ORBIT GAR ANT DRILLING INC. NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS (Continued) (Amounts as at March 31, 2008 and for the nine and three months ended March 31, 2008 and for the six and three months ended March 31, 2007 are unaudited) 11. SHARE C APIT AL (Continued) On January 31, 2007, the company issued 11,538,000 common shares as part of the consideration of the acquisition of F orage Orbi t Inc. (see Note 3). On April 16, 2007, the company issued 1,000,000 common shares and received as consideration $1,000,000 in cash. On May 31, 2007, the company issued 109,870 common shares and received as consideration an investment in 9116-9300 Qu ? ebec Inc. in the amount of $165,000 (see Note 3). On A ugust 20, 2007, the company issued 13,333 common shares and received as consideration $20,000 in cash. Share purchase financing: On A ugust 20, 2007, 13,333 (June 30, 2007, 90,000) common shares were issued to employees of the company at $1.50 per share und er the company’s share purchase plan. The company granted a five-year loan in the amount of $20,000 (June 30, 2007, $90,000) to employees pursuant to the terms and conditions set out in a promissory note secured by a pledge of the securities. The loan was repayable at the earlier of (i) the date the shares were sold or, (ii) at the maturity date of the loan. Interest on the princi pal of the loan is calculated and compounded annually at a rate of 8%. On November 13, 2007, the company received an amount of $45,000 and this amount was applied in reduction of the loan. Stock options: In January 2007, the Board of Directors adopted a stock option plan. The purpose of this plan is to retain, motivate and reward qualified directors, officers, employees and consultants of the company. On A ugust 20, 2007, 38,500 stock options (June 30, 2007, 1,017,000) have been granted giving the option to purchase a common sh are for an exercise price of $1.50 (June 30, 2007, $1) per share which represents the fair value at the date of the grant. These op tions can only be exercised and expire when a liquidity event occurs or a maximum life of 10 years following the date of the grant. The r ight to exercise the options is conditional on a closing of a liquidity event as defined in the stock option agreement. Since a liquidi ty event is not considered to be probable until the event occurs, no compensation cost is recognized until a liquidity event occurs. As at March 31, 2008, the stock option plan details were as follows: Number A verage A verage of options exercise price remaining life (unaudited) $ Outstanding and non exercisable at the beginning of period ............... 1,017,000 1.00 Granted ............................................... 38,500 1.50 Outstanding and non exercisable at the end of period ................... 1,055,500 1.02 8.87 years As at June 30, 2007, the stock option plan details were as follows: Number A verage A verage of options exercise price remaining life $ Granted ............................................... 1,017,000 1.00 Outstanding and non exercisable at the end of period ................... 1,017,000 1.00 9.6 years As at March 31, 2007, the stock option plan details were as follows: Number A verage A verage of options exercise price remaining life (unaudited) $ Granted ............................................... 942,000 1.00 Outstanding and non exercisable at the end of period ................... 942,000 1.00 9.8 years F-20