DMC COVID-19 Playbook SOP FINAL Desert Mountailn

DMC COVID-19 Playbook SOP FINAL Desert Mountailn

DESERT MOUNTAIN CLUB COVID-19 PLAYBOOK

STANDARD OPERATING PROCEDURES

— INDEX —

Page CEO Introduction............................................................................................................. 1 Desert Mountain Vision & Mission Statement ................................................................. 2 Desert Mountain Core Values ...................................................................................... 3-4 Health......................................................................................................................... 5-12 Security. ........................................................................................................................ 13 Communication. ....................................................................................................... 14-17 Team Organization........................................................................................................ 18 Facilities Response & SOP ...................................................................................... 19-20 Expense Reduction Plan ............................................................................................... 21 Membership Sales......................................................................................................... 22 Employee Assistance Fund / Employee and Hospital Meals......................................... 23 Golf Operations ........................................................................................................ 24-27 Sonoran Clubhouse.................................................................................................. 28-30 Member Communications ........................................................................................ 31-41 Food & Beverage Reopening Plans ......................................................................... 42-55 Sonoran Clubhouse Reopening Plans (Fitness/Wellness/Pools/Racket Sports)...... 56-58 Spa & Salon Reopening Plans ................................................................................. 59-64 Summary....................................................................................................................... 64

INTRODUCTION

The COVID-19 pandemic is unprecedented and unlike any crisis we, as a 34-year old private Club entity have had to face before. This is a manual on how we are attempting to get on top of the situation, stay ahead of the curve and come out the other end of this pandemic as a united team, poised for future success with our health, values and dignity intact. While our goal is to provide positive life experiences, please prepare for some criticism because no matter what positive steps and preparation you take, it will come. I wish we could provide 100% successful plans, but noone has a playbook for an unprecedented health crisis such as this that has impacted every citizen of the US and nation of the world. If you are doing what you believe in your heart of hearts is right, the negativity tends not to pierce as deeply. Let’s start our day with an attitude of gratitude; always knowing that your efforts are valued and appreciated. We are conflicted every day about whether we are doing the right thing by keeping the Club open, even with the strictest protocols in place we know we are potentially exposing our teams and possibly being part of the problem. For now, we are living day-to-day, and every day that our team stays healthy and our Club stays open is awin for all of us. If the situation reverses and again begins to decline and the government mandates another shutdown, we will be the first to get behind it. Until then, we have a duty to our DMC team of employees, as all of us are dependent on working safely to care for our families. We must do everything possible to stay healthy, to keep us employed and safely navigate this crisis. We are charged with providing safe and healthy facilities that bring joy to the lives of our members; and let’s succeed in our goal! Confronting adversity causes some to break and other to break records. Your exceptional work has kept our Club and our team together; thank you! I’m proud to work with you and I’m grateful for what you do to make our Club special. With tremendous respect and gratitude,

Damon J. DiOrio, CCM, CCE, CEO

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HEALTH

COVID-19 Actions Taken by the Club, March 13, 2020 Following the President’s Declaration of Emergency on March 13, 2020, the Club made a number of difficult but necessary decisions to alter day-to-day operations. In addition to installing a number of additional hand-sanitizer stations Club-wide, our team began rigorously sanitizing all contact areas (including golf carts) throughout the day. A number of high-volume amenities were closed at this time, and all major golf tournaments were canceled for the remainder of the spring season. In addition, all dine-in restaurants closed their doors and we transitioned to curbside “to-go” pickup. There were two communications released to the membership at this time detailing the extensive list of changes being made, both of which can be viewed below:

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HEALTH

COVID-19 Actions Taken by the Club, March 13, 2020

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HEALTH

Follow Five Steps to Wash Your Hands the Right Way – Message to Staff

Washing your hands is easy, and it’s one of the most effective ways to prevent the spread of germs. Clean hands can stop germs from spreading from one person to another and throughout an entire community—from your home and workplace to childcare facilities and hospitals. Follow these five steps every time: 1. Wet your hands with clean, running water (warm or cold), turn off the tap, and apply soap. 2. Lather your hands by rubbing them together with the soap. Lather the backs of your hands, between your fingers, and under your nails. 3. Scrub your hands for at least 20 seconds. Need a timer? Hum the “Happy Birthday” song from beginning to end twice. 4. Rinse your hands well under clean, running water. 5. Dry your hands using a clean towel or air dry them. You can help yourself and your loved ones stay healthy by washing your hands often, especially during these key times when you are likely to get and spread germs: • Before, during, and after preparing food • Before eating food • Before and after caring for someone at home who is sick with vomiting or diarrhea • Before and after treating a cut or wound • After using the toilet • After changing diapers or cleaning up a child who has used the toilet • After blowing your nose, coughing, or sneezing • After touching an animal, animal feed, or animal waste • After handling pet food or pet treats • After touching garbage

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HEALTH

Medical Protocols for all Employees Protecting the health and safety of our members and staff is our top priority and daily focus. Listed below are the DMC Employee Health and Safety Protocols:

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HEALTH

Medical Protocols for all Employees (Cont’d)

I may have been exposed to COVID-19. What should I do? Call your primary care provider right away if you believe you might have been exposed to COVID-19 or have symptoms such as fever, cough or difficulty breathing. When should I consider telehealth? Telehealth provides access to health care providers from the comfort of your home, allowing faster support and reduced exposure to the virus. If you believe you might have been exposed to COVID-19 or have symptoms, call your primary care provider right away. Your provider may offer a telehealth option and determine if additional testing is needed. This COVID-19 related telehealth video- conferencing visit will be free of charge for the next 90 days. o If you have DMC’s medical plan through United Healthcare call Telehealth 855- 615-8335 or visit www.myuhc.com/virtualvisits o Call Healthcare Solutions (On-Site Clinic) 602-424-2101 for telehealth and directions for healthcare. Your primary care provider may also offer telehealth options for other medical care, in which case your deductibles, co-pays, and coinsurance will apply. Where do I get the COVID-19 test? Call your primary care provider right away if you believe you might have been exposed to COVID-19 or have symptoms such as fever, cough or difficulty breathing. If your health care provider determines you should be tested for COVID-19 and orders the test, they should work with local and state health departments to coordinate testing. The most commonplace for testing is the health care provider’s office or clinic. For the test, a health care provider will need to collect a specimen, which is a nasal or throat swab. Your test may be sent to a location approved per CDC guidelines. This may include a commercial laboratory, a local public health laboratory or the CDC. Will my medical insurance cover the cost of COVID-19 care? Medical Insurance companies are waiving your costs for COVID-19 testing provided at approved locations per the CDC guidelines. This coverage applies to our commercial insured members. We are also supporting self-insured employer customers who chose to implement similar actions. Any care or treatment for COVID-19 will be covered by your health benefits plan. Your deductibles, co-pays, and coinsurance will apply.

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HEALTH

Medical Protocols for all Employees (Cont’d) For employees currently at work who feel sick or if a supervisor believes them to be ill: CDC recommends that employees who appear to have acute respiratory illness symptoms (i.e. cough, shortness of breath) upon arrival to work or become sick during the day should be separated from other employees and be sent home immediately. COVID-19 Symptom: o Cough o Shortness of breath Once the employee is home, he/she should choose one of the options below: o If you have DMC’s medical plan through United Healthcare call Telehealth 855-615-8335 or visit www.myuhc.com/virtualvisits o Call Healthcare Solutions (On-Site Clinic) 602-424-2101 for telehealth and directions for healthcare. o Call your PCP for telehealth and directions for healthcare. o Rest and follow the telehealth instructions from the medical provider. o Communicate with your manager to keep him/her informed. o Employee must provide a medical release from Healthcare Solutions to manager before returning to work. For those employees that call in sick : o If you have DMC’s medical plan through United Healthcare call Telehealth 855-615-8335 or visit www.myuhc.com/virtualvisits o Call Healthcare Solutions (On-Site Clinic) 602-424-2101 for telehealth and directions for healthcare. o Call your PCP for telehealth and directions for healthcare. o Rest and follow the telehealth instructions from the medical provider. o Communicate with your manager to keep him/her informed. o Employee must provide a medical release from Healthcare Solutions to manager before returning to work. o Fever o Chills o Muscle pain o Sore throat o Loss of taste or smell o Diarrhea

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HEALTH

Medical Protocols for all Employees (Cont’d)

1. Employee comes to work with COVID-19 symptoms (fever, cough, or shortness of breath) or develops symptoms during their shift, what do you do? For employees currently at work who feel sick or if a supervisor believes them to be ill: CDC recommends that employees who appear to have acute respiratory illness symptoms (i.e. cough, shortness of breath) upon arrival to work or become sick during the day should be separated from other employees and be sent home immediately. Once the employee is home, he/she should choose one of the options below: o If you have DMC’s medical plan through United Healthcare call Telehealth 855-615-8335 or visit www.myuhc.com/virtualvisits o Call Healthcare Solutions (On-Site Clinic) 602-424-2101 for telehealth and directions for healthcare. o Call your PCP for telehealth and directions for healthcare. o Rest and follow the telehealth instructions from the medical provider. o Communicate with your manager to keep him/her informed. For those employees that call in sick : o If you have DMC’s medical plan through United Healthcare call Telehealth 855-615-8335 or visit www.myuhc.com/virtualvisits o Call Healthcare Solutions (On-Site Clinic) 602-424-2101 for telehealth and directions for healthcare. o Call your PCP for telehealth and directions for healthcare. o Rest and follow the telehealth instructions from the medical provider. o Communicate with your manager to keep him/her informed. 2. Do you need to shut down if an employee is suspected or confirmed to have COVID-19? Follow the CDC cleaning and disinfection recommendations: • Clean dirty surfaces with soap and water before disinfecting them. • To disinfect surfaces, use EPA recommended products for COVID-19, and are appropriate for the surface. • Always wear gloves and gowns appropriate for the chemicals being used when you are cleaning and disinfecting. • You may need to wear additional personal protective equipment (PPE) depending on the setting and disinfectant product you are using. In addition to cleaning and disinfecting, employers should determine which employees may have been exposed to the virus and need to take additional precautions:

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HEALTH

Medical Protocols for all Employees (Cont’d)

3. Do you need to inform other employees? If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality as required by the Americans with Disabilities Act (ADA). DMC will seek guidance of local health officials and refer all employees who worked in that facility to triage with Healthcare Solutions and follow the direction of the medical provider. Information to our members will be directed by the CEO. 4. If an employee reports the suspicion of having been exposed but are not showing symptoms, should I allow them to work? Employee will be referred to telehealth with Healthcare Solutions and follow the direction of the medical provider. 5. What should I do if I find out several days later, after an employee worked, that they were diagnosed with COVID-19? • If it has been less than 7 days since the sick employee used the facility, clean and disinfect all areas used by the sick employee following the CDC cleaning and disinfection recommendations. • If it has been 7 days or more since the sick employee used the facility, additional cleaning and disinfection is not necessary. Continue routinely cleaning and disinfecting all high-touch surfaces in the facility. • Other employees may have been exposed to the virus if they were in “close contact” (within approximately 6 feet or 2 meters) of the sick employee for a prolonged period of time. and refer all employees who worked in that facility to triage with Healthcare Solutions and follow the direction of the medical provider. 6. When can Employees with COVID-19 who have stayed home, stop home isolation and return to work? After the employee has been cleared by Healthcare Solutions and employee has provided a return to work note.

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SECURITY

All relationships in life and in business are built on trust. Having said that, we immediately recognized that we needed to be mindful of the hundreds of contractors, vendors and trespassers outside the Community who could potentially steal from our Club. On March 13, 2020, we engaged our DM Security Team to be vigilant and increase patrols of all areas, knowing that the potential of high unemployment and difficult economic times directly impacts an increase in the crime rate.

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COMMUNICATION During any crisis, internal and external communication is vital. The Senior Management Team immediately began meeting daily via Microsoft Teams, and the CEO began video messages to the entire membership and staff on a weekly basis. During the pandemic, the role of the Marketing and Communications department shifted with a much heavier emphasis on member and staff communications, with more than 4,500 member stakeholders in need of rapidly changing information. While some external activities were paused, a number of prospect marketing measures remained in place. For the purposes of the Playbook, we will outline activities that have been in place in support of prospect marketing as well as member communication, as both areas of our business require the Club to provide detailed information and peace of mind. Prospect Marketing With an aggressive goal of welcoming 125 Equity Golf members in 2020, it was important for Desert Mountain Club to remain active within the marketing space, but active in the appropriate way. We continued to invest in digital advertising efforts with our current banner campaign, which showcases a message reinforcing seven golf courses within one community. This simple brand message is non-invasive, simple and peaceful. Putting prospects minds at ease about what we offer and how we were operating remained critical within the core of our strategy. We conveyed this through a series of email campaigns as well, in partnership with third-party golf media companies and local lifestyle media companies. We felt it was important to reassure those interested that we were here for them with their time was right to engage. We did not issue press releases and stopped posting on our external Facebook and Instagram pages until a week prior to Arizona’s “Stay at Home” order was lifted. Pausing on external social posts was done to avoid the potential for diverse opinions and distracting chatter within our feeds, which would take away from our positive, steady and productive tone and focus. Press releases resumed when we had relevant news about Club programming that was appropriate to promote. Traffic to our website remained steady throughout the months of March and April. Due to restrictions we did not have the ability to tour prospective members, yet in April of 2020, the Club welcomed 11 new Equity Golf members, despite the “Stay at Home” order. A series of new marketing tools were developed during the pandemic, which helped showcase the Club and the many aspects that make Desert Mountain special. Virtual Home Tours First, in the absence of hosting traditional in-person luxury home tours which were in place prior to the pandemic, we created a program called the Desert Mountain Dream Home Tour, a virtual tour of a collection of homes for sale within our community. Through a partnership with our onsite real estate office, we built out a new page on our website listing 12-15 homes with pricing and home details, as well as virtual tours of rich photography and/or video. We began emailing the virtual tour home page to prospective members and the real estate community each week as new listings were added. This caught the attention of a social media writer from Forbes.com, who picked up on our use of social media and the article gave us a nice lift in terms of exposure and website traffic.

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COMMUNICATION (Cont’d)

Interactive Map Although this project was several months in the making, we activated a new interactive map of our community. The map highlights the perimeter of the community, with clickable destinations to browse all of the amenities within Desert Mountain, as well as nearby shopping, entertainment, schools and necessity locales surrounding the Club. Understanding “where you are” when at Desert Mountain is part of every conversation with prospective members, and our sales team is now armed with a visual tool that can be used to explain the area and its benefits to those just learning about us. The Friday Jam Last, one program that began as an internal “feel good” campaign has grown in popularity and social sharing, and we call “The Friday Jam.” The concept is a music video that serves as a recap of all things Desert Mountain that occurred over the course of the week and has served as a great way to keep spirits high and positive. Great music serves as the backdrop for the Friday Jam, with many song requests coming from members who are then thanked and featured in the videos. With this new program, traffic to the Club’s YouTube page, which is accessible to the public has increased. This new program has contributed to a 40% increase in exposure to our social channels in the first quarter, during a time that we were dark on Facebook and Instagram for 2 out of 3 months. Member Communication Our operation is complex, and our communications must provide a clear path for members to retrieve and absorb constantly evolving details whether we are in crisis mode or calmer waters. During the pandemic, as local authorities released new information, restrictions, or lifts on restrictions, we responded top our members with new policy updates within the same day or next day in most cases when appropriate. The Mountain Minute and Dedicated Web Page for COVID-19 updates Prior to the pandemic and as part of our ongoing communications efforts, Desert Mountain produces and distributes two email newsletters per week to help keep members current on club initiatives, activities and events. The “Mountain Minute” as it is called allows members to view updates at-a-glance and sign up for upcoming events through the email. As the need for a higher frequency of time-sensitive communication increased, the Club began work on a series of daily ‘special edition’ dedicated email communications, which would outline policies, procedures and updates in the highly fluid environment. With many members falling within what has been considered the high-risk age category, we believed no amount of communication would be viewed as too much communication. We created a dedicated page to the member website and posted certain emails with longer-term details for members to reference. Our tone remained calm, positive and productive with care and concern at the heart of every message. Knowing we are all in the same storm, we’re also in different boats, and while we understood our daily decisions would not be equally pleasing to all, we remained thorough and consistent with each message. We sourced the Governor’s office and his orders, the Arizona Department of Health and the CDC for policies and guidelines.

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COMMUNICATION (Cont’d)

Signage We issued a series of consistent, high-impact A-Frame signage and smaller handouts to demonstrate to members how to stay safe, where to stand and how to social distance within each of our venues. Message from Damon Videos As an additional outreach effort, we produced a bi-weekly series of 3-5 minute “Message from Damon” videos. With Damon speaking directly into the camera, these messages served as a powerful method to reinforce critical information with a calm, positive tone coming directly from our leader. Both member and staff versions were created, and all videos helped reinforce our commitment to keep our members and staff healthy and safe to the best of our abilities. DM Meals Program Among the brightest silver linings to unfold during the pandemic was born out of a member idea that blossomed into a club-wide fundraiser, the ultimate feel-good program benefitting DM employees, hospital workers and first responders. Members began donating to a fund that would allow staff to prepare and distribute take-out meals each week, totalling between 200-400 meals each week. We helped identify nearby hospitals, police and fire departments and coordinated weekly deliveries for their staff members. Additional meals were also provided and prepared for Desert Mountain employees to bring home to their families. $55,000 has been raised as part of this program with many members committing to weekly donations into the fund. In Other News When not operating in crisis mode, we used some down time to get caught up on projects to include the ongoing development of our member app. We updated and circulated new elements of our brand and style guide to include a standard font for text within internal emails as well as a new power point template. We are updating our HR website as we ramp up for hiring in the coming months and are planning new ad campaigns and prospecting initiatives as our target markets slowly begin to re-open and non-essential travel resumes.

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COMMUNICATION (Cont’d)

In addition to multiple email communications to our members and staff, we infused timely videos from the CEO. Listed below are the dates and links to these communications: To view videos, please copy and paste link into a browser

Video communications from the CEO to our entire membership: 1. March 24, 2020 https://youtu.be/zX5K6mpS7lM 2. April 7, 2020 https://youtu.be/jcZOccY9o0g 3. May 7, 2020 https://youtu.be/R9isvie3LFs Video communications from the CEO to all DMC employees: 1. April 9, 2020 https://youtu.be/zTFV2GRHPE8 2. April 17, 2020 https://youtu.be/cHW-8THb2KE 3. May 1, 2020 https://youtu.be/wS263dbI-vs

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TEAM ORGANIZATION If your division has employees with multi-venue assignments, please identify the team members who travel between the restaurants and clubs and find a way of eliminating or at least severely limiting this. Consider the impact of a Senior Manager becoming ill and having to close every restaurant he/she has visited. Microsoft Teams is your new best friend. Work to identify specific team members to specific areas and assignments. If you are a larger team, your Senior Manager will divide/schedule to limit the physical areas you work. This limits the impact if someone becomes ill. If you do go down the A-B team route, try and take into account any personal relationships within the teams. If you know team members are dating, sharing an apartment etc., just put them in the same group. The chances are they will be seeing each other outside of work anyway which will negate the purpose of splitting the teams.

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FACILITIES RESPONSE AND STANDARD OPERATING PROCEDURES Within hours of the announcement from the President on March 13, 2020, we moved very quickly to secure anti-viral solutions, masks, gloves, paper towels, toilet paper and other health and safety products to ensure we had an ample supply.

Purchasing and Par stock Supplies Ordering: • Double par stock of paper products o Toilet paper: 40 cases on hand o Multifolds towels: 100 cases on hand o Member towels: 16 cases on hand o Facial Tissues: 28 cases on hand • Triple par stock of disinfecting chemicals to o Antibacterial hand soap: 60 gallons

o Disinfecting Chemical (Accu-Quat): 5 gallons of concentrate o Bleach: 30 gallons o All-purpose disinfectant cleaner (One Step): 2 gallons concentrate • Place PPE Order o 3 ply surgical masks: 10,000 o N95 Masks: 200 o Nitrile gloves in all sizes: 20,000 each size o Purchase material for making homemade masks: 300  Black fabric  Elastic for ear straps  Baby changing pads for removable mask filter • Place order for Hand Sanitizer o Hand Sanitizer: 75 gallons o Liquid Hand sanitizer: 40 gallons o 8 oz. bottles with pumps: 500 • Place order for disinfecting wipes Rescheduling/Retrain of Department to Meet Needs of the Club • Retrain staff on implementation of enhanced hygienic and sanitization practices. • Retrain on Social distancing. • Refocus all efforts of staff to sanitizing areas being utilized by membership. • Assess schedule/reschedule to meet the needs of the club. • Schedule a strict 1 person to one area policy to prevent cross contamination of full closure if an employee becomes ill. o Small rolls: 30 rolls o Large rolls: 10 rolls

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FACILITIES RESPONSE AND STANDARD OPERATING PROCEDURES ( Cont’d) Sanitizing: • Assess areas to be shut down; sanitize these areas, lock, and post “Do Not Enter” signs. • Assess areas that are to be left open, sanitize these areas and create a cleaning schedule to maintain area’s safety. • Assign an employee to distribute sanitizer daily. They will focus all efforts on distributing chemicals and PPE to the club’s employees for sanitizing. • Make sure all hand sanitizer/hand soap dispensers are functional. • Hand Sanitizer should be at: o All time clocks o All entry points to the clubhouses Removal of All Communal Items • All towels from locker rooms • All nonessential pump bottles, member items (razors etc.) and dispensers Clubhouse closures and partial use procedures • Adjust EMS to coincide with closures o Set Heating and A/C schedule to match building use hours o Reduce electrical usage by controlling lighting hours • Close all three (3) pools and both spas o Cover pools with solar blankets o Turn off and locked breakers to pool boilers o Elevate chlorine level to 7-10ppm • Turn off and locked breakers to all four (4) steam rooms • Turn off all water features Area coverage and Vehicle usage • Assign one person to each vehicle to reduce cross contamination. • Assign technicians to specific locations and have them maintain that schedule until further notice. If outbreak occurs at one location, we can identify any person that may have been exposed. o All golf course restrooms o All pro shop countertops o All hostess stands o All bars o Any areas of congregation such as a range practice facility

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EXPENSE REDUCTION PLAN

COVID-19 Actions Taken by the Club, March 13, 2020 Pull Together Today to Thrive Tomorrow

During this uncertain time and realizing the medial crisis we face globally will have significant financial impacts on us, we must quickly prepare for this and take action. Our top priority must be to protect our staff and plan for a bright future. I have confidence we will weather this storm, but we need your help to take prudent and appropriate actions immediately. With the cancellation of catering events, member golf tournaments and other lost revenue, we will ask our managers and staff to prioritize all expenses and only incur essential expenses. Please be advised of the below expense freezes that are effective immediately. Once we get through this crisis, we will remove the expense freeze/cuts as appropriate. • Hiring freeze effective immediately • No overtime without prior manager approval • Full-time hours reduced for all hourly personnel from 40 hours to 35 hours per week • No travel and entertainment expense at this time • No education reimbursement –unless already committed • No new uniforms • Removing clothing allowance reimbursements at this time • HR gift cards are frozen and will not be purchased for the time being • No external training expenses • Do not engage non-essential professional consultant services • Do not purchase unnecessary supplies or equipment • No recruiting or temp agency expense • We will explore low cost employee meals that are served safely – more to come here Thank you for your patience and understanding with these changes. Our teamwork and collective efforts today will protect our entire staff and ensure that we are prosperous when this crisis ends.

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MEMBERSHIP SALES ADJUSTMENTS FOR PROSPECTIVE TOURS Membership growth is critical, and our team quickly adjusted Club procedures to confirm to social distancing and no guests, while ensuring we did not slow down membership sales. • When the Governor of AZ issued the Stay at Home order, Membership Sales and the Russ Lyon Real Estate office at our main gate shut down all prospective member tours completely. o Phone conversations and virtual tours were provided to prospects and Agents to best share our Club amenities upon request. o The sales team consisted of the Director of Sales being in office each day, with the remaining sales mangers working from home with office phones and emails all forwarded to their mobile phones. • With Phase I reopening we quickly announced the following protocols: requirements for touring: o Please do your best to limit tours to a maximum of 3, inclusive of the Real Estate Agent o PLEASE read and adhere to any signage that you see around the Club o Please try your best to limit tours to “off peak hours” o Touring after 4:30 p.m. is NOT permitted, with dining reservations now beginning at 4:30 p.m. o When entering the Sonoran clubhouse, we asked all agents to check in with the front desk to inform them that you are touring and ensure that capacity has not been reached  Sonoran is currently by appointment only for our members to work out on the fitness floor, we do not want to hold up a member’s limited appointment due to our tours  Sonoran Fitness (please do NOT enter the Fitness Floor, rather please view the fitness floor from behind the elevated glass observatory location from the lobby area)  Spa (This is one of the most sensitive locations as it is a smaller location with less availability for multiple people at one time) o Please continue to use your best judgment when exposing our members/amenities to clients that have been traveling from high risk areas and that have traveled via commercial airlines o Masks are NOT required to be worn o Please communicate with the DM staff….it is possible that you may have to wait for a few minutes to tour a specific amenity if capacity is already reached at that amenity. o When in doubt, call our membership sales team! 480.595.4110 as we will help you facilitate access with our DM teammates Don’t forget to share our Interactive Map with your clients, it is a great way to see all amenities if you are not able to physically tour! https://desertmountain.com/guide-map/

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EMPLOYEE ASSISTANCE FUND At the start of the COVID-19 pandemic, many members thoughtfully approached the Board and the Senior Management Team asking what they could do to help our staff in these challenging times. In response to this generous gesture, on March 13 with the full support of the Board, an email was sent to our members requesting voluntary contributions to the Employee Assistance Program. We requested that any contributions be made to this Fund rather than directly to the employees as many of our staff work for the member experience behind the scenes and may be in the greatest need. These funds were carefully managed to go directly to team members most impacted by less work, loss of gratuities, or reduced income due to the changes we implemented in our business. Management and salaried employees were not eligible to receive any funds. In total, $297,635 was collected from the generous contributions of our members. These funds were distributed over three (3) pay periods, starting with the April 10 payroll. To date, we have paid out $281,932.98 (including payroll taxes) over three pay periods. Approximately 510 hourly employees have received funds to compensate for lost hours or commissions. The last infusion of funds to our hourly employees was on the May 8 payroll and at this time, we continue to receive a small amount of contributions from our generous members. Our team members are very appreciative of this generosity during this difficult time.

EMPLOYEE AND HOSPITAL MEALS We have ~$60,000 in donations and a total of 3,482 total meals have been donated as follows: o Healthcare Workers (Mayo, Banner and Honor Health) - 1,096 meals  Scottsdale Police Department that serves Desert Mountain – 100 meals  DMC/ HOA security team and their families o Employees – 2,386 meals have been provided for the families of our employees o The funds will last through the end of May. Meals were prepared fresh and hot and delivered by our team directly to the hospital networks. The employee meals were prepared as take-home meals on Friday evenings for every member of an employee’s family.

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GOLF OPERATIONS Throughout this ever-evolving situation, the membership was encouraged to “get out” and take advantage of the Club’s seven world-class golf courses while continuing to be cognizant of “Social Distancing” recommendations. The spring tournament schedule was canceled, and all guest play was eliminated. The courses remained opened for general tee-time play with normal operating hours. Additionally, each of the Club’s five weekly golf leagues were also able to continue while operating on a strict, tee-time only basis. In an effort to reduce and/or eliminate as many “high contact” touch points as possible, the Golf Team made a number of changes throughout the operation that included the elimination of bunker rakes and the introduction of pool noodles in the bottom of the cup that allowed golfers to putt out without having to put their hand into the hole. Excerpts from Member Communications: EXTRA PRECAUTIONS ON THE GOLF COURSES 1. Be mindful of your personal space, keeping at least six feet from other players. 2. Due to the high demand of single-rider golf cart use, please consider walking or alternating driving the golf cart while your partner walks in order to maintain social distance. 3. Please leave the flagstick in the cups throughout the round (USGA approved). All cups have been adjusted as pictured below. This will allow you to remove your golf ball without putting your hand in the hole.

4. All bunker rakes have been removed. Please smooth out the bunker with your foot or club. 5. Don’t handle other players’ clubs. 6. Wash your hands several times during the round. 7. Forego the traditional handshake after holing out on the 18th. If you must, offer an tip of the cap or perhaps a bow.

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GOLF OPERATIONS (Cont’d) Although the Club’s golf instructional facility, the Jim Flick Golf Performance Center, was closed at this time, Desert Mountain’s teaching professionals remained available for individual lessons that could be scheduled for alternate outdoor locations by contacting the instructor directly.

Frequent sanitation of the Club’s golf car fleet has and continues to be paramount as the staff disinfects all major touch points on each vehicle after every use. Desert Mountain uses a locally-made disinfectant known as Accu-Quat that successfully combats coronavirus. The chemical is distributed to all operations on a daily basis by our facilities team, but not before being tested for the proper parts per million so as to ensure all mixes are the strongest (but still safe) virucide we have. Beginning March 27, all Outside Service attendants began wearing gloves at all times. Members were given the option to handle their own clubs if so desired, and all club cleaning services were suspended at this point. To further eliminate risk in any high-contact areas, the decision was made to remove all range furniture from the practice facilities along with all towels. On-course ball washers were also eliminated, and the many score posting kiosks throughout the Golf Shops were shut down to encourage members to use their phones or computers instead. The following communication outlined many of these changes that went into effect: ENHANCED SANITATION & SAFETY PROCEDURES IN GOLF OPERATIONS There are no new golf hours of operations or policy changes at this time. Please see below for clarifications and additional health and safety practices. • Single carts are available to anyone who requests them. We ask our members to respect that many need a cart to play and to yield to those who need it the most. • All Outside Services will be wearing gloves. • All shag bags and practice ball pushers have been removed from the short game area • Upon arrival, please indicate if you’d like the Golf Staff to handle your clubs and/or other items. • Please note that you can check-in for your round with any Outside Service Staff. • Club Cleaning Service will be suspended until further notice. • Upon completion of your round please feel free to take your clubs directly to your vehicle. If you prefer the Golf Staff assist, please let them know. • Please download the GHIN Mobile app to post a score or email/call the Golf Shop to post a score for you. The modified USGA guidelines are in place for play and posting. • Towels will be removed from all Practice Facilities. • Ball washers will be removed from all golf courses. • Tees, ball markers and divot tools will be available upon request. • Practice Facilities will have bag stands and range balls only.

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GOLF OPERATIONS (Cont’d)

Frequent sanitation continues at all facilities and with every golf cart and push cart between rounds. Members are spotted practicing social distancing while playing golf. It's our new normal right now and embracing these changes will help keep our members and staff safe and healthy. Thank you for doing your part each and every day. Effective March 30, the decision was made to suspend all guest activity and limit the usage of all Club facilities to only Members and their Immediate Family (spouse/significant other and unmarried children under the age of 25). At the same time, the Club now required all golfers to take their own solo golf cart unless they were riding with someone from the same household. NO GUEST POLICY IN EFFECT As stated in Monday's communication, the Board of Directors and Senior Management team put in place a no guest policy effective now until further notice. This is solely to protect the health and well-being of our members and staff given the growing trajectory of the virus, new Federal guidelines, and Governor Ducey's Executive Order reinforcing an extension of the CDC policies for social separation until the end of April. Who is allowed to use the Club's facilities? Members and Immediate Family only, which includes spouses or significant others and unmarried children under the age of 25, per the Club Bylaws. All other guests are restricted from using all Club facilities, including golf, tennis, pickleball, golf croquet, Dog Park, playground, The Ranch complex, and takeout dining services. We strongly encourage you to limit guests at least until the end of April, unless

Federal, State or local guidelines change. SOCIAL DISTANCING AND GOLF CARTS

To maximize every opportunity for social distancing and safety on our golf courses, we encourage our golfers to walk and carry, use pushcarts, walk-behind carts, or use a forecaddie. Solo carts will now be required, except for those in the same household. We strongly encourage the use of the alternative methods noted above. This will allow us to accommodate as many golfers with restrictions as possible to enjoy the course.

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GOLF OPERATIONS (Cont’d) PLEASE REMEMBER: SOCIAL DISTANCING SAVES LIVES...AND HELPS KEEP DM OPEN Overall, according to the CDC, the most important tool to stay healthy and for the Club to remain open is to maintain social distance no matter where we are. Statewide inspections are happening We are hearing of statewide inspections occurring at golf facilities to ensure social distancing is taking place. As we shared in the April 7 Mountain Minute, this has been happening throughout the country and some clubs have already been closed due to the lack of adherence. While we cannot control what other courses and clubs are doing, we must do our part within our gates! If Governor Ducey is forced to close golf facilities, this would be a game-changer for everyone. We believe we can be successful in keeping our operations open while also being vigilant in our adherence to the federal, state and local mandates. We need all members and staff to create 6 feet of separation with one another. At the same time, the importance of safe social distancing while on the golf course continued to be stressed with the following helpful reminders:

Best practices - How to social distance on the golf courses:

1. Take your own cart or walk the golf courses. 2. Take turns on the small tee boxes so social distancing can be maintained. 3. Continuously putt on the greens then step back for others to play. 4. Use your glove hand to get the ball out of the hole. 5. Tip the cap after finishing the final hole…no handshakes or elbows. 6. Discourage gathering after play. 7. Bring your own hand sanitizer and wipes to supplement our regular cleaning of golf carts between round. The membership has remained extremely active during this time, as evidenced by numerous days in which there were almost 1,000 golf rounds played across the Mountain. With the single cart requirement in place, this has necessitated friendly reminders to promptly return carts following the round so that they can be properly cleaned and available for reuse later in the day: RETURNING GOLF CARTS AFTER PLAY Due to the increased usage of golf carts right now, we are asking all golfers to please immediately return your carts upon completion of play so there are enough carts for all players. As the weather warms up, this will be even more imperative. Thank you for your cooperation.

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SONORAN CLUBHOUSE

Excerpts from Member Communication: CLUB OPERATIONS UPDATES, EFFECTIVE TOMORROW, WEDNESDAY APRIL 8 As you may have read, Governor Ducey instated a new Executive Order to close all spa and salon facilities, and playgrounds due to the inability of these facilities to enforce the 6-foot separation requirements. With this new order, and the need to enforce stricter practices on social distancing throughout the Club, we have made the following changes to our operations. Thank you for your continued patience and support knowing our primary focus is to protect our members and staff. 3. Tennis will remain open with court availability limited to help create distance between players. 3 clay courts (#4, 6, 8), 1 hard court (#2), and the grass court will remain open. 4. Pickleball will remain open with limited court availability. 3 courts will remain open (#1, 3, 5). Tennis and Pickleball Lessons will continue with staff, only, handling all tennis and pickleballs for your safety. 5. Golf Croquet will remain open, but members will need to bring their own mallets and balls. 6. Basketball will remain open for family use; please no random pick-up games. 7. Takeout & Curbside Meals will remain open . In order to reduce contact and uphold the 6-foot distance when picking up your takeout meals curbside, we will ask if you prefer your meal(s) in the backseat, in your trunk, or if you’d like to step out and pick up your meal from the bar service area. Thank you for your support of our takeout meals! Check out this week's Family-Style menu from C/G 8. Package Deliveries: We will discontinue accepting member’s deliveries and packages at C/G as we are currently receiving dozens of boxes/packages each day that members are sending to the Club, and we are not equipped to handle this volume. 1. Playground at Sonoran will be closed until further notice. 2. In-Home Massages will be discontinued. NEW! IN-HOME FITNESS VIDEOS NOW AVAILABLE Our amazing instructors have uploaded several complimentary fitness videos for you to enjoy at home. Start with Kelly's " 30-minute Everyday Workout ", Josh's " Bootcamp Series " or Christi's " Sassy Dance Class ". We will continue adding new, fresh classes regularly until Sonoran re-opens. Click on the link below to access our Virtual Fitness Channel.

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SONORAN CLUBHOUSE (Cont’d) Beginning Monday, April 27, we will be offering outdoor fitness classes in the mornings, Monday-Friday. Classes will take place on the grass tennis court at Sonoran with social distancing indicators staked into the grass, 6-feet apart. Each class will be limited to a maximum of (9) members in order to maintain the appropriate distance. These classes will be conducted with no equipment but are sure to provide a great total body workout. Due to the limited class size, all classes will require online registration through the member website, which will open (8) days prior to each class. To register, please click on the available classes below or visit the fitness calendar to see the full schedule. Monday, April 27 7 a.m. - Boot Camp with Josh

8 a.m. - Pilates with Emily 9 a.m. - Yoga with Emily

Tuesday, April 28 7 a.m. - Sculpt with Tabitha 9 a.m. - Stretch & Tone with Corinne

Wednesday, April 29 7 a.m. - Golf Fit with Kelly 8 a.m. - Ballet Fit with Christi 9 a.m. - Sassy with Christi

Thursday, April 30 7 a.m. - Sculpt with Tabitha 9 a.m. - Stretch & Tone with Corinne Friday, May 1 7 a.m. - HIIT & Stretch with Matt 8 a.m. - Yoga with Matt 9 a.m. - Fit Walk with Corinne

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SONORAN CLUBHOUSE (Cont’d) Please Note:

• Please bring your own water bottle or beverage, as there will be no interior access to the Sonoran Clubhouse (Café Verde will be open for takeout lunch beginning at 11 a.m., Monday-Wednesday). • With the no guest policy still in effect, all outdoor fitness classes are open for members and their immediate family only (spouse, significant other and unmarried children under 25). • Please refrain from congregating before and after class and maintain social distancing at all times. • If strong support for these classes exist, we will gladly work on adding more to the schedule. • The grass court will open for tennis play beginning at 11:30 a.m. each day.

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Member Communication Dated March 17, 2020 Effective Wednesday, March 18: • All clubhouse restaurants, except for take-out service, will be closed through March 31. • Take-out curbside service options at most of our dining facilities will be ramped up to serve our members. See schedule below . • Club-sponsored events have been cancelled or postponed through April 30, to include Easter Brunch, Spring Carnival, Breakfast with the Bunny, Seder dinner, wine dinners, social activities and gatherings, shotgun golf tournaments, youth events, camps and activities, and bocce leagues. • The Sonoran Clubhouse and pools will be closed. All other outdoor recreational facilities will be open. • All seven golf courses will be open for tee-time play during normal operating hours. Dining • All clubhouse restaurants, except for restrooms where appropriate, will be closed. • We will continue to provide take-out food and beverage options for breakfast, lunch and dinner. See schedule below . Golf • All golf courses are open with normal operating hours for tee-time play. • Golf pro-shops are open for check-in and merchandise needs. • League play will be available by tee-times only. • All Club-tournaments and shotgun events (except for the Club Championships with a small field and tee-time format) have been cancelled or postponed through April 30. • If flag sticks need to be touched, please be sure to use your glove hand. • Please use your glove hand when raking bunkers or smooth out the bunker with your foot. • The Jim Flick Golf Performance Center will be closed through March 31. Contact your golf instructor for alternate location options. • Valet services will be suspended at this time and shuttle service from cars to golf facilities will increase. Sonoran • Interior spaces throughout the Sonoran Clubhouse will be closed through March 31 (professional deep cleaning will take place during this time). • Outdoor areas to include tennis, pickleball, golf croquet and bocce are available for member use, and our professional team will be working to support these activities. Please make a reservation to use these facilities as you would normally. • All group exercise classes have been cancelled until further notice. • Personal training will be available through the Club by appointment, to be held outdoors or at a member’s home.

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