Arbor Commercial Mortgage LLC

ITEM 5 FEES AND COMPENSATION

    ACM's clients are generally qualified purchasers as defined in section 2(a)(51)(A) of the Investment
    Company Act of 1940, as amended. Accordingly, a detailed client fee schedule is not included in this
    Brochure. However, pursuant to the Management Agreement, as compensation for the performance of
    its obligations as manager, ACM is entitled to receive compensation in the way of (i) cost
    reimbursement for the costs incurred by ACM in performing its stated duties, (ii) a Company provided
    waiver of exit fees on those Investments refinanced through permanent financing provided by ACM,
    and (ii) an annual incentive fee (the “Incentive Fee”). All compensation is allocated and paid in
    accordance with the provisions set forth in the Management Agreement. Costs are reimbursed and the
    Incentive Fee is charged annually or monthly in arrears, depending on the fee and annual Incentive
    Fees are periodically advanced on a quarterly basis and deducted from the Company's assets.

    The treatment, calculation, and payment of ACM’s compensation are described in further detail within
    the Management Agreement. Certain administrative, organizational, and structuring fees and
    expenses, including legal fees and expenses of counsel of ACM are to be paid through the cost
    reimbursement structure, as governed by the Management Agreement and a budged mutually agreed
    upon by ACM and the Company. Otherwise, ACM is responsible for all expenses and costs incurred
    by it in the course of performing its obligations under the Management Agreement, except for the
    credits earned through (i) the special servicing fees generated by the Company’s securitization vehicles
    and (ii) the cost of services provided by the Company’s Asset Management Group to ACM.
    Reasonable travel expenses undertaken in connection with the performance by ACM of its duties as
    manager are also to be covered by the Company.

    Any other management agreement entered into by ACM and a client would have a specific fee and/or
    compensation structure as agreed to and approved by both parties.

    If a client elects to terminate its management agreement with ACM, any accrued fees owed to ACM
    will be prorated, as required, and charged to the client.

ITEM 7 TYPES OF CLIENTS

    ACM was established for the purpose of acting as a national direct lender, providing debt capital for
    the multifamily and commercial real estate industries. ACM, in addition to its stated objectives, was
    hired to provide management services for the Company, which comprises a pooled investment vehicle
    and its wholly owned subsidiaries. Currently, ACM exclusively provides its management services to
    the Company. Given ACM’s select client base, it does not currently have a need for establishing

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    particular guidelines in connection with opening or maintaining an account, with exception of a
    management agreement, executed by both parties, governing the terms of the relationship.