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INTERMEDIX HOLDINGS INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements December 31, 2010 expenses). Approximately $1.3 million in transaction related fees and expenses were paid to PCap by the Predecessor, of which $1.0 million related to the Merger and $0.3 million related to the April 2010 acquisition of Systems. Related Party Note Payable As part of an acquisition in 2005, the Predecessor issued a note payable in the amount of $12.5 million to a member of the then board of directors in exchange for that director's ownership shares in the acquired company. The director also simultaneously executed a $12.5 million note receivable for LLC Units in the Predecessor's Parent (both transactions combined constituted such director's Equity Rollover). In April 2010, the Predecessor repaid the note payable to director by offsetting it against the note receivable owed by director to Parent of Predecessor and paying the director approximately $0.7 million which was the differential in accrued interest between the two notes. (14) Benefit Plan The Company provides a 401(k) plan for the benefit of eligible employees as defined by the plan. The 401(k) plan does not require a Company match. Any employer match is at the discretion of the Company. During the Successor and Predecessor periods, the Company and the Predecessor agreed to match 50% of participating employees' first 6% of compensation amounting to $0.2 million and $0.4 million, respectively. At December 31, 2010, $0.6 million was accrued and included in "Accrued payroll and related benefits" in the accompanying consolidated balance sheet. The accrual was paid in March 2011. (15) Commitments and Contingencies (a) Litigation The Company is from time to time involved in litigation arising in the ordinary course of business. It is the opinion of management, after consulting with its legal counsel, that the outcome of such cases will not have a material adverse impact on the consolidated financial position or results of operations of the Company. (b) Lease Commitments The Company leases office equipment and conducts its operations from leased office space located in Oklahoma City, Oklahoma; Jacksonville, Fort Lauderdale and Miami, Florida; Oakland, San Diego, Folsom and Arcata, California; Denver, Colorado; Houston, Austin, and San Antonio, Texas; Mechanicsburg, Pennsylvania; Milwaukee, Wisconsin; and Columbus, Ohio. The leases expire on various dates through December 2013. Under the terms of most of the leases, the Company is required to pay all taxes, insurance, and maintenance. 29 (Continued)