Document:

Exhibit 4.1.7

                                WAIVER AGREEMENT

                            Dated as of June 9, 2006

                                      among

                   CALPINE CONSTRUCTION FINANCE COMPANY, L.P.

                               CCFC FINANCE CORP.

                           THE GUARANTORS NAMED HEREIN

                                       and

                              WILMINGTON TRUST FSB,

                                   as Trustee

                            Relating to the Indenture
                           Dated as of August 14, 2003
                                       and

        Amended as of September 18, 2003, January 14, 2004, March 5, 2004
                               and March 15, 2006

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             WAIVER  AGREEMENT  UNDER  INDENTURE,  dated as of June 9, 2006 (the
"Waiver  Agreement"),  among  Calpine  Construction  Finance  Company,  L.P.,  a
Delaware limited  partnership  (the  "Company"),  CCFC Finance Corp., a Delaware
corporation  ("Finance  Corp."),  the Guarantors  and  Wilmington  Trust FSB, as
trustee (the "Trustee").

             WHEREAS, the Company, Finance Corp., the Guarantors and the Trustee
have  executed  that  certain  Indenture,  dated  as  of  August  14,  2003,  as
supplemented by that certain Supplemental  Indenture,  dated as of September 18,
2003, as further  supplemented  by that certain Second  Supplemental  Indenture,
dated as of January 14, 2004,  as further  supplemented  by that  certain  Third
Supplemental  Indenture,  dated as of March 5, 2004, and as further supplemented
by that certain Fourth  Supplemental  Indenture,  dated as of March 15, 2006 (as
supplemented,  the  "Indenture"),  in  connection  with the  co-issuance  by the
Company and Finance Corp. of certain Second  Priority  Senior  Secured  Floating
Rate Notes due 2011 (the "Notes");

             WHEREAS, on December 20, 2005, Calpine Corporation  ("Calpine") and
certain  of  its  controlled  subsidiaries,  including,  among  others,  Calpine
Operating  Services  Company,  Inc. and Calpine Energy Services,  L.P.  ("CES"),
filed a voluntary  proceeding  for relief under  Chapter 11 of the United States
Bankruptcy  Code  with the  United  States  Bankruptcy  Court  for the  Southern
District of New York (the "Proceeding");

             WHEREAS, CES, the Company and certain of the Company's subsidiaries
are parties to the Index Based Gas Sale and Power Purchase Agreement dated as of
August 14, 2003, as amended (the "PPA"), pursuant to which the Company purchases
natural  gas from CES for its power  generating  facilities,  and CES  purchases
power generated by the facilities from the Company;

             WHEREAS, on November 1, 2005, as permitted under the Indenture, the
Company used net proceeds of  approximately  $212.0 million from the sale of one
of its  facilities  to make a prepayment  to CES for gas under the PPA (the "Gas
Prepay Transaction");

             WHEREAS,  ordinarily under the PPA, the cost of gas consumed by the
Company's  facilities  is  offset  against  the cost of power  generated  by the
facilities,  with CES paying the Company only the net amount due,  such payments
generally being made on the 25th of each month for services  provided during the
prior month; however, due to the Gas Prepay Transaction, CES was obligated for a
period of time to pay the full cost for the power under the PPA, without offset,
which resulted in larger than usual payments owing to the Company under the PPA;

             WHEREAS,  CES failed to timely make a number of  payments  owing to
the  Company  under the PPA,  including  in  respect  of gas  deliveries  during
February 2006, approximately $18.5 million due on March 27, 2006 (the "March PPA
Payment" );

             WHEREAS,  the  failure by CES to timely  make the March PPA Payment
constitutes  an Event of Default  under the  Indenture  (the  "March PPA Payment
Default");

             WHEREAS,  the Company has failed to timely provide to the Holders a
financial report for the periods ended December 31, 2005 and March 31, 2006 (the
"Financial  Reports")  as required  to be  provided to them  pursuant to Section
4.03(1) of the Indenture;

             WHEREAS, the failure by the Company to timely provide the Financial
Reports  constitutes a Default (the  "Reporting  Default," and together with the
March PPA Payment Default, the "Specified Defaults");

             WHEREAS,  pursuant to a consent solicitation,  commenced as of June
6,  2006 and  completed  as of June 9, 2006 (the  "Consent  Solicitation"),  the
Company and Finance Corp. have requested that the Holders consent to a waiver of
the Specified Defaults (the "Waiver");

             WHEREAS,  pursuant to Sections 6.04 and 9.02 of the Indenture,  the
Holders of at least a majority in aggregate  principal  amount of the Notes have
consented to the Waiver; and

             WHEREAS, the Company and Finance Corp. have directed the Trustee to
execute and deliver this Waiver  Agreement in  accordance  with the terms of the
Indenture.

             NOW THEREFORE,  for and in consideration of the premises and mutual
covenants herein contained,  the Company,  Finance Corp., the Guarantors and the
Trustee agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

             Section 1.1 Definition of Terms.

             Unless  the  context  otherwise  requires,  capitalized  terms used
herein that are not otherwise  defined herein shall have the meaning assigned to
such terms in the Indenture.

                                   ARTICLE II
                          WAIVER OF SPECIFIED DEFAULTS

             Section 2.1 Waiver.

             (a) Upon the  satisfaction  of the  conditions set forth in Section
2.2 of this Waiver  Agreement,  the  Holders,  pursuant  to Section  6.04 of the
Indenture,  hereby  waive  application  of Sections  6.01(4) and 6.01(11) of the
Indenture solely to the extent applicable to any Specified Default,  such Waiver
being  effective  on the  first  date  that all of the  conditions  set forth in
Section 2.2 of this Waiver  Agreement  shall have been  satisfied  (the  "Waiver
Effective Date").

             (b) Except for the Waiver  expressly  set forth above in subsection
(a), the Holders reserve each and every right and remedy they may have under the
Indenture  and under  applicable  law with  respect  to any  Default or Event of
Default.

             Section 2.2 Conditions. The effectiveness of Section 2.1(a) of this
Waiver  Agreement is subject to the  satisfaction  of the  following  conditions
precedent:

             (a) Holders of at least a majority in aggregate principal amount of
the Notes shall have consented to this Waiver,  and the Company,  Finance Corp.,
and the  Guarantors  named as  signatories  hereto  and the  Trustee  shall have
executed and delivered their respective counterparts of this Waiver Agreement;

             (b) the Company  shall have paid to the  Trustee,  in cash or other
immediately available funds,  reimbursement of all outstanding fees and expenses
of the Trustee  owing under  Section 7.07 of the  Indenture as well as all other
fees owing to the Trustee arising under this Waiver Agreement,  the Indenture or
any other agreement; and

             (c) a waiver agreement (in form and substance reasonably acceptable
to the  Trustee)  with the  Lenders  under  (and as  defined  in) the Term  Loan
Agreement  shall have been  negotiated and shall become  effective  concurrently
with this Waiver  Agreement,  provided that, any conditions to  effectiveness or
consideration  made available to such Lenders for such  agreement  shall be made
available to the Holders as conditions to effectiveness  of, or as consideration
for, this Waiver Agreement; and

             (d) the conditions  specified in the Indenture which are applicable
to this Waiver Agreement shall have been satisfied.

             Section 2.3  Representations and Warranties.  The Company,  Finance
Corp. and each Guarantor hereby  represents and warrants to the Trustee that (a)
this Waiver  Agreement has been duly  authorized,  executed and delivered by the
Company , Finance Corp. or Guarantor,  as applicable,  and constitutes its valid
and legally binding  obligation,  enforceable  against it in accordance with its
terms, subject to bankruptcy,  insolvency, fraudulent transfer,  reorganization,
moratorium and similar laws of generally  applicability relating to or affecting
creditors'  rights and to  general  equity  principles;  (b) the  execution  and
delivery of this Waiver  Agreement  (i) does not require any consent,  approval,
authorization  or order of, or filing with, any  governmental  agency or body or
any court,  except such as have been  obtained or made and are in full force and
effect as of the date  hereof and (ii) will not violate  any  applicable  law or
regulation  or the  charter,  by laws or other  organizational  documents of the
Company or Guarantor, as applicable,  or any order of any governmental agency or
body,  or breach or conflict  with any material  agreement to which the Company,
Finance Corp. or Guarantor,  as applicable,  is a party or by which the Company,
Finance Corp.  or Guarantor,  as  applicable,  is bound;  and (c) except for the
Specified  Defaults,  no Default or Event of Default under the Indenture  exists
and is continuing.

             Section  2.4 PPA.  Notwithstanding  the  occurrence  of the  Waiver
Effective  Date,  this Waiver  shall cease to be  effective  if (i) the Company,
Finance  Corp.  and the Holders shall not have reached  agreement  regarding the
assumption,  whether on amended terms or otherwise, of the PPA in the Proceeding
on or before August 4, 2006 or (ii) the Company shall not have  delivered to the
financial  advisor to the Holders and the  Lenders,  subject to  execution of an
appropriate and mutually agreed upon confidentiality  agreement,  on or prior to
June 19, 2006, the analysis of cash flows for the Company's facilities under the
PPA prepared by PA Consulting Group, Inc.

             Section  2.5  Financial  Advisor  and Legal  Expenses.  The Company
hereby agrees to pay all reasonable fees of one financial advisor, who shall act
as  financial  advisor to both the  Holders  and the  Lenders,  for  purposes of
analyzing  issues  relating  to the  PPA,  including  the  analysis  done by PPA
Consulting  Group,  Inc.,  and the impact of the PPA on the Company's  business,
which fees shall not exceed  $100,000 per month,  for a period not to exceed two
(2) months.  The Company hereby agrees to pay all reasonable  fees,  charges and
disbursements of Kramer Levin Naftalis & Frankel LLP, as counsel to the Holders,
in accordance with the terms of the retention letter executed in March of 2006.

                                  ARTICLE III
                                  MISCELLANEOUS

             Section 3.1 Interpretation.

             This  Waiver   Agreement  shall  become  effective  on  the  Waiver
Effective Date and shall bind every Holder. After the Waiver Effective Date, the
Indenture  shall  be  modified  and  amended  in  accordance  with  this  Waiver
Agreement,  and all the terms and  conditions  of both shall be read together as
though they  constitute one  instrument,  except that, in case of conflict,  the
provisions of this Waiver Agreement will control. The Indenture,  as modified by
this Waiver  Agreement,  is hereby  ratified  and  confirmed in all respects and
shall bind every Holder.  In case of conflict  between the terms and  conditions
contained  in the Notes and those  contained in the  Indenture,  as modified and
amended by this Waiver Agreement,  the provisions of the Indenture,  as modified
and amended by this Waiver Agreement, shall control.

             Section 3.2 The Trustee.

             The Trustee shall not be responsible  in any manner  whatsoever for
or in respect of the validity or sufficiency of this Waiver  Agreement or for or
in respect of the recitals contained herein, all of which are made solely by the
Company and Finance Corp. Section 3.3 Certain Duties and Responsibilities of the
Trustee.

             (a) In entering  into this Waiver  Agreement,  the Trustee shall be
entitled  to the benefit of every  provision  of the  Indenture  relating to the
conduct or  affecting  the  liability or  affording  protection  to the Trustee,
whether or not elsewhere  herein so provided.

             Section 3.4 Continuing Effect of the Indenture. Except as expressly
set forth herein,  this Agreement  shall not by implication or otherwise  limit,
impair,  constitute a waiver of, or otherwise  affect the rights and remedies of
the Holders, the Trustee, the Company, Finance Corp. or the Guarantors under the
Indenture  and shall not  alter,  modify,  amend or in any way affect any of the
terms,  conditions,  obligations,  covenants  or  agreements  contained  in  the
Indenture,  all of which are  ratified  and  affirmed in all  respects and shall
continue in full force and effect. Nothing herein shall be deemed to entitle the
Company,  Finance  Corp.  or  the  Guarantors  to a  consent  to,  or a  waiver,
amendment,  modification  or other  change  of,  any of the  terms,  conditions,
obligations,  covenants or  agreements  contained in the Indenture in similar or
different  circumstances.  This Agreement shall apply and be effective only with
respect to the  provisions  of the  Indenture  specifically  referred to herein.
After the Waiver  Effective  Date, any reference to the Indenture shall mean the
Indenture as amended and modified hereby.

             Section 3.5 Counterparts.

             This   Waiver   Agreement   may  be   executed  in  any  number  of
counterparts,  each of which when so executed and  delivered  shall be deemed an
original,  but all such  counterparts  together shall constitute but one and the
same instrument.  The delivery of an executed signature of this Waiver Agreement
by facsimile  transmission shall be effective as delivery of a manually executed
counterpart hereof.

             Section 3.6 Applicable Law.

             This Waiver  Agreement and the right and obligations of the parties
hereunder  shall  be  governed  by,  and  shall be  construed  and  enforced  in
accordance with, the laws of the State of New York. Section

             3.7 Proof of Claim.

             The Company  shall include in its proof of claim against CES in the
Proceeding, the amount of the unpaid March PPA Payment.

             Section 3.8 Preservation of Prior Representations.

             Notwithstanding  anything  herein to the contrary,  all agreements,
admissions,  affirmations,  representations,  ratifications  and releases by the
Company,  Finance Corp. and each Guarantor  made in the Waiver  Agreement  dated
March 15,  2006,  including,  but not limited to,  those in Sections 2.5 and 3.4
thereof, are expressly confirmed and preserved.

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             IN WITNESS  WHEREOF,  the  parties  hereto  have caused this Waiver
Agreement to be duly executed as of the day and year first above written.

                                 CALPINE CONSTRUCTION FINANCE COMPANY, L.P.

                                 By:     /s/ Charles B. Clark, Jr.
                                    -------------------------------------------
                                    Name:  Charles B. Clark
                                    Title: Chief Financial Officer

                                 CCFC FINANCE CORP.

                                 By:     /s/ Charles B. Clark, Jr.
                                    -------------------------------------------
                                    Name:  Charles B. Clark
                                    Title: Chief Financial Officer

                                 CALPINE HERMISTON, LLC, as a Guarantor

                                 By:     /s/ Charles B. Clark, Jr.
                                    -------------------------------------------
                                    Name:  Charles B. Clark
                                    Title: Chief Financial Officer

                                 CPN HERMISTON, LLC, as a Guarantor

                                 By:    /s/ Charles B. Clark, Jr.
                                    -------------------------------------------
                                    Name:  Charles B. Clark
                                    Title: Chief Financial Officer

                                 HERMISTON POWER PARTNERSHIP, as a Guarantor

                                 By: Calpine Hermiston, LLC, its General Partner

                                 By:    /s/ Charles B. Clark, Jr.
                                    -------------------------------------------
                                    Name:  Charles B. Clark
                                    Title: Chief Financial Officer

                                 WILMINGTON TRUST FSB, as Trustee

                                 By:    /s/ W. Chris Sponenberg
                                    -------------------------------------------
                                    Name:  W. Chris Sponenberg
                                    Title:  Authorized SignerExhibit 10.2.1.7

                                WAIVER AGREEMENT

             THIS WAIVER AGREEMENT (this  "Agreement") is entered into as of the
9th day of June, 2006, by and among CALPINE CONSTRUCTION FINANCE COMPANY,  L.P.,
a Delaware  limited  partnership (the  "Borrower"),  CALPINE  HERMISTON,  LLC, a
Delaware  limited  liability  company  ("Calpine  LLC"),  CPN HERMISTON,  LLC, a
Delaware limited liability company ("CPN LLC"), and HERMISTON POWER PARTNERSHIP,
an Oregon general  partnership (the "Hermiston  Partnership"  and, together with
Calpine  LLC and CPN LLC,  the  "Guarantors"),  the  lenders  party  hereto (the
"Lenders"),  and GOLDMAN SACHS CREDIT  PARTNERS  L.P., as  administrative  agent
(together with its successors in such capacity, the "Administrative Agent").

                                    RECITALS

             WHEREAS,   the  Borrower,   the   Guarantors,   the  Lenders,   the
Administrative  Agent  and the Sole  Lead  Arranger  entered  into a Credit  and
Guarantee  Agreement,  dated as of August 14, 2003 (as amended on September  12,
2003, January 13, 2004, March 5, 2004, and March 15, 2006, and as may be further
amended  from  time to time,  the  "Credit  Agreement"),  pursuant  to which the
Borrower borrowed, on a non-recourse basis as described in the Credit Agreement,
$385,000,000  in aggregate  principal  amount of First  Priority  Senior Secured
Institutional Term Loans due 2009 (the "Term Loans");

             WHEREAS, on December 20, 2005, Calpine Corporation  ("Calpine") and
certain  of  its  controlled  subsidiaries,  including,  among  others,  Calpine
Operating  Services  Company,  Inc. and Calpine Energy Services,  L.P.  ("CES"),
filed a voluntary  proceeding  for relief under  Chapter 11 of the United States
Bankruptcy  Code  with the  United  States  Bankruptcy  Court  for the  Southern
District of New York (the "Proceeding");

             WHEREAS,   CES,  the   Borrower  and  certain  of  the   Borrower's
subsidiaries  are  parties  to the  Index  Based  Gas  Sale and  Power  Purchase
Agreement dated as of August 14, 2003, as amended (the "PPA"), pursuant to which
the Borrower purchases natural gas from CES for its power generating facilities,
and CES purchases power generated by the facilities from the Borrower;

             WHEREAS,  on  November  1,  2005,  as  permitted  under the  Credit
Agreement,  the Borrower used net proceeds of approximately  $212.0 million from
the sale of one of its  facilities to make a prepayment to CES for gas under the
PPA (the "Gas Prepay Transaction");

             WHEREAS,  ordinarily under the PPA, the cost of gas consumed by the
Borrower's  facilities  is offset  against  the cost of power  generated  by the
facilities,  with CES paying the Borrower only the net amount due, such payments
generally being made on the 25th of each month for services  provided during the
prior month; however, due to the Gas Prepay Transaction, CES was obligated for a
period of time to pay the full cost for the power under the PPA, without offset,
which  resulted in larger than usual  payments  owing to the Borrower  under the
PPA;

<PAGE>

             WHEREAS,  CES failed to timely make a number of  payments  owing to
the  Borrower  under the PPA,  including  in  respect of gas  deliveries  during
February 2006, approximately $18.5 million due on March 27, 2006 (the "March PPA
Payment" );

             WHEREAS,  the  failure by CES to timely  make the March PPA Payment
constitutes  an Event of Default  under the  Credit  Agreement  (the  "March PPA
Payment Default");

             WHEREAS, the Borrower has failed to timely provide to the Lenders a
financial report for the periods ended December 31, 2005 and March 31, 2006 (the
"Financial  Reports")  as required  to be  provided to them  pursuant to Section
5.01(a) of the Credit Agreement;

             WHEREAS,  the  failure  by  the  Borrower  to  timely  provide  the
Financial Reports  constitutes a Default (the "Reporting Default, " and together
with the March PPA Payment Default, the "Specified Defaults");

             WHEREAS, pursuant to a waiver request, commenced as of June 6, 2006
and completed as of June 9, 2006 (the "Waiver Request"),  the Borrower has asked
the Lenders to waive the Specified Defaults; and

             WHEREAS,  the Lenders,  on the terms and subject to the  conditions
hereinafter provided, are willing to waive the Specified Defaults.

             NOW  THEREFORE,  in  consideration  of the  premises and the mutual
agreements  set  forth,   the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:

             1. Definitions.  Unless otherwise defined herein, capitalized terms
used herein that are not  otherwise  defined  herein  shall have the  respective
meanings assigned to such terms in the Credit Agreement

             2. Waiver.

                (a)  Upon  satisfaction of the conditions set forth in Section 3
of this  Agreement,  the  Lenders,  pursuant to the terms of Section 7.04 of the
Credit  Agreement,  hereby waive  application of Sections 7.01(d) and 7.01(i) of
the Credit  Agreement  (the  "Waiver")  solely to the extent  applicable  to the
Specified  Defaults,  such Waiver being  effective on the first date that all of
the  conditions  set  forth in  Section  3 of this  Agreement  shall  have  been
satisfied (the "Waiver Effective Date").

                (b)  Except  for  the  Waiver  expressly  set  forth   above  in
subsection (a), the Administrative  Agent and the Lenders reserve each and every
right and  remedy  they may have  under the Credit  Agreement  and the  Security
Documents (the "Term Loan  Documents") and under  applicable law with respect to
any Default or Event of Default.

             3. Conditions.  The  effectiveness of Section 2(a)of this Agreement
is subject to the  satisfaction of the following  conditions  precedent  (unless
specifically waived in writing by the Requisite Lenders):

                                       2
<PAGE>

                (a)  the Borrower and the Guarantors named as signatories hereto
and  the   Requisite   Lenders   shall  have   executed  and  delivered  to  the
Administrative Agent their respective counterparts of this Agreement;

                (b)  the Borrower shall have paid to the  Administrative  Agent,
in cash or other immediately  available funds,  reimbursement of all outstanding
fees and expenses of the  Administrative  Agent owing under Section 13.02 of the
Credit  Agreement  as well as all other fees owing to the  Administrative  Agent
arising under this Agreement, the Credit Agreement or any other agreement; and

                (c)  a  waiver  agreement  (in  form  and  substance  reasonably
acceptable to the  Administrative  Agent) with the Holders of Notes (the "Waiver
Under  Indenture")  shall  have  been  negotiated  and  shall  become  effective
concurrently with this Agreement, provided, that any conditions to effectiveness
or consideration made available to the Holders of Notes for such agreement shall
be made available to the  Administrative  Agent and the Lenders as conditions to
effectiveness of, or as consideration for, this Agreement.

             4. The PPA.  Notwithstanding the occurrence of the Waiver Effective
Date,  this Waiver shall cease to be effective if (i) the Borrower,  the Lenders
and the  Administrative  Agent  (if  required  under  the terms of the Term Loan
Documents) shall not have reached agreement regarding the assumption, whether on
amended terms or otherwise,  of the PPA in the Proceeding on or before August 4,
2006 or (ii) the  Borrower  shall not have  delivered to the  financial  advisor
specified in Section  11(b) below,  subject to execution of an  appropriate  and
mutually agreed upon  confidentiality  agreement,  on or prior to June 19, 2006,
the analysis of cash flows for the Borrower's  facilities under the PPA prepared
by PA Consulting Group, Inc.

             5. Representations and Warranties.  The Borrower and each Guarantor
hereby represents and warrants to each Lender and the Administrative  Agent that
(a) this  Agreement  has been duly  authorized,  executed  and  delivered by the
Borrower or Guarantor,  as  applicable,  and  constitutes  its valid and legally
binding obligation, enforceable against it in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer,  reorganization,  moratorium and
similar laws of  generally  applicability  relating to or  affecting  creditors'
rights and to general equity principles;  (b) the execution and delivery of this
Agreement (i) does not require any consent, approval, authorization or order of,
or filing with,  any  governmental  agency or body or any court,  except such as
have  been  obtained  or made and are in full  force  and  effect as of the date
hereof  and (ii)  will not  violate  any  applicable  law or  regulation  or the
charter, by-laws or other organizational documents of the Borrower or Guarantor,
as  applicable,  or any order of any  governmental  agency or body, or breach or
conflict  with any material  agreement to which the  Borrower or  Guarantor,  as
applicable,  is a party or by which the Borrower or Guarantor, as applicable, is
bound; and (c) except for the Specified Defaults, no Default or Event of Default
under the Credit Agreement exists and is continuing.

             6. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed and  delivered  shall be deemed to be an original
and all of which  when  taken  together  shall  constitute  but one and the same
instrument.

                                       3
<PAGE>

             7. Continuing Effect of the Credit Agreement.  Except as  expressly
set forth herein,  this Agreement  shall not by implication or otherwise  limit,
impair,  constitute a waiver of, or otherwise  affect the rights and remedies of
the Lenders, the Administrative  Agent, the Borrower or the Guarantors under the
Credit Agreement and shall not alter,  modify, amend or in any way affect any of
the terms,  conditions,  obligations,  covenants or agreements  contained in the
Credit  Agreement,  all of which are  ratified  and affirmed in all respects and
shall  continue  in full force and  effect.  Nothing  herein  shall be deemed to
entitle the Borrowers or the Guarantors to a consent to, or a waiver, amendment,
modification  or other  change of, any of the  terms,  conditions,  obligations,
covenants  or  agreements  contained  in the  Credit  Agreement  in  similar  or
different  circumstances.  This Agreement shall apply and be effective only with
respect to the  provisions  of the Credit  Agreement  specifically  referred  to
herein.  After the Waiver  Effective Date, any reference to the Credit Agreement
shall mean the Credit Agreement as amended and modified hereby.

             8. Applicable Law. This Agreement and the rights and obligations of
the parties  hereunder shall be governed by, and shall be construed and enforced
in accordance with, the laws of the State of New York without regard to conflict
of laws principles thereof.

             9. Headings. Headings herein are include herein for  convenience of
reference  only and shall not  constitute a part hereof for any other purpose or
be given any substantive effect.

            10. Administrative  Agent's  Expense.  Without limiting  any  of the
Administrative  Agent's  rights,  or  any of the  Borrower's  obligations  under
Section 13.02 of the Credit  Agreement,  the Borrower  hereby agrees to promptly
reimburse the Administrative  Agent for all reasonable  out-of-pocket  expenses,
including, without limitation, attorneys' and paralegals fees, it has heretofore
or hereafter incurred or incurs in connection with the preparation,  negotiation
and execution of this Agreement or any document, instrument, agreement delivered
pursuant to this Agreement.

            11. Legal Expenses; Financial Advisor.

                (a) Without limiting  any of the Administrative  Agent's rights,
or any  of  the  Borrower's  obligations  under,  Section  13.02  of the  Credit
Agreement,  the Borrower hereby agrees to promptly  reimburse to the Lenders and
the Administrative  Agent all reasonable attorney and paralegal fees and related
expenses of Latham & Watkins LLP relating to (i) analysis of issues  relating to
the PPA,  including  the analysis  done by PA Consulting  Group,  Inc.,  and the
impact  of the  PPA on the  Borrower's  business  and  (ii)  the  assumption  or
rejection  of the PPA in the  Proceeding  and any matters  related  thereto that
affect the rights of the  Lenders or the  Administrative  Agent under the Credit
Agreement.

                (b) In addition  to the rights  provided in paragraph (a) above,
the  Borrower  shall cause to be provided  to the  Administrative  Agent and the
Lenders  the work  product of the  financial  advisor to be engaged  pursuant to
Section 2.5 of the Waiver Under  Indenture in the same manner as provided to the
holders of the Notes.

            12. Proof of Claim.  The  Borrower  shall  include  in its proof  of
claim against CES in the Proceeding, the amount of the unpaid March PPA Payment.

                                       4
<PAGE>

            13. Preservation of  Prior Representations. Notwithstanding anything
herein   to   the   contrary,   all   agreements,   admissions,    affirmations,
representations,  ratifications  and releases by the Borrower and each Guarantor
made in the Waiver  Agreement dated March 15, 2006,  including,  but not limited
to, those in Sections 6 and 8 thereof, are expressly confirmed and preserved.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       5
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their respective  officers  thereunto duly authorized as of the
date first written above.

                                 CALPINE CONSTRUCTION FINANCE COMPANY, L.P.

                                 By:      /s/ Charles B. Clark, Jr.
                                     -------------------------------------------
                                     Name:  Charles B. Clark
                                     Title: Chief Financial Officer

                                 CALPINE HERMISTON, LLC

                                 By:      /s/ Charles B. Clark, Jr.
                                     -------------------------------------------
                                     Name:  Charles B. Clark
                                     Title: Chief Financial Officer

                                 CPN HERMISTON, LLC

                                 By:      /s/ Charles B. Clark, Jr.
                                     -------------------------------------------
                                     Name:  Charles B. Clark
                                     Title: Chief Financial Officer

                                 HERMISTON POWER PARTNERSHIP

                                 By:      /s/ Charles B. Clark, Jr.
                                     -------------------------------------------
                                     Name:  Charles B. Clark
                                     Title: Chief Financial Officer

                                 GOLDMAN SACHS CREDIT PARTNERS L.P.,
                                 as Administrative Agent, Sole Lead Arranger,
                                 Syndication Agent and a Lender

                                 By:        /s/ Stephen King
                                     -------------------------------------------
                                     Name:  Stephen King
                                     Title: Authorized Signatory

                                       6
<PAGE>

                                              CONSENTING LENDER:

                                 -----------------------------------------------

                                 By:
                                     -------------------------------------------

                                     Name:

                                     Title:

                                       7

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