<SUBMISSION>
<ACCESSION-NUMBER>0000891618-05-000439
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>8
<PERIOD>20050617
<ITEMS>5.03
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20050623
<DATE-OF-FILING-DATE-CHANGE>20050623
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CALPINE CORP
<CIK>0000916457
<ASSIGNED-SIC>4911
<IRS-NUMBER>770212977
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12079
<FILM-NUMBER>05911763
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>50 WEST SAN FERNANDO ST
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
<PHONE>4089955115
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>50 W SAN FERNANDO
<STREET2>SUITE 500
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f10195e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 12pt"><B>CURRENT REPORT</B>



<P align="center" style="font-size: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of<BR>
the Securities Exchange Act of 1934</B>



<P align="center" style="font-size: 10pt">Date of Report (Date of
earliest event reported): June&nbsp;17, 2005


<P align="center" style="font-size: 24pt"><B>CALPINE CORPORATION</B>


<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>



<P align="center" style="font-size: 10pt"><B>Delaware</B><BR>
(State or Other Jurisdiction of Incorporation)



<P align="center" style="font-size: 10pt">Commission File Number: <B>001-12079</B>



<P align="center" style="font-size: 10pt">I.R.S. Employer Identification Number: <B>77-0212977</B>



<P align="center" style="font-size: 10pt"><B>50 West San Fernando Street<BR>
San Jose, California 95113<BR>
Telephone: (408)&nbsp;995-5115</B><BR>
Address of principal executive offices and telephone number)



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions:


<P>
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<TR valign="top">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>
</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR valign="top">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>
</TABLE>


<P>
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<TR valign="top">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</TD>
</TR>
</TABLE>


<P>
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<TR valign="top">
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</TD>
</TR>
</TABLE>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">ITEM 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">ITEM 8.01 Other Events</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv1w1.htm">EXHIBIT 1.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv4w4.htm">EXHIBIT 4.4</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv5w1.htm">EXHIBIT 5.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv10w1.htm">EXHIBIT 10.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv99w1.htm">EXHIBIT 99.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv99w2.htm">EXHIBIT 99.2</A></TD></TR>
<TR><TD colspan="9"><A HREF="f10195exv99w3.htm">EXHIBIT 99.3</A></TD></TR>
</TABLE>
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<!-- link2 "ITEM 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>ITEM 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June&nbsp;20, 2005, Calpine Corporation (the &#147;Company&#148;), filed with the Secretary of State of the State of Delaware an
amendment to its Certificate of Incorporation. The amendment, which was effective upon such
filing, was adopted by the Board of Directors of the Company and approved by the shareholders of
the Company at its 2005 annual meeting, declassifies the Company&#146;s Board of Directors. A copy of
the amendment is filed herewith as Exhibit&nbsp;3.1.

<!-- link2 "ITEM 8.01 Other Events" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>ITEM 8.01 Other Events</B>


<P align="left" style="font-size: 10pt"><B>Public Offering of Contingent Convertible Notes Due 2014</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;20, 2005, the Company announced an offering of $650&nbsp;million aggregate principal amount
of 7.75% Contingent Convertible Notes Due June&nbsp;1, 2015 (the &#147;Convertible Notes&#148;), in an
underwritten offering registered under the Securities Act of 1933, as amended (the &#147;Securities
Act&#148;). A press release regarding the offering is filed herewith as Exhibit&nbsp;99.1.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Convertible Notes, upon issuance, will bear interest at the rate of 7.75% per annum on the
principal amount thereof, payable on June 1 and December&nbsp;1, beginning December&nbsp;1, 2005. The
Convertible Notes will be convertible by the holders into cash and shares of the Company&#146;s common
stock at an initial conversion price of $4.00 per share. Upon conversion of the Convertible Notes,
the portion of the conversion value equal to the then-current principal amount of the Convertible
Notes will be paid to the holder in cash and the remainder of the conversion value will be paid in
shares of the Company&#146;s common stock valued at the then-current market price. The terms of the
Convertible Notes are set forth in the Third Supplemental Indenture, dated as of June&nbsp;23, 2005,
which is filed herewith as Exhibit&nbsp;4.4, which supplements the Indenture, dated as of August&nbsp;10,
2000, as supplemented by the First Supplemental Indenture, dated as of September&nbsp;28, 2000, and the
Second Supplemental Indenture, dated as of September&nbsp;30, 2004, between the Company and Wilmington
Trust Company, as trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Convertible Notes will be issued pursuant to the terms and subject to the conditions set
forth in the Underwriting Agreement, dated as of June&nbsp;20, 2005, between the Company and Goldman,
Sachs &#038; Co., as Underwriter. The Underwriting Agreement is filed herewith as Exhibit&nbsp;1.1. The
closing of the offering and sale of the Convertible Notes is scheduled to occur on June&nbsp;23, 2005.
The Company expects to realize, after deduction of the underwriting discount of 2.25% but before
the deduction of other offering expenses, net proceeds of approximately $635,375,000.


<P align="left" style="font-size: 10pt"><B>Sale of Saltend Energy Centre</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attached
as Exhibit&nbsp;10.1 hereto is the Share Sale and Purchase Agreement,
made as of May&nbsp;28,
2005, among Calpine UK Holdings Limited, the Company, Quintana Canada Holdings, LLC, Normantrail
(UK CO 3) Limited, International Power plc and Mitsui &#038; Co., Ltd., regarding the sale of the
Company&#146;s Saltend Energy Centre cogeneration plant, as more fully described in the Company&#146;s Form
8-K, filed with the SEC on June&nbsp;3, 2005, and incorporated by reference herein.


<P align="left" style="font-size: 10pt"><B>Miscellaneous</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also filing herewith as Exhibit&nbsp;99.2 and Exhibit&nbsp;99.3 the press releases issued by the
Company on June&nbsp;21, 2005, and June&nbsp;17, 2005, respectively.

<!-- link2 "ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="left" style="font-size: 10pt"><B>ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Financial Statements of Businesses Acquired</I>.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not Applicable</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Pro Forma Financial Information</I>.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not Applicable</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Exhibits</I>.</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Underwriting Agreement, dated
June&nbsp;20, 2005, between the Company and Goldman, Sachs &#038; Co.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture dated as of August&nbsp;10, 2000, between the Company and
Wilmington Trust Company, as Trustee.(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Supplemental Indenture dated as of September&nbsp;28, 2000, between
the Company and Wilmington Trust Company, as Trustee.(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Supplemental Indenture dated as of September&nbsp;30, 2004, between
the Company and Wilmington Trust Company, as Trustee.(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Supplemental Indenture, dated as of June&nbsp;23, 2005, between
the Company and Wilmington Trust Company.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Covington &#038; Burling, dated June&nbsp;23, 2005.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Sale and Purchase Agreement, made as of May&nbsp;28, 2005, among
the Company, Calpine UK Holdings Limited, Quintana Canada
Holdings, LLC, International Power PLC, Mitsui &#038; Co., Ltd. and
Normantrail (UK CO 3) Limited. Approximately four pages of this
Exhibit&nbsp;10.1 have been omitted pursuant to a request for confidential
treatment. The omitted language has been filed separately with the
SEC.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Covington &#038; Burling (contained in Exhibit&nbsp;5.1 hereto).</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;20, 2005</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;21, 2005</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;17, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Registration Statement on Form S-3
(Registration No.&nbsp;333-76880) filed with the SEC on January&nbsp;17, 2002.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Annual Report on Form 10-K for the
year ended December&nbsp;31, 2000, filed with the SEC on March&nbsp;15, 2001.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Current Report on Form 8-K filed
with the SEC on September&nbsp;30, 2004.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>


<P align="left" style="font-size: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>CALPINE CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left"><I>/s/ Charles B. Clark, Jr.</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><I>Charles B. Clark, Jr.</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left"><I>Senior Vice President and Controller<br>
Chief Accounting Officer</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Date: June&nbsp;23, 2005




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>EXHIBITS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Underwriting Agreement, dated
June&nbsp;20, 2005, between the Company and Goldman, Sachs &#038; Co.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indenture dated as of August&nbsp;10, 2000, between the Company and
Wilmington Trust Company, as Trustee.(a)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">First Supplemental Indenture dated as of September&nbsp;28, 2000, between
the Company and Wilmington Trust Company, as Trustee.(b)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Second Supplemental Indenture dated as of September&nbsp;30, 2004, between
the Company and Wilmington Trust Company, as Trustee.(c)</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Supplemental Indenture, dated as of June&nbsp;23, 2005, between
the Company and Wilmington Trust Company.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Covington &#038; Burling, dated June&nbsp;23, 2005.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Share Sale and Purchase Agreement, made as of May&nbsp;28, 2005, among
the Company, Calpine UK Holdings Limited, Quintana Canada
Holdings, LLC, International Power PLC, Mitsui &#038; Co., Ltd. and
Normantrail (UK CO 3) Limited. Approximately four pages of this
Exhibit&nbsp;10.1 have been omitted pursuant to a request for confidential
treatment. The omitted language has been filed separately with the
SEC.</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Covington &#038; Burling (contained in Exhibit&nbsp;5.1 hereto).</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;20, 2005</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;21, 2005</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="right" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release dated June&nbsp;17, 2005</TD>
</TR>
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Registration Statement on Form S-3
(Registration No.&nbsp;333-76880) filed with the SEC on January&nbsp;17, 2002.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Annual Report on Form 10-K for the
year ended December&nbsp;31, 2000, filed with the SEC on March&nbsp;15, 2001.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Incorporated by reference to the Company&#146;s Current Report on Form 8-K filed
with the SEC on September&nbsp;30, 2004.</TD>
</TR>

</TABLE>



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<DESCRIPTION>EXHIBIT 1.1
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<P align="right" style="font-size: 10pt">Exhibit&nbsp;1.1



<P align="right" style="font-size: 10pt"><U><B>EXECUTION COPY</B></U>



<P align="center" style="font-size: 10pt">CALPINE CORPORATION



<P align="center" style="font-size: 10pt">$650,000,000 7.75% Contingent Convertible Notes Due 2015



<P align="center" style="font-size: 10pt">UNDERWRITING AGREEMENT



<P align="right" style="font-size: 10pt">June&nbsp;20, 2005



<P align="left" style="font-size: 10pt">Goldman, Sachs &#038; Co.<BR>
85 Broad St.<BR>
New York, New York 10004


<P align="left" style="font-size: 10pt">Dear Sirs:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Introductory. Calpine Corporation, a Delaware corporation (the &#147;<U>Company</U>&#148;),
proposes, subject to the terms and conditions stated herein, to issue and sell to Goldman, Sachs &#038;
Co. (&#147;<U>Goldman Sachs</U>&#148; or the &#147;<U>Underwriter</U>&#148;) $650,000,000 aggregate principal amount
of the Company&#146;s 7.75% Contingent Convertible Notes due 2015 (the &#147;<U>Securities</U>&#148;), which are
convertible into cash and shares of the Company&#146;s common stock, par value $.001 per share (the
&#147;<U>Stock</U>&#148;), upon the occurrence of certain circumstances under the terms of a supplemental
indenture (the &#147;<U>Supplemental Indenture</U>&#148;), to be dated as of the Closing Date (as defined
herein), to the Indenture, dated August&nbsp;10, 2000, and amended as of September&nbsp;28, 2000 (as so
amended, the &#147;<U>Base Indenture</U>&#148;), between the Company and Wilmington Trust Company, as
trustee (the &#147;<U>Trustee</U>&#148;). The Supplemental Indenture and the Base Indenture are hereinafter
together called the &#147;<U>Indenture</U>&#148;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has filed with the Securities and Exchange Commission (the &#147;<U>Commission</U>&#148;) a
registration statement (No.&nbsp;333-76880), including a prospectus (the &#147;<U>Base Prospectus</U>&#148;),
relating to various securities of the Company (including the Securities) and has filed with, or
transmitted for filing to, or shall promptly hereafter file with or transmit for filing to, the
Commission a prospectus supplement (the &#147;<U>Prospectus Supplement</U>&#148;) specifically relating to
the Securities pursuant to Rule&nbsp;424 under the Securities Act of 1933, as amended (the
&#147;<U>Securities Act</U>&#148;). The term &#147;Registration Statement&#148; means the registration statement (No.
333-76880), including the exhibits thereto, as amended to the date of this Agreement. The term
&#147;<U>Prospectus</U>&#148; means the Base Prospectus together with the Prospectus Supplement. The term
&#147;<U>Preliminary Prospectus</U>&#148; means a preliminary prospectus supplement specifically relating to
the Securities, together with the Base Prospectus. As used herein, the terms &#147;Base Prospectus,&#148;


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">&#147;Prospectus&#148; and &#147;Preliminary Prospectus&#148; shall include in each case the documents, if any,
incorporated by reference therein. The terms &#147;supplement,&#148; &#147;amendment&#148; and &#147;amend&#148; as used herein
shall include all documents deemed to be incorporated by reference in the Prospectus that are filed
subsequent to the date of the Base Prospectus by the Company with the Commission pursuant to the
Securities Exchange Act of 1934, as amended (the &#147;<U>Exchange Act</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company agrees with the Underwriter as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Representations and Warranties of the Company. The Company represents and warrants to, and
agrees with, the Underwriter that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no proceedings for such purpose are
pending before or, to the knowledge of the Company, threatened by the Commission. No document has
been or will be prepared or distributed in reliance on Rule&nbsp;434 under the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;On the effective date of the Registration Statement, such Registration Statement conformed
in all material respects to the requirements of the Securities Act, the Trust Indenture Act of 1939
(&#147;<U>Trust Indenture Act</U>&#148;) and the rules and regulations of the Commission thereunder
(&#147;<U>Rules and Regulations</U>&#148;) and did not include any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading; and on the date hereof, the Registration Statement and Prospectus, conform
in all material respects to the requirements of the Securities Act, the Trust Indenture Act and the
Rules and Regulations, and neither of such documents includes any untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
except that the foregoing does not apply to (A)&nbsp;statements in or omissions from any of such
documents based upon written information furnished to the Company by the Underwriter specifically
for use therein or (B)&nbsp;to that part of the Registration Statement that constitutes the Statement of
Eligibility (Form T-1) under the Trust Indenture Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Preliminary Prospectus complied when filed in all material respects with the
Securities Act and the Rules and Regulations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company has been duly incorporated and is an existing corporation in good standing
under the laws of the State of Delaware, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Registration Statement and the Prospectus;
and the Company is duly qualified to do business as a foreign corporation in good standing in all
other jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each subsidiary of the Company listed on Schedule&nbsp;A hereto (each a &#147;<U>Scheduled
Subsidiary</U>&#148; and, collectively, the &#147;<U>Scheduled Subsidiaries</U>&#148;)


<P align="center" style="font-size: 10pt">2
</DIV>

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<P align="left" style="font-size: 10pt">(x)&nbsp;other than those Scheduled Subsidiaries specified in clause (y)&nbsp;of this subparagraph, has
been duly incorporated and is an existing corporation in good standing under the laws of the
jurisdiction of its incorporation, with power and authority (corporate and other) to own its
properties and conduct its business as described in the Prospectus; or (y)&nbsp;that is not a
corporation is a limited liability company, has been duly formed and is validly existing as a
limited liability company in good standing under the laws of the jurisdiction of its formation, and
has full power and authority to own its properties and conduct its business as described in the
Prospectus. Each Scheduled Subsidiary is duly qualified to do business as a foreign corporation or
limited liability company in good standing in all other jurisdictions in which its ownership or
lease of property or the conduct of its business requires such qualification. All of the issued and
outstanding shares of capital stock or membership or other ownership interests of each subsidiary
of the Company has been duly authorized and validly issued (in accordance with the organizational
documents of such subsidiary) and, with respect to subsidiaries that are corporations, are fully
paid and nonassessable (except for (i)&nbsp;directors&#146; qualifying shares, if applicable, (ii)&nbsp;unissued
shares of Stock underlying unvested stock options granted to its employees and (iii)&nbsp;as set forth
on Schedule&nbsp;B hereto). The capital stock and membership or other ownership interests of each
subsidiary owned by the Company, directly or through subsidiaries, is owned free from liens,
encumbrances and defects, except as shall be disclosed in the Prospectus and as set forth on
Schedule&nbsp;B hereto; and the Company is not a general partner in any partnership. For purposes of
this agreement, &#147;<U>subsidiary</U>&#148; means, as applied to any person, any corporation, limited or
general partnership, trust, association or other business entity of which an aggregate of at least
50% of the outstanding voting shares or an equivalent controlling interest therein, of such person
is, at any time, directly or indirectly, owned by such person and/or one or more subsidiaries of
such person, including with respect to the Company. For purposes of the definition of
&#147;<U>subsidiary</U>,&#148; &#147;<U>voting shares</U>&#148; means with respect to any corporation, the capital
stock having the general voting power under ordinary circumstances to elect at least a majority of
the board of directors (irrespective of whether or not at the time stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Company has an authorized capitalization as set forth in the Prospectus; all of the
issued and outstanding shares of capital stock of the Company have been duly authorized and validly
issued and are fully paid and non-assessable; and the shares of Stock initially issuable upon
conversion of the Securities under the terms of the Indenture have been duly authorized and
reserved for issuance upon such conversion and, when issued and delivered in accordance with the
provisions of the Securities and the Indenture, will be validly issued, fully paid and
non-assessable, free and clear of any liens or preemptive rights or any similar rights, and will
conform in all material respects to the description of the Stock contained in the Prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Supplemental Indenture has been duly authorized by the Company and, when executed and
delivered by the Company and the Trustee, the Supplemental Indenture and the Base Indenture will
both constitute valid and legally binding obligations of the Company, enforceable against the
Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization,


<P align="center" style="font-size: 10pt">3
</DIV>

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<P align="left" style="font-size: 10pt">moratorium and similar laws of general applicability relating to or affecting creditors&#146;
rights and to general equity principles. The Base Indenture conforms, and the Supplemental
Indenture when executed and delivered will conform, to the descriptions thereof contained in the
Prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Securities have been duly authorized by the Company and, when executed and issued by
the Company, authenticated by the Trustee in accordance with the terms of the Indenture and
delivered to and paid for by the Underwriter pursuant to this Agreement on the Closing Date (as
defined below), the Securities will constitute valid and legally binding obligations of the
Company, enforceable against the Company in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors&#146; rights and to general equity principles, and will
be entitled to the benefits of the Indenture. The Securities, when executed, issued and delivered,
will be convertible into Stock in accordance with the Indenture and will conform to the description
thereof contained in the Prospectus.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Except as shall be disclosed in the Prospectus, there are no contracts, agreements or
understandings between the Company and any person that would give rise to a valid claim against the
Company or the Underwriter for a brokerage commission, finder&#146;s fee or other like payment in
connection with this offering.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Except as (i)&nbsp;set forth on Schedule&nbsp;B hereto and (ii)&nbsp;provided for in this Agreement,
there are no contracts, agreements or understandings between the Company and any person granting
such person the right to require the Company to file a registration statement under the Securities
Act with respect to any securities of the Company owned or to be owned by such person or to require
the Company to include such securities with any other securities being registered pursuant to any
other registration statement filed by the Company under the Securities Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;No consent, approval, authorization, or order of, or filing with, any governmental agency
or body or any court is required for the consummation of the transactions contemplated by this
Agreement or the Indenture or otherwise in connection with the issuance and sale of the Securities
by the Company, except (i)&nbsp;such consents, approvals, authorizations and orders as have already been
obtained under the Securities Act or the Trust Indenture Act, (ii)&nbsp;such consents, approvals,
authorizations and orders as may be required under state securities or Blue Sky laws, and (iii)
such other consents, approvals, authorizations and orders, of which the failure to obtain or file
would not reasonably be expected to have, in the aggregate, a material adverse effect on the
condition (financial or other), business, properties or results of operations of the Company and
its subsidiaries taken as a whole (any such event, a &#147;<U>Material Adverse Effect</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;The execution, delivery and performance of this Agreement and the Indenture by the
Company; the issuance and sale of the Securities by the Company and the issuance of the Stock by
the Company under the terms of the Indenture; and the compliance with the terms and provisions of
each of the foregoing by


<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">the Company and the consummation by the Company of the transactions contemplated herein and
therein will not result in a breach or violation of any of the terms and provisions of, or conflict
with or constitute a default under, or result in the imposition or creation of (or the obligation
to create or impose) a lien under, (i)&nbsp;any statute, any rule, regulation or order of any
governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company
or any Scheduled Subsidiary or any of their properties, or (ii)&nbsp;any agreement or instrument to
which the Company or any such Scheduled Subsidiary is a party or by which the Company or any such
Scheduled Subsidiary is bound or to which any of the properties of the Company or any such
Scheduled Subsidiary is subject, or (iii)&nbsp;the charter, by-laws or other organizational document of
the Company or any Scheduled Subsidiary, except, in the case of (i)&nbsp;and (ii)&nbsp;above, as would not
reasonably be expected to have a Material Adverse Effect, and the Company has full power and
authority to authorize, issue and sell the Securities as contemplated by this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;This Agreement has been duly authorized, executed and delivered by the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Except as shall be disclosed in the Prospectus, the Company and its subsidiaries have good
and marketable title to all real properties and all other properties and assets owned by them, in
each case free from liens, encumbrances and defects except (i)&nbsp;such as do not materially affect the
value thereof or materially interfere with the use made or to be made thereof by them or (ii)&nbsp;such
as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect; and except as shall be disclosed in the Prospectus, the Company and its subsidiaries hold
any leased real or personal property under valid and enforceable leases with no exceptions to the
Company&#146;s title to its leasehold interests except (i)&nbsp;such as do not materially interfere with the
use made or to be made thereof by them or (ii)&nbsp;such as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;The Company and its subsidiaries possess adequate certificates, authorities or permits
issued by appropriate governmental agencies or bodies necessary to conduct the business now
operated by them as described in the Prospectus, except where the failure to possess the same would
not reasonably be expected to have a Material Adverse Effect, and have not received any written
notice of proceedings relating to the revocation or modification of any such certificate, authority
or permit that, if determined adversely to the Company or any of its subsidiaries, would reasonably
be expected to have, individually or in the aggregate, a Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;No labor dispute with the employees of the Company or any subsidiary exists or, to the
knowledge of the Company, is imminent that would reasonably be expected to have a Material Adverse
Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;The Company and its subsidiaries own, possess or can acquire on reasonable terms, adequate
trademarks, trade names and other rights to inventions, know-how, patents, copyrights, confidential
information, and other


<P align="center" style="font-size: 10pt">5
</DIV>

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<P align="left" style="font-size: 10pt">intellectual property (collectively, &#147;<U>Intellectual Property Rights</U>&#148;) necessary to
conduct the business now operated by them, or presently employed by them, and have not received any
notice of infringement of or conflict with asserted rights of others with respect to any
intellectual property rights that, if determined adversely to the Company or any of its
subsidiaries, would reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;Except as shall be disclosed in the Prospectus, neither the Company nor any of its
subsidiaries (i)&nbsp;is in violation of any statute, any rule, regulation, decision or order of any
governmental agency or body or any court, domestic or foreign, relating to the use, disposal or
release of hazardous or toxic substances or relating to the protection or restoration of the
environment or human exposure to hazardous or toxic substances (collectively, &#147;<U>Environmental
Laws</U>&#148;), (ii)&nbsp;owns or operates any real property contaminated with any substance that is subject
to any Environmental Laws, (iii)&nbsp;is liable for any off-site disposal or contamination pursuant to
any Environmental Laws, or (iv)&nbsp;is subject to any claim relating to any Environmental Laws, which
violation, contamination, liability or claim would reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect; and the Company is not aware of any pending
investigation which might lead to such a claim.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;Except as shall be disclosed in the Prospectus, there are no pending actions, suits or
proceedings against or affecting the Company, any of its subsidiaries or any of their respective
properties that, if determined adversely to the Company or any of its subsidiaries, would
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, or
would materially and adversely affect the ability of the Company to perform its obligations under,
or contemplated by, this Agreement or the Indenture or which are otherwise material in the context
of the sale of the Securities; and, to the knowledge of the Company, no such actions, suits or
proceedings are threatened.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;The financial information included in the Prospectus will present fairly in all material
respects the financial position of the Company and its consolidated subsidiaries as of the dates
shown and their results of operations and cash flows for the periods shown, in each case, on a
consolidated basis, and, except as otherwise shall be disclosed in the Prospectus, such financial
statements shall have been prepared in conformity with generally accepted accounting principles in
the United States applied on a consistent basis throughout the periods covered thereby; and the
assumptions used in preparing the pro forma financial information and the related notes thereto
included in the Prospectus shall provide a reasonable basis for presenting the significant effects
directly attributable to the transactions or events described therein, and will be prepared in
accordance with the rules and guidelines of the Commission with respect to pro forma financial
statements, and will be properly compiled on the bases described therein; and the adjustments used
therein shall be appropriate to give effect to the transactions and circumstances referred to
therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;The statistical and market-related data (other than market-related data and statistical
data provided by the Company) included in the Registration


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<P align="left" style="font-size: 10pt">Statement, any Preliminary Prospectus and the Prospectus has been based on or derived from
sources which the Company believes to be reliable and accurate, it being understood, however, that
the Company has conducted no independent investigation of the accuracy thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Except as shall be disclosed in the Prospectus, since the date of the latest audited
financial statements that shall be included or incorporated by reference in the Prospectus there
shall have been no material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or other), business, properties or results of
operations of the Company and its subsidiaries taken as a whole, and, except as disclosed in or
contemplated by the Prospectus, since the date of the March&nbsp;31, 2005 unaudited financial statements
that are incorporated by reference in the Prospectus, there has been no change in the capital stock
of the Company or long-term debt of the Company or any of its consolidated subsidiaries other than
issues of capital stock pursuant to equity incentive plans, and no dividend or distribution of any
kind has been declared, paid or made by the Company on any class of its capital stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)&nbsp;The Company is not and, solely after giving effect to the offering, the sale of the
Securities and the application of the proceeds thereof as shall be described in the Prospectus, and
the consummation of the transactions contemplated by this Agreement and the Indenture, will not be
an &#147;investment company&#148; as defined in the Investment Company Act of 1940, as amended (the
&#147;<U>Investment Company Act</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;Neither the Company nor any &#147;subsidiary company,&#148; as that term is defined in the Public
Utility Holding Company Act of 1935 (&#147;<U>PUHCA</U>&#148;), of the Company is, or after giving effect to
the issuance and sale of the Securities, will be, subject to regulation as a &#147;holding company,&#148; a
&#147;subsidiary company&#148; of a holding company or a &#147;public-utility company,&#148; as those terms are defined
in PUHCA (except that Androscoggin Energy LLC, which is a QF (as defined herein) and Acadia Power
Partners, LLC, which is an EWG (as defined herein) are &#147;subsidiary companies&#148; of holding
companies).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;Each of the power generation projects in which the Company or its subsidiaries has an
interest is either (i)&nbsp;subject to the requirements of the Public Utility Regulatory Policies Act of
1978, as amended (&#147;<U>PURPA</U>&#148;), and the regulations of the Federal Energy Regulatory Commission
(&#147;<U>FERC</U>&#148;) promulgated thereunder, as amended from time to time, and meets the requirements
thereunder necessary for each such facility to be a &#147;qualifying cogeneration facility&#148; and/or a
&#147;qualifying small power production facility&#148; (&#147;<U>QF</U>&#148;) under PURPA, except where the failure
to meet such requirements would not reasonably be expected to have a Material Adverse Effect, or
(ii)&nbsp;an Eligible Facility within the meaning of Section&nbsp;32 of PUHCA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)&nbsp;Each of the Company&#146;s subsidiaries that is a public utility under the Federal Power Act,
as amended (&#147;<U>FPA</U>&#148;), has validly-issued orders from the FERC, not subject to invalidation
based on changed facts or circumstances regarding its ownership or operation since issuance of such
orders or to any pending challenge,


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<P align="left" style="font-size: 10pt">investigation, or proceeding (i)&nbsp;authorizing such subsidiary to engage in wholesale sales of
electricity, ancillary services and, to the extent permitted under its market-based rate tariff,
other services at market-based rates, and (ii)&nbsp;granting such waivers and blanket authorizations,
including authorization to issue securities or assume obligations or liabilities, as are
customarily granted to entities with market-based rate authority, except where the failure to have
such orders would not reasonably be expected to have a Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)&nbsp;With respect to each of the Company&#146;s subsidiaries that is a public utility under the
FPA, the FERC has not imposed any rate caps or mitigation measures other than rate caps and
mitigation measures generally applicable to similarly situated marketers or generators selling
electricity, ancillary services or other services at wholesale in the geographic market where such
subsidiary conducts its business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb)&nbsp;Each of the Company&#146;s subsidiaries that owns and/or operates an Eligible Facility within
the meaning of Section&nbsp;32 of PUHCA, has received a determination from FERC, not subject to any
pending challenge or appeal, that it is an Exempt Wholesale Generator (&#147;<U>EWG</U>&#148;), within the
meaning of Section&nbsp;32 of PUHCA and such determination is not subject to invalidation based on
changed facts or circumstances regarding its ownership or operation since issuance of such
determination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc)&nbsp;Each of the Company&#146;s subsidiaries providing electric service in the Electric Reliability
Council of Texas, Inc. (&#147;<U>ERCOT</U>&#148;) (i)&nbsp;has all authorizations, filings, registrations,
notices, consents, agreements or orders from, with or to, the Texas Public Utilities Commission
(&#147;<U>TPUC</U>&#148;) and ERCOT, as applicable, necessary for such subsidiary to engage in sales of
electricity under the laws of the State of Texas, except where the failure to have such orders
would not reasonably be expected to have a Material Adverse Effect, and each such authorization,
filing, registration, notice, consent, agreement or order is not subject to any pending challenge,
investigation, or proceeding, authorizing or to invalidation based on changed facts or
circumstances regarding its ownership or operation since the issuance, execution, submittal or
grant of such authorization, filing, registration, notice, consent, agreement or order and (ii)&nbsp;has
not had imposed on it by TPUC or ERCOT, as applicable, any specific rate cap or mitigation
measures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd)&nbsp;Each of the Company&#146;s subsidiaries providing retail energy services has full
authorization to provide retail energy services to retail industrial, commercial and residential
customers in its applicable states under the applicable Energy Laws, except as would not reasonably
be expected to have a Material Adverse Effect. &#147;<U>Energy Laws</U>&#148; shall mean any state and local
energy laws and regulations, in each of the states, regions or other applicable jurisdictions in
which the Company and its subsidiaries are organized or otherwise conduct business, applicable to:
(i)&nbsp;the ownership, operation, or control of electric generation, transmission, and distribution
facilities; (ii)&nbsp;the purchase, sale, transmission, distribution, marketing or trading of electric
energy; and (iii)&nbsp;organizational, financial and rate regulation of entities engaged in (i)&nbsp;and (ii)
above.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee)&nbsp;Except as shall be disclosed in the Prospectus, there are no material pending complaints
filed with the FERC, TPUC or ERCOT seeking abrogation or modification, or otherwise investigating
the terms of a contract for the sale of power by the Company or any of its subsidiaries.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff)&nbsp;The Company is subject to Section&nbsp;13 or 15(d) of the Exchange Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg)&nbsp;None of the transactions contemplated by this Agreement (including, without limitation,
the use of the proceeds from the sale of the Securities) will violate or result in a violation of
Section&nbsp;7 of the Exchange Act, or any regulation promulgated thereunder, including, without
limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh)&nbsp;Prior to the date hereof, neither the Company nor any of its affiliates has taken any
action which is designed to or which has constituted or which might have been expected to cause or
result in stabilization or manipulation of the price of any security of the Company in connection
with the offering of the Securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Neither the Company nor any of the Scheduled Subsidiaries is (i)&nbsp;in violation of its
Certificate of Incorporation, By-laws or other organizational documents or (ii)&nbsp;in default in the
performance or observance of any material obligation, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement, lease or other material agreement or instrument
to which it is a party or by which it or any of its properties may be bound, except, in relation to
this clause (ii), as would not reasonably be expected to have a Material Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj)&nbsp;The statements set forth in the Prospectus under the captions &#147;Description of the Notes&#148;
and &#147;Description of Capital Stock,&#148; and the statements set forth under the caption &#147;Legal
Proceedings&#148; contained in the Company&#146;s Annual Report on Form 10-K for the fiscal year ended
December&nbsp;31, 2004, filed with the Commission on March&nbsp;31, 2005 (the &#147;<U>2004 10-K</U>&#148;), as
updated or superceded by the statements set forth under the caption &#147;Legal Proceedings&#148; contained
in the Company&#146;s Quarterly Report on Form 10-Q for the quarter ended March&nbsp;31, 2005, filed with the
Commission on May&nbsp;11, 2005 (the &#147;First Quarter 10-Q&#148;), which are incorporated by reference in the
Prospectus, and as any of the foregoing shall be updated or superceded by statements contained in
the Prospectus, insofar as such statements and descriptions purport to describe the provisions of
the laws and documents referred to therein, are accurate, complete and fair in all material
respects.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk)&nbsp;Each of Netherland, Sewell &#038; Associates Inc. and Gilbert Laustsen Jung Associates Ltd. is
an independent petroleum engineering firm and nothing has come to the Company&#146;s attention to cause
it to believe that either such firm is not qualified to pass on questions relating to the reserves
and production of the Company&#146;s oil and gas properties as set forth or incorporated by reference in
the Prospectus.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll)&nbsp;The present fair saleable value of the assets of the Company and each of the Scheduled
Subsidiaries exceeds the amount required to pay the probable liability on its and their existing
debts, respectively (whether matured or unmatured, liquidated or unliquidated, absolute, fixed or
contingent), as they become absolute and matured, and as a result of consummation of the
transactions contemplated herein and in the Prospectus, will continue to exceed such amount.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm)&nbsp;The Company, does not, and, as a result of consummation of the transactions contemplated
herein and in the Prospectus, will not, have unreasonably small capital for it to carry on its
business as proposed to be conducted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn)&nbsp;Neither the Company nor any of the Scheduled Subsidiaries are incurring obligations or
making transfers under any evidence of indebtedness with the intent to hinder, delay or defraud any
entity to which it is or will become indebted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo)&nbsp;PricewaterhouseCoopers LLP, who have expressed an opinion as to certain financial
statements of the Company and its consolidated subsidiaries, and have audited the Company&#146;s
internal control over financial reporting and management&#146;s assessment thereof, and Deloitte &#038;
Touche LLP, who have expressed an opinion as to certain financial statements of the Company and its
consolidated subsidiaries, are each independent public accountants as required by the Securities
Act and the rules and regulations of the Commission thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp)&nbsp;Except as shall be disclosed in the Prospectus, the Company maintains a system of
internal control over financial reporting (as such term is defined in Rule&nbsp;13a-15(f) of the
Exchange Act) designed by the Company&#146;s principal executive officer and principal financial
officer, or under their supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. Except as shall be disclosed in the Prospectus, the
Company&#146;s internal control over financial reporting was effective in all material respects to
perform the functions for which it was established as of the end of the fiscal year ended December
31, 2004, and the Company was not aware of any material weaknesses in its internal control over
financial reporting at such time. As of the date hereof, except as shall be disclosed in the
Prospectus, the Company is not aware of any material weakness in its internal control over
financial reporting, it being understood that the management of the Company has not conducted an
evaluation of the effectiveness of the Company&#146;s internal control over financial reporting for any
period after December&nbsp;31, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq)&nbsp;Since the date of the latest audited financial statements that shall be included or
incorporated by reference in the Prospectus, except as shall be disclosed in the Prospectus, there
has been no change in the Company&#146;s internal control over financial reporting that has materially
adversely affected, or is reasonably likely to materially adversely affect, the Company&#146;s internal
control over financial reporting.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr)&nbsp;Except as shall be disclosed in the Prospectus, the Company maintains disclosure controls
and procedures (as such term is defined in Rule


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<P align="left" style="font-size: 10pt">13a-15(e) of the Exchange Act) that have been designed to ensure that material information
relating to the Company and its consolidated subsidiaries is made known to the Company&#146;s principal
executive officer and principal financial officer by others within those entities; except as shall
be disclosed in the Prospectus, such disclosure controls and procedures were effective in all
material respects to perform the functions for which they were established as of the end of the
quarter ended March&nbsp;31, 2005 and, as of the date hereof, the Company is not aware of any material
weaknesses in such disclosure controls and procedures other than as shall be disclosed in the
Prospectus, it being understood that the management of the Company has not conducted an evaluation
of the effectiveness of the Company&#146;s disclosure controls and procedures for any period after March
31, 2005.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Purchase, Sale and Delivery of Securities. Subject to the terms and conditions herein set
forth, (a)&nbsp;the Company agrees to issue and sell to the Underwriter, and the Underwriter agrees, to
purchase from the Company, at a purchase price of 97.75% of the principal amount thereof, all of
the Securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will deliver against payment of the purchase price the Securities in the form of
one or more global Securities in definitive form (the &#147;<U>Global Securities</U>&#148;) deposited by or
on behalf of the Company with The Depository Trust Company (&#147;<U>DTC</U>&#148;) and registered in the
name of Cede &#038; Co., as nominee for DTC. Interests in any Global Securities will be held only in
book-entry form through DTC, except in the limited circumstances that shall be described in the
Prospectus and the Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for the Securities shall be made by the Underwriter in Federal (same day) funds by
official bank check or checks or wire transfer to an account at a bank acceptable to the
Underwriter drawn to the order of Calpine Corporation at the office of Covington &#038; Burling, 1330
Avenue of the Americas, New York, New York, at 10:00&nbsp;A.M. (New York time), on June&nbsp;23, 2005 or at
such other time thereafter as the Underwriter and the Company may agree upon in writing, such time
being herein referred to as the &#147;<U>Closing Date</U>,&#148; against delivery to the Trustee as
custodian for DTC of the Global Securities representing all of the Securities. The Global
Securities representing the Securities will be made available for checking at the above office of
Covington &#038; Burling (or such other location as the Underwriter may direct) at least 24 hours prior
to the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;Certain Agreements of the Company. The Company agrees with the Underwriter that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company will file the Prospectus Supplement with the Commission pursuant to and in
accordance with Rule&nbsp;424(b)(2) (or, if applicable and if consented to by the Underwriter,
subparagraph (5)&nbsp;thereof) not later than the second business day following the date of this
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;So long as a prospectus relating to the Securities is required to be delivered under the
Securities Act in connection with sales of the Securities by the Underwriter or any dealer, the
Company will advise the Underwriter promptly of any


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<P align="left" style="font-size: 10pt">proposal to amend or supplement the Registration Statement or the Prospectus and will afford
the Underwriter a reasonable opportunity to comment on any proposed amendment or supplement
thereto; and the Company will advise the Underwriter promptly of the effectiveness of any such
amendment or supplement and of the institution by the Commission of any stop order proceedings in
respect of the Registration Statement or of any part thereof and will use its best efforts to
prevent the issuance of any such stop order and to obtain as soon as possible its lifting, if
issued. If, at any time when a prospectus relating to the Securities is required to be delivered
under the Securities Act in connection with sales of the Securities by the Underwriter or any
dealer, any event occurs as a result of which the Prospectus as then amended or supplemented would
include an untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or if it is necessary at any time to amend the Prospectus to comply with the
Securities Act, the Company promptly will notify the Underwriter of such event and promptly will
prepare and file with the Commission, at its own expense, an amendment or supplement which will
correct such statement or omission or effect such compliance. Neither the Underwriter&#146;s consent to,
nor the Underwriter&#146;s delivery to offerees or investors of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section&nbsp;5.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company will furnish to the Underwriter copies of the Registration Statement (two of
which will be signed and will include all exhibits), any related Preliminary Prospectus, the
Prospectus and all amendments and supplements to such documents, in each case in such quantities as
the Underwriter requests, so long as a prospectus relating to the Securities is required to be
delivered under the Securities Act in connection with sales of the Securities by the Underwriter or
any dealer. The Prospectus shall be so furnished on or prior to 3:00 P.M., New York time, on the
business day following the date of this Agreement. All other documents shall be so furnished as
soon as available. The Company will pay the expenses of printing and distributing to the
Underwriter all such documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company will arrange for the qualification of the Securities and the shares of Stock
issuable upon conversion of the Securities under the terms of the Indenture for sale and the
determination of their eligibility for investment under the laws of such jurisdictions as the
Underwriter designates and will continue such qualifications in effect so long as required for the
distribution of the Securities, provided that the Company will not be required (i)&nbsp;to qualify as a
foreign corporation, (ii)&nbsp;to file a general consent to service of process in any such state or
(iii)&nbsp;to take any action that would subject itself to taxation in any jurisdiction if it is not
otherwise so subject.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;During the period of two years hereafter, the Company will furnish to the Underwriter as
soon as practicable after the end of each fiscal year, a copy of its annual report to stockholders
for such year; and the Company will furnish to the Underwriter (i)&nbsp;as soon as available, a copy of
each such report and any definitive proxy statement of the Company filed with the Commission under
the Exchange Act or mailed to stockholders, and (ii)&nbsp;from time to time, such other information
concerning the


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<P align="left" style="font-size: 10pt">business and financial condition of the Company as the Underwriter may reasonably request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;During the period of two years after the Closing Date, the Company will not be or become
an open-end investment company or unit investment trust or face amount certificate company that is
or is required to be registered under Section&nbsp;8 of the Investment Company Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Company will pay all expenses incident to the performance of its obligations under
this Agreement, including (i)&nbsp;all expenses in connection with the execution, issue, authentication,
packaging and initial delivery of the Securities, the preparation and printing of this Agreement,
the Securities and amendments and supplements thereto, and any other document relating to the
issuance, offer, sale and delivery of the Securities; (ii)&nbsp;any expenses (including fees and
disbursements of counsel) incurred in connection with qualification of the Securities for sale
under the laws of such jurisdictions in the United States and Canada as the Underwriter designates
and the printing of memoranda relating thereto; (iii)&nbsp;any fees charged by investment rating
agencies for the rating of the Securities; (iv)&nbsp;expenses incurred in distributing the Prospectus
and the Preliminary Prospectus (including any amendments and supplements thereto) to the
Underwriter; (v)&nbsp;the fees and expenses of the Trustee and any agent of the Trustee and the fees and
disbursements of counsel for the Trustee in connection with the Indenture and the Securities; (vi)
the cost of registering and qualifying the Stock for trading on The New York Stock Exchange or
other applicable exchange; and (vii)&nbsp;all other costs and expenses incident to the performance of
its obligations hereunder which are not otherwise specifically provided for in this Section&nbsp;4. The
Company will reimburse the Underwriter for all travel expenses of the Underwriter and the Company&#146;s
officers and employees and any other expenses of the Underwriter and the Company in connection with
attending or hosting meetings with prospective purchasers of the Securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;In connection with the offering, until the Underwriter shall have notified the Company of
the completion of the distribution of the Securities, neither the Company nor any of its affiliates
has or will, either alone or with one or more other persons, bid for or purchase for any account in
which it or any of its affiliates has a beneficial interest, any Securities or the Company&#146;s common
stock; and neither it nor any of its affiliates will make bids or purchases for the purpose of
creating actual, or apparent, active trading in, or of raising the price of, the Securities or the
Company&#146;s common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;As soon as practicable, but not later than 16&nbsp;months, after the date hereof, the Company
will make generally available to their security holders an earnings statement covering a period of
at least 12&nbsp;months beginning after the later of (i)&nbsp;the effective date of the Registration
Statement relating to the Securities, (ii)&nbsp;the effective date of the most recent post-effective
amendment to the Registration Statement to become effective prior to the date hereof, and (iii)&nbsp;the
date of the Company&#146;s 2004 10-K, which will satisfy the provisions of Section 11(a) of the Act.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Between the date hereof and the Closing Date, the Company shall not do or authorize any
act or thing that would have resulted in an adjustment of the conversion price of the Securities if
the Securities had been issued on the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The Company shall reserve and keep available at all times, free of preemptive rights,
sufficient shares of Stock for the purpose of enabling the Company to satisfy any obligations to
issue shares of its Stock upon conversion of the Securities under the terms of the Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;The Company will use its best efforts to list, subject to notice of issuance, the shares
of Stock issuable upon conversion of the Securities under the terms of the Indenture on The New
York Stock Exchange.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;The Company will use the net proceeds received by it from the sale of the Securities
pursuant to this Agreement in the manner specified in the Prospectus under the caption &#147;Use of
Proceeds&#148; within 30&nbsp;days after the Closing Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;During the period from the date hereof to 90&nbsp;days after the Closing Date (the &#147;<U>Company
Lock-Up Period</U>&#148;), the Company will not sell or cause to be offered, sold or contracted to sell,
or otherwise dispose of, except as provided hereunder, any Stock or convertible securities that are
convertible into shares of Stock without the prior written consent of Goldman Sachs (which consent
shall be in its sole discretion), except that no such consent shall be necessary for (i)&nbsp;grants of
employee stock options or other stock awards pursuant to the terms of Company option plans existing
on the date of this Agreement or hereafter (provided that, during the Company Lock-Up Period, any
change to such plans does not provide for an increase in the aggregate number of shares of Stock
available for grant thereunder) and issuances of shares of Stock pursuant to the exercise of such
options, (ii)&nbsp;issuances of shares of Stock pursuant to the terms of the Company&#146;s employee stock
purchase plan existing on the date of this Agreement or hereafter (provided that, during the
Company Lock-Up Period, any change to such plans does not provide for an increase in the aggregate
number of shares of Stock available to be issued thereunder), (iii)&nbsp;issuances of shares of Stock
pursuant to the exercise of any other employee stock options outstanding as of the date of this
Agreement, (iv)&nbsp;issuances of shares of Stock upon the conversion or exchange of convertible or
exchangeable securities of the Company outstanding as of the date of this Agreement, and (v)
issuances of shares of Stock upon the conversion of the Securities under the terms of the
Indenture. Notwithstanding the foregoing, it is understood that the Company may issue additional
shares of Stock pursuant to Section&nbsp;3(a)(9) of the Securities Act in connection with the exchange
of shares of Stock for the Company&#146;s outstanding Contingent Convertible Notes due 2014 (except that
such issuances are limited to an aggregate of 29,000,000 shares of Stock).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;Conditions of the Obligations of the Underwriter. The obligation of the Underwriter to
purchase and pay for the Securities on the Closing Date will be subject to the accuracy of the
representations and warranties on the part of the Company herein on the date hereof and on the
Closing Date, to the accuracy of the statements of officers


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<P align="left" style="font-size: 10pt">of the Company made pursuant to the provisions hereof, to the performance by the Company of
its obligations hereunder and to the following additional conditions precedent:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Underwriter shall have received on each of the date hereof and the Closing Date
&#147;comfort&#148; letters, in form and substance satisfactory to the Underwriter, from each of Deloitte &#038;
Touche LLP (with respect to periods ending on or before December&nbsp;31, 2002) and
PricewaterhouseCoopers LLP (with respect to the period beginning after December&nbsp;31, 2002). The
comfort letter delivered by PricewaterhouseCoopers LLP shall include, among other items, a SAS No.
100 review of the three month period ended March&nbsp;31, 2005 and customary &#147;tick mark&#148; procedures
addressing numbers included in or incorporated by reference in the Prospectus, including the
Company&#146;s 2004 10-K and First Quarter 10-Q, included or incorporated by reference therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Prospectus shall have been filed with the Commission in accordance with the Rules and
Regulations and Section 4(a) of this Agreement. No stop order suspending the effectiveness of the
Registration Statement or of any part thereof shall have been issued and no proceedings for that
purpose shall have been instituted or, to the knowledge of the Company or any Underwriter, shall be
contemplated by the Commission.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Chief Financial Officer of the Company shall have furnished a certificate, dated the
Closing Date, in form and substance satisfactory to the Underwriter, stating to the effect that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company does not intend to or believe that it has incurred or will incur debts that
will be beyond its ability to pay as they mature;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The present fair saleable value of the assets of the Company exceeds the amount that will
be required to pay the probable liability on its existing debts (whether matured or unmatured,
liquidated or unliquidated, absolute, fixed or contingent) as they become absolute and matured;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Company does not have unreasonably small capital for it to carry on its businesses
as proposed to be conducted; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Company is not incurring obligations or making transfers under any evidence of
indebtedness with the intent to hinder, delay or defraud any entity to which it is or will become
indebted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Subsequent to the execution and delivery of this Agreement and prior to the Closing Date,
there shall not have occurred (i)&nbsp;any change, or any development or event involving a prospective
change, in the condition (financial or other), business, properties or results of operations of the
Company and its subsidiaries taken as a whole which, in the judgment of the Underwriter, is
material and adverse and makes it impractical or inadvisable to proceed with completion of the
public offering or the sale of and payment for the Securities; (ii)&nbsp;any downgrading in the current
rating


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<P align="left" style="font-size: 10pt">accorded any debt securities or preferred stock of the Company; (iii)&nbsp;any suspension or
material limitation of trading in securities generally on The New York Stock Exchange, or any
setting of minimum prices for trading on such exchange, or any suspension of trading of any
securities of the Company on any exchange or in the over-the-counter market; (iv)&nbsp;a general
moratorium on commercial banking activities declared by either Federal or New York State
authorities or a material disruption in commercial banking or securities settlement or clearance
services in the United States which, in the judgment of the Underwriter, makes it impracticable or
inadvisable to proceed with the completion of the offering of the Securities; or (v)&nbsp;any outbreak
or escalation of major hostilities in which the United States is involved, any declaration of war
by Congress or any other substantial national or international calamity or emergency if, in the
judgment the Underwriter, the effect of any such outbreak, escalation, declaration, calamity or
emergency makes it impractical or inadvisable to proceed with the completion of the offering or the
sale of and payment for the Securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Underwriter shall have received an opinion, in form and substance reasonably
satisfactory to the Underwriter, dated the Closing Date, of Covington &#038; Burling, counsel for the
Company, to the effect that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company is a corporation duly incorporated, validly existing and in good standing
under the laws of the State of Delaware and has the corporate power and authority to own its
properties and conduct its business as described in the Prospectus and to issue the Securities and
the shares of Stock issuable upon conversion of the Securities;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;All conditions precedent (including any covenants the compliance with which constitutes a
condition precedent) provided for in the Indenture with respect to the authentication and delivery
of the Securities have been complied with, the form and terms of the Securities have been
established in conformity with the provisions of the Indenture, and the Securities will be entitled
to the benefits of the Indenture; the Supplemental Indenture is authorized or permitted by the Base
Indenture;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;(A)&nbsp;the Company has duly authorized, executed and delivered this Agreement, the
Securities and the Indenture (collectively, the &#147;<U>Company Agreements</U>&#148;); the Indenture
constitutes the valid and binding obligation of the Company, enforceable in accordance with its
terms, and, when duly executed, authenticated, issued and delivered in the manner provided in the
Indenture, the Securities will constitute the valid and binding obligations of the Company,
enforceable in accordance with their terms, in each case subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and other laws of general applicability relating to
or affecting creditors&#146; rights and to general equity principles; and the Indenture has been duly
qualified under the Trust Indenture Act;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Securities will be convertible into shares of Stock in accordance with the terms of
the Securities and the Indenture. The shares of Stock initially issuable upon such conversion have
been duly authorized and reserved for


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<P align="left" style="font-size: 10pt">issuance upon such conversion by the Company and, when issued upon such conversion in
accordance with the terms of the Securities and the Indenture, will be validly issued, fully paid
and non-assessable. The shares of Stock issued upon such conversion will not be subject to any
preemptive rights, or to such counsel&#146;s knowledge, any similar rights, under the law of the State
of New York, the Federal law of the United States of America or the Company&#146;s certificate of
incorporation or by-laws;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Except as set forth on Schedule&nbsp;B hereto, there are no contracts, agreements or
understandings known to such counsel between the Company and any person granting such person the
right to require the Company to file a registration statement under the Securities Act with respect
to any securities of the Company owned or to be owned by such person or to require the Company to
include such securities in any other registration statement filed by the Company under the
Securities Act;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;The Company is not and, after giving effect to the offering and sale of the Securities
and the application of the proceeds thereof as described in the Prospectus, will not be an
&#147;investment company&#148; within the meaning of the Investment Company Act;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;No consent, approval, authorization, license, permit or order of, or filing with, any
governmental agency or body or any court under the law of the State of New York, the Delaware
General Corporation Law or the Federal law of the United States of America is required for the
consummation by the Company of the transactions contemplated by the Company Agreements in
connection with the issuance or sale of the Securities by the Company, except for (a)&nbsp;such as have
been obtained and made under the Securities Act and the Trust Indenture Act and the respective
rules and regulations thereunder and (b)&nbsp;any of the foregoing as may be required with respect to
the Securities under State securities or blue sky laws and the rules and regulations promulgated
thereunder;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;Except such as are set forth in the Prospectus, to such counsel&#146;s knowledge, there are
no pending or threatened actions, suits or proceedings against or affecting the Company, any
Scheduled Subsidiary or any of their respective properties that, if determined adversely to the
Company or any such Scheduled Subsidiary, would individually or in the aggregate have a Material
Adverse Effect or would materially and adversely affect the ability of the Company to perform its
obligations under the Company Agreements;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;The execution, delivery and performance by the Company of the Company Agreements; the
issuance and sale of the Securities; and the consummation of the transactions contemplated by the
Company Agreements, will not (A)&nbsp;violate or conflict with any law of the State of New York, the
Delaware General Corporation Law, or any Federal law of the United States of America having
applicability to the Company or the Scheduled Subsidiaries, or any rule, regulation or order known
to such counsel of any governmental body or any court having jurisdiction over the Company, any
Scheduled Subsidiary or any of their respective properties, (B)&nbsp;except as


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<P align="left" style="font-size: 10pt">set forth in the Prospectus, to such counsel&#146;s knowledge, breach the provisions of, or cause a
default, or result in the imposition or creation of (or the obligation to create or impose) a lien
under any agreement or instrument listed in Schedule&nbsp;D hereto, which agreements the Company has
certified to such counsel are the only agreements of the Company which are material to the Company
and its subsidiaries on a consolidated basis taken as a whole, or (C)&nbsp;violate any provision of the
charter, by-laws or any other constitutive document of the Company or any such Scheduled
Subsidiary;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;The Securities and the Indenture conform in all material respects to the respective
descriptions thereof contained in the Prospectus; the statements in the Prospectus under the
captions &#147;Description of the Notes,&#148; &#147;Description of Capital Stock&#148; and &#147;Material United States
Federal Income Tax Consequences,&#148; insofar as such statements constitute summaries of the laws,
regulations, legal matters, agreements or other legal documents referred to therein, are accurate
in all material respects and fairly summarize the matters referred to therein; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;The Registration Statement was declared effective under the Securities Act as of the date
and time specified in such opinion, the Prospectus was filed with the Commission pursuant to the
subparagraph of Rule 424(b) specified in such opinion on the date specified therein, and, to such
counsel&#146;s knowledge, no stop order suspending the effectiveness of the Registration Statement or
any part thereof has been issued and no proceedings for that purpose have been instituted or are
pending or contemplated under the Securities Act, and the Registration Statement, as of its
effective date, and the Prospectus, as of its date, complied as to form in all material respects
with the requirements of the Securities Act and the Rules and Regulations (except that such counsel
need express no opinion or belief as to the financial statements and the notes related thereto and
other financial data included or incorporated by reference in the Registration Statement or the
Prospectus, or as to that part of the Registration Statement that constitutes the Statement of
Eligibility (Form T-1) under the Trust Indenture Act).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the matters set forth above, such opinion shall also include a statement to the
effect that, based on the procedures set forth in said opinion, nothing which came to such
counsel&#146;s attention in the course of such procedures, considered in the light of such counsel&#146;s
understanding of the applicable law and the experience gained by such counsel through its practice
under the Federal securities laws, has caused such counsel to believe that the Registration
Statement, as of its effective date, contained any untrue statement of a material fact or omitted
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading or that the Prospectus, as of its date and as of the Closing Date, contained
or contains any untrue statement of a material fact or omitted or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading (except that such counsel need express no opinion or belief as to the
financial statements and the notes thereto and other financial data included or incorporated by
reference in the Registration Statement or the Prospectus, or to that part of the Registration
Statement that constitutes the Statement of Eligibility (Form T-1) under the Trust Indenture Act).


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Underwriter shall have received an opinion, in form and substance reasonably
satisfactory to the Underwriter, dated the Closing Date, of senior in-house counsel of the Company,
to the effect that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Company has an authorized capitalization as set forth in the Prospectus, and all of
the issued and outstanding shares of capital stock of the Company have been duly authorized and
validly issued and are fully paid and non-assessable;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Each Scheduled Subsidiary of the Company (x)&nbsp;other than those Scheduled Subsidiaries
specified in clause (y)&nbsp;below has been duly incorporated, is validly existing as a corporation in
good standing under the laws of the jurisdiction of its incorporation, and has corporate power and
authority to own its property and to conduct its business as described in the Prospectus and (y)
that is not a corporation is a limited liability company, has been duly formed and is validly
existing as a limited liability company in good standing under the laws of the jurisdiction of its
formation, and has full power and authority to own its property and to conduct its business as
described in the Prospectus;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Company and each of the Scheduled Subsidiaries possess adequate certificates,
authorities, licenses or permits issued by appropriate governmental agencies or bodies necessary to
conduct the business as now operated by them as described in the Prospectus, except where the
failure to possess the same would not reasonably be expected to have a Material Adverse Effect, and
such counsel is not aware of the receipt of any notice of proceedings relating to the revocation or
modification of any such certificate, authority, license or permit that, if determined adversely to
the Company or any of the Scheduled Subsidiaries, would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The contracts and agreements of the Company and the Scheduled Subsidiaries and affiliates
incorporated by reference in the Prospectus (including in any reports filed by the Company pursuant
to the Exchange Act which are incorporated by reference in the Prospectus, the &#147;<U>Exchange Act
Reports</U>&#148;) conform in all material respects to the descriptions thereof contained in the
Prospectus (or such Exchange Act Reports), and the statements under the captions &#147;Summary &#151; Recent
Developments&#148; in the Prospectus and &#147;Business &#151; Recent Developments,&#148; &#147;Executive Compensation,&#148;
&#147;Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters&#148;
and &#147;Certain Relationships and Related Transactions&#148; in the Company&#146;s 2004 10-K, as well as the
statements under the caption &#147;Legal Proceedings&#148; in the Company&#146;s 2004 10-K, as updated or
superceded by the statements under the caption &#147;Legal Proceedings&#148; in the Company&#146;s First Quarter
10-Q, and as any of the foregoing shall be updated or superceded by statements contained in the
Prospectus, insofar as such statements constitute summaries of the legal matters, documents and
governmental proceedings referred to therein, are accurate in all material respects and fairly
summarize and present the information referred to therein;


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Except as set forth in the Prospectus, to such counsel&#146;s knowledge, the Company and each
of its subsidiaries (i)&nbsp;is in material compliance with any and all applicable Environmental Laws,
(ii)&nbsp;has received all permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business and (iii)&nbsp;is in compliance with all terms and conditions
of any such permit, license or approval, except where such noncompliance with Environmental Laws,
failure to receive required permits, licenses or other approvals or failure to comply with the
terms and conditions of such permits, licenses or approvals would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;To such counsel&#146;s knowledge, based on the conduct of the Company&#146;s businesses described
in the Prospectus, neither the Company nor any &#147;subsidiary company,&#148; as that term is defined in
PUHCA, of the Company is (i)&nbsp;a &#147;holding company&#148; or a &#147;subsidiary company&#148; of a holding company or
(ii)&nbsp;a &#147;public utility company&#148; under Section 2(a) of PUHCA (except that Androscoggin Energy LLC,
which is a QF, and Arcadia Power Partners, which is an EWG, are subsidiary companies of holding
companies);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;Each of the power generation projects in which the Company or its subsidiaries has an
interest is either (i)&nbsp;subject to the requirements of PURPA and the regulations of the FERC
promulgated thereunder, as amended from time to time, and meets the requirements thereunder
necessary to be a &#147;qualifying cogeneration facility&#148; and/or a &#147;qualifying small power production
facility,&#148; under PURPA except where the failure to meet such requirements would not reasonably be
expected to have a Material Adverse Effect or (ii)&nbsp;is an Eligible Facility within the meaning of
Section&nbsp;32 of PUHCA;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;Each of the Company&#146;s subsidiaries that is a public utility under the FPA has
validly-issued orders from the FERC, not subject to invalidation based on changed facts or
circumstances regarding its ownership or operation since issuance of such orders or to any pending
challenge, investigation, or proceeding, (i)&nbsp;authorizing such subsidiary to engage in wholesale
sales of electricity, ancillary services and, to the extent permitted under its market-based rate
tariff, other services at market-based rates, and (ii)&nbsp;granting such waivers and blanket
authorizations, including authorization to issue securities or assume obligations or liabilities,
as are customarily granted to entities with market-based rate authority, except where the failure
to have such orders would not reasonably be expected to have a Material Adverse Effect;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;With respect to each of the Company&#146;s subsidiaries that is a public utility under the
FPA, the FERC has not imposed any rate caps or mitigation measures other than rate caps and
mitigation measures generally applicable to similarly situated marketers or generators selling
electricity, ancillary services or other services at wholesale in the geographic market where such
subsidiary conducts its business;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;Each of the Company&#146;s subsidiaries that owns and/or operates an Eligible Facility within
the meaning of Section&nbsp;32 of PUHCA, has


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<P align="left" style="font-size: 10pt">received a determination from FERC, not subject to any pending challenge or appeal, that it is
an EWG within the meaning of Section&nbsp;32 of PUHCA and such determination is not subject to
invalidation based on changed facts or circumstances regarding its ownership or operation since
issuance of such determination;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;To such counsel&#146;s knowledge, each of the Company&#146;s subsidiaries providing electric
service in the ERCOT (i)&nbsp;has all authorizations, filings, registrations, notices, consents,
agreements, or orders from, with or to, the TPUC and ERCOT, as applicable, necessary for such
subsidiary to engage in sales of electricity at retail under the laws of the State of Texas, except
where the failure to have such orders would not reasonably be expected to have a Material Adverse
Effect, and each such authorization, filing, registration, notice, consent, agreement or order is
not subject to any pending challenge, investigation, or proceeding, authorizing or to invalidation
based on changed facts or circumstances regarding its ownership or operation since the issuance,
execution, submittal or grant of such authorization, filing, registration, notice, consent,
agreement or order and (ii)&nbsp;has not had imposed on it by TPUC or ERCOT, as applicable, any specific
rate cap or mitigation measures; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;The execution, delivery and performance of this Agreement and the Indenture and the
issuance and sale of the Securities and the Stock contingently issuable upon conversion thereof,
and compliance by the Company with the terms and provisions hereof and thereof, and the
consummation of the transactions contemplated hereby and thereby, will not (A)&nbsp;violate any statute,
rule, regulation or order of which such counsel is aware of any governmental agency or body or any
court having jurisdiction over the Company or any Scheduled Subsidiary of the Company or any of
their respective properties, (B)&nbsp;to such counsel&#146;s knowledge, breach the provisions of, or cause a
default, or result in the imposition or creation of (or the obligation to create or impose) a lien
under any agreement or instrument to which the Company or any such Scheduled Subsidiary is a party
or by which the Company or any such Scheduled Subsidiary is bound or to which any of the properties
of the Company or any such Scheduled Subsidiary is subject, or (C)&nbsp;violate any provision of the
charter, by-laws or any other constitutive document of the Company or any such Scheduled
Subsidiary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In giving such opinion, such counsel may rely, as to all matters governed by the laws of
jurisdictions other than the law of the State of California, the federal law of the United States
and the corporate law of the State of Delaware, upon opinions of other counsel, who shall be
counsel reasonably satisfactory to counsel for the Underwriter, in which case the opinion of such
other counsel shall also be addressed to the Underwriter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Underwriter shall have received from Skadden, Arps, Slate, Meagher &#038; Flom LLP, counsel
to the Underwriter, such letters or opinions, dated the Closing Date, with respect to such matters
as the Underwriter may require, and the Company shall have furnished to such counsel such documents
as they request for the purpose of enabling them to pass upon such matters.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;The Underwriter shall have received a certificate, dated the Closing Date, of the
President or any Vice President or a principal financial or accounting


<P align="center" style="font-size: 10pt">21
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">officer of the Company in which such officer, to the best of his or her knowledge after
reasonable investigation, shall state that the representations and warranties of the Company in
this Agreement are true and correct as of the Closing Date; the Company has complied with all
agreements and satisfied all conditions on their part to be performed or satisfied hereunder at or
prior to the Closing Date; and, subsequent to the date of the most recent financial statements
contained or incorporated by reference in the Prospectus, there has been no material adverse
change, nor any development or event involving a prospective material adverse change, in the
condition (financial or other), business, properties or results of operations of the Company and
its subsidiaries taken as a whole, whether or not arising in the ordinary course of business,
except as set forth in or contemplated by the Prospectus or as described in such certificate. In
addition, the Chief Financial Officer of the Company shall have furnished a confirmation, in form
and substance satisfactory to the Underwriter, of the Company&#146;s compliance with the debt incurrence
provisions of its existing indentures, attaching an analysis of the calculations, set forth in
reasonable detail, used in providing such confirmation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The shares of Stock initially issuable upon conversion of the Securities under the terms
of the Indenture shall have been duly listed, subject to notice of issuance, on The New York Stock
Exchange.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The Company shall have delivered executed copies of the Company Agreements to the
Underwriter, in each case in form and substance reasonably satisfactory to the Company and the
Underwriter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;The Underwriter shall have received letters, in the Form of Annex I hereto, dated no later
than the date hereof from the persons specified in Schedule&nbsp;C hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;The Company will furnish the Underwriter with conformed copies of such other opinions and
certificates, letters and documents as the Underwriter reasonably requests. The Underwriter may in
its sole discretion waive compliance with any conditions to the obligations of the Underwriter
hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Indemnification and Contribution. (a)&nbsp;The Company will indemnify and hold harmless the
Underwriter, its affiliates participating in the distribution of the Securities, its partners,
directors and officers and each person, if any, who controls the Underwriter within the meaning of
Section&nbsp;15 of the Securities Act or Section&nbsp;20 of the Exchange Act, against any losses, claims,
damages or liabilities, joint or several, to which the Underwriter may become subject, under the
Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Registration Statement, the
Prospectus, or any amendment or supplement thereto, or any related Preliminary Prospectus or arise
out of or are based upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and will reimburse the Underwriter for
any legal or other expenses


<P align="center" style="font-size: 10pt">22
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">reasonably incurred by the Underwriter in connection with investigating or defending any such
loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the
Company will not be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement in or
omission or alleged omission from any of such documents in reliance upon and in conformity with
written information furnished to the Company by the Underwriter specifically for use therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Underwriter will indemnify and hold harmless the Company and its directors, officers
and trustees and each person, if any, who controls the Company within the meaning of Section&nbsp;15 of
the Securities Act or Section&nbsp;20 of the Exchange Act against any losses, claims, damages or
liabilities to which the Company may become subject, under the Securities Act or the Exchange Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Registration Statement, the Prospectus, or any amendment or
supplement thereto, or any related Preliminary Prospectus or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by the Underwriter specifically for
use therein, and will reimburse any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such loss, claim, damage, liability or action as
such expenses are incurred.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Promptly after receipt by an indemnified party under this Section&nbsp;6 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be
made against the indemnifying party under subsection (a)&nbsp;or (b)&nbsp;above, notify the indemnifying
party of the commencement thereof; but the omission so to notify the indemnifying party will not
relieve the indemnifying party from any liability which it may have to any indemnified party
otherwise than under subsection (a)&nbsp;or (b)&nbsp;above. In case any such action is brought against any
indemnified party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof, the indemnifying
party will not be liable to such indemnified party under this Section for any legal or other
expenses subsequently incurred by such indemnified party in connection with the defense thereof
other than reasonable costs of investigation. No indemnifying party shall, without the prior
written consent of the indemnified party, effect any settlement of any pending or threatened action
in respect of which any indemnified party is or could have been a party and indemnity could have
been sought hereunder by such indemnified party unless such settlement (i)&nbsp;includes an
unconditional


<P align="center" style="font-size: 10pt">23
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">release of such indemnified party from all liability on any claims that are the subject matter
of such action and (ii)&nbsp;does not include a statement as to, or an admission of, fault, culpability
or a failure to act by or on behalf of an indemnified party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If the indemnification provided for in this Section is unavailable or insufficient to hold
harmless an indemnified party under subsection (a)&nbsp;or (b)&nbsp;above, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a)&nbsp;or (b)&nbsp;above (i)&nbsp;in such proportion as
is appropriate to reflect the relative benefits received by the Company, on the one hand, and the
Underwriter, on the other, from the offering of the Securities or (ii)&nbsp;if the allocation provided
by clause (i)&nbsp;above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i)&nbsp;above but also the relative fault
of the Company, on the one hand, and the Underwriter, on the other, in connection with the
statements or omissions which resulted in such losses, claims, damages or liabilities as well as
any other relevant equitable considerations. The relative benefits received by the Company, on the
one hand, and the Underwriter, on the other, shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the Company bear to
the total discounts and commissions received by the Underwriter from the Company under this
Agreement. The relative fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or the Underwriter and the parties&#146;
relative intent, knowledge, access to information and opportunity to correct or prevent such untrue
statement or omission. The amount paid by an indemnified party as a result of the losses, claims,
damages or liabilities referred to in the first sentence of this subsection (d)&nbsp;shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any action or claim which is the subject of this subsection (d).
Notwithstanding the provisions of this subsection (d), the Underwriter shall not be required to
contribute any amount in excess of the amount by which the total price at which the Securities
purchased by it were resold exceeds the amount of any damages which the Underwriter has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The obligations of the Company under this Section shall be in addition to any liability
which the Company may otherwise have and shall extend, upon the same terms and conditions, to each
person, if any, who controls the Underwriter within the meaning of the Securities Act or the
Exchange Act; and the obligations of the Underwriter under this Section shall be in addition to any
liability which the Underwriter may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act.


<P align="center" style="font-size: 10pt">24
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or their officers and
of the Underwriter set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of the Underwriter and the Company or any of their respective officers or directors or any
controlling person, and will survive delivery of and payment for the Securities. If for any reason
the purchase of the Securities by the Underwriter is not consummated, the Company shall remain
responsible for the expenses to be paid or reimbursed by it pursuant to Section&nbsp;4 and the
respective obligations of the Company and the Underwriter pursuant to Section&nbsp;6 shall remain in
effect, and if any Securities have been purchased hereunder the representations and warranties in
Section&nbsp;2 and all obligations under Section&nbsp;4 shall also remain in effect. If the purchase of the
Securities by the Underwriter is not consummated for any reason other than solely because of the
termination of this Agreement pursuant to a default by the Underwriter, the Company will reimburse
the Underwriter for all out-of-pocket expenses (including fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Acknowledgment. The Company acknowledges and agrees that (i)&nbsp;the purchase and sale of the
Securities pursuant to this Agreement is an arm&#146;s-length commercial transaction between the
Company, on the one hand, and the Underwriter, on the other, (ii)&nbsp;in connection therewith the
Underwriter is acting as a principal and not the agent or fiduciary of the Company, and (iii)&nbsp;the
Underwriter has not assumed an advisory responsibility in favor of the Company with respect to the
offering contemplated hereby or the process leading thereto (irrespective of whether the
Underwriter has advised or is currently advising the Company on other matters) or any other
obligation to the Company except the obligations expressly set forth in this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;Notices. All communications hereunder will be in writing and, if sent to the Underwriter,
will be mailed, delivered, telegraphed and confirmed or faxed and confirmed to Goldman, Sachs &#038;
Co., 85 Broad St., New York, New York 10004, Attention: Registration Department; or, if sent to the
Company, will be mailed, delivered, telegraphed and confirmed or faxed and confirmed to it at
Calpine Corporation, 50 West San Fernando Street, San Jose, California 95113, Attention: General
Counsel.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section&nbsp;6, and no other person will have any right or obligation hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;Applicable Law. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT AND THE TERMS AND
CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE


<P align="center" style="font-size: 10pt">25
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY THEREIN.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company hereby submits to the non-exclusive jurisdiction of the Federal and state courts
in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby.


<P align="center" style="font-size: 10pt">&#091;Signature page follows.&#093;




<P align="center" style="font-size: 10pt">26
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing is in accordance with the Underwriter&#146;s understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement between the Company and the Underwriter in accordance with its terms.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<BR>
CALPINE CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Robert D. Kelly</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Robert D. Kelly</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">S-1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing Underwriting Agreement is hereby confirmed and accepted as of the date first
above written.


<P align="left" style="font-size: 10pt; margin-left: 50%">GOLDMAN, SACHS &#038; CO.<BR>
<BR>
<BR>
<U>/s/ Goldman, Sachs &#038; Co.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
(Goldman, Sachs &#038; Co.)


<P align="center" style="font-size: 10pt">S-2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">SCHEDULE A



<P align="center" style="font-size: 10pt">SCHEDULED SUBSIDIARIES



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Androscoggin Energy, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Administrative Services Company, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine International Holdings, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Finance Company</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Fuels Corporation</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Energy Services Holdings, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Northbrook Corporation of Maine, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Operating Management Company, Inc.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine Power Company</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Quintana Canada Holdings LLC</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">SCHEDULE B



<P align="center" style="font-size: 10pt">CAPITAL STOCK MATTERS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.&nbsp;Encumbrances, Liens and Defects.



<P align="left" style="margin-left:5%; font-size: 10pt">&#147;Permitted Liens,&#148; as defined in the instruments or agreements governing the
Company&#146;s:



<P align="left" style="margin-left:5%; font-size: 10pt">1. 9.625% First Priority Senior Secured Notes due 2014;<br>
2. Second Priority Senior Secured Term Loan B Notes due 2007;<br>
3. Second Priority Senior Secured Floating Rate Notes due 2007;<br>
4. 8.5% Second Priority Senior Secured Notes due 2010;<br>
5. 9.875% Second Priority Senior Secured Notes due 2011; and<br>
6. 8.75% Second Priority Senior Secured Notes due 2013.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II.&nbsp;Registration Rights.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Stockholder Rights Agreement, dated as of October&nbsp;12, 2000, among the Company and the
parties listed therein, executed pursuant to the Stock and Note Purchase Agreement, dated as of
June&nbsp;23, 2000, among the Company, Michael P. Polsky, the Alan S. Polsky and Gabriel S. Polsky
Trusts, Polsky Energy Corporation and SkyGen Energy Holdings LLC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Registration Rights Agreement, dated November&nbsp;14, 2003, between the Company and Deutsche
Bank Securities, Inc. in connection with the offering of 4.75% Contingent Convertible Notes due
2023.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Share Lending Agreement, dated September&nbsp;30, 2004, between the Company and Deutsche Bank
AG London, acting through Deutsche Bank Securities Inc.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">SCHEDULE C



<P align="center" style="font-size: 10pt">PERSONS SUBJECT TO LOCK-UP AGREEMENT



<P align="center" style="font-size: 10pt">Directors and Principal Executive Officers



<P align="center" style="font-size: 10pt">Richard Barraza<BR>
Bulent A. Berligen<BR>
Lisa Bodensteiner<BR>
Peter Cartwright<BR>
Charles B. Clark<BR>
Ann B. Curtis<BR>
Kenneth Derr<BR>
Jeffrey E. Garten<BR>
Gerald Greenwald<BR>
Robert D. Kelly<BR>
E. James Macias<BR>
Thomas R. Mason<BR>
Eric N. Pryor<BR>
Susan C. Schwab<BR>
George J. Stathakis<BR>
Susan Wang<BR>
John O. Wilson



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">SCHEDULE D



<P align="center" style="font-size: 10pt">MATERIAL AGREEMENTS



<P>
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    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The documents identified by the following numbers on the Company&#146;s Annual Report on Form 10-K
for the year ended December&nbsp;31, 2004 (filed with the Commission on March&nbsp;31, 2005): 4.1.1
through 4.25.38 inclusive; and 10.1 through 10.3.14 inclusive.</TD>
</TR>

</TABLE>


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<P align="center" style="font-size: 10pt">ANNEX 1



<P align="center" style="font-size: 10pt">CALPINE CORPORATION



<P align="center" style="font-size: 10pt">LOCK-UP AGREEMENT



<P align="right" style="font-size: 10pt">June&nbsp;20, 2005



<P align="left" style="font-size: 10pt">Calpine Corporation<BR>
50 West San Fernando Street<BR>
San Jose, California 95113


<P align="left" style="font-size: 10pt">Goldman, Sachs &#038; Co.<BR>
85 Broad St.<BR>
New York, New York 10004


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned understands that Goldman, Sachs &#038; Co. (&#147;<U>Goldman Sachs</U>&#148; or the
&#147;<U>Underwriter</U>&#148;), has entered into an Underwriting Agreement, dated June&nbsp;20, 2005 (the
&#147;<U>Underwriting Agreement</U>&#148;) with Calpine Corporation (the &#147;<U>Company</U>&#148;), providing for
the offering of the Company&#146;s Contingent Convertible Notes due 2015 (the &#147;<U>Securities</U>&#148;),
convertible into cash and shares of the Company&#146;s common stock, par value $0.001 per share (the
&#147;<U>Common Stock</U>&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the agreement by the Underwriter to purchase and resell the Securities,
and of other good and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the undersigned will not, directly or indirectly offer, sell, pledge, contract to
sell, (including any short sale), grant any option to purchase or otherwise dispose of any shares
of Common Stock (including, without limitation, shares of Common Stock which may be deemed to be
beneficially owned by the undersigned on the date hereof in accordance with the rules and
regulations of the Securities and Exchange Commission, shares of Common Stock which may be issued
upon exercise of a stock option or warrant and any other security convertible into or exchangeable
for Common Stock) or enter into any Hedging Transaction (as defined below) relating to the Common
Stock (each of the foregoing referred to as a &#147;<U>Disposition</U>&#148;) for a period from the date of
the Underwriting Agreement until and including the date that is 90&nbsp;days after the date of the
prospectus relating to the Securities (the &#147;<U>Lock-Up Period</U>&#148;). The foregoing restriction is
expressly intended to preclude the undersigned from engaging in any Hedging Transaction or other
transaction which is designed to or reasonably expected to lead to or result in a Disposition
during the Lock-Up Period even if the securities would be disposed of by someone other than the
undersigned. &#147;Hedging Transaction&#148; means any short sale (whether or not against the box) or any
purchase, sale or grant of any right (including, without limitation, any put or call option) with
respect to any security (other than a broad-based market basket or index)


<P align="center" style="font-size: 10pt">&nbsp;
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<P align="left" style="font-size: 10pt">that includes, relates to or derives any significant part of its value from the Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the undersigned may offer, sell, pledge, contract to sell,
(including any short sale), grant any option to purchase or otherwise dispose of or enter into
Hedging Transactions in respect of (a)&nbsp;shares of Common Stock acquired in open market transactions
by the undersigned after the date of the prospectus relating to the Securities, and (b)&nbsp;any or all
of the shares of Common Stock or other Company securities if the transfer is by (i)&nbsp;gift, will or
intestacy, or (ii)&nbsp;distribution to partners, members or shareholders of the undersigned; provided,
however, that in the case of a transfer pursuant to clause (b)&nbsp;above, it shall be a condition to
the transfer that the transferee execute an agreement stating that the transferee is receiving and
holding the securities subject to the provisions of this letter agreement. In addition,
notwithstanding the foregoing, the undersigned may offer, sell, pledge, contract to sell,
(including any short sale), grant any option to purchase or otherwise dispose of any shares of
Common Stock or enter into any Hedging Transaction pursuant to plans under Rule&nbsp;10b5-1 of the
Securities Exchange Act of 1934, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (i)&nbsp;agrees and consents that with respect to any shares of Common Stock for
which the undersigned is the record holder, stop transfer instructions may be entered with the
Company&#146;s transfer agent with respect to such Common Stock on the transfer books and records of the
Company and (ii)&nbsp;with respect to any shares of Common Stock for which the undersigned is the
beneficial holder but not the record holder, hereby instructs the record holder of such securities
to cause the transfer agent for the Company to note stop transfer instructions with respect to such
securities on the transfer books and records of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby agrees that, to the extent that the terms of this letter agreement
conflict with or are in any way inconsistent with any registration rights agreement to which the
undersigned and the Company are a party during the Lock-Up Period, this letter agreement supersedes
such registration rights agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby represents and warrants that the undersigned has full power and
authority to enter into this letter agreement. All authority herein conferred or agreed to be
conferred shall survive the death or incapacity of the undersigned and any obligations of the
undersigned shall be binding upon the heirs, personal representatives, successors and assigns of
the undersigned.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything herein to the contrary, if the closing of the above referenced
offering has not occurred prior to June&nbsp;24, 2005, this agreement shall be of no further force or
effect.

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Signature: <DIV align="right"><DIV style="font-size: 3pt; margin-top: 1pt; width: 80%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Print Name: <DIV align="right"><DIV style="font-size: 3pt; margin-top: 1pt; width: 80%; border-top: 1px solid #000000">&nbsp;</DIV></DIV></TD>
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<DOCUMENT>
<TYPE>EX-4.4
<SEQUENCE>3
<FILENAME>f10195exv4w4.htm
<DESCRIPTION>EXHIBIT 4.4
<TEXT>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt">Exhibit&nbsp;4.4



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 10pt">CALPINE CORPORATION



<P align="center" style="font-size: 10pt">$650,000,000 PRINCIPAL AMOUNT<BR>
7.75% CONTINGENT CONVERTIBLE NOTES DUE 2015



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 10pt">THIRD SUPPLEMENTAL INDENTURE



<P align="center" style="font-size: 10pt">Dated as of June&nbsp;23, 2005



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 10pt">WILMINGTON TRUST COMPANY



<P align="center" style="font-size: 10pt">Trustee



<P align="center" style="font-size: 10pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>



<P align="center" style="font-size: 10pt">&nbsp;
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<P align="center" style="font-size: 10pt"><B>Table of Contents</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE I DEFINITIONS<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 1.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">1</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 1.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE II THE NOTES<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 2.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Form and Dating</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 2.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Registrar, Paying Agent and Conversion Agent</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 2.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Transfer and Exchange</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE III REDEMPTION AND PREPAYMENT<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Mandatory Redemption</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Optional Redemption Upon Conversion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">9</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of Notes at Option of the Holder upon
Change of Control</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.04</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Effect of Change of Control Purchase Notice</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">13</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.05</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deposit of Change of Control Purchase Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">14</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.06</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Notes Purchased in Part</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">14</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.07</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Covenant to Comply With Securities Laws Upon
Purchase of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 3.08</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Repayment to the Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE IV COVENANTS<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 4.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Compliance Certificate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">15</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 4.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">16</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 4.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stay, Extension and Usury Laws</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 4.04</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Corporate Existence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 4.05</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Calculations in Respect of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">17</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE V MERGER AND CONSOLIDATION OF COMPANY<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 5.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Lease of Properties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">18</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE VI DEFAULTS AND REMEDIES<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 6.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Events of Default</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">18</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE VII TRUSTEE<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 7.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Rights of Trustee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 7.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Reports by Trustee to Holders of the Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 7.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Eligibility; Disqualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">19</TD>
</TR>
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</DIV>


<P align="center" style="font-size: 10pt">i
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE VIII DEFEASANCE<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 8.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">No Defeasance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">20</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 9.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">Without Consent of Holders of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">20</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 9.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:30px; text-indent:-15px">With Consent of Holders of Notes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">20</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE X CONVERSION<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conversion Privilege</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">21</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conversion Procedure</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">24</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Taxes on Conversion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.04</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Company to Provide Stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.05</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Adjustment of Conversion Price</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">26</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.06</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Adjustment for Certain Changes of Control</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">29</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.07</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">When No Adjustment Required</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">30</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.08</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">When Adjustment May Be Deferred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">31</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.09</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Successive Adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">31</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.10</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Notice of Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">31</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.11</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Notice of Certain Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">32</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.12</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Effect of
Reclassification, Consolidation, Merger, Share Exchange or Sale on Conversion
Privilege</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">32</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.13</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trustee&#146;s Disclaimer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">33</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.14</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Voluntary Reduction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 10.15</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Conversion Value of Notes Tendered</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">34</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE XI SUBORDINATION<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Agreement to Subordinate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">36</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Default On Senior Debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">36</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Liquidation; Dissolution; Bankruptcy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">37</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.04</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Subrogation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">38</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.05</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trustee To Effectuate Subordination</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">39</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.06</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Notice By The Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">39</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.07</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Rights Of The Trustee; Holders Of Senior Debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">40</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 11.08</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Subordination May Not Be Impaired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">41</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" valign="top" align="center">ARTICLE XII MISCELLANEOUS<BR></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.01</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">No Adverse Interpretation of Other Agreements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">42</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.02</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">42</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.03</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Table of Contents, Headings, etc</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">42</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.04</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Ratification Of Original Indenture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">42</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.05</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Trustee Not Responsible for Recitals</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">42</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.06</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Performance by Trustee</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">43</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Section 12.07</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="margin-left:45px; text-indent:-15px">Governing Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">43</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">ii
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><U>EXHIBITS</U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="89%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;A<BR>
Schedule&nbsp;A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Note<BR>
Table of Additional Shares</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">iii
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIRD
SUPPLEMENTAL INDENTURE (the &#147;Third Supplemental Indenture&#148;) dated as of June&nbsp;23, 2005, between
Calpine Corporation (the &#147;Company&#148;), a Delaware corporation, and Wilmington Trust Company (the
&#147;Trustee&#148;).


<P align="center" style="font-size: 10pt">WITNESSETH:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and the Trustee have entered into an Indenture, dated as of August&nbsp;10,
2000, as supplemented by the First Supplemental Indenture, dated as of September&nbsp;28, 2000 (as so supplemented, the
&#147;Original Indenture&#148; and, as further supplemented by the
Second Supplemental Indenture, dated as of September&nbsp;30, 2004,
and this Third Supplemental Indenture, the &#147;Indenture&#148;)
which provides, among other things, for unsecured debentures, notes or other evidences of
indebtedness to be issued by the Company from time to time in one or more series under the
Indenture;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Original Indenture provides that the Company and the Trustee may enter into an
indenture supplemental to the Original Indenture to establish the form or terms of Securities (as
defined in the Original Indenture) of any series as provided by Sections&nbsp;2.1 and 2.3 of the
Original Indenture;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Board of Directors of the Company has duly adopted resolutions authorizing the
Company to execute and deliver this Third Supplemental Indenture;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, pursuant to the terms of the Original Indenture, the Company desires to enter into
this Third Supplemental Indenture to provide for the establishment of a new Series of its Securities to
be known as its 7.75% Contingent Convertible Notes Due 2015 (the &#147;Notes&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
the Company has requested that the Trustee execute and deliver this
Third Supplemental
Indenture and all things necessary to make (i)&nbsp;this Third Supplemental Indenture a valid instrument in
accordance with its terms, and (ii)&nbsp;the Notes, when executed by the Company and authenticated and
delivered by the Trustee, the valid obligations of the Company;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE, in consideration of the purchase and acceptance of the Notes by the Holders
thereof, and for the purpose of setting forth, as provided in the Indenture, the form and terms of
the Notes, the Company covenants and agrees with the Trustee as follows:


<P align="center" style="font-size: 10pt">ARTICLE I



<P align="center" style="font-size: 10pt">DEFINITIONS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.01 Definitions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Unless the context requires otherwise:


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a term defined in the Original Indenture has the same meaning when used
in this Third Supplemental Indenture unless the definition of such term is amended and
supplemented pursuant to this Third Supplemental Indenture;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a term defined anywhere in this Third Supplemental Indenture has the same
meaning throughout;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the singular includes the plural and vice versa;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a reference to a Section or Article is to a Section or Article of this
Third Supplemental Indenture; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) headings are for convenience of reference only and do not affect
interpretation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the following terms have the meanings given to them in this Section&nbsp;1.01(b):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Applicable Procedures&#148; means, with respect to any transfer or transaction involving a Global
Note or beneficial interests therein, the rules and procedures of the Depositary, for such Global
Note, in each case to the extent applicable to such transaction and as in effect from time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Bid Solicitation Agent&#148; means American Stock Transfer &#038; Trust Company until the Company
selects another bank, trust company or similar fiduciary agent, if any, to serve as Bid
Solicitation Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Capital Stock&#148; means:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a corporation, corporate stock;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a partnership or limited liability company, partnership
interests (whether general or limited) or membership interests; and



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of, the
issuing Person, but excluding from all of the foregoing any debt securities
convertible into Capital Stock, whether or not such debt securities include any
right of participation with Capital Stock.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Change of Control&#148; means the occurrence of any of the following:


<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any Person, including any syndicate or group deemed to be a &#147;person&#148; under
Section&nbsp;13(d)(3) of the Exchange Act, acquires beneficial ownership, directly or
indirectly, through a purchase, merger or other acquisition transaction or series
of transactions, of shares of the Company&#146;s Capital Stock entitling the Person to
exercise 50% or more of the total voting power of all shares of the Company&#146;s
Capital Stock that is entitled to vote generally in elections of directors, other
than an acquisition by the Company, of any of its Subsidiaries or any of its
employee benefit plans; or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company merges or consolidates with or into any other Person, any
merger of another Person into the Company, or the Company conveys, sells, transfers
or leases all or substantially all of its assets to another Person, other than
any transaction:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of the Company&#146;s Capital Stock,



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) pursuant to which the holders of the Company&#146;s Common Stock immediately
prior to the transaction have the entitlement to exercise, directly or indirectly,
50% or more of the total voting power of all shares of Capital Stock entitled to
vote generally in the election of directors of the continuing or surviving
corporation immediately after the transaction, or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) which is effected solely to change the Company&#146;s jurisdiction of
incorporation and results in a reclassification, conversion or exchange of
outstanding shares of the Company&#146;s Common Stock solely into shares of Common Stock
of the surviving entity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Common Stock&#148; means shares of the Company&#146;s Common Stock, $0.001 par value per share, as they
exist on the date of this Third Supplemental Indenture or any other shares of Capital Stock of the
Company into which the Common Stock shall be reclassified or changed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Common Stock Price&#148; on any date means the closing sale price per share (or if no closing sale
price is reported, the average of the bid and ask prices or, if more than one in either case, the
average of the average bid and the average ask prices) on such date for the Company&#146;s Common Stock
as reported in composite transactions on the principal United States securities exchange on which
the Company&#146;s Common Stock is traded or, if its Common Stock is not listed on a United States
national or regional securities exchange, as reported by the National Association of Securities
Dealers Automated Quotation System (&#147;NASDAQ&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Conversion Agent&#148; means the Agent of the Company pursuant to Section&nbsp;2.02 hereof.


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Conversion Date&#148; shall have the meaning as specified in Section&nbsp;10.02 hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Conversion Price&#148; means $4.00 per share of Common Stock, subject to the adjustments described
in Section&nbsp;10.05 hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Conversion Rate&#148; means an amount of shares of Common Stock equal to $1,000 principal amount
of Notes divided by the Conversion Price, which shall be 250.0000 per $1,000 principal amount of
Notes as of the date of this Third Supplemental Indenture, subject to the adjustments described in
Section&nbsp;10.05 hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fair Market Value&#148; means the value that would be paid by a willing buyer to a willing seller
in a transaction not involving distress or necessity of either party, determined in good faith by
the Board of Directors of the Company, whose determination shall be conclusive evidence of such
determination (unless otherwise provided in this Indenture).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Global Notes&#148; means, individually and collectively, each of the Global Securities,
substantially in the form of Exhibit&nbsp;A hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Market Price&#148; means the average determined by the Company of the Common Stock Price of the
shares for the five Trading Day period immediately preceding and including the third Trading Day
prior to the applicable date fixed for the determination of stockholders entitled to receive any
distribution described in Section&nbsp;10.05, appropriately adjusted to take into account the
occurrence, during the period commencing on the first of the Trading Days during such five Trading
Day period and ending on such determination date, of any event described in Section&nbsp;10.05; subject,
however, to the conditions set forth in Section&nbsp;10.07 and Section&nbsp;10.08 hereof. If the shares of
Common Stock are not listed on The New York Stock Exchange, then the Market Price shall be
determined by the Company by reference to the Common Stock Price as reported by NASDAQ. In the
absence of such quotations, the Company shall be entitled to determine in good faith the Market
Price by reference to the Common Stock Price on any date on the basis of such quotations as it
considers appropriate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Obligations&#148; means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness (including the Notes).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Permitted Investments&#148; means the following investments:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any direct obligations of, or obligations fully and unconditionally guaranteed by, the
United States of America, or any agency or instrumentality of the United States of America, the
obligations of which are fully and unconditionally backed by the full faith and credit of the
United States of America;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;demand and time deposits in, certificates of deposit of, bankers&#146; acceptances issued by,
or federal funds sold by any depository institution or trust company incorporated under the laws of
the United States of America or any state thereof


<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">and subject to supervision and examination by federal and/or state authorities, or
incorporated under the laws of any other jurisdiction, so long as at the time of such investment or
contractual commitment providing for such investment the unsecured commercial paper or other
unsecured short-term debt obligations of such depository institution or trust company have credit
ratings of at least P-1 (or its equivalent) or higher from Moody&#146;s and A-1 (or its equivalent) or
higher from S&#038;P;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;repurchase obligations with respect to any security described in clauses (i)&nbsp;or (ii)
above, in each case entered into with either (A)&nbsp;a depository institution or trust company (acting
as principal) which in respect of its short-term unsecured debt has credit ratings of at least P-1
(or its equivalent) or higher from Moody&#146;s and A-1 (or its equivalent) or higher from S&#038;P or (B)&nbsp;a
money market fund maintained by a broker which, in respect of its short-term unsecured debt, has
credit ratings of at least P-1 (or its equivalent) or higher from Moody&#146;s and A-1 (or its
equivalent) or higher from S&#038;P;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;unsecured debt securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States of America or any state thereof which
have, at the time of such investment, credit ratings of at least P-1 (or its equivalent) or higher
from Moody&#146;s and A-1 (or its equivalent) or higher from S&#038;P;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;unsecured commercial paper which has, at the time of such investment, credit ratings of at
least P-1 (or its equivalent) or higher from Moody&#146;s and A-1 (or its equivalent) or higher from
S&#038;P; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;investments in money market funds or money market mutual funds which have, at the time of
such investment, credit ratings of at least P-1 (or its equivalent) or higher from Moody&#146;s and A-1
(or its equivalent) or higher from S&#038;P (including such funds for which the Trustee or any of its
Affiliates is investment manager or advisor and for which the Trustee or any of its Affiliates may
receive a fee).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Prospectus Supplement&#148; means that Prospectus Supplement dated June&nbsp;20, 2005 relating to the
offering of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;S&#038;P&#148; means Standard &#038; Poor&#146;s Ratings Group (or, if such entity ceases to rate the Notes for
reasons outside of the control of the Company, the equivalent investment grade credit rating from
any other &#147;nationally recognized statistical rating organization&#148; (or successor concept) within the
meaning of Rule&nbsp;15c3-1(c)(2)(vi)(F) under the Exchange Act (or successor provision) selected by the
Company as a replacement agency).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Senior Debt&#148; means (A)&nbsp;all of the existing and future secured Indebtedness of the Company;
(B)&nbsp;all of the following series of the Company&#146;s outstanding senior unsecured Indebtedness:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s 10 1/2% Senior Notes due 2006,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s 8 3/4% Senior Notes due 2007,</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s 7 7/8% Senior Notes due 2008,</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s 7 5/8% Senior Notes due 2006, and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Company&#146;s 7 3/4% Senior Notes due 2009; and</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;any deferrals, renewals or extensions of any of the foregoing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Subsidiary&#148; means, as applied to any Person, any corporation, limited or general partnership,
trust, association or other business entity of which an aggregate of at least 50% of the
outstanding Voting Stock, or an equivalent controlling interest therein, of such Person is, at the
time, directly or indirectly, owned by such Person and/or one or more Subsidiaries of such Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Trading Day&#148; means any regular or abbreviated trading day of The New York Stock Exchange.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Trading Price&#148; of the Notes on any date of determination means the average of the secondary
market bid quotations per $1,000 principal amount of Notes obtained by the Bid Solicitation Agent
for $5,000,000 principal amount of the Notes at approximately 3:30 p.m., New York City time, on
such determination date from three independent nationally recognized securities dealers the Company
selects, which may include the Underwriter; provided that if at least three such bids cannot
reasonably be obtained by the Bid Solicitation Agent, but two such bids are obtained, then the
average of the two bids shall be used, and if only one such bid can reasonably be obtained by the
Bid Solicitation Agent, this one bid shall be used. If the Bid Solicitation Agent cannot reasonably
obtain at least one such bid or, in the Company&#146;s reasonable judgment, the bid quotations are not
indicative of the secondary market value of the Notes, then the Trading Price of the Notes will be
determined in good faith by the Bid Solicitation Agent, taking into account in such determination
such factors as it, in its sole discretion after consultation with the Company, deems appropriate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Underwriter&#148; means Goldman, Sachs &#038; Co.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Underwriting Agreement&#148; means the Underwriting Agreement between the Company and the
Underwriter dated June&nbsp;20, 2005 relating to the issuance and sale of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Voting Stock&#148; of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the board of directors of such Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.02 Other Definitions.


<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Term</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Defined in Section</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Additional Shares&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Change of Control Notice&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Change of Control Notice Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Change of Control Purchase Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Change of Control Purchase Notice&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Change of Control Purchase Price&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.03</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Conversion Value&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Determination Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Effective Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.06</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Ex-Dividend Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Expiration Time&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Five Day Average Closing Stock Price&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Net Shares&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Net Share Amount&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Payment Default&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Pre-Dividend Sale Price&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Principal Return&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Principal Value Conversion&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Purchased Shares&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Quarter&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.01</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Redemption Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Redemption Price&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Reference Date&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.05</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&#147;Stock Price&#148;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.06</TD>
    <TD>&nbsp;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">ARTICLE II



<P align="center" style="font-size: 10pt">THE NOTES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.01 Form and Dating.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes shall be in denominations of $1,000 principal amount and integral multiples thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and provisions contained in the Notes shall
constitute, and are hereby expressly
made, a part of this Third Supplemental Indenture and the Company and the Trustee, by their execution and
delivery of this Third Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with the express
provisions of this Third Supplemental Indenture, the provisions of this Third Supplemental Indenture shall
govern and be controlling.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Notes shall initially be issued in the form of a Global Security attached as Exhibit&nbsp;A
hereto deposited upon issuance with the Trustee as Custodian for


<P align="center" style="font-size: 10pt">7
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">the Depositary and registered in the name of the Depositary or its nominee. Each Global
Security shall represent such of the outstanding Notes as shall be specified therein and each shall
provide that it represents the aggregate principal amount of outstanding Notes from time to time
endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to reflect exchanges, repurchases,
redemptions or conversions. Any endorsement of a Global Security to reflect the amount of any
increase or decrease in the aggregate principal amount of outstanding Notes represented thereby
shall be made by the Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by the Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.02 Registrar, Paying Agent and Conversion Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Section&nbsp;2.4 of the Original Indenture, the Company shall maintain an office or
agency where Securities may be presented for conversion (&#147;Conversion Agent&#148;). The term &#147;Conversion
Agent&#148; includes any additional conversion agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may change any Registrar, Paying Agent or Conversion Agent for the Notes without
notice to any Holder. The Company shall notify the Trustee in writing of the name and address of
any Conversion Agent not a party to this Indenture. If the Company fails to appoint or maintain
another entity as Conversion Agent, the Trustee shall act as such. The Company or any of its
Subsidiaries may act as Conversion Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company initially appoints the Trustee to act as the Registrar, Paying Agent and
Conversion Agent with respect to the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.03 Transfer and Exchange.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Section&nbsp;2.7 of the Original Indenture, beneficial interests in a Global
Security held by any beneficial owner of Notes may be exchanged by the Holder for Notes in
definitive form upon request, but only upon at least 20&nbsp;days&#146; prior written notice given to the
Trustee by or on behalf of the Depositary in accordance with Applicable Procedures.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company nor the Trustee will be liable for any delay by the Holder of any Global
Note or the Depositary in identifying the beneficial owners of Notes and the Company and the
Trustee may conclusively rely on, and will be protected in relying on, instructions from the Holder
of any Global Note or the Depositary for all purposes.


<P align="center" style="font-size: 10pt">8
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<P align="center" style="font-size: 10pt">ARTICLE III



<P align="center" style="font-size: 10pt">REDEMPTION AND PREPAYMENT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.01 Mandatory Redemption.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall not be required to make mandatory redemption or sinking fund payments with
respect to the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.02 Optional Redemption Upon Conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall have the right to redeem, at its option, any Notes tendered for conversion
pursuant to Article&nbsp;10 hereof if, on the date such Notes are tendered for conversion, the Company
determines, in its sole judgment, that its then outstanding Indebtedness would prevent it from
paying the Principal Return or delivering the Net Shares when due upon conversion as required by
Section&nbsp;10.02 hereof; provided that the Company shall not so redeem any Notes pursuant to this
Section&nbsp;3.02 if an Event of Default shall have occurred and be continuing (other than an Event of
Default that would be cured by such redemption). The Company shall notify the Holder of such Notes
of the Company&#146;s election to redeem such Notes pursuant to this Section&nbsp;3.02 no later than the
Determination Date in respect of such Notes tendered for conversion. Upon any such notification of
an optional redemption, the Company shall not be required to pay or deliver, as the case may be,
the Principal Return and Net Shares or any cash in lieu of fractional shares as required by Section
10.02, and payment or delivery of such Principal Return and Net Shares or cash in lieu of
fractional shares shall be governed by this Section&nbsp;3.02.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The redemption price for any Notes so redeemed shall be an amount in cash equal to the
Principal Return and an amount of shares of Common Stock equal to the Net Shares, together with
cash in lieu of any fractional shares (collectively, the &#147;Redemption Price&#148;), in each case in
respect of such Notes tendered for conversion as set forth in Section&nbsp;10.15. The redemption date
for any such redemption by the Company shall be the seventh Business Day following the
Determination Date in respect of such Notes tendered for conversion (the &#147;Redemption Date&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No later than 10:00&nbsp;a.m. (local time in the City of New York) on the Redemption Date in
respect of such Notes, the Company shall deposit with the Conversion Agent money and shares of
Common Stock sufficient to pay the Redemption Price on all Notes to be redeemed on that date. Upon
such deposit of the Redemption Price, interest will cease to accrue on such Notes, such Notes will
cease to be outstanding and all other rights of the Holder of such Notes will terminate. The
Conversion Agent shall promptly return to the Company any money or shares of Common Stock deposited
with the Conversion Agent by the Company in excess of the amounts necessary to pay the Redemption
Price of all Notes to be redeemed on such date.


<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.03 Purchase of Notes at Option of the Holder upon Change of Control.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If a Change of Control occurs, a Holder of Notes will have the right, at its option, to
require the Company to repurchase all of its Notes, or any portion thereof at a purchase price
equal to the aggregate principal amount of the Notes repurchased plus any accrued and unpaid
interest to, but excluding, the date of repurchase (the &#147;Change of Control Purchase Price&#148;). The
Company shall repurchase all such Notes on the date that is 45&nbsp;days after the date of the Change of
Control Notice (as defined below) delivered by the Company (the &#147;Change of Control Purchase Date&#148;),
subject to satisfaction by or on behalf of the Holder of the requirements set forth in Section
3.03(c).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing provisions of this Section&nbsp;3.03, no Holder shall have the right
to require the Company to purchase its Notes upon a Change of Control if:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Common Stock Price on The New York Stock Exchange for any five
Trading Days within the period of 10 consecutive Trading Days ending immediately
after the later of the Change of Control or the public announcement of such event,
in the case of a Change of Control relating to an acquisition of Capital Stock, or
the period of 10 consecutive Trading Days ending immediately before such event, in
the case of Change of Control relating to a merger, consolidation or asset sale,
equals or exceeds 105% of the Conversion Price of the Notes in effect on each of
those Trading Days; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all of the consideration (excluding cash payments for fractional shares
and cash payments made pursuant to dissenters&#146; appraisal rights) in a merger or
consolidation otherwise constituting a Change of Control above consists of shares
of common stock traded on a national securities exchange or quoted on the Nasdaq
National Market (or will be so traded or quoted immediately following the merger
or consolidation) and as a result of the merger or consolidation the Notes become
convertible into such common stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Section&nbsp;3.03,


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;whether a person is a &#147;beneficial owner&#148; shall be determined in accordance with Rule&nbsp;13d-3
under the Exchange Act; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)&nbsp;&#147;person&#148; includes any syndicate or group that would be deemed to be a &#147;person&#148; under
Section&nbsp;13(d)(3) of the Exchange Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the shares of Common Stock are not listed on The New York Stock Exchange at the relevant
time, closing prices and Trading Days shall be calculated as reported by the NASDAQ.


<P align="center" style="font-size: 10pt">10
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At least three Business Days before the Change of Control Notice Date (as defined below), the
Company shall deliver an Officer&#146;s Certificate to the Trustee specifying:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the information required by Section&nbsp;3.03(b); and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) whether the Company desires the Trustee to give the Change of Control
Notice required by Section&nbsp;3.03(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No later than 30&nbsp;days after the occurrence of a Change of Control, the Company shall mail
a written notice of the Change of Control (the &#147;Change of Control Notice&#148; and the date of such
mailing, the &#147;Change of Control Notice Date&#148;) by first-class mail to the Trustee and to each Holder
(and to beneficial owners to the extent required by applicable law). The notice shall include a
form of Change of Control Purchase Notice to be completed by the Holder that wishes to exercise
rights under this Section&nbsp;3.03 and shall state:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) briefly, the events causing a Change of Control and the date of such
Change of Control;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the date by which the Change of Control Purchase Notice pursuant to this
Section&nbsp;3.03 must be given, if a Holder has the right to require the Company to
repurchase Notes pursuant to Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Change of Control Purchase Date, if a Holder has the right to require
the Company to repurchase Notes pursuant to Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Change of Control Purchase Price, if a Holder has the right to
require the Company to repurchase Notes pursuant to Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the name and address of the Paying Agent and the Conversion Agent, if a
Holder has the right to require the Company to repurchase Notes pursuant to
Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the Conversion Rate and any adjustments thereto;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) that Notes must be surrendered to the Paying Agent, at any time on or
prior to the 30th day after the Company delivers its Change of Control Notice, to
collect payment, if a Holder has the right to require the Company to repurchase
Notes pursuant to Section&nbsp;3.03(a);


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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) that the Change of Control Purchase Price for any Note as to which a
Change of Control Purchase Notice has been duly given will be paid promptly
following the Change of Control Purchase Date as described in (7), if a Holder has
the right to require the Company to repurchase Notes pursuant to Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) briefly, the procedures the Holder must follow to exercise rights under
this Section&nbsp;3.03, if a Holder has the right to require the Company to repurchase
Notes pursuant to Section&nbsp;3.03(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) briefly, the conversion rights, if any, of the Notes;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) that, unless the Company defaults in making payment of such Change of
Control Purchase Price, interest on Notes surrendered for purchase by the Company
will cease to accrue on and after the Change of Control Purchase Date, if a Holder
has the right to require the Company to repurchase Notes pursuant to Section
3.03(a); and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) the CUSIP numbers of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simultaneously with the delivery of the Change of Control Notice to Holders, the Company
shall, or, if the Company has requested that Trustee deliver the Change of Control Notice to
Holders pursuant to Section&nbsp;3.03(a), shall cause the Trustee to, at the Company&#146;s expense and in
the Company&#146;s name, disseminate a press release through any of Dow Jones &#038; Company, Inc., Business
Wire, Bloomberg Business News or Reuters (or if such organizations are not in existence at the time
of issuance of such press release, such other news or press organization as is reasonably
calculated to broadly disseminate the relevant information to the public) containing this
information, and the Company shall publish the information on the Company&#146;s Web site on the World
Wide Web or through such other public medium as the Company may use at that time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A Holder may exercise its rights specified in Section&nbsp;3.03(a) upon delivery of an
irrevocable written notice of purchase (a &#147;Change of Control Purchase Notice&#148;) to the Paying Agent
at any time on or prior to the 30th day after the Company delivers its Change of Control Notice,
stating:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the certificate number of the Note which the Holder will deliver to be
purchased;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the portion of the principal amount of the Note which the Holder will
deliver to be purchased, which portion must be $1,000 principal amount or an
integral multiple thereof; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that such Note shall be purchased pursuant to the terms and conditions
specified in this Section&nbsp;3.03.


<P align="center" style="font-size: 10pt">12
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The delivery of such Note to the Paying Agent with the Change of Control Purchase Notice
(together with all necessary endorsements), at any time on or prior to the 30th day after the
Company delivers its Change of Control Notice, at the offices of the Paying Agent shall be a
condition to the receipt by the Holder of the Change of Control Purchase Price therefor; provided,
however, that such Change of Control Purchase Price shall be so paid pursuant to this Section&nbsp;3.03
only if the Note so delivered to the Paying Agent shall conform in all respects to the description
thereof set forth in the related Change of Control Purchase Notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall purchase from the Holder thereof, pursuant to this Section&nbsp;3.03, a portion
of a Note if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Note also apply to the purchase
of such portion of such Note. Any purchase by the Company contemplated pursuant to the provisions
of this Section&nbsp;3.03 shall be consummated by the delivery of the consideration to be received by
the Holder on the Change of Control Purchase Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Company shall deposit cash at the time and in the manner as provided in Section&nbsp;3.05,
sufficient to pay the aggregate Change of Control Purchase Price of all Notes to be purchased
pursuant to this Section&nbsp;3.03.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.04 Effect of Change of Control Purchase Notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon receipt by the Paying Agent of the Change of Control Purchase Notice and the Note
specified in Section&nbsp;3.03(c), the Holder of the Note in respect of which such Change of Control
Purchase Notice was given shall thereafter be entitled to receive solely the Change of Control
Purchase Price with respect to such Note. Such Change of Control Purchase Price shall be paid to
such Holder, subject to receipts of funds by the Paying Agent, promptly following the Change of
Control Purchase Date with respect to such Note (provided the conditions in Section&nbsp;3.03(c) have
been satisfied). If the Paying Agent holds money sufficient to pay the Change of Control Purchase
Price of the Notes on the Business Day following the Change of Control Purchase Date, then:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Notes will cease to be outstanding;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) interest will cease to accrue; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) all other rights of the Holder of the Notes will terminate.

<P align="left" style="font-size: 10pt">This will be the case whether or not book-entry transfer of the Notes is made or whether or not the
Notes are delivered to the Paying Agent.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes in respect of which a Change of Control Purchase Notice has been given by the Holder
thereof may not be converted pursuant to the provisions hereof on or after the date of the delivery
of such Change of Control Purchase Notice unless, such


<P align="center" style="font-size: 10pt">13
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">Change of Control Purchase Notice has first been validly withdrawn as specified in the
following paragraph.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Change of Control Purchase Notice may be withdrawn by means of a written notice of
withdrawal delivered to the office of the Paying Agent in accordance with the Change of Control
Purchase Notice at any time prior to the close of business on the last Business Day prior to the
Change of Control Purchase Date, specifying:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the certificate number, if any, of the Note in respect of which such
notice of withdrawal is being submitted;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the principal amount of the Note with respect to which such notice of
withdrawal is being submitted; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the principal amount, if any, of such Note which remains subject to the
original Purchase Notice, and which has been or will be delivered for purchase by
the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There shall be no purchase of any Notes pursuant to Section&nbsp;3.03 if there has occurred (prior
to, on or after the giving, by the Holders of such Notes, of the required Change of Control
Purchase Notice) and is continuing an Event of Default (other than a default in the payment of the
Change of Control Purchase Price with respect to such Notes). The Paying Agent will promptly return
to the respective Holders thereof any Notes (x)&nbsp;with respect to which a Change of Control Purchase
Notice has been withdrawn in compliance with this Indenture, or (y)&nbsp;held by it during the
continuation of an Event of Default (other than a default in the payment of the Change of Control
Purchase Price with respect to such Notes) in which case, upon such return, the Change of Control
Purchase Notice with respect thereto shall be deemed to have been withdrawn.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.05 Deposit of Change of Control Purchase Price.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to 10:00&nbsp;a.m. (local time in the City of New York) on the Change of Control Purchase
Date, the Company shall deposit with the Trustee or with the Paying Agent (or, if the Company or a
Subsidiary or an Affiliate of either of them is acting as the Paying Agent, shall segregate and
hold in trust as provided in the Indenture) an amount of cash (in immediately available funds if
deposited on such Business Day) sufficient to pay the aggregate Change of Control Purchase Price of
all the Notes or portions thereof which are to be purchased as of the Change of Control Purchase
Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.06 Notes Purchased in Part.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any certificated Note which is to be purchased only in part shall be surrendered at the office
of the Paying Agent (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to


<P align="center" style="font-size: 10pt">14
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<P align="left" style="font-size: 10pt">the Company and the Trustee duly executed by, the Holder thereof or such Holder&#146;s attorney
duly authorized in writing) and the Company shall execute and the Trustee shall, upon receipt of a
written order of the Company signed by two Officers, authenticate and deliver to the Holder of such
Note, without service charge, a new Note or Notes, of any authorized denomination as requested by
such Holder in aggregate principal amount equal to, and in exchange for, the portion of the
principal amount of the Note so surrendered which is not purchased.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.07 Covenant to Comply With Securities Laws Upon Purchase of Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When making any offers to purchase pursuant to the provisions of Section&nbsp;3.03 hereof (if such
offer or purchase constitutes an &#147;issuer tender offer&#148; for purposes of Rule&nbsp;13e-4 (which term, as
used herein, includes any successor provision thereto) under the Exchange Act at the time of such
offer or purchase), the Company shall (i)&nbsp;comply with Rule&nbsp;13e-4 and Rule&nbsp;14e-1 (or any successor
provision) under the Exchange Act, (ii)&nbsp;file the related Schedule&nbsp;TO (or any successor schedule,
form or report) under the Exchange Act, and (iii)&nbsp;otherwise comply with all Federal and state
securities laws so as to permit the rights and obligations under Section&nbsp;3.03 to be exercised in
the time and in the manner specified in Section&nbsp;3.03.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.08 Repayment to the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee and the Paying Agent shall return to the Company any cash that remains unclaimed,
together with interest, if any, thereon held by them for the payment of the Change of Control
Purchase Price; provided, however, that to the extent that the aggregate amount of cash deposited
by the Company pursuant to Section&nbsp;3.05 exceeds the aggregate Change of Control Purchase Price of
the Notes or portions thereof which the Company is obligated to purchase as of the Change of
Control Purchase Date, then, unless otherwise agreed in writing with the Company, promptly after
the Business Day following the Change of Control Purchase Date, the Trustee shall return any such
excess to the Company together with interest, if any, thereon. Prior to such return, any such
excess funds held by the Paying Agent shall be invested in cash or Permitted Investments as may be
directed by the Company from time to time.


<P align="center" style="font-size: 10pt">ARTICLE IV



<P align="center" style="font-size: 10pt">COVENANTS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.01 Compliance Certificate.


<P align="center" style="font-size: 10pt">15
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following shall apply in lieu of Section&nbsp;3.5 of the Original Indenture with respect to the
Notes:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Company shall deliver to the Trustee, within 90&nbsp;days after the end of each fiscal
year, an Officer&#146;s Certificate prescribed by the TIA stating that a review of the activities of the
Company and its Subsidiaries during the preceding fiscal year has been made under the supervision
of the signing Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further stating, as to each such
Officer signing such certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default has occurred, describing all such Defaults or
Events of Default of which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her knowledge no event has
occurred and remains in existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a description of the
event and what action the Company is taking or proposes to take with respect thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;So long as not contrary to the then current recommendations of the American Institute of
Certified Public Accountants, the year-end financial statements delivered pursuant to Section&nbsp;3.6
of the Original Indenture shall be accompanied by a written statement of the Company&#146;s independent
public accountants (who shall be a firm of established national reputation) that in making the
examination necessary for certification of such financial statements, nothing has come to their
attention that would lead them to believe that the Company has violated any provisions of Article&nbsp;4
hereof or Article&nbsp;III or IV of the Original Indenture, if any such violation has occurred,
specifying the nature and period of existence thereof, it being understood that such accountants
shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any
such violation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;So long as any of the Notes are outstanding, the Company shall deliver to the Trustee,
forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer&#146;s
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.02 Taxes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency,
all stamp taxes and other duties, if any, which may be imposed by the United States or any
political subdivision thereof or taxing authority thereof or therein with respect to the issuance
of the Notes. The Company shall not be required to make any payment with respect to any other tax,
assessment or governmental charge imposed by any government or any political subdivision thereof or
taxing authority thereof or therein.


<P align="center" style="font-size: 10pt">16
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.03 Stay, Extension and Usury Laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company covenants (to the extent that it may lawfully do so) that it shall not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants
that it shall not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.04 Corporate Existence.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to Article&nbsp;IV of the Original Indenture and Article&nbsp;5 hereof, the Company shall do or
cause to be done all things necessary to preserve and keep in full force and effect:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) its corporate existence, and the corporate, partnership or other
existence of each of its Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Subsidiary; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the rights (charter and statutory), licenses and franchises of the
Company and its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and its Subsidiaries, taken as a whole,
and that the loss thereof is not adverse in any material respect to the Holders of
the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.05 Calculations in Respect of Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall provide a schedule of all calculations called for under the Notes and this
Indenture to the Trustee and the Conversion Agent, and each of the Trustee and Conversion Agent is
entitled to rely upon the accuracy of the Company&#146;s calculations without independent verification.
The Trustee and/or the Conversion Agent shall forward the Company&#146;s calculations to any Holder of
Notes upon request of that Holder.



<P align="center" style="font-size: 10pt">17
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt">ARTICLE V



<P align="center" style="font-size: 10pt">MERGER AND CONSOLIDATION OF COMPANY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.01 Lease of Properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything in the Original Indenture to the contrary, the Company shall not,
directly or indirectly, lease all or substantially all of its properties or assets, in one or more
related transactions, to any other Person.


<P align="center" style="font-size: 10pt">ARTICLE VI



<P align="center" style="font-size: 10pt">DEFAULTS AND REMEDIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.01 Events of Default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the Events of Default set forth in the Original Indenture, each of the
following shall constitute an Event of Default with respect to the Notes:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) default in payment of accrued interest at maturity, when the same becomes
due and payable;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) default in payment of the Change of Control Purchase Price or Redemption
Price when the same becomes due and payable;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) default in the payment of the Principal Return (and cash in lieu of
fraction shares) or failure to deliver the Net Shares, in each case when due,
unless the Notes in respect of which such Principal Return (and cash in lieu of
fractional shares) and Net Shares were due have been called for redemption in
accordance with Section&nbsp;3.02 hereof;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) default by the Company in the payment of the principal of any bond,
debenture, note or other evidence of the Company&#146;s Indebtedness, in each case for
money borrowed, or in the payment of principal under any mortgage, indenture,
agreement or instrument under which there may be issued or by which there may be
secured or evidenced any Indebtedness of the Company for money borrowed, which
default for payment of principal is individually or in an aggregate principal
amount exceeding $50,000,000 (or its equivalent in any other currency or
currencies) when such indebtedness becomes due and payable (whether at maturity,
upon redemption or acceleration or otherwise), if such default shall continue
unremedied or unwaived for


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<P align="left" style="margin-left:3%; font-size: 10pt">more than 30&nbsp;days after the expiration of any grace period or extension of
the time for payment applicable thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall deliver to the Trustee, within 30&nbsp;days after the occurrence thereof, written
notice of any event which with the giving of notice or the lapse of time or both would become an
Event of Default under clause (c)&nbsp;of Section&nbsp;5.1 of the Original Indenture or clause (4)&nbsp;of this
Section&nbsp;6.01. However, notwithstanding Section&nbsp;5.1 of the Original Indenture, the Company need not
deliver such written notice within 30&nbsp;days after the occurrence thereof of any event which with the
giving of notice or the lapse of time or both would become an Event of Default under clauses (e)&nbsp;or
(f)&nbsp;of Section&nbsp;5.1 of the Original Indenture.


<P align="center" style="font-size: 10pt">ARTICLE VII



<P align="center" style="font-size: 10pt">TRUSTEE



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.01 Rights of Trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company shall be sufficient if signed by an Officer of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In no event shall the Trustee be required to take notice of any default or breach hereof
or any Event of Default hereunder, except for Events of Default specified in Section&nbsp;6.01 hereof
and/or Section&nbsp;5.1(a) and/or 5.1(b) of the Original Indenture, unless and until the Trustee shall
have received from a Holder of a Note or from the Company express written notice of the
circumstances constituting the breach, default or Event of Default and stating that said
circumstances constitute an Event of Default hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.02 Reports by Trustee to Holders of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Trustee shall transmit by mail all reports as required by TIA Section&nbsp;313(c).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.03 Eligibility; Disqualification.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Section&nbsp;6.10 of the Original Indenture, the Notes shall at all times have a
Trustee that is a corporation organized and doing business under the laws of the United States of
America or of any state thereof that is authorized under such laws to exercise corporate trustee
power, that is subject to supervision or examination by


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<P align="left" style="font-size: 10pt">federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to Section&nbsp;6.10 of the Original Indenture, the Notes shall at all times have a
Trustee who satisfies the requirements of TIA Section&nbsp;310(a)(1), (2)&nbsp;and (5).


<P align="center" style="font-size: 10pt">ARTICLE VIII



<P align="center" style="font-size: 10pt">DEFEASANCE



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.01 No Defeasance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sections&nbsp;7.2, 7.3 and 7.4 of the Original Indenture shall not apply to the Notes.


<P align="center" style="font-size: 10pt">ARTICLE IX



<P align="center" style="font-size: 10pt">AMENDMENT, SUPPLEMENT AND WAIVER



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.01 Without Consent of Holders of Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the purposes set forth in Section&nbsp;8.1 of the Original Indenture, the Company
and the Trustee may amend this Indenture or the Notes or enter into an indenture or indentures
supplement hereto (which shall conform to the provisions of the Trust Indenture Act as then in
effect) without notice to or the consent of any Holder of a Note:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to provide for uncertificated Notes in place of certificated Notes or to
provide for bearer Notes; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to conform the text of the Indenture or the Notes to any provisions of
the Description of the Notes section of the Prospectus Supplement to the extent
that such provision of the Description of the Notes section of the Prospectus
Supplement was intended to be a verbatim recitation of a provision of the
Indenture or the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.02 With Consent of Holders of Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to clauses (a)&nbsp;through (f)&nbsp;of Section&nbsp;8.2 of the Original Indenture, without the
consent of each Holder affected, an amendment or supplement under Section&nbsp;8.2 of the Original
Indenture may not:


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) make any change in any conversion right to the detriment of a Holder; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) make a change in the percentage of principal amount of the Notes
necessary to waive compliance with any provision of the Indenture or to make any
change in Section&nbsp;8.2 of the Original Indenture, as supplemented by this
provision, for modification.


<P align="center" style="font-size: 10pt">ARTICLE X



<P align="center" style="font-size: 10pt">CONVERSION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.01 Conversion Privilege.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the provisions of this Article&nbsp;10, a Holder of a Note may convert such Note
into cash and Common Stock equal to the Conversion Value in accordance with Section&nbsp;10.15, if any
of the following conditions are satisfied and only during the periods set forth in this Section
10.01:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) during any calendar quarter (the &#147;Quarter&#148;) commencing after the date of
issuance of the Notes, if the Common Stock Price for at least 20 Trading Days in
the period of 30 consecutive Trading Days ending on the last Trading Day of the
Quarter immediately preceding the Quarter in which the conversion occurs
(appropriately adjusted to take into account the occurrence, during such 30
consecutive Trading Day period, of any event requiring adjustment of the
Conversion Price under this Indenture) is more than 120% of the Conversion Price
on such 30th Trading Day;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at any time following May&nbsp;31, 2014;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) (A)&nbsp;during the five Trading Day period immediately after a period of five
consecutive Trading Days in which the Trading Price of $1,000 principal amount of
Notes for each such Trading Day in such period was less than 95% of the product of
(x)&nbsp;the Common Stock Price on such Trading Day multiplied by (y)&nbsp;the Conversion
Rate on such Trading Day.



<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Notwithstanding the foregoing, if on the date of any
conversion pursuant to Section&nbsp;10.01(a)(3)(A), the Common Stock
Price on such date is greater than the Conversion Price on such
date but less than 120% of the Conversion Price on such date, then
the Conversion Value a Holder of Notes will be entitled to receive
will be equal to the principal amount of the Notes held by such
Holder as of the Conversion Date plus accrued


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<P align="left" style="margin-left:5%; font-size: 10pt">and unpaid interest to the Conversion Date (such a
conversion, a &#147;Principal Value Conversion&#148;) and the number of Net
Shares (and any cash in lieu of fractional shares) to be delivered
upon a Principal Value Conversion will be determined in accordance
with Section&nbsp;10.15; and provided further that, in place of the
Five Day Average Closing Stock Price, such number of Net Shares
will be calculated using an amount equal to the greater of (i)&nbsp;the
Conversion Price on the Conversion Date and (ii)&nbsp;the Common Stock
Price on the Conversion Date;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) during the periods set forth in Section&nbsp;10.01(c) upon (i)&nbsp;a distribution
to all or substantially all holders of Common Stock of rights, warrants or options
entitling them to subscribe for or purchase, for a period expiring within 60&nbsp;days
of the date of such distribution, shares of Common Stock at a price less than the
Common Stock Price on the Trading Day immediately preceding the date of
declaration of such distribution or (ii)&nbsp;a distribution to all or substantially
all holders of Common Stock evidences of Company indebtedness, rights or warrants
to purchase or subscribe for Capital Stock or other securities of the Company, or
assets, which distribution has a per share value that exceeds 12.5% of the Common
Stock Price on the Trading Day immediately preceding the declaration date of such
distribution; provided that, the Holder shall have no right to convert any Note
pursuant to Section&nbsp;10.01(c) hereof if the Holder of a Note otherwise participates
in the issuance or distribution described in this Section&nbsp;10.01(a)(4) without
conversion of such Holder&#146;s Notes; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) (A)&nbsp;during the period set forth in clause (B)&nbsp;below, if the Company is
party to a consolidation, merger, share exchange, sale of all or substantially all
of its assets or other similar transaction pursuant to which the Common Stock is
subject to conversion into shares of stock (other than Common Stock), other
securities or property (including cash) subject to Section&nbsp;10.12; provided that if
such conversion occurs after the effective date of such transaction, the Holder
will receive on conversion the consideration determined in accordance with Section
10.12.



<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Notes shall be convertible pursuant to clause (A)
above at any time from and after the date that is 15&nbsp;days prior to
the date of the anticipated effective time (as publicly announced
by the Company) of such transaction until and including the date
that is 15&nbsp;days after the actual effective date of such
transaction.


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<P align="left" style="margin-left:5%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If (i)&nbsp;a Holder elects to convert its Notes pursuant to
this Article upon the occurrence of a transaction described clause
(5)(A) above, (ii)&nbsp;such transaction also constitutes a Change of
Control (regardless of whether a Holder has the right to require
the repurchase of Notes pursuant to Section&nbsp;3.03) and (iii)&nbsp;10% or
more of the consideration for the Common Stock (valued as set
forth in Section&nbsp;10.06 hereof) consists of cash, other property or
securities that are not traded or scheduled to be traded or
scheduled to be traded immediately following such transaction on a
United States national securities exchange or the Nasdaq National
Market, then, for purposes of determining the Conversion Value,
the Conversion Price in respect of such Notes shall be decreased
such that the Conversion Rate shall be increased by an additional
number of shares of Common Stock (the &#147;Additional Shares&#148;)
determined as set forth in Section&nbsp;10.06.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the case of any distribution described in Section&nbsp;10.01(a)(3), the Bid Solicitation
Agent shall have no obligation to determine the Trading Price of the Notes unless the Company has
requested such determination in writing, and the Company shall have no obligation to make such
request unless a Holder of the Notes provides the Company with reasonable evidence that the Trading
Price of the Notes on any date would be less than 95% of the product of (x)&nbsp;the Common Stock Price
on such date and (y)&nbsp;the Conversion Rate then in effect. Upon receipt of such reasonable evidence,
the Company shall instruct the Bid Solicitation Agent in writing to determine the Trading Price
beginning on the next Trading Day and on each successive Trading Day until the Trading Price of the
Notes is greater than or equal to 95% of the product of the Common Stock Price and the Conversion
Rate. The Company shall make the calculations described in Section&nbsp;10.01(a)(3) hereof, using the
Trading Price of the Notes provided by the Bid Solicitation Agent and will advise the Trustee (or
Conversion Agent, as the case may be) within a reasonable time (and, in any event, no later than
three Business Days prior to the Conversion Date) of any determination of the Trading Price of the
Notes. In the case of the foregoing Section&nbsp;10.01(a)(4)(i) and Section&nbsp;10.01(a)(4)(ii), the Company
shall cause a notice of such distribution to be filed with the Trustee and the Conversion Agent and
to be mailed to each Holder of Notes no later than 20&nbsp;days prior to the Ex-Dividend Date for such
distribution. Once the Company has given such notice, Holders may surrender their Notes for
conversion by delivering the Notes to the Conversion Agent at any time thereafter until the earlier
of the close of business on the Business Day prior to the Ex-Dividend Date or the Company&#146;s
announcement that such distribution will not take place; provided that, the Holder shall have no
right to convert any Note pursuant to this Section&nbsp;10.01(c) if the Holder of a Note otherwise
participates in the distribution described in either Section&nbsp;10.01(a)(4)(i) or Section
10.01(a)(4)(ii) without conversion of such Holder&#146;s Notes. The &#147;Ex-Dividend Date&#148; for any such
distribution means the date immediately prior to the commencement of
&#147;ex-dividend&#148; trading for such distribution on The New York Stock Exchange or such other national


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<P align="left" style="font-size: 10pt">securities
exchange or The Nasdaq Stock Market or similar system of automated dissemination of quotations of
securities prices on which the Common Stock is then listed or quoted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;A Holder may convert a portion of a Note equal to $1,000 principal amount or any integral
multiple thereof. Provisions of this Indenture that apply to conversion of all of a Note also apply
to conversion of a portion of a Note. A Note in respect of which a Holder has delivered a Change of
Control Purchase Notice pursuant to Section&nbsp;3.03 may not be converted unless such Change of Control
Purchase Notice is withdrawn pursuant to Section&nbsp;3.04.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;A Holder of Notes is not entitled to any rights of a holder of Common Stock until, and
only to the extent that, such Holder has converted its Notes into Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.02 Conversion Procedure.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;To convert a Note, a Holder must satisfy the requirements of this Article&nbsp;10 and (i)
complete and manually sign the irrevocable conversion notice on the back of the Note and deliver
such notice to the Conversion Agent, (ii)&nbsp;if the Notes are in certificated form, deliver the Note
to the Conversion Agent, (iii)&nbsp;furnish appropriate endorsements and transfer documents if required
by the Registrar or the Conversion Agent, (iv)&nbsp;pay any transfer or other tax, if required by
Section&nbsp;10.03 and/or (v)&nbsp;if the Note is held in book-entry form, complete and deliver to the
Depositary appropriate instructions pursuant to the Applicable Procedures. The later of (x)&nbsp;the
date on which the Holder satisfies all of the foregoing requirements and (y)&nbsp;the Determination Date
is the &#147;Conversion Date.&#148; As soon as practicable after the Conversion Date and in any event within
four Business Days thereof, the Company shall deliver to the Holder through the Conversion Agent
(1)&nbsp;cash in the amount calculated in accordance with Section&nbsp;10.15 and (2)&nbsp;either (A)&nbsp;a certificate
for or (B)&nbsp;a book-entry notation of the number of whole shares of Common Stock issuable upon the
conversion and cash in lieu of any fractional shares pursuant to Section&nbsp;10.15.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Person in whose name the Note is registered shall be deemed to be a stockholder of
record on the Conversion Date; provided that no surrender of a Note on any date when the stock
transfer books of the Company shall be closed shall be effective to constitute the Person or
Persons entitled to receive the shares of Common Stock upon such conversion as the record holder or
holders of such shares of Common Stock on such date, but such surrender shall be effective to
constitute the Person or Persons entitled to receive such shares of Common Stock as the record
holder or holders thereof for all purposes at the close of business on the next succeeding day on
which such stock transfer books are open (subject to the provisions of the next paragraph of this
Section&nbsp;10.02); provided that such conversion shall be at the Conversion Price in effect on the
date that such Note shall have been surrendered for conversion, as if the stock


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<P align="left" style="font-size: 10pt">transfer books of the Company had not been closed. Upon conversion of a Note, such Person
shall no longer be a Holder of such Note.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;No payment or adjustment will be made for accrued interest, on a converted Note or for
dividends or distributions on shares of Common Stock issued upon conversion of a Note, but if any
Holder surrenders a Note for conversion between the record date for the payment of an installment
of interest and the next interest payment date, then, notwithstanding such conversion, the
interest, payable on such interest payment date shall be paid to the Holder of such Note on such
interest payment date. In such event, such Note, when surrendered for conversion, must be
accompanied by delivery of a check payable to the Conversion Agent in an amount equal to the
interest, payable on such interest payment date on the portion so converted. If such payment does
not accompany such Note, the Note shall not be converted; provided that no such check shall be
required if such Note is surrendered for conversion on the interest payment date. If the Company
defaults in the payment of interest, payable on the interest payment date, the Conversion Agent
shall repay such funds to the Holder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Upon surrender of a Note that is converted in part, the Company shall execute, and the
Trustee shall, upon receipt of a written order of the Company signed by two Officers, authenticate
and deliver to the Holder, a new Note equal in principal amount to the unconverted portion of the
Note surrendered.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.03 Taxes on Conversion.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If a Holder submits a Note for conversion, the Company shall pay any documentary, stamp or
similar issue or transfer tax due on the issue of shares of Common Stock upon the conversion.
However, the Holder shall pay any such tax which is due because the Holder requests the shares to
be issued in a name other than the Holder&#146;s name. The Conversion Agent may refuse to deliver the
certificates representing the shares of Common Stock being issued in a name other than the Holder&#146;s
name until the Conversion Agent receives a sum sufficient to pay any tax which will be due because
the shares are to be issued in a name other than the Holder&#146;s name. Nothing herein shall preclude
any income tax withholding required by law or regulations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.04 Company to Provide Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has reserved shares of Common Stock to permit delivery of shares of Common Stock
upon conversion of the Notes up to an assumed Five Day Average Closing Stock Price, and from time
to time as may be necessary shall reserve out of its authorized but unissued shares of Common Stock
a sufficient number of additional shares of Common Stock to permit delivery of shares of Common
Stock upon the conversion of the Notes in full.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All shares of Common Stock delivered upon conversion of the Notes shall be newly issued shares
or treasury shares, shall be duly and validly issued and fully paid and nonassessable, shall be
free from preemptive rights and free of any lien or adverse claim, and shall have the same rights
as all of the other outstanding shares of the Company&#146;s Common Stock. The Company will endeavor
promptly to comply with all federal and state securities laws regulating the offer and delivery of
shares of Common Stock upon conversion of Notes, if any, and will list or cause to have quoted such
shares of Common Stock on each national securities exchange or in the over-the-counter market or
such other market on which the shares of Common Stock are then listed or quoted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.05 Adjustment of Conversion Price.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Conversion Price shall be adjusted (without duplication) from time to time by the Company
as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In case the Company shall pay a dividend or make a distribution on the Common Stock
payable exclusively in Common Stock, the Conversion Price in effect at the opening of business on
the day following the date fixed for the determination of stockholders entitled to receive such
dividend or other distribution shall be decreased by dividing such Conversion Price by a fraction
of which the denominator shall be the number of shares of Common Stock outstanding at the close of
business on the date fixed for such determination and the numerator shall be the sum of (i)&nbsp;such
number of shares and (ii)&nbsp;the total number of shares constituting such dividend or other
distribution, such decrease to become effective immediately after the opening of business on the
day following the date fixed for such determination. For the purposes of this paragraph (a), the
number of shares of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company. In the event that such dividend or distribution is not so paid or made,
the Conversion Price shall again be adjusted to be the Conversion Price which would then be in
effect if such dividend or distribution had not occurred.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In case the Company shall pay or make a dividend or other distribution on its Common Stock
consisting exclusively of, or shall otherwise issue to all holders of its Common Stock, rights,
warrants or options, in each case entitling the holders thereof to subscribe for or purchase shares
of Common Stock at a price per share less than the Market Price per share of the Common Stock on
the date fixed for the determination of stockholders entitled to receive such rights, warrants or
options, the Conversion Price in effect at the opening of business on the day following the date
fixed for such determination shall be decreased by dividing such Conversion Price by a fraction of
which the denominator shall be the sum of (i)&nbsp;the number of shares of Common Stock outstanding at
the close of business on the date fixed for such determination plus (ii)&nbsp;the number of shares of
Common Stock which the aggregate of the offering price of the total number of shares of Common
Stock so offered for subscription or purchase would purchase at such Market Price and the numerator
shall be the sum of (i)&nbsp;the number of shares of Common Stock outstanding at the close of business
on the date fixed for such


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<P align="left" style="font-size: 10pt">determination plus (ii)&nbsp;the number of shares of Common Stock so offered for subscription or
purchase, such decrease to become effective immediately after the opening of business on the day
following the date fixed for such determination; provided, however, that no adjustment shall be
made if Holders of the Notes may participate in the transaction on a basis and with notice that the
Company&#146;s Board of Directors deems to be fair and appropriate. To the extent that rights are not so
issued or shares of Common Stock are not so delivered after the expiration of such rights, warrants
or options, the Conversion Price shall be readjusted to the Conversion Price which would then be in
effect if such date fixed for the determination of stockholders entitled to receive such rights,
warrants or options, had not been fixed. For the purposes of this paragraph (b), the number of
shares of Common Stock at any time outstanding shall not include shares held in the treasury of the
Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In case the Company shall declare a cash dividend or distribution to all or substantially
all of the holders of Common Stock, the Conversion Price shall be decreased so that the Conversion
Price shall equal the price determined by multiplying the Conversion Price in effect immediately
prior to the record date for such dividend or distribution by a fraction,



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the numerator of which shall be the average of the Common Stock Prices
for the three consecutive Trading Days ending on the date immediately preceding
the Ex-Dividend Date for such dividend or distribution (the &#147;Pre-Dividend Sale
Price&#148;), minus the full amount of such cash dividend or distribution, to the
extent payable in cash, applicable to one share of Common Stock, and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the denominator of which shall be the Pre-Dividend Sale Price, such
adjustment to become effective immediately after the record date for such dividend
or distribution; provided, that no adjustment to the Conversion Price or the
ability of a Holder of a Note to convert will be made pursuant to this Section
10.05(c) if the Company provides that Holders of Notes will participate in such
cash dividend or distribution on an as-converted basis without conversion;
provided further, that if the numerator of the foregoing fraction is less than
$1.00 (including a negative amount), then in lieu of the foregoing adjustment,
adequate provision shall be made so that each Holder shall have the right to
receive upon conversion, in addition to the Common Stock issuable upon such
conversion (and any cash in lieu of fractional shares), the amount of cash such
Holder would have received had such Holder converted its Note on the record date
for such dividend or distribution at the Conversion Rate and for the Conversion
Value in effect on such record date. If such dividend or distribution is not so
paid or made, the Conversion Price shall be adjusted to the Conversion Price that
would then be in effect if such dividend or distribution had not been declared.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Subject to the last sentence of this paragraph (d), in case the Company shall, by dividend
or otherwise, distribute to all holders of its Common Stock


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<P align="left" style="font-size: 10pt">evidences of its indebtedness, shares of any class or series of Capital Stock, cash or assets
(including securities, but excluding any rights, warrants or options referred to in paragraph (b)
of this Section&nbsp;10.05 and any cash dividend or distribution referred to in paragraph (c)&nbsp;of this
Section&nbsp;10.05), the Conversion Price shall be decreased so that the same shall equal the price
determined by dividing the Conversion Price in effect immediately prior to the effectiveness of the
Conversion Price decrease contemplated by this paragraph (d)&nbsp;by a fraction of which the denominator
shall be the Market Price per share of the Common Stock on the date fixed for the determination of
stockholders entitled to receive such distribution (the &#147;Reference Date&#148;) less the Fair Market
Value, on the Reference Date, of the portion of the evidences of indebtedness, shares of capital
stock, cash and/or assets so distributed applicable to one share of Common Stock and the numerator
shall be such Market Price per share of the Common Stock, such decrease to become effective
immediately prior to the opening of business on the day following the Reference Date; provided that
if the Fair Market Value of the portion of the evidences of indebtedness, shares of capital stock,
cash and/or assets so distributed applicable to one share of Common Stock shall be greater than the
Market Price per share of Common Stock, then in lieu of the foregoing adjustment, adequate
provision shall be made so that each Holder shall have the right to receive upon conversion, in
addition to the Common Stock issuable upon such conversion (and any cash in lieu of fractional
shares), the amount of evidences of indebtedness, shares of capital stock, cash and/or assets so
distributed that such Holder would have received had such Holder converted its Note on the record
date for such dividend or distribution at the Conversion Rate and for the Conversion Value in
effect on such record date; and provided, further, that no adjustment shall be made if all Holders
of Notes are entitled to participate in such transactions. In the event that such dividend or
distribution is not so paid or made, the Conversion Price shall again be adjusted to be the
Conversion Price which would then be in effect if such dividend or distribution had not occurred.
For purposes of this paragraph (d), any dividend or distribution that includes shares of Common
Stock or rights, warrants or options to subscribe for or purchase shares of Common Stock shall be
deemed instead to be (i)&nbsp;a dividend or distribution of the evidences of indebtedness, shares of
Capital Stock, cash and/or assets other than such shares of Common Stock or such rights or warrants
(making any Conversion Price decrease required by this paragraph (d)) immediately followed by (ii)
a dividend or distribution of such shares of Common Stock or such rights, warrants or options
(making any further Conversion Price decrease required by paragraph (a)&nbsp;or (b)&nbsp;of this Section
10.05), except any shares of Common Stock included in such dividend or distribution shall not be
deemed &#147;outstanding at the close of business on the date fixed for such determination&#148; within the
meaning of paragraph (a)&nbsp;of this Section&nbsp;10.05.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In case outstanding shares of Common Stock shall be subdivided into a greater number of
shares of Common Stock, the Conversion Price in effect at the opening of business on the Business
Day following the day upon which such subdivision becomes effective shall be proportionately
decreased and, conversely, in case outstanding shares of Common Stock shall each be combined into a
smaller number of shares of Common Stock, the Conversion Price in effect at the opening of business
on the day following the day upon which such combination becomes effective shall be proportionately
increased, such increase or decrease, as the case may be, to become


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<P align="left" style="font-size: 10pt">effective immediately after the opening of business on the Business Day following the day upon
which such subdivision or combination becomes effective.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;In case the Company pays to holders of Common Stock in respect of a tender or exchange
offer, other than an odd-lot offer, by the Company or any of its Subsidiaries for Common Stock to
the extent that the offer involves aggregate consideration that, together with (1)&nbsp;any cash and the
Fair Market Value of any other consideration payable in respect of any tender offer by the Company
or any of its Subsidiaries for shares of Common Stock consummated within the preceding 12&nbsp;months
not triggering a Conversion Price adjustment and (2)&nbsp;all-cash distributions to all or substantially
all holders of the Company&#146;s Common Stock made within the preceding 12&nbsp;months not triggering a
Conversion Price adjustment, exceeds an amount equal to 12.5% of the market capitalization of
Common Stock on the expiration date of the tender offer, the Conversion Price shall be decreased so
that the same shall equal the price determined by dividing the Conversion Price in effect
immediately prior to the effectiveness of the Conversion Price decrease contemplated by this
Section&nbsp;10.05(f) by a fraction of which the denominator shall be the number of shares of Common
Stock outstanding (including any tendered or exchanged shares) at the last time tenders of
exchanges may be made pursuant to such tender or exchange offer (the &#147;Expiration Time&#148;) multiplied
by the Market Price per share of the Common Stock on the Trading Day next succeeding the Expiration
Time and the numerator shall be the sum of (x)&nbsp;the Fair Market Value (determined as aforesaid) of
the aggregate consideration payable to stockholders based on the acceptance (up to any maximum
specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged
and not withdrawn as of the Expiration Time (the shares deemed so accepted, up to any such maximum,
being referred to as the &#147;Purchased Shares&#148;) and (y)&nbsp;the product of the number of shares of Common
Stock outstanding (less any Purchased Shares) at the Expiration Time and the Market Price per share
of the Common Stock on the Trading Day next succeeding the Expiration Time, such decrease to become
effective immediately prior to the opening of business on the Business Day following the Expiration
Time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In any case in which this Section&nbsp;10.05 shall require that an adjustment be made immediately
following a record date established for purposes of this Section&nbsp;10.05, the Company may elect to
defer (but only until five Business Days following the filing by the Company with the Trustee of
the certificate described in Section&nbsp;10.10) issuing to the holder of any Note converted after such
record date the shares of Common Stock issuable upon such conversion over and above the shares of
Common Stock issuable upon such conversion only on the basis of the Conversion Price prior to
adjustment; and, in lieu of the shares the issuance of which is so deferred, the Company shall
issue or cause its transfer agents to issue due bills or other appropriate evidence of the right to
receive such shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.06 Adjustment for Certain Changes of Control.


<P align="center" style="font-size: 10pt">29
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of Additional Shares in connection with an adjustment of the Conversion Price as
set forth in Section&nbsp;10.01(a)(5)(C) shall be determined by reference to the table attached as
Schedule&nbsp;A hereto, based on the date on which the corporate transaction becomes effective (the
&#147;Effective Date&#148;) and the stock price paid per share of Common Stock (valued as set forth in the
next paragraph) in the corporate transaction (the &#147;Stock Price&#148;); provided that if the Stock Price
is between two Stock Price amounts in the table or the Effective Date is between two Effective
Dates in the table, the number of Additional Shares will be determined by a straight-line
interpolation between the number of Additional Shares set forth for the higher and lower Stock
Price amounts and the two dates, as applicable, based on a 365-day year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stock Price per share of Common Stock shall be valued as follows:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if holders of the Common Stock receive only cash in the corporate
transaction, the Stock Price shall be the cash amount paid per share of the Common
Stock, and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in all other cases, the Stock Price shall be the average of the Common
Stock Price on the five Trading Days prior to but not including the Effective
Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, (i)&nbsp;if the Stock Price is equal to or greater than $20 or less
than $3.10 (subject in each case to adjustment as described below), the number of Additional Shares
shall be zero and (ii)&nbsp;in no event may the total number of shares of Common Stock issuable upon
conversion exceed approximately 322.5806 per $1,000 principal amount of Notes, subject to
adjustments in the same manner as the Conversion Price as set forth in Section&nbsp;10.05. The maximum
amount of Additional Shares payable shall be 72.5806 per $1,000 principal amount of Notes, subject
to adjustments on the same basis.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stock Prices set forth in the first row of the table (i.e., column headers) in Schedule&nbsp;A
hereto and set forth in the proviso at the first sentence of the first paragraph of this Section
will be adjusted as of any date on which the Conversion Price of the Notes is adjusted pursuant to
Section&nbsp;10.05. The adjusted Stock Prices will equal the Stock Prices applicable immediately prior
to such adjustment, multiplied by a fraction, the numerator of which is the Conversion Rate
immediately prior to the adjustment giving rise to the Stock Price adjustment and the denominator
of which is the Conversion Rate as so adjusted. The number of Additional Shares will be adjusted in
the same manner as the Conversion Price as set forth in Section&nbsp;10.05.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.07 When No Adjustment Required.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No adjustment of the Conversion Price shall be made:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;upon the issuance of any shares of Common Stock pursuant to any present or future plan
providing for the reinvestment of dividends or interest


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">payable on securities of the Company and the investment of additional optional amounts in
shares of Common Stock under any plan,


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;upon the issuance of any shares of Common Stock or options or rights to purchase those
shares pursuant to any present or future employee, director or consultant benefit plan or program
of the Company,


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or
exercisable, exchangeable or convertible security outstanding as of the date the Notes were first
issued,


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;upon the issuance of any rights, any distribution of separate certificates representing
the rights, any exercise or redemption of any rights or any termination or invalidation of the
rights, pursuant to the Company&#146;s stockholders rights plan, or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;for a change in the par value or no par value of the shares of Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There shall also be no adjustment of the Conversion Price in case of the issuance of any
Common Stock (or securities convertible into or exchangeable for Common Stock), except as
specifically described above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.08 When Adjustment May Be Deferred.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No adjustment in the Conversion Price need be made unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Price (other than an adjustment described in
Section&nbsp;10.05(f)). Any adjustments that are not made under this Section&nbsp;10.08 shall be carried
forward and taken into account in any subsequent adjustment. All calculations under this Article&nbsp;10
shall be made to the nearest cent, with one-half cent rounded up, or to the nearest 1/1,000th of a
share, with 1/500th of a share being rounded up, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.09 Successive Adjustments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After an adjustment to the Conversion Price under this Article&nbsp;10, any subsequent event
requiring an adjustment under this Article&nbsp;10 shall cause an adjustment to the Conversion Price as
so adjusted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.10 Notice of Adjustment.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever the Conversion Price is adjusted, the Company shall promptly mail to Holders of Notes
a notice of the adjustment and concurrently file with the Trustee and the Conversion Agent such
notice and a certificate from the Company&#146;s independent public accountants briefly stating the
facts requiring the adjustment and the manner of computing such adjustment. The certificate shall
be conclusive evidence that such adjustment is correct. Neither the Trustee nor any Conversion
Agent shall be under any duty or responsibility with respect to any such notice and certificate (or
the receipt of such notice and certificate or with the knowledge of any adjustment absent such
notice and certificate) except to exhibit the same to any Holder desiring inspection thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.11 Notice of Certain Transactions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall mail to Holders of Notes and file with the Trustee and/or the Conversion
Agent a notice stating the proposed record date for a dividend or distribution or the proposed
effective date of a subdivision, combination, reclassification, consolidation, merger, binding
share exchange, transfer, liquidation or dissolution, if any of the following occur:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Company takes any action that would require an adjustment in the Conversion Price
pursuant to Section&nbsp;10.05 (unless no adjustment is to occur pursuant to Section&nbsp;10.06); or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;the Company takes any action that would require a supplemental indenture pursuant to
Section&nbsp;10.12; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;there is a liquidation or dissolution of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall file and mail such notice at least 15&nbsp;days before the applicable date of any
such transaction. Failure to file or mail the notice or any defect in it shall not affect the
validity of the transaction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.12 Effect of Reclassification, Consolidation, Merger, Share Exchange or Sale on
Conversion Privilege.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any of the following shall occur: (i)&nbsp;any reclassification or change of outstanding shares
of Common Stock (other than a change in par value, or from par value to no par value, or from no
par value to par value, or as a result of a subdivision or combination); (ii)&nbsp;any consolidation,
combination, merger or share exchange to which the Company is a party other than a merger in which
the Company is the continuing corporation and which does not result in any reclassification of, or
change (other than a change in name, or par value, or from par value to no par value, or from no
par value to par value, or as a result of a subdivision or combination) in, outstanding shares of
Common Stock; or (iii)&nbsp;any sale or conveyance of all or substantially all of the assets of the
Company; then the Company, or such successor or purchasing corporation, as the


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<P align="left" style="font-size: 10pt">case may be, shall, as a condition precedent to such reclassification, change, consolidation,
merger, share exchange, sale or conveyance, execute and deliver to the Trustee a supplemental
indenture providing that the Holder of each Note then outstanding shall have the right to convert
such Note into the kind and amount of shares of Capital Stock and other securities and property
(including cash) receivable upon such reclassification, change, consolidation, merger, share
exchange, sale or conveyance by a holder of the number of shares of Common Stock deliverable upon
conversion of such Note immediately prior to such reclassification, change, consolidation, merger,
share exchange, sale or conveyance. Such supplemental indenture shall provide for adjustments of
the Conversion Price which shall be as nearly equivalent as may be practicable to the adjustments
of the Conversion Price provided for in this Article&nbsp;10. If, in the case of any such consolidation,
merger, share exchange, sale or conveyance, the stock or other securities and property (including
cash) receivable thereupon by a holder of Common Stock includes shares of Capital Stock or other
securities and property of a corporation other than the successor or purchasing corporation, as the
case may be, in such consolidation, merger, share exchange, sale or conveyance, then such
supplemental indenture shall also be executed by such other corporation and shall contain such
additional provisions to protect the interests of the Holders of the Notes as the Board of
Directors of the Company shall reasonably consider necessary by reason of the foregoing. The
provision of this Section&nbsp;10.12 shall similarly apply to successive consolidations, mergers, share
exchanges, sales or conveyances. Notwithstanding the foregoing, a distribution by the Company to
all or substantially all holders of its Common Stock for which an adjustment to the Conversion
Price or provision for conversion of the Notes may be made pursuant to Section&nbsp;10.05 shall not be
deemed to be a sale or conveyance of all or substantially all of the assets of the Company for
purposes of this Section&nbsp;10.12.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event the Company shall execute a supplemental indenture pursuant to this Section
10.12, the Company shall promptly file with the Trustee an Opinion of Counsel stating that such
supplemental indenture is authorized or permitted by this Indenture and an Officer&#146;s Certificate
briefly stating (a)&nbsp;the reasons therefor, (b)&nbsp;the kind or amount of shares of stock or securities
or property (including cash) receivable by Holders of the Notes upon the conversion of their Notes
after any such reclassification, change, consolidation, merger, share exchange, sale or conveyance,
(c)&nbsp;any adjustment to be made with respect thereto and (d)&nbsp;that all conditions precedent have been
complied with.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.13 Trustee&#146;s Disclaimer.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee has no duty to determine when an adjustment under this Article&nbsp;10 should be made,
how it should be made or what such adjustment should be made, but may accept as conclusive evidence
of the correctness thereof, and shall be protected in relying upon, the Officer&#146;s Certificate with
respect thereto, which the Company is obligated to file with the Trustee pursuant to Section&nbsp;10.10.
The Trustee shall not be accountable for and makes no representation as to the validity or value of
any securities or assets issued upon conversion of Notes, and the Trustee shall not be


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<P align="left" style="font-size: 10pt">responsible for the Company&#146;s failure to comply with any provisions of this Article&nbsp;10. Each
Conversion Agent (other than the Company or an Affiliate of the Company) shall have the same
protection under this Section&nbsp;10.13 as the Trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section&nbsp;10.12, but may
accept as conclusive evidence of the correctness thereof, and shall be protected in relying upon,
the Officer&#146;s Certificate with respect thereto, which the Company is obligated to file with the
Trustee pursuant to Section&nbsp;10.12 of this Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.14 Voluntary Reduction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company from time to time may decrease the Conversion Price by any amount at any time for
at least 20&nbsp;days, so long as the decrease is irrevocable during such 20-day period. Whenever the
Conversion Price is decreased, the Company shall mail to Holders of Notes and file with the Trustee
and the Conversion Agent a notice of the decrease. The Company shall mail the notice at least 15
days before the date the decreased Conversion Price takes effect. The notice shall state the
decreased Conversion Price and the period during which it will be in effect. A voluntary decrease
of the Conversion Price does not change or adjust the Conversion Price otherwise in effect for
purposes of Section&nbsp;10.15.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10.15 Conversion Value of Notes Tendered.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to certain exceptions described in Sections&nbsp;10.01(a)(3) and 10.01(a)(4), Holders
tendering the Notes for conversion shall be entitled to receive, upon conversion of such Notes,
cash and shares of Common Stock, the value of which (the &#147;Conversion Value&#148;) shall be equal to the
product of:



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) (A)&nbsp;the aggregate principal amount of Notes to be converted divided by
1,000 multiplied by (B)&nbsp;the Conversion Rate (including Additional Shares, if any);
and


<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;the average of the Common Stock Price for the five consecutive Trading
Days (appropriately adjusted to take into account the occurrence during such
period of stock splits and similar events) including and immediately following the
second Trading Day following the day the Notes are tendered for conversion (the
&#147;Five Day Average Closing Stock Price&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subject to certain exceptions described below and under Sections&nbsp;10.01(a)(3) and
10.01(a)(4), the Company shall deliver the Conversion Value to converting holders as follows:


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) an amount in cash (the &#147;Principal Return&#148;) equal to the lesser of (a)&nbsp;the
aggregate Conversion Value of the Notes to be converted and (b)&nbsp;the aggregate
principal amount of Notes to be converted as of the date tendered for conversion;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) subject to the exceptions described below, if the aggregate Conversion
Value of the Notes to be converted is greater than the aggregate Principal Return
of the Notes to be converted, an amount in shares (the &#147;Net Shares&#148;), determined
as set forth below, equal to the difference between such aggregate Conversion
Value and such aggregate Principal Return (the &#147;Net Share Amount&#148;); and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
an amount paid in cash, determined as set forth below, for any fractional shares of Common Stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of Net Shares to be paid shall be determined by dividing the Net Share Amount by
the Five Day Average Closing Stock Price. Holders of Notes will not receive a fractional share upon
conversion of a Note. Instead, the Holder will receive cash for the value of the fractional share.
The cash payment for fractional shares shall be based on the Five Day Average Closing Stock Price.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Conversion Value, Principal Return, number of Net Shares and Net Share Amount shall be
determined by the Company at the end of the fifth consecutive Trading Day including and immediately
following the second Trading Day after the day the Notes are tendered for conversion (the
&#147;Determination Date&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Company shall pay the Principal Return and cash for fractional shares and deliver the
Net Shares, if any, as promptly as practicable after the Conversion Date, but in no event later
than four Business Days thereafter, subject to Section&nbsp;3.02. Delivery of the Principal Return, Net
Shares and cash in lieu of fractional shares shall be deemed to satisfy the Company&#146;s obligation to
pay the principal amount of the Notes, as well as accrued interest payable on the Notes, except as
described below. Accrued interest shall be deemed paid in full rather than canceled, extinguished
or forfeited. The Company shall not adjust the Conversion Price to account for the accrued
interest. Except as described in the following sentence, upon conversion of any Notes on a date
that is not an interest payment date, Holders will not be entitled to receive any additional cash
payment representing accrued and unpaid interest for the period from the immediately preceding
interest payment date to the Conversion Date with respect to the converted Notes and such interest
will be deemed paid in full. Nonetheless, if Notes are converted after a regular record date and
prior to the opening of business on the next interest payment date, including the date of maturity,
Holders of such Notes, at the close of business on the next regular record date shall receive the
interest payable on such Notes on the corresponding interest payment date notwithstanding the
conversion. Such Notes, upon surrender for conversion, must be accompanied by funds equal to the
amount of interest payable on that interest payment date on the Notes so converted.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If an Event of Default as set forth in Section&nbsp;5.1(e) or (f)&nbsp;of the Original Indenture has
occurred and is continuing, the Company may not pay cash upon conversion of any Notes (other than
cash in lieu of fractional shares) and instead will make payment only through the delivery of
shares of Common Stock, provided that Holders shall receive an amount in cash in lieu of any
fractional shares. The number of shares of Common Stock to be delivered will be equal to (A)&nbsp;the
aggregate principal amount of Notes to be converted divided by 1,000 multiplied by (B)&nbsp;the
Conversion Rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Neither the Trustee nor the Conversion Agent has any duty to determine or calculate the
Conversion Value, Principal Return, number of Net Shares, the Net Share Amount of any other
computation required under this Article&nbsp;10, all of which shall be determined by the Company (or the
Bid Solicitation Agent, as the case may be) in accordance with the provisions of this Indenture and
the Trustee and Conversion Agent shall not be under any responsibility to determine the correctness
of any such determinations and/or calculations and may conclusively rely on the correctness
thereof.


<P align="center" style="font-size: 10pt">ARTICLE XI



<P align="center" style="font-size: 10pt">SUBORDINATION



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.01 Agreement to Subordinate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company covenants and agrees, and each Holder of Notes by such Holder&#146;s acceptance thereof
likewise covenants and agrees, that all Notes shall be issued subject to the provisions of this
Article&nbsp;11; and each Holder of a Note, whether upon original issue or upon transfer or assignment
thereof, accepts and agrees to be bound by such provisions. The payment by the Company of the
principal of, premium, if any, interest and other Obligations with respect to all Notes issued
hereunder shall, to the extent and in the manner hereinafter set forth, be subordinated and junior
in right of payment to the prior payment in full in cash of principal of (and premium, if any),
interest and all other Obligations with respect to all Senior Debt, whether outstanding at the date
of this Third Supplemental Indenture or thereafter incurred; provided, however, that no provision of this
Article&nbsp;11 shall prevent the occurrence of any Default or Event of Default hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.02 Default On Senior Debt.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event and during the continuation of any default by the Company in the payment of
principal, premium, if any, interest on or any other Obligation relating to, any Senior Debt when
the same becomes due and payable (a &#147;Payment Default&#148;), whether at maturity or at a date fixed for
prepayment or by declaration of acceleration or otherwise, and such Payment Default continues
beyond the period of grace, if any, specified in the instrument evidencing such Senior Debt, then
unless and until such Payment Default shall have been cured or waived or shall have ceased to exist
or all


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<P align="left" style="font-size: 10pt">Senior Debt and all Obligations relating thereto have been paid in full in cash (and in the
event that the maturity of any Senior Debt has been accelerated because of a default, the holders
of all Senior Debt outstanding have been paid in full in cash), then no direct or indirect payment
or distribution (in cash, property, securities, by set-off or otherwise) shall be made or agreed to
be made with respect to the principal of (including redemption payments), premium, if any, or
interest on, or any other Obligations relating to, the Notes or in respect of any redemption,
repayment, retirement, purchase or other acquisition of any of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that, notwithstanding the foregoing, any payment shall be received by the Trustee
when such payment is prohibited by the preceding paragraph of this Section&nbsp;11.02, such payment
shall be held in trust for the benefit of, and shall be paid over or delivered to the holders of
Senior Debt, or their respective representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Senior Debt may have been issued, as their respective interests may
appear, but only to the extent that the holders of the Senior Debt (or their representative or
representatives or a trustee) notify the Trustee in writing within 180&nbsp;days of such payment of the
amounts then due and owing to the holders of such Senior Debt and only the amounts specified in
such notice to the Trustee shall be paid to the holders of such Senior Debt.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.03 Liquidation; Dissolution; Bankruptcy.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any direct or indirect payment by or on behalf of the Company or direct or indirect
distribution of assets of the Company of any kind or character, whether in cash, property or
securities, by set-off or otherwise, to creditors upon any dissolution or winding up or liquidation
or reorganization of the Company or assignment for the benefit of creditors or marshaling of
assets, whether voluntary or involuntary, or in bankruptcy, insolvency, receivership or other
proceedings, all amounts (including principal, premium, if any, and interest) due or to become due
upon all Senior Debt shall first be paid in full in cash, or such payment thereof provided for in
money in accordance with its terms, before any payment or distribution is made on account of the
principal (and premium, if any), interest or any other Obligation relating to the Notes; and upon
any such dissolution or winding up or liquidation or reorganization, any direct or indirect payment
by the Company, or direct or indirect payment or distribution (in cash, property, securities, by
set-off or otherwise) to which the Holders of the Notes or the Trustee would be entitled, except
for the provisions of this Article&nbsp;11, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or distribution, or by
the Holders of the Notes or by the Trustee under this Indenture if received by them or it, directly
to the holders of Senior Debt (pro rata to such holders on the basis of the respective amounts of
Senior Debt held by such holders, as calculated by the Company) or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing such Senior Debt may have been issued, as their respective interests may
appear, to the extent necessary to pay such Senior Debt in full, in cash, after giving effect to
any concurrent


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<P align="left" style="font-size: 10pt">payment or distribution to or for the holders of such Senior Debt, before any such payment or
distribution is made to the Holders of Notes or to the Trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event that, notwithstanding the foregoing, any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, by set-off or otherwise,
prohibited by the foregoing, shall be received by the Trustee or the Holders of the Notes before
all Senior Debt is paid in full in cash, or provision is made for such payment in cash in
accordance with its terms, such payment or distribution shall be held in trust for the benefit of
and shall be paid over or delivered to the holders of Senior Debt or their representative or
representatives, or to the trustee or trustees under any indenture pursuant to which any
instruments evidencing such Senior Debt may have been issued, and their respective interests may
appear, as calculated by the Company, for application to the payment of all Senior Debt remaining
unpaid to the extent necessary to pay such Senior Debt in full in cash in accordance with its
terms, after giving effect to any concurrent payment or distribution to or for the holders of such
Senior Debt.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Article&nbsp;11, the words, &#147;cash, property or securities&#148; shall not be deemed
to include shares of stock of the Company as reorganized or readjusted, or securities of the
Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article&nbsp;11 with respect to
the Notes to the payment of all Senior Debt which may at the time be outstanding; provided that (i)
such Senior Debt is assumed by the new corporation, if any, resulting from any such reorganization
or readjustment, and (ii)&nbsp;the rights of the holders of such Senior Debt are not, without the
consent of such holders, altered by such reorganization or readjustment. The consolidation of the
Company with, or the merger of the Company with or into, another Person or the liquidation or
dissolution of the Company following the conveyance or transfer of its properties and assets
substantially as an entirety to another Person upon the terms and conditions provided for in
Article&nbsp;IV of the Original Indenture and subject to Section&nbsp;5.01 shall not be deemed a dissolution,
winding up, liquidation or reorganization for the purposes of this Section&nbsp;11.03 if such other
Person shall, as a part of such consolidation, merger, conveyance, or transfer, comply with the
conditions stated in Article&nbsp;IV of the Original Indenture. Nothing in Section&nbsp;11.02 or this Section
11.03 shall apply to claims of, or payments to, the Trustee under or pursuant to Section&nbsp;6.7 of the
Original Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.04 Subrogation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the payment in full in cash of all Senior Debt, the rights of the Holders of the
Notes shall be subrogated to the rights of the holders of such Senior Debt to receive payments or
distributions of cash, property or securities of the Company, as the case may be, applicable to
such Senior Debt until the principal of (and premium, if any) and interest on the Notes shall be
paid in full; and, for the purposes of such subrogation, no payments or distributions to the
holders of such Senior Debt of any cash, property or securities to which the Holders of the Notes
or the Trustee would be entitled except for



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<P align="left" style="font-size: 10pt">the provisions of this Article&nbsp;11, and no payment over pursuant to the provisions of this
Article&nbsp;11, to or for the benefit of the holders of such Senior Debt by Holders of the Notes or the
Trustee, shall, as between the Company, its creditors other than holders of Senior Debt, and the
Holders of the Notes, be deemed to be a payment by the Company to or on account of such Senior
Debt. It is understood that the provisions of this Article&nbsp;11 are and are intended solely for the
purposes of defining the relative rights of the Holders of the Notes, on the one hand, and the
holders of such Senior Debt on the other hand.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nothing contained in this Article&nbsp;11 or elsewhere in this Indenture or in the Notes is
intended to or shall impair, as between the Company, its creditors other than the holders of Senior
Debt, and the Holders of the Notes, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Notes the principal of (and premium, if any) and
interest on the Notes as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders of the Notes and
creditors of the Company, as the case may be, other than the holders of Senior Debt, nor shall
anything herein or therein prevent the Trustee or the Holder of any Note from exercising all
remedies otherwise permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article&nbsp;11 of the holders of such Senior Debt in respect of cash,
property or securities of the Company, as the case may be, received upon the exercise of any such
remedy.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any payment or distribution of assets of the Company referred to in this Article&nbsp;11, the
Trustee, subject to the provisions of Section&nbsp;6.2 of the Original Indenture, and the Holders of the
Notes, shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidation trustee, agent or
other Person making such payment or distribution, delivered to the Trustee or to the Holders of the
Notes, for the purposes of ascertaining the Persons entitled to participate in such distribution,
the holders of the Senior Debt and other indebtedness of the Company, as the case may be, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article&nbsp;11; provided that such court, trustee, receiver, agent
or other Person has been apprised of, or the order, decree or certificate makes reference to, the
provisions of this Article.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.05 Trustee To Effectuate Subordination


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Holder of Notes by such Holder&#146;s acceptance thereof authorizes and directs the Trustee on
such Holder&#146;s behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article&nbsp;11 and appoints the Trustee as such Holder&#146;s
attorney-in-fact for any and all such purposes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.06 Notice By The Company


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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment of monies to or by the Trustee in respect of the
Notes pursuant to the provisions of this Article&nbsp;11. Notwithstanding the provisions of this Article
11 or any other provision of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment of monies to or by the
Trustee in respect of the Notes pursuant to the provisions of this Article&nbsp;11, unless and until the
Trustee shall have received written notice thereof at the Corporate Trust Office of the Trustee
from the Company or a holder or holders of Senior Debt or from any trustee therefor or
representative thereof; and before the receipt of any such written notice, the Trustee, subject to
the provisions of Section&nbsp;6.2 of the Original Indenture, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall not have received the
notice provided for in this Section&nbsp;11.06 at least two Business Days prior to the date upon which
by the terms hereof any money may become payable for any purpose (including, without limitation,
the payment of the principal of (and premium, if any) or interest on any Security), then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purposes for which they were received, and shall
not be affected by any notice to the contrary which may be received by it within two Business Days
prior to such date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Debt (or a trustee or representative on behalf of
such holder) to establish that such notice has been given by a holder of such Senior Debt or a
trustee or representative on behalf of any such holder or holders. In the event that the Trustee
determines in good faith that further evidence is required with respect to the right of any Person
as a holder of Senior Debt to participate in any payment or distribution pursuant to this Article
11, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts pertinent to the right
of such Person under this Article&nbsp;11, and, if such evidence is not furnished, the Trustee may defer
any payment to such Person pending judicial determination as to the right of such Person to receive
such payment or distribution.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.07 Rights Of The Trustee; Holders Of Senior Debt


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article&nbsp;11 in respect of any Senior Debt at any time held by it, to the same extent as any other
holder of Senior Debt, and nothing in this Indenture shall deprive the Trustee of any of its rights
as such holder. With respect to the holders of Senior Debt of the Company, the Trustee undertakes
to perform or to observe only such of its covenants and obligations as are set forth in this
Article&nbsp;11, and no implied covenants or obligations


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<P align="left" style="font-size: 10pt">with respect to the holders of such Senior Debt shall be read into this Indenture against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the holders of such Senior
Debt and, subject to the provisions of Section&nbsp;6.2 of the Original Indenture, the Trustee shall not
be liable to any holder of such Senior Debt if it shall pay over or deliver to Holders of Notes,
the Company or any other Person money or assets to which any holder of such Senior Debt shall be
entitled by virtue of this Article&nbsp;11 or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;11.08 Subordination May Not Be Impaired


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No right of any present or future holder of any Senior Debt to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act
on the part of the Company or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise be charged with.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Without in any way limiting the generality of the foregoing paragraph, the holders of
Senior Debt may, at any time and from time to time, without the consent of or notice to the Trustee
or the Holders of the Notes, without incurring responsibility to the Holders of the Notes and
without impairing or releasing the subordination provided in this Article&nbsp;11 or the obligations
hereunder of the Holders of the Notes to the holders of Senior Debt, do any one or more of the
following: (i)&nbsp;change the manner, place or terms of payment or extend the time of payment of, or
renew or alter, such Senior Debt, or otherwise amend or supplement in any manner such Senior Debt
or any instrument evidencing the same or any agreement under which such Senior Debt is outstanding;
(ii)&nbsp;sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise
securing such Senior Debt; (iii)&nbsp;release any Person liable in any manner for the collection of such
Senior Debt; and (iv)&nbsp;exercise or refrain from exercising any rights against the Company and any
other Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The subordination provisions of this Article&nbsp;11 shall continue to be effective or be
reinstated, as the case may be, if at any time payment and performance of the Senior Debt is,
pursuant to applicable law, avoided, recovered, or rescinded or must otherwise be restored or
returned by any holder of Senior Debt, whether as a &#147;voidable preference,&#148; &#147;fraudulent conveyance,&#148;
&#147;fraudulent transfer,&#148; or otherwise, all as though such payment or performance had not been made.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If, upon any proceeding referred to in Section&nbsp;11.03, the Trustee does not file a claim in
such proceeding prior to fifteen Business Days before the expiration of the time to file such
claim, the holders of Senior Debt or their agent may file such claim on behalf of the Holders of
the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The subordination provisions contained herein are solely for the benefit of the holders
from time to time of Senior Debt and their representatives, assignees and beneficiaries and may not
be rescinded, canceled, amended or modified in


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<P align="left" style="font-size: 10pt">any way other than, as to any holder of Senior Debt, pursuant to an amendment or modification
that is permitted by the documentation relating to the Senior Debt applicable to such holder.


<P align="center" style="font-size: 10pt">ARTICLE XII



<P align="center" style="font-size: 10pt">MISCELLANEOUS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.01 No Adverse Interpretation of Other Agreements


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.02 Severability


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In case any provision in this Third Supplemental Indenture or in the Notes is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.03 Table of Contents, Headings, etc


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part of
this Indenture and shall in no way modify or restrict any of the terms or provisions hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.04 Ratification Of Original Indenture


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Original Indenture, as supplemented by this Third Supplemental Indenture, is in all respects
ratified and confirmed, and this Third Supplemental Indenture shall be deemed part of the Original
Indenture in the manner and to the extent herein and therein provided.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.05 Trustee Not Responsible for Recitals


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The recitals herein contained are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no representation as to
the validity or sufficiency of this Third Supplemental Indenture.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.06 Performance by Trustee


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Trustee, for itself and its successors accepts the trusts under the Original Indenture as
amended by this Third Supplemental Indenture, and agrees to perform the same, but only upon the terms and
conditions set forth in the Original Indenture, including, without limitation, the terms and
provisions defining and limiting the liability and responsibility of the Trustee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12.07 Governing Law


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&nbsp;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Third Supplemental Indenture and each Note shall be governed by and construed in accordance
with the laws of the State of New York.


<P align="center" style="font-size: 10pt">&#091;Signatures on following page&#093;



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<P align="center" style="font-size: 10pt">SIGNATURES



<P align="left" style="font-size: 10pt">Dated as of June&nbsp;23, 2005



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<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CALPINE CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Robert D. Kelly</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Robert D. Kelly</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILMINGTON TRUST COMPANY<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
James J. McGinley</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">James J. McGinley</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Authorized Signer</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&#091;SIGNATURE PAGE TO THE THIRD SUPPLEMENTAL INDENTURE&#093;



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT A



<P align="center" style="font-size: 10pt">&#091;Face of Note&#093;




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS NOTE IS ISSUED IN GLOBAL FORM AND REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (&#147;DTC&#148;) OR A NOMINEE THEREOF. UNLESS THIS NOTE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC, TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE &#038; CO., OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE &#038; CO. OR SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &#038; CO., HAS AN INTEREST HEREIN.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED FORM
IN ACCORDANCE WITH THE TERMS HEREOF AND OF THE INDENTURE (AS DEFINED BELOW), THIS NOTE MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY.


<P align="center" style="font-size: 10pt">A-1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">CALPINE CORPORATION



<P align="center" style="font-size: 10pt">$&#091; &#093; PRINCIPAL AMOUNT OF<BR>
7.75% CONTINGENT CONVERTIBLE NOTES DUE 2015<BR>
&nbsp;


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">No. <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">principal amount $<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">CUSIP: 131347BN5</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">ISIN: US131347BN56</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">Calpine Corporation, a Delaware corporation, promises to pay to Cede &#038; Co., or registered assigns,
the principal amount in Dollars on June&nbsp;1, 2015.


<P align="left" style="font-size: 10pt">Interest Payment Dates: June 1 and December 1.


<P align="left" style="font-size: 10pt">Record Dates: May&nbsp;15 and November&nbsp;15.


<P align="left" style="font-size: 10pt">Additional provisions of this Note are set forth on the reverse hereof.



<P align="center" style="font-size: 10pt">A-2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its
duly authorized officers.



<P align="left" style="font-size: 10pt">Date: June&nbsp;23, 2005



<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CALPINE CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Dated: June&nbsp;23, 2005


<P align="left" style="font-size: 10pt">TRUSTEE&#146;S CERTIFICATE OF AUTHENTICATION:


<P align="left" style="font-size: 10pt">Wilmington Trust Company, as Trustee, certifies that this is one of the Notes referred to in the
Indenture.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">By:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Dated:</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Authorized Officer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">A-3
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt">&#091;Back of Note&#093;



<P align="left" style="font-size: 10pt">$&#091; &#093; principal amount of 7.75% Contingent Convertible Notes due 2015



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) INTEREST. Calpine Corporation, a Delaware corporation (such corporation and its
successors and assigns under the Indenture referred to below, being herein called the
&#147;Company&#148;), promises to pay interest on the principal amount of this Note at 7.75% per
annum from June&nbsp;23, 2005 until maturity. The Company shall pay interest semi-annually in
arrears on June 1 and December 1 of each year, commencing December&nbsp;1, 2005, or if any such
day is not a Business Day, on the next succeeding Business Day (each, an &#147;Interest Payment
Date&#148;), except as set forth in this paragraph. Interest on the Notes shall accrue (except
as set forth in this paragraph) from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated between a
record date referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such next succeeding Interest Payment Date. The Company shall
pay interest (including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the rate then in effect; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments
of interest (without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day
year of twelve 30-day months.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) METHOD OF PAYMENT. The Company shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on
the May&nbsp;15 or November&nbsp;15 next preceding the Interest Payment Date, even if such Notes are
cancelled after such record date and on or before such Interest Payment Date, except as
provided in Section&nbsp;2.13 of the Original Indenture with respect to defaulted interest.
Holders must surrender Notes to a Paying Agent to collect principal payments. The Notes
shall be payable as to principal, premium, if any, and interest at the office or agency of
the Company maintained for such purpose within or without the City and State of New York,
or, at the option of the Company, payment of interest may be made by check mailed to the
Holders at their addresses set forth in the register of Holders; provided that payment by
wire transfer of immediately available funds shall be required with respect to principal of
and interest, premium on, all Global Notes and all other Notes the Holders of which shall
have provided wire transfer instructions to the Company or the Paying Agent. Such payment
shall be in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts.


<P align="center" style="font-size: 10pt">A-4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) PAYING AGENT, CONVERSION AGENT AND REGISTRAR. Initially, Wilmington Trust
Company, the Trustee under the Indenture, shall act as Paying Agent, Conversion Agent and
Registrar. The Company may change any Paying Agent, Conversion Agent or Registrar without
prior notice to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) INDENTURE. The Company issued the Notes under an Indenture dated as of August&nbsp;10,
2000, as supplemented by the First Supplemental Indenture dated as of September&nbsp;28, 2000,
the Second Supplemental Indenture dated as of September&nbsp;30, 2004 and the Third Supplemental
Indenture dated as of June&nbsp;23, 2005 (as so supplemented, the &#147;Indenture&#148;) between the
Company and the Trustee. The Notes are unsecured general obligations of the Company. The
terms of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code
Sections&nbsp;77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred
to the Indenture and such Act for a statement of such terms. To the extent any provision
of this Note conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) MANDATORY REDEMPTION. The Company shall not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) REPURCHASE AT OPTION OF HOLDER. If a Change of Control occurs, each Holder of
Notes shall have the right to require the Company to repurchase all or any part (equal to
$1,000 principal amount or an integral multiple of $1,000) of that Holder&#146;s Notes pursuant
to the terms set forth in the Third Supplemental Indenture. The Company shall deliver to each holder, that
has delivered to the Paying Agent an irrevocable written notice of purchase and the Notes
to be repurchased, a payment in cash equal the Change of Control Purchase Price as set
forth in the Third Supplemental Indenture. Within 30&nbsp;days following any Change of Control, the Company shall
mail a notice to each Holder as required by the Third Supplemental Indenture.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) CONVERSION. Upon satisfaction of the conditions set forth in Section&nbsp;10.01(a) of
the Third Supplemental Indenture, a Holder of a Note may convert any portion of the principal amount of any
Note that is an integral multiple of $1,000 into cash and fully paid and non-assessable
shares (calculated as to each conversion to the nearest 1/1,000th of a share) of Common
Stock in accordance with the provisions of Section&nbsp;10.15 of the Third Supplemental Indenture. Such conversion
right shall commence on the initial issuance date of the Notes and expire at the close of
business on the Business Day immediately preceding the date of Maturity, subject, in the
case of conversion of any Global Note, to any Applicable Procedures. The Conversion Price
shall, as of the date of the Third Supplemental Indenture, initially be $4.00. The Conversion Rate shall, as
of the date of the Third Supplemental Indenture, initially be 250.0000 per $1,000 principal amount of Notes.
The Conversion Rate will be adjusted under the circumstances
specified in the Third Supplemental Indenture.


<P align="center" style="font-size: 10pt">A-5
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) SUBORDINATION. The Notes shall be subordinated to Senior Debt to the extent and
in the manner provided for in the Third Supplemental Indenture.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without
coupons in denominations of $1,000 principal amount and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in the
Indenture. The Registrar and the Trustee may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture. The
Company need not exchange or register the transfer of any Notes during the period between a
record date and the corresponding Interest Payment Date.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) DEFEASANCE. The Company may not terminate some or all of its obligations under
the Notes and the Indenture as it pertains to the Notes.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its
owner for all purposes, except that interest (other than defaulted interest) will be paid
to the person that was the registered Holder on the relevant record date for such payment
of interest.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture
or the Notes may be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes voting as a single class, and
any existing default or compliance with any provision of the Notes or
the Indenture (with respect to the Notes) may be
waived with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note,
the Indenture or the Notes may be amended or supplemented as set forth in the Indenture.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) DEFAULTS AND REMEDIES. Events of Default shall be as set forth in the Indenture.
If any Event of Default occurs and is continuing, the Trustee or the Holders of at least
25% in principal amount of the then outstanding Notes may declare all the Notes to be due
and payable. Notwithstanding the foregoing, in the case of an Event of Default arising
from certain events of bankruptcy or insolvency, all outstanding Notes shall become due and
payable without further action or notice. Holders may not enforce the Indenture or the
Notes except as provided in the Indenture.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) TRUSTEE DEALINGS WITH COMPANY. Subject to the provisions of the Trust Indenture
Act, the Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may otherwise
deal with the Company or its Affiliates, as if it were not the Trustee.


<P align="center" style="font-size: 10pt">A-6
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) NO RECOURSE AGAINST OTHERS. A director, officer, employee or stockholder, of the
Company as such, shall not have any liability for any obligations of the Company under the
Notes, the Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for the issuance of
the Notes.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) AUTHENTICATION. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of repurchase as a
convenience to Holders. No representation is made as to the accuracy of such numbers
either as printed on the Notes or as contained in any notice of redemption and reliance may
be placed only on the other identification numbers placed thereon.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Calpine
Corporation<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50 West San Fernando Street<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;San Jose, California 95113<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Investor Relations<BR>


<P align="center" style="font-size: 10pt">A-7
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt">ASSIGNMENT FORM



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To assign this Note, fill in the form below:


<P align="left" style="font-size: 10pt">(I)&nbsp;or (we)&nbsp;assign and transfer this Note to:



<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>


<DIV align="center" style="font-size: 10pt">(Insert assignee&#146;s legal name)</DIV>



<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>


<DIV align="center" style="font-size: 10pt">(Insert assignee&#146;s soc. sec. or tax I.D. no.)</DIV>



<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;


<P align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>


<DIV align="center" style="font-size: 10pt">(Print or type assignee&#146;s name, address and zip code)</DIV>


<P align="left" style="font-size: 10pt">and irrevocably appoint <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</u>
to transfer this Note on the books of the Company. The agent may substitute another to act for
him.


<P align="left" style="font-size: 10pt">Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>


<P align="left" style="font-size: 10pt">Your Signature: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>



<DIV align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Sign exactly as your name appears on the face of this Note)</DIV>


<P align="left" style="font-size: 10pt">Signature Guarantee<SUP style="font-size: 85%; vertical-align: text-top">*</SUP>: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP> Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">A-8
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="center" style="font-size: 10pt">OPTION OF HOLDER TO ELECT PURCHASE



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you want to elect to have only part of the Note purchased by the Company pursuant to
Section&nbsp;3.03 of the Third Supplemental Indenture, state the amount you elect to have purchased:


<P align="left" style="font-size: 10pt">$_______________ principal amount


<P align="left" style="font-size: 10pt">Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>


<P align="left" style="font-size: 10pt">Your Signature: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>



<DIV align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Sign exactly as your name appears on the face of this Note)</DIV>


<P align="left" style="font-size: 10pt">Tax Identification No.: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>


<P align="left" style="font-size: 10pt">Signature Guarantee<SUP style="font-size: 85%; vertical-align: text-top">*</SUP>: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><BR>




<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP> Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor acceptable to the Trustee).</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">A-9
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="center" style="font-size: 10pt">FORM OF CONVERSION NOTICE


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">TO:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CALPINE CORPORATION<BR>
WILMINGTON TRUST COMPANY</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned registered owner of the attached Note hereby irrevocably exercises the option
to convert the attached Note, or the portion thereof below designated, into the Conversion Value in
accordance with the terms of the Third Supplemental Indenture referred to in the attached Note. Capitalized terms
used herein but not defined herein shall have the meanings ascribed to such terms in the Third Supplemental Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLEASE NOTE: You may only convert the attached Note upon satisfaction of one of
the conditions
set forth in Section&nbsp;10.01 of the Third Supplemental Indenture. If you are converting the attached Note upon
satisfaction of the condition set forth in Section&nbsp;10.01(a)(3), please provide, with this
Conversion Notice, reasonable evidence that the Trading Price of the Note is less than 95% of the
product of (x)&nbsp;the Common Stock Price and (y)&nbsp;the Conversion Rate in effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon conversion of your Note, you will receive the Conversion Value in cash and Common Stock
of the Company in accordance with Article&nbsp;10 of the Third Supplemental Indenture.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To convert only part of the attached Note, state the principal amount to be converted (which
must be $1,000 or an integral multiple of $1,000):


<P align="left" style="font-size: 10pt">$__________________



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you want the stock certificate (if any) made out in another person&#146;s name, fill in the form
below:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>

<DIV align="center" style="font-size: 10pt">(Insert other person&#146;s social security or tax I.D. no.)</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<DIV align="center" style="font-size: 10pt"><DIV style="border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Print or type other person&#146;s name, address and zip code)</DIV>


<P align="left" style="font-size: 10pt">Date: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Signed: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Sign exactly as your name appears on the other side of this Security. The Signature(s) must
be guaranteed by an &#147;eligible guarantor institution&#148; meeting the requirements of the Note
registrar, which requirements include membership or participation in the Security Transfer Agent
Medallion Program (&#147;STAMP&#148;) or such other &#147;signature guarantee program&#148; as may be determined by the
Note registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended)

<P align="left" style="font-size: 10pt">Signature Guarantee: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>




<P align="center" style="font-size: 10pt">A-10
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE<SUP style="font-size: 85%; vertical-align: text-top">*</SUP>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">principal amount of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">this Global Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Signature of</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Amount of decrease</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">Amount of increase</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">following such</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">authorized officer</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">in principal amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">in principal amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">decrease</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">of Trustee or</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Date of Exchange</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">of this Global Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">of this Global Note</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">(or increase)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Custodian</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP> This schedule should be included only if the Note
is issued in global form.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">A-11
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">






<P align="right" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">Table of Additional Shares


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="50" style="border-bottom: 1px solid #000000"><B>Stock Price ($)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Effective Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3.10</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>3.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>4.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>4.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>5.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>6.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>7.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>7.50</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>10.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>15.00</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>20.00</B></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;23, 2005</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.82</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.57</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.64</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.71</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.63</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">72.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.31</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.69</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.97</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.88</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71.11</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39.55</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.08</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.41</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.73</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.86</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60.61</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.66</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30.58</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.99</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.37</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69.67</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42.87</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26.39</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.92</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.62</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.89</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58.10</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35.40</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.56</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.26</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67.70</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56.09</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45.63</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32.51</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28.15</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.79</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.90</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.97</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">66.59</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53.12</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.47</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27.76</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23.53</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17.78</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.81</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.02</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65.05</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47.84</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33.91</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25.03</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15.38</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12.68</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10.74</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9.30</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8.20</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5.24</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.96</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.90</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">June&nbsp;1, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.00</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">A-12
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-5.1
<SEQUENCE>4
<FILENAME>f10195exv5w1.htm
<DESCRIPTION>EXHIBIT 5.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv5w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt">EXHIBIT 5.1



<P align="center" style="font-size: 10pt">&#091;COVINGTON &#038; BURLING LETTERHEAD&#093;


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">June&nbsp;23, 2005</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">Calpine Corporation<BR>
50 West San Fernando Street<BR>
San Jose, CA 95113

<P align="left" style="font-size: 10pt">Ladies and Gentlemen:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as counsel to Calpine Corporation, a Delaware corporation (the &#147;Company&#148;), in
connection with the registration by the Company of (a) $650,000,000 in aggregate principal amount
of the Company&#146;s 7.75% Contingent Convertible Notes Due June&nbsp;1, 2015 (the &#147;Convertible Notes&#148;), to
be issued pursuant to the Indenture, dated as of August&nbsp;10, 2000, as supplemented by the First
Supplemental Indenture, dated as of September&nbsp;28, 2000, the Second Supplemental Indenture, dated as
of September&nbsp;30, 2004, and the Third Supplemental Indenture, dated as of June&nbsp;23, 2005 (as so
supplemented, the &#147;Indenture&#148;), among the Company and Wilmington Trust Company, as Trustee (the
&#147;Trustee&#148;), and (b)&nbsp;up to 209,677,390 shares of Common Stock of the Company, par value $.001 per
share (the &#147;Shares&#148;), as may be issued from time to time upon conversion of the Convertible Notes,
pursuant to the Registration Statement on Form S-3, File No.&nbsp;333-76880, as amended to the date
hereof (as so amended, the &#147;Registration Statement&#148;), filed with the Securities and Exchange
Commission (the &#147;SEC&#148;), and the Prospectus Supplement, dated June&nbsp;20, 2005 (the &#147;Prospectus
Supplement&#148;), filed with the SEC pursuant to Rule&nbsp;424(b)(2) under the Securities Act of 1933, as
amended (the &#147;Securities Act&#148;). The Convertible Notes are being sold in accordance with the terms
of an Underwriting Agreement, dated June&nbsp;20, 2005, between the Company and Goldman, Sachs &#038; Co.
(the &#147;Underwriting Agreement&#148;).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have reviewed such records, certificates and other documents, and such questions of law, as
we have deemed necessary or appropriate for the purposes of this opinion. We have assumed that all
signatures are genuine, that all documents submitted to us as originals are authentic, and that all
copies of documents submitted to us conform to the originals


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have relied as to certain matters on information obtained from public officials, officers
of the Company and other sources believed by us to be responsible.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon the foregoing, and subject to the qualifications set forth below, we are of the
opinion that (a)&nbsp;the Convertible Notes have been duly authorized for issuance and, when executed by
the Company and authenticated by the Trustee in the manner provided in the Indenture and delivered
against payment of the purchase price therefor set forth in the Underwriting Agreement, shall
constitute the valid and binding obligations of the Company,


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and other laws of general applicability relating to
or affecting creditors&#146; rights and to general equity principles and (b)&nbsp;the Shares have been duly
authorized and reserved for issuance upon conversion of the Convertible Notes and, when issued upon
such conversion in accordance with the terms of the Convertible Notes, and assuming compliance with
the Securities Act, will be validly issued, fully paid and nonassessable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing opinion is subject to the qualifications that we express no opinion as to (i)
waivers of defenses or statutory or constitutional rights or waivers of unmatured claims or rights,
(ii)&nbsp;rights to indemnification, contribution or exculpation to the extent that they purport to
indemnify any party against, or release or limit any party&#146;s liability for, its own breach or
failure to comply with statutory obligations, or to the extent such provisions are contrary to
public policy or (iii)&nbsp;rights to collection or liquidated damages or penalties on overdue or
defaulted obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are members of the bar of the State of New York. We do not express any opinion herein on
any laws other than the law of the State of New York and the Delaware General Corporation Law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby consent to the incorporation by reference of this opinion as Exhibit&nbsp;5.1 to the
Registration Statement and to the reference to our firm under the heading &#147;Legal Matters&#148; in the
Prospectus contained in the Registration Statement and in the Prospectus Supplement. In giving
such consent, we do not thereby admit that we are in the category of persons whose consent is
required under Section&nbsp;7 of the Securities Act.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">/s/ Covington &#038; Burling
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>5
<FILENAME>f10195exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><B>Exhibit 10.01</B>


<P align="center" style="font-size: 10pt"><B>DATED 28 MAY 2005</B>



<P align="center" style="font-size: 10pt"><B>CALPINE UK HOLDINGS LIMITED</B>



<P align="center" style="font-size: 10pt"><B>CALPINE CORPORATION</B>



<P align="center" style="font-size: 10pt"><B>QUINTANA CANADA HOLDINGS, LLC</B>



<P align="center" style="font-size: 10pt"><B>NORMANTRAIL (UK CO 3) LIMITED</B>



<P align="center" style="font-size: 10pt"><B>INTERNATIONAL POWER PLC</B>



<P align="center" style="font-size: 10pt"><B>and</B>



<P align="center" style="font-size: 10pt"><B>MITSUI &#038; CO., LTD</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade color="#000000">
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top"><B>SHARE SALE AND PURCHASE AGREEMENT</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade color="#000000">
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">Skadden, Arps, Slate, Meagher &#038; Flom (UK)&nbsp;LLP


<DIV align="center" style="font-size: 10pt">40 Bank Street</DIV>


<DIV align="center" style="font-size: 10pt">Canary Wharf</DIV>


<DIV align="center" style="font-size: 10pt">London</DIV>


<DIV align="center" style="font-size: 10pt">E14 5DS</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>CONTENTS</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interpretation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Sale and Purchase
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conditions Precedent
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consideration
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conduct of business before Completion
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Completion
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Completion Accounts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Seller&#146;s Warranties
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Purchaser parties&#146; Warranties
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Undertakings
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Effect of Completion
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Remedies and Waivers
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Conduct of Claims
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Basis of Recovery
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">42</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Trade Marks
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">16.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Assignment and novation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">43</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">17.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Termination
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Further Assurance
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Notices
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Announcements
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">46</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Confidentiality
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">47</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Costs and Expenses
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Time of Essence
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Interest
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">48</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">25.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Invalidity
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Several Guarantee from the Purchaser Guarantors
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Guarantee from the Seller Guarantor
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">50</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Third Party Rights
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Counterparts
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">30.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Entire Agreement
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">52</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Withholding, Deductions and Set Off
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32.</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Choice of Governing Law
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">53</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 1 CORPORATE INFORMATION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">54</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 2 THE WARRANTIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">56</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 3 LIMITATION OF LIABILITY</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">69</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 4 COMPLETION ARRANGEMENTS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">75</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 5 CONDUCT OF BUSINESS BEFORE COMPLETION</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">79</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 6 DATA ROOM LIST</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">84</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 7 BP AGREEMENTS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">85</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">SCHEDULE 8 ENVIRONMENTAL COVENANT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">86</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="5" nowrap valign="top" align="left">APPENDIX I BALANCE SHEET DATED APRIL 2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt"><B>THIS AGREEMENT </B>(the &#147;<B>Agreement</B>&#148;) is made on 28 May, 2005



<P align="left" style="font-size: 10pt"><B>BETWEEN</B>:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(1)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CALPINE UK HOLDINGS LIMITED</B>, a company incorporated in England and Wales (Registered No.
4233113), whose registered office is at Saltend, Hedon Road, Hull, Yorkshire HU12 8GA (the
&#147;<B>Seller</B>&#148;);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(2)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CALPINE CORPORATION</B>, a corporation organized and existing under the laws of Delaware, whose
principal place of business is located at 50 West San Fernando Street, San Jose, California
95113, USA (&#147;<B>Calpine</B>&#148;);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(3)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>QUINTANA CANADA HOLDINGS, LLC</B>, a limited liability company organized and existing under the
laws of Delaware, whose principal place of business is located at 50 West San Fernando Street,
San Jose, California 95113, USA (the &#147;<B>Seller Guarantor</B>&#148;, the Seller, Calpine and the Seller
Guarantor collectively are referred to in this Agreement as the &#147;<B>Seller Parties</B>&#148;);</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(4)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NORMANTRAIL (UK CO 3) LIMITED</B>, a company incorporated in England and Wales (Registered No.
5234591), with its registered office at Senator House, 85 Queen Victoria Street, London, EC4V
4DP (the &#147;<B>Purchaser</B>&#148;);</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(5)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INTERNATIONAL POWER PLC</B>, a company incorporated in England and Wales (Registered No.
2366963), with its registered office at Senator House, 85 Queen Victoria Street, London, EC4V
4DP (&#147;<B>IPR</B>&#148;); and</TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>(6)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>MITSUI &#038; CO., LTD.</B>, a company incorporated in Japan, with its registered office at 2-1,
Ohtemachi 1-chome, Chiyoda ku, Tokyo, Japan (&#147;<B>Mitsui</B>&#148; and, together with IPR, the &#147;<B>Purchaser
Guarantors</B>&#148;; the Purchaser and the Purchaser Guarantors collectively are referred to in this
Agreement as the &#147;<B>Purchaser Parties</B>&#148;).</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>WHEREAS</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(A)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller has agreed to sell, and the Purchaser has agreed to purchase, the entire issued
share capital of each of SCCL and UK OpCo for the Purchase Price.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(B)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>IPR is the indirect legal and beneficial owner of 70% of the Purchaser&#146;s issued share capital
and Mitsui is the indirect legal and beneficial owner of 30% of the Purchaser&#146;s issued share
capital.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(C)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Purchaser Guarantors will benefit from the execution, delivery and performance of
this Agreement and therefore each of the Purchaser Guarantors has agreed to guarantee (on a
several basis) the Purchaser&#146;s payment obligations under this Agreement on the terms set out
in clause 26. Each of the Purchaser Guarantors intends that this Agreement shall have effect
as a deed.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(D)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As the indirect parent of the Seller, the Calpine will indirectly benefit from the execution,
delivery and performance of this Agreement and therefore Calpine has agreed to provide certain
warranties under this Agreement. Calpine intends that this Agreement shall have effect as a
deed.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(E)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As an Affiliate of the Seller, the Seller Guarantor will indirectly benefit from the
execution, delivery and performance of this Agreement and therefore the Seller Guarantor has
agreed to guarantee on the terms set out in clause 27 the payment by the Seller of amounts in
respect of liabilities of the Seller in respect of all Claims under this Agreement other than
Claims for breach of Warranty. The Seller Guarantor intends that this Agreement shall have
effect as a deed.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><B>WHEREBY IT IS AGREED </B>as follows:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INTERPRETATION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Agreement and the Schedules to it:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Accounts</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the draft individual accounts (as that term is
used in section 226 of the Act) and cash flow
statement) of each of SCCL and UK OpCo for the
financial period ended on 31 December&nbsp;2004, together
with the notes thereto in the Agreed Form and set
out in Appendix&nbsp;3 of the Disclosure Letter;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Accounts Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means 31 December&nbsp;2004;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Accounting Principles</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the accounting policies, principles, bases,
assumptions and judgements adopted or used in the
preparation of the Accounts;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Accountant&#146;s Report</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a report to the directors of SCCL (as the same
may be from time to time prior to, at or immediately
after Completion) which satisfies the requirements
of section 156(4) of the Act in connection with the
statutory declarations to be given by such directors
of SCCL pursuant to paragraph 2 of Part II of
Schedule&nbsp;4, and resolutions to be passed by the
board of directors of SCCL pursuant to paragraph 1.7
of Part II of Schedule&nbsp;4, in each case at
Completion;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Act</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Companies Act 1985, as amended;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Affiliate</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">a person that directly, or indirectly through one or
more intermediaries, controls, is controlled by, or
is under common control with, the person specified,
where &#147;control&#148; means the possession, directly or
indirectly, of the power to direct or cause the
direction of the management policies of a person,
through the ownership of voting securities, by
contract, as trustee, executor or otherwise;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Aggregate Projected NWC</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such
term in clause&nbsp;4.1;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Aggregate Unadjusted
Purchase Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
means &#163;489,969,886 (four hundred eighty nine million
nine hundred sixty nine thousand eight hundred
eighty six pounds), being the sum of the Unadjusted SCCL Purchase Price and the Unadjusted UK OpCo
Purchase Price;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Agreed Form</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means in relation to any document, such document in
a form which has been agreed by the Purchaser and
the Seller contemporaneously with or prior to the
execution of this Agreement and which has, for the
purpose of identification only, been initialled by
or on behalf of the Purchaser and the Seller;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Allowance</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in the
Greenhouse Gas Emissions Trading Scheme Regulations
2005;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Audited Accounts</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the individual accounts (as that term is used
in section 226 of the Act) and cash flow statement
of each of SCCL and UK OpCo for the financial year
ended on 31 December&nbsp;2004, together with the
auditors&#146; report on those accounts, the directors&#146;
report for that year and the notes thereto;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Balancing and Settlement
Code&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the document, as modified from time to time,
setting out electricity, balancing and settlement
arrangements established by NGC pursuant to its
transmission licence;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the agreements set out in Schedule&nbsp;7, and a
&#147;<B>BP Agreement</B>&#148; means any of them;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Approval</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the written approval of BP International in
relation to the sale and transfer of the Shares or
in relation to any other aspect of this transaction
for which consent is required under the terms of the
&#091;*&#093;<SUP style="font-size: 85%; vertical-align: text-top">1</SUP> and in respect of any consequential
amendments to the BP</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="3%" nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">1</SUP></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96%">&#091;*&#093; Throughout this document, this symbol
indicates that material has been omitted pursuant to a request for confidential
treatment. The request for confidential treatment and the omitted material have
been filed separately with the Securities and Exchange Commission. Roughly four
pages of material have been omitted pursuant to the request for confidential
treatment.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreements that are necessary
to reflect the sale and transfer of the Shares to
the Purchaser;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Chemicals</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means BP Chemicals Limited, a company incorporated
in England and Wales (Registered No.&nbsp;00194971),
whose registered office is at Chertsey Road, Sunbury
On Thames, Middlesex TW16 7BP;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Conditions</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to it in clause 3.3;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Director</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in the
Participation Agreement;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Gas</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means BP Gas Marketing Limited, a company
incorporated in England and Wales (Registered No.
00908982), whose registered office is at Chertsey
Road, Sunbury On Thames, Middlesex TW16 7BP;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means BP International and any of its Affiliates,
and a &#147;<B>member of the BP Group</B>&#148; or &#147;<B>BP Group member</B>&#148;
shall mean any and all of BP International and its
Affiliates;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>BP International</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means BP International Limited, a company
incorporated in England and Wales (Registered No.
542515), whose registered office is at Chertsey
Road, Sunbury On Thames, Middlesex TW16 7BP;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the business conducted by SCCL and UK OpCo, or
either of them at the date of this Agreement, that
includes the management and operation of the
Facility and the supply of electricity and steam
from the Facility and any business activities
incidental to the foregoing;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business Day</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a day (other than a Saturday or a Sunday) on
which banks are generally open for business in
London and (other than in clauses 4.1 and 6.1.2)
Tokyo;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">5
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Business Information
Technology</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means information technology (including, without
limitation, hardware, software, filmware, networks
and connecting media) and documents relating thereto
which are used in the Business, details of which are
set out in the Disclosure Letter;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Calpine Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Calpine, the Seller Guarantor and each of
their Affiliates, and a &#147;<B>member of the Calpine
Group</B>&#148; or &#147;<B>Calpine Group member</B>&#148; shall mean any of
Calpine, the Seller Guarantor or any of their
respective Affiliates (in each case including the
Sale Group prior to Completion and excluding the
Sale Group at and following Completion);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>CCGT</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the combined cycle gas turbine plant situated
on the Property;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Certificate of Title</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the certificate of title and plans relating to
the Property in the Agreed Form and addressed to the
Purchaser and to the agent and security trustee
under the Facility Agreement notified by the
Purchaser to the Seller prior to Completion;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>CHP LECs</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning given in section 51B(8) of the
Climate Change Levy (General) (Amendment)
Regulations 2003 (S.1. 2003/604);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any claim made by the Purchaser against or to
any of the Seller Parties arising out of or in
connection with this Agreement or the transactions
contemplated hereby or referred to herein howsoever
arising or out of or in connection with the Tax
Covenant;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Company Business
Intellectual Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means all marks and service marks, rights in
designs, trade or business names and copyrights
(whether or not any of these is registered and
including applications for registration or renewal
of any such thing) and rights under licences and
consents in relation to any such thing and all
rights or forms of protection of a similar nature or
having equivalent or similar effect to any of these
which may subsist anywhere in the world which are
used or enjoyed in connection with the Business;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Company Business
Know-how</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the rights and interest in Know-how owned by a
member of the Sale Group or which are used or enjoyed</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">in connection with the Business;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Competent Authority</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any legal person having powers and/or
authority at law and/or any court of law or tribunal
and includes any government, governmental,
supranational or trade agency, department,
authority, court, regulatory body, the Environment
Agency, the Tax Authority and any local authority;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Completion</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the completion of the sale and purchase of the
Shares in accordance with clause 6;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Completion Amount</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause 4.2;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Completion Balance Sheet</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means, in relation to SCCL or UK OpCo, the balance
sheet for such company immediately prior to
Completion (in each case containing the same line
items as shown in the Accounts for such company)
prepared in accordance with the Accounting
Principles from which the Net Working Capital for
such company immediately prior Completion is to be
calculated;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Completion Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the date on which Completion occurs;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Completion Documents</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the documents to be executed by the Seller,
the Purchaser, the Purchaser Guarantors and/or
Calpine or the Seller Guarantor (as the case may be)
and delivered by the appropriate party at Completion
in accordance with clause 6 and Schedule&nbsp;4;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Conditions Precedent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the conditions precedent set out in clause 3.1;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Confidential Information</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means all information which is used in or otherwise
relates to the business, customers or financial or
other affairs of SCCL or UK OpCo prior to Completion
including information relating to:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;the marketing of electricity and/or gas
including customer names and lists and other details
of customers, sales targets, sales statistics,
market share statistics, prices, market research
reports and surveys and advertising or other
promotional materials; or</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;future projections, business development or
planning, commercial relationships and negotiations,</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">but does not include:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(i)&nbsp;information which is made public by or with the
written consent of the Purchaser;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(ii)&nbsp;information which enters the public domain
other than by a breach of this Agreement; or</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(iii)&nbsp;information which is, or is derived from
information that is in the public domain prior to
the date of this Agreement;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Data Room</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means those documents referred to in the list set
out in Schedule&nbsp;6;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Deed of Adherence</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the deed of adherence in the Agreed Form
relating to the Participation Agreement to be
entered into by the Purchaser and one or more
Affiliates of the Purchaser that are acceptable to
BP International as Shareholder Parents (as such
term is defined in the Participation Agreement);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Disclosure Letter</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the letter dated the date of this Agreement
from the Seller to the Purchaser in the Agreed Form
and delivered to the Purchaser&#146;s Solicitors
immediately prior to the execution of this
Agreement;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Draft Completion Balance Sheets</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause 7;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Electricity Trading Agreements</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and all electricity sales contracts,
electricity capacity reservation contracts,
contracts for differences, hedging agreements,
options and other similar agreements, in each case
relating to the electrical output or capacity of the
Facility;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Emergency</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means in relation to any environmental matter, any
situation in which significant harm is being caused
to the Environment or is likely to be caused to the
Environment and in respect of which immediate action
would be likely to be required in order to deal with
the causes of such harm;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Employee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the people employed by UK OpCo in the
Business, all or any of them;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Encumbrance</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any mortgage, charge (whether fixed or
floating), pledge, lien, hypothecation, option,
assignment, security interest or other encumbrance
of any kind exercisable by a third party securing or
any right conferring a priority of payment in
respect of any obligation of any person;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means living organisms including the ecological
systems of which they form part and all or any part
of the following media (alone or in combination): air (including without limitation the air within the
buildings and the air within other natural or man
made structures whether above or below ground);
water (including without limitation sea, water under
or within land or in drains or sewers and coastal
and inland waters), and land (including without
limitation land under water);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environment Agency</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the body corporate established under the
Environment Act 1995 and its successors from time to
time;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Approval</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any licence, authorisation, consent, permit or
any other approval (and any variation or
modification thereto) required under or pursuant to
Environmental Laws;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Indemnity Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the same meaning as Environmental Claim in
Schedule&nbsp;8;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Laws</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and all of the following to the extent
that they have the force of law and are enforceable
in England:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;supranational, national, European Union,
federal, state or local statutes, directives or
other laws or legislation, secondary or subordinate
legislation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;rules, regulations, orders, ordinances, notices,
decrees, guidelines, guidance notes, codes of
practice, circulars and the like made or issued
under (a)&nbsp;above; and</DIV></TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(c)&nbsp;common laws and equity,</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">
which have as a purpose or effect the protection of
the Environment from pollution and/or contamination
and/or which include or provide for remedies or
compensation for pollution and/or contamination of
the Environment and/or which regulate, restrict or
prohibit the release, discharge, emission, keeping,
treating, handling, storage, transfer, deposit or
disposal of Hazardous Substances but shall exclude
any such laws to the extent that they relate to town
and country planning, occupational health and safety
or consumer protection;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>EPC Contract</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Amended and Restated Turnkey Construction
Agreement dated 26 May&nbsp;2000 between SCCL, &#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Escrow Account</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a separately designated interest bearing
account opened by the Escrow Agent pursuant to the
Escrow Agreement;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Escrow Agent</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the person appointed to act as such pursuant
to the Escrow Agreement;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Escrow Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means an agreement in the Agreed Form (save for any
amendments required by the Escrow Agent and agreed
to by each of the Seller and the Purchaser, such
agreement not to be unreasonably withheld or
delayed) pursuant to which, <I>inter alia</I>, the
operation of the Escrow Account is regulated;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Estimated SCCL Intergroup Debt&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause 4.1;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Facility</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the gas-fired cogeneration facility with an
electrical generating capacity of 1200MW (nominal)
including the CCGT situated on the Property and
shall include any part thereof;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Facility Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the proposed &#091;*&#093; secured term facility
agreement between SCCL and certain banks and other
financial institutions for the provision of funds
for, <I>inter alia</I>, the purpose of making the payments
referred to in paragraph 3.2 of Part II of Schedule
4 in the form</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">notified to SCCL prior to Completion;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Financial Assistance
Procedure</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the procedure permitting the giving of
financial assistance within the meaning of section
151 of the Act for the acquisition of the Shares as
set out in sections 155 to 158 (inclusive)&nbsp;of the
Act;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Fundamental Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a Claim for or in respect of or in relation to
the Warranties contained in paragraphs 1, 2 and 3
(excluding sub-paragraphs 3.5 to 3.7 inclusive) of
Schedule&nbsp;2 or in relation to the warranties given by
Calpine and the Seller Guarantor in clause 8.6
(other than clause 8.6.5);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Gas Line</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the gas pipeline servicing the Property;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Gas Supply Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the gas supply agreement
between SCCL &#091;*&#093; dated
14 December&nbsp;1997, as amended;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Gas Support Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the amended and restated gas support agreement
between SCCL and &#091;*&#093; dated 18 July&nbsp;1997;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Greenhouse Gas Emissions
Permit</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in the
Greenhouse Gas Emissions Trading Scheme Regulations
2005;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Purchaser&#146;s Group or the Calpine Group (as
the case may be);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>GTMAs</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the three grid trade master agreements between SCCL and:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093; dated 26 September&nbsp;2003;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093; dated 13 March&nbsp;2001; and</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093; dated 15 April&nbsp;2002;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Hazardous Substance</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any substance capable (whether alone or in
combination with any other) of causing pollution or
contamination of the Environment and shall include
any waste;</TD>
</TR>
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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">11
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>H&#038;S Laws</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and all of the following to the extent
that they have the force of law and are enforceable
in England:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;supranational, national, European Union,
federal, state or local statutes, directives or
other laws or legislation, secondary or subordinate
legislation;</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;rules, regulations, orders, ordinances, notices
decrees, guidelines, guidance notes, codes of
practice, circulars and the like made or issued
under paragraph (a); and</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(c)&nbsp;common law and equity,
which relate to occupational health and safety;</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>ICTA 1988</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Income and Corporation Taxes Act 1988;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Incipient Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause
8.10.1(c);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Intellectual Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and/or all of the Business Information
Technology, Company Business Intellectual Property,
and Company Business Know-how;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Know-how</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means confidential and proprietary industrial and
commercial information and techniques in any form
(including, without limitation, paper,
electronically stored data, magnetic media, film and
microfilm), including (without limiting the
foregoing) drawings, formulae, recipes, test
results, reports, project reports and testing
procedures, instruction and training manuals, tables
of operating conditions, operating procedures,
market forecasts, specifications, quotations,
tables, lists and particulars of customers and
suppliers, marketing methods and advertising copy;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Lease</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the lease dated 23 September&nbsp;2003 in respect
of the Property between &#091;*&#093; and SCCL;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Liabilities</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and all liabilities, duties and
obligations of every description, including without
limitation interest whether deriving from contract,
common law, statute or otherwise, whether present or
future, actual or contingent, ascertained or
unascertained or disputed and</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">12
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">whether owed or
incurred severally or jointly and as principal or
surety in each case which arise from or in relation
to or are otherwise attributable to the Business
and/or any member of the Sale Group;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>LIBOR</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the London Interbank Offered Rate for six (6)
months pounds quoted in the <U>Financial Times</U> in
respect of any day or, if such day is not a business
day in England, in respect of the immediately
preceding Business Day or, if the <U>Financial Times</U> is
no longer published or no longer quotes LIBOR, as
announced or quoted by Barclays Bank Plc (or its
successor for the time being);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Long Stop Date</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means 7 August&nbsp;2005, or such later date as may be
agreed by the Seller and the Purchaser;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Losses</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means all losses, liabilities, damages, costs,
expenses or other liabilities (including all
interest, penalties, legal and other professional
fees, costs and expenses), charges, expenses, suits,
actions, payments, proceedings, claims, enforcement
processes and demands;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Luxco</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Calpine Energy Finance Luxembourg S.&#225;.r.l.;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Luxco Loan</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the loan of an outstanding principal amount of
US$360,000,000 (three-hundred and sixty million US
dollars) plus accrued and unpaid interest, fees and
expenses thereon under the terms of the Luxco Loan
Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Luxco Loan Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the loan agreement dated 26 October&nbsp;2004 among
SCCL as borrower, Luxco and others;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Material Adverse Effect</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any material adverse effect after the date
hereof on the business, assets, financial or trading
condition or results of operations of the Sale Group
taken as a whole, excluding, for this purpose, the
effect of: (i)&nbsp;any change in financial markets; (ii)
any change in commodity markets short of total
market collapse (including without limitation
forecasted and futures prices) (including the gas
and electricity markets in the United Kingdom or the
price of Allowances, CHP LECS, carbon credits, oil
and petroleum products); (iii)&nbsp;any</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">13
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">change in the
cost or availability in the transmission of
electricity or the transportation of fuel; and (iv)
a change in any statute, rule, regulation or policy
of a Competent Authority causing or resulting from a
change in regulations of the energy market in the
United Kingdom, including without limitation a
change in the laws, rules and regulations, whether
national or supranational, applicable to the
allocation of carbon credits, which all cases, if
such effect is capable of remedy, has not been
remedied within 30&nbsp;days of the occurrence of the
event giving rise to such effect or, if later, the
Long Stop Date;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Material Contract</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the BP Agreements, the Electricity Trading
Agreements, the GTMAs and any other arrangement,
understanding, commitment, agreement or contract (i)
involving consideration, expenditure or liabilities
or calling for payments by any party thereto in
excess of &#163;500,000 (five hundred thousand pounds)
in any one (1)&nbsp;year or (ii)&nbsp;in relation to the sale
or purchase of or the grant of any option or similar
arrangement over any asset under which the amount
payable or the value of the asset to which such
arrangement, understanding, commitment, agreement or
exceeds &#163;500,000 (five hundred thousand pounds);</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Mitsubishi</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Mitsubishi Corporation, and all its
Affiliates, and Mitsubishi Heavy Industries and its
Affiliates;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Net Working Capital</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means, in relation to a Sale Group member, the
aggregate of the following line items from the
Completion Balance Sheet (subject to any specific
exclusions noted below, which exclusions shall be
calculated in accordance with the Accounting
Principles) prepared in relation to such Sale Group
member:</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;trade debtors (excluding any amounts receivable
under any policy of insurance), stock, cash in bank
and in hand (excluding the Settlement Works Fund and
amounts payable under the Settlement Agreement)
excluding, in each case, all amounts representing an
Allowance, any deferred income, any prepayments and
any amounts contributed by the Purchaser in
furtherance of the undertaking in clause 10.3; and</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;less the sum of creditors falling due within one
year (excluding any amount which comprises SCCL
Intergroup Debt in relation to such Sale</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">14
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:0px">Group member and deferred income), creditors falling due
after more than one year and provisions for
liabilities and charges,</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">PROVIDED THAT: if the sum of Net Working Capital of
SCCL and the Net Working Capital of UK OpCo exceeds
&#091;*&#093; then SCCL&#146;s Net Working Capital shall be reduced
by an amount equal to the excess (so that the
aggregate Net Working Capital of the Sale Group does
not exceed &#091;*&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>New Warranties</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means those Warranties set out in paragraphs 4.3,
4.4, 4.5, 5.3, 7.1, 8.1.1, 8.1.2, 8.1.3, 8.1.4, 9.1,
10.2(ii), 12.4, 12.5, 12.6, 12.7, 14.6, 14.7, 14.8,
14.9, 14.10, 14.11, 14.12, 14.13, 15.3, 15.5, 15.11,
15.12, 15.14, 15.17, 16.3, 16.4, 16.5, 16.6, 17.3
and 19 (Health and Safety), 20 (Climate Change) and
21 (Facility/Project Specific Warranties) of
Schedule&nbsp;2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>NGC</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means National Grid Company plc, a company
incorporated under the laws of England and Wales
(Registered No.&nbsp;2366977) or any successor thereto in
its role under the agreements regulating the
transmission of electricity in England and Wales;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>NWC Completion Statement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause 4.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>O&#038;M Guarantee</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a guarantee to be provided by a member of the
Purchaser&#146;s Group pursuant to the &#091;*&#093; in a form
acceptable to &#091;*&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Participation Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means an agreement dated 18 July&nbsp;1997 between &#091;*&#093; ,
certain other parties specified therein, and SCCL,
as amended;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>payment account details</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means, in relation to any payment to be made under
or pursuant to this Agreement, the name, account
number, sort code, account location and other
details specified by the payee and necessary to
effect payment to the payee in accordance with this
Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Permitted Encumbrances</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the right of first refusal or any similar
right granted in favour of BP International under
the Participation Agreement or any other right
granted in favour of any member of the BP Group
under a BP</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">15
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement and any lien arising by
operation of law;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Preferred</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in the Luxco
Loan Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Proceedings</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any proceeding, suit or action arising out of
or in connection with this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Promissory Note</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in paragraph
2.14 of Part I of Schedule&nbsp;4;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Project</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the design, development, construction,
financing, commissioning, operation and maintenance
of the Facility and all related and ancillary works
on the Property and shall include any part thereof;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Property</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the combined cycle gas turbine plant site
(formerly part of the Fleet site) at Saltend,
Kingston upon Hull and which is registered in the
name of SCCL at HM Land Registry under title number
YEA30817 and shall include any part thereof and any
building, structure and erection in, on, at or under
it;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchase Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the purchase price payable in respect of the
Shares as determined in accordance with clause 2.3;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser&#146;s Auditors</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means KPMG or such other firm of internationally
recognised accountants nominated by the Purchaser;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser&#146;s Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Purchaser and its Affiliates and &#147;<B>member
of the Purchaser&#146;s Group</B>&#148; shall mean any and all of
the Purchaser and its Affiliates and for the
avoidance of doubt, from and after Completion shall
include each member of the Sale Group;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser&#146;s Solicitors</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Clifford Chance LLP of 10 Upper Bank Street,
London E14 5JJ;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Relevant Period</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the period beginning on 24 August&nbsp;2001 and,
subject to clause 8.2, ending on the date of this
Agreement;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">16
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Relief</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the same meaning ascribed to it in the Tax
Covenant;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Remedial Action</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any works, steps, operations or measures to
prevent, minimise, treat, remedy or contain the
effect or potential effect of any Hazardous
Substances on the Environment; and/or any works,
steps, operations or measures to restore the
Environment to its former state in each case to the
extent required pursuant to any law, statute or
regulation in force at the date of this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Reply Notice</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause
8.10.2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Reporting Accountants</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Seller&#146;s Auditors;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Response Notice</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to such term in clause
8.10.1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Sale Group</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means UK OpCo and SCCL, and a &#147;<B>member of the Sale
Group</B>&#148; or &#147;<B>Sale Group member</B>&#148; means either of them;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>SCCL</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Saltend Cogeneration Company Limited, details
of which are set out in Part B of Schedule&nbsp;1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;SCCL Intergroup Debt&#148;</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the aggregate of the amount owing under the
Luxco Loan, the Promissory Note and all other all
amounts of indebtedness owed by SCCL to the Calpine
Group or any Calpine Group member, in each case
immediately prior to Completion, including any
accrued and unpaid interest, fees and expenses
thereon expressed in pounds. If any amount
comprising an SCCL Intergroup Debt is denominated in
a currency other than pounds, that amount shall be
converted to pounds at the closing mid point pound
spot rate applicable to that non-sterling currency
on the Business Day immediately prior to the
Completion Date as shown in the Financial Times
(London edition), or if the Financial Times (London
edition) is not published on that date, the closing
mid-point pound spot rate applicable to that
non-sterling currency quoted by Barclays Bank plc;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller Guarantor Officer&#146;s</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Officer&#146;s Certificate delivered by or on</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">17
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Certificate</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">behalf of the Seller Guarantor on the date of this Agreement;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller&#146;s Auditors</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means PricewaterhouseCoopers LLP;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Seller&#146;s Solicitors</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Skadden, Arps, Slate, Meagher &#038; Flom (UK)&nbsp;LLP
located at 40 Bank Street, Canary Wharf, London E14
5DS;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Settlement Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the agreement between SCCL and &#091;*&#093; dated 21
October&nbsp;2004;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Settlement Works Fund</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the amount standing to the credit of the JSS
Account (as that term is defined in the Supplemental
Agreement) from time to time;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Shares</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the entire issued share capital of each of UK
OpCo and SCCL, as described in Parts A and B,
respectively, of Schedule&nbsp;1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Share Purchase Documents</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means this Agreement, the Tax Covenant, the
Disclosure Letter, the Completion Documents and any
other documents referred to in this Agreement to be
entered into in connection with the consummation of
the transactions contemplated hereby;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Site Interface Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the site interface agreement made between SCCL
and &#091;*&#093; dated 18 July&nbsp;1997, as amended;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>SPA</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the steam purchase agreement between SCCL and
&#091;*&#093; , as amended;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Supplemental Agreement</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the supplemental agreement between &#091;*&#093; and
SCCL dated 21 October&nbsp;2004;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Supplemental Letter</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the supplemental letter agreement in the
Agreed Form;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax&#148; or </B>"<B>Taxation</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to it in the Tax Covenant;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">18
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Authority</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to it in the Tax Covenant;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a Tax Warranty Claim or a Claim under the Tax
Covenant;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Covenant</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Tax Covenant by the Seller (and the
Guarantor) in favour of the Purchaser in the Agreed
Form to be executed by the Purchaser and the Seller
and delivered at Completion;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Liability</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">has the meaning ascribed to it in the Tax Covenant;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Warranties</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Warranties set out in paragraph 15 of
Schedule&nbsp;2;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Tax Warranty Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a Claim under a Tax Warranty;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>TCGA 1992</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Taxation of Chargeable Gains Act 1992;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Trade Marks</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any trade marks, service marks, trade names or
internet domain names, in each case whether
registered or unregistered, and including any
applications for the grant or renewal of any such
rights and all rights or forms of protection having
equivalent or similar effect anywhere in the world
owned or used by the Seller or any member of the
Calpine Group;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>UK OpCo</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Calpine UK Operations Limited, details of
which are set out in Part A of Schedule&nbsp;1;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Unadjusted SCCL Purchase
Price </B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means &#091;*&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Unadjusted UK OpCo
Purchase Price</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means &#091;*&#093;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Unit</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a module of the CCGT, including a gas turbine,
steam turbine, electric generator, heat recovery
steam generator and all directly related
auxiliaries;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">19
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>VAT</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means Value Added Tax for the purposes of VATA;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>VATA</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Value Added Tax Act 1994;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Warranties</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the warranties set out in clause 8.6 and
Schedule&nbsp;2 and &#147;<B>Warranty</B>&#148; shall be construed
accordingly;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Warranted Replies</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the replies given by or on behalf of the
Seller in response due diligence questions raised by
the Purchaser numbered D44, D124, D129, D133, D134,
D148, D149, D181, D167, D238, D269, D274, D279,
D286, D287, D290, D299, D300 and D334 in Appendix&nbsp;1
of the Disclosure Letter;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Waste</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means waste as defined in Environmental Laws
including any substance, material, effluent or
article constituting controlled waste, directive
waste, special waste, hazardous waste, or refuse in
each case as defined therein; and</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Working Hours</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means 9.30 a.m. to 5.00 p.m. on a Business Day.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Agreement, unless otherwise specified:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to clauses, sub-clauses, paragraphs,
sub-paragraphs, Schedules, and the Recitals are to clauses, sub-clauses,
paragraphs, sub-paragraphs and the Recitals of, and the Schedules to this
Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a reference to any statute or statutory provision shall be
construed as a reference to the same as it may have been, or may from time to
time be, amended, modified or re-enacted except to the extent that any
amendment or modification made or coming into effect of any statute or
statutory provision after the date of this Agreement would increase or alter
the liability of the Seller under this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>headings to clauses and Schedules are for convenience only
and do not affect the interpretation of this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Schedules and any attachments form part of this
Agreement and shall have the same force and effect as if expressly set out in
the body of this Agreement, and any reference to this Agreement shall include
the Schedules;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to this Agreement, or to any other document, or
to any specified provision of this Agreement, or any other document, are to
this Agreement, that document or provision as in force for the time being, as
amended, modified, supplemented, varied, assigned or novated, from time to
time;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">20
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to a &#147;<B>company</B>&#148; shall be construed so as to
include any company, corporation or other body corporate, wherever and
however incorporated or established;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to a &#147;<B>person</B>&#148; shall be construed so as to
include any individual, firm, company, government, state or agency of a state
or any joint venture, association or partnership (whether or not having
separate legal personality), its successors and assigns;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>words importing the singular include the plural and vice
versa, words importing a gender include every gender;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to a &#147;<B>party</B>&#148; or &#147;<B>parties</B>&#148; means a party or the
parties to this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to &#147;<B>indemnify</B>&#148; and &#147;<B>indemnifying</B>&#148; any person against any
circumstance include indemnifying and keeping that person harmless from all
actions, claims and proceedings from time to time made against that person
and all loss or damage and all payments, costs or expenses made or incurred
by that person as a consequence of or which would not have arisen but for
that circumstance;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to writing shall include any modes of reproducing words in a
legible and non-transitory form;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to &#147;<B>pounds</B>&#148; or to &#147;<B>&#163;</B>&#148; shall be construed as references to the
lawful currency for the time being of England and Wales;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>references to times of the day are to London time;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>general words shall not be given a restrictive interpretation by reason of
their being preceded or followed by words indicating a particular class of
acts, matters or things;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where any statement is qualified by the statement &#147;<B>so far as the Seller is
aware</B>&#148; or &#147;<B>to the Seller&#146;s knowledge</B>&#148; or any similar expression or otherwise
refers to the knowledge or awareness of the Seller, that statement shall be
deemed to be made only on the basis of the actual knowledge of any of Zamir
Rauf, Tayeb Tahir, Richard Hinks, Neil Cranswick and Vanessa Bustall having
made reasonable enquiry; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.2.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where any statement is qualified by the expression &#147;<B>the Purchaser&#146;s actual
knowledge</B>&#148; or &#147;<B>so far as the Purchaser is aware</B>&#148; or any similar expression or
otherwise that refers to the knowledge or awareness of the Purchaser, that
statement shall be deemed to be made only on the basis of the actual
knowledge of any of Sean Neely, Christopher Trower, Paul Evans, Mark
Craddock, Ken Oakley, Takashi Umezu, Owen Bannister and Grant Gillon, each of
whom shall be deemed to be aware of the content of any written report in
relation to the Sale Group provided by any Purchaser Party&#146;s professional
advisers and consultants (including legal, financial, environmental and
accounting advisers and consultants) specifically in connection with the
Purchaser&#146;s due diligence investigation of and into SCCL, UK OpCo, the
Business, and the transactions the subject of the Share Purchase Documents
but for this</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">21
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>purpose such reports will not include (irrespective of any term of such
report) any documents referred to therein save to the extent (i)&nbsp;the
document is attached to such report; or (ii)&nbsp;the content of such
document is repeated verbatim in such report, but without imputing to
any such person the knowledge of any other person).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where any indemnity contained in this Agreement is expressed to be on an after-tax basis,
then in calculating the liability of the indemnifying party, there shall be taken into account
having regard to the time value of money:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount by which any liability to Taxation of the party
to be indemnified (or any member of the Group of which that party is a
member) is actually reduced or extinguished as a result of the matter giving
rise to the indemnity claim; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the amount by which any liability to Taxation of the party
to be indemnified (or any member of the Group of which that party is a
member) is actually increased as a result of the payment by the indemnifying
party in respect of the matter giving rise to the indemnity claim.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SALE AND PURCHASE</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At Completion the Seller shall sell and the Purchaser shall purchase the Shares and each
right attaching to the Shares at or after the date of this Agreement, including without
limitation the right to receive all dividends, distributions or any return of capital paid or
made on or after the date of this Agreement, with full title guarantee and free from
Encumbrances.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Title to, beneficial ownership of, and any risk attaching to the Shares shall pass on
Completion. Following Completion, the Purchaser shall be entitled to exercise all rights
attached or accruing to the Shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchase Price shall be the sum of the purchase price attributable to the SCCL shares to
be acquired pursuant to this Agreement as determined in accordance with clause 2.3.1 and the
purchase price attributable to the UK OpCo shares to be acquired pursuant to this Agreement as
determined in accordance with clause 2.3.2.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That part of the Purchase Price attributable to the SCCL shares to be acquired pursuant to this Agreement is equal to the Unadjusted
SCCL Purchase Price less an amount equal to the SCCL Intergroup Debt:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>plus the amount by which SCCL&#146;s Net Working Capital
exceeds zero; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>less the amount by which SCCL&#146;s Net Working Capital is
less than zero.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That part of the Purchase Price attributable to the UK
OpCo shares to be acquired pursuant to this Agreement is equal to the
Unadjusted UK OpCo Purchase Price less any indebtedness owed by UK OpCo to
the Calpine Group or any Calpine Group member, excluding in each case SCCL,
at or immediately prior to Completion, including any interest which has
accrued thereon and:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>plus the amount by which UK OpCo&#146;s Net Working Capital
exceeds zero; or</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">22
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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>less the amount by which UK OpCo&#146;s Net Working Capital is
less than zero.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The provisions of clause 7 shall apply in respect of the preparation of the Completion
Balance Sheets and the agreement or determination of the Purchase Price.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller waives all rights of pre-emption and other restrictions on transfer over the
Shares conferred on it.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDITIONS PRECEDENT</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Completion is conditional upon the satisfaction (or waiver in accordance with clause 3.8) of
the following conditions precedent on or before the Long Stop Date:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the BP Approval having been received in a form
satisfactory to the Seller and the Purchaser;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>BP International confirming in a form satisfactory to the
Seller and the Purchaser that BP International will not exercise its right of
first refusal under and in accordance with the terms of the Participation
Agreement, or expiry of the term during which BP International may exercise
its right of first refusal without BP International having exercised any such
right in accordance with the terms of the Participation Agreement, whichever
is the earlier to occur or, if BP International exercises its right to make a
lump sum cash offer under clause 4.2.3 of the Participation Agreement, the
Seller having determined that such offer is not of equivalent value to that
comprising the sale of the Shares pursuant to this Agreement and the
transactions contemplated hereby;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the European Commission issuing a decision under Article
6(1)(b) of Council Regulation (EC)&nbsp;139/2004 (the &#147;<B>Regulation</B>&#148;), or being
deemed to have done so under Article&nbsp;10(6) of the Regulation, declaring the
acquisition of the Shares by the Purchaser pursuant to this Agreement (the
&#147;<B>Transaction</B>&#148;) compatible with the Common Market without attaching to its
decision any conditions or obligations and in the event that a request under
Article&nbsp;9(2) of the Regulation has been made by a Member State, the European
Commission indicating that it has decided not to refer the Transaction (or
any part thereof) or any matter arising therefrom to a competent authority of
a Member State in accordance with Article&nbsp;9(1) of the Regulation (the
&#147;<B>Anti-Trust Condition</B>&#148;);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the banks and financial institutions which are to be party
to the Facility Agreement and the relevant members of the BP Group having
agreed upon a form of direct agreement which is to become effective upon
Completion on terms reasonably satisfactory to the Purchaser;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Reporting Accountants confirming in writing in a form
satisfactory to the Seller and the Purchaser that they are not aware of any
fact matter or circumstance as at the date of such confirmation that would
prevent them from issuing the Accountants Report at Completion, such
confirmation to be accompanied by a draft of the Accountants Report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller being satisfied in its sole and absolute
discretion that the BP Director is likely to execute the statutory
declaration and to vote in favour</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the resolution(s) each referred to in paragraph 1 of Part&nbsp;II of Schedule&nbsp;4; and</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.1.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller having provided the Purchaser with the Audited Accounts.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall promptly give notice to the Purchaser of the satisfaction of the Condition
Precedent set out in clause 3.1.6.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller hereby undertakes to use reasonable efforts to ensure satisfaction of the
Condition Precedents in clauses 3.1.1, 3.1.2, 3.1.5 and 3.1.7 on or before the Long Stop Date.
The Seller undertakes to keep the Purchaser informed as to progress towards satisfaction of
the Conditions Precedent in clauses 3.1.1 and 3.1.2 (the &#147;<B>BP Conditions</B>&#148;) and undertakes to:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclose in writing to the Purchaser immediately upon
becoming aware of anything which may prevent one or both of the BP Conditions
from being satisfied;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify the Purchaser and (subject to law and any
confidentiality obligations binding upon the Seller) provide copies of any
communications from or on behalf of any BP Group member in relation to the
satisfaction of the BP Conditions or either of them;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide the Purchaser (or advisers nominated by the
Purchaser) with draft copies of all submissions to and communications with
any BP Group member in relation to the satisfaction of the BP Conditions or
either of them. Provided that it is reasonably practicable for it to do so,
the Seller shall provide such copies at such time as will allow the Purchaser
a reasonable opportunity to provide comments on such submissions or
communications before they are submitted or sent and provide the Purchaser
(or such nominated advisers) with copies of all such submissions or
communications in the form submitted or sent;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where requested by the Purchaser and where agreed to by
the relevant BP Group member, allow persons nominated by the Purchaser to
attend all meetings in relation to satisfaction of the BP Conditions or
either of them with any BP Group member and, where applicable, to make oral
submissions at such meetings; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify the Purchaser within 2 Business Days of a BP
Condition being satisfied.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3A</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to its obligations under Schedule&nbsp;5, other than an arrangement,
understanding, commitment, agreement or contract:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3A.1 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>between SCCL and any BP Group member entered into in the ordinary course of the
Business on arm&#146;s length terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3A.2 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with any BP Group member to which neither Sale Group member is a party and which
imposes no obligation or liability (contingent or otherwise) upon either of them; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.3A.3 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>required under or contemplated by the Participation Agreement,</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">24
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller shall not enter into (and shall procure that neither Sale Group member enters
into) any arrangement, understanding, commitment, agreement or contract with any BP Group
member and shall not (and shall procure that neither Sale Group member shall) agree to any
amendment to any of the BP Agreements, in each case without the prior written consent of the
Purchaser.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser hereby undertakes to use reasonable efforts to ensure the satisfaction of the
Anti-Trust Condition and the Conditions Precedent set out in clauses 3.1.4 and 3.1.5 (the
&#147;<B>Purchaser Conditions</B>&#148;) on or before the Long Stop Date. The Purchaser Conditions are given
in favour of the Purchaser and, at any time before the Long Stop Date the Purchaser may, by
notice in writing to the Seller, waive a Purchaser Condition on any terms the Purchaser may
decide. The Purchaser undertakes to keep the Seller informed as to progress towards
satisfaction of the Anti-Trust Condition and the Purchaser Conditions and undertakes to:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclose in writing to the Seller immediately upon
becoming aware of anything which may prevent the Anti-Trust Condition or the
Purchaser Condition from being satisfied;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify the Seller and (subject to law and any
confidentiality obligations binding upon the Purchaser) provide copies of any
communications from any governmental or regulatory body in relation to
satisfaction of the Anti-Trust Condition or from BP in relation to the
satisfaction of the Purchaser Conditions where such communications have not
been independently or simultaneously supplied to the Seller;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide the Seller (or advisers nominated by the Seller)
with draft copies of all submissions and communications to governmental or
regulatory bodies in relation to satisfaction of the Anti-Trust Condition or
any submissions or communications to any BP Group member in relation to the
satisfaction of the Purchaser Condition or either of them. The Purchaser
shall provide such copies at such time as will allow the Seller a reasonable
opportunity to provide comments on such submissions and communications before
they are submitted or sent and provide the Seller (or such nominated
advisers) with copies of all such submissions and communications in the form
submitted or sent; provided, however that if the Seller does not provide its
comments within the time frame required for the making of such communications
or submissions, the Purchaser may nonetheless make such communications or
submissions;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where requested by the Seller and where permitted by the
governmental or regulatory body, allow persons nominated by the Seller to
attend all meetings in relation to satisfaction of the Anti-Trust Condition
(if any) with such governmental or regulatory bodies and, where appropriate,
to make oral submissions at such meetings;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>where requested by the Seller and where agreed to by the
relevant BP Group member, allow persons nominated by the Seller to attend all
meetings in relation to the satisfaction of the Purchaser Condition with any
BP Group member and, where applicable, to make oral submissions at such
meetings; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.4.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify the Seller within 2 Business Days of such condition
being satisfied.</TD>
</TR>

</TABLE>


<P>
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</TABLE>

<P align="center" style="font-size: 10pt">25
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Seller and the Purchaser agrees that it shall, upon a request from the other,
promptly co-operate with and provide all necessary information reasonably required by the
other party or by BP International or by any Competent Authority in respect of all requests
and enquiries in connection with this Agreement and the arrangements relating thereto
(including, without limitation, in relation to the satisfaction of any or all of the
Conditions Precedent) from BP International and/or any such Competent Authority.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser may terminate this Agreement by notice in writing to the Seller if, at any time
after the date of this Agreement and prior to Completion:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any event occurs which has a Material Adverse Effect; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser becomes aware of any fact or circumstance
which would entitle it to make a Claim against a Warrantor for a breach of a
Warranty given pursuant to clause 8.1 or which would, were Completion to
occur, entitle it to make a Claim against a Warrantor pursuant to clause 8.2,
where such breach gives or would give rise to a Material Adverse Effect,
determined for this purpose only on the basis of the difference between (1)
the business, assets, financial or trading condition or results of operations
of the Sale Group taken as a whole as they would have been had the relevant
Warranty been true and correct and (2)&nbsp;the actual position of the Sale Group
in these same respects (for the avoidance of doubt having regard to the fact
or circumstance which entitles or which would entitle the Purchaser to make a
Claim against a Warrantor for a breach of clause 8.1 or clause 8.2 (as the
case may be)).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall promptly notify the Purchaser (providing reasonable details of such fact or
circumstance (but without any obligation to provide quantum)) if it becomes aware of a fact or
circumstance which would or might reasonably entitle the Purchaser to terminate this Agreement
under clause 3.6.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Conditions Precedent in clauses 3.1.4 and 3.1.7 may be waived only by the
Purchaser giving notice to the Seller in writing. The Condition Precedent set out in clause
3.1.6 may be waived only by the Seller giving notice to the Purchaser in writing. Each of the
Conditions Precedent set out in clauses 3.1.1 through 3.1.3 (inclusive)&nbsp;and 3.1.5 may be
waived only by the Purchaser and the Seller each giving notice to the other in writing.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONSIDERATION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>On or before the fifth (5th) Business Day prior to the date scheduled for Completion in
accordance with clause 6.1, the Seller shall prepare and deliver to the Purchaser a statement
(the &#147;<B>NWC Completion Statement</B>&#148;) setting out the projected Net Working Capital for each of
SCCL and UK OpCo as at Completion (the sum of such amounts the &#147;<B>Aggregate Projected NWC</B>&#148;) and
specifying the Seller&#146;s estimate of the value of the SCCL Intergroup Debt at Completion
expressed in pounds (the &#147;<B>Estimated SCCL Intergroup Debt</B>&#148;) and the relevant member(s) of the
Calpine Group to which such amounts are due. For the purposes of determining the Estimated
SCCL Intergroup Debt, if any amount comprising an SCCL Intergroup Debt is denominated in a
currency other than pounds, that amount shall be converted to pounds at the closing mid-point
pound spot rate applicable to that non-sterling currency on the date on which the NWC
Completion Statement is prepared and delivered in accordance with this clause 4.1 as shown in
the Financial Times (London edition), or if the Financial Times (London edition) is not
published on that date, the closing mid-point pound spot rate applicable to that non-sterling
currency quoted by Barclays Bank plc. The NWC Completion Statement shall be determined and
prepared by the Seller in good faith.</TD>
</TR>

</TABLE>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At Completion and subject to clause 6, the Purchaser shall pay the Seller (on account of the
Purchase Price) the Aggregate Unadjusted Purchase Price less the Estimated SCCL Intergroup
Debt and:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Aggregate Projected NWC is a positive amount in
excess of zero, plus the lesser of (i)&nbsp;such excess and (ii) &#091;*&#093; ; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Aggregate Projected NWC is less than zero, less the
amount (expressed as a positive number) equal to the deficit.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount payable at Completion as calculated under this clause 4 (the &#147;<B>Completion Amount</B>&#148;)
is payable by the Purchaser to the Seller on Completion in accordance with clauses 6.3 and
6.4.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any payment is made by the Seller to the Purchaser in respect of any Claim the Purchase
Price shall be deemed to have been reduced by the amount of such payment but in no event shall
the Purchase Price be deemed to be reduced below &#163;10.00 by virtue of the operation of this
clause 4.3.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Wherever in this Agreement provision is made for the payment by one party to another (or by
or to SCCL), such payment shall be effected by crediting for same day value in immediately
available funds to the account specified in the payment account details of the party entitled
to the payment (or to SCCL, as the case may be) by way of wire transfer to such account or
accounts as shall have been notified by the party entitled to the payment (or, in the case of
a payment required to be made to SCCL after Completion, by the Purchaser) at least three (3)
Business Days before the due date for payment.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDUCT OF BUSINESS BEFORE COMPLETION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to clause 5.2, the Seller shall procure that between the date of this Agreement and
Completion:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL and UK OpCo shall, unless it has obtained the prior
consent of the Purchaser to do otherwise (such consent not to be unreasonably
withheld or delayed), comply with Part&nbsp;I of Schedule&nbsp;5;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the extent applicable thereto, (i)&nbsp;no member of the
Sale Group knowingly or intentionally acts or omits to act where such act or
omission would result in its being in material breach of any BP Agreement and
(ii)&nbsp;each member of the Sale Group uses its reasonable endeavours to comply
with its respective obligations under each of the BP Agreements to which it
is a party.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clause 5.1 shall not operate so as to restrict or prevent:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the entering into of any contract or commitment in the
ordinary course of business and consistent with the relevant Sale Group
member&#146;s usual practices, which contract or commitment is terminable in
accordance with its terms by written notice of six months or less and which
is not material in relation to the Sale Group;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any matter reasonably undertaken by any member of the Sale
Group in an emergency or disaster situation with the intention of minimising
any</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">27
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>adverse effect thereof (and of which the Purchaser will be promptly
notified);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the completion or performance of any obligations
undertaken pursuant to any contract or arrangement entered into by any member
of the Sale Group prior to the date of this Agreement provided such contract
or arrangement has been disclosed to the Purchaser in the Data Room, or if
the Seller is aware that such contract or arrangement is not so disclosed,
such contract or arrangement is brought to the attention of the Purchaser
and, where practicable, the Seller consults with the Purchaser in respect of
the obligations to be performed pursuant to such contract or arrangement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the payment of any principal, interest and other amounts
due and payable by SCCL in accordance with the terms of the Luxco Loan
Agreement, this Agreement or as required or contemplated by any contractual
loan or financing arrangement to which SCCL or any of SCCL&#146;s Affiliates is a
party, in each case without prejudice to the Warranty set out in paragraph
5.6 of Schedule&nbsp;2;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any matter required to be undertaken to comply with this
Agreement; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any matter undertaken at the written request of the
Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall use its reasonable efforts to provide, and shall procure that the Sale Group
members provide, the Purchaser and the Purchaser&#146;s Auditors with such information concerning
each of the Sale Group members as the Purchaser and the Purchaser&#146;s Auditors shall reasonably
require and allow the Purchaser and the Purchaser&#146;s Auditors, and shall procure that each Sale
Group members allows the Purchaser and the Purchaser&#146;s Auditors, reasonable access during
business hours (and upon reasonable notice) to each member of the Sale Group and its books and
records, its employees and advisers, except for work product of, or privileged communications
with, legal counsel, in each case insofar as is reasonably required for the analysis and
verification of the net asset position of each of the Sale Group members; provided that access
pursuant to this clause 5.3 and the exercise by the Purchaser of its rights under this clause
5.3 shall not interfere with the Seller&#146;s or any member of the Sale Group&#146;s Business
operations or breach the terms of any confidentiality undertakings binding upon it.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As soon as reasonably practicable after the date on which it gives the NWC Completion
Statement, the Seller will deliver a copy of the Supplemental Letter (duly executed by or on
behalf of each of the Seller Parties) to the Purchaser.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMPLETION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Completion shall take place at the offices of the Seller&#146;s Solicitors at 40 Bank Street,
Canary Wharf, London E14 5DS:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on the nineteenth (19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP>) day after the day on
which the last of the Conditions Precedent is satisfied, or, if such day is
not a Business Day, the next Business Day; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such earlier date notified by the Seller to the Purchaser
as being the date on which the Luxco Loan and all amounts thereunder fall due
for repayment or prepayment as a result of the redemption of the Preferred,</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">28
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided however that such date shall not be less than six (6)&nbsp;Business
Days after the last of the Conditions Precedent are satisfied.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1A </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1A.1 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller gives (or is deemed to give) a notice to the Purchaser under clause 8.9
on a date less than 4 Business Days prior to the date for Completion as determined in
accordance with clause 6.1; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1A.2 </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such notice does not contain a statement from the Seller indicating that the Seller
wishes to disapply the provisions of clause 8.10, then the Completion Date determined
under clause 6.1 shall be postponed to the first Business Day after the date on which
Calpine gives (or is deemed to give) a Reply Notice in respect of the facts or
circumstances described in the Seller&#146;s notice referred to in clause 6.1A.1.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.1B </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At Completion, all and not part only of the transactions contemplated by this
Agreement to take place at Completion shall occur and such transactions shall be deemed
to occur simultaneously.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the terms and conditions hereof (including for the avoidance of doubt, compliance
by the Purchaser with its obligations in clause 6.3), at Completion the Seller shall do those
things required of it in Part&nbsp;I of Schedule&nbsp;4 (Completion Arrangements) with any amendments as
may be agreed between the Purchaser and the Seller prior to Completion. The Purchaser may
waive the delivery by the Seller of any document required under Part&nbsp;I of Schedule&nbsp;4 for the
purposes of proceeding with Completion, but without prejudice to its rights in respect of the
failure by the Seller to deliver the same in accordance with this clause 6.2.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the terms and conditions hereof (including, for the avoidance of doubt, compliance
by the Seller with its obligations under clause 6.2), at Completion the Purchaser shall:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>do those things required of it in Part&nbsp;II of Schedule&nbsp;4
(save to the extent that anything required of the Purchaser in Part&nbsp;II of
Schedule&nbsp;4 requires the BP Director to execute or deliver any document or to
approve any resolution, it being acknowledged that the Purchaser cannot
procure that the BP Director take any action) with any adjustments or
amendments as may be agreed by the Seller and the Purchaser prior to
Completion. The Seller may waive the delivery by the Purchaser of any
document referred to in Part&nbsp;II of Schedule&nbsp;4 for the purposes of proceeding
with Completion, but without prejudice to its rights in respect of the
failure by the Purchaser to deliver the same in accordance with this clause
6.3;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pay the Completion Amount to the Seller on account of the
Purchase Price less an amount equal to &#091;*&#093; which amount shall be paid to
the Escrow Account with the Escrow Agent; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>procure that SCCL pays to the Seller or to its order and
to such accounts as it may direct, an amount equal to the Estimated SCCL
Intergroup Debt.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any payments required to be made under this clause 6.3 will be made in accordance with
clause 4.4.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller is not obliged to complete this Agreement unless the Purchaser complies with all
its obligations under clause 6.3. The Purchaser is not obliged to complete this Agreement
unless:</TD>
</TR>

</TABLE>


<P>
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</TABLE>

<P align="center" style="font-size: 10pt">29
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<DIV style="font-family: 'Times New Roman',Times,serif">


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</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller complies with all its obligations under clause
6.2; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the sale of all the Shares is completed simultaneously.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a party (the &#147;<B>Defaulting Party</B>&#148;) fails to comply with its obligations at Completion under
this clause 6 then the Seller (if the Purchaser is the Defaulting Party) or the Purchaser (if
the Seller is the Defaulting Party) may, by notice in writing to all other parties (i)
postpone Completion by not less than 2 Business Days (to a date no later than &#091;*&#093; ); or (ii)
terminate this Agreement forthwith.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Seller nor the Purchaser is obliged to complete this Agreement if:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the BP Director fails to deliver at Completion a duly
executed statutory declaration referred to in Part&nbsp;II of Schedule&nbsp;4 and
approve those resolutions set out in paragraph 1 of Part&nbsp;II of Schedule&nbsp;4;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>immediately prior to the implementation of the
transactions referred to in paragraph 3 of Part&nbsp;II of Schedule&nbsp;4, SCCL does
not have net assets; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Reporting Accountants fail to deliver the Accountants
Report at Completion,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PROVIDED that clause 6.6.1 shall not operate if the BP Director resigns from the board of
directors of SCCL and is not replaced prior to Completion unless the Purchaser provides to
the Seller no later than 10 Business Days after being given notice of such resignation a
certificate indicating that it has received notice from the finance parties under the
Facility Agreement confirming that such financing parties are of the view, having sought the
advice of a Queens Counsel, that the Financial Assistance Procedure intended to be carried
out at Completion, as set out in Part&nbsp;II of Schedule&nbsp;4, will be adversely affected by the
resignation of the BP Director and that consequently the related condition precedent in the
Facility Agreement is not satisfied (and the Purchaser shall provide to the Seller a copy of
any opinion or memorandum from the leading counsel in the possession or control of the
Purchaser that was obtained by such finance parties in respect of the resignation of the BP
Director from the board of directors of SCCL). If Completion fails to take place as a
result of any of the circumstances referred to in this clause 6.6 then (subject to clause
17.2) Completion will automatically be postponed to the day 5 Business Days after the date
on which Completion was (but for this sentence) otherwise due to occur and that Business Day
will be the Completion Date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that Completion does not take place and the appointments and resignations
referred to in paragraph 1 of Part&nbsp;I of Schedule&nbsp;4 are effective, then the Purchaser shall
(to the extent that it is in its power to do so) procure that a meeting of the directors of
each of UK OpCo and SCCL are immediately held at which resolutions are passed (i)&nbsp;approving
the re-appointment of each of the directors who so resigned and (ii)&nbsp;accepting the
resignation of each of the directors so appointed. The Purchaser shall procure that each of
the directors resigning pursuant to this clause 6.7 delivers to the board of directors of UK
OpCo or SCCL (as the case may be) a duly executed resignation letter in the Agreed Form. The
Purchaser hereby indemnifies the Seller Parties for any and all actions undertaken by the
directors appointed pursuant to paragraph 1 of Part&nbsp;I of Schedule&nbsp;4 prior to their resignation
in accordance with this clause 6.7.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Purchaser agree that such amounts standing to the credit of the Escrow
Account shall only be applied in accordance with the provisions of the Escrow Agreement.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">30
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COMPLETION ACCOUNTS</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall procure that as soon as possible, and in any event within 60 calendar
days of the Completion Date a draft Completion Balance Sheet (having the same line items as
the balance sheet contained in the Accounts for the Sale Group member to which such draft
Completion Balance Sheet relates and by way of example only, an illustrative calculation is
set out in Appendix&nbsp;I) in respect of each of SCCL and UK OpCo (such Completion Balance Sheets
together the &#147;<B>Draft Completion Balance Sheets</B>&#148;) are prepared and delivered to the Seller.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Draft Completion Balance Sheet shall include a draft statement of Net Working Capital
for the company to which such Completion Balance Sheet relates. The Draft Completion
Balance Sheet for SCCL shall specify the Purchaser&#146;s calculation of the SCCL Intergroup
Debt. The Purchaser shall prepare the Draft Completion Balance Sheets in accordance with
the Accounting Principles.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and the Seller&#146;s Auditors shall be entitled to review the Draft Completion Balance
Sheets for a period of 60 calendar days following receipt from the Purchaser.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall provide the Seller and the Seller&#146;s Auditors with such information as the
Seller and the Seller&#146;s Auditors shall reasonably require or shall procure that such
information is provided to the Seller and the Seller&#146;s Auditors and allow the Seller and the
Seller&#146;s Auditors access to each member of the Sale Group and its books and records, its
employees and advisers (at reasonable times and upon reasonable notice and subject to the
Seller agreeing in favour of the Purchaser to keep all confidential information disclosed to
it in accordance with this clause 7.3 confidential on the terms as set out in clause 21), and
shall use its reasonable efforts to procure access to the Purchaser&#146;s Auditors (if retained)
and their working papers (or, if the Purchaser&#146;s Auditors are not retained for the purposes of
preparing the draft Completion Balance Sheet, the Purchaser&#146;s own working papers or
equivalent) in each case insofar as is reasonably required for the analysis and verification
of the Draft Completion Balance Sheets (including the draft statements of Net Working Capital
contained therein).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At or before the end of the period of 60 calendar days referred to in clause 7.2, the Seller
shall either:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>notify the Purchaser that it accepts each Draft Completion
Balance Sheet in its entirety, in which case the Draft Completion Balance
Sheets shall constitute the Completion Balance Sheets (and the amount of the
Net Working Capital shall be the amount set out in the draft Net Working
Capital statements contained therein) and such Draft Completion Balance
Sheets shall be final and binding on the Seller and the Purchaser; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>deliver to the Purchaser written notice of those items
and, where practicable, the amount in each Draft Completion Balance Sheet or
draft statement of Net Working Capital, as appropriate, which it disputes, in
which case only those items or amounts identified by the Seller (the
&#147;<B>Disputed Items</B>&#148;) shall be in dispute and shall be agreed or determined in
accordance with clause 7.5.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Seller delivers a notice under clause 7.4.2 then the Seller and the Purchaser shall
use their respective reasonable endeavours to agree the Disputed Items within 30 calendar
days, or such longer period as may be agreed between them. Any Disputed Items agreed between
the Seller and the Purchaser within that 30 calendar day period shall be reflected in</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">31
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>amendments to the Draft Completion Balance Sheets. At the end of that 30 calendar day
period, those Disputed Items which have not been agreed between the Seller and the Purchaser
(if any) (&#147;<B>Unresolved Disputed Items</B>&#148;) shall be referred for final binding determination to
such firm of independent accountants of international standing (the &#147;<B>Expert</B>&#148;) as the Seller
and the Purchaser may agree or, in the absence of agreement within 10 Business Days
following the expiry of such 30&nbsp;day period, or longer period as agreed between the Seller
and the Purchaser, as may be selected at the request of either the Seller or the Purchaser
by the President of the Institute of Chartered Accountants in England and Wales, with
instructions that the Expert render his decision on the Unresolved Disputed Items (and any
matters specifically relating thereto) and notify it to the Seller and the Purchaser within
30&nbsp;days of the Expert accepting such referral. In each case, the Expert so selected (either
by agreement between the Seller and the Purchaser or otherwise in accordance with this
clause 7.5) shall act as expert and not as arbitrator and the Unresolved Disputed Items in a
Draft Completion Balance Sheet will be determined by the Expert in accordance with the
Accounting Principles and such adjustments as are required to be made as a result of the
Expert&#146;s determination of such Unresolved Disputed Items shall be made to the Draft
Completion Balance Sheet in which such Unresolved Disputed Items appear or to which such
Unresolved Disputed Items relate which shall then constitute the Completion Balance Sheet
(and the amount of the Net Working Capital shall be the amount set out in the statement of
Net Working Capital as so adjusted) which shall be final and binding on the Seller and the
Purchaser. Each of the Seller and the Purchaser shall respectively provide or procure the
provision to the Expert of all such information as the Expert shall reasonably require
including from their respective Auditors and, in the case of the Purchaser, such business
records and accounts of the Sale Group in the possession, custody or control of the
Purchaser which the Expert shall in its discretion consider necessary. The decision of the
Expert shall, in the absence of fraud or manifest error, be final and binding on the
Purchaser and the Seller. The Seller and/or the Purchaser shall pay the costs of the Expert
as the Expert may direct failing which such costs shall be borne equally by the Seller and
the Purchaser.</TD>
</TR>

<TR>
    <TD colspan="3">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within 7 Business Days of the agreement or final determination of the Completion Balance
Sheets (and the Net Working Capital statements contained therein) as set out in this clause 7:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the sum of the Net Working Capital of SCCL and the Net
Working Capital of UK OpCo (the &#147;<B>Aggregate Actual NWC</B>&#148;) is greater than the
Aggregate Projected NWC, the Purchaser shall pay to the Seller an amount
equal to the excess, PROVIDED THAT the maximum amount payable under this
clause 7.6.1 shall not, when added to the amount by which the Completion
Amount is increased under clause 4.2.1 (if any), exceed &#091;*&#093; );</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Aggregate Projected NWC is greater than the
Aggregate Actual NWC, the Seller shall pay to the Purchaser an amount equal
to the excess;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the SCCL Intergroup Debt shown in the Completion
Balance Sheets is less than the amount of the Estimated SCCL Intergroup Debt,
then (a)&nbsp;the Seller shall pay (or procure that a Calpine Group member pays)
to SCCL an amount equal to the deficit and (b)&nbsp;subject to and conditional
upon the Seller&#146;s compliance with sub-clause (a)&nbsp;of this clause 7.6.3, the
Purchaser shall pay the Seller an amount equal to the deficit; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the SCCL Intergroup Debt shown in the SCCL Completion
Balance Sheet is in excess of the amount of the Estimated SCCL Intergroup
Debt, then (a)&nbsp;the Seller shall pay (or procure that a Calpine Group member
pays) the Purchaser an amount equal to the excess and (b)&nbsp;subject to and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">32
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conditional upon the Seller&#146;s compliance with sub-clause (a)&nbsp;of this
clause 7.6.4, the Purchaser shall procure that SCCL pays an amount equal
to the excess to the Seller which amount shall be in full and final
settlement of the SCCL Intergroup Debt and the Seller shall (if
requested to do so by the Purchaser) acknowledge the same in writing to
the Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any payments required to be made under this clause 7.6 will be made in accordance with
clause 4.4.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to recover from the Seller in respect of any Warranty
being breached or being inaccurate or misleading or in respect of any breach of any other
provision of this Agreement (or any other agreement pertaining to this transaction) or in
respect of any indemnity contained in any agreement pertaining to this transaction to the
extent that the amount which the Purchaser seeks to recover from the Seller has been taken
into account in the calculation of Net Working Capital for either SCCL or UK OpCo.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SELLER&#146;S WARRANTIES</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller and Calpine (each a &#147;<B>Warrantor</B>&#148;, together the &#147;<B>Warrantors</B>&#148;) warrant to the
Purchaser in the terms set out in Schedule&nbsp;2 as at the date of this Agreement. The liability
of the Seller and Calpine in relation to the Warranties shall be joint and several.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Immediately prior to Completion, the Warrantors shall be deemed to warrant to the Purchaser
in the terms set out in Schedule&nbsp;2 by reference to the facts and circumstances subsisting
immediately prior to Completion. For the purposes of this clause 8.2 only, (a)&nbsp;where there is
an express or implied reference in a Warranty to the &#147;date of this Agreement&#148;, that reference
is to be construed as a reference to Completion and (b)&nbsp;the Relevant Period shall be deemed to
end at Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser&#146;s rights to make a Claim in respect of the Warranties, and the Warrantors&#146;
liability in respect of any such Claim, shall be limited and/or excluded as set out in
Schedule&nbsp;3, save in relation to fraud.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Warrantors acknowledge that the Purchaser has entered into this Agreement in reliance
upon the Warranties. Each Warranty is separate and independent and shall not be limited by
reference to or inference from any other Warranty, or any other term of this Agreement or any
document referred to in it.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The only Warranties given:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of Intellectual Property are those contained in
paragraph 12 of Schedule&nbsp;2 and, with the exception of the Warranties
contained in paragraphs 7 and 10 of Schedule&nbsp;2, each of the other Warranties
shall be deemed not to be given in relation to Intellectual Property;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of employment matters are those contained in
paragraph 14 of Schedule&nbsp;2 (other than paragraph 14.9 thereof) and, with the
exception of the Warranties contained in paragraphs 7 and 10 of Schedule&nbsp;2,
each of the other Warranties shall be deemed not to be given in relation to
employment matters;</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">33
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of Tax are those contained in paragraph 15 of
Schedule&nbsp;2 and each of the other Warranties shall be deemed not to be given
in relation to Tax;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of matters related to the Environment are those
contained in paragraphs 16 and 20 and to the extent they relate to
environmental matters paragraphs 4.4.1 and 4.5 of Schedule&nbsp;2 and each of the
other Warranties shall be deemed not to be given in relation to any matter
relating to the Environment;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of the Property are those contained in
paragraph 17 of Schedule&nbsp;2 and each of the other Warranties shall be deemed
not to be given in relation to the Property, with the exception of the
Warranties contained in paragraph 7 of Schedule&nbsp;2 insofar as such Warranties
relate to Property, excluding fixtures;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of the dispersion of salt from the Facility&#146;s
cooling towers into the Environment is that contained in paragraph 21.11 of
Schedule&nbsp;2 and each of the other Warranties shall be deemed not to be given
in relation thereto; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.5.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of occupational health and safety are those
contained in paragraph 19 of Schedule&nbsp;2 and each of the other warranties
shall be deemed not to be given in relation to occupational health and
safety.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of Calpine and the Seller Guarantor warrants to the Purchaser that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has the requisite capacity, power and authority to
enter into and perform its obligations under this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has taken all necessary corporate action required by
its articles of association (or like constitutional documents) to permit it
to enter into and perform its obligations under this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this Agreement constitutes a binding obligation on it in
accordance with its terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the execution and delivery of, and the performance of its
obligations under this Agreement will not:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any provision of its constitutional
or organisational documents; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any order, judgment or decree of
any court or governmental agency to which it is a party or by which it is
bound or any contractual commitment to which it is bound; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in it being or becoming subject to or threatened
by any procedures or steps which are analogous to those contained in
paragraph 18 of Schedule&nbsp;2 in any jurisdiction, including the United States
of America;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is not, in any jurisdiction (including the United
States of America) subject to or threatened by any procedures or steps which
are analogous</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">34
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to those contained in paragraph 18 of Schedule&nbsp;2, nor are any such
procedures or steps pending; and</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.6.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller Guarantor Officer&#146;s Certificate is true and
accurate.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Save as set out in clause 3.6, a breach of Warranty by the Warrantors shall not entitle the
Purchaser to rescind or terminate this Agreement, or any part of it, whether before or after
Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall indemnify the Purchaser, and keep the Purchaser indemnified, on demand
against each Loss which the Purchaser or any Sale Group member incurs arising (directly or
indirectly) out of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; .</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall promptly notify the Purchaser if it becomes aware of a fact or circumstance
(providing reasonable details of such fact or circumstance (but without any obligation to
provide quantum)) which would, if Completion were to occur, give rise to a Claim by the
Purchaser under clause 8.2. Any notice given under clause 3.7 shall be deemed to have also
been given under this clause 8.9.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the Seller provides (or is deemed to provide) a notice to the Purchaser
pursuant to clause 8.9, then (unless the Seller states in such notice that it wishes to
disapply the provisions of this clause 8.10 (such disapplication without prejudice to the
Purchaser&#146;s rights (if any) under this Agreement) in relation to the fact or circumstance
referred to in the Seller&#146;s notice:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser shall within 2 Business Days of delivery of the notice
referred to in clause 8.9, deliver to the Seller a notice (a &#147;<B>Response
Notice</B>&#148;):</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>whether or not the Purchaser believes that, if Completion
were to occur, it would have a Claim against either of the Warrantors;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser&#146;s good faith estimate of the amount of such
Claim (which estimate shall be without prejudice to the Purchaser&#146;s right to
seek to recover some other amount in respect of such Claim); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Purchaser&#146;s good faith estimate of the amount of
such Claim exceeds &#163;125,000 (one hundred and twenty five thousand pounds)
(such Claim being referred to as an &#147;<B>Incipient Claim</B>&#148;), whether or not the
Purchaser waives and forever discharges and releases the Warrantors from
such Incipient Claim,</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:8%; font-size: 10pt">provided that if the Purchaser does not deliver to the Seller a Response Notice
within 2 (two)&nbsp;Business Days in accordance with the terms of this clause 8.10.1,
then the Purchaser shall be deemed not to have waived and forever discharged and
released the Seller from such Incipient Claim; and


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within 2 Business Days of receipt by the Seller of a Response Notice in
respect of an Incipient Claim that is not waived (or deemed not to be waived)
by the Purchaser, Calpine shall deliver to the Purchaser on behalf</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">35
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>of the Warrantors a notice (a &#147;<B>Reply Notice</B>&#148;) stating whether or not the
Seller wishes to terminate this Agreement and, if such notice states
that the Seller wishes to terminate this Agreement, then this Agreement
shall terminate in accordance with clause 17.1 (provided that, for the
avoidance of doubt, if the Seller fails to deliver a Reply Notice within
such 2 Business Day period then it shall be deemed to have delivered a
Reply Notice stating that it does not wish to terminate this Agreement).
If the Seller delivers (or is deemed to deliver) a Reply Notice that
indicates that it does not wish to terminate this Agreement pursuant to
this clause 8.10.2, then Completion shall be without prejudice to the
Purchaser&#146;s rights against the Seller or Calpine (if any) in respect of
the fact, matter or circumstance described in the notice given under
clause 8.9.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All notices under this clause 8.10 shall be given by facsimile in accordance with the
provisions of clause 19 and, in respect of any notice to be given to the Seller, a copy
shall be sent to Calpine in accordance with clause 19.3.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding any provision of this Agreement to the contrary, Calpine shall have no
liability under or in respect of this Agreement, the Share Purchase Documents or any of the
transactions contemplated herein or therein (or in connection with the performance or
non-performance of this Agreement or any Share Purchase Document) except contractual damages
in respect of the Warranties expressly given or deemed repeated by it pursuant to this clause
8 and Schedule&nbsp;2, and then subject to the terms and conditions of this Agreement, including
Schedule&nbsp;3.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to clauses 8.13 and 8.14, the Seller shall indemnify the Purchaser as trustee for
SCCL in respect of any losses, liabilities, damages and costs and expenses (including
reasonable legal defence costs) incurred by SCCL to the extent that they arise from any claim
or proceedings for damages or Remedial Action brought against SCCL by any member of the BP
group or any Competent Authority within eighteen months of the date of this Agreement to the
extent that such claim or proceedings relates to any alleged or actual emission of chlorides
from the cooling towers of the Facility and any actual or alleged resulting deposition of any
such chlorides on the Complex Site (as defined in the Lease of the Property dated 26 September
2003) or elsewhere prior to Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable for any claim under clause 8.12 to the extent that it arises
from or is increased:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>due to any failure by SCCL to operate the Facility in the manner of a
reasonable and prudent operator after Completion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the worsening or aggravation by any person (other than the Seller or by
any person authorised on its behalf) after Completion of any circumstances or
states of affairs (including without limitation the condition of any plant or
equipment at or any part of the Facility) comprising the subject matter of
such claim;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any change after Completion in the production capacity of the Facility;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any change after Completion in any operations or maintenance (including
without limitation their manner and intensity) at the Property or the
Facility (in each case including any part thereof);</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">36
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any amendment or alteration to or extension or renewal after Completion
of any deed, contract, lease or other agreement including without limitation
the BP Agreements to the extent that such claim would not have arisen under
such deed, contract, lease or other agreement in its form at the date of this
Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any development of, alteration to or extension of or addition to the
Facility (including any part thereof) after Completion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any variation of or modification to any permit, consent, licence or
other permission issued by a Competent Authority or an application for or
issue of any such new permit, consent, licence or other permission; and/or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.13.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by any waiver, release, reduction or extinction of any of the rights of
SCCL described in clause 8.14 below.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable under clause 8.12 above, until SCCL has enforced and exhausted
all its rights (including without limitation those arising under the EPC contract) against any
relevant person (including without limitation Mitsubishi) insofar as they relate to or concern
the subject matter of any claim which could be brought under clause 8.12 above. The Purchaser
shall procure that SCCL shall promptly and diligently take all such action within SCCL&#146;s power
as is necessary to compel Mitsubishi to carry out or pay for all works and measures necessary
to reduce the carry over of particles of water from the cooling towers of the Facility and any
deposition of chlorides including without limitation and where relevant the commencement of
any proceedings (save where the prospects of such proceedings being successful are low and the
Seller has given its written consent to the Purchaser or SCCL not to pursue such proceedings
(such consent not to be unreasonably withheld or delayed)). The Purchaser shall and shall
procure that SCCL shall give the Seller all information which the Seller reasonably requests
about such works and measures at all times and allow the Seller to monitor the progress of
such works and to the extent that it is able to procure the same to participate in any
relevant meetings with consultants or contractors.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Claim can be brought under any of the Warranties to the extent that its subject matter
falls within the scope of the indemnities in clause 8.12 above or would so fall if it were not
for any limitations contained in clauses 8.12 to 8.14 above or the limitation on the total
aggregate liability of the Seller contained in paragraph 2.4(a) of Schedule&nbsp;3.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly after SCCL or any other member of the Purchaser&#146;s Group becomes aware of any matter
which might reasonably be expected to give rise to a Claim by the Purchaser under clause 8.12
(whether at that time or in the future) it shall provide written details thereof to the Seller
and thereafter keep the Seller reasonably informed as to the progress of such matter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.17</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Seller Party shall indemnify the Purchaser, and keep the Purchaser indemnified, on
demand against each Loss which the Purchaser incurs whether before or after the start of an
action arising (directly or indirectly) out of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.17.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the settlement of a Claim against such Seller Party for a breach of (in the
case of the Seller) clause 8.1 or clause 8.2 or (in the case of the Seller
Guarantor) clause 8.6 or (in either case) the enforcement of such a
settlement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.17.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>legal proceedings against such Seller Party in respect of a Claim against
that Seller Party for a breach of (in the case of the Seller) clause 8.1 or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">37
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>clause 8.2 or (in the case of the Seller Guarantor) clause 8.6 or (in
either case) the enforcement of a judgment obtained in such proceedings.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.18</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Purchaser Party shall indemnify the Seller, and keep the Seller indemnified, on demand
against each Loss which the Seller incurs whether before or after the start of an action
arising (directly or indirectly) out of:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.18.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the settlement of a Claim against such Purchaser Party for a breach of
clause 9 or the enforcement of such a settlement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.18.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>legal proceedings against such Purchaser Party in respect of a Claim
against that Seller Party for a breach of clause 9 or the enforcement of a
judgment obtained in such proceedings.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.19</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Notwithstanding any provision of this Agreement to the contrary, none of the Warranties given
or deemed repeated by any of Calpine, the Seller or the Seller Guarantor shall be breached or
proved false in whole or in part by virtue of the actual or intended incurrence of
indebtedness or the granting of security by SCCL at Completion as contemplated by Part&nbsp;II of
Schedule&nbsp;4.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>PURCHASER PARTIES&#146; WARRANTIES</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Purchaser Parties warrants to the Seller that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has the requisite capacity, power and authority to
enter into and perform its obligations under this Agreement and the other
Share Purchase Documents to which it is a party;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has taken all necessary corporate action required by
its articles of association (or like constitutional documents) to permit it
to enter into and perform its obligations under this Agreement and the other
Share Purchase Documents to which it is a party;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this Agreement constitutes, and the other Share Purchase
Documents to which it is a party will, when duly executed by it and the other
parties thereto, constitute binding obligations on them in accordance with
their respective terms;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the execution and delivery of, and the performance of its
obligations under this Agreement and the other Share Purchase Documents to
which it is a party will not:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any provision of its constitutional
or organisational documents; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any order, judgment or decree of
any court or governmental agency to which it is a party or by which it is
bound or any contractual commitment by which it is bound;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mitsui owns indirectly 30% of the issued share capital of
the Purchaser and IPR owns indirectly 70% of the issued share capital of the
Purchaser; and</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">38
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is not, in any jurisdiction (including the United
States of America) subject to or threatened by any procedures or steps which
are analogous to those contained in paragraph 18 of Schedule&nbsp;2 and nor are
any such procedures or steps pending.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser warrants to the Seller that, so far as the Purchaser is aware:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the resources used to fund the purchase of the Shares or
otherwise used by any member of the Purchaser&#146;s Group in connection with, or
in the performance of its obligations under this Agreement or any Completion
Documents are not derived, in any country, either directly or indirectly,
from drug trafficking, bribery, money laundering, terrorism, trafficking of
arms, or any other activity, whether or not considered legal in the relevant
country, if such activity would be illegal had it occurred in the United
Kingdom; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the Purchaser nor any other member of the
Purchaser&#146;s Group nor any person acting on its or their behalf has made,
offered, promised or authorised any payment or given, offered promised or
authorised the giving of anything of material value to any official or
employee of any government or any department, agency or instrumentality
thereof, any political party or candidate for political office, any officer
or employee of any public international or multilateral organisation or any
person who has done or may do any of the things mentioned in this clause
9.2.2 in connection with the Project, this Agreement or any Completion
Documents or any transaction referred to herein or therein or supported,
sponsored, facilitated or financed any act of terrorism or terrorist person
or group in any way.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser warrants to the Seller that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it will have the necessary cash resources to meet its
obligations at Completion under this Agreement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as at the date of this Agreement, it does not intend to
bring any Claim against the Seller.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>UNDERTAKINGS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller agrees and undertakes that (in the absence of fraud) it has no rights against and
shall not make any claim against any employee, director, agent, officer or adviser of the Sale
Group or of any shareholder or Affiliate of the Sale Group, in each case on whom it may have
relied before agreeing to any term of this Agreement or any other agreement or document
referred to herein (including the Disclosure Letter) or entering into this Agreement or any
other agreement or document referred to herein. The Purchaser agrees and undertakes that (in
the absence of fraud) it has no rights against and shall not make any claim against any
employee, director, agent, officer or adviser of the Calpine Group or of any shareholder or
Affiliate of the Calpine Group, in each case on whom it may have relied before agreeing to any
term of this Agreement or any other agreement or document referred to herein (including the
Disclosure Letter) or entering into this Agreement or any other agreement or document referred
to herein.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to the Seller that it shall, and shall procure that each member of
the Sale Group shall, preserve for a period of at least seven (7)&nbsp;years (or any longer period
as may</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">39
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>be required by law or relevant regulations from time to time) from Completion all books,
records and documents of the Sale Group existing at Completion. The Purchaser shall permit
and allow, and shall procure that the relevant member of the Sale Group shall permit and
allow, upon reasonable written notice (and in any event within seven (7)&nbsp;days of written
notice being given) and during Working Hours, the employees, agents and professional
advisers of the Seller or any member of the Calpine Group specified in such notice
reasonable access to such books, records and documents and the right to inspect the same and
at the Seller&#146;s expense, make copies thereof. The Seller hereby agrees (for itself and on
behalf of any of its employees, agents and professional advisers) in favour of the Purchaser
to keep confidential all confidential information disclosed to it or which it learns as a
result of being given access to the books, records and documents under this clause 10.2 on
the same terms as set out in clause 21.2.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to the Seller (for itself and for the benefit of SCCL) that, subject
to the delivery of the Accountants Report at Completion, the net assets of SCCL will not be
reduced as a result of the transactions contemplated by paragraph 3 of Part&nbsp;II of Schedule&nbsp;4
and, if such a reduction would occur as a result of such transactions, then the Purchaser
shall procure that, simultaneous with such transactions, SCCL&#146;s net assets are increased by
an amount at least equal to such reduction, provided that nothing in this clause 10.3 shall
require the Purchaser to make good any reduction of net assets (whether by way of subscription
for share capital or otherwise) occurring as a result of such transactions or incur any
liability for an amount in excess of &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller agrees that it shall (and that it will procure that SCCL shall) use all reasonable
endeavours to procure the delivery of the Accountants Report at Completion and the Purchaser
agrees to provide all assistance reasonably requested by the Seller in connection with the
preparation of the Accountants Report.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>EFFECT OF COMPLETION</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any provision of this Agreement and any other documents referred to herein which are capable
of being performed after (but which has not been performed at or before Completion) and all
Warranties and other undertakings contained in or entered into pursuant to this Agreement
shall remain in full force and effect notwithstanding Completion.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>REMEDIES AND WAIVERS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No delay or omission on the part of any party to this Agreement in exercising any right,
power or remedy provided by law or under this Agreement or any other documents referred to
herein shall impair such right, power or remedy, or operate as a waiver thereof.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The single or partial exercise of any right, power or remedy provided by law or under this
Agreement shall not preclude any other or further exercise thereof or the exercise of any
other right, power or remedy.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONDUCT OF CLAIMS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to the provisions of clause 3.7.5 of the Participation Agreement (if
applicable), upon the Purchaser or a member of the Sale Group becoming aware of any claim,
action or demand against it by a third party or matter of which the Purchaser is aware is
reasonably likely to give rise to any Claim by the Purchaser under this Agreement other than a
Tax Claim or an Environmental Indemnity Claim (&#147;<B>Third Party Claim</B>&#148;), the Purchaser shall and
shall procure that the relevant member of the Sale Group shall:</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">40
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>promptly, and in any event within 10 Business Days of becoming aware (i)&nbsp;of
the claim, action or demand or (ii)&nbsp;that the relevant matter is reasonably
likely to give rise to a Claim, notify the Seller by written notice;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at the request of the Seller and subject to the Seller indemnifying the
Purchaser and the relevant member of the Sale Group against any reasonable
liability, costs, damages or expenses which may be reasonably and properly
incurred thereby, allow the Seller, subject to the directions and
requirements of any relevant insurer (if the claim is covered by a valid
policy of insurance) to take the sole conduct of such actions as the Seller
may deem appropriate in connection with any such Third Party Claim in the
name of the Purchaser or the relevant member of the Sale Group and in that
connection the Purchaser shall give or cause to be given to the Seller all
such assistance as the Seller may reasonably require in avoiding, disputing,
resisting, settling, compromising, defending or appealing any such Third
Party Claim. The Seller shall:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in response to reasonable requests from the Purchaser from time to time,
keep the Purchaser informed of the progress of the Third Party Claim;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide the Purchaser with copies of such documentation relating to the
Third Party Claim as it may reasonably request subject to legal privilege
(unless disclosure can be made without loss of privilege) and relevant
duties of confidentiality; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>give the Purchaser such opportunities as it may reasonably request to
make representations regarding the conduct of the Third Party Claim;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to the Seller indemnifying the Purchaser and the relevant member of
the Sale Group against any reasonable liability, costs, damages or expenses
which may be reasonably and properly incurred thereby, take such action and
give such information and access to relevant personnel, premises, chattels,
documents and records to the Seller and its professional advisers as the
Seller may reasonably request (save, for the avoidance of doubt, to the
extent that any information, documents or records: (i)&nbsp;constitute internal
memoranda of the Purchaser&#146;s Group which relate directly to a potential Claim
which may be made against the Seller and not to the factual circumstances
underlying such potential Claim, or (ii)&nbsp;are subject to legal privilege
unless disclosure can be made without loss of privilege) or (iii)&nbsp;information
which the Purchaser is obliged to keep confidential and the Purchaser and the
relevant member of the Sale Group shall take (or procure the taking of) such
action and give (or procure the giving of) such information and assistance in
order to avoid, dispute, resist, mitigate, settle, compromise, defend or
appeal any claim in respect a Third Party Claim or adjudication with respect
thereto as the Seller may reasonably require;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make no admission of liability, agreement, settlement or compromise in
relation to any such Third Party Claim or adjudication without the prior
written consent of the Seller. If the Seller agrees with the third party to
settle or compromise a Third Party Claim, and the Purchaser refuses to agree
to such settlement or compromise then, if the amount for which the Seller
subsequently becomes liable exceeds the figure at which it would</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">41
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have so settled or compromised the relevant Third Party Claim, the
Seller shall not be liable for the excess amount or any costs or
liabilities incurred since the proposed date of settlement or
compromise; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="4%" nowrap align="left">13.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>take all necessary action to mitigate its loss to the extent it is within
its power to do so.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clause 9 (Conduct of Tax Claims) of the Tax Covenant shall apply to a Tax Warranty Claim.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>BASIS OF RECOVERY</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where any payment is made pursuant to a claim for breach of this Agreement or under an
indemnity given under this Agreement (but not under the Tax Covenant or in relation to the Tax
Warranties) and the Losses incurred in relation to the claim give rise to a Relief in the
hands of any member of the Calpine Group or the Purchaser Group (as the case may be), then to
the extent that such Relief results in an actual saving of Tax, the Seller or the Purchaser
(as the case may be) shall, on the date on which the Tax so saved would otherwise first have
been due and payable, pay (or procure that the relevant member of the Calpine Group or the
Purchaser Group shall pay) to the other party an amount equal to the Tax so saved provided
that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in determining when any such Relief has been utilised, any other Relief
arising in the same or earlier accounting periods shall be deemed to take
priority to such Relief and such Relief shall be deemed to take priority to
any other Relief arising in subsequent accounting periods; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the extent that such Relief has not been utilised within seven (7)&nbsp;years
of the date of this Agreement, no payment shall be required to be made
pursuant to this clause.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller or the Purchaser may (at its own cost and expense) at any time issue an
instruction (the party issuing the instruction is referred to in this clause as the
&#147;<B>Requesting Party</B>&#148;) to the other&#146;s auditors (the party so notified is referred to in this
clause as the &#147;<B>Notified Party</B>&#148;) to determine in writing the extent of any Relief referred to
in clause 14.1 which has arisen. If such auditors determine in writing that a Relief has
arisen and been utilised in accordance with clause 14.1 (as so determined in writing) the
Notified Party shall pay to the Requesting Party the amount so determined by the relevant
auditors within five (5)&nbsp;days of its receipt of a copy of the auditors written determination.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a written determination has been issued as referred to in clause 14.2, the Seller or the
Purchaser may on or before the third anniversary of such determination issue a request to the
relevant company&#146;s auditors:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to review (at the expense of the party requesting the review, or where a
payment becomes due under clause 14.4, at the expense of the party which is
required to make such payment under clause 14.4) such written determination
in the light of all relevant circumstances at the time of the review; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to determine in writing whether in the light of such circumstances the
original written determination should be amended.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the new written determination referred to in clause 14.3 states that the original written
determination should be amended, an adjusting payment equal to the difference between the</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">42
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sum in the original written determination and the sum in the amended written determination
shall be made by the Requesting Party or the Notified Party (as appropriate) as soon as
reasonably practicable.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TRADE MARKS</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser hereby undertakes to the Seller to procure that each member of the Sale Group
ceases to use or display in any manner whatsoever the Trade Marks or any similar mark, name,
design or logo as soon as reasonably practicable (and in any event within 90&nbsp;days) following
Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ASSIGNMENT AND NOVATION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All (and not part only) of the benefits of this Agreement shall be assignable:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the Purchaser to a member of the Purchaser&#146;s Group, or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the Seller to a member of the Calpine Group,</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:5%; font-size: 10pt">PROVIDED THAT, in either case, any assignment made to a person in accordance with clauses
16.1.1 or 16.1.2 (each such person a &#147;<B>Permitted Assignee</B>&#148;) is subject to the conditions that
if such Permitted Assignee shall subsequently cease to be a member of the Purchaser&#146;s Group
or the Calpine Group, the Purchaser or the Seller (as the case may be) shall procure that
prior to the Permitted Assignee ceasing to be an Affiliate thereof, the Permitted Assignee
assigns the benefit of this Agreement back to the assigning party or to another member of
the Purchaser&#146;s Group or the Calpine Group (as the case may be).


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser (or any Permitted Assignee, including under clause 16.3) may charge or assign
the benefit of this Agreement to any bank or financial institution or any other person by way
of security for the purposes of or in connection with the financing (whether in whole or in
part) by the Purchaser and/or SCCL of the acquisition of the Shares or any other transactions
contemplated by this Agreement. Any such bank, financial institution or person (or any
administrative receiver or other person appointed to enforce such security) may charge or
assign such rights on, for the purpose of or in connection with, any enforcement of the
security under such financing arrangements.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At any time prior to Completion the Purchaser Guarantors may give notice to the Seller
Parties indicating that they wish the Seller Parties to agree to the novation of the
obligations of the Purchaser under this Agreement to a Permitted Assignee and provided that:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Permitted Assignee is an Approved Transferee within the meaning of the
Participation Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such novation is conditional upon such Permitted Assignee remaining a
member of the Purchaser&#146;s Group at all times prior to Completion (failing
which the obligations of the Purchaser as novated to the Permitted Assignee
shall be novated to the Purchaser or another Permitted Assignee); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the liability of the Seller Parties under this Agreement is not increased
as a result of such novation,</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:5%; font-size: 10pt">then the Seller Parties will execute all such documents as may reasonably be required to
novate the obligations of the Purchaser to the nominated Permitted Assignee and following


<P align="center" style="font-size: 10pt">43
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="margin-left:5%; font-size: 10pt">such novation each reference in this Agreement to the Purchaser (including in clause 26)
shall be construed as a reference to the Permitted Assignee.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event of an assignment in accordance with clause 16.1 or clause 16.2 or a novation in
accordance with clause 16.3, each of the Purchaser and the Seller (as the case may be) hereby
agrees that the liability of the other party in respect of any Claim or any liability arising
out of or in connection with this Agreement or the Tax Covenant howsoever arising shall be no
greater than it would otherwise have been had any such assignment or novation not occurred.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither this Agreement (nor any part of it) is assignable by the Calpine or the Seller
Guarantor without the prior written consent of the Purchaser. Neither this Agreement nor any
part of it is assignable by either of the Purchaser Guarantors without the prior written
consent of the Seller.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as expressly permitted by this clause 16, any assignment of this Agreement shall be
void.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TERMINATION</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be terminated as follows:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by mutual written consent of the Seller and the Purchaser;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>upon notice by either the Seller or the Purchaser if any of the Conditions
Precedent shall not have been satisfied (or, in the case of the Purchaser
Conditions, waived by the Purchaser) prior to 3:00 p.m. on the Long Stop
Date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the Purchaser in accordance with clause 3.6;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the Purchaser or the Seller in accordance with clause 6.5; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">17.1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>by the Seller in accordance with clause 8.10.2.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement will terminate automatically at 5:00 p.m. on 30 August&nbsp;2005 unless Completion
has occurred prior to that time.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If this Agreement is terminated in accordance with clause 17.1 or terminates in accordance
with clause 17.2 and without limiting any party&#146;s right to claim damages in respect of
antecedent breaches, all obligations of the parties under this Agreement shall end (except for
the provisions of clauses 19, 20, 21, 22 and 32) but all rights and liabilities of the parties
which have accrued before termination shall continue to exist.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>FURTHER ASSURANCE</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Parties shall from time to time at its own cost, on being required to do so by
any other party to this Agreement, now or at any time in the future, do or procure the doing
of all such acts and/or execute or procure the execution of all such documents in a form
satisfactory to the party concerned as they may reasonably consider necessary to transfer the
Shares to the Purchaser and otherwise give full effect to this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may only be varied in writing signed by each of the parties.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">44
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>NOTICES</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any notice or other communication given or made under or in connection with the matters
contemplated by this Agreement shall be in writing.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any such notice or other communication shall be delivered personally or sent by international
recognised courier or by facsimile to the address or the facsimile number provided in clause
19.3 (marked for the attention of the person identified in the clause) and, if so delivered or
sent, shall be deemed to have been duly given or made as follows:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if sent by personal delivery, upon delivery at the address of the party to
whom such notice is addressed;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if sent by international recognised courier, two (2)&nbsp;Business Days after
the date of posting; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if sent by facsimile, when dispatched,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PROVIDED THAT if, in accordance with the above provisions, any such notice or other
communication would otherwise be deemed to be given or made outside Working Hours, such
notice or other communication shall be deemed to be given or made at the start of Working
Hours on the next Business Day.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The relevant addressee and facsimile number of each party for the purposes of this Agreement,
subject to clause 19.4, are:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name of party:</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>For the attention of:</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>Facsimile No.:</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calpine UK Holdings Limited<BR>
c/o Skadden Arps Slate<BR>
Meagher &#038; Flom (UK)&nbsp;LLP<BR>
40 Bank Street<BR>
Canary Wharf<BR>
London E14 5DS
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Douglas Nordlinger
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;44 (0)&nbsp;20 7072 7030</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>with a copy to Calpine</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calpine Corporation<BR>
50 West San Fernando Street<BR>
San Jose<BR>
California 95113<BR>
USA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Counsel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;1 408 794 2434</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Quintana Canada Holdings, LLC<BR>
50 West San Fernando Street<BR>
San Jose<BR>
California 95113<BR>
USA
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Counsel
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;1 408 794 2434</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>with a copy to Calpine</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Normantrail (UK Co 3) Limited<BR>
Senator House<BR>
85 Queen Victoria Street<BR>
London EC4V 4DP
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Company Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;44 (0)&nbsp;20 7320 8770</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">45
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="33%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Name of party:</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>For the attention of:</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><I>Facsimile No.:</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>with a copy to each of the<BR>
Purchaser Guarantors</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">International Power plc<BR>
Senator House<BR>
85 Queen Victoria Street<BR>
London EC4V 4DP
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Company Secretary
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;44 (0)20 7320 8770</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><I>with a copy to Mitsui</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Mitsui &#038; Co., Ltd<BR>
2-1, Ohtemachi 1-chome<BR>
Chiyoda-ku<BR>
Tokyo<BR>
Japan<BR>
<I>with a copy to IPR</I>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The General Manager<BR>
Second Project<BR>
Development Department<P>
Power &#038; Infrastructure<BR>
Project Development<BR>
Division
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#043;81 (0)&nbsp;3 3285 9783</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A party may notify the other parties to this Agreement of a change to its name, relevant
addressee, address or fax number for the purposes of clause 19.3 PROVIDED THAT such
notification shall only be effective on:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the date specified in the notification as the date on which the change is
to take place; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">19.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if no date is specified or the date specified is less than five (5)&nbsp;clear
Business Days after the date on which notice under this clause 19.4 is given,
the date falling five (5)&nbsp;clear Business Days after notice of any such change
has been given.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>20.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ANNOUNCEMENTS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to clause 20.2, no announcement concerning the sale of the Shares or any ancillary
matter shall be made by any member of the Purchaser&#146;s Group or any member of the Calpine Group
without the prior written approval of the Seller or the Purchaser (respectively), such
approval not to be unreasonably withheld or delayed.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any party (or any of its Affiliates) may make an announcement concerning the sale of the
Shares or any ancillary matter if and to the extent required by:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">20.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the law of any relevant jurisdiction;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">20.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>existing contractual obligations; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">20.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any securities exchange or regulatory or governmental body to which any
party (or any of its Affiliates) is subject or submits, wherever situated,
whether or not the requirement has the force of law,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in which case the party which is required to make the announcement shall take all such steps
as may be reasonable and practicable in the circumstances to agree the contents of such
announcement with the Purchaser (in the case of an announcement by a Seller Party or any of
its Affiliates) or the Seller (in the case of an announcement by a Purchaser Party or any of
its Affiliates) before making such announcement PROVIDED THAT any such announcement shall be
made only after notice to the Purchaser or the Seller (as the case may be).</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">46
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</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The restrictions contained in this clause shall continue to apply after Completion without
limit in time.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>21.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CONFIDENTIALITY</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to clauses 21.3 and 21.4, the Purchaser undertakes to the Seller that it will (and
that it will procure that each member of the Purchaser Group will) treat as strictly
confidential all information received or obtained as a result of entering into or performing
this Agreement which relates to:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the provisions of this Agreement;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the negotiations relating to this Agreement (or any other document referred
to herein);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the subject matter of this Agreement (or any other document referred to
herein); or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine and each member of the Calpine Group.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to clauses 21.3 and 21.4, the Seller undertakes to the Purchaser that it will (and
that it will procure that each member of the Seller Group will) treat as strictly confidential
all Confidential Information and all information received or obtained as a result of entering
into or performing this Agreement which relates to:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the provisions of this Agreement;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the negotiations relating to this Agreement (or any other document referred
to herein);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the subject matter of this Agreement (or any other document referred to
herein); or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser&#146;s Group.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Information which would otherwise be confidential by virtue of clause 21.1 or clause 21.2 may
be disclosed by the Purchaser (or a Purchaser Group member) or by the Seller (or by a Calpine
Group member), as the case may be, if and to the extent:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is required by the law of any relevant jurisdiction;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is required by any securities exchange or regulatory or governmental
body to which a party (or any of its Affiliates) is subject or submits,
wherever situated, whether or not the requirement for information has the
force of law;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is disclosed on a strictly confidential basis to directors, employees,
professional advisers, auditors, bankers or rating agency of that party or to
directors, employees, professional advisers, auditors or bankers of its
Affiliates;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the information has come into the public domain through no fault of that
party or any of its Affiliates;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">47
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</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser and the Seller have given their prior written approval to the
disclosure, such approval not to be unreasonably withheld or delayed;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is required to enable that party to enforce its rights under this
Agreement or it is disclosed in connection with regulatory or judicial
proceedings; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">21.3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is required by the Gas and Electricity Markets Authority,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PROVIDED THAT (unless contrary to law or the direction of any governmental authority) any
such information disclosed pursuant to clauses 21.3.1 or 21.3.2 above shall be disclosed
only after notice to the Purchaser or the Seller (as the case may be).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller may disclose this Agreement, the other Share Purchase Documents, and other
information which would otherwise be confidential by virtue of clause 21.2 to any member of
the BP Group to the extent required under or contemplated by the Participation Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The restrictions contained in this clause 21 shall continue to apply after the termination of
this Agreement or Completion for five (5)&nbsp;years from the date hereof.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Calpine and IPR agree that the confidentiality undertaking entered into between them dated 7
February&nbsp;2005 shall terminate at Completion without prejudice to any liability for breach of
such agreement prior to Completion. Calpine and Mitsui agree that the confidentiality
undertaking entered into between them dated 5 March&nbsp;2005 shall terminate at Completion without
prejudice to any liability for breach of such agreement prior to Completion.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>22.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COSTS AND EXPENSES</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each party shall pay its own costs and expenses in relation to the negotiations leading up to
the sale of the Shares and to the preparation, execution and carrying into effect of this
Agreement and all other documents referred to herein.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">22.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to clause 22.1, all stamp, transfer, registration and other similar taxes,
duties and charges payable in connection with the sale or purchase of the Shares under this
Agreement (if any) shall be paid by the Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>23.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>TIME OF ESSENCE</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">23.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any time, date or period referred to in any provision of this Agreement may be extended by
mutual agreement of the parties, but, in relation to any payment obligations and any
obligations relating to Completion, as regards any time, date or period originally fixed or
any time, date or period so extended, time shall be of the essence.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>24.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INTEREST</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">24.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a party defaults in the payment when due of any sum payable under this Agreement (whether
determined by agreement or pursuant to an order of a court or otherwise) the liability of such
party shall be increased to include a payment of interest on such sum (subject to deduction or
withholding of tax as required by law) from the date when such payment is due until the date
of actual payment (before and after judgment) at a rate of two (2)&nbsp;per cent above LIBOR. Such
interest shall accrue from day to day on the basis of a 360-day year.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">48
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</TABLE>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>25.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>INVALIDITY</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">25.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If at any time any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any competent jurisdiction, such provision shall
not affect or impair:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">25.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the legality, validity or enforceability in that jurisdiction of any other
provision of this Agreement; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">25.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the legality, validity or enforceability under the law of any other
jurisdiction of such provision or any other provision of this Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>26.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>SEVERAL GUARANTEE FROM THE PURCHASER GUARANTORS</B></TD>
</TR>

</TABLE>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of the Seller entering into this Agreement and for other good and valuable
consideration receipt of which is hereby acknowledged, subject to clause 26.2 the Purchaser
Guarantors hereby unconditionally and irrevocably (i)&nbsp;guarantee to the Seller the full, due
and punctual payment by the Purchaser of all amounts payable by the Purchaser under this
Agreement or the Tax Covenant and the performance of the Purchaser&#146;s obligations at Completion
and (ii)&nbsp;indemnify the Seller immediately on demand against any cost, loss or liability
suffered by it if any obligation guaranteed by the Purchaser Guarantors is or becomes
unenforceable, invalid or illegal. The Purchaser Guarantors shall be liable for all such
obligations arising under this clause 26.1 as if they were each a primary obligor. The
guarantee in this clause 26.1 is a continuing guarantee and will extend to the ultimate
balance of sums payable by the Purchaser or the Purchaser Guarantors to the Seller in respect
of all amounts payable by the Purchaser under this Agreement or the Tax Covenant, regardless
of any intermediate payment or discharge.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The obligations of the Purchaser Guarantors under this clause 26 are several (and not joint
and several) and in respect of any liability under it, IPR shall be responsible for &#091;*&#093; of
such liability and Mitsui shall be responsible for &#091;*&#093; of such liability.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser Guarantors&#146; obligations under this clause 26 will not be affected by any act,
omission, matter or thing which, but for this clause, would reduce, release or prejudice any
of its obligations under this clause 26, including (without limitation and whether or not
known to the Purchaser Guarantors or the Purchaser):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any time, waiver or consent granted to, or composition with, the Purchaser
or the Purchaser Guarantors;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the release of the Purchaser or the Purchaser Guarantors or any other
person under the terms of any composition or arrangement with any of their
creditors;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, the Purchaser or a Purchaser Guarantor or any other
person or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to release the full
value of any security;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of the Purchaser or a
Purchaser Guarantor or any other person;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">49
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any amendment (however, fundamental) or replacement of this Agreement or
any of the Share Purchase Documents or any other document or security;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any unenforceability, illegality or invalidity of any obligation of any
person under this Agreement or any of the Share Purchase Documents or any
other document or security; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any insolvency of any person or similar proceedings.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and whenever the Purchaser defaults for any reason whatsoever in the performance of its
obligation to pay all amounts payable by the Purchaser under any Share Purchase Document to
which it is a party, the Purchaser Guarantors shall (on the several basis described in clause
26.2) forthwith unconditionally perform (or procure performance of) and satisfy (or procure
the satisfaction of) such obligation in the manner prescribed by such Share Purchase Document
so that the same benefits shall be conferred on the Seller as it would have received if such
obligation had been duly performed and satisfied by the Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be obliged before exercising any of the rights, powers or remedies
conferred upon it by this clause 26 or by law:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make any demand of the Purchaser;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to take any action or obtain judgment in any court against the Purchaser;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make or file any claim or proof in a winding-up or dissolution of the
Purchaser; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enforce or seek to enforce any other security taken in respect of any of
the obligations of the Purchaser hereunder.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">26.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Purchaser Guarantor agrees that, so long as any amounts are owed by the Purchaser under
this Agreement or the Tax Covenant it shall not exercise any rights which it may at any time
have by reason of performance by it of its obligations under this Agreement or the Tax
Covenant:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to be indemnified by the Purchaser in respect of the obligations assumed by
the Purchaser Guarantors under this Agreement or the Tax Covenant; and/or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">26.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to take the benefit (in whole or in part and whether by way of subrogation
or otherwise) of any rights of the Purchaser under this Agreement or the Tax
Covenant or of any other security taken pursuant to, or in connection with,
this Agreement or the Tax Covenant by the Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>27.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>GUARANTEE FROM THE SELLER GUARANTOR</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of the Purchaser entering into this Agreement and for other good and
valuable consideration receipt of which is hereby acknowledged, the Seller Guarantor hereby
unconditionally and irrevocably (i)&nbsp;guarantees to the Purchaser the full, due and punctual
payment by the Seller of amounts due in respect of liabilities of the Seller for all Claims
under this Agreement (other than Claims for breach of a Warranty) and all Claims under the Tax
Covenant, and (ii)&nbsp;indemnifies the Purchaser immediately on demand against any cost, loss or
liability suffered by it if any obligation guaranteed by the Seller Guarantor is or becomes</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">50
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal
to the amount that the Purchaser would otherwise have been entitled to. The Seller
Guarantor shall be liable for all such obligations arising under this clause 27.1 as if it
were a primary obligor. The guarantee in this clause 27.1 is a continuing guarantee and
will extend to the ultimate balance of sums payable by the Seller in respect of all Claims
under this Agreement (other than Claims for breach of a Warranty) and all Claims under the
Tax Covenant and the ultimate balance of sums payable by the Seller Guarantor to the
Purchaser, regardless of any intermediate payment or discharge.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller Guarantor&#146;s obligations under this clause 27 will not be affected by any act,
omission, matter or thing which, but for this clause, would reduce, release or prejudice any
of its obligations under this clause 27, including (without limitation and whether or not
known to the Seller Guarantor or the Seller):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any time, waiver or consent granted to, or composition with, the Seller or
the Seller Guarantor;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the release of the Seller or the Seller Guarantor or any other person under
the terms of any composition or arrangement with any of their creditors;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, the Seller or the Seller Guarantor or any other
person or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to release the full
value of any security;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of the Seller or the Seller
Guarantor or any other person;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any amendment (however, fundamental) or replacement of the Agreement or any
of the Share Purchase Documents or any other document or security;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any unenforceability, illegality or invalidity of any obligation of any
person under the Agreement or any of the Share Purchase Documents or any
other document or security; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any insolvency of any person or similar proceedings.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If and whenever the Seller defaults for any reason whatsoever in the performance of its
obligation to pay a liability of the Seller in respect of a Claim (other than a Claim for
breach of a Warranty) or a Claim under the Tax Covenant, the Seller Guarantor shall forthwith
unconditionally perform (or procure performance of) and satisfy (or procure the satisfaction
of) such obligation, commitment or undertaking in regard to which such default has been made
in the manner prescribed by the relevant agreement so that the same benefits shall be
conferred on the Purchaser as it would have received if such obligation, commitment or
undertaking had been duly performed and satisfied by the Seller.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be obliged before exercising any of the rights, powers or remedies
conferred upon it by this clause 27 or by law:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>subject to paragraph 8 of Schedule&nbsp;3, to make any demand of the Seller;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">51
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to take any action or obtain judgment in any court against the Seller;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make or file any claim or proof in a winding-up or dissolution of the
Seller; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to enforce or seek to enforce any other security taken in respect of any of
the obligations of the Seller hereunder.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">27.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller Guarantor agrees that, so long as any amounts are or may be owed by the Seller in
respect of all Claims under this Agreement (other than Claims for breach of a Warranty) or a
Claim under the Tax Covenant or under any of the Share Purchase Documents to which the Seller
is party or the Seller is under any actual or contingent obligation under any such agreements,
the Seller Guarantor shall not exercise any rights which the Seller Guarantor may at any time
have by reason of performance by it of its obligations under any such agreements:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to be indemnified by the Seller in respect of the obligations assumed by
the Seller Guarantor under any such agreements; and/or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to claim any contribution from any other Seller Guarantor of the Seller&#146;s
obligations under any such agreements; and/or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">27.5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to take the benefit (in whole or in part and whether by way of subrogation
or otherwise) of any rights of the Seller under any such agreements or of any
other security taken pursuant to, or in connection with, any such agreements
by the Seller.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>28.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>THIRD PARTY RIGHTS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">28.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The parties to this Agreement do not intend that any term of this Agreement (other than
clause 10.3, which shall be enforceable by SCCL) should be enforceable by any person who is
not a party to this Agreement by virtue of the Contracts (Rights of Third Parties) Act 1999 or
otherwise. Notwithstanding the foregoing, if any benefits are conferred by this Agreement on
any third party by virtue of such statute, the parties to this Agreement may agree to vary or
rescind this Agreement without any such third party&#146;s consent.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>29.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>COUNTERPARTS</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">29.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement may be executed in counterparts, and by the parties on separate counterparts,
but shall not be effective until each party has executed at least one counterpart. Each
counterpart shall constitute an original of this Agreement, but the counterparts shall
together constitute but one and the same instrument.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>30.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>ENTIRE AGREEMENT</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">30.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement and the other Share Purchase Documents (and all other documents which are
entered into by the parties or any of them in connection with this Agreement) contains the
whole agreement between the parties relating to the subject matter of this Agreement at the
date hereof to the exclusion of any terms implied by law which may be excluded by contract.
Each party acknowledges that it has not been induced to enter this Agreement by and, in
agreeing to enter into this Agreement, it has not relied on, any representations or warranties
except as expressly stated or referred to in this Agreement and, so far as permitted by law
(and except in the case of fraud) and each of the parties hereby waives any remedy in respect
of (and acknowledges that no other party nor any of their agents, advisers, officers or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">52
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>employees have given) any warranties, representations, indemnities or other statements
whatsoever (written or oral) not expressly incorporated into this Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>31.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>WITHHOLDING, DEDUCTIONS AND SET OFF</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">31.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All sums payable under this Agreement (save amounts payable under clause 8.17 and 8.18) shall
be made in full without any set-off or counterclaim and free and clear of all deductions or
withholdings of any kind, save only as may be required by law, in which event such deduction
or withholding shall not exceed the minimum amount required by law.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">31.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any deduction or withholding is required by law from any payment made under this Agreement
then, except in relation to payments of interest, the party making the payment shall pay the
recipient such additional sum (the &#147;<B>Additional Sum</B>&#148;) as will, after such deduction or
withholding has been made (and after taking into account any Tax payable in respect of the
Additional Sum), leave the recipient with the same amount as it would have been entitled to
receive in the absence of any such requirement to make a deduction or withholding.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">31.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Tax Authority brings into charge to Tax any sum paid by a party to any other party
under this Agreement then, except in relation to payments of interest, the Purchase Price and
any amounts paid pursuant to clauses 4.2, 6.3 and 7.6, the same obligation to pay an
Additional Sum as is referred to in clause 31.2 above shall apply in relation to such Tax as
if it were a deduction or withholding required by law; provided that if this clause 31.3
requires payment of an Additional Sum, if and to the extent that payment of such Additional
Sum would cause the total sum paid by the Seller Parties under this Agreement to exceed an
amount equal to the Purchase Price less &#163;10 then such Additional Sum shall be deemed to be
reduced so that the total sum paid by the Seller Parties under this Agreement does not exceed
the Purchase Price less &#163;10.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">31.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any party pays an additional amount under this Agreement and the recipient receives, by
virtue of the receipt of that additional amount (or in relation to the matter giving rise to
the payment of that additional amount) a credit for, refund of or relief from any Tax or other
monies payable by it or a similar benefit by reason of any deduction or withholding for or on
account of Tax or by reason of any Tax charged in respect of which there is an additional
amount under clause 31.3 or this clause 31.4, then that party shall reimburse to the other
relevant parties the amount of such credit, refund, relief, or similar benefit.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">31.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a party to this Agreement assigns the benefit of this Agreement, the other relevant
parties shall only be liable to make additional payments pursuant to clauses 31.3 or 31.4
above to the extent that those other parties would have been liable to make those payments if
no assignment had occurred.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>32.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>CHOICE OF GOVERNING LAW</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">32.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement shall be governed by and construed in accordance with English law.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">32.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each party irrevocably agrees that the courts of England shall have exclusive jurisdiction to
settle any Proceedings which may arise out of or in connection with this Agreement and that
accordingly any Proceedings shall be brought in such courts.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">32.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each party waives (and agrees not to raise) any objection, on the ground of forum non
conveniens or on any other ground, to the taking of proceedings in the English courts. Each
party also agrees that a judgment against it in Proceedings brought in England shall be
conclusive and binding upon it and may be enforced in any other jurisdiction.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">53
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>

<P align="left" style="font-size: 10pt">IN WITNESS whereof the parties have entered this Agreement the day and year first before written.



<P align="center" style="font-size: 10pt"><B>SCHEDULE 1</B>



<P align="center" style="font-size: 10pt"><B>CORPORATE INFORMATION</B>



<P align="center" style="font-size: 10pt"><B>PART A</B>



<P align="center" style="font-size: 10pt"><B>Calpine UK Operations Limited</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Registered number:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">04241615</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Date of incorporation:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">26 June&nbsp;2001</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Place of incorporation:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">England and Wales</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Type of company:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private limited by shares</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Address of registered office:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Saltend<BR>
Hedon Road<BR>
Hull East Riding of Yorkshire<BR>
HU12 8GA</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Directors:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lisa Marie Bodensteiner<BR>
Peter Cartwright<BR>
Ann B Curtis</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Secretary:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alycia Lyons Goody</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Authorised share capital:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#163;1,000,000 comprised of 1,000,000 ordinary<BR>
shares of &#163;1 each</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Issued share capital:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1 ordinary share</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Shareholder:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calpine UK Holdings Limited</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Accounting reference date:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31 December</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Auditors:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PricewaterhouseCoopers LLP</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">54
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>PART B</B>



<P align="center" style="font-size: 10pt"><B>Saltend Cogeneration Company Limited</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">Registered number:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">03274929</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Date of incorporation:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1 November&nbsp;1996</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Place of incorporation:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">England and Wales</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Type of company:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Private limited by shares</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Address of registered office:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Saltend<BR>
Hedon Road<BR>
Hull East Riding of Yorkshire<BR>
HU12 8GA</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Directors:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Peter Cartwright<BR>
Ann B Curtis<BR>
Christopher Bowlas<BR>
Lisa Marie Bodensteiner</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Secretary:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Alycia Lyons Goody</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Authorised share capital:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#163;80,201,000 comprised of 80,201,000 &#145;A&#146;<BR>
ordinary shares of &#163;1 each</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Issued share capital:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">80,201,000 &#145;A&#146; ordinary shares</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Shareholder<BR>
Accounting reference date:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Calpine UK Holdings Limited<BR>
31 December</DIV></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top">Auditors:
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PricewaterhouseCoopers LLP</DIV></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">55
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>SCHEDULE 2<BR>
THE WARRANTIES</B>


<P align="left" style="font-size: 10pt">The Seller warrants to the Purchaser as follows:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Ownership of the Shares</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller is the sole legal and beneficial owner of the Shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Capacity of the Seller</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller has the requisite capacity, power and authority to enter into and perform its
obligations under this Agreement and the Tax Covenant and each other Share Purchase Document
to which it is expressed to be a party.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller has taken all necessary corporate action required by constitutional documents to
permit it to enter into and perform its obligations under this Agreement and the Tax Covenant
and each other Share Purchase Document to which it is expressed to be a party.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement constitutes and the Tax Covenant and each other Share Purchase Document to
which it is expressed to be a party will, when executed, constitute binding obligations of the
Seller in accordance with their respective terms.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The execution and delivery of, the performance by the Seller of its obligations under this
Agreement and the Tax Covenant and each other Share Purchase Document to which it is expressed
to be a party will not (or with the giving of notice or lapse of time would not):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any provision of the constitutional or organisational
documents of the Seller including its memorandum and articles of association;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in a breach of any order, judgment or decree of any court or law or
regulation of any government or governmental agency to which the Seller is a party or
by which the Seller is bound or any agreement, arrangement or obligation by which the
Seller or any member of the Sale Group is bound; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>save for those necessary in relation to the satisfaction of the BP Conditions
and the Anti-Trust Condition, require it to obtain any consent or approval of, or give
notice to or make any registration with, any Competent Authority which has not been
obtained or made at the date hereof both on an unconditional basis and on a basis which
cannot be revoked.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Company Structure, etc.</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Shares comprise the entire allotted and issued share capital of the members of the Sale
Group and all Shares have been properly allotted and issued and are fully paid up.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Shares are legally and beneficially owned by the Seller free from any Encumbrances,
except for Permitted Encumbrances, and there is no agreement, arrangement or obligation to
give or create an Encumbrance in relation to any of the Shares.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There is no agreement or commitment outstanding which calls for the allotment, issue or
transfer of, or accords to any person the right to call for the allotment or issue of, any shares
(including the Shares) or debentures in or securities of the any member of the Sale
Group.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>

<P align="center" style="font-size: 10pt">56
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information given in Schedule&nbsp;1 in relation to each member of the Sale Group is true,
accurate and not misleading, subject to any changes to the directors or secretary that have
been notified to the Purchaser.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has, and during the Relevant Period no member of the Sale Group
has had, any interest in the share capital of any other company.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither SCCL nor UK OpCo carries on any business in partnership or through a joint venture
with any other person and neither of them is a member of any corporate or unincorporated body,
undertaking or association.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All registers of each member of the Sale Group contain an accurate record of the matters
which are required to be dealt with there and, so far as the Seller is aware, no member of the
Sale Group has received any application or request for rectification of its statutory
registers or any notice or allegation that any of them is incorrect during the Relevant
Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Compliance</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group has during the Relevant Period complied with all laws,
statutes, regulations and other legal, procedural and administrative requirements applicable
to it in the United Kingdom save where failure to comply with the foregoing would not have a
material adverse effect on the Sale Group or the Business.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has received any written notification during the Relevant Period
that any non-routine investigation or inquiry is being conducted by any Competent Authority in
respect of its affairs and where there is a likelihood that such investigation or inquiry will
lead to Proceedings.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the execution and delivery of this Agreement or the Tax Covenant or any of the other
Share Purchase Documents, nor the consummation of the transactions contemplated thereby will
result in a breach of, or constitute a default (or give rise to any right of termination,
cancellation or acceleration) under, or (other than to the extent contemplated in the BP
Conditions) require any consent (which has not been obtained) under, any indenture, licence,
contract, agreement or other instrument or obligation to which the Seller or a member of the
Sale Group is a party or by which any of them or their respective assets is bound or (other
than to the extent contemplated in the BP Conditions and the Anti-Trust Condition) which
requires the approval or consent of any third party which has not been obtained.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is in compliance in all material respect with each Material Contract to which
it is a party to the extent that it has obligations thereunder (including obligations
relating to the Environment); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has not waived any material rights under any Material Contract to which it is
a party.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, there is no material default on the part of any counterparty
to any Material Contract to which a Sale Group member is a party and no counterparty to any
such Material Contract has given notice of its intention to terminate such Material Contract.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Encumbrances/Borrowings</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Details of all loans and all other financial facilities available to any member of the Sale
Group</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">57
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are set out in the Data Room or the Disclosure Letter. The amounts borrowed by each member
of the Sale Group thereunder (if any) do not exceed any limitation on their respective
borrowing power as contained in their Articles of Association or in any debenture or other
deed or contractual commitment binding upon them.</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has outstanding any loan capital, nor have they factored any of
their debts, nor engaged in any financing of a type which would not be required to be shown or
reflected in the Accounts or borrowed any money which they have not repaid, save for
borrowings disclosed in the Disclosure Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the Relevant Period, no member of the Sale Group has entered into any guarantee,
indemnity, performance bond, suretyship, letter of credit or other security to secure an
obligation of any person that is outstanding. So far as the Seller is aware, prior to the
Relevant Period no member of the Sale Group entered into any guarantee, indemnity, performance
bond, suretyship, letter of credit or other security to secure an obligation of any person
that is outstanding. The Disclosure Letter sets out a complete list of all guarantees, letters
of credit or other security granted by any person to secure the obligations of a Sale Group
member.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group is party to or has any liability under any Material Contract
which can be terminated by virtue of the transactions contemplated in this Agreement including
any change in the ownership or control of SCCL or UK OpCo or both of them.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Disclosure Letter sets out any current outstanding indebtedness (save for any
indebtedness incurred in the ordinary course of business) owed by SCCL to the Calpine Group or
any Calpine Group member. No amounts are owed by UK OpCo to the Calpine Group or any Calpine
Group member (save for amounts that may be owing from UK OpCo to SCCL).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The aggregate of all amounts (including any interest that has accrued thereon) owed by SCCL
to the Calpine Group is:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not less than the aggregate of &#091;*&#093; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not in excess of the aggregate of &#091;*&#093;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Accuracy and Adequacy of information</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The copies of the memorandum and articles of association of each member of the Sale Group in
the Data Room and attached to the Disclosure Letter are complete and accurate.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller has made available to the Purchaser in the Data Room copies of Material Contracts
(other than the transactions entered into under the Electricity Trading Agreements) to which a
Sale Group member is a party and the Disclosure Letter sets out the Data Room document
references for accurate and complete copies of such documents and agreements.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the Relevant Period, no member of the Sale Group has received written notice that it
is in breach of any Material Contract.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of the individuals identified in clause 1.2.15 are aware (having read and considered the
Warranties but without any of them being required to make any further enquiry) of any document
contained in the Data Room that is inconsistent in any material respect with any of the New
Warranties (and for these purposes the Seller shall not be fixed with the knowledge of any
other person or be treated as having any imputed or constructive knowledge).</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">58
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Accounts</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Accounts have been prepared on a consistent basis in accordance with the law and
applicable standards, principles and practices generally accepted in the United Kingdom.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Accounts show a true and fair view of the assets and liabilities of each of SCCL and UK
OpCo as at the Accounts Date and of the profits and losses of each of SCCL and UK OpCo for the
financial year ended on the Accounts Date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Events Since the Accounts Date</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Since the Accounts Date:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the business of each Sale Group member has been operated in the ordinary
course consistent with the relevant Sale Group member&#146;s usual practices;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no Sale Group member has, other than in the ordinary course of its business
consistent with its usual practices:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>acquired or disposed of, or agreed to acquire or dispose
of, an asset; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>assumed or incurred, or agreed to assume or incur, a
liability, obligation or expense (actual or contingent); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>factored, sold or agreed to sell a debt;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no Sale Group member has, other than under the Supplemental Agreement and/or
the 2005 budget and plant improvement plan disclosed in the Data Room:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>made, or agreed to make, capital expenditure exceeding in
total &#091;*&#093; ; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>incurred, or agreed to incur, a commitment or commitments
involving capital expenditure exceeding in total &#091;*&#093; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>no Sale Group member has declared, paid or made a dividend or distribution
(including, without limitation, a distribution within the meaning of the ICTA 1988)
except as provided in the Accounts.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Licences</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Sale Group has all licences (including statutory licences), authorisations, certificates
and consents necessary to carry on the Business as presently conducted and, all such licences,
authorisations, certificates and consents are valid and subsisting and are being complied with
in all material respects. No member of the Sale Group has received written notice during the
Relevant Period to the effect that, and nor is the Seller aware of any fact or circumstances
which would reasonably:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>constitute a breach of any of the terms or conditions of any such licence,
authorisation, certificate or consent; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in any such licence, authorisation or consent being revoked, suspended
or terminated.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Litigation</B></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">59
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other than as plaintiff in the collection of debts arising in the ordinary course of
business, no member of the Sale Group is engaged in any litigation or arbitration,
administrative, regulatory or criminal proceedings, whether as plaintiff, defendant or
otherwise.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Save as disclosed in the Disclosure Letter, so far as the Seller is aware (i)&nbsp;no litigation
or arbitration, administrative, regulatory or criminal proceedings as are referred to in
paragraph 10.1 have been threatened or is pending and, (ii)&nbsp;no fact or circumstance has
occurred which entitle any person to bring or commence such proceeding.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Ownership and Condition of Assets</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each asset included in the Accounts, or acquired by a Sale Group member since the Accounts
Date (other than current assets sold, realised or applied in the ordinary course of trading
and other than the Property) is owned both legally and beneficially by the relevant member of
the Sale Group as the case may be.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There is no Encumbrance (other than a Permitted Encumbrance) on, over or affecting the whole
or any part of the assets or undertaking of any member of the Sale Group (other than any asset
acquired in the ordinary course of business on terms that the property does not pass until
payment is made) and no member of the Sale Group is a party to an agreement, obligation or
commitment to give or create any such Encumbrance.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Intellectual Property</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All rights and interest in the Company Business Intellectual Property and Company Business
Know-how that are used in the Business are legally and beneficially owned by a member of the
Sale Group or the Sale Group has the benefit of them.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Particulars of all material Business Information Technology used in the Business are
contained in the Data Room and attached to the Disclosure Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company Business Intellectual Property is valid and enforceable and (if registered) has
not been declared, and the Seller has no reason to believe that it will be declared, invalid
or, if it is the subject of an application for registration or grant, the application has been
duly made and is subsisting and all renewal fees payable in respect of any of the Company
Business Intellectual Property have been paid to date during the Relevant Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Details of all material licences relating to the Company Business Intellectual Property and
Company Business Know-how and all material particulars as to registration of (and application
to register) the Company Business Intellectual Property, are set out in the Disclosure Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, none of the Company Business Intellectual Property is
currently being infringed or used without authorisation by any third party.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Business Information Technology comprises all of the information technology (including,
without limitation, hardware, software, firmware, networks and connecting media) and documents
relating thereto which are used in the Business.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">12.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Business Information Technology is owned and operated by and is under the control of a
Sale Group member and is not wholly or partly dependant on any facilities which are not under
the ownership, operation or control of a Sale Group member and is adequate for the needs of
the Business as conducted as at the Completion Date.</TD>
</TR>

</TABLE>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Insurances</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">13.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Calpine Group has obtained and is maintaining the insurance cover for the Facility.
Details of the insurance policies in respect of which each member of the Sale Group has an
interest that are material to the Business are included in the Data Room and set out in the
Disclosure Letter and so far as the Seller is aware, all such policies are in full force and
effect and are not void or voidable and, save as disclosed, no claims are outstanding and, so
far as the Seller is aware, no event has occurred giving rise to any claim which would have a
material adverse affect on the ability of the Sale Group to carry on the Business.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Employment</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A list of the names, positions, dates of birth, dates of commencement of continuous
employment, salary of, and profits, and other benefits (other than those referred to in
paragraph 14.8 below) available to, Employees as at the date of this Agreement are set out in
the Disclosure Letter. Save as disclosed in the Disclosure Letter, no member of the Sale
Group has made any representations, offers or promises to any of the Employees to vary any of
the foregoing.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All contracts of employment with Employees provide &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL does not have any employees. All persons employed in the Sale Group are employed by UK
OpCo. So far as the Seller is aware, UK OpCo has complied in all material respects with all
statutes and regulations (including for the avoidance of doubt Regulation&nbsp;10 of the Transfer
Regulations) relating to the terms and condition of employment of the Employees during the
Relevant Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copies of collective and recognition agreements (currently in force and applicable) in
relation to the Employees are attached to the Disclosure Letter. There is no material dispute
with any trade union, works counsel or representative body, or, so far as the Seller is aware,
pending or threatened in relation to any member of the Sale Group.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group is involved in any litigation, arbitration, mediation,
administration or criminal proceeding in connection with or arising with any Employee arising
from their employment by UK OpCo and the performance of their duties in relation the Sale
Group.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>UK OpCo has no employees other than those engaged wholly in the Business and all of the
employees engaged in the Business are employed by UK OpCo.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There are no consultants employed or engaged on a continuous basis in the Business.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Employee will be entitled to any bonus, incentive payment, compensation or other benefit
or payment as a consequence of the transactions contemplated by this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Save for the group personal pension with Scottish Equitable (the &#147;<B>GPPP</B>&#148;), no member of the
Sale Group has any liabilities or contingent liabilities in respect of any scheme or
arrangement for the provision of pensions or other retirement or death benefits, or has
announced any proposal to establish such a scheme or arrangement. So far as the Seller is
aware, the Sale Group has complied with all its obligations in respect of the GPPP, and no
employee or former employee of the Sale Group has been promised any particular level of
benefits in respect of the GPPP.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of the Sale Group, the Seller or any member of the Calpine Group has agreed or</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>proposed to provide any Employee with any benefit, compensation, damages, redundancy payment
or other payment (save for payment in respect of the applicable notice period and/or a
statutory redundancy payment) which might arise or be payable on or as a consequence of the
termination of an Employee&#146;s employment.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has provided, or agreed to provide, a gratuitous payment or
benefit to a director, officer or employee or to any of their dependants.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller and the Sale Group is aware there is no form of industrial action,
strike or other dispute threatened or pending between any member of the Sale Group and any
Employee or trade union or other representative of any of the Employees.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">14.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Sale Group member operates any share incentive scheme, share option scheme, profit
sharing, bonus or other incentive scheme.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Tax</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group has complied in all material respects with all its obligations
under any applicable laws, rules and regulations relating to Tax (including withholding of
taxes under any law) and has, within the time and the manner prescribed by law, withheld and
paid over to the proper Tax Authority all amounts required to be so withheld and paid over
under applicable laws.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All notices, returns, computations and registrations of each member of the Sale Group for any
Tax purpose have been made within the requisite periods, on a proper basis and are true,
correct and complete. Each member of the Sale Group has paid in full all Taxes that have
become due for payment for all periods ending on or prior to the date of this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>None of the notices, returns, computations and registrations of any member of the Sale Group
for the purposes of Taxation and nothing contained in any such notice, return, computation or
registration is, nor, so far as the Seller is aware, is likely to be, the subject of any
dispute with any Tax Authority and no member of the Sale Group is and no member of the Sale
Group expects to be involved in any dispute in relation to Taxation. Each member of the Sale
Group has duly submitted all claims and disclaimers which have been assumed to be made for the
purposes of the Accounts.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has been subject to any non-routine visit, audit, investigation,
discovery or access order by any Tax Authority during any accounting period ending on or
within three (3)&nbsp;years before the date hereof and, so far as the Seller is aware, there are no
circumstances existing which make it likely that a non-routine visit, audit, investigation,
discovery or access order will be made.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Sale Group member has properly operated the Pay As You Earn system (including in
relation to national insurance contributions) and has complied with each reporting obligation
in connection with benefits provided (whether by the Sale Group Member or by any other person)
for a Sale Group member&#146;s directors, other officers and employees and former directors, other
officers and employees.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group has without the prior consent of the Treasury carried out or
agreed to carry out any transaction under section 765 of ICTA 1988 which would be unlawful in
the absence of such consent and each member of the Sale Group has, where relevant, complied
with the requirements of section 765A(2) of ICTA 1988 (supply of information on movement of
capital within the EU) and any regulations made or notice given thereunder.</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group has been only resident in the United Kingdom for Taxation
purposes and has not been liable to corporation tax (or the equivalent thereto in any
jurisdiction outside the United Kingdom) in any jurisdiction other than the United Kingdom,
during the Relevant Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group has sufficient records relating to past events to permit
accurate calculation of the Taxation liability which would arise upon a disposal or
realisation on Completion of each asset owned by it at the Accounts Date or acquired by it
since that date but before Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Disclosure Letter gives details of every written agreement that a member of the Sale
Group has entered into with any Calpine Group member for the claim or surrender of group
relief under the provisions of Chapter&nbsp;IV of Part&nbsp;X of ICTA 1988. No member of the Sale Group
will make or agree to make or accept any such surrender to or from a member of the Calpine
Group after the date of this Agreement, save to the extent such surrender is made after
Completion in accordance with the Tax Covenant.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No liability for Taxation will or may arise by reason of any member of the Sale Group
ceasing to be a member of a group of companies (as defined in section 170 of TCGA 1992) in
connection with the sale of the Shares contemplated by this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each member of the Sale Group is a taxable person duly registered for the purposes of VAT.
Each member of the Sale Group has complied with all statutory provisions, rules, regulations,
orders and directions in respect of VAT, has promptly submitted accurate returns and maintains
full and accurate VAT records. No member of the Sale Group has ever been subject to any
interest, forfeiture, surcharge or penalty nor been given any notice under section 59 or 64 of
VATA nor been given a warning under section 76(2) of VATA nor has any member of the Sale Group
been required to give security under paragraph 4 of Schedule&nbsp;11 to VATA. No member of the
Sale Group is or has been treated as a member of a group for the purposes of VAT, nor has any
member of the Sale Group applied for such treatment.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group, nor a company of which a member of the Sale Group is a relevant
associate within the meaning of paragraph 3(7) of Schedule&nbsp;10 to the VATA (election to waive
exemption), has elected to waive exemption under paragraph 2 of that Schedule&nbsp;10 in relation
to any land except as disclosed in the Disclosure Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All documents to which any member of the Sale Group is a party made prior to the date hereof
and which form part of the relevant member of the Sale Group&#146;s title to any asset or in the
enforcement of which the relevant member of the Sale Group is or may be interested and which
are subject to stamp or similar duty, have been duly stamped and adjudicated (as the case may
be).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Sale Group member holds an asset that was transferred to it by an instrument which was
executed in the three years ending on the date of this Agreement and to which section 111 or
113 of the Finance Act 2002 could apply. No Sale Group member holds or has held a chargeable
interest that was acquired by it under a relevant transaction in the three years ending on the
date of this Agreement and no Sale Group member holds or has held a chargeable interest that
is or was derived from a chargeable interest so acquired. For the purposes of this warranty:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>chargeable interest</B>&#148; has the same meaning as in Part&nbsp;4 of the Finance Act 2003;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>reconstruction relief</B>&#148; has the same meaning as in Part&nbsp;2 of Schedule&nbsp;7 to the Finance Act
2003; and</TD>
</TR>

</TABLE>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>relevant transaction</B>&#148; means a transaction: (a)&nbsp;that is exempt from stamp duty land tax by
virtue of paragraph 1 of Schedule&nbsp;7 to the Finance Act 2003 (group relief) or by virtue of
reconstruction relief, or (b)&nbsp;that is subject to a reduced rate of stamp duty land tax by
virtue of acquisition relief.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL is a taxable person and is duly registered for the purposes of the Climate Change Levy
(pursuant to Schedules 6 and 7 to the Finance Act 2000). SCCL has complied with all statutory
provisions, rules, regulations, orders and directions made in respect of the Climate Change
Levy, has promptly submitted accurate returns and maintains full and accurate records
concerning the Climate Change levy. SCCL has never been, and, so far as the Seller is aware,
is not likely to be, subject to any surcharge, interest, forfeiture or penalty under Schedules
6 or 7 to the Finance Act 2000.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The total capital expenditure for the Facility as at 31 December&nbsp;2004 was &#091;*&#093; . This
figure is the sum of capital expenditure of &#091;*&#093; as shown in the Accounts. The written down
allowances to which the Sale Group was entitled as at 1 January&nbsp;2005 are as follows:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>

<TD width="3%" nowrap align="left"><div style="margin-left:15px">15.16.1</div></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of plant and machinery, not less than &#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><div style="margin-left:15px">15.16.2</div></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of long life assets, not less than &#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><div style="margin-left:15px">15.16.3</div></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of industrial building allowances, not less than &#091;*&#093; .</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.17</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Except as disclosed in the Disclosure Letter, to the best of the Seller&#146;s knowledge,
information and belief, no Sale Group member is or has been a party to or otherwise involved
in any transaction, agreement or arrangement (other than a transaction, agreement or
arrangement between Sale Group members) which was entered into otherwise than by way of a
bargain at arm&#146;s length, or any transaction, agreement or arrangement (other than a
transaction, agreement or arrangement between Sale Group Members), whether or not entered into
by way of a bargain at arm&#146;s length, under which it has been or is or may be required to make
any payment for any goods, services or facilities provided to it which is in excess of the
market value of such goods, services or facilities or under which it has been, or is or may be
required to provide goods, services or facilities for a consideration which is less than the
market value of such goods, services or facilities, in each case in circumstances where
Schedule&nbsp;28AA Taxes Act applies or applied to the relevant transaction, agreement or
arrangement by virtue of paragraph 1(1) of that Schedule.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">15.18</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Environmental</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, the Sale Group currently complies with all Environmental Laws
in all material respects insofar as they relate to the Business and, so far as the Seller is
aware, has so complied during the Relevant Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Copies of material Environmental Approvals (excluding for the avoidance of doubt any
approvals, consents or the permissions required under the Electricity Act 1989) held by the
members of the Sale Group necessary for the carrying on of the Business as now carried on
(&#147;<B>Environmental Approvals</B>&#148;) and commissioned during the Relevant Period are attached to the
Disclosure Letter. So far as the Seller is aware, all such Current Environmental Approvals
are in full force and effect and are being complied with in all material respects.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, all Environmental Approvals (excluding for the avoidance of
doubt any approvals, consents or permissions required under the Electricity Act 1989)</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">64
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>necessary for the Business as now carried on have been obtained. No member of the Sale
Group has received any written notice during the Relevant Period which is still outstanding
from any third party (including any Competent Authority) nor is the Seller aware of any
facts or circumstance:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indicating that there are investigations, enquiries or proceedings outstanding or
pending against any member of the Sale Group that are likely to result in the
suspension, cancellation, refusal, variation, amendment or revocation of any Current
Environmental Approval;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>alleging or claiming that any member of the Sale Group will be liable under
Environmental Law to undertake or pay for any material remediation including any
material remediation required to be undertaken at or in the vicinity of the Property;
and/or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">16.3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indicating that any litigation or arbitration, administrative, regulatory or criminal
proceedings as are described in paragraph 16.4 are pending or threatened against the
Sale Group or that such proceedings are likely to be brought against the Sale Group.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group is engaged in any litigation or arbitration, administrative,
regulatory, or criminal proceedings involving any liability arising under or pursuant to any
Environmental Law, whether as plaintiff, defendant or otherwise.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There are no material environmental audit reports or any material environmental assessments
relating to the assets and business of the Sale Group prepared in the last twelve (12)&nbsp;months
other than those which have been supplied in the Data Room or are attached to the Disclosure
Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">16.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, no physical works or physical upgrades to the Facility (other
than as provided for in the Accounts or Completion Balance Sheet) are reasonably anticipated
in the next 15&nbsp;months in order to comply with Environmental Laws or to maintain or obtain any
Environmental Approval.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Property</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The factual information provided by the Seller for the purpose of the preparation of the
Certificate of Title was true and complete in all material respects at the date upon which it
was delivered to Addleshaw Goddard and remains so at the date of delivery of the Certificate
of Title to the Purchaser on Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Property comprises all the land and buildings currently owned, used or occupied by the
Sale Group</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">17.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other than in respect of the Property, the Sale Group has no actual or contingent liability
to any third party in its capacity as present or formal freeholder, leaseholder or surety of
any freehold or leasehold land.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Insolvency</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No petition has been presented, no order has been made, or resolution passed for the winding
up of the Seller or a Sale Group member or for the appointment of a liquidator or provisional
liquidator to the Seller or a Sale Group member.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">65
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No administrator has been appointed in relation to the Seller or a Sale Group member. No
notice has been given or filed with the court of an intention to appoint an administrator to
the Seller or a Sale Group member. No petition or application has been presented or order
made for the appointment of an administrator in respect of the Seller or a Sale Group member.
No receiver or administrative receiver has been appointed, nor any notice given of the
appointment of any such person, over the whole or part of the Seller&#146;s or a Sale Group
member&#146;s business or assets.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No moratorium has been sought or has been granted under section 1A of the Insolvency Act 1986
in respect of the Seller or a Sale Group member. No voluntary arrangement has been proposed
under section 1 of the Insolvency Act 1986 in respect of the Seller or a Sale Group member.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Seller nor any Sale Group member is unable to pay its debts within the meaning of
section 123 of the Insolvency Act 1986. There are no unsatisfied written demands that have
been served on the Seller or a Sale Group member pursuant to section 123 (1)(a) of the
Insolvency Act 1986. There is no unsatisfied judgment or court order outstanding against the
Seller or a Sale Group member.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No compromise or arrangement has been proposed, agreed to or sanctioned under section 425 of
the Act in respect of the Seller or a Sale Group member, nor has any application been made to,
or filed with, the court for permission to convene a meeting to vote on a proposal for any
such compromise or arrangement. Neither the Seller nor any Sale Group member has proposed or
agreed to a composition, compromise, assignment or arrangement with any of its creditors which
would prevent the sale and purchase of the Shares pursuant to this Agreement.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No distress, execution, attachment, sequestration or other process has been levied on an
asset of the Seller or a Sale Group member that remains undischarged.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, no action is being taken by the Registrar of Companies to
strike the Seller or a Sale Group member off the register under section 652 of the Act.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, no Sale Group member has at any time during the two years
immediately prior to the date of this Agreement:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">18.8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>entered into a transaction with any person at an undervalue (as referred to in
section 238(4) of the Insolvency Act 1986); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">18.8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>been given a preference by, or given a preference to, any person (as referred to in
section 239(4) of the Insolvency Act 1986).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Agreement, each Share Purchase Document to be entered into by the Seller or a Sale Group
member and the transactions contemplated hereunder and thereunder are being entered into by
the Seller and such Sale Group member in good faith and, so far as the Seller is aware, do not
constitute:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">18.9.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a transaction with any person at an undervalue (as referred to in section 238(4) of
the Insolvency Act 1986 or the equivalent or analogous provisions of law in any other
jurisdiction); or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">18.9.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a preference by, or given to a person (as referred to in section 239(4) of the
Insolvency Act 1986 or the equivalent or analogous provisions of law in any other
jurisdiction).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>

<P align="center" style="font-size: 10pt">66
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">18.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Seller nor any Sale Group member is, in any jurisdiction, subject to any other
procedures or steps which are analogous to those set out above in this paragraph 18. The
execution and delivery of this Agreement and each Share Purchase Document by the Seller, and
the performance of its obligations under this Agreement and each Share Purchase Document will
not result in the Seller or any Sale Group member being or becoming subject to any other
procedures or steps which are analogous to those set out in sub-paragraphs 18.1, 18.2, 18.4
and 18.6 above in any jurisdiction.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Health and Safety</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, the Sale Group currently complies in all material respects
with all H&#038;S Laws insofar as they relate to the Business and, so far as the Seller is aware,
has so complied during the Relevant Period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware there are no facts or circumstances indicating that any
litigation or arbitration, administrative, regulatory or criminal proceedings as are described
in paragraph 19.3 are pending or threatened against the Sale Group.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No member of the Sale Group is engaged in any litigation or arbitration, administrative,
regulatory or criminal proceedings involving any liability arising under or pursuant to any
H&#038;S Law whether as plaintiff, defendant or otherwise.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">19.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There are no material health and safety audit reports or material health and safety
assessments relating to the assets and business of the Sale Group prepared in the last twelve
months other than those which have been supplied in the Data Room or are attached to the
Disclosure Letter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>20.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Climate Change</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL has obtained a CHPQA Certificate (as defined in The Climate Change Levy (Combined Heat
and Power Stations) Prescribed Conditions and Efficiency Percentages Regulations 2001 SI 2001
No 1140) in relation to the Facility and has complied with all obligations necessary to
maintain such certification.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL has in full force and effect in relation to the Facility a valid Secretary of State
(Combined Heat and Power) Exemption Certificate issued pursuant to paragraph 148 of Schedule&nbsp;6
to the Finance Act 2000 and has done nothing, nor omitted to do anything, that may result in
that certificate becoming invalid, varied or otherwise ineffective.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">20.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SCCL has claimed all CHP LECs made available to it in relation to the Facility and has done
nothing nor omitted to do anything that may lead to the validity of any CHP LECs being
restricted or CHP LECs not being issued in the period following the Completion Date.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>21.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Facility/Project specific warranties</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A complete and accurate copy of the Supplemental Agreement dated 21 October&nbsp;2004 between SCCL
and &#091;*&#093; has been made available in the Data Room.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A complete and accurate copy of the letter of credit provided by or on behalf of &#091;*&#093; to
SCCL as security in respect of its completion of the &#091;*&#093; at the Facility ( &#091;*&#093; ) has been
made available in the Data Room.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A complete and accurate copy of the Settlement Agreement dated 21 October&nbsp;2004 between SCCL
and &#091;*&#093; has been made available in the Data Room.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">67
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, no Remedy Event (as that term is defined in the Site Interface
Agreement) has occurred at any time during the Relevant Period and the Seller is not aware of
any fact or circumstance which would result in a Remedy Event.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at the date of this Agreement, &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>As at the date of this Agreement, &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The list of spare parts disclosed in the Data Room shows a complete and accurate record of
the spare parts available at the Facility as at 18 May&nbsp;2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Disclosure Letter sets out a true, complete and accurate list of SCCL&#146;s outstanding
transactions under the GTMAs as at 23 May&nbsp;2005.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Facility has Trading Unit Status (as that term is defined in the Balancing and Settlement
Code dated 14 August&nbsp;2000).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The maintenance programme due to be carried out on the Facility during 2005 has been
commenced by SCCL and, so far as the Seller is aware, neither any member of the Sale Group nor
any Seller Party intends to &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware, SCCL has not, since receipt of the letter addressed to SCCL
&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">21.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>So far as the Seller is aware (without having made any enquiry) the Warranted Replies were,
when given, true and accurate in all material respects.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">68
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>SCHEDULE 3<BR>
LIMITATION OF LIABILITY</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Application of this Schedule</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to paragraph 1.2 of this Schedule&nbsp;3, the parties intend that the provisions of this
Schedule&nbsp;3 apply to this Agreement and, where so stated to the other Share Purchase Documents.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paragraphs 2.1, 2.3 and 2.4 of this Schedule&nbsp;3 shall not apply to Fundamental Claims.
Paragraphs 2.7, 3, 4, 5.4, 5.6 and 6 shall not apply to Tax Claims save that paragraphs 2.7, 4
and 6 shall apply to Tax Warranty Claims.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Limitation of Liability</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to bring any Claim against any of the Seller Parties and
the Seller Parties shall not be liable in respect of any Claim unless the relevant Seller
Party receives notice of such Claim from the Purchaser (such notice to contain so far as is
reasonably practicable having regard to, amongst other things, the information available to
the Purchaser information concerning the matter giving rise to the Claim, the nature of the
Claim and the amount of the Claim or an estimate of the amount of such Claim), such notice to
be received on or before:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of Claims (other than Tax Claims or Claims
under clause 8.12), the date falling 18&nbsp;months immediately following
Completion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of Claims under clause 8.12, the later of (i)
the date falling 18&nbsp;months immediately following Completion, and (ii)&nbsp;the
date falling 9&nbsp;months after the date the Purchaser is first entitled
pursuant to the provisions of clause 8.14 to claim under clause 8.12; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of Tax Claims, the date falling seven years
after the Completion Date.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The liability of a Seller Party for a Claim in respect of which a notice is given by the
Purchaser to such Seller Party in accordance with paragraph 2.1 of this Schedule&nbsp;3 shall (if
such Claim has not been previously satisfied, settled or withdrawn) absolutely determine and
any Claim made therein be deemed to have been withdrawn (and no new Claim may be made in
respect of the facts, event, matter or circumstance giving rise to such withdrawn Claim)
unless legal proceedings in respect of such Claim shall have been commenced within 12&nbsp;months
of the date of service of such notice (or such other period as may be agreed by the Purchaser
and the Seller in writing) or, if the Purchaser is using its reasonable efforts to enforce a
claim against its insurers in accordance with paragraph 5.5 of this Schedule&nbsp;3, 18&nbsp;months of
the date of service of such notice. For the purpose of this paragraph 2.2, proceedings shall
not be deemed to have commenced unless they shall have been properly issued and validly served
upon the Seller.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to damages in respect of any Claim under this Agreement
or under any other Share Purchase Documents, and the Seller shall have no liability in respect
of any Claim by the Purchaser unless:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; ;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">69
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to paragraph 1.2 of this Schedule&nbsp;3,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>without prejudice to paragraph 2.4(b) of this Schedule&nbsp;3,
the total aggregate liability of the Seller in respect of all Claims under
or in respect of clause 8.12 and all Environmental Indemnity Claims &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the total aggregate liability of the Seller, the Seller
Guarantor and Calpine under or in connection with this Agreement and the
other Share Purchase Documents shall not &#091;*&#093;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The total aggregate liability of Seller Parties under or in connection with a Fundamental
Claim shall not exceed the Unadjusted Aggregate Purchase Price.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purposes of sub-paragraphs 2.3 and 2.4:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Claims arising directly from the same fact or event (and,
in the case of a Claim under the Tax Covenant or Tax Warranty Claims
relating to, or derived from the application of the same section, chapter or
part of the Taxes Acts to the same subject matter) shall be treated as one
individual Claim rather than a series of individual Claims; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller shall be &#147;finally liable&#148; for a Claim only if
the amount of such Claim is agreed between the Purchaser and the Seller, or
is the subject of a judgment of a court of competent jurisdiction that is
not appealable.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing in this Agreement shall obviate any duty of the Purchaser to mitigate all and any
Losses howsoever arising in respect of any Claim (other than a Tax Claim under the Tax
Covenant).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Seller Party Exclusions</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No Seller Party shall be liable for any Claim (other than a Tax Claim, to which clause 3.1 of
the Tax Covenant shall apply) as follows:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and to the extent that the matter is specifically
allowed, provided or reserved for in the Accounts;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and to the extent that the same occurs, is
attributable to, or is increased as a result of, any legislation not in
force at Completion or any change of law, regulation, rule, directive,
requirement of administrative practice or any change in rates of Tax or the
published practice of any Tax Authority or any change of any Competent
Authority&#146;s interpretation or application of any legislation, which in each
case is not in force or effect at Completion or which takes effect
retrospectively. This paragraph shall not apply to changes in Environmental
Law (as defined in Schedule&nbsp;8) for the purpose of any Environmental
Indemnity Claim under Schedule&nbsp;8;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if and to the extent that the amount of any Claim (other
than a Tax Claim) is increased by any delay in the Purchaser making any
Claim (other than a Tax Claim);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of any matter resulting from a change in the
accounting policies or practices of the Purchaser or any member of the
Purchaser&#146;s Group introduced or having effect after Completion;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">70
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to the extent that the Claim (other than a Tax Claim)
would not have arisen but for (or to the extent the same is increased by
reason of) a breach by the Purchaser of any of its obligations under this
Agreement or the Share Purchase Documents; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in respect of any liability which is contingent unless
and until such contingent liability becomes an actual liability and is due
and payable.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable in respect of any Claim other than a Tax Claim, to which
clause 3.1 of the Tax Covenant shall apply) to the extent that such Claim (other than a Tax
Claim) is caused or increased by:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any voluntary act, omission, transaction, or arrangement
carried out by or at the written request of the Purchaser before Completion
or is required under the terms of this Agreement or the Share Purchase
Documents;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any voluntary act, omission, transaction, or arrangement
carried out by the Purchaser or by a member of the Purchaser&#146;s Group after
Completion otherwise than (a)&nbsp;in the ordinary course of business of the Sale
Group as the same was conducted prior to Completion; (b)&nbsp;pursuant to a
legally binding commitment entered into before Completion; (c)&nbsp;in order to
mitigate, avoid or discharge a liability relating to or arising in respect
of a period prior to Completion provided that in the case of an
Environmental Indemnity Claim, such mitigation complies with paragraph 5 of
Schedule&nbsp;8; (d)&nbsp;in order to comply with any applicable law or regulation; or
(e)&nbsp;at the written request or with the written consent of the Seller;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any admission of liability made in breach of the
provisions of this Schedule or Schedule&nbsp;8 after the date hereof by the
Purchaser or on its behalf or by a member of the Purchaser&#146;s Group or on its
behalf on or after Completion; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any reorganisation or change in ownership of the
Purchaser or any member of the Purchaser&#146;s Group other than in accordance
with the transactions the subject of this Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to claim or be paid under any Claim relating to any
Environmental Approval, Environmental Laws or Environmental matters or in respect of any
Environmental Indemnity Claim to the extent that the relevant Claim would not have resulted
but for the Purchaser or any member of the Purchaser&#146;s Group or any person on their behalf
making a notification or disclosing any information or matter to any Competent Authority or
any other person after Completion, except where such notification or disclosure is expressly
required under Environmental Law or is a condition of an Environmental Approval or is required
to avoid or abate an Emergency or having regard to prudent environmental practice, is made
with the prior consent of the Seller (such consent not to be unreasonably withheld or
delayed).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Disclosure</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall not be entitled to claim that any fact, matter or circumstance which
would otherwise give rise to a Claim in respect of the Warranties (other than a Claim under
the Tax Covenant) where, in relation to any fact, matter or circumstance forming the basis of
the Claim:</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">71
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Purchaser had actual knowledge of it on or before the
date of this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such fact matter or circumstance was fairly disclosed in
the Disclosure Letter (which in respect of the New Warranties only, shall
be deemed to include all the documents comprising the Data Room save that,
in respect only of the New Warranties in paragraphs 16.3 and 16.4 of
Schedule&nbsp;2, the Disclosure Letter shall not be deemed to include all the
documents comprising the Data Room to the extent that such fact, matter or
circumstance is material in the context of the Business taken as a whole),
and for this purpose &#147;fairly disclosed&#148; means disclosed in such manner and
in such detail as to enable a reasonable purchaser in the same position as
the Purchaser to make an informed assessment of the fact, matter or
circumstance concerned;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was a matter specifically provided for in this Agreement;
or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>was a matter or thing hereafter required to be done or
required to be omitted to be done pursuant to this Agreement (or any other
Share Purchase Document or any other subsequent agreement in writing between
the Purchaser and the Seller) or otherwise done at the express request in
writing or with the express approval in writing of, or on behalf of, the
Purchaser.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other than as provided in paragraph 4.1, no other knowledge relating to SCCL or UK OpCo
(actual, constructive or imputed) shall prevent or limit a Claim made by the Purchaser in
respect of the Warranties.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Double Recovery</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Neither the Purchaser nor those deriving title from the Purchaser on or after Completion
shall be entitled to recover damages or obtain payment, reimbursement or restitution more than
once in respect of any Claim or under the provisions of any Share Purchase Documents.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable under any of the Warranties to the extent that the Purchaser
or the relevant member of the Purchaser&#146;s Group has recovered any amount in respect of the
fact, matter or event that gives rise to a breach of thereof any would otherwise be the
subject matter of a Claim or under any of the Share Purchase Documents and vice versa.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall, subject to paragraph 2 of this Schedule&nbsp;3, be entitled to bring Claims
under one or more applicable Warranties in respect of the same matter fact or circumstance but
any liability in respect of such matter fact or circumstance shall be calculated without
duplication of recovery by reason of such matter fact or circumstance constituting a breach of
more than one Warranty.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where the Purchaser or any member of the Purchaser&#146;s Group is at any time entitled to recover
from some other person any sum in respect of any matter giving rise to a Claim (other than a
Tax Claim, to which clause 6 of the Tax Covenant shall apply) the Purchaser shall, and shall
procure that the relevant member of the Purchaser&#146;s Group shall, use all reasonable endeavours
to enforce such recovery and, in the event that the Purchaser or any member of the Purchaser&#146;s
Group recovers any amount from such other person, the amount of any Claim against the Seller
shall be reduced by the amount recovered, less all reasonable costs (including all legal
costs), charges and expenses reasonably incurred by the Purchaser or such member of the
Purchaser&#146;s Group in recovering that sum from such other person or if that</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">72
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sum is greater than the amount of the relevant Claim, the Claim shall be extinguished
PROVIDED THAT the Purchaser shall not be required to commence any legal proceedings where
the Purchaser has validly assigned all of its rights in relation to the relevant Claim to
the Seller in a manner which entitles the Seller to the same benefits in respect of such
rights as the Purchaser had.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If, in respect of any matter which would give rise to a breach of the Warranties, the
Purchaser or the relevant member of the Purchaser&#146;s Group is entitled to claim under any
policy of insurance, then the Purchaser shall make such a claim against its insurers and use
all reasonable endeavours to enforce such claim. The amount actually recovered from any such
insurance claim shall then be applied to reduce or extinguish any Claims for breach of the
Warranties in the manner described in clause 14.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If at any time a Seller Party pays to the Purchaser or any member of the Purchaser&#146;s Group an
amount pursuant to a Claim (other than a Tax Claim, to which clause 6 of the Tax Covenant
shall apply) and the Purchaser or a member of the Purchaser&#146;s Group subsequently recovers from
some other person any sum in respect of any matter giving rise to such Claim (other than a Tax
Claim) the Purchaser shall pay, or shall procure that the relevant member of the Purchaser&#146;s
Group pays, to the Seller an amount equal to the lesser of (i)&nbsp;the amount paid by the Seller
to the Purchaser or member of the Purchaser&#146;s Group in respect of such Claim and (ii)&nbsp;the sum
(including interest (if any)) recovered from such other person, in each case after deduction
of any reasonable costs (including all legal costs), charges and expenses reasonably incurred
in obtaining such recovery.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nothing in this paragraph 5 shall oblige the Purchaser to seek to recover any amounts from a
third party in respect of any matter giving rise to a Claim before or as a condition to
bringing a Claim against any Seller Party.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Remedy</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limitation to the Purchaser&#146;s rights under clause 3.6 and except in relation to a
Claim in an action for damages brought under the Tax Covenant, the Purchaser shall have no
rights or remedy whatsoever in respect of any fact, matter or circumstance constituting a
breach of Warranty except pursuant to a Claim for such breach under this Agreement (or any
Claim under any other provision of this Agreement or any claim under any provision of the
Share Purchase Documents in each case) in an action for damages, and the Purchaser hereby
irrevocably waives, releases, discharges and acquits the Seller from any other causes of
action under or in connection with Share Purchase Documents and the transactions contemplated
thereby whether based on statute, regulation or common law, under or in connection with Share
Purchase Documents and the transactions contemplated thereby in respect of the fact, matter or
circumstance giving rise to the breach except for breach of contract under or otherwise as
provided in the Share Purchase Documents and other than in the case of fraud or fraudulent
misrepresentation.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without limitation to the Purchaser&#146;s rights under clause 3.6, no party to this Agreement
shall be entitled to rescind or repudiate this Agreement and the Seller shall not be liable
(in equity or tort, under the Misrepresentation Act 1967 or in any other way) in respect of
any misrepresentation provided nothing herein shall affect either party&#146;s rights in respect of
fraud or a fraudulent misrepresentation.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall have no liability in respect of a breach of Warranty notified to the Seller
pursuant to paragraph 2 if such breach is remedied within 30&nbsp;days of the date such notice is
served and no loss is suffered by the Purchaser in respect thereof.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">73
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Tax Claims</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Clauses 3.1 and 6 of the Tax Covenant shall apply to Tax Warranty Claims.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Priority of Payments in respect of Claims</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All amounts due under this Agreement in respect of Claims for breach of Warranty shall be
paid to the Purchaser in the following manner:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All amounts due under this Agreement or the Tax Covenant in respect of Claims for anything
other than breach of Warranty shall be paid to the Purchaser in the following manner:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser undertakes to seek all payments in respect of Claims in accordance with the
priority set out in paragraphs 8.1 and 8.2. Nothing in this paragraph 8 shall restrict the
ability of the Purchaser to serve a Withholding Notice (as defined in the Escrow Agreement) in
accordance with the terms of the Escrow Agreement.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">74
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>SCHEDULE 4<BR>
COMPLETION ARRANGEMENTS</B>



<P align="center" style="font-size: 10pt"><B>PART I</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall procure that the following board meetings of the Sale Group are held to
pass, inter alia, resolutions in relation to the following matters:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>each of the persons nominated by the Purchaser in writing to the Seller prior to Completion
be appointed as directors, as the Purchaser shall direct, such appointments to take effect
immediately;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the resignations of each the directors proposed by the Purchaser in writing to the Seller
prior to Completion be tendered and accepted so as to take effect immediately;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the transfer(s) relating to the Shares be approved, subject to Completion, for registration
and (subject only to the transfer being duly stamped) the Purchaser registered as the holder
of the Shares concerned in the register of members; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the resignation of the existing auditors and appointment of new auditors nominated by the
Purchaser to be effective immediately after Completion.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Following the performance by the Purchaser of its obligations under paragraphs 1 and 2 of
Part&nbsp;II of this Schedule&nbsp;4 and simultaneously with the Purchaser performing its obligations
under paragraphs 3, 4 and 5 of Part&nbsp;II of this Schedule&nbsp;4, the Seller shall deliver (or
procure the delivery of) to the Purchaser or the Purchaser&#146;s Solicitors:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a copy (certified by the secretary of the Seller to be a true copy of a resolution in force
at Completion) of the resolution of the directors of the Seller which authorised the execution
and delivery of, and the performance by the Seller of its obligations under, this Agreement
and each of the other documents to be executed by the Seller pursuant to this Agreement
(unless previously delivered);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>duly executed transfers in respect of the Shares in favour of the Purchaser (or such person
as the Purchaser may nominate), share certificates for the Shares in the name of the relevant
transferors and any power of attorney under which any transfer is executed on behalf of the
Seller;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the Tax Covenant duly executed by the Seller and the Seller Guarantor;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the Escrow Agreement duly executed by the Seller;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the &#091;*&#093; duly executed by the relevant members of the Calpine Group;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Certificate of Title and the title deeds, if any, for the Property;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.7</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>irrevocable powers of attorney executed by the Seller in favour of the Purchaser, enabling
the Purchaser to exercise all voting and other rights attaching to the Shares pending
registration of the transfers of the Shares;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.8</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the letters of resignation in the Agreed Form executed as a deed by each of the persons
(other than the BP Director) designated by the Purchaser in writing to the</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">75
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Seller prior to Completion to retire as a director or secretary of a member of the Sale
Group and presented to the board meetings referred to in paragraph 1 of this Part&nbsp;I;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.9</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a letter of resignation in the Agreed Form executed by the existing auditors of each member
of the Sale Group with a statement, so far as applicable, that there are no circumstances
connected with such resignation which they consider should be brought to the attention of the
members or creditors of such member of the Sale Group and presented to the board meetings
referred to in paragraph 1 of this Part&nbsp;I;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.10</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a legal opinion from Skadden, Arps, Slate, Meagher &#038; Flom (UK)&nbsp;LLP relating to the due
execution by the Seller Guarantor of the Share Purchase Documents to which it is a party;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.11</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certified copies of the minutes of the duly held board meetings of the members of the Sale
Group (as referred to in paragraph 1 of this Part&nbsp;I of Schedule&nbsp;4);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.12</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all the statutory (duly written up to date) and other books and records of each member of the
Sale Group in its possession or under its control;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.13</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evidence in a form satisfactory to the Purchaser acting reasonably that all amounts under the
Luxco Loan Agreement will be prepaid on the Completion Date;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.14</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a release duly executed by the Seller releasing SCCL from its obligations under the
promissory note dated 24 August&nbsp;2004 (as amended) issued by SCCL in favour of the Seller (the
&#147;<B>Promissory Note</B>&#148;) in a form satisfactory to the Purchaser acting reasonably;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.15</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a release duly executed by Luxco releasing SCCL from its obligations under the Luxco Loan
Agreement in a form satisfactory to the Purchaser acting reasonably;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.16</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evidence of releases (in a form satisfactory to the Purchaser acting reasonably) of any and
all security over the Shares or the assets of UK OpCo or SCCL including any such security
arrangement referred to in the Disclosure Letter (and the Purchaser will provide all such
assistance as the Seller may reasonably request to procure such releases); and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.17</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a duly executed equitable assignment (in a form satisfactory to the Purchaser acting
reasonably) of the benefit of all the confidentiality undertakings given by any other
potential acquirer of the Shares or the shares in the Seller or the Business (to the extent
such undertakings relate to information concerning the Sale Group and/or the Business) and
confirmation in writing that it has required each counterparty to any such confidentiality
undertaking to return or destroy (i)&nbsp;all Confidential Information (as defined in the relevant
confidentiality undertaking) disclosed to such counterparty; and (ii)&nbsp;all other material in
such counterparty&#146;s possession containing or reflecting all such Confidential Information (to
the extent such Confidential Information is information concerning the Sale Group and/or the
Business), in accordance with the terms of the relevant confidentiality undertaking.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><B>PART II</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Following the appointment and resignation of directors referred to in paragraph 1 of Part&nbsp;I
of this Schedule&nbsp;4, the Purchaser will procure the holding of a meeting of the directors of
SCCL at which the following resolutions will be considered and</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">76
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>approved:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a resolution to approve SCCL&#146;s entry into the Facility Agreement (and the granting of
security by SCCL in respect of amounts due thereunder as required under the terms of the
Facility Agreement), a loan facility agreement between SCCL and the Purchaser (the &#147;<B>Upstream
Loan Agreement</B>&#148;) and the deed of release referred to in paragraph 3.1 of this Part&nbsp;II of
Schedule&nbsp;4;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a resolution to approve drawing &#091;*&#093; under the Facility Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a resolution to approve the payment by SCCL so as to enable the Purchaser to satisfy its
obligations under clause 6.3.3 of amounts to Luxco and the Seller to discharge the
indebtedness and other amounts owing by SCCL to such entities (as a result of which, inter
alia, the releases referred to in paragraphs 2.14 and 2.15 of Part&nbsp;I of this Schedule&nbsp;4 will
be given);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a resolution to approve, subject to the Purchaser giving a notice of drawdown under the
Upstream Loan Agreement, SCCL making an advance to the Purchaser under the Upstream Loan
Agreement of an amount equal to the amount by which the amount drawn under the Facility
Agreement exceeds the amount paid to Luxco and the Seller pursuant to clause 6.3.3;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any of the actions performed pursuant to the resolutions referred to in this paragraph 1
constitute the giving of financial assistance for the purposes of Section&nbsp;151 of the Act, a
resolution to approve the giving of such financial assistance subject to compliance with the
Financial Assistance Procedure, such resolution to be passed unanimously; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a resolution to approve the form of the statutory declaration pursuant to section 155(6) of
the Act relating to the performance of those actions pursuant to the resolutions referred to
in this paragraph 1 (to the extent those actions constitute the giving of financial assistance
for the purposes of Section&nbsp;151 of the Act) to be sworn by each director of SCCL.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall subject to (i)&nbsp;SCCL having net assets immediately prior to implementation
of the transactions described in paragraph 3 of this Part&nbsp;II and (ii)&nbsp;delivery of the
Accountants Report, procure the execution and delivery to the Registrar of Companies of a
statutory declaration pursuant to section 155(6) of the Act relating to the performance of
those actions pursuant to the resolutions referred to in paragraph 1 of this Part&nbsp;II (to the
extent those actions constitute the giving of financial assistance for the purposes of Section
151 of the Act) sworn by each director of SCCL.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>After complying with its obligations under paragraph 2 of this Part&nbsp;II and simultaneously
with the performance by the Seller of its obligations under paragraph 2 of Part&nbsp;I of this
Schedule&nbsp;4, the Purchaser shall:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>procure that SCCL executes and delivers a deed of release to the Seller in a form
satisfactory to the Seller (acting reasonably) in respect of the &#147;keep well&#148; letter given by
the Seller in favour of SCCL dated 19 October&nbsp;2004; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>comply with the provisions of clauses 6.3.2 and 6.3.3 in their entirety.</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">77
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Simultaneously with the performance by the Seller of its obligations under paragraph 2 of
Part&nbsp;I of this Schedule&nbsp;4, the Purchaser shall deliver to the Seller or the Seller&#146;s
Solicitors:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if not already provided, a copy (certified by the secretary of relevant company to be a true
copy of a resolution in force at Completion) of the resolution of the board of the directors
of the Purchaser and a committee of the board of directors of IPR authorising the execution
and delivery of, and the performance by the Purchaser and IPR of their respective obligations
under, this Agreement and each of the other documents to be executed by the Purchaser and/or
IPR pursuant to this Agreement or directly or indirectly in connection with the transactions
contemplated hereunder (unless previously delivered);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the &#091;*&#093; duly executed as a deed by the Purchaser and by the Purchaser
Guarantors in such a form as may be acceptable to &#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the Tax Covenant in the Agreed Form duly executed by each of the Purchaser
Parties;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a counterpart of the Escrow Agreement duly executed by the Purchaser; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the O&#038;M Guarantee duly executed by the Purchaser or by an Affiliate of the Purchaser as the
same may be acceptable to &#091;*&#093; .</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Simultaneously with the delivery of those documents referred to in paragraph 4 of this Part
II, the Purchaser shall deliver:</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to NGC, a letter of credit or other security in replacement of the &#163;758,131 (seven hundred
and fifty eight thousand one hundred and thirty one pounds) letter of credit dated 24 August
2001 (extended on 26 January&nbsp;2004 and on 10 February&nbsp;2005) provided in support of SCCL&#146;s
obligations to pay the Balancing Services Use of System Charges under the CUSC and the CUSC
Bilateral Connection Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to Elexon Clear Limited, a letter of credit or other security in replacement of the
&#163;1,000,000 (one million pounds) letter of credit dated 24 August&nbsp;2001 (extended on 26 July
2004) issued in favour of Elexon in support of SCCL&#146;s payment obligations under the Balancing
and Settlement Code;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to BP Gas, a letter of credit (if required) to secure the obligations of the members of the
Sale Group under the Gas Supply Agreement and the Gas Support Agreement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any replacement credit support or comfort letters provided by a member of the Calpine Group
in relation to SCCL or UK OpCo as may be notified by the Seller to the Purchaser not less than
two (2)&nbsp;Business Days prior to Completion.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">78
</DIV>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>SCHEDULE 5<BR>
CONDUCT OF BUSINESS BEFORE COMPLETION</B>



<P align="center" style="font-size: 10pt"><B>Part I</B>


<P align="left" style="font-size: 10pt">Each Sale Group member (save in respect of paragraphs 24 to 28 (inclusive)) of this Part&nbsp;I, which
shall not apply to UK OpCo) shall, from the date of this Agreement up to and including the date of
Completion:


<P align="left" style="font-size: 10pt"><I>Operation of business; maintenance of assets and undertaking</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>operate its business in ordinary course consistent with past practice;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Material contracts</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not enter into an onerous or unusual agreement, arrangement or obligation or enter into any
Material Contract or any other contract that is not in the ordinary course of its business
consistent with past practice;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not amend or terminate a Material Contract to which it is a party;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Acquisition or disposal of assets, etc</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not acquire or dispose of, or agree to acquire or dispose of, any revenues, assets, business
or undertakings except in the ordinary course of its business consistent with past practice or
assume or incur, or agree to assume or incur, a liability, obligation or expense (actual or
contingent) except in the ordinary course of its business consistent with past practice.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Share and/or loan capital; interests in bodies corporate</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not create, allot, issue, acquire, repay or redeem any share or loan capital or agree,
arrange or undertake to do any of those things or acquire or agree to acquire, an interest in
a corporate body or merge or consolidate with a corporate body or any other person, enter into
any demerger transaction or participate in any other type of corporate reconstruction;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Borrowings and indebtedness; guarantees and other security</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not amend, or agree to amend, the terms of its borrowing or indebtedness in the nature of
borrowing or create, incur, or agree to create or incur, borrowing or indebtedness in the
nature of borrowing (except pursuant to (i)&nbsp;overdraft facilities of an amount equal to
&#163;125,000, or similar borrowings created or incurred in the ordinary course of its business
consistent with past practice or (ii)&nbsp;facilities disclosed in the Disclosure Letter where the
borrowing or indebtedness in the nature of borrowing does not exceed the amount available to
be drawn by the relevant Sale Group member under those facilities);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not give, or agree to give, a guarantee, indemnity or other agreement to secure, or incur
financial or other obligations with respect to, another person&#146;s obligation outside the
ordinary course of business consistent with past practice or in any event in</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">79
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>excess of &#163;125,000;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not make, or agree to make, capital expenditure exceeding in total &#091;*&#093; (or its equivalent
at the time) or incur, or agree to incur, a commitment or commitments involving capital
expenditure exceeding in total &#091;*&#093; (or its equivalent at the time);</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Insurance</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>continue, without amendment, each of the insurance policies which have been disclosed in the
Data Room (the &#147;<B>Disclosed Insurance Policies</B>&#148;) and not knowingly do, or omit to do, anything
which would:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any of the Disclosed Insurance Policies void or
voidable; or</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>entitle any of the insurers under any of the
Disclosed Insurance Policies to refuse indemnity in relation to particular
claims in whole or in part,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PROVIDED THAT nothing in this paragraph shall prevent the notification to insurers of
claims in circumstances which might give rise to claims under any of the Disclosed
Insurance Policies in accordance with the terms of the relevant Disclosed Insurance
Policies;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Dividends</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not declare, pay or make a dividend or distribution;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Share capital</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not reduce its share capital or purchase its own shares;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Tax claims</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not make a claim under section 152 or 153 of TCGA 1992 which affects an asset owned by a Sale
Group member;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Accounting policies</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not make any change to the accounting policies, procedures and principles by reference to
which its statutory accounts are drawn up;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Property</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in relation to the Property:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not change its existing use;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not terminate, or give a notice to terminate, a
lease, tenancy or licence;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not agree a new rent or fee payable under a lease,
tenancy or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">80
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>licence;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Employment; benefits</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not amend the terms and conditions of employment or engagement (including any increase in
emoluments) of a director, other officer or employee (except in the usual course of its
business) or provide, or agree to provide, a gratuitous payment or benefit to a director,
officer or employee (or any of their dependants) or, except in the ordinary course of its
business consistent with past practice, employ, engage or (except for cause) terminate the
employment or engagement of, a person;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">16.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not establish a Personal Pension Scheme or an Occupational Pension Scheme (in each case as
such term is defined in section 1 of the Pensions Act 1993) or other arrangement providing
benefit on retirement, cessation of employment, ill-health, injury or death (each a &#147;<B>Pension
Scheme</B>&#148;) or amend or discontinue (wholly or partly) a Pension Scheme or communicate to an
Employee a plan, proposal or an intention to establish a Pension Scheme or amend, discontinue
(wholly or partly), or exercise a discretion, in relation to a Pension Scheme;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Litigation; compliance with law</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">17.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not start litigation or arbitration proceedings where the amount sought is in excess of &#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">18.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to any litigation or arbitration proceedings or any action, demand or dispute in
existence on the date of this Agreement, consult and provide the Purchaser reasonable
opportunity to make representations or comments in respect thereof;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">19.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with respect to any litigation or arbitration proceedings or any action, demand or dispute,
not waive any right;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">20.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not release, discharge or compound any liability or claim other than any such liability or
claim in existence as at the date of this Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">21.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conduct its business in all material respects in accordance with all applicable legal and
administrative requirements in any jurisdiction;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Transactions with the Calpine Group</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">22.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other than as required under this Agreement, not enter into an agreement, arrangement or
obligation (whether legally enforceable or not) in which a Calpine Group member, a director or
former director of a Sale Group member, or a person connected with any of them is interested;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Intellectual property</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">23.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>protect, defend, enforce, maintain and renew each of the Company Business Intellectual
Property and continue any pending application for the Company Business Intellectual Property;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Cooperation with the Purchaser</I>



<P align="center" style="font-size: 10pt">81
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>co-operate (at the Purchaser&#146;s expense) with the Purchaser to:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>facilitate the efficient continuation of management
and operations of the Sale Group after Completion;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prepare for the introduction of the Purchaser&#146;s
normal working procedures in readiness for Completion; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>prepare for the implementation (after Completion) of
trading and hedging strategies and policies consistent with the
Purchaser&#146;s trading and hedging strategies and policies,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>and shall provide such information as the Purchaser may reasonably request in connection
with the provision of finance under the Facility Agreement to enable the lenders thereunder
to satisfy their internal compliance requirements;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Emissions Trading</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">25.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Hedging Arrangements</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">25A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">25B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; ;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#091;*&#093; .</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&#091;*&#093;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&#091;*&#093;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Period</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">&#091;*&#093; MWh</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">(MW)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;*&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;*&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;*&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;*&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;*&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><I>Prepayment of Debt</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">26.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Without prejudice to the Warranty contained in paragraph 5.6 of Schedule&nbsp;2, not to
voluntarily prepay, repay or capitalise in whole or in part any amount outstanding under the
SCCL Intergroup Debt except:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for payments of interest, fees and other amounts as
the same fall due for payment under the terms of the LuxCo Loan Agreement;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for refinancings or replacements of all or any
portion of SCCL Intergroup Debt where the amount outstanding immediately
after giving effect to such refinancing or replacement is substantially</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">82
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>equivalent (having regard to costs, expenses and fees, as well as to
changes in interest rates, in respect of such refinancing or
replacement on an arms&#146; length basis) to the amount outstanding
immediately prior to such refinancing or replacement or as otherwise
contemplated pursuant to the terms of this Agreement;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>for the purposes permitted, required or contemplated
by the terms of the LuxCo Loan Agreement (including clause 18.5 thereof)
or of any other loan or financing agreement to which SCCL or any of its
Affiliates is a party (including payments by SCCL to enable Calpine
European Funding (Jersey) Holdings Limited (&#147;<B>Calpine Jersey</B>&#148;) to meet its
obligations under the Intercompany Loan Agreement dated 31 January&nbsp;2005
among Calpine Jersey and Calpine European Funding (Jersey) Limited),</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided that (without prejudice to the Warranty contained in paragraph 5.6 of Schedule&nbsp;2)
nothing in this Schedule&nbsp;5 shall prohibit the Seller, or any member of the Sale Group or
any of their respective Affiliates from complying with any of their respective obligations
under the LuxCo Loan Agreement or any other loan or financing agreement or arrangement to
which any of them is a party.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt"><I>Operational spare parts</I>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">27.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not sell, transfer or otherwise dispose of or contract to sell, transfer or otherwise dispose
of any operational spare parts in respect of 2&nbsp;years of operation of the Facility that are
owned by any member of the Sale Group and are used during a 2&nbsp;year operational cycle;</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt"><B>Part II</B>


<P align="left" style="font-size: 10pt">The Seller shall not without the Purchaser&#146;s prior written consent (such consent not to be
unreasonably withheld, delayed or rendered subject to conditions):



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>alter the provisions of any Sale Group member&#146;s Memorandum or Articles of Association (or
like constitutional document) or adopt or pass further regulations or resolutions inconsistent
therewith; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>pass any resolutions in general meeting or by way of written resolution, including, without
limitation, any resolution for winding-up, or to capitalise any profits or any sum standing to
the credit of share premium account or capital redemption reserve fund or any other reserve of
any Sale Group member.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">83
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="center" style="font-size: 10pt"><B>SCHEDULE 6<BR>
DATA ROOM LIST</B>



<P align="center" style="font-size: 10pt">84
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt"><B>SCHEDULE 7<BR>
&#091;*&#093;</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">6.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">7.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">8.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">9.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">11.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">12.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">13.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">14.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">15.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">16.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">17.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
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</DIV>


<P align="center" style="font-size: 10pt">85
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt"><B>SCHEDULE 8<BR>
ENVIRONMENTAL COVENANT</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Definitions</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In this Schedule:</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147; <B>Credible Environmental
Risk</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a risk of such seriousness in relation
to a matter that if a Competent Authority in
relation to that matter or other relevant
third party as appropriate was aware of all
relevant information as to the matter, the
likelihood of it occurring and seriousness of
the likely consequences, such person would be
more likely than not to commence Purchaser
Environmental Proceedings for the purpose of
removing or lessening that risk;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environment</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means living organisms including the
ecological systems of which they form part and
all or any part of the following media (alone
or in combination): air (including without
limitation the air within the buildings and
the air within other natural or man made
structures whether above or below ground);
water (including without limitation sea, water
under or within land or in drains or sewers
and coastal and inland waters), and land
(including without limitation land under
water);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Approval</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any licence, authorisation, consent,
permit or any other approval (and any
variation or modification thereto) required
under or pursuant to Environmental Laws;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Claim</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means a claim made under paragraph 2.1(a) or
(b)&nbsp;of this Schedule;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Condition</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;the presence prior to Completion of any
Hazardous Substance in, on or under the land
at the Property where the presence of any such
Hazardous Substance first arose or occurred
after 31 March&nbsp;1998; and</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;any release or migration of any Hazardous
Substance described in (a)&nbsp;above into the
Environment; or</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(c)&nbsp;any release or migration of any Hazardous
Substance from the Gas Line into the
</DIV></TD>
</TR>
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</DIV>


<P align="center" style="font-size: 10pt">86
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environment after 31 March&nbsp;1998 but before
Completion;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Deed</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the Environmental Deed of Indemnity
dated 18 July&nbsp;1997 between BP Chemicals and
SCCL (as subsequently amended);</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Environmental Laws</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any and all of the following to the
extent that they have the force of law and are
enforceable in England:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;supranational, national, European Union,
federal, state or local statutes, directives
or other laws or legislation, secondary or
subordinate legislation;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;rules, regulations, orders, ordinances,
notices, decrees, guidelines, guidance notes,
codes of practice, circulars and the like made
or issued under (a)&nbsp;above; and</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(c)&nbsp;common law and equity,</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">which (a)&nbsp;have as a purpose or effect the
protection of the Environment from pollution
and/or contamination and/or which include or
provide for remedies or compensation for
pollution and/or contamination of the
Environment; and/or (b)&nbsp;regulate, restrict or
prohibit the generation, release, discharge,
emission, keeping, treating, handling,
storage, transfer, transport, spillage,
deposit or disposal of Hazardous Substances,
but shall exclude any such laws to the extent
that they relate to town and country planning,
consumer protection, human health and safety
or worker protection;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#091;*&#093;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#091;*&#093;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Gas Line</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means the gas pipeline servicing the Property;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Hazardous Substance</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any substance capable (whether alone or
in combination with any other) of causing
pollution or contamination of the Environment;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Landlord&#146;s Action</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any proceedings, claim, action, notice
or demand brought by the Landlord against the
Tenant under clause 3.2 or clauses 4.1 or 4.2
of the Environmental Deed;</TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">87
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Landlord&#146;s Action Losses</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any Losses incurred by any member of the
Purchaser&#146;s Group to the extent that they
arise from or relate to any Landlord&#146;s Action
to the extent that it arises from an event
which occurred or circumstances which first
arose during the Relevant Period;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Losses</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means all losses, liabilities, damages,
reasonable costs or expenses (including
reasonable legal and other professional costs
or expenses and the costs of Remedial Works)
or charges but excluding any indirect or
consequential losses, and any lost income or
profits or business interruption costs save
where they are awarded to a third party in
Successful Environmental Proceedings;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Purchaser Environmental
Proceedings</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any civil, criminal, regulatory or
administrative proceedings, claim, action,
notice or demand which is brought, taken or
threatened against any member of the
Purchaser&#146;s Group under Environmental Laws;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&#147;<B>Remedial Works</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any or all of the following:</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(a)&nbsp;the carrying out of such works as are
reasonably necessary to prevent, minimise,
remedy or mitigate the effects of any harm to
the Environment caused by Hazardous
Substances;</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(b)&nbsp;the making of subsequent inspections from
time to time for the purpose of keeping under
review to the extent reasonably required the
sufficiency of the works under (a)&nbsp;above; and</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="margin-left:21px; text-indent:-21px">(c)&nbsp;the carrying out of any investigative work
as is reasonably required in relation to (a)
and (b);</DIV></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>&#147;Successful Environmental
Proceedings</B>&#148;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">means any Purchaser Environmental Proceedings
or Landlord&#146;s Action to the extent that a
final, unappealable and legally enforceable
finding of liability is obtained by any third
party against a relevant member of the
Purchaser&#146;s Group or the liability which is
the subject of the Purchaser Environmental
Proceedings or Landlord&#146;s Action is admitted
or otherwise settled or agreed in accordance
with paragraph 4.1 of this Schedule.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Seller&#146;s Environmental Covenant</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Subject to the provisions of this Schedule the Seller covenants as follows:</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">88
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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller covenants with the Purchaser for the Purchaser itself and as trustee
for any relevant member of the Purchaser&#146;s Group to pay to the Purchaser an amount
equal to the amount of all Environmental Losses; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Seller covenants with the Purchaser for the Purchaser itself and as trustee
for any relevant member of the Purchaser&#146;s Group to pay to the Purchaser an amount
equal to the amount of all Landlord&#146;s Action Losses.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Other Limitations on Seller&#146;s Liability</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the Seller&#146;s protections contained in Schedule&nbsp;3, the Seller shall not be
liable under paragraph 2 of this Schedule to the extent that any Environmental Claim:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by the worsening or aggravation by any person
(other than the Seller or by any person authorised on its behalf) after Completion of
any Environmental Condition or of any other circumstances, states of affairs or
condition comprising the subject matter of any Environmental Claim or any part thereof;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by any change after Completion of the use of the
Property of the Facility (including without limitation any closure or mothballing of
the Facility or the Property) (or in each case any part thereof);</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is increased by any redevelopment of the Property or Facility (or in each case
any part thereof) or the carrying out of any building, engineering or mining works or
operations at the Facility or the Property (or in each case any part thereof) or the
demolition of or a substantial alteration to a building or of a structure at the
Property after Completion but for the avoidance of doubt except for such Losses which
would have arisen if the relevant Environmental Condition had been discovered in the
absence of such redevelopment, building, engineering, demolition etc.;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by any breach of any applicable provision of this
Schedule by any member of the Purchaser&#146;s Group;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by the carrying out of any intrusive investigations
after Completion other than intrusive investigations carried out to comply with any
Environmental Law or any Environmental Approval or are such intrusive investigations
that would be carried out by a reasonable and prudent operator;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by any change in any Environmental Law after
Completion in circumstances where such Losses or increase in Losses would not have
arisen under Environmental Laws in force at the date hereof. For the avoidance of
doubt the application of the Pollution Prevention and Control Regulations 2000 in the
form they are in at the date hereof (but not otherwise) shall not constitute a change
in law for the purpose of this paragraph;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by any variation or modification to any
Environmental Approval (save where such variation or modification directly concerns the
remediation of any relevant Environmental Condition and could have been imposed
pursuant to Environmental Laws in force at the date hereof) or the application for or
the issue of any new Environmental Approval after Completion (except for the
application for and first issue of a permit under the Pollution Prevention and Control
Regulations 2000); and/or</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">89
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>arises from or is increased by any amendment or alteration to the Environmental
Deed where such Losses or increase in Losses would not have arisen under the
Environmental Deed in its form at the date hereof.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to the Seller&#146;s protections contained in Schedule&nbsp;3 and subject to paragraph 4.6
of this Schedule, the Seller shall not be liable under paragraph 2 of this Schedule in respect
of any Environmental Claim for Remedial Works which exceed (in nature, scope, specification or
extent) what is reasonably required by applicable Environmental Laws (and for the avoidance of
doubt and without limitation, subject to the limitation on the Seller&#146;s liability in paragraph
3.1(f) of this Schedule).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Environmental Proceedings and Remedial Works</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall ensure that in relation to any matter, written claim or demand or
Purchaser Environmental Proceedings or Landlord&#146;s Action which gives rise or may reasonably
give rise to an Environmental Claim by it that neither it, nor any other member of the
Purchaser&#146;s Group, nor any person on their behalf shall make any settlement, compromise or
admission of liability without the prior written consent of the Seller such consent not to be
unreasonably withheld or delayed.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall have conduct of any Purchaser Environmental Proceedings and Landlord&#146;s
Action (Proceedings).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.3</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall have conduct of any Remedial Works whether relating to Proceedings or a
Credible Environmental Risk.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.4</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller in its conduct of Proceedings and the Purchaser in its conduct of Remedial Works
as the case may be shall ensure that (subject to implementing appropriate arrangements to
maintain commercial confidentiality and privilege):</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonably frequent and detailed reports shall be provided to the other
regarding the progress of the matter;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>copies of all correspondence and documents passing between the parties to any
Proceedings shall be provided to the other;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>they consult with the other in relation to the matter and take into account the
other&#146;s reasonable concerns provided that the other shall respond promptly to such
consultation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>allow the other person to attend any relevant court, regulatory or other
hearing, site visit or meeting; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>allow the other to participate in discussions with any relevant counsel,
consultants or contractors concerning the scope, nature, specification and extent of
any Remedial Works as the case may be to be carried out and to attend any meeting with
such counsel, consultants or contractors.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.5</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In conducting any Remedial Works pursuant to this Schedule the Purchaser shall:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain the Seller&#146;s prior written consent to the scope, nature, specification
and extent of the Remedial Works to be carried out (such consent not to be unreasonably
withheld or delayed);</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">90
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>give the Seller reasonable access to the Property and the Facility so that the
Seller can monitor the progress of such Remedial Works;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not prejudice the conduct of any Environmental Proceedings and comply with the
requirements of any relevant judgment, decision or award of any court, arbitrator or
other tribunal or settlement agreement; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>use cost-effective methods for such Remedial Works.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">4.6</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the avoidance of doubt, in conducting any Remedial Works the Purchaser shall be entitled
to implement or undertake any Remedial Works which exceed (in nature, scope, specification or
extent) what is reasonably required by applicable Environmental Laws provided that it shall be
responsible for paying for any increased costs and expenses arising from or relating to so
doing.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Mitigation</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser shall and shall procure that each member of the Purchaser Group shall mitigate
its Losses as if a claim under paragraph 2 of this Schedule was a claim for breach of contract
rather than indemnification.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">5.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Purchaser (whether on behalf of itself or another member of the Purchaser&#146;s Group) is
seeking to mitigate its Losses it shall consult with and obtain the Seller&#146;s written consent
(such consent not to be unreasonably withheld or delayed) to the nature, scope and extent of
such mitigation. Where it is not clear that the mitigation relates to a valid claim, the
Seller is entitled to consent in principle to such mitigation pending resolution of the
validity of the claim.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Matters Disclosed or Known/Relationship with Warranties</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The covenants under this Schedule shall apply whether or not any Environmental Claim under it
relates to any matter disclosed in the Disclosure Letter or the Data Room or was otherwise
disclosed or known to the Purchaser or other member of the Purchaser&#146;s Group.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">6.2</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Purchaser acknowledges and confirms that no Claim can be brought under the Warranties to
the extent that its subject matter falls within the scope of any indemnities contained in this
Schedule or the limitation on the total aggregate liability of the Seller contained in
paragraph 2.4(a) of Schedule&nbsp;3.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>General Limitations of Liability</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the avoidance of doubt, the provisions of Schedule&nbsp;3 shall apply to Environmental Claims
under this Schedule as provided for in Schedule&nbsp;3.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exclusion of Salt Carry Over Issue</B></TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Seller shall not be liable under this Schedule in respect of any Environmental Claim
which relates to or concerns dispersion into the Environment of salt from the Facility&#146;s
cooling towers.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">91
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>


<P align="center" style="font-size: 10pt">APPENDIX I



<P align="center" style="font-size: 10pt">92
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">for and on behalf of
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CALPINE UK HOLDINGS LIMITED</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executed and delivered as a Deed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">for and on behalf of
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CALPINE CORPORATION</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney-in-fact</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Occupation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executed and delivered as a Deed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">for and on behalf of
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>QUINTANA CANADA HOLDINGS, LLC</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney-in-fact</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Occupation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">93
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">as attorney for
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>NORMANTRAIL (UK CO 3) LIMITED</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Occupation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executed and delivered as a Deed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">as attorney for
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>INTERNATIONAL POWER PLC</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Occupation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">94
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Executed and delivered as a Deed by
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">as attorney for
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>MITSUI &#038; CO., LTD</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">)</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attorney</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">In the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><HR size="1" noshade color="#000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Occupation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">95
</DIV>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>6
<FILENAME>f10195exv99w1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;99.1</B>



<P align="left" style="font-size: 10pt"><B>Press Release</B>



<P align="left" style="font-size: 10pt"><B>Calpine Announces Pricing on $650 Million of Contingent Convertible Notes Due 2015</B>



<P align="left" style="font-size: 10pt"><B>Proceeds to be Used to Redeem HIGH TIDES III</B>


<P align="left" style="font-size: 10pt">SAN JOSE, Calif., June&nbsp;20, 2005 /PRNewswire-FirstCall via COMTEX/ &#151; Calpine Corporation (NYSE:
CPN) today announced that it has priced its registered public offering of $650&nbsp;million of
contingent convertible notes due 2015. The notes will pay interest at a rate of 7 3/4% and will be
convertible into cash and into shares of Calpine common stock at a price of $4.00 per share, which
represents a 29% premium over the New York Stock Exchange closing price of $3.10 per Calpine common
share on June&nbsp;17, 2005. Upon conversion of the notes, Calpine will deliver the applicable current
principal value in cash and any additional value in Calpine common shares. The offering is expected
to close on Thursday, June&nbsp;23, 2005.


<P align="left" style="font-size: 10pt">Calpine expects to use the net proceeds from the convertible notes offering to redeem in full its
HIGH TIDES III preferred securities. The company will use the remaining net proceeds to repurchase
a portion of the outstanding principal amount of its 8 1/2% senior unsecured notes due 2011.


<P align="left" style="font-size: 10pt">Goldman, Sachs &#038; Co. is the sole manager of the offering. A copy of the final prospectus supplement
relating to the offering may be obtained from Goldman, Sachs &#038; Co., Attention: Prospectus
Department at 85 Broad Street, New York, NY 10004.


<P align="left" style="font-size: 10pt">A registration statement relating to these securities has been filed with the Securities and
Exchange Commission and has been declared effective. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.


<P align="left" style="font-size: 10pt">A major power company, Calpine Corporation supplies customers and communities with electricity from
clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom.
Calpine was founded in 1984. It is included in the S&#038;P 500 Index and is publicly traded on the New
York Stock Exchange under the symbol CPN. For more information, visit www.calpine.com.


<P align="left" style="font-size: 10pt">This news release discusses certain matters that may be considered &#147;forward-looking&#148; statements
within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the
Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or
current expectations of Calpine Corporation (&#147;the Company&#148;) and its management. Prospective
investors are cautioned that any such forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that could materially affect actual
results such as, but not limited to, (i)&nbsp;the timing and extent of deregulation of energy markets
and the rules and regulations adopted on a transitional basis with respect thereto; (ii)&nbsp;the timing
and extent of changes in commodity prices for energy, particularly natural gas and electricity;
(iii)&nbsp;unscheduled outages of operating plants; (iv)&nbsp;a competitor&#146;s development of lower cost
generating gas-fired power plants; (v)&nbsp;risks associated with marketing and selling power from power
plants in the newly-competitive energy market; (vi)&nbsp;other risks identified from time-to-time in the
Company&#146;s reports and registration statements filed with the SEC, including the risk factors
identified in its Annual Report on Form 10-K for the year ended December&nbsp;31, 2004 and in its
Quarterly Report on Form 10-Q for the quarter ended March&nbsp;31, 2005, which can also be found on the
Company&#146;s website at www.calpine.com. All information set forth in this news release is as of
today&#146;s date, and the Company undertakes no duty to update this information.


<P align="left" style="font-size: 10pt">SOURCE Calpine Corporation


<P align="left" style="font-size: 10pt">media relations, Katherine Potter, ext. 1168, or investor relations, Rick Barraza, ext. 1125, both of Calpine, &#043;1-408-995-5115




<P align="center" style="font-size: 10pt">
</DIV>


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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>7
<FILENAME>f10195exv99w2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;99.2</B>


<P align="left" style="font-size: 10pt"><B>Press Release</B>


<P align="left" style="font-size: 10pt"><B>Calpine Closes $155 Million Preferred Shares Offering and $100 Million Senior Term Loan Refinancing
for Its Metcalf Energy Center</B>


<P align="left" style="font-size: 10pt">SAN JOSE, Calif., June&nbsp;21, 2005 /PRNewswire-FirstCall via COMTEX/ &#151; Calpine Corporation&#146;s (NYSE:
CPN) indirect subsidiary Metcalf Energy Center, LLC (Metcalf LLC) has received funding for its $155
million offering of 5.5-Year Redeemable Preferred Shares and five-year, $100&nbsp;million Senior Term
Loan.


<P align="left" style="font-size: 10pt">Metcalf LLC owns the 600-megawatt Metcalf Energy Center in San Jose, Calif. Metcalf LLC is a
stand-alone, indirect subsidiary of Calpine. Calpine and other Calpine affiliates will not be
responsible for the debts or other obligations of Metcalf LLC or other Metcalf entities.


<P align="left" style="font-size: 10pt">The net proceeds of the offering of the Redeemable Preferred Shares will ultimately be used as
permitted by Calpine&#146;s existing bond indentures. Net proceeds from the offering of the Senior Term
Loan will be used to refinance all outstanding indebtedness under the existing Metcalf LLC
construction credit facility, to pay fees and expenses related to the transaction, and as permitted
by Calpine&#146;s existing indentures.


<P align="left" style="font-size: 10pt">The Redeemable Preferred Shares are not registered under the Securities Act of 1933, and may not be
offered in the United States absent registration or an applicable exemption from registration
requirements. The Redeemable Preferred Shares were offered in a private placement in the United
States under Regulation&nbsp;D under the Securities Act of 1933 and outside of the United States
pursuant to Regulation&nbsp;S under the Securities Act of 1933. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy. Securities laws applicable to private
placements limit the extent of information that can be provided at this time.


<P align="left" style="font-size: 10pt">SOURCE Calpine Corporation


<P align="left" style="font-size: 10pt">Katherine Potter of Media Relations, &#043;1-408-995-5115, ext. 1168, or Karen Bunton of Investor
Relations, &#043;1-408-995-5115, ext. 1121, both of Calpine Corporation




<P align="center" style="font-size: 10pt">
</DIV>


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>8
<FILENAME>f10195exv99w3.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
</HEAD>
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<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;99.3</B>


<P align="left" style="font-size: 10pt"><B>Press Release</B>


<P align="left" style="font-size: 10pt"><B>Calpine Provides Update on HIGH TIDES III Securities</B>


<P align="left" style="font-size: 10pt">SAN JOSE, Calif., June&nbsp;17 /PRNewswire-FirstCall/ Calpine Corporation (NYSE: CPN) today announced
that on Friday, June&nbsp;17, it submitted the required notification leading up to the potential
remarketing of the company&#146;s 5% Convertible Preferred Securities (HIGH TIDES III).


<P align="left" style="font-size: 10pt">Calpine also notified holders of its right to redeem HIGH TIDES III, in whole or in part, at any
time on or before July&nbsp;21, 2005. To date, Calpine has expressed its intent to redeem HIGH TIDES III
prior to the reset of the terms of HIGH TIDES III following a remarketing. If not earlier redeemed,
the remarketing of HIGH TIDES III would begin on July&nbsp;23, 2005.


<P align="left" style="font-size: 10pt">A major power company, Calpine Corporation supplies customers and communities with electricity from
clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states, three Canadian provinces and in the United Kingdom.
Calpine was founded in 1984. It is included in the S&#038;P 500 Index and is publicly traded on the New
York Stock Exchange under the symbol CPN. For more information, visit http://www.calpine.com .


<P align="left" style="font-size: 10pt">This news release discusses certain matters that may be considered &#147;forward-looking&#148; statements
within the meaning of Section&nbsp;27A of the Securities Act of 1933, as amended, and Section&nbsp;21E of the
Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or
current expectations of Calpine Corporation (&#147;the Company&#148;) and its management. Prospective
investors are cautioned that any such forward-looking statements are not guarantees of future
performance and involve a number of risks and uncertainties that could materially affect actual
results such as, but not limited to, (i)&nbsp;the Company&#146;s ability to access the capital markets or
obtain bank financing on attractive terms; (ii)&nbsp;the direct or indirect effects on the Company&#146;s
business of a lowering of its credit rating (or actions it may take in response to changing credit
rating criteria), including, increased collateral requirements, refusal by the Company&#146;s current or
potential counterparties to enter into transactions with it and its inability to obtain credit or
capital in desired amounts or on favorable terms; and (iii)&nbsp;other risks identified from
time-to-time in the Company&#146;s reports and registration statements filed with the SEC, including the
risk factors identified in its Annual Report on Form 10-K for the year ended December&nbsp;31, 2004 and
in its Quarterly Report on Form 10-Q for the quarter ended March&nbsp;31, 2005, which can be found on
the Company&#146;s website at www.calpine.com. All information set forth in this news release is as of
today&#146;s date, and the Company undertakes no duty to update this information.



<P align="left" style="font-size: 10pt">SOURCE Calpine Corporation<BR>
06/17/2005<BR>
CONTACT: media, Katherine Potter, Ext. 1168, or investors, Rick Barraza, Ext. 1125, both of Calpine Corporation, &#043;1-408-995-5115<BR>
Web site: http://www.calpine.com



<P align="center" style="font-size: 10pt">
</DIV>


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