content_image/238132.jpg content_image/238131.jpg
The composition of fair value for shareholders’ equity was as follows: 

<img src='content_image/238132.jpg'>

Retained earnings (deficit) reflects the aggregate of Capstone’s net income (loss) since formation of the Corporation less cumulative dividends paid to shareholders and cumulative distributions paid to Class B exchangeable unitholders. 

## Contractual Obligations 

As at December 31, 2013, Capstone had outstanding contractual obligations with amounts due as follows: 

<img src='content_image/238131.jpg'>

(1) Long-term debt and finance lease obligations include principal or minimum lease payments, respectively and interest payments. 

## Long-term debt 

• Long-term debt is discussed on page 36 of this MD&A as a part of the Capital Structure section. 

## Finance lease obligations 

• Bristol Water has finance leases for certain equipment and vehicles. 

## Operating leases 

The following leases have been included in the table based on known minimum operating lease commitments as follows: 

• The Corporation has operating leases for corporate offices and power development purposes. These leases have terms ranging from 2015 to 2018, with options to extend. 

• Amherstburg leases the land on which it is located. The terms of the lease agreement extend to 2032. 

• Capstone's operating wind facilities and wind development projects have entered into agreements for the use, or option to use, land in connection with the operation of existing and future wind farms. Payment under these agreements is typically a minimum amount with additional payments dependent on the amount of power generated by the wind facility. The agreements can be renewed and extend as far as 2047. 

Capstone has additional operating lease commitments not included in the table with no minimum operating lease commitments required as follows: 

• Capstone has agreements with the Provinces of Ontario and British Columbia for the lease of certain lands and water rights necessary for the operation of its hydro power facilities. The payments under these agreements vary based on actual power production. The terms of the lease agreements extend from 2023 and 2042. 

• Cardinal leases the site on which it is located from Ingredion Canada Incorporated ("Ingredion"). Under the lease, Cardinal pays nominal rent. The lease extends to 2016 and expires concurrently with the energy savings agreement between Ingredion and Cardinal. 

## Asset retirement obligations 

• Commitments associated with our asset retirement obligations for Capstone's power infrastructure facilities are projected to occur principally over the next 30 years. 

## Purchase obligations 

Capstone enters into contractual commitments in the normal course of business. These contracts include capital commitments, natural gas purchase contract and operations and management agreements as follows: 

## Capital commitments 

• As part of Capstone's power development operations, Capstone enters various construction and purchase agreements. As at December 31, 2013, Capstone had approximately $61,000 of construction and turbine supply agreements for the Saint-Philémon and Skyway 8 projects. 

• Bristol Water has commitments for capital expenditures at December 31, 2013 of which $26,172 were contracted but had not yet occurred. 

• Cardinal placed a purchase order for a $20,140 ($19,000 USD) rotor and exhaust cylinder to be installed during the scheduled major maintenance in 2015. The purchase order includes a termination fee that escalates with the passage of time. As at December 31, 2013, the penalty was $1,060 ($1,000 USD) and increases to $3,180 ($3,000 USD) by March 2014. Capstone's first installment payment of $2,120 was made in February 2014. 

