NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 12. Pension Liability 13. Share Capital 53 AKITA DRILLING LTD.  ANNUAL REPORT The Company’s pension expense is recorded in selling and administrative and interest expense and is  comprised of the following:  The anticipated retirement age of the plan members is 61 to 65 years (2012 – 61 to 65 years). The mortality  index is based on the 1994 Uninsured Pensioners Mortality Table projected generationally. The Company obtains an actuarial valuation from an independent actuary subsequent to each year-end or if  circumstances change. The most recent evaluation was dated January 17, 2014 and was utilized in measuring  the December 31, 2013 balances. $Thousands  2013 2012 Actuarial present value of defined benefit obligation at January 1  $ 2,348   $ 1,982  Interest cost  104   95  Current service cost  265   259  Benefits paid  (15)  (15) Unrealized actuarial (gain) loss  (146)   27  Actuarial present value of defined benefit obligation at December 31  $ 2,556   $ 2,348  % December 31 2013 December 31 2012 Discount rate  4.70  4.00 Year Ended $Thousands  December 31 2013 December 31 2012 Defined benefit plan Interest cost $ 104 $ 95 Current service cost  265 258 Expense for defined benefit plan 369 353 Expense for defined contribution plan 5,199  4,543  $ 5,568  $ 4,896  • An unlimited number of Series Preferred shares, issuable in series, designated as First Preferred  Shares, no par value • An unlimited number of Series Preferred shares, issuable in series, designated as Second Preferred  Shares, no par value • An unlimited number of Class A Non-Voting shares, no par value • An unlimited number of Class B Common shares, no par value Key Assumptions:  Authorized :