NOTE 15 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

In the ordinary course of its business operations, the Company has sponsored and manages investment entities. Additionally, it has ongoing relationships with several related entities. The following table details these receivables and payables (in thousands):



	March 31, 2016		December 31, 2015
Receivables from managed entities and related parties, net:
Real estate investment entities	$	14,314	$	21,146
Commercial finance investment entity	1,044		1,289
Financial fund management investment entities	1,271		1,582
Other	167		319
RSO	2,888		2,331
Loan to CVC Credit Partners	2,743		—
Receivables from managed entities and related parties	$	22,427	$	26,667

Payables due to managed entities and related parties, net:
Real estate investment entities ⁽¹⁾	$	2,776	$	3,110
Other	35		35
Payables to managed entities and related parties	$	2,811	$	3,145


(1)	Includes $2.7 million and $3.0 million in self-insurance funds provided by the Company's real estate investment entities as of March 31, 2016 and December 31, 2015, respectively, which are held in escrow by the Company to cover claims.

The Company receives fees, dividends and reimbursed expenses from several related/managed entities. In addition, the Company reimburses related entities for certain operating expenses. The following table details those activities (in thousands):



	Three Months Ended
	March 31,
	2016			2015
Fees from unconsolidated investment entities:
Real estate ⁽¹⁾	$	3,156		$	2,187
Financial fund management	774			782
RSO:
Management, incentive and servicing fees	3,745			3,232
Dividends paid	300			458
Reimbursement of costs and expenses	1,037			1,071
CVC Credit Partners: reimbursement of net costs and expenses	219			229
Opportunity REIT I:
Fees	4,617			6,305
Reimbursement of costs and expenses	1,275			888
Dividends paid	44			15
Opportunity REIT II:
Fees	4,790			1,012
Reimbursement of costs and expenses	578			737
Dividends paid	20			7
Innovation Office REIT:
Reimbursement of costs and expenses	621			—
Resource Apartment REIT III:
Reimbursement of costs and expenses	261			—
LEAF:
Payment for sub-servicing the commercial finance investment partnerships	(12		)	(23		)
Reimbursement of net costs and expenses	36			36
1845 Walnut Associates Ltd:
Payment for rent and related expenses	(214		)	(207		)
Property management fees	47			38
Brandywine Construction & Management, Inc.: payment for property management of hotel property	(52		)	(52		)
Atlas Energy, L.P.: reimbursement of net costs and expenses	29			13
Ledgewood P.C.: payment for legal services	(35		)	(34		)
Graphic Images, LLC: payment for printing services	(26		)	(48		)
9 Henmar LLC: payment of broker/consulting fees	(3		)	(3		)


(1)	Includes discounts recorded (reversed) of $6,000 and $(207,000) for the three months ended March 31, 2016 and March 31, 2015, respectively, in connection with management fees from the Company's real estate investment entities that it expects to receive in future periods.


(2)	The Company waived management fees from its commercial finance investment entities of $7,000 during the three months ended March 31, 2016 and $49,000 during the three months ended March 31, 2015.

Relationship with RSO. Since March 2005, the Company has had a management agreement with RSO pursuant to which it provides certain services, including investment management and certain administrative services, to RSO. The agreement, which had an original maturity date of March 31, 2009, continues to renew automatically for one-year terms unless at least two-thirds of the independent directors or a majority of the outstanding common shareholders agree to not renew it. The Company receives a base management fee, incentive compensation, property management fees and reimbursement for out-of-pocket expenses. The base management fee is equal to 1/12th of the amount of RSO’s equity, as defined by the management agreement, multiplied by 1.50%. In October 2009, February 2010 and March 2012, the management agreement was further amended such that RSO will directly reimburse the Company for the wages and benefits of RSO's chief financial officer, an executive officer who devotes all of his time to serve as RSO’s chairman of the board, and a sufficient number of accounting professionals, each of whom will be exclusively dedicated to RSO's operations (number and amounts charged are reviewed and approved by RSO's Board of Directors), and a director of investor relations who will be 50% dedicated to RSO's operations. In August 2010, the agreement was further amended to reduce the incentive management fee earned by the Company for any fees paid directly by RSO to employees, agents and/or affiliates of the Company with respect to profits earned by a taxable REIT subsidiary of RSO.

Relationship with Opportunity REIT I. As of March 31, 2016 and December 31, 2015, the Company had a receivable of $539,000 and $277,000, respectively, for reimbursement of operating costs and expenses.

Relationship with Opportunity REIT II. As of March 31, 2016 and December 31, 2015, the Company had a receivable of $580,000 and $4.9 million, respectively from Opportunity REIT II for offering costs and operating expense reimbursements.

Relationship with Innovation Office REIT. As of March 31, 2016 and December 31, 2015 the Company had a receivable of $3.0 million and $2.4 million from the Innovation Office REIT for reimbursement of offering costs and expenses.

Relationship with Resource Apartment REIT III. As of March 31, 2016 and December 31, 2015 the Company had a receivable of $1.0 million and $739,000, respectively from the Resource Apartment REIT III for reimbursement of offering costs and expenses.

Relationship with CVC Credit Partners. On January 13, 2016, the Company entered into a new loan agreement with CVC Credit Partners which provides for borrowings of up to €3.6 million with interest accruing at Euro Interbank Offered Rate ("EURIBOR") plus 7%. In February 2016 and March 2016, CVC Credit Partners borrowed a total of €2.4 million under this new loan. The Company has consulted with hedging and derivative professionals and has utilized hedging instruments in order to minimize FX exposure.

In February 2014, the Company loaned a non-executive employee $300,000 under a promissory note bearing interest at 3-month LIBOR plus 3%, resetting annually. In December 2014, the Company amended the terms of the note to provide for an initial repayment of $50,000 plus accrued interest, which was paid on March 15, 2015, with the remaining principal and interest due in full on March 15, 2016. The loan was repaid in full on March 8, 2016.