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 11538000 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 1000000 common shares and received as consideration 1000000 in cash On May 31 2007 the company issued 109870 common shares and received as consideration an investment in 91169300 Qu ebec Inc in the amount of 165000 see Note 3 On A ugust 20 2007 the company issued 13333 common shares and received as consideration 20000 in cash Share purchase financing On A ugust 20 2007 13333 June 30 2007 90000 common shares were issued to employees of the company at 150 per share und er the companys share purchase plan The company granted a fiveyear loan in the amount of 20000 June 30 2007 90000 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 45000 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 38500 stock options June 30 2007 1017000 have been granted giving the option to purchase a common sh are for an exercise price of 150 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 1017000 100 Granted 38500 150 Outstanding and non exercisable at the end of period 1055500 102 887 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 1017000 100 Outstanding and non exercisable at the end of period 1017000 100 96 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 942000 100 Outstanding and non exercisable at the end of period 942000 100 98 years F20