Effective August 1, 2010, the Company extended its office lease agreement for its office for a term of one year with monthly lease payments of $2,100. Since August 1, 2011, the office lease continues at the same rate on a month-to-month basis.

The Company leases the land and buildings for its four restaurants in South Africa through its subsidiaries. The leases are for five year terms and include options to extend the terms. We lease our restaurant facilities under “triple net” leases that require us to pay minimum rent, real estate taxes, maintenance costs and insurance premiums and, in some instances, percentage rent based on sales in excess of specified amounts. On May 7, 2012, the Company, through its subsidiary, signed a lease for the Budapest, Hungary location under similar terms to our South Africa restaurants, except the term is for 10 years. On July 1, 2012, the Company signed an office lease agreement for a satellite office in Florida for one year at a monthly rate of $600. Rent obligations at current foreign currency exchange rates for our five restaurants and the Florida satellite office as of June 30 are presented below:

Rent expense for the three months ended June 30, 2012 and June 30, 2011 was $149,146 and $6,300, respectively. Rent expense for the three months ended June 30, 2012 for the South African restaurants was $142,621, and is included in the “Restaurant operating expenses” of the Consolidated Statement of Operations. Rent expense for the three months ended June 30, 2012 for the management segment was $6,525, and is included in the “General and administrative expense” of the Consolidated Statement of Operations. Rent expense for the three months ended June 30, 2011 was all for the management segment. Rent expense for the six months ended June 30, 2012 and June 30, 2011 was $286,937 and $12,600, respectively. Rent expense for the six months ended June 30, 2012 for the South African restaurants was $273,887, and is included in the “Restaurant operating expenses” of the Consolidated Statement of Operations. Rent expense for the six months ended June 30, 2012 for the management segment was $13,050, and is included in the “General and administrative expense” of the Consolidated Statement of Operations. Rent expense for the six months ended June 30, 2011 was all for the management segment.