National Senior Campuses, Inc.

5525 Research Park Drive, 3rd FloorBaltimore, MD 21228-4664

www.NationalSeniorCampuses.org

8757281

Meet the Ashby PondsBoard of Directors

Who are the board members?

Our board members are independent leaders with particular skills and varied backgrounds valuable to their board responsibilities. The board also includes a “Resident Director” who lives in the community and who is fully engaged and actively participates in all board meetings.

Board members have no conflicting relationships with Erickson Living Management. The board’s independence is a fundamental requirement, since these individuals are charged with providing the hands-on governance of the community as a financial entity and as a regulated health care provider. The board is also responsible for oversight of the successful day-to-day operation of the community by the management organization that is contracted to do so. Brief board member biographies are attached to this brochure.

How are they chosen?

All board members are selected through a rigorous process that begins with identifying what skills the Board needs at that time. Nominated members receive a recommendation from a current board member or others and all members go through in-depth interviews and background checks. They must meet strict standards of personal integrity, proven sound business judgment and demonstrated experience leading not-for-profit boards and organizations. They must also accept the commitment of significant time to the performance of board duties.

Do they live nearby?

Some board members live in this area, while others travel from other parts of this region to board meetings, community events and governance discussions.

What are their qualifications?

Many board members are current or former leaders in financial institutions, accounting firms, or law firms. Others bring needed experience and skills in other fields, such as medicine, health care facility management, business development or communications consulting. Each is chosen to leverage their decades of experience in these important disciplines and contribute to good decision-making by their fellow board members.

What are the responsibilities of the board of our community?

1. The board is responsible for governance. The board works to provide stable financial health and ongoing viability of the community, to ensure residents’ needs are met today, and that future residents will be able to enjoy the same secure environment, high standard of living and quality of life as described in the Residence and Care Agreement. That means the board must develop and deliver management direction that maintains the community’s fiscal integrity and supports the original principles of its operation.

2. Another core fiduciary responsibility is constant awareness and measurement of the ethical and compliance standards under which the community operates. Each board member has a “duty of care” to ensure management follows and is measured against a clearly-written Compliance and Ethics Plan. For example, as a health care facility, numerous federal and state regulatory rules must be met, and any violations must be reported in a timely manner. The board holds the ultimate responsibility for that “duty of care”, to ensure the community meets all applicable federal and state standards. They do this by asking questions of the management team, requesting documentation and reviewing the compliance and ethics reporting system on a regular basis.

3. The board’s responsibility also includes gathering input from your Resident Advisory Council, employees and management. Each year, the board conducts a Management Performance Evaluation to ensure management team members continue to deliver the highest standards of care and maintain the high standard of resident life you now enjoy. The board contracts with a national survey firm to conduct an annual Residents Satisfaction survey. In addition, the board reviews and approves the annual budget and engages an independent accounting firm to conduct an annual audit for this community.

4. Finally, the board must generate a long-term vision for the community, including strategic planning based on anticipated changes in the economy, the marketplace or in government regulations or laws. As we have all seen, things change, and the board must work to see a bit of the future and take sensible actions to adapt to those changes.

What is National Senior Campuses, Inc., and what is its relation to our board and this community?

National Senior Campuses, Inc. (NSC) is a 501(C) (3) not-for-profit organization that sponsors not-for-profit continuing care retirement Communities (CCRCs) that provide housing, health care, and other related services to seniors at many sites around the country. NSC does this by acting as a “Supporting Organization” that initially creates not-for-profit Communities, the boards of which always have at least one person who also serves on the NSC board. Thereafter, NSC provides ongoing integrated support, oversight, guidelines, policies, and strategic planning.

National Senior Campuses plays a central role in fostering strong, healthy relationships between and among each of its affiliated retirement Communities, as well as with the management company hired by those Communities, Erickson Living Management.

Acting through their board members, NSC and the Communities work closely with Erickson Living, but rigorous conflict-of-interest policies ensure that no director has any personal, commercial, or professional relationship with Erickson Living outside of this enterprise. Likewise, Erickson Living does not select directors for NSC or any of the Communities. NSC appoints the initial slate of directors for each Supported Organization. Thereafter, the individual, not-for-profit community exercises significant autonomy. NSC retains an ongoing role in several areas of governance, operations, budgeting, and finance.

Directors on the boards of both NSC and the Communities serve on several task-oriented Committees that work year-round to share information, and to provide consistent “best practices” and benchmarks in areas of governance and internal affairs, operations and risk management, budget and finance, and treasury and investment. Additionally, directors of NSC and all of the Supported Organizations meet annually with Erickson Living to strengthen the enterprise and share solutions to common problems.

On its own and with its Communities, National Senior Campuses provides a long-term vision of what features the senior housing industry may include in the future. NSC consults with experts in finance and the CCRC industry as it contemplates business models solid enough to ensure excellence and flexible enough to ensure that future needs are met. A related entity, the National Senior Campuses Foundation, provides support and best practices to the Communities in the area of philanthropy.

How can I communicate to the board?

Your Resident Advisory Council is the elected body of this community that provides communication lines to management and the board, along with the Resident Director who serves as a board member. This structure allows issues to be directed to the appropriate people for resolution. For example, the management team would handle questions or comments about resident life, while the board considers ongoing financial stability, regulatory compliance and strategic planning for the future.

ASHBY PONDS ORGANIZATIONAL CHART

Audit Committee

Ashby Ponds, Inc. Board of DirectorsNational Senior Campuses, Inc.

Investment Committee

Executive CommitteeErickson Living

Management, LLC

Ashby Ponds Management Team

LEGEND:

Governance relationship (by charter or bylaws)

Contractual relationship

Supporting relationship

Ashby Ponds Board of DirectorsThe people in the enclosed photographs comprise the board of directors for Ashby Ponds, and they perform vital governance activities to ensure the community meets the highest standards possible—today and tomorrow. They are dedicated to the principles of independence, integrity, accountability and active oversight of this community’s operations and management.

Joanne Malloy Rorapaugh, Chair

Ms. Rorapaugh served as Vice President of Operations for Madison Management (MMC). MMC owned, leased and managed commercial properties in Washington, D.C., including The Madison Hotel. Her responsibilities included the leasing and managing of MMC’s office and apartment buildings, as well as overseeing the office and staff. She also served as Administrator of the Marshall B. Coyne Foundation; overseeing disbursements to various charities. Now retired, Ms. Rorapaugh lives in the Foggy Bottom area of Washington, D.C.

Ashby Ponds NSC Board of Directors | pg 1 of 6

Jim Anders

Mr. Anders is the Administrator and Chief Operating Officer for Kennedy Krieger Institute, Inc., and all subsidiary Managements. Kennedy Krieger Institute is an internationally recognized academic, research, healthcare and educational facility dedicated to serving children and young adults with developmental disabilities and spinal cord injuries. He is responsible for the overall strategic, operational, and financial management of Kennedy Krieger. In addition, he is Chairman of Chesapeake Rehab Equipment, Inc., a Mid-Atlantic rehabilitation company. He has an MBA from the University of Baltimore and is a CPA.

C. Jackson Bain

Mr. Bain is Chair and CEO of Bain and Associates, a strategic communications consulting firm based in Alexandria, VA. Prior to that post, he was Senior Vice President of Public Affairs at the National Association of Children’s Hospitals. A communication expert with 30 years of experience, Mr. Bain joined NBC News in the 1970s where he covered the White House under four administrations, the State Department, Congress, and various overseas assignments. Mr. Bain created and executed major communications programs for many international companies, three foreign governments’ economic development agencies, and numerous trade and professional organizations.

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Maurice A. Bellan

Mr. Bellan is a partner at McGuire Woods, LLP in Washington, D.C. His practice involves a broad range of complex commercial litigation with great depth in the area of internal and government investigations, whistleblower actions, consumer product class actions, trade secrets, and trademark infringement. Prior to joining McGuire Woods, Mr. Bellan was partner in the litigation department of a major Philadelphia law firm and a former trial attorney for the U.S. Department of Justice, Civil Rights Division. He is active in the organization A Better Chance, Inc., which identifies and develops leaders among young people of color.

Eileen Erstad

Ms. Erstad is a senior executive with extensive experience as a Chief Financial Officer in the healthcare, hospitality and financial services industries. Ms. Erstad has developed and implemented strategic plans, growth and reorganization strategies, and also participated in new product development. Her most recent position was Chief Operating Officer for ResortQuest. Her previous positions include Chief Financial Officer and Senior Vice President of Symphony Health Services, LLC; and Director of Financial Planning and Analysis at PHH Corporation. Ms. Erstad graduated Magna Cum Laude from Loyola College in Maryland and is a licensed Certified Public Accountant.

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Betty Price

A retired Air Force colonel, Ms. Price held numerous leadership positions, including commander of a 550-person intelligence group. She recently retired from the MITRE Corporation where she served as a consultant to senior U.S. Government officials. While working at MITRE, she obtained certifications as a personal trainer and FallProof balance program master trainer and devoted increasing attention to her passion, senior fitness. After her parents moved to Ashby Ponds, she spent one day a week for five years at their Fitness Center providing fitness and balance instruction to residents. She assisted in certifying Erickson Living fitness employees in FallProof and participated in several falls-prevention meetings at the corporate level. She currently provides personal training/balance instruction at her DelWebb community in Ashburn, VA, and is an active member of the Vienna Presbyterian Church. Ms. Price holds a Bachelor’s Degree from Whitworth College, Master’s from Stanford University and the Naval War College, and a graduate certificate with honors from the Air War College.

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Stephanie Reel

Stephanie Reel is the Chief Information Officer for all divisions of the Johns Hopkins University and Health System. She was appointed Vice Provost for Information Technology and CIO for the Johns Hopkins University in January 1999. She is also Vice President for Information Services for Johns Hopkins Medicine, a post she has held since 1994. As CIO Ms. Reel leads the implementation of the strategic plan for information services, networking and telecommunications, as well as clinical, research and instructional technologies. Under her direction, the Johns Hopkins Health System is enhancing and advancing the use of an electronic health record, while also embracing a regional health record.

Ms. Reel is a member of HIMSS, CHIME, the Healthcare Advisory Council, the American College of Medical Informatics and EDUCAUSE. She serves on the advisory board of Health Care Information.

Ms. Reel graduated from the University of Maryland with a degree in information systems management and holds a M.B.A. from Loyola College in Maryland.

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Larry Shubnell

Mr. Shubnell retired from Legg Mason, a Baltimore based financial services firm, at the end of 2001 having served as senior managing director for public finance investment banking. Prior to joining Legg Mason he was a public finance officer at each the local, state, and federal levels of government. He also served as an independent financial advisor to companies and public authorities in matters of debt management. He graduated from the University of Notre Dame and George Washington University and holds an MBA degree and a CPA certificate. He has served on the boards of several for-profit and not-for-profit organizations including the United Way and the Historic Annapolis Foundation.

Phyllis Lynne

Ms. Lynne is a Resident Director for Ashby Ponds. She spent her professional career serving in various facets of banking and securities industries, most recently as Director of Wachovia Investments, where she worked with Trading and Sales Management to ensure compliance with industry regulations. Previously, she worked in the Investment Banking area of NationsBank, now Bank of America. After her retirement, Ms. Lynne served as Treasurer for her local homeowners association of Huntington Ridge. During her tenure, Huntington Ridge moved from a community with financial deficiencies to a community with a healthy balance sheet.

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