66Spire Healthcare Annual Review 2010Spire Healthcare Limited PartnershipNotes to the financial statementsFor the year ended 31 December 201021. Employee Benefit Trust continuedOf those units, 522,000 have been reserved to make awards to certain employees in the event of a future sale of the business. The intention is that payments will be made to those employees provided that they continue in service with the Group up to the point of sale. The fair value of the units on the date on which the units were reserved was £1 per share. The share-based payment charge for the year is £0.3 million (2009: £nil).22. Commitmentsa) Operating leasesThe Group had future minimum lease payments under non-cancellable operating leases as set out below:Land and buildings2010£000Other2010£000Land and buildings*2009£000Other2009£000Not later than one year1,6115825,929304Later than one year and not later than five years5,4751,16524,463607Later than five years13,848-107,236-20,9341,747137,628911*Amended to include lease commitments of a subsidiary company, previously omitted.As detailed in note 15, following changes to the terms of the respective leases, properties held under operating leases with annual commitments of £4.4 million as at 31 December 2009 were reclassified as finance leases during the year.b) Consignment stockAt 31 December 2010 the Group held consignment stock on sale or return of £15,367,000 (31 December 2009: £13,719,000).c) Capital expenditureCapital commitments at the end of the year were as follows:2010£0002009£000Contracted but not provided for2,192 9,741

67Spire Healthcare Limited Partnership23. Contingent liabilitiesThe Group had provided the following guarantees at 31 December 2010:. The bankers to the Spire 1 Group have provided guarantees on behalf of Spire Healthcare (Holdings) Limited relating to performance on NHS contracts totalling £16.8 million (2009: £16.4 million). If Spire Healthcare (Holdings) Limited fails to meet targets set by the relevant NHS Trusts, then these amounts will become payable by the guarantors. Spire UK Finance Limited and certain of its subsidiary undertakings have guaranteed the Senior Facilities Agreement (Opco) entered into by Spire Healthcare Group Limited on 25 September 2008. The loan amount outstanding at the balance sheet date was £154.7 million (2009: £152.5 million). Under the Senior Facilities Agreement entered into by Fox Healthcare Acquisitions Limited on 17 March 2008, Fox Healthcare Acquisitions Limited and its subsidiary undertakings have given certain undertakings relating to obligations under the senior finance documentation and the assets of these companies are subject to a fixed and floating charge. The amount outstanding at the balance sheet date for these loans was £71.9 million (2009: £87.8 million). Spire Healthcare Limited has entered into an Authorised Guarantee Agreement (AGA) with regard to the premises of the former customer contact centre at Victoria Harbour City, Manchester. Under the AGA, Spire Healthcare Limited will act as a guarantor to the new tenants until the end of the lease term, January 2016. The maximum contingent liability at the balance sheet date was £2.9 million (2009: £3.4 million). The bankers to Spire Healthcare Limited have issued a letter of credit in the maximum amount of £880,000 (2009: £880,000) in relation to contractual pension obligations. Under the lease agreements entered into on 26 January 2010 by Classic Hospitals Limited, the Group has given certain undertakings relating to obligations in the lease documentation and the assets of the Group are subject to a fixed and floating charge 24. Capital managementThe General Partner considers that capital is represented by partners' capital employed and borrowings, as follows:2010£0002009£000Partners' capital30,20030,176Loans from the ultimate parent undertaking601,827 537,243 Other loans - 24,704 Bank loans1,293,653 1,297,275 Obligations under finance leases74,046 - 1,999,7261,889,398The policy when managing capital is to safeguard the Group's ability to continue as a going concern in order to provide returns for partners and benefits to other stakeholders, and to sustain the future development of the business.The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the needs of the Group. The Group monitors capital investments using cash flow return on investment ratios. The Group's policy is to keep these ratios in line with targets.