12. Commitments and Contingencies Operating Leases Prior to November 1, 2010, the Company leased its principal administrative and distribution facilities in Carlsbad, California, under a month to month operating lease with monthly payments of approximately $38,000. On November 1, 2010, the Company entered into a 38 month facility lease for the same facility, which commenced on November 1, 2010 and terminates on December 31, 2013. The facility lease has total lease payments of approximately $1.1 million and average monthly rent payments of approximately $29,000. O21 Europe leases a warehouse facility in Varese, Italy, which is used primarily for international sales and distribution and also leases a car. LEM leased two buildings in Italy that were used for office space, warehousing and manufacturing. The Company also leases certain computer equipment, vehicles and temporary housing in Italy. Rent expense was approximately $108,000 and $149,000 for the three months ended June 30, 2011 and 2010, respectively. Rent expense was approximately $218,000 and $311,000 for the six months ended June 30, 2011 and 2010, respectively. Future minimum rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows: (Thousands) Year Ending December 31, 2011 $ 219 2012 431 2013 434 2014 72 Thereafter 54 Total $ 1,210 Capital Lease Future minimum lease payments under capital lease at June 30, 2011 are as follows: (Thousands) Year Ending December 31, 2011 $ 34 2012 69 2013 48 2014 38 2015 38 Thereafter 16 Total minimum lease payments 243 Amount representing interest (30 ) Present value of minimum lease payments 213 Less current portion (56 ) Long-term portion $ 157 Athlete Contracts As of June 30, 2011, the Company has entered into endorsement contracts with athletes to actively wear and endorse the Company's products. These contracts are based on minimum annual payments totaling approximately $734,000, $335,000 and $239,000 in 2011, 2012 and 2013, respect