Arbor Realty Collateral Management LLC

ITEM 5.          FEES AND COMPENSATION

    CLOs. Pursuant to the existing agreements with the CLOs, as compensation for the performance of its
    obligations as collateral manager and investment advisor, ARCM is entitled to receive fees, payable
    quarterly in arrears, equal to certain percentages of assets under management. These fees are allocated
    and paid in accordance with the designated “Priority of Payments” or waterfall payments.

    The treatment, calculation, and payment of ARCM’s fees are described in further detail within the
    agreements executed by and between ARCM and its clients.

    Certain organizational and structuring fees and expenses, including legal fees and expenses of counsel of
    ARCM are to be paid from a portion of the gross proceeds from the issuance and sale of securities.
    Additionally, the hiring and retention of independent consultants, accountants, legal advisers, vendors
    (i.e. paying agents, etc.) by, or on behalf of, the CLOs in connection with certain services provided by or
    duties performed by ARCM and reasonable travel expenses undertaken in connection with the
    performance by ARCM of its duties as collateral manager, each as described in the applicable governing
    documents, shall be covered by the respective client. The CLOs, as detailed within the governing
    documents, and as directed by ARCM and/or other designated persons, may from time to time incur other
    types of fees and expenses from its other service providers or in the operation of its business, including
    but not limited to distribution fees, servicing fees, special servicing fees, administrative fees, audit fees,
    and printing costs. Otherwise, ARCM is responsible for all expenses and costs incurred by it in the course
    of performing its obligations under its agreements with the CLOs.

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

    Neither ARCM nor any of its supervised persons are compensated for the sale of securities or other
    investment products.

    Private Funds. Private Fund investors will pay operating expenses, capital expenditures, other expenses
    relating to due diligence and transaction costs, legal fees, servicing fees, origination, commitment
    and underwriting fees, exit fees, liquidation and dissolution expenses, extension fees, workout fees,
    special servicing fees, loan fees, brokerage fees, custodian fees, real estate taxes, utility costs, insurance,
    maintenance, repair, management and leasing expenses, accounting fees, attorneys’ fees, fees for other
    professional services and other fees and expenses that may be payable under the governing documents
    relating to any Private Fund and its investments. The Firm is not currently receiving incentive based
    compensation in respect of its Private Funds.

ITEM 7.          TYPES OF CLIENTS

    ARCM was initially established for the purpose of providing collateral and loan obligation management
    services for the CLOs. Currently, ARCM exclusively provides its services to collateralized debt
    obligations, pooled investment vehicles, and certain investment funds, including Private Funds. Given

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    ARCM’s select client base, it does not currently have a need for establishing particular guidelines in
    connection with opening or maintaining an account, with exception of a management or advisory
    agreement executed by both parties governing the terms of the relationship.