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## Natural gas purchase contract 

• Cardinal has a long-term purchase agreement for natural gas that expires on May 1, 2015. The minimum purchase commitment for natural gas under the agreement is 9,289,104 MMBtu per year through to expiration in 2015, which is equivalent to 80% of the contract maximum. 

## Operations and management ("O&M") agreements 

• Capstone has an agreement with Agbar, which provides management support to Bristol Water, with an initial five-year term that automatically extends indefinitely. Capstone has the ability to terminate the contract. 

• Capstone has an O&M agreement with SunPower Energy Systems Canada Corporation to operate and maintain Amherstburg, expiring on June 30, 2031. Capstone has the ability to terminate the agreement during the term of the contract. 

• Capstone has several turbine maintenance service agreements covering the turbines in operation on various wind farms. The agreements provide for scheduled and unscheduled maintenance and require annual minimum payments, subject to inflationary increases, as applicable. 

• Capstone has an O&M agreement with Regional Power OPCO Inc. (“Regional”) to operate and maintain the hydro power facilities, expiring on November 15, 2016 with an automatic renewal term. Regional is paid a monthly management fee and is eligible for an annual incentive fee. 

## Other commitments 

In addition to the commitments included in the table Capstone has the following other commitments with no fixed minimum payments: 

## Management services agreements 

Capstone has agreements with the all of ReD's partially owned investments, including Glen Dhu, Fitzpatrick, Amherst and various development projects. For the operating projects, these agreements are primarily for the provision of management and administration services and are based on an agreed percentage of revenue. The development projects additionally include a development fee for the successful completion of the projects, which pays an agreed fee per MW on completion of development. 

## Wood waste supply agreement 

• Whitecourt has a long-term agreement with Millar Western to ensure an adequate supply of wood waste. The agreement expires in June 2016. 

## Energy savings agreement 

• Under the terms of an energy savings agreement between Cardinal and Ingredion, Cardinal is required to sell up to 723 million pounds of steam per year to Ingredion for its manufacturing operations. The energy savings agreement matures on December 31, 2014 but may be extended by up to two years at Cardinal's option. 

## Guarantees 

• Capstone has provided limited recourse guarantees on the project debt of Erie Shores, Amherst, and Fitzpatrick totaling $6,500 as at December 31, 2013. 

• Capstone also provides three guarantees relating to Clean Power Income Fund's legacy obligations. As at December 31, 2013, no claims had been made on these guarantees. 

There have been no other significant changes to the specified contractual obligations that are outside the ordinary course of business. Capstone is not engaged in any off-balance sheet financing transactions. 

## Equity Accounted Investments 

Equity accounted investments were $22,061 higher in 2013, primarily due to the acquisition of ReD. As part of this transaction, Capstone acquired ownership interests of Glen Dhu and Fitzpatrick, operating wind projects in Nova Scotia, and SPWC, a project development company. These new investments all share the same controlling partner. 

Capstone's equity accounted investments are summarized as follows: 

<img src='content_image/248886.jpg'>

(1) Värmevärden is further detailed in the results of operations on page 33 of this MD&A. 

(2) Under the limited partnership agreement, Capstone has the option to acquire an additional 1% interest from November 2017 to November 2018 at a price based on a predetermined calculation. 

(3) MLTCLP had no significant activity in the year ended December 31, 2013. 

(4) No income has been recorded on the investment since its acquisition. Capstone does not expect to earn any future equity accounted income from this investment. 

