Eagle'S Trace Inc

“Under the bylaws of the organization, the board has delegated authority to an executive committee comprised of the organization's chairman, president, secretary and treasurer. The executive committee has and may exercise all of the powers and authority of the board in the management of the business and affairs of the organization except for those actions reserved solely to the member or the directors under the general laws of the state of maryland.”

“Eagle's trace, inc. Entered into an amendment to the existing amended & restated management agreement already in effect with erickson living management, llc ("elm"). The amendment was effective as of march 22, 2018 and made changes to certain defined terms in the agreement. Elm is a maryland limited liability company which manages large scale continuing care retirement communities. The following officers are listed in part vii, as non-compensated officers of the filing organization, john hall, james walter, and chris rathmann. Their duties are considered performed pro bono. Stephen aigner, executive director, shirley gleuck, director of finance (thru 3/30/18) and joshua chang, director of finance (beg 1/8/18) are leased employees from the management company. The filing organization reimburses the management company for their compensation which is reported on form 990, part vii, section a.”

“The bylaws were amended to provide for a 16 member board of directors.”

“Eagle's trace, inc.'s sole member is national senior campuses, inc. ("nsc"). Nsc is a maryland non-stock corporation. Nsc is a "supporting organization" with respect to eagle's trace, as well as certain other organizations specified in its governing documents. As required by the regulations relating to "supporting organizations," certain members of the board of directors of nsc will also be members of the board of directors of the organization.”

“The board of directors may nominate a slate of candidates for consideration by the member, but the member has sole discretion to elect directors whether or not nominated by the board of directors.”

“Certain extraordinary actions of the corporation require the approval of the member under applicable state law. Under the organization's bylaws, certain governance decisions are made by the board with the consent of the member as shared powers and certain governance decisions are reserved to the member. Shared powers include amendments to any of the community documents (except where it involves a reserved power), approval of all contracts with or payments to the member or other related entities (other than governance costs of the member), authorizing the filing of any bankruptcy, changes to shared powers, a significant expansion or new line of business just involving the organization, and selection of the management company. Reserved powers of the member include: approval of policies affecting more than one community; sponsorship of a new community; payment of reasonable amounts to cover the member's operating costs; the execution of joint purchase contracts or similar agreements along with affiliate(s); the disposition or pledge of all or substantially all of the organization's assets (other than a pledge in connection with an asset or financing transaction); compensation of officers, directors and advisory committee members; and approval of contracts, amendments, etc. Affecting the organization and one or more related entities or the residents of their communities.”

“The board appoints a committee from among its directors as well as the directors from one or more related entities to oversee the preparation of form 990. The board chair has the responsibility to review form 990 prior to its filing or to designate another board member to review the form. The full board is given the opportunity to review the final version of form 990 before it is filed and ask questions of the committee or the reviewer regarding the form. The board chair designates an officer to sign form 990.”

“Eagle's trace, inc.'s conflict of interest policy covers all directors, officers, key employees, employees and volunteers in a position to exercise substantial influence over eagle's trace, inc.'s affairs, committee members, prospective directors, and senior staff providing services to the organization under a management agreement. Each covered person completes a conflict of interest disclosure statement annually and as potential conflicts arise during the year. These statements are reviewed by the board chair. If the conflict involves a covered employee, the chair determines whether a conflict exists and, if so, how it is to be handled, or the chair may refer the matter to the board of directors for consideration. For all other conflicts, the board of directors or a committee of disinterested directors will determine whether a conflict actually exists. A covered person may not participate in any discussion or debate by the board but may answer questions or provide clarifying information unless any board member objects.”

“The board has approved a directors' compensation policy which establishes the process by which all director compensation is determined. Officers serve without compensation. A review of the directors' compensation is conducted each fiscal year. Compensation is approached on an overall basis and the total value of all forms of compensation is established and monitored. An independent compensation consultant is periodically retained to perform an analysis of eagle's trace, inc.'s compensation using comparables of both for-profit and non-profit peers. A committee of the nsc board reviews the consultant's report and makes a recommendation to the organization as to appropriate compensation of directors. The committee of the nsc board has access to the consultant's report and an opportunity to question the consultant about the process, metrics, and comparables that were used in determining the recommended compensation. The board then votes on the compensation recommendations and a contemporaneous record is made of the meeting and the vote. Nsc commissioned a compensation study in 2017. It was approved by nsc in 2017 for implementation april 1, 2018. It was approved by nsc acting as the sole member of the community on march 22, 2018. There is a comprehensive compensation review performed annually for the executive director and other key management personnel. The compensation is reviewed, documented, and approved by the board during the budget process.”

“The governing documents, conflict of interest policy, and the financial statements are available upon request at the executive director's office for the same period of disclosure as set forth in section 6104(d).”

“The amount included in column (c) for erickson living management is for payments made for management services and the direct and shared costs allocated to the community. Direct and shared costs include salaries and benefits for management personnel, and the use of services such as finance, legal, human resources, information services, and operations.”

“The compensation included in columns d and e for the board directors is for services performed for the filing organization and all related organizations included on schedule r, part ii.”

“Talon bar net income included on consolidated financial statements -4,355. Reversal of prior amortization -4,400.”

“An amended and restated working capital loan agreement (the "loan agreement") was made on october 19, 2017, which amended and restated in the original working capital loan agreement between eagle's trace, inc. And redwood dated april 30, 2010. The purpose of the amendment and restatement was to increase the maximum principal amount available to eagle's trace, inc. From redwood to $12,100,000. The outstanding loan balances on december 31, 2018 and 2017 are $7,021,939 and $8,544,733, respectively.”