Broker, or an agent working under Broker, filled out and Seller accepted, an Agent Registration Form; c) Broker must complete, and Seller must accept, this Agreement; d) Buyer signs this Agreement; e) Seller must accept Buyer’s offer to purchase the property as evidenced by a written purchase contract. If Seller does not accept Buyer’s offer for any reason, Broker shall not be entitled to a Commission; and f) Escrow must close on the Property. If Escrow fails to close for any reason, including without limitation a Seller default, Broker shall not be entitled to any Commission. 5) Purchasers of Seller’s homes are NOT required to use Shea Mortgage for their financing as a condition for purchase. Buyer may obtain financing from any qualified lending institution. Broker has been made aware of this and acknowledges its obligation to inform Buyer thereof.

Broker Commission Agreement

Rev. 5-26-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

6) In the event Broker chooses to pay, rebate, or otherwise transfer all or any portion of its Commission to the Buyer, such payment, rebate or transfer must be done through escrow, must be reflected in the Closing Disclosure, and must comply will all applicable guidelines, rules, regulations and laws. 7) Broker represents and warrants that it is licensed as a real estate broker or salesperson in the state in which the Property is located and agrees to fully comply with all applicable laws, rules and regulations. Broker represents that it is currently active in residential real estate as its primary source of employment. 8) If the Broker is purchasing the Property for itself such that Broker is the Buyer, one of the Co-Buyers, a principal owner of the Buyer, or otherwise has any ownership interest in the legal entity comprising the Buyer, Broker shall be eligible for the Commission only if: (a) the Property will be Broker’s primary residence and Broker occupies the Property, and (b) Broker is primarily and actively employed as a residential real estate broker or salesperson. 9) Seller’s on-site agent shall be primarily responsible for gathering necessary paperwork from Buyer, however, Broker acknowledges that, if requested by Seller, Broker shall be obligated to assist and advise Buyer with respect to documentation or other information such as the Contract, loan documents and title or Escrow documentation for the closing of the transaction. Broker’s failure to assist as required above shall constitute a material default and render this Agreement null and void. 10) In the event that Buyer elects to purchase a property from Seller other than a property in the Community, Seller shall have no obligation to pay Broker a commission therewith unless a separate Agreement is established between Seller and Broker in writing, using the form hereof and Broker meets the obligations set forth therein. 11) Broker agrees to indemnify and hold harmless Seller, Seller’s parent, subsidiary and affiliate companies and Seller's employees, officers and directors (collectively, the “Affiliates”) from and against any and all claims, charges, costs, fees, obligations, damages, liabilities, expenses and attorneys’ fees incurred by Seller or the Affiliates by virtue of Broker’s actions or inactions with respect to or in connection with this Agreement or the potential transaction between Seller and Buyer, including but not limited to claims for payment by Broker’s agent(s). 12) Broker has no independent authority to bind Buyer or Seller. Broker may not advertise any of Seller’s homes in any printed form. 13) This Agreement is only in effect for the Buyer described above and may be rescinded and terminated in Buyer's sole discretion upon written notice to Seller and Broker. This Agreement shall not be effective unless it has been executed by an authorized officer of Seller. On-site sales representatives are not authorized representatives of Seller for such purposes. By signing below, Broker represents and warrants all information pertaining to Broker in this Agreement is accurate and complete.

BROKER: Please Print or Type

Buyers Agent: Robert Joffe Broker Company Name: Launch Real Estate LLC

Broker Company License #: LC662093000

Name for Commission Check: Launch Real Estate LLC Address for Commission Check: 4167 N MARSHALL WAY, SCOTTSDALE AZ 85251

Broker Commission Agreement

Rev. 5-26-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

ALL CHECKS WILL BE ISSUED AS DIRECTED TO ABOVE BROKER ONLY

dl.signhere.13 dl.datesign.13 12/12/2020 | 3:52:52 AM PST Agreed to by: Shea Homes Arizona Limited Partnership, an Arizona Date limited partnership - Authorized Signature

dl.signhere.14 dl.datesign.14 1/5/2021 | 3:31:52 PM MST Shea Homes Arizona Limited Partnership, an Arizona Date limited partnership - Authorized Signature

dl.signhere.10 dl.datesign.10 12/11/2020 | 4:56:46 PM MST REFERRAL AGENT OR BROKER – Authorized Date Signature

Broker’s representation of Buyer and Broker’s rights under this Broker Commission Agreement are acknowledged by Buyer as of the same date of Broker’s signature above.

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

Broker Commission Agreement

Rev. 5-26-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

LICENSE AGREEMENT [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

This “License Agreement” is related to the “Contract” between Buyer and Seller and supplements the Contract as set forth below. All capitalized terms not defined in this Addendum have the same meanings as used in the Contract.

This License Agreement is made on December 8, 2020, between Degler Davies, Christy Davies (collectively “Buyer”), Shea Homes Arizona Limited Partnership, an Arizona limited partnership and SHAZ GC, Inc.. In consideration of the mutual promises contained in this agreement, the parties agree as follows:

1. LICENSE. Buyer grants to Shea Homes Arizona Limited Partnership, an Arizona limited partnership, SHAZ GC, Inc. and each of their respective employees, agents, sub-tier contractors and suppliers (collectively, “Shea”) an exclusive License enter, use, improve and occupy the real property located at 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017 (the “Property”) pursuant to the terms of this License Agreement.

2. PURPOSE. The Property may be occupied and used by Shea to (i) take all steps necessary and reasonably related to the construction of Seller’s Plan No. 4035, Name: Residence 3 Elevation A and Garage R (the “Home”) on the Property in accordance with the terms of the Contract, and (ii) perform any actions reasonably related to performance of the Contract.

3. GRANT OF AUTHORITY. Buyer hereby grants SHAZ GC, Inc. authority to act on Buyer’s behalf for the purpose of acquiring any permits or other permissions necessary to construct the Home.

4. EXCLUSIVITY. During the term of this License, Shea shall have EXCLUSIVE rights to occupy and use the Property. No other parties, including Buyer, may enter the Property without the express written permission of Shea Homes Arizona Limited Partnership, an Arizona limited partnership and SHAZ GC, Inc., whose permission may withheld or conditioned in their sole discretion.

5. TERM. This License shall remain in effect until Construction Completion. Upon Construction Completion, this License shall automatically terminate.

BUYER:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST

Buyer Signature Date

Phoenician- License Agreement

Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

APPROVED AND ACCEPTED FOR SELLER:

Shea Homes Arizona Limited Partnership, an Arizona limited partnership

By: Shea Homes Limited Partnership, a California limited partnership its general partner

By: dl.signhere.13 Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

By: dl.signhere.14 Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Name dl.fullname.14 Carly Harlacher Its Authorized Agent

CONTRACTOR:

SHAZ GC, INC., a Delaware corporation

By: dl.signhere.13

Name: dl.fullname.13 Ken Peterson Its Authorized Agent

Dated: dl.datesign.13 12/12/2020 | 3:52:52 AM PST

By: dl.signhere.14

Name: dl.fullname.14 Carly Harlacher Its Authorized Agent

Dated: dl.datesign.14 1/5/2021 | 3:31:52 PM MST

Arizona Contractor’s License No. ROC327019

Phoenician- License Agreement

Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

BUSINESS RELATIONSHIP DISCLOSURE [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

Buyer is hereby notified that the Seller has a relationship with the following companies, SHEA MORTGAGE INC., SHEA FINANCIAL SERVICES, SHEA INSURANCE SERVICES DBA SHEA FINANCIAL INSURANCE SERVICES, BLUE STAR RESORT AND GOLF, AND BLUE STAR LANDSCAPE MANAGEMENT (collectively the “Shea Companies”), WESTWOOD INSURANCE AGENCY , SHASTA POOLS AND SPAS, HOMETEAM PEST DEFENSE (collectively “Others”). Shea Companies, Westwood Insurance Agency, and Others shall collectively be referred to as “Companies”.

In connection with our ongoing efforts to provide Buyers with superior service and in order to inform Buyers about certain products and services in which Buyer may be interested, the Seller may share nonpublic personal information about Buyer between and among the Companies. This may include providing Buyer with information concerning the Companies, requiring Buyer to provide information to the Companies, and providing information about Buyer, including confidential personal information, to the Companies. Buyer acknowledges that Seller and other Shea Companies may obtain certain financial benefits from the Companies by sharing Buyer information with the Companies. Unless you check the box below and initial to say “No”, we will share your nonpublic personal information with Shea Companies, Westwood, and others, whether or not your telephone numbers are listed on the Federal Do Not Call list. You may change this instruction at any time by notifying Seller at the address in Buyer’s purchase agreement for the Property.

No Except as otherwise provided in the purchase agreement, can your nonpublic dl.shareinfo.4

personal information be shared with other Shea Companies, Westwood, or others?

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

In addition, in the event Buyer chooses one of the Companies to provide services to Buyer, whether prior or after Closing, Buyer acknowledges Seller or other Shea Companies may receive a financial benefit as a result. BUYER IS NOT REQUIRED TO USE ANY OF THE COMPANIES. BUYERS HAVE A RIGHT TO SHOP AROUND FOR THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

ACKNOWLEDGMENT: I (We) have read this Disclosure and understand that as a result of referring me (us) to purchase the above-described settlement services, Seller and its principals may receive financial or other benefits, may share nonpublic personal information with the Companies they may contact me (us) whether or not my (our) telephone numbers are listed on the Federal Do Not Call list.

Business Relationship Disclosure

Rev. 11-15-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

RECEIPT ACKNOWLEDGED:

dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST Buyer Signature Date

dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST Buyer Signature Date

Buyer Signature Date

Business Relationship Disclosure

Rev. 11-15-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

MOLD DISCLOSURE [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

THE INFORMATION CONTAINED IN THIS MOLD DISCLOSURE IS INTENDED TO SUPPLEMENT THE CONTENTS OF THE CONTRACT. BUYER SHOULD CAREFULLY READ THIS DISCLOSURE AND UNDERSTAND ITS CONTENTS PRIOR TO SIGNING BELOW.

What is mold and where does it come from?

Mold is a type of fungus. It occurs naturally in the environment, and it is necessary for the natural decomposition of plant and other organic material. Mold is not a single entity. There are numerous types of mold found in our environment. Mold spreads by means of microscopic spores borne on the wind, and is found everywhere life can be supported. Residential home construction is not, and cannot be, designed to exclude mold spores from either the interior or exterior of your home. Mold spores may enter your home through open doorways, windows, and heating, ventilation, and air conditioning systems. Spores in the air outside also attach themselves to people and animals, making clothes, shoes, and pets convenient vehicles for carrying mold spores indoors.

Mold naturally occurs in our environment. In order to grow, mold spores require a food source and sufficient moisture. The food source might be supplied by decorative items found in the home, such as fabric, carpet or even wallpaper, or by building materials, such as drywall, wood and insulation, to name a few. When mold spores occur on places where there is sufficient moisture, mold will begin to grow within a period of 24 to 48 hours.

Moisture in the home comes from many sources: spills, leaks, overflows, condensation, excessive landscape watering and high humidity are common sources of home moisture. Good housekeeping and home maintenance practices are essential in the effort to prevent mold growth.

In addition, it is not uncommon for exterior surfaces to develop surface mold and fungus. This is especially true for exterior surfaces exposed to the elements, particularly when the home is near damp areas such as forests, lakes, ponds, bogs, oceans, rivers and/or streams. As a result, Buyer will likely discover mold and/or fungus on exterior surfaces of the home during ownership, including but not limited to areas under and around the eaves and fascia boards. This condition is NOT covered under the terms of your warranty.

Is Mold a Health Risk?

Since mold is found virtually everywhere in our environment, all of us are exposed to mold. Although the vast majority of molds are not known to cause health problems, some molds have the potential to cause health effects. Whether or not a person exposed to mold is at risk for adverse health conditions generally depends upon the susceptibility of the person exposed (including age, environmental factors such as stress and health factors such as existing sensitivities to allergies, underlying lung disease and suppressed immune systems), the amount of exposure and the type of mold. Experts disagree about the level of mold exposure that may cause health problems, and about the exact nature and extent of the health problems that may be caused by mold. The most common health concerns associated with molds include hay fever-like allergic symptoms similar to those caused by plant pollen and animal dander (e.g. fatigue, headache, respiratory ailments, aggravation of asthma, nasal stuffiness or runny nose, cough, congestion, eye, nose, throat and skin irritation, etc.). Research on mold and its health effects is on-going. This list is not intended to be all-inclusive. Naturally, common sense dictates that you should consult your physician for any symptoms of concern to you.

Homeowner Responsibilities:

Since microscopic mold spores exist everywhere naturally in our environment, mold cannot be prevented

Mold Disclosure

Rev. 8-5-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

or removed entirely. The only way to prevent mold growth is to eliminate excessive moisture in and around the home and remove visible growth immediately.

The Homeowners’ responsibilities for the prevention of mold growth include, but are not limited to, the following:

1. Don’t Bring Mold Home: Before bringing items into the home, check for signs of mold. Potted plants (roots and soil), furnishings, or stored clothing and bedding material, as well as many other household goods, could already contain mold growth.

2. Keep it Clean: Regular vacuuming and cleaning will help reduce mold levels. Mild cleaning solutions are generally effective in eliminating or preventing mold growth. After cleaning carpets, make sure that the carpets are completely dry before replacing furniture. Don’t close closet doors or otherwise enclose spaces until the carpets have completely dried out.

3. Reduce Humidity: Keep the humidity (water vapor in the air) in the home low. Vent clothes dryers to the outdoors. Ventilate kitchens and bathrooms by opening the windows, by using exhaust fans, and by running the air conditioning to remove excess moisture in the air, and to facilitate evaporation of water from wet surfaces. Consider using dehumidifiers. Moisture sources that increase indoor air humidity include but are not limited to: steam from showers, baths, and cooking, indoor plants, washing dishes and clothes, hanging wet clothes on indoor drying lines and humidifiers. Periodically ventilate enclosed spaces such as closets.

4. Promptly Correct Leaks, Moisture and Water Damage: Since mold will generally only grow in areas that have been exposed to moisture for more than 24 hours, it is critical that water leaks are repaired immediately. Please contact your Shea Homes Customer Service Representative immediately upon your discovery of any water leaks so that the situation can be assessed as quickly as possible. Thoroughly dry any wet surfaces or material. Do not let water pool or stand in the habitable areas of the home. Promptly replace any materials that cannot be thoroughly dried, such as drywall or insulation. Landscape so that the ground slopes away from the home to prevent water from collecting underneath the home and keep sprinklers and other sources of water from spraying on the walls of the home. Also, promptly clean up spills, condensation and other sources of moisture.

5. Maintenance is a Must: It is very important that Buyer regularly maintains the Home. For example, regularly caulk the windows, faucets, drains, tub and showers. Maintain roofs in good repair. Refer to the homeowner manual for additional areas of suggested maintenance. Heating, ventilation and air conditioning systems should have their filters replaced on a regular basis as called for in their maintenance manuals. Exterior surfaces, such as the areas under the eaves and along the fascia near the roof line, should be inspected and cleaned regularly. Dirt, pollens and dust build up will encourage mold growth and cause surface damage, particularly in the natural damp environment in which we live. Therefore, Buyer must regularly clean and maintain the exterior of the Home to protect it against the elements. Vulnerable surfaces can generally be cleaned off using a nonabrasive cleaner and domestic garden hose. There are also many cleaners on the market designed as exterior house cleaners. It is important with the application of any product to do spot testing and read directions carefully before applying.

6. Vigilance is Vital: Buyer must perform routine visual inspections for mold growth and signs of leaks, moisture or water damage. Moldy or musty odors are also a reliable indicator as to the presence of mold. Inspect for signs of mold, moisture, leaks and spills on a regular basis and eliminate the source of the water immediately. Look for discolorations or wet spots on the ceiling, walls, floors, windowsills etc. Inspect condensation pans (refrigerators and air conditioners) for mold growth. Do not let water stand in air conditioning or refrigerator drip

Mold Disclosure

Rev. 8-5-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

pans. Look around and under sinks for standing water, water stains or mold. Take notice of musty odors, and any visible signs of mold.

Failure to timely perform Buyer’s responsibilities may cause any mold growth to spread or worsen and result in damage to the Home.

Mold Cleanup.

If mold is found, it must be removed and the source of the water must be eliminated immediately. The measures taken to initiate the clean-up process are dependent on the extent of the problem. In many cases, mold can be removed by a thorough cleaning with a mild cleaning solution. Proper care must be taken to ensure that safe cleanup methods are employed. Any item that cannot be completely cleaned of mold should be discarded after checking with the cleaning professional to ensure that there is no other way to clean the item.

WHETHER OR NOT YOU AS A HOMEOWNER EXPERIENCE MOLD GROWTH AT THE INTERIOR AND/OR EXTERIOR OF YOUR HOME DEPENDS LARGELY ON HOW YOU MANAGE AND MAINTAIN YOUR HOME. THE APPEARANCE AND EXISTENCE OF MOLD, MILDEW, OR FUNGAL GROWTH IS 1) NOT COVERED UNDER THE TERMS OF THE NEW HOME LIMITED WARRANTY, 2) MUST BE ADDRESSED AS PART OF YOUR HOMEOWNER MAINTENANCE ROUTINE, AND 3) WILL NOT IMPOSE ANY OBLIGATION ON SELLER WHATSOEVER TO CLEAN, REPAINT OR OTHERWISE ADDRESS ANY IMPACTED AREAS.

ACCORDINGLY, SELLER DISCLAIMS AND BUYER FOREVER WAIVES ANY CLAIMS OR DAMAGES REASONABLY RELATED TO MOLD, MILDEW OR FUNGUS INCLUDING BUT NOT LIMITED TO PROPERTY DAMAGE, PERSONAL INJURY, LOSS OF INCOME, EMOTIONAL DISTRESS, DEATH, LOSS OF USE, LOSS OF VALUE, AND/OR ADVERSE HEALTH EFFECTS. SELLER FURTHER DISCLAIMS AND BUYER FOREVER WAIVES ANY IMPLIED WARRANTIES, INCLUDING AN IMPLIED WARRANTY OF HABITABILITY, IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR USE, OR IMPLIED WARRANTY OF WORKMANSHIP.

For additional information please visit: http://www.epa.gov/mold and http://www.doh.wa.gov/CommunityandEnvironment/Contaminants/Mold.aspx.

By signing below, Buyer signifies a complete understanding and acceptance of the information and obligations contained in this Disclosure.

BUYER:

Degler Davies dl.signhere.4 dl.datesign.4 12/11/2020 | 12:20:41 PM PST (Printed Name) (Signature) (Date)

Christy Davies dl.signhere.5 dl.datesign.5 12/11/2020 | 3:51:13 PM MST (Printed Name) (Signature) (Date)

(Printed Name) (Signature) (Date)

Mold Disclosure

Rev. 8-5-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

(Printed Name) (Signature) (Date)

Mold Disclosure

Rev. 8-5-15 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

OPTIONS/UPGRADES DISCLOSURE [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017

Degler Davies, Christy Davies

This “Disclosure” applies to the “Contract” dated December 8, 2020, between Buyer and Seller for the Property. All capitalized terms shall have the same meaning as in the Contract unless defined herein.

1. CONSTRUCTION OPTIONS. All construction selections, options, changes or upgrades (collectively, the “Construction Options”) shall be set forth on Addendum B - Customer Options Request (“COR”). Within 30 days of the Effective Date (“Construction Selection Deadline”), Buyer shall sign and deliver to Seller one or more COR setting forth all Construction Options selected by Buyer. Construction Options may not be changed and shall be limited to those set forth on Seller’s options list.

2. DESIGN SELECTIONS AND DESIGN UPGRADES. Within 60 days after the Closing Date (“Design Selection Deadline”), Buyer shall sign and deliver to Seller one or more COR setting forth all of the following: (i) “Design Selections”: Buyer’s selections of interior color, floor coverings, kitchen countertops, cabinetry, lighting and any other variable decorative components or materials; and (ii) “Design Upgrades”: Buyer’s requests, if any, for upgrades and upgraded features listed on the Options List. No Design Selections or requests for upgrades (or changes thereto) shall be considered after the Design Selection Deadline. All options must be finalized prior to commencement of Construction. Should Buyer fail to make its Design Selections by the Design Selection Deadline, Buyer shall be in default and in addition to any remedies under the Contract, Seller may make such Design Selections for Buyer in Seller’s sole discretion, in which event Seller’s Design Selections shall be final. No COR shall be effective unless accepted in writing by Seller’s authorized agent.

3. ADDITIONAL DEPOSITS. The additional charges, if any, for all Construction Options and Design Upgrades (collectively, “Options/Upgrades” or “Cash Extra Items”) added to the Purchase Price, shall be determined by Seller in its sole discretion, shall be described on the applicable COR, and may require “Additional Deposits”. ADDITIONAL DEPOSITS ARE CALCULATED AS FOLLOWS: 20% OF THE OPTIONS/UPDRADES OR CASH/EXTRA ITEMS.

4. Options/Upgrades may be limited or may not be available at all. If any Options/Upgrades cannot be installed for any reason, Buyer shall not be permitted to cancel this Contract. If Seller is unable/unwilling to provide a similar replacement, Buyer’s sole remedy will be a refund of any associated Additional Deposits and a reduction in Purchase Price equal to the amount of the Option/Upgrade charged to Buyer.

5. Design upgrades and selections will be coordinated by and made through Seller’s Design Studio. Seller’s Design Studio will coordinate two (2) full-day appointments with Buyer.

Examples of Construction Options:

 Any option that affects the permit or footprint of  Home placement request/ the home, including architectural style/elevation  Bar options  Natural gas and electrical appliance options  Room or den options  Optional cabinetry layout and/or modifications  Patio/Balcony options  Floor electrical outlets  Exterior color schemes  Interior and exterior door locations and/or sizes  Kitchen layout/upgrade, appliance type and  Optional exterior doors, rolling wall of glass, and locations sliding glass door options  Stair railing options  Tub/shower options and location  Elevator selections (plan specific)  Ceiling details  Plumbing options

Options/Upgrades Disclosure - Phoenician Page 1 of 2 Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

 Insulation options (if applicable)

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

Examples of Design Selection and Design Upgrades:

 Floor covering options (wood, carpet, tile, etc.)  Window coverings  Appliances  Countertop selection  Interior paint colors and paint finish  Kitchen and vanity backsplash selections  Shower and tub surround selections  Bath framed mirror options  Kitchen sink and faucet  Door hardware, baseboards, and trim  Plumbing fixtures and finish  Interior door style (not size or location)  Light fixtures, style, and finish  Custom landscape selections  Allowable additional electrical options  Custom pool options  Low voltage & Security options  Rain gutters (per plan)  Home automation options  Cabinet door style and finish (door hardware)  Stair railing finish

Buyer’s Initials dl.initialhere.4 dl.initialhere.5

Options/Upgrades Disclosure - Phoenician Page 2 of 2 Buyer’s Initials dl.initialhere.4 dl.initialhere.5 Initial 11-01-20 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

SHEA HOMES ® LIMITED FIT AND FINISH WARRANTY

I. THE LIMITED WARRANTY AND ITS TIME PERIODS

Limited Fit & Finish Warranty: Seller warrants the “Components” of the Home, as identified within the Residential Construction Performance Guidelines, 5th Edition, originally published by the National Association of Home Builders (the “Guidelines”; sample attached), will be free from defects in materials and workmanship during the “Limited Warranty Period” specified below (the “Limited Warranty”). The Limited Warranty relates to “Covered Components” which are defined as Components that fail to meet the Guidelines within the applicable Limited Warranty Period and are not subject to an Exception, which is defined below. In the event a Component of the Home is not identified in the Guidelines, it will be covered if it is damaged and fails to substantially perform its function within one year from the Close of Escrow and is not subject to an Exception. The existence of a Covered Component does not constitute a breach by Seller. Seller may elect to repair or replace a Covered Component to conform to the Guidelines in its sole discretion or may elect to provide monetary compensation in lieu of repair or replacement. Seller will make reasonable efforts to match existing conditions when a repair is performed. However, due to the inherent characteristics of many Components, perfect matches are not possible and thus cannot be guaranteed.

The Limited Warranty is provided to the original buyer and automatically transfers to subsequent owners of the Home during the applicable Limited Warranty Period.

“Limited Warranty Period”:

Arizona, California, Colorado1, Florida, Nevada, North Carolina, Texas2, Virginia3, and Washington:

 1-Year Coverage: Seller warrants the Components of the Home will conform to the tolerances of materials and workmanship, as defined by the Guidelines, for a period of 1 year from Close of Escrow.

 2-Year Coverage: Seller warrants the Home to be free of major structural defects (“MSD”) for a period of 2 years from Close of Escrow. An MSD is defined as any physical damage to the following designated load-bearing Components of the Home that materially affects their load- bearing functions:

 Load bearing beams, columns, walls, joists and headers  Foundation systems and structural slabs  Roof and floor trusses

Repair or replacement of a Covered Component does not extend the Limited Warranty Period.

II. HOW TO MAKE A CLAIM

To make a claim, you must notify Seller’s Customer Service Department, in writing, by submitting a Warranty Request form prior to expiration of the Limited Warranty Period. It is important that you do this

The MSD Warranty Period for homes in Colorado is 8 years from Close of Escrow. The MSD Warranty Period for homes in Texas is 10 years from Close of Escrow. The MSD Warranty Period for homes in Virginia is 5 years from Close of Escrow.

LIMITED WARRANTY Rev. 4-9-19 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

as soon as possible when you discover potential warranty issues. For emergency situations concerning a Component, please refer to the Emergency section below.

It is also critical that you reasonably cooperate with Seller’s Customer Service Department in making your home available for inspections and repairs as outlined below. This cooperation may also include allowing Seller’s contractors to use reasonable amounts of electricity, natural gas or propane, water and other utilities necessary to complete repairs.

Step 1 - Submit a Warranty Request Form

Warranty Request Forms can be found on Seller’s website at www.sheahomes.com/servicerequest. Additional Warranty Request forms are available by calling (866) 535-9959 or emailing [email redacted]. Reviewing the Guidelines prior to filling out your Warranty Request form will help you determine if the Limited Warranty covers the claim.

When completing the Warranty Request Form, please be sure to include:

 Community and Home site number  Name and address  Home and work phone numbers  General description of the problem  Room location in the Home  Location in the room

Once completed, please send Seller your Warranty Request Form via one of the methods listed below:

 Email your request to [email redacted]

 Mail your request to:

Shea Homes Customer Service Dept. 8800 N. Gainey Center Dr., Suite 350 Scottsdale, AZ 85258

Step 2 – Permit Seller’s Representative to Investigate

Upon receiving your Warranty Request Form, we will contact you to schedule an appointment with a Seller’s representative to review the items contained on your Warranty Request Form in person with you before determining if the repair is covered under the Limited Warranty. This review may also require or involve testing or inspection by third party contractors or consultants. Please note that an adult member of your household must be present during this appointment, as well as at any time work is performed. In the event Seller’s representative identifies Covered Components, he/she will schedule the inspection, testing or work, taking into account where feasible the dates and times noted on your Warranty Request Form.

Step 3 - Trade Contractor Appointments

Repairs of Covered Components will be made by appointment via trade contractors. Someone over the age of 18, preferably one of the homeowners, must be at the Home for trade contractor appointments. This person must be able to answer questions concerning the nature, history, and location of the issue, be familiar with the Home,

LIMITED WARRANTY Rev. 4-9-19 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

and have authority to make decisions with respect to repairs. Repair appointments generally occur within “time windows” (e.g., 8:00 a.m. - 12:00 p.m., or 12:00 p.m. - 4:00 p.m.), and not at a specific time (e.g.. 8:00 a.m.).

In the event it becomes absolutely necessary to cancel an appointment, please contact your Seller’s representative as soon as possible so they can assist with rescheduling a new date and time, where appropriate. NOTE: The cancellation of appointments will not extend the applicable Limited Warranty Period and may result in a denial of coverage as well as a significant delay.

III. EMERGENCIES

Emergencies are defined as Components that require immediate repair to protect you and your family from harm and to avoid immediate and further damage to your Home. In the event your emergency involves personal safety, such as a fire or a natural gas leak (smell of rotten eggs), please immediately call 9-1-1 (or the gas service provider for a gas leak) from a safe location. For all other emergencies listed below, please directly call the emergency contact for your community. This may be an answering service or a specific trade contractor on an emergency call list provide during the Customer Walk-Thru. These phone numbers are supposed to be answered after business hours, including evenings, weekends, and holidays. In the event you no longer have an emergency call list, please contact Seller at the number below for a replacement. Emergency service is typically provided only during the Limited Warranty Period.

It is important that you notify Seller as soon as possible following the emergency event so that Seller may also help coordinate any covered repairs. You may call (866) 535-9959 between 7:00 a.m. to 4:00 p.m. PT.

EMERGENCIES INCLUDE:

Plumbing - A plumbing emergency is considered a complete and total stoppage of the plumbing drain system (i.e., all sink faucets, tub spouts, shower fixtures, and toilets do not function properly), and also includes any water leak that requires the water supply for your entire Home to be shut off to avoid water damage. A leak that can be isolated by turning off the shutoff valves under the cabinet or plumbing fixture is not considered an emergency event. Stoppage of a singular toilet or drain caused by construction debris, homeowner use, or arising from work performed by one of Seller’s trade contractors, also does not qualify as an emergency event.

Electrical – Only a total electrical failure that is isolated to your Home qualifies as an emergency event.

Heating and Cooling – Only a complete failure of the heating or air conditioning system during periods of extreme weather qualifies as an emergency event.

Leaks - Water that breaches the building envelope (e.g. roof leak) and enters the Home, causing damage to interior finishes qualifies as an emergency event. Try to minimize water damage until a representative arrives. Note: Repairmen cannot work on a roof until the rain has stopped and the roof surface has dried, but measures can be taken to help minimize damages.

IV. LIMITED WARRANTY EXCEPTIONS

IN ADDITION TO ANY SPECIFIC EXCEPTIONS WITHIN THE GUIDELINES, THE LIMITED WARRANTY IS SUBJECT TO THE FOLLOWING EXCEPTIONS. IF AN EXCEPTION EXISTS, LIMITED WARRANTY COVERAGE WILL NOT BE PROVIDED.

 Acts Beyond Seller’s Reasonable Control: Damages due to a catastrophe, crime, insurrection, riot, terrorism, war, animals, pests, or other causes beyond Seller’s reasonable control are not covered.

LIMITED WARRANTY Rev. 4-9-19 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

 Acts of God: Loss or injury due to “Acts of God” including, but not limited to, lightning, hail, mudslide, changes in the underground water table, natural catastrophes, earthquakes, winds, floods, wind-driven rain and other elements, severe weather, snow, ice or circumstances that are beyond Seller’s control are not covered.

 Alterations to Grade: Damage arising from any alteration of the original finish grade, drainage system, drainage swales, and drainage patterns, whether created by landscaping, additional structures, flatwork, walkways, patios or other modifications to your lot following Close of Escrow, including but not limited to, flatwork or foundation movement, settlement, water or moisture penetration through flatwork or the foundation, or damage due to any alteration or excessive irrigation are not covered. You should engage a Civil Engineer or other licensed professional to advise and comment upon intended changes in the grading or drainage patterns. This includes, but is not limited to, landscaping, pool, walkway, patio, deck, wall, fence, and decorative structures.

 Consequential Damages: Any incidental, consequential or secondary damages or losses of any kind whatsoever that may arise from or out of any conditions warranted by this Limited Warranty, including, but not limited to, personal injury or damage to personal property, lost wages/profits, loss of use, emotional distress or inconvenience are not covered.

 Damage by Buyer: Damage done to any part or element of the Home by you or your agents, whether or not accidental, is not covered. This includes, but is not limited to, any repairs, additions or alterations performed by you or your agents as well as cosmetic and surface damage such as chips, cracks, scratches, dents, tears, gouges, stains, and smudges.

 Dampness: Dampness or condensation due to your failure to maintain adequate ventilation or by environmental conditions is not covered.

 Excessive Watering: Any damage or loss caused by excessive watering of the Property or adjacent property by any party other than the Seller, its employees, agents or contractors is not covered.

 Expendable Items: Expendable or disposable items which have been installed in your Home such as light bulbs, fluorescent lights, batteries and weather stripping are not covered.

 Exposure to the Elements: Any damage or loss caused by exposure of a product to the elements, for example, fading from sunlight, swelling, staining, dry rot, pitting, erosion, or efflorescence, is not covered.

 Failure to Promptly Notify: Any damages or loss resulting from your failure to notify Seller promptly of a claim are not covered. The damage to your Home resulting from a problem or condition may be progressive and worsen with time. This means that any damage or loss resulting from delayed notification or your failure to take protective measures is your responsibility and is not covered by the terms of this Limited Warranty.

 Fungus, Mildew, Mold and Bacteria: Fungus, mildew, mold and bacteria are common to the air we breathe and the world around us. Accordingly, during your ownership of the Home, including during the Limited Warranty Period, you will likely discover fungus, mildew, mold and bacteria in or on the Home. Seller does not warrant the Home to be free of fungus, mildew, mold and/or bacteria and the presence of fungus, mildew, mold and/or bacteria in the Home is not covered. You are solely responsible for the prevention and removal of fungus, mildew, mold and/or bacteria growth, interior or exterior.

 Labor/Work Provided by Buyer: Items, products or materials installed, repaired, added, altered, modified or replaced by you or your agents, or damages caused by items, products or materials installed, repaired or replaced by you or your agents are not covered. Seller is not required to reimburse you for repairs or other work done by you or your agents.

LIMITED WARRANTY Rev. 4-9-19 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

 Lack of Buyer Maintenance and Cleaning: This Limited Warranty does not cover damage or loss to your Home, or any part or element of your Home, caused, in whole or in part, by your failure to perform required maintenance or cleaning of the Home, inside or out. Your Home must be continually maintained and kept clean to perform well. It is your responsibility to perform (or have someone perform on your behalf) all necessary Home maintenance and cleaning. Seller has provided maintenance guidelines for your information. You should also follow all manufacturers’ recommendations as well as all other commonly accepted Buyer maintenance obligations, inside or out.

 Manufacturer Warranties4: Defects covered by manufacturers’ or other warranties (e.g., appliances, smart home components, etc.) are not covered.

 Misuse, Abuse, and Neglect: Damage or loss due to misuse, abuse, neglect, or use for other than intended purpose is not covered.

 Moving In or Out: Damage or loss caused by you, your agents or anyone employed by you moving into or out of the Home is not covered.

 Natural Characteristics of Materials: The effects of natural characteristics of building materials such as, but not limited to, swelling or warping of wood, mold in or on wood (aka lumber mold), fading of paint due to exposure to the elements, shrinkage cracks in concrete, stucco, and caulking and conditions arising from normal expansion and contraction of building materials, are not covered. Repaired Components are not guaranteed to perfectly match their surroundings as a result.

 Ordinary ‘Wear and Tear’: Damage or loss due to ordinary wear and tear or usage is not covered.

 Pollutants: Damages, losses or costs arising from or connected to, in whole or part, the actual, alleged or threatened proximity, discharge, dispersal, release, escape, clean up, removal, treatment, containment or monitoring of pollutants, solid, liquid or gaseous irritants, contaminants or hazardous materials including but not limited to petroleum products, radiation, electromagnetic fields, smoke, vapors, soot, fumes, acids, alkaloids, toxic chemicals, radon gas, mold, mildew, fungi, and waste materials, including materials to be recycled are not covered.

 Settlement/Shrinkage: Settlement, shrinkage or expansion to parts of the Home (e.g., lumber, concrete, stucco, caulking) is not covered. Settlement, shrinkage or expansion can cause cracks to many of your Home’s Components, including but not limited to drywall, partitions, exterior trim, etc. Shrinkage, twisting, fading and brittleness may also occur to moldings, finish trim, cabinets, hardwood floors, exterior wood, trim and other items. These conditions are normal in a new home and not a deficiency in the quality of construction or the materials.

 Subsequent Code Changes: The failure of the Home to meet newly adopted or changed local or national building codes, ordinances, or standards put into effect after the date the building permit for the Home was obtained are not covered.

 Unauthorized Repairs: Costs you incur to perform repairs or replacements are not covered and will NOT be reimbursed.

Appliances are warranted, if at all, by their respective manufacturers and not by Seller and may include the security alarm, smart home components, AV equipment, refrigerator, range, oven, stove exhaust fan, trash compactor, smoke detectors, fire sprinklers, and water heater. Where required, you should complete the warranty registration cards for each appliance immediately following the Closing date, and within the time specified by the manufacturer. If an appliance is not performing as intended within the applicable manufacturer’s warranty period, you should contact the appliance manufacturer directly for repair.

LIMITED WARRANTY Rev. 4-9-19 DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

PUBLIC REPORT RECEIPT [number redacted] 6146 E Alta Hacienda Dr, Scottsdale, AZ, 85251 aka Shea Signature at The Phoenician Lot 0017 Degler Davies, Christy Davies

The developer shall furnish you, as a prospective customer, with a copy of the Public Report required by the Arizona Department of Real Estate. It is recommended that you read the report before you make any written offer to purchase or lease an interest in the development, and before you pay any money or other consideration toward the purchase or lease of an interest in the development.

FOR YOUR PROTECTION, PLEASE DO NOT SIGN THIS RECEIPT UNTIL YOU HAVE RECEIVED A COPY OF THE REPORT AND HAVE HAD THE OPPORTUNITY TO READ IT. BY SIGNING THIS RECEIPT, THE BUYER HAS ACCEPTED THE PUBLIC REPORT AND ACKNOWLEDGES THE INFORMATION IT CONTAINS.

The Phoenician Parcel F Development Name

AKA Signature at The Phoenician, AKA Shea Signature at The Phoenician Marketing Name

DM20-060095 Public Report Registration Number

I understand that the report is not a recommendation or endorsement of the development by the Arizona Department of Real Estate, but is for information only. 12/11/2020 | 12:20:41 PM PST Degler Davies dl.signhere.4 dl.datesign.4

(Buyer’s Name) (Buyer’s Signature) (Date)

4922 East Calle Del Norte, Phoenix, AZ, 85018 (Current Address)

Christy Davies dl.signhere.5 12/11/2020 dl.datesign.5 | 3:51:13 PM MST

(Buyer’s Name) (Buyer’s Signature) (Date)

4922 East Calle Del Norte Phoenix AZ 85018 (Current Address)

(Buyer’s Name) (Buyer’s Signature) (Date) DocuSign Envelope ID: 638451DF-DDEB-4A5C-88D1-F628F8498228

(Current Address)

(Buyer’s Name) (Buyer’s Signature) (Date)

(Current Address)

(Buyer’s Name) (Buyer’s Signature) (Date)

(Current Address) Certificate Of Completion Envelope Id: 638451DFDDEB4A5C88D1F628F8498228 Status: Completed Subject: Shea Homes Arizona: Shea Signature at The Phoenician - Lot 0017 Contract Package Source Envelope: Document Pages: 129 Signatures: 53 Envelope Originator: Certificate Pages: 2 Initials: 82 Megan Kellis AutoNav: Enabled 655 Brea Canyon Rd EnvelopeId Stamping: Enabled Walnut, CA 91789-3078 Time Zone: (UTC-07:00) Arizona [email redacted] IP Address:

Record Tracking Status: Original Holder: Megan Kellis Location: DocuSign 12/9/2020 6:28:22 PM [email redacted]

Signer Events Signature Timestamp Degler Davies Sent: 12/9/2020 6:33:12 PM [email redacted] Viewed: 12/9/2020 8:30:35 PM Security Level: Email, Account Authentication Signed: 12/11/2020 1:20:41 PM (None) Signature Adoption: Pre-selected Style Using IP Address:

Electronic Record and Signature Disclosure: Not Offered via DocuSign

Christy Davies Sent: 12/11/2020 1:20:49 PM [email redacted] Viewed: 12/11/2020 2:23:46 PM Security Level: Email, Account Authentication Signed: 12/11/2020 3:51:13 PM (None) Signature Adoption: Pre-selected Style Using IP Address:

Electronic Record and Signature Disclosure: Not Offered via DocuSign

Megan Kellis Sent: 12/11/2020 3:51:20 PM [email redacted] Viewed: 12/11/2020 3:52:41 PM Community Representative Signed: 12/11/2020 3:54:00 PM J.F. Shea Co., Inc Signature Adoption: Uploaded Signature Image Security Level: Email, Account Authentication (None) Using IP Address:

Electronic Record and Signature Disclosure: Not Offered via DocuSign

Robert Joffe Sent: 12/11/2020 3:54:08 PM [email redacted] Viewed: 12/11/2020 4:56:33 PM Realtor Signed: 12/11/2020 4:56:46 PM Launch Real Estate LLC -The Joffe Group Signature Adoption: Drawn on Device Security Level: Email, Account Authentication (None) Using IP Address:

Electronic Record and Signature Disclosure: Not Offered via DocuSign Signer Events Signature Timestamp Ken Peterson Sent: 12/11/2020 4:56:53 PM [email redacted] Viewed: 12/12/2020 4:52:39 AM VP Sales & Marketing Arizona Signed: 12/12/2020 4:52:52 AM J.F. Shea Co., Inc Signature Adoption: Drawn on Device Security Level: Email, Account Authentication (None) Using IP Address:

Electronic Record and Signature Disclosure: Not Offered via DocuSign

Carly Harlacher Sent: 12/12/2020 4:53:00 AM [email redacted] Viewed: 1/5/2021 3:30:05 PM J.F. Shea Co., Inc Signed: 1/5/2021 3:31:52 PM Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 0

Electronic Record and Signature Disclosure: Not Offered via DocuSign

In Person Signer Events Signature Timestamp

Editor Delivery Events Status Timestamp

Agent Delivery Events Status Timestamp

Intermediary Delivery Events Status Timestamp

Certified Delivery Events Status Timestamp

Carbon Copy Events Status Timestamp Greg Geis Sent: 1/5/2021 3:32:03 PM [email redacted] Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign

Bev Mcleer Sent: 1/5/2021 3:32:04 PM [email redacted] Viewed: 1/21/2021 10:37:20 AM Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign

Witness Events Signature Timestamp

Notary Events Signature Timestamp

Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/9/2020 6:33:13 PM Certified Delivered Security Checked 1/5/2021 3:30:05 PM Signing Complete Security Checked 1/5/2021 3:31:52 PM Completed Security Checked 1/5/2021 3:32:04 PM

Payment Events Status Timestamps Received 1/04/2024 ROC Legal

LANG THAL KING & HANSON PC 6730 N. SCOTTSDALE RD., SUITE 101 SCOTTSDALE, ARIZONA 85253 TELEPHONE (480) 534-4900 Please e-serve filings on: [email redacted] Please note new firm name and email addresses JAMES N. HANSON, #029091 [email redacted] (not for e-service)

Attorneys for Shaz GC, Inc. ARIZONA REGISTRAR OF CONTRACTORS Degler Davies, Case No.: 2023-11542 Complainant, ANSWER TO WRITTEN CITATION v. Shaz GC Inc., Respondent. Under A.R.S. § 32-1155 and in response to the Registrar’s Citation and Complaint issued on December 20, 2023, Respondent SHAZ GC, Inc. files this Written Answer. Because SHAZ GC, Inc. is a division of Shea Homes, it will be referred to as “Shea Homes” in this Answer. Reasons for Dismissal and Refraining from Discipline The Registrar should not discipline the license of Shea Homes in connection with the administrative complaint filed by Degler Davies. Shea Homes asserts the following points in defense of its license:  Shea Homes did in fact perform work in a professional and workmanlike manner, using such skills, prudence, and diligence in performing and completing tasks undertaken that the completed work meets the standards of a similarly licensed contractor possessing ordinary skill and capacity. Therefore, neither A.R.S. § 32-1154(A)(3) nor R4-9-108(a) have been violated, and certainly not in any manner warranting discipline against the license. Received 1/04/2024 ROC Legal

 With respect to the written directive from the Registrar, and to the extent that there were any unremedied items in it, Shea Homes had a “valid justification,” A.R.S. § 32-1154(A)(22), connected with the Complainant’s denial of access and the Complainant’s lack of cooperation. Further, Shea Homes would have complied with any and every reasonable directive item if it had “a reasonable period of time,” A.R.S. § 32-1154(A)(22). Therefore, A.R.S. § 32-1154(A)(22) has not been violated, and certainly not in any manner warranting discipline against the license.  Complainant unreasonably denied Shea Homes access to reasonably address any legitimate complaint items.  Complainant failed to cooperate with Shea Homes in a manner that warrants dismissal of the administrative complaint against the license. o In support of this, Shea Homes relies on the Registrar’s Substantive Policy Statement 2017.01: “American jurisprudence implies in all contracts the obligation to cooperate in the performance of the contract and not to delay, hinder, or interfere with the performance of other parties. Over the years, owners have been found on numerous occasions to have breached their implied duty of cooperation in the context of construction contracts. Such instances have included failure to provide timely site access, failure to inspect the work or complete other work necessary to allow the contractor to proceed, and failure to reasonably schedule and coordinate owner-controlled work.”  Complainant failed to provide Shea Homes with reasonable forms of notice and reasonable opportunities to correct alleged defects, in a

Received 1/04/2024 ROC Legal

manner that warrants dismissal of the administrative complaint against the license. o In support of this, Shea Homes relies on the Registrar’s Substantive Policy Statement 2017.01: “A breach cannot be said to be material if it is curable, notice to cure is given, and prompt steps are taken to cure or to offer assurances of cure. The right of a breaching party to be given an opportunity to cure its own material breach is an ancient equitable principle…. Cure is relevant to materiality by virtue of its focus on elimination of the breach and its implied assurance of intent to tender adequate future performance…. Providing a cure notice of curable breaches deemed by the nonbreaching party to be sufficiently material to warrant termination for cause is a fundamental prerequisite to termination…. Unless expressly waived, the right to cure is implied in every contract as a matter of law.”  Complainant appears to be using the administrative complaint process inappropriately. To the extent that it is established that his use of the administrative complaint process is inappropriate, the administrative complaint against the license should be dismissed, consistent with the section on “Abuse of the Administrative Process” in the Registrar’s Substantive Policy Statement 2017.01.  Shea Homes reserves its right to raise additional legal and factual defenses at the hearing. Conclusion To the extent that Complainant has, or believes he has, an issue that constitutes a contract claim of some kind, the parties would be better served by a voluntary dismissal of this administrative complaint so that the issue could be resolved cooperatively or in a more

Received 1/04/2024 ROC Legal

appropriate forum. If he seeks a form of relief that this process simply cannot yield, then Complainant runs the risk of frustration. To the extent that Complainant seeks discipline against Shea Homes’s license for whatever reason, then undersigned counsel admonishes the Complainant to review the Citation, which states the following: 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 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. Cit. at 4:16-22. As the Registrar’s Citation establishes, the mere existence of the Citation is not prima facie evidence that any violation has occurred. Further, pursuant to the statute cited in the Citation, A.R.S. § 32-1155, even if a violation were to have occurred, the primary question for the administrative hearing is whether the violation warrants discipline of some kind. The evidence will establish that no discipline of any kind against the license is warranted. DATED this 4th day of January, 2024.

LANG THAL KING & HANSON PC

By: /s/ James N. Hanson James N. Hanson Attorneys for Respondent ORIGINAL filed via e-mail this 4th day of January, 2024, to:

Arizona Registrar of Contractors 1700 W. Washington St., Ste. 105 Phoenix, AZ 85007-2812 [email redacted] [email redacted]

Degler Davies 6146 E Alta Hacienda Dr Scottsdale, AZ 85251 [email redacted]

By: /s/ Amanda Smith

Received 1/5/24, 9:22 AM State of Arizona Mail - Shaz GC, Inc. adv. Degler Davies (ROC Case No. 2023-11542) - Notice of Appearance /1/04/2024 Written Answer to C… ROC Legal

Answers - AZROC <[email redacted]>

Shaz GC, Inc. adv. Degler Davies (ROC Case No. 2023-11542) - Notice of Appearance / Written Answer to Citation message

Amanda Smith <[email redacted]> Thu, Jan 4, 2024 at 4:37 PM To: "[email redacted]" <[email redacted]>, "[email redacted]" <[email redacted]> Cc: James Hanson <[email redacted]>, "[email redacted]" <[email redacted]>

Good Afternoon,

Please find attached for filing a Notice of Appearance and an Answer to Written Citation regarding the above-referenced matter. Please contact our office if you have any questions.

Thank you,

Amanda

Amanda Smith Legal Assistant Direct: 480-534-4894 | Website | vCard 6730 N. Scottsdale Rd., Suite 101 | Scottsdale, AZ 85253 480-534-4900 NOTICE: This message and its attachments are confidential and may be attorney-client privileged. They are protected by law. If you are not the intended recipient, please destroy the message in both electronic and paper form and notify Lang Thal King & Hanson at 480-534-4900 or by email to the sender. Thank you. Lang & Klain, PC is now Lang Thal King & Hanson PC

attachments Answer to Written Citation.pdf 197K Notice of Appearance.pdf 159K

https://mail.google.com/mail/b/AEoRXRQyLL8rRlWSgE8MsM0Zh9dSNrnenng5wHlLy9ipWiUHV17N/u/0/?ik=581c53cf5c&view=pt&search=all&permth… 1/1 REGISTRAR OF CONTRACTORS OF THE STATE OF ARIZONA

Degler Davies, Case No. 2023-11542 COMPLAINANT, v. SHAZ GC Inc. ORDER DENYING RESPONDENT’S License No. ROC 327019, REQUEST TO DISMISS RESPONDENT.

BACKGROUND On December 20, 2023 the Registrar issued a citation against Respondent’s License No. ROC 327019. Respondent filed its Answer on January 4, 2024. The Answer included a request to dismiss the administrative complaint. ORDER IT IS ORDERED that Respondent’s request to dismiss is DENIED. The issues underlying the Citation and Complaint are best suited for presentation before the Office of Administrative Hearings. Respondent is free to raise the arguments and defenses presented in its request to dismiss before the administrative law judge. A Notice of Hearing will be issued in due course. Dated January 12, 2024. By: /s/ Robert Stirling Robert Stirling Assistant General Counsel Legal Department Arizona Registrar of Contractors Copy mailed via USPS First Class mail January 12, 2024 to:

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 5/21 Respondent SHAZ GC Inc 8800 N Gainey Center Dr Ste 350 Scottsdale, AZ 85258 Respondent’s Attorney James N. Hanson, Esq. Lang Thal King & Hanson PC 6730 N Scottsdale Rd Ste 101 Scottsdale, AZ 85253 Complainant Degler Davies 6146 E Alta Hacienda Dr Scottsdale, AZ 85251 Copy sent electronically this same date to: Respondent at email address on record with the Registrar Respondent’s Attorney at email address of record with Registrar Complainant at email address on record with the Registrar Case No. 2023-11542/tq

of 2 REGISTRAR OF CONTRACTORS 1700 W. Washington St.– Ste. 105 – Phoenix, AZ 85007-2812 Telephone (602)542-1525 Toll Free (877)692-9762 Lg127 5/21 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