My question was about the increase in management fees that some noticed in the latest quarter - got a prompt response from Purvi:

Thank you for your question. I can answer over the phone – it may be easier to talk through. Our management fees are spelled out in the 10-K – in note 12 (I believe that is page 95). We are actually in the middle of filing our 10-Q. The breakdown should be more apparent – and that is scheduled to come out on Monday. If at that point you still have questions – please feel free to get in touch with me.

Thank you,
~Purvi Kamdar

Sent: Thursday, November 05, 2009 6:01 AM
To: Purvi Kamdar
Subject: question about your RCC earnings release

Hi Pirvi - I am an individual investor in RCC - I hold about 60K RSO shares and have been following your recent earnings report and cc. replay.

Several of us on the various discussion boards noticed this item in your balance sheet released on Tues regarding operating expenses below. In this economic climate, we were surprised to see the large increase in the management fees - 3.9 million, up from 1.9 the same 3 month period the prior year, which negatively effects the RSO operating income proportionally. Could you please explain?? The same goes for the 'equity related compensation' item as well. We were hoping someone on the call would ask this question, but I guess none were able to, and we would appreciate any light you can shed on the matter.

OPERATING EXPENSES
Management fees - related
party 3,954 1,915 5,880 4,824
Equity compensation -
related party 721 157 1,074 779
Professional services 739 773 2,792 2,229
Insurance expenses 220 171 609 469
General and
administrative 410 421 1,256 1,119
Income tax expense
(benefit) 6 (33) 5 134
---------- ---------- ---------- ----------
Total expenses 6,050 3,404 11,616 9,554
---------- ---------- ---------- ----------

NET OPERATING INCOME 7,248 10,244 26,953 31,263