Drive Shack Inc

Item 5 - Fees and Compensation
All investors and potential investors should review the Governing Documents for the Clients in conjunction
with this brochure for more complete information on the fees and compensation payable with respect to the
Clients.

Drive Shack and NIC receive an asset based fee ranging from 0.13% - 0.20% of collateral balances under
management, less any defaulted assets in the portfolio. Asset based fees are generally payable monthly or
quarterly in arrears based on the total amount of collateral as the end of each month or quarter. The trustees
of the Clients pay the asset based fees according to a payment priority schedule described in the Governing
Documents. The management fees may vary by Client. The Governing Documents will specify the fees
applicable to the Client.

Drive Shack and NIC may receive fees for acting as auction agent for the Clients. The fees for this activity
are described in the Governing Documents of the Clients.

In addition to asset based fees, investors in the Clients bear expenses including, but not limited to, investment
related expenses such as the Client’s brokerage commissions including liquidation agent transaction fees,
interest on margin accounts and other indebtedness, custodial fees, bank service fees, withholding and

transfer fees, transfer, income, stamp and other taxes and duties, taxes, corporate licensing fees, Trustees’
expenses as applicable, legal and auditing expenses, accounting, fund administration, filing fees and
expenses, CDO organizational costs and wind down expenses. Drive Shack bears its own expenses,
including office space and utilities, computer equipment and software and secretarial, clerical, employee
related and other personnel. Not all Clients will bear all of the same types of expenses. The Governing
Documents will specify the expenses to be borne by the Clients.

Investors should review the Client’s Governing Documents for more detailed information about the expenses
borne by the Client.

Item 7 -Types of Clients
As mentioned in Item 4 above, Drive Shack provides investment advisory services to the issuers of CDOs.
Investment advice is provided directly to the CDO Clients and not individually to investors in the CDOs.