Orbit Garant 2012 annual rep O rt 51 Customer Drilling Noncompete relationship technology a agreement Total Accumulated amortization Balance as at July 1 2010 13257 1503 14760 Amortization 1026 484 1510 Balance as at June 30 2011 14283 1987 16270 Amortization 1174 582 308 2064 Balance as at June 30 2012 15457 582 2295 18334 Net book value July 1 2010 767 607 1374 June 30 2011 2681 2912 493 6086 June 30 2012 2557 2330 185 5072 a The drilling technology has not been amortized during the year ended June 30 2011 because it was still in development 12 LONGTERM DE b T June 30 June 30 July 1 2012 2011 2010 Loan authorized for a maximum amount of 40 million bearing interest at prime rate plus 05 maturing May 2015 secured by frst rank hypothec on the universality of all present and future assets a b 25590 14618 Loans bearing interest at rates ranging from 0 to 15 payable in monthly instalments of 39 maturing in September 2014 secured by certain vehicles of a net book value of 1183 as at June 30 2012 550 as at June 30 2011 and 552 as at July 1 2010 782 223 375 26372 14841 375 Current portion 401 168 203 25971 14673 172 a The rate is variable based on the quarterly calculation of a fnancial ratio and can vary from prime rate plus 05 to 150 As per certain conditions the credit facility can be increased by an amount of 20 million up to a maximum authorized amount of 60 million b An unamortized amount of 210 276 as at June 30 2011 and nil as at July 1 2010 representing fnancing fees has been presented in deduction of the longterm debt This amount is being amortized to earnings over the term of the debt usi ng the effective interest method Under the terms of the longterm debt agreement the Company must satisfy certain restrictive covenants as to minimum fnancial ratios note 13 On June 30 2012 the prime rate was 3 3 as at June 30 2011 and 25 as at July 1 2010 Principal payments required in each of the next three years are as follows 2 0 1 3 4 0 1 2014 316 2015 25865