<PAGE>   1
                                                                   EXHIBIT 4.8.7




================================================================================



                    PREFERRED SECURITIES GUARANTEE AGREEMENT



                                    BETWEEN



                              CALPINE CORPORATION



                                      AND



                              THE BANK OF NEW YORK



                                  DATED AS OF



                                JANUARY 31, 2000


================================================================================




<PAGE>   2

               GUARANTEE AGREEMENT, dated as of January 31, 2000, executed and
delivered by Calpine Corporation, a Delaware corporation (the "Guarantor"), and
The Bank of New York, a New York banking corporation, as trustee (the "Guarantee
Trustee"), for the benefit of the Holders (as defined herein) from time to time
of the HIGH TIDES (as defined herein) of Calpine Capital Trust II, a Delaware
statutory business trust (the "Trust").


                WHEREAS pursuant to an Amended and Restated Declaration of Trust
(the "Declaration"), dated as of January 31, 2000, executed by the Guarantor, as
Depositor, The Bank of New York (Delaware), as Delaware Trustee, The Bank of New
York, as Property Trustee, and the Administrative Trustees named therein, the
Trust is issuing $300,000,000 ($360,000,000 including the aggregate liquidation
amount of its 5% Convertible Preferred Securities, Remarketable Term Income
Deferred Equity Securities (HIGH TIDES), liquidation amount $50 per security
(the "HIGH TIDES") and $9,278,400 ($11,134,100 including the option) aggregate
liquidation amount of its Common Securities, liquidation amount $50 per security
(the "Common Securities" and collectively with the HIGH TIDES, the "Trust
Securities") representing undivided beneficial interests in the assets of the
Trust and having the terms set forth in the Declaration;

                WHEREAS the Trust Securities will be issued by the Trust and the
proceeds thereof will be used to purchase the Convertible Subordinated
Debentures due 2030 (the "Debentures") of the Guarantor which will be deposited
with The Bank of New York as Property Trustee under the Declaration, as trust
assets; and

                WHEREAS as incentive for the Holders to purchase HIGH TIDES, the
Guarantor desires irrevocably and unconditionally to agree, to the extent set
forth herein, to pay to the Holders of the HIGH TIDES the Guarantee Payments (as
defined herein) and to make certain other payments on the terms and conditions
set forth herein.

                NOW, THEREFORE, in consideration of the purchase by each Holder
of HIGH TIDES, which purchase the Guarantor hereby agrees shall benefit the
Guarantor, the Guarantor executes and delivers this Guarantee Agreement for the
benefit of the Holders from time to time of the HIGH TIDES.


                                    ARTICLE I

                                   Definitions

                SECTION 1.01. Definitions. As used in this Guarantee Agreement,
the terms set forth below shall, unless the context otherwise requires, have the
following meanings. Capitalized or otherwise defined terms used but not
otherwise defined herein shall have the meanings assigned to such terms in the
Declaration as in effect on the date hereof.




                                       1
<PAGE>   3

                "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person; provided, however, that the Trust
shall be deemed not to be an Affiliate of the Guarantor. For the purposes of
this definition, "control" when used with respect to any specified Person means
the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; the terms "controlling" and "controlled" have meanings correlative to
the foregoing.

                "Common Securities" shall have the meaning specified in the
first recital of this Guarantee Agreement.

                "Debt" means (i) the principal of and premium, if any, and
unpaid interest on indebtedness for money borrowed, (ii) purchase money and
similar obligations, (iii) obligations under capital leases, (iv) guarantees,
assumptions or purchase commitments relating to, or other transactions as a
result of which the Guarantor is responsible for the payment of such
indebtedness of others, (v) renewals, extensions and refunding of any such
indebtedness, (vi) interest or obligations in respect of any such indebtedness
accruing after the commencement of any insolvency or bankruptcy proceedings and
(vii) net obligations associated with derivative products such as interest rate
and currency exchange contracts, foreign exchange contracts, commodity contracts
and similar arrangements.

                "Declaration" shall have the meaning specified in the first
recital to this Guarantee Agreement.

                "Event of Default" means a default by the Guarantor on any of
its payment or other obligations under this Guarantee Agreement; provided,
however, that, except with respect to a default in payment of any Guarantee
Payments, the Guarantor shall have received notice of default and shall not have
cured such default within 60 days after receipt of such notice.

                "Guarantee Payments" means the following payments or
distributions, without duplication, with respect to the HIGH TIDES, to the
extent not paid or made by or on behalf of the Trust: (i) any accrued and unpaid
Distributions required to be paid on the HIGH TIDES, to the extent the Trust
shall have funds on hand available therefor at such time, (ii) the applicable
Redemption Price, with respect to the HIGH TIDES called for redemption by the
Trust to the extent the Trust shall have funds on hand available therefor at
such time, and (iii) upon a voluntary or involuntary dissolution, winding-up or
liquidation of the Trust, unless Debentures are distributed to the Holders of
the HIGH TIDES or all the HIGH TIDES are redeemed, the lesser of (a) the
aggregate of the liquidation amount of $50 per HIGH TIDES plus accrued and
unpaid Distributions on the HIGH TIDES to the date of payment (the "Liquidation
Distribution") to the extent the Trust shall have funds on hand available to
make such payment at such time and (b) the amount of assets of the Trust
remaining available for distribution to Holders of the HIGH TIDES upon
liquidation of the Trust after satisfaction of liabilities to creditors of the
Trust as required by applicable law.


                                       2
<PAGE>   4

                "Guarantee Trustee" means The Bank of New York, a New York
banking corporation, until a Successor Guarantee Trustee has been appointed and
has accepted such appointment pursuant to the terms of this Guarantee Agreement
and thereafter means each such Successor Guarantee Trustee.

                "Guarantor" shall have the meaning specified in the first
paragraph of this Guarantee Agreement.

                "HIGH TIDES" shall have the meaning specified in the first
recital of this Guarantee Agreement.

                "Debentures" shall have the meaning specified in the second
recital of this Guarantee Agreement.

                "Holder" means any holder, as registered on the books and
records of the Trust, of any HIGH TIDES; provided, however, that in determining
whether the holders of the requisite percentage of HIGH TIDES have given any
request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor or the
Guarantee Trustee.

                "Indenture" means the Indenture dated as of January 31, 1999 as
amended or supplemented, between the Guarantor and The Bank of New York, as
trustee, relating to the issuance of Debentures.

                "List of Holders" has the meaning specified in Section 2.02(a).

               "Majority in liquidation amount of the HIGH TIDES" means, except
as provided in the terms of the HIGH TIDES or by the Trust Indenture Act, a vote
by the Holder(s), voting separately as a class, of more than 50% of the
aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accrued and unpaid distributions to
the date upon which the voting percentages are determined) of all then
outstanding HIGH TIDES.

                "Officers' Certificate" means, with respect to any Person, a
certificate signed by the Chairman and Chief Executive Officer, President or a
Vice President, and by the Treasurer, an Associate Treasurer, an Assistant
Treasurer, the Controller, the Secretary or an Assistant Secretary of such
Person, and delivered to the Guarantee Trustee. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Guarantee Agreement shall include:

                (a)     a statement that each officer signing the Officers'
        Certificate has read the covenant or condition and the definitions
        relating thereto;

                (b)     a brief statement of the nature and scope of the
        examination or investigation undertaken by each officer in rendering the
        Officers' Certificate;

                (c)     a statement that each officer has made such examination
        or investigation as, in such officer's opinion, is necessary to enable
        such officer to


                                       3
<PAGE>   5

        express an informed opinion as to whether or not such covenant or
        condition has been complied with; and

                (d)     a statement as to whether, in the opinion of each
        officer, such condition or covenant has been complied with.

                "Person" means a legal person, including any individual,
corporation, estate, partnership, joint venture, association, joint stock
company, limited liability company, trust, unincorporated association, or
government or any agency or political subdivision thereof, or any other entity
of whatever nature.

                "Responsible Officer" when used with respect to the Guarantee
Trustee means any officer assigned to the Corporate Trust Office, including any
vice president, assistant vice president, assistant treasurer, assistant
secretary or any other officer of the Guarantee Trustee customarily performing
functions similar to those performed by any of the above designated officers,
and having direct responsibility for the administration of this Guarantee
Agreement, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

                "Senior Debt" means (i) indebtedness evidenced by securities,
debentures, bonds or other similar instruments issued by the Company, (ii) all
obligations to make net payment pursuant to the terms of financial instruments,
such as (a) securities contracts and foreign currency exchange contracts, (b)
derivative instruments, such as swap agreements (including interest rate and
foreign exchange rate swap agreements), cap agreements, floor agreements, collar
agreements, interest rate agreements, foreign exchange agreements, options,
commodity futures contracts and commodity options contracts, and (c) similar
financial instruments; except, in the case of (i) above, such indebtedness and
obligations that are expressly stated to rank junior in right of payment to, or
pari passu in right of payment with, the Debentures, (iii) and indebtedness or
obligations of others of the kind described in (i) and (ii) above for the
payment of which the Company is responsible or liable as guarantor or otherwise
and (iv) deferrals, renewals or extensions of any such Senior Debt; provided,
however, that Senior Debt shall not be deemed to include (a) any Debt of the
Company which, when incurred and without respect to any election under Section
1111(b) of the United States Bankruptcy Code of 1978, was without recourse to
the Company, (b) trade accounts payable in the ordinary course of business,
which will not constitute debt for purposes of the HIGH TIDES, (c) any Debt of
the Company to any of its subsidiaries, except to the extent incurred for the
benefit of third parties, (d) Debt to any employee of the Company and (e) Debt
that expressly provides that it is not senior in right of payment to the HIGH
TIDES.

                "Successor Guarantee Trustee" means a successor Guarantee
Trustee possessing the qualifications to act as Guarantee Trustee under Section
4.01.

                "Trust" shall have the meaning specified in the first paragraph
of this Guarantee Agreement.


                                       4
<PAGE>   6
                "Trust Indenture Act" means the Trust Indenture Act of 1939 (15
U.S.C. Sections 77aaa-77bbbb), as amended, and the rules and regulations
promulgated thereunder.

                "Trust Securities" shall have the meaning specified in the first
recital of this Guarantee Agreement.

                                   ARTICLE II

                               Trust Indenture Act

                SECTION 2.01. Trust Indenture Act; Application. (a) This
Guarantee Agreement is, or upon qualification under the Trust Indenture Act will
be, = subject to the provisions of the Trust Indenture Act that are required to
be part of this Guarantee Agreement, which are incorporated by reference in and
made part of this Guarantee Agreement and shall, to the extent applicable, be
governed by such provisions. This Guarantee Agreement will not be qualified
under the Trust Indenture Act except upon the effectiveness of the Shelf
Registration Statement.

                (b)     Until such time as this Guarantee Agreement is qualified
under the Trust Indenture Act, the parties hereto agree that the provisions of
Sections 310-317, inclusive, of the Trust Indenture Act shall be incorporated
herein by reference, subject to the provisions of this Guarantee Agreement and
to the extent that any provision of this Guarantee Agreement limits, qualifies
or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

                SECTION 2.02. Lists of Holders of Securities. (a) The Guarantor
shall provide the Guarantee Trustee (i) within 14 days after each record date
for payment of Distributions, a list, in such form as the Guarantee Trustee may
reasonably require, of the names and addresses of the Holders of the HIGH TIDES
("List of Holders") as of such record date, provided that the Guarantor shall
not be obligated to provide such List of Holders at any time the List of Holders
does not differ from the most recent List of Holders given to the Guarantee
Trustee by the Guarantor on behalf of the Trust, and (ii) at any other time,
within 30 days of receipt by the Trust of a written request for a List of
Holders as of a date no more than 14 days before such List of Holders is given
to the Guarantee Trustee.

                (b)     The Guarantee Trustee shall comply with its obligations
under Section 311(a), 311(b) and 312(b) of the Trust Indenture Act.

                SECTION 2.03. Reports by the Guarantee Trustee. Within 60 days
after May 15 of each year, commencing May 15, 2000, the Guarantee Trustee shall
provide to the Holders of the HIGH TIDES such reports as are required by Section
313 of the Trust Indenture Act, if any, in the form and in the manner provided
by Section 313 of the Trust Indenture Act. The Guarantee Trustee shall also
comply with the requirements of Section 313(d) of the Trust Indenture Act.

                SECTION 2.04. Periodic Reports to The Guarantee Trustee. The
Guarantor shall provide to the Guarantee Trustee such documents, reports and


                                       5
<PAGE>   7
information as required by Section 314 of the Trust Indenture Act (if any) and
the compliance certificate required by Section 314 of the Trust Indenture Act in
the form, in the manner and at the times required by Section 314 of the Trust
Indenture Act.

                SECTION 2.05. Evidence of Compliance with Conditions Precedent.
The Guarantor shall provide to the Guarantee Trustee such evidence of compliance
with such conditions precedent, if any, provided for in this Guarantee Agreement
that relate to any of the matters set forth in Section 314(c) of the Trust
Indenture Act. Any certificate or opinion required to be given by any officer
pursuant to Section 314(c)(1) may be given in the form of an Officers'
Certificate.

                SECTION 2.06. Events of Default; Waiver. The Holders of a
Majority in liquidation amount of the HIGH TIDES may, by vote, on behalf of all
the Holders, waive any past Event of Default and its consequences. Upon such
waiver, any such Event of Default shall cease to exist, and any Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Guarantee Agreement, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent therefrom.

                SECTION 2.07. Event of Default; Notice. (a) The Guarantee
Trustee shall, within 10 days after the occurrence of an Event of Default,
transmit by mail, first class postage prepaid, to the Holders, notices of all
Events of Default known to the Guarantee Trustee, unless such Events of Default
have been cured before the giving of such notice; provided, that, except in the
case of a default in the payment of a Guarantee Payment, the Guarantee Trustee
shall be protected in withholding such notice if and so long as the Board of
Directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Guarantee Trustee in good faith determine that the
withholding of such notice is in the interests of the Holders.

                (b)     The Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless a Responsible Officer of the Guarantee
Trustee shall have received written notice of such Event of Default.

                SECTION 2.08. Conflicting Interests. The Declaration shall be
deemed to be specifically described in this Guarantee Agreement for the purposes
of clause (i) of the first proviso contained in Section 310(b) of the Trust
Indenture Act.


                                   ARTICLE III

                        Powers, Duties and Rights of the
                                Guarantee Trustee



                                       6
<PAGE>   8
                SECTION 3.01. Powers and Duties of the Guarantee Trustee. (a)
This Guarantee Agreement shall be held by the Guarantee Trustee for the benefit
of the Holders, and the Guarantee Trustee shall not transfer this Guarantee
Agreement to any Person except a Holder exercising his or her rights pursuant to
Section 5.04(iv) or to a Successor Guarantee Trustee on acceptance by such
Successor Guarantee Trustee of its appointment to act as Successor Guarantee
Trustee. The right, title and interest of the Guarantee Trustee shall
automatically vest in any Successor Guarantee Trustee, upon acceptance by such
Successor Guarantee Trustee of its appointment hereunder, and such vesting and
cessation of title shall be effective whether or not conveyancing documents have
been executed and delivered pursuant to the appointment of such Successor
Guarantee Trustee.

                (b)     If an Event of Default has occurred and is continuing,
the Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of
the Holders.

                (c)     The Guarantee Trustee, before the occurrence of any
Event of Default and after the curing of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Guarantee Agreement, and no implied covenants shall be read into
this Guarantee Agreement against the Guarantee Trustee. In case an Event of
Default has occurred (that has not been cured or waived pursuant to Section
2.06), the Guarantee Trustee shall exercise such of the rights and powers vested
in it by this Guarantee Agreement, and use the same degree of care and skill in
its exercise thereof, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

                (d)     No provision of this Guarantee Agreement shall be
construed to relieve the Guarantee Trustee from liability for its own negligent
action, its own negligent failure to act or its own wilful misconduct, except
that:

                        (i)     prior to the occurrence of any Event of Default
                and after the curing or waiving of all such Events of Default
                that may have occurred:

                                (A)     the duties and obligations of the
                        Guarantee Trustee shall be determined solely by the
                        express provisions of this Guarantee Agreement, and the
                        Guarantee Trustee shall not be liable except for the
                        performance of such duties and obligations as are
                        specifically set forth in this Guarantee Agreement; and

                                (B)     in the absence of bad faith on the part
                        of the Guarantee Trustee, the Guarantee Trustee may
                        conclusively rely, as to the truth of the statements and
                        the correctness of the opinions expressed therein, upon
                        any certificates or opinions furnished to the Guarantee
                        Trustee and conforming to the requirements of this
                        Guarantee Agreement; but in the case of any such
                        certificates or opinions that by any provision hereof or
                        of the Trust Indenture Act are specifically required to
                        be furnished to the Guarantee Trustee, the Guarantee
                        Trustee shall be under a duty to examine the same to
                        determine whether or not they conform to the
                        requirements of this Guarantee Agreement;


                                       7
<PAGE>   9

                        (ii)    the Guarantee Trustee shall not be liable for
                any error of judgment made in good faith by a Responsible
                Officer of the Guarantee Trustee, unless it shall be proved that
                the Guarantee Trustee was negligent in ascertaining the
                pertinent facts upon which such judgment was made;

                        (iii)   the Guarantee Trustee shall not be liable with
                respect to any action taken or omitted to be taken by it in good
                faith in accordance with the direction of the Holders of not
                less than a Majority in liquidation amount of the HIGH TIDES
                relating to the time, method and place of conducting any
                proceeding for any remedy available to the Guarantee Trustee, or
                exercising any trust or power conferred upon the Guarantee
                Trustee under this Guarantee Agreement; and

                        (iv)    no provision of this Guarantee Agreement shall
                require the Guarantee Trustee to expend or risk its own funds or
                otherwise incur personal financial liability in the performance
                of any of its duties or in the exercise of any of its rights or
                powers.

                SECTION 3.02. Certain Rights of Guarantee Trustee. (a) Subject
to the provisions of Section 3.01:

                        (i)     The Guarantee Trustee may conclusively rely and
                shall be fully protected in acting or refraining from acting
                upon any resolution, certificate, statement, instrument,
                opinion, report, notice, request, direction, consent, order,
                bond, debenture, note, other evidence of indebtedness or other
                paper or document reasonably believed by it to be genuine and to
                have been signed, sent or presented by the proper party or
                parties.

                        (ii)    Any direction or act of the Guarantor
                contemplated by this Guarantee Agreement shall be sufficiently
                evidenced by an Officers' Certificate unless otherwise
                prescribed herein.

                        (iii)   Whenever, in the administration of this
                Guarantee Agreement, the Guarantee Trustee shall deem it
                desirable that a matter relating to compliance by the Guarantor
                with any of its obligations contained in this Guarantee
                Agreement be proved or established before taking, suffering or
                omitting to take any action hereunder, the Guarantee Trustee
                (unless other evidence is herein specifically prescribed) may,
                in the absence of bad faith on its part, request and
                conclusively rely upon an Officers' Certificate (with respect to
                the Guarantor) which, upon receipt of such request from the
                Guarantee Trustee, shall be promptly delivered by the Guarantor.

                        (iv)    The Guarantee Trustee may consult with legal
                counsel of its selection, and the advice or opinion of such
                legal counsel with respect to legal matters shall be full and
                complete authorization and protection in respect of any action
                taken, suffered or omitted to be taken by it hereunder in good
                faith and in accordance with such advice or opinion. Such legal
                counsel may be legal counsel to the Guarantor or any of its
                Affiliates and may be one of its employees. The Guarantee
                Trustee


                                       8
<PAGE>   10

                shall have the right at any time to seek instructions concerning
                the administration of this Guarantee Agreement from any court of
                competent jurisdiction.

                        (v)     The Guarantee Trustee shall be under no
                obligation to exercise any of the rights or powers vested in it
                by this Guarantee Agreement at the request or direction of any
                Holder, unless such Holder shall have provided to the Guarantee
                Trustee such security and indemnity reasonably satisfactory to
                it, against the costs, expenses (including attorneys' fees and
                expenses) and liabilities that might be incurred by it in
                complying with such request or direction, including such
                reasonable advances as may be requested by the Guarantee
                Trustee; provided, that nothing contained in this Section
                3.02(a)(v) shall be taken to relieve the Guarantee Trustee, upon
                the occurrence of an Event of Default, of its obligation to
                exercise the rights and powers vested in it by this Guarantee
                Agreement.

                        (vi)    The Guarantee Trustee shall not be bound to make
                any investigation into the facts or matters stated in any
                resolution, certificate, statement, instrument, opinion, report,
                notice, request, direction, consent, order, bond, debenture,
                note, other evidence of indebtedness or other paper or document,
                but the Guarantee Trustee, in its discretion, may make such
                further inquiry or investigation into such facts or matters as
                it may see fit.

                        (vii)   The Guarantee Trustee may execute any of the
                trusts or powers hereunder or perform any duties hereunder
                either directly or by or through its agents or attorneys, and
                the Guarantee Trustee shall not be responsible for any
                misconduct or negligence on the part of any such agent or
                attorney appointed with due care by it hereunder.

                        (viii)  Whenever in the administration of this Guarantee
                Agreement the Guarantee Trustee shall deem it desirable to
                receive instructions with respect to enforcing any remedy or
                right or taking any other action hereunder, the Guarantee
                Trustee (A) may request instructions from the Holders, (B) may
                refrain from enforcing such remedy or right or taking such other
                action until such instructions are received and (C) shall be
                fully protected in acting in accordance with such instructions.

                (b)     No provision of this Guarantee Agreement shall be deemed
to impose any duty or obligation on the Guarantee Trustee to perform any act or
acts or exercise any right, power, duty or obligation conferred or imposed on it
in any jurisdiction in which it shall be illegal, or in which the Guarantee
Trustee shall be unqualified or incompetent in accordance with applicable law,
to perform any such act or acts or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Guarantee Trustee
shall be construed to be a duty to act in accordance with such power and
authority.

                SECTION 3.03. Indemnity. The Guarantor agrees to indemnify the
Guarantee Trustee and its directors, officers, agents and employees for, and to
hold them harmless against, any and all loss, damage, claim, liability or
expense incurred without negligence or bad faith on the part of the Guarantee
Trustee, arising out of or in



                                       9
<PAGE>   11

connection with the acceptance or administration of this Guarantee Agreement,
including the costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Guarantor shall be entitled to participate in the defense
of any action arising hereunder and, to the extent it may wish, assume the
defense thereof, with counsel satisfactory to the Guarantee Trustee (who shall
not, except with the consent of the Guarantee Trustee, be counsel to Guarantor).
Upon assuming such defense, the Guarantor shall not be liable for any legal or
other expenses subsequently incurred by the Guarantee Trustee in connection with
the defense thereof, other than reasonable costs of investigation. The Guarantor
shall not, without the prior written consent of the Guarantee Trustee, effect
any settlement of any pending or threatened action in respect of which the
Guarantee Trustee is or could have been a party and indemnity could have been
sought hereunder by the Guarantee Trustee unless such settlement (i) includes an
unconditional release of the Guarantee Trustee from all liability on any claims
that are the subject matter of such action and (ii) does not include a statement
as to, or an admission of, fault, culpability or a failure to act by or on
behalf of the Guarantee Trustee. The Guarantee Trustee will not claim or exact
any lien or charge on any Guarantee Payments as a result of any amount due to it
under this Guarantee Agreement. This indemnity shall survive the termination of
this Guarantee Agreement or the resignation or removal of the Guarantee Trustee.

                SECTION 3.04. Expenses. The Guarantor shall from time to time
reimburse the Guarantee Trustee for its expenses and costs incurred in
connection with the performance of its duties hereunder. This reimbursement
obligation shall survive the termination of this Guarantee Agreement or the
resignation or removal of the Guarantee Trustee.

                                   ARTICLE IV

                               Guarantee Trustee

                SECTION 4.01. Guarantee Trustee; Eligibility. (a) There shall at
all times be a Guarantee Trustee which shall:

                        (i)     not be an Affiliate of the Guarantor; and

                        (ii)    be a Person that is eligible pursuant to the
                Trust Indenture Act to act as such and has a combined capital
                and surplus of at least $50,000,000, and shall be a corporation
                meeting the requirements of Section 310(c) of the Trust
                Indenture Act. If such corporation publishes reports of
                condition at least annually, pursuant to law or to the
                requirements of the supervising or examining authority, then,
                for the purposes of this Section and to the extent permitted by
                the Trust Indenture Act, the combined capital and surplus of
                such corporation shall be deemed to be its combined capital and
                surplus as set forth in its most recent report of condition so
                published.

                (b)     If at any time the Guarantee Trustee shall cease to be
eligible to so act under Section 4.01(a), the Guarantee Trustee shall
immediately resign in the manner and with the effect set out in Section 4.02(c).



                                       10
<PAGE>   12

                (c)     If the Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Guarantee Trustee and Guarantor shall in all respects comply
with the provisions of Section 310(b) of the Trust Indenture Act.

                SECTION 4.02. Appointment, Removal and Resignation of the
Guarantee Trustee. (a) Subject to Section 4.02(b), in the absence of the
existence of an Event of Default, the Guarantee Trustee may be appointed or
removed without cause at any time by the Guarantor.

                (b)     The Guarantee Trustee shall not be removed until a
Successor Guarantee Trustee has been appointed and has accepted such appointment
by written instrument executed by such Successor Guarantee Trustee and delivered
to the Guarantor.

                (c)     The Guarantee Trustee appointed hereunder shall hold
office until a Successor Guarantee Trustee shall have been appointed or until
its removal or resignation. The Guarantee Trustee may resign from office
(without need for prior or subsequent accounting) by an instrument in writing
executed by the Guarantee Trustee and delivered to the Guarantor, which
resignation shall not take effect until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by instrument in writing executed by
such Successor Guarantee Trustee and delivered to the Guarantor and the
resigning Guarantee Trustee.

                (d)     If no Successor Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.02 within 30
days after delivery to the Guarantor of an instrument of resignation or notice
of removal by the Guarantor, the retiring Guarantee Trustee may petition, at the
expense of the Guarantor, any court of competent jurisdiction for appointment of
a Successor Guarantee Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee.


                                    ARTICLE V

                                    Guarantee

                SECTION 5.01. Guarantee. The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments
(without duplication of amounts theretofore paid by or on behalf of the Trust),
as and when due, regardless of any defense, right of set-off or counterclaim
which the Trust may have or assert. The Guarantor's obligation to make a
Guarantee Payment may be satisfied by direct payment of the required amounts by
the Guarantor to the Holders or by causing the Trust to pay such amounts to the
Holders. The Guarantor shall give written notice to the Guarantee Trustee as
promptly as practicable in the event it makes any direct payment hereunder.



               SECTION 5.02. Waiver of Notice and Demand. The Guarantor hereby
waives notice of acceptance of the Guarantee Agreement and, with respect to its


                                       11
<PAGE>   13

obligations under Section 5.01, hereby waives presentment, demand for payment,
any right to require a proceeding first against the Guarantee Trustee, Trust or
any other Person before proceeding against the Guarantor, protest, notice of
nonpayment, notice of dishonor, notice of redemption and all other notices and
demands.

                SECTION 5.03. Obligations Not Affected. The obligations,
covenants, agreements and duties of the Guarantor under this Guarantee Agreement
shall in no way be affected or impaired by reason of the happening from time to
time of any of the following:

                (a)     the release or waiver, by operation of law or otherwise,
        of the performance or observance by the Trust of any express or implied
        agreement, covenant, term or condition relating to the HIGH TIDES to be
        performed or observed by the Trust;

                (b)     the extension of time for the payment by the Trust of
        all or any portion of the Distributions (other than any extension of
        time for payment of Distributions that results from the extension of any
        interest payment period on the Debentures as so provided in the
        Indenture), Redemption Price, Liquidation Distribution or any other sums
        payable under the terms of the HIGH TIDES or the extension of time for
        the performance of any other obligation under, arising out of, or in
        connection with, the HIGH TIDES;

                (c)     any failure, omission, delay or lack of diligence on the
        part of the Holders to enforce, assert or exercise any right, privilege,
        power or remedy conferred on the Holders pursuant to the terms of the
        HIGH TIDES, or any action on the part of the Trust granting indulgence
        or extension of any kind;

                (d)     the voluntary or involuntary liquidation, dissolution,
        sale of any collateral, receivership, insolvency, bankruptcy, assignment
        for the benefit of creditors, reorganization, arrangement, composition
        or readjustment of debt of, or other similar proceedings affecting, the
        Trust or any of the assets of the Trust;

                (e)     any invalidity of, or defect or deficiency in, the HIGH
        TIDES;

                (f)     the settlement or compromise of any obligation
        guaranteed hereby or hereby incurred; or

                (g)     any other circumstance whatsoever that might otherwise
        constitute a legal or equitable discharge or defense of a guarantor, it
        being the intent of this Section 5.03 that the obligations of the
        Guarantor hereunder shall be absolute and unconditional under any and
        all circumstances.

               There shall be no obligation of the Holders to give notice to, or
obtain the consent of, the Guarantor with respect to the happening of any of the
foregoing.

                SECTION 5.04. Rights of Holders. The Guarantor expressly
acknowledges that: (i) this Guarantee Agreement will be deposited with the
Guarantee



                                       12
<PAGE>   14

Trustee to be held for the benefit of the Holders; (ii) the Guarantee Trustee
has the right to enforce this Guarantee Agreement on behalf of the Holders;
(iii) the Holders of a Majority in liquidation amount of the HIGH TIDES have the
right among themselves, the other Holders, if any, and the Guarantee Trustee to
direct the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee in respect of this Guarantee Agreement or
exercising any trust or power conferred upon the Guarantee Trustee under this
Guarantee Agreement; and (iv) any Holder may institute a legal proceeding
directly against the Guarantor to enforce, subject to the subordination
provisions hereof, its rights under this Guarantee Agreement, without first
instituting a legal proceeding against the Trust or any other Person.

                SECTION 5.05. Guarantee of Payment. This Guarantee Agreement
creates a guarantee of payment and not of collection. This Guarantee Agreement
will not be discharged except by payment of the Guarantee Payments in full
(without duplication of amounts theretofore paid by the Trust) or upon
distribution of Debentures to Holders as provided in the Declaration.

                SECTION 5.06. Subrogation. The Guarantor shall be subrogated to
all (if any) rights of the Holders against the Trust in respect of any amounts
paid to the Holders by the Guarantor under this Guarantee Agreement and shall
have the right to waive payment by the Trust pursuant to Section 5.01; provided,
however, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any rights which
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Guarantee Agreement,
if at the time of any such payment, any amounts are due and unpaid under this
Guarantee Agreement. If any amount shall be paid to the Guarantor in violation
of the preceding sentence, the Guarantor agrees to hold such amount in trust for
the Holders and to pay over such amount to the Holders. Any amounts paid over to
and not subsequently recovered from the Holders pursuant to any insolvency law
shall be deemed to have been applied by the Holders to the Guarantee Payments.

                SECTION 5.07. Independent Obligations. The Guarantor
acknowledges that its obligations hereunder are independent of the obligations
of the Trust with respect to the HIGH TIDES and that the Guarantor shall
(without duplication of amounts paid by or on behalf of the Trust) be liable as
principal and as debtor hereunder to make Guarantee Payments pursuant to the
terms of this Guarantee Agreement notwithstanding the occurrence of any event
referred to in subsections (a) through (g), inclusive, of Section 5.03 hereof,
but subject to Section 6.01 hereof.


                                   ARTICLE VI

                           Covenants and Subordination



                                       13
<PAGE>   15

                SECTION 6.01. Subordination. This Guarantee Agreement will
constitute an unsecured obligation of the Guarantor and will rank subordinate
and junior in right of payment to all Senior Debt of the Guarantor in accordance
with the terms of Article XII of the Indenture, which terms (including the
definitions of all defined terms used therein) are incorporated herein, mutatis
mutandis, by this reference (it being understood and agreed that each notice
from holders of Senior Debt (or their agent or representative) to the Trustee
under the Indenture shall constitute a notice to the Guarantee Trustee
hereunder.

                SECTION 6.02. Pari Passu Guarantees. This Guarantee Agreement
shall rank pari passu with any similar guarantee agreements issued by the
Guarantor on behalf of the holders of trust securities issued by a trust created
by the Guarantor similar to Calpine Capital Trust II.

                                   ARTICLE VII

                                   Termination

                SECTION 7.01. Termination. This Guarantee Agreement shall
terminate and be of no further force and effect upon (i) full payment of the
Redemption Price of all HIGH TIDES, (ii) the distribution of Debentures to the
Holders in exchange for all of the HIGH TIDES, (iii) full payment of the amounts
payable in accordance with the Declaration upon liquidation of the Trust or (iv)
distribution of the Guarantor's common stock to the Holders in respect of the
conversion of all of the HIGH TIDES. Notwithstanding the foregoing, this
Guarantee Agreement will continue to be effective or will be reinstated, as the
case may be, if at any time any Holder must repay any sums paid with respect to
HIGH TIDES or this Guarantee Agreement.


                                  ARTICLE VIII

                                  Miscellaneous

                SECTION 8.01. Successors and Assigns. All guarantees and
agreements contained in this Guarantee Agreement shall bind the successors,
assigns, receivers, trustees and representatives of the Guarantor and shall
inure to the benefit of the Holders of the HIGH TIDES then outstanding. Except
in connection with a consolidation, merger or sale involving the Guarantor that
is permitted under Article VIII of the Indenture and pursuant to which the
assignee agrees in writing to perform the Guarantor's obligations hereunder, the
Guarantor shall not assign its obligations hereunder.

                SECTION 8.02. Amendments. Except with respect to any changes
which do not adversely affect the rights of the Holders in any material respect
(in which case no consent of the Holders will be required), this Guarantee
Agreement may only be amended with the prior approval of the Holders of not less
than a Majority in liquidation amount of the HIGH TIDES. The provisions of
Article XII of the Declaration concerning meetings of the Holders shall apply to
the giving of such approval.




                                       14
<PAGE>   16

               SECTION 8.03. Notices. Any notice, request or other communication
required or permitted to be given hereunder shall be in writing, duly signed by
the party giving such notice, and delivered, telecopied (confirmed by delivery
of the original) or mailed by first class mail as follows:

                (a)     if given to the Guarantor, to the address set forth
        below or such other address, facsimile number or to the attention of
        such other Person as the Guarantor may give notice to the Holders:

                      Calpine Corporation
                      50 West San Fernando Street
                      San Jose, California 95113

                      Telephone: (408) 995-5115
                      Facsimile No.: (408) 995-0505
                      Attention: Corporate Secretary

                (b)     if given to the Trust, in care of the Guarantor, at the
        Trust's (and the Guarantee Trustee's) address set forth below or such
        other address as the Trust may, at the Trusts's direction, give notice
        to the Holders:

                      Calpine Capital Trust II
                      c/o Calpine Corporation
                      50 West San Fernando Street
                      San Jose, California 95113

                      Telephone: (408) 995-5115
                      Facsimile No.: (408) 995-0505
                      Attention: Secretary



                                       15
<PAGE>   17

                      with a copy to:

                      The Bank of New York
                      101 Barclay Street
                      Floor 21 West
                      New York, NY 10286
                      Facsimile No.: (212) 815-5915
                      Attention: Corporate Trust Administration

                (c)     if given to the Guarantee Trustee:

                      The Bank of New York
                      101 Barclay Street
                      Floor 21 West
                      New York, NY 10286
                      Facsimile No.: (212) 815-5915
                      Attention: Corporate Trust Administration

                (d)     if given to any Holder, at the address set forth on the
        books and records of the Trust.

               All notices hereunder shall be deemed to have been given when
received in person, telecopied with receipt confirmed, or mailed by first class
mail, postage prepaid, except that if a notice or other document is refused
delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered
on the date of such refusal or inability to deliver.

                SECTION 8.04. Benefit. This Guarantee Agreement is solely for
the benefit of the Holders (subject to the benefits inuring to the holders of
Senior Debt pursuant to the subordination provisions hereof) and is not
separately transferable from the HIGH TIDES.

                SECTION 8.05. Interpretation. In this Guarantee Agreement,
unless the context otherwise requires:

                (a)     capitalized terms used in this Guarantee Agreement but
        not defined in the preamble hereto have the respective meanings assigned
        to them in Section 1.01;

                (b)     a term defined anywhere in this Guarantee Agreement has
        the same meaning throughout;

                (c)     all references to "the Guarantee Agreement" or "this
        Guarantee Agreement" are to this Guarantee Agreement as modified,
        supplemented or amended from time to time;



                                       16
<PAGE>   18

                (d)     all references in this Guarantee Agreement to Articles
        and Sections are to Articles and Sections of this Guarantee Agreement
        unless otherwise specified;

                (e)     a term defined in the Trust Indenture Act has the same
        meaning when used in this Guarantee Agreement unless otherwise defined
        in this Guarantee Agreement or unless the context otherwise requires;

                (f)     a reference to the singular includes the plural and vice
        versa; and

                (g)     the masculine, feminine or neuter genders used herein
        shall include the masculine, feminine and neuter genders.

                SECTION 8.06 Governing Law. THIS GUARANTEE AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

                This instrument may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.



                            [SIGNATURE PAGE FOLLOWS]



                                       17
<PAGE>   19

               THIS GUARANTEE AGREEMENT is executed as of the day and year first
above written.



                                    Calpine Corporation

                                    by
                                       ----------------------------------------
                                       Name:
                                       Title:




                                    The Bank of New York, as Guarantee Trustee,

                                    by
                                      -----------------------------------------
                                      Name:
                                      Title:


                                       18

<PAGE>   20
                             CCPA - CALPINE RIGHT OF ENTRY AND LICENSE AGREEMENT




                                   EXHIBIT A

                            DESCRIPTION OF PROPERTY




Twelve geothermal steam and injection wells named and located as follows:

<TABLE>
<CAPTION>
Township            Range      Section       Wells
--------            -----      -------       -----
<S>                 <C>         <C>          <C>
12N                 9W           35          Prati 8, Prati 9

12N                 9W           36          Prati 2, Prati 4, Prati 5,
                                             Prati 14, Prati 50, Prati State 1

11N                 9W           1           Prati State 10, Prati State 12,
                                             Prati State 24, Prati State 54
</TABLE>

and roads as needed to access these well locations.