MANAGEMENT’S DISCUSSION AND ANALYSIS Natural gas purchase contract Operations and management ("O&M") agreements Other commitments Management services agreements Wood waste supply agreement Energy savings agreement Guarantees Equity Accounted Investments 40 CAPSTONE INFRASTRUCTURE CORPORATION • 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. • 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. •  Whitecourt has a long-term agreement with Millar Western to ensure an adequate supply of wood waste. The agreement expires in June 2016. •  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. •  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. In addition to the commitments included in the table Capstone has the following other commitments with no fixed minimum payments: 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. 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 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: (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. Principal place of business and country of incorporation Ownership at December 31, Name of entity 2013 2012 Principal activity Värmevärden AB (“Värmevärden”)  (1) ) Sweden 33.3% 33.3% District heating Glen Dhu Wind Energy Limited Partnership ("Glen Dhu")  (2) ) Canada 49% Nil Power generation Fitzpatrick Mountain Wind Energy Inc. ("Fitzpatrick") Canada 50% Nil Power generation Macquarie Long Term Care L.P. (“MLTCLP”) (3) Canada 45% 45% Holding company SPWC Development L.P. ("SPWC")  (4) Canada 50% Nil Development Chapais Électrique Limitée (“Chapais”)  (4) Canada 31.3% 31.3% Power generation