Calpine Corporation (HSBC)

January 31, 2008

      Compass Advisers, LLP ("Compass") provided financial advisory services to HSBC Bank USA, N.A. ("HSBC"), successor Indenture Trustee for a series of notes and debentures (the "Notes") issued by Calpine Corporation, a Chapter 11 debtor-in-possession, and its affiliates and subsidiaries.  HSBC required financial advisors to help determine the contractual obligations of Calpine Corporation under the terms of the indentures of the Notes, valued at more than $100 million in principal amount.

      Compass assisted HSBC with valuation issues and, particularly, provided guidance regarding calculation methodologies for make-whole and pre-payment of the Notes, pricing models, post-petition interest, and other matters protecting the interest of HSBC as Indenture Trustee.  Compass also prepared for expert witness testimony in connection with these matters.

      Calpine Corporation's Sixth Amended Joint Plan of Reorganization was confirmed on December 19, 2007, and the company exited Chapter 11 on the plan's Effective Date, January 31, 2008.  Calpine Corporation, a nation-wide power producer and once the largest producer of geothermal energy in the U.S., successfully reduced its debt by $7.3 billion.