FOR AGE ORBIT INC NOTES TO THE CONSOLID A TED FINANCIAL ST A TEMENTS Continued Y ears ended January 31 2007 and 2006 6 C APIT AL AS SETS Continued Accumulated Net book Cost amortization value 2006 Building 45000 7061 37939 Office equipment 94120 67366 26754 V ehicles 1359804 755494 604310 Mining equipment 5467372 2444392 3022980 Equipment 103542 53053 50489 Computer equipment 93281 60352 32929 L easehold improvements 59993 27290 32703 7223112 3415008 3808104 7 BANK O VERDR AF T AND BANK LOAN The company has an authorized line of credit for an amount of 3500000 bearing interest at prime rate plus 050 renewable in May 2007 Any funds advanced pursuant to this line of credit as well as certain longterm loans are secured by all present and future assets up to 6000000 and by general guarantee from the shareholders for an amount of 300000 As at January 31 2007 the l ine of credit was not use by the company On January 31 2007 the prime rate is 6 Under the terms of bank loan the company must satisfy certain restrictive covenants as to minimum financial ratios 8 LONG TERM DEBT 2007 2006 Bank loan payable on July 22 2008 in monthly instalments of 41667 plus interest calculated at the prime rate plus 050 Note 7 a 750000 1250000 Bank loan payable on July 22 2008 in monthly instalments of 13889 plus interest calculated at prime rate plus 050 Note 7 a 250000 416667 Bank loan payable on November 8 2008 in monthly instalments of 37037 plus interest calculated at prime rate plus 050 Note 7 a 777778 Debentures maturing in October 2008 payable in quaterly instalments of 12500 plus interest calculated at 10 plus 040 of the earnings before income taxes amortization and interest 137500 L oans payable in monthly instalments including interest secured by vehicles 1341 690 April 2007 a 3987 19274 1119 0 November 2007 11191 24620 758 825 March 2009 a 17985 34480 1058 090 October 2008 a 22040 25265 754 5990 January 2008 8714 17021 1686 0 F ebruary 2010 60638 1073 590 May 2006 4251 1841695 1989716 Current portion 1841695 796157 1193559 a These loans have been paid in F ebruary 2007 F37