On December 29, 2014, the Board of ARC Realty Finance Trust, Inc. appointed Dr. Robert J. Froehlich, currently an independent director and chairman of the company's audit committee, as lead independent director. The Board has appointed a lead independent director to provide an additional measure of balance, ensure the Board's independence and enhance the Board's ability to fulfill its management oversight responsibilities. The lead independent director chairs meetings or executive sessions of the independent directors, reviews and comments on the Board's meeting agendas, represents the views of the independent directors to management, facilitates communication among the independent directors and between management and the independent directors, acts as a liaison with service providers, officers, attorneys and other directors generally between meetings, serves as a representative and speaks on behalf of the company at external seminars, conferences, in the media and otherwise assumes such responsibilities as may be assigned to him by the Board.

Consistent with current practices, the company will compensate Dr. Froehlich for acting as lead independent director.