FOR AGES GAR ANT FR ERES INC NOTES TO THE FINANCIAL ST A TEMENTS Continued 7 LONG TERM DEBT June 30 September 30 2006 2006 2005 L oan bearing interest at the Business Development Bank of Canadas prime rate maturing A ugust 23 2008 payable in monthly instalments of principal of 13250 plus interest secured by a first rank hypothec on certain machinery and equipment 344500 503500 L oan bearing interest at prime rate plus 075 maturing September 2007 payable in monthly instalments of principal of 2250 secured by land and buildings of a net book value of 392579 and by a movable hypothec over all present and future assets 141750 168750 L oans noninterest bearing payable in aggregate monthly instalments of 4981 maturing from March 2007 to October 2008 secured by vehicles net book value of 108119 77924 92867 154742 77924 579117 826992 Current portion 50456 240448 247874 27468 338669 579118 A dvances from directors variable interest rates no specific terms of repayment 556273 546075 27468 894942 1125193 P rincipal payments required in each of the next two years are as follows 2007 50456 2008 27468 F52