Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.5  

 
 
REVOLVING CREDIT AGREEMENT  

 dated as of April 27, 2004  

 by and between  

 EDISON MISSION MARKETING & TRADING, INC.

as Borrower  

 and  

 MIDWEST GENERATION, LLC,

as Lender  

   REVOLVING CREDIT AGREEMENT  

        This REVOLVING CREDIT AGREEMENT, dated as of April 27, 2004 (this "Agreement"), is by and between EDISON
MISSION MARKETING & TRADING., INC., a California corporation, as borrower ("Borrower"), and MIDWEST GENERATION, LLC, a Delaware limited
liability company, as lender ("Lender"). 

RECITALS  

        WHEREAS, Borrower may from time to time engage in Permitted Trading Activities, conducted for the benefit of the Lender, pursuant to which Borrower may from time
to time be subjected to margin calls or be required to provide independent amounts or other collateral in support of such Permitted Trading Activities; and 

        WHEREAS,
Borrower has requested that Lender make revolving loans to Borrower, and/or have letters of credit issued on behalf of Borrower, from time to time in an aggregate amount not to
exceed $200,000,000, in support of such Permitted Trading Activities; and 

        WHEREAS,
Lender may from time to time obtain funds to provide to Borrower, and/or have letters of credit issued on behalf of Borrower, under the MWG Credit Agreement referred to below,
in each case to the extent that providing such funds and/or letters of credit constitute Permitted Marketing Support; and 

        WHEREAS,
Lender has agreed to make such loans to Borrower, and/or have letters of credit issued on behalf of Borrower, on the terms and subject to the conditions contained herein. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows: 

ARTICLE 1  

 DEFINITIONS; PRINCIPLES OF CONSTRUCTION  

        1.1    Definitions.    

        (a)    Credit Agreement.    Unless otherwise expressly provided herein, capitalized terms used but not defined in this
Agreement (including in the recitals hereto) shall have the meanings given to such terms in the Credit Agreement, dated as of April 27, 2004 (as amended, supplemented, amended and restated,
supplemented or otherwise modified in accordance with its terms, the "MWG Credit Agreement"), between Lender, certain commercial lending institutions
party thereto, Citicorp North America, Inc., as administrative agent, and the issuing lenders party thereto. 

        (b)    Other Defined Terms.    The following terms, when used herein, shall have the following meanings: 

        "Borrower" shall have the meaning given to such term in the preamble. 

        "Borrower's Representative" shall mean the persons designated in a notice provided by the President or Chief Executive Officer of Borrower
to Lender from time to time, provided that the initial Borrower's Representatives shall be: the Vice President, Finance—Americas Group of Lender, the President of Borrower, the Director,
Finance of Borrower, the Manager, Corporate Accounting of Borrower, and the Manager, Trade Accounting of Borrower. 

        "Borrowing Deadline" shall have the meaning given to such term in Section 2.2. 

2

 

        "Borrowing Request" shall mean a request for a Revolving Loan in the form and otherwise delivered in accordance with  Exhibit B. 

        "Event of Default" shall have the meaning given to such term in Section 3.1. 

        "Lender" shall have the meaning given to such term in the preamble. 

        "Lender's Representative" shall mean any person designated in a notice provided by the Chief Financial Officer of Lender to Borrower from
time to time, and shall be a representative of Lender's cash management group authorized to receive and process Borrowing and Letter of Credit Requests under this Agreement, provided that the initial
Lender's Representatives shall be Treasurer, Assistant Treasurer, Manager Treasury Operations, Manager Loan Administration, and Senior Cash Manager. 

        "Letter of Credit" shall have the meaning given to such item in Section 2.1. 

        "Letter of Credit Request" shall mean a request for a Letter of Credit in the form and otherwise delivered in accordance with  Exhibit C. 

        "Revolver Commitment" shall have the meaning given to such term in Section 2.1. 

        "Revolver Note" shall have the meaning given to such term in Section 2.1. 

        "Revolving Loan" shall have the meaning given to such term in Section 2.1. 

        "Termination Date" shall mean the latest date during the "Working Capital Availability Period" provided for, and as defined, in the MWG
Credit Agreement 

        1.2    Principles of Construction.    Unless otherwise expressly provided herein, the principles of construction set
forth in the MWG Credit Agreement shall apply to this Agreement. 

ARTICLE 2  

 REVOLVING LOANS; LETTERS OF CREDIT; PAYMENTS  

        2.1    Revolving Loans.    

        Borrowings/Letters of Credit.    From time to time on any day occurring prior to the Termination Date, Lender shall make loans to Borrower
(each a
"Revolving Loan"), and/or cause to be issued letters of credit on behalf of Borrower (each a "Letter of
Credit") in the amounts requested in writing by a Borrower's Representative; provided that (i) the aggregate amount of
Revolving Loans and Letters of Credit outstanding shall not at any time exceed $200,000,000 (the "Revolver Commitment") and (ii) Lender shall not
be required to make any such loan or cause the issuance of such letters of credit unless making such loans or causing the issuance of such letters of credit would constitute the provision of Permitted
Marketing Support by Lender. Borrower may from time to time borrow, prepay, in whole or in part, and reborrow Revolving Loans and/or request the cancellation or reissuance of Letters of Credit.
Simultaneously herewith, borrower shall execute a promissory note for Revolving Loans in form and substance substantially similar to Exhibit A
hereto or otherwise in form and substance as is agreed by the parties hereto (the "Revolver Note"), in either case in the principal amount of the
Revolver Commitment. 

        2.2.    Procedure for Obtaining Revolving Loans.    By delivering a Borrowing Request to the Lender's Representative
on or before the close of business, New York City time, on a Business Day (the "Borrowing Deadline"), the Borrower may from time to time irrevocably
request, and Lender shall provide, Revolving Loans on the terms and subject to the conditions of this Agreement. By the close of business, New York City time, on the next succeeding Business Day, the
Lender shall deposit immediately available funds in an account or accounts specified in the Borrowing Request. On the date 

3

 

of
each such Revolving Loan, Lender's Representative shall record the details of such Revolving Loan on the grid attached to the Revolver Note. 

        2.3.    Principal Payments.    

        (a)    Regular Repayments.    The Revolving Loans shall mature, and Borrower unconditionally promises to pay in full
the unpaid principal of each Revolving Loan to Lender, on the Termination Date. In addition, on each Friday (or if Friday is not a Business Day, the next preceding Business Day), Borrower shall repay
to Lender the principal amount of any Revolving Loans which, taking into account any outstanding Letters of Credit issued pursuant to  Section 2.5, are no longer required to provide Permitted
Marketing Support. 

        (b)    Optional Prepayments.    At any time and from time to time Borrower may make a voluntary prepayment, in whole
or in part, of the outstanding principal amount of the Revolving Loans. Each prepayment of Revolving Loans made pursuant to this clause (b) shall be without premium or penalty. No voluntary
prepayment of Revolving Loans shall cause a reduction in the Revolver Commitment. 

        (c)    Mandatory Prepayments.    Borrower shall, immediately upon any acceleration of Revolving Loans pursuant to  Section 3.2,
repay all Revolving Loans, unless, pursuant to Section 3.2(b), only a portion
of all Revolving Loans is so accelerated, in which event Borrower shall repay such portion. 

        (d)    Grid Update/Note Return.    On the date of repayment or prepayment of principal of, and payment of other
amounts pursuant to Section 2.4 on, Revolving Loans issued pursuant to Section 2.1,
Lender's Representative shall record the details of such repayment, prepayment or payment on the grid attached to the Revolver Note. 

        2.4.    No Interest.    There shall be no interest payable in respect of Revolving Loans;  provided that Borrower shall pay to Lender,
 in lieu of any such interest, any amounts received by Borrower from third parties constituting interest paid
to Borrower by such third parties on amounts deposited by Borrower with such third parties to the extent that such deposits were made from the proceeds of Permitted Marketing Support. Such amounts
shall be paid on each Friday (or if Friday is not a Business Day, the next preceding Business Day) after the date on which such amounts are received by Borrower. 

        2.5.    Procedure for Obtaining Letters of Credit.    By delivering a Letter of Credit Request to the Lender's
Representative on or before the close of business, New York City time, on a Business Day (the "Borrowing Deadline"), Borrower may from time to time
irrevocably request, and Lender shall cause the issuance of, Letters of Credit which are expected to be substantially in the form of Attachment 1 to Exhibit C hereto, subject to any such Letter
of Credit being acceptable to the issuer and the beneficiary thereof, and on the terms and subject to the conditions of this Agreement. Any such Letters of Credit shall be subject to the terms and
conditions, timing restrictions, and other limitations, of the MWG Credit Agreement. 

        2.6.    Draws on Letters of Credit.    Any draw on a Letter of Credit shall be treated hereunder as a conversion of
the Letter of Credit to a Revolving Loan to the extent of the draw and effective as of the time of the draw. 

ARTICLE 3  

 EVENTS OF DEFAULT; REMEDIES  

        3.1    Events of Default Defined.    Each of the following events or occurrences described in this  Section 3.1 shall
constitute an "Event of Default" hereunder: 

        (a)    Non-Payment of Obligations.    Borrower shall default in (i) the payment or prepayment when
due of any principal of any Revolving Loan or (ii) the payment of any other amount in 

4

 

respect
of any Revolving Loan, Letter of Credit or any other obligation of Borrower hereunder, and such failure to pay such amount shall continue for five (5) Business Days after any such
amount or other obligation becomes due in accordance with the terms hereof. 

        (b)    Breach of Warranty.    Any certificate furnished by or on behalf of Borrower to Lender for the purposes of or
in connection with this Agreement is or shall be incorrect when made or deemed made in any material respect. 

        (c)    Non-Performance of Covenants.    Borrower shall default in the due performance of any covenant or
agreement contained herein and such default shall continue unremedied for a period of thirty (30) days after written notice thereof shall have been given to Borrower by Lender. 

        (d)    Default on Other Indebtedness; Judgments.    (i) A default shall occur in the payment when due (subject
to any applicable grace period), whether by acceleration or otherwise, of any EMMT Indebtedness (other than EMMT Indebtedness described in clause (a) above) of Borrower having a principal
amount, individually or in the aggregate, of at least $20,000,000, or a default shall occur in the performance or observance of any obligation or condition with respect to such EMMT Indebtedness if
the effect of such default is to accelerate the maturity of any such EMMT Indebtedness or such default shall continue unremedied for any applicable period of time sufficient to permit the holder or
holders of
such Indebtedness, or any trustee or agent for such holders, to cause such EMMT Indebtedness to become due and payable prior to its expressed maturity; or (ii) any judgment or order for the
payment of money in excess of $20,000,000 (taking into account any insurance proceeds payable under a policy where the insurer has accepted coverage without reservation) shall be rendered against
Borrower and such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within sixty (60) days from the entry thereof. 

        (e)    Bankruptcy, Insolvency.    Borrower shall: 

        (i)    become
insolvent or generally fail to pay, or admit in writing its inability or unwillingness to pay, debts as they become due; 

        (ii)   apply
for, consent to, or acquiesce in, the appointment of a trustee, receiver, sequestrator or other custodian for Borrower or a substantial portion of its property,
or make a general assignment for the benefit of creditors; 

        (iii)  in
the absence of such application, consent or acquiescence, permit or suffer to exist the appointment of a trustee, receiver, sequestrator or other custodian for
Borrower or for a substantial part of its property, and such trustee, receiver, sequestrator or other custodian shall not be discharged within sixty (60) days; 

        (iv)  permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or
any dissolution, winding up or liquidation proceeding, in respect of Borrower, and, if any such case or proceeding is not commenced by Borrower, such case or proceeding shall be consented to or
acquiesced in by Borrower or shall result in the entry of an order for relief or shall remain for sixty (60) days undismissed; or 

        (v)   take
any corporate action authorizing, or in furtherance of, any of the foregoing. 

        3.2.    Remedies.    

        (a)    Remedies Upon a Bankruptcy.    If an Event of Default described in clause (e) of  Section 3.1 shall occur, the
obligation of Lender to make Revolving Loans hereunder shall automatically terminate and the outstanding principal
amount of all Revolving Loans and other obligations of Borrower hereunder shall automatically be and become immediately due and payable, and all Letters of Credit issued on behalf of Borrower shall be
immediately returned to 

5

 

Lender
or 100% cash collateralized by Borrower, without notice, demand or presentment, all of which are hereby waived by Borrower. 

        (b)    Remedies Upon Other Events of Default.    If any Event of Default (other than an Event of Default described in
clause (e) of Section 3.1) shall occur for any reason, whether voluntary or involuntary, and be continuing, Lender, by written notice to
Borrower, may declare (i) the obligation of Lender to make Revolving Loans to Borrower hereunder to be terminated (if not theretofore terminated) and/or (ii) all or any portion of the
outstanding principal amount of Revolving Loans and other obligations of Borrower hereunder to be due and payable, and all Letters of Credit issued on behalf of Borrower shall be immediately returned
to Lender or 100% cash collateralized, whereupon the obligation of Lender to make Revolving Loans to Borrower and to have issued on behalf of Borrower Letters of Credit shall terminate and/or the
outstanding principal amount of Revolving Loans and other obligations of Borrower hereunder which shall be so declared due and payable shall be and become immediately due and payable, and all Letters
of Credit issued on behalf of Borrower shall be immediately returned to Lender or 100% cash collateralized, without further notice, demand or presentment, all of which are hereby waived by Borrower. 

        (c)    Cash Collateralization.    As used in Sections 3.2(a) and  (b) above, "cash
collateralization" shall mean the immediate deposit into an account established and maintained by the Lender, which account may be a
"securities account" (within the meaning of Section 8-501 of the Uniform Commercial Code as in effect in the State of New York), in the name of and for the benefit of the Lender, of
cash in an amount equal to the outstanding amount of all Letters of Credit. 

        (d)    Rescission of Declaration.    Any declaration made pursuant to clause (b) above may, should Lender in
its absolute discretion so elect, be rescinded by written notice to Borrower at any time after the principal of the Revolving Loans shall have become due and payable, but before any judgment or decree
for the payment of the monies so due, or any part thereof, shall have been entered; provided that Borrower shall have paid all other amounts then owed
to Lender including all costs, expenses and liabilities incurred by Lender in respect of such declaration and all consequences thereof (except principal of the Revolving Loans which by such
declaration shall have become payable) and every other Event of Default shall have been made good, waived or cured; and provided,  further, that no such
rescission or annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereon. 

ARTICLE 4  

 MISCELLANEOUS PROVISIONS  

        4.1.    Waivers, Amendments.    

        (a)   The
provisions of this Agreement may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to by
Borrower and Lender. 

        (b)   No
failure or delay on the part of Lender in exercising any power or right under this Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on Borrower in any case shall entitle it to any
notice or demand in similar or other circumstances. No waiver or approval by Lender under this Agreement shall, except as may be otherwise stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. 

        4.2.    Notices.    All notices and other communications, other than Borrowing and Letter of Credit Requests, provided
to any party hereto under this Agreement shall be in writing or by facsimile and 

6

 

addressed,
delivered or transmitted to such party at its address or facsimile number set forth below or at such other address or facsimile number as may be designated by such party in a written notice
to the other party: 

	To Borrower:	 	Edison Mission Marketing & Trading, Inc.

160 Federal Street

Boston, MA 02110-1776

Attention: Director, Finance

Telephone: (617) 912-6000

Facsimile: (617) 912-6005
	

To Lender:	
 	

Midwest Generation, LLC

One Financial Place

440 South LaSalle Street Suite 3500

Chicago, IL 60605

Attn: Georgia R. Nelson

Facsimile No.: (312) 581-6111

Any
notice, if mailed and properly addressed with postage prepaid shall be effective five (5) Business Days after being sent or if properly addressed and sent by pre-paid courier
service, shall be deemed given when received; any notice, if transmitted by facsimile, shall be deemed given when transmitted (if confirmed). Borrowing and Letter of Credit Requests shall be provided
pursuant to the provisions of Appendices B and C, respectively, attached hereto. 

        4.3.    Severability.    Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction. 

        4.4.    Headings.    The various headings of this Agreement are inserted for convenience only and shall not affect the
meaning or interpretation of this Agreement or any provisions hereof. 

        4.5.    Execution in Counterparts, Effectiveness.    This Agreement may be executed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. 

        4.6.    Governing Law; Entire Agreement.    THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY
THE LAWS OF THE STATE OF NEW
YORK. This Agreement constitutes the entire understanding among the parties hereto with respect to the subject matter hereof and supersede any prior agreements, written or oral, with respect thereto. 

        4.7.    Successors and Assigns.    This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns; provided, however, that Borrower may not assign or
transfer its rights or obligations hereunder without the prior written consent of Lender. 

        4.8.    Forum Selection and Consent to Jurisdiction.    ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF LENDER OR BORROWER SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE
STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK. BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK, FOR
THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. BORROWER FURTHER IRREVOCABLY 

7

 

CONSENTS
TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OF FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, BORROWER HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS AGREEMENT. 

        4.9.    Waiver of Jury Trial.    LENDER AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS
THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF LENDER OR BORROWER. BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR LENDER ENTERING INTO THIS AGREEMENT. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Revolving Credit Agreement to be executed by their respective officers as of the day and year first above written. 

	 	 	EDISON MISSION MARKETING & TRADING, INC.

as Borrower
	

 	
 	

By:	
 	

/s/  JOHN P. FINNERAN, JR.      
 Name: John P. Finneran, Jr.

Title: Vice President
	

 	
 	

MIDWEST GENERATION, LLC,

as Lender
	

 	
 	

By:	
 	

/s/  JOHN P. FINNERAN, JR.      
 Name: John P. Finneran, Jr.

Title: Vice President

8

EXHIBIT A to

Revolving Credit Agreement  

[FORM OF]

NOTE  

	$200,000,000.00	 	[DATE]

        FOR
VALUE RECEIVED, the undersigned, EDISON MISSION MARKETING TRADING, INC., a California corporation ("Borrower"), promises to pay
to the order of MIDWEST GENERATION, LLC, a Delaware limited liability company ("Lender"), on or before the Termination Date, the principal sum of
$200,000,000.00 or such lesser amount which Lender advances to Borrower from time to time pursuant to that certain Revolving Credit Agreement, dated as of April 27, 2004 (the
"Revolving Credit Agreement"), by and between Borrower and Lender. All requests by Borrower for advances under this Note shall be made in such manner
and form and with such prior notice as prescribed in the Revolving Credit Agreement. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Revolving Credit
Agreement. 

        Borrower
also promises to pay to Lender the amounts specified in Section 2.4 of the Revolving Credit Agreement. Payments of such amounts and of principal are to be made in Dollars
in same day or immediately available funds to the account designated in a writing delivered by Lender to Borrower. 

        This
Note evidences Indebtedness incurred under the Revolving Credit Agreement to which reference is made for a statement of the terms and conditions on which Borrower is permitted and
required to make prepayments and repayments of principal of the Indebtedness evidenced by this Note and on which such Indebtedness may be declared to be immediately due and payable. 

        The
Borrower hereby irrevocably authorizes the Lender to make (or cause to be made) appropriate notations on the grid attached to this Note (or on any continuation of such grid), which
notations, if made, shall evidence, inter alia, the date of, the outstanding principal balance of the Revolving Loans evidenced hereby. Such notations
shall be rebuttable presumptive evidence of the information so set forth; provided, however, that the failure of Lender to make any such notations shall not limit or otherwise affect any obligations
of Borrower. 

        All
parties hereto, whether as makers, endorsers or otherwise, severally waive presentment for payment, demand, protest and notice of dishonor. 

        If
any payment on this Note becomes due and payable on a date which is not a Business Day, such payment shall be made on the next succeeding Business Day. 

        THIS
NOTE HAS BEEN DELIVERED IN NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK. 

	 	 	EDISON MISSION MARKETING & TRADING, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

REVOLVING LOANS AND PRINCIPAL PAYMENTS  

	Date
 
	 	Amount of

Revolving Loan
	 	Amount of

Principal Repaid
	 	Unpaid Principal

Balance
	 	Notation Made By

	 	 	 	 	 	 	 	 	 

EXHIBIT B to

Revolving Credit Agreement  

[FORM OF]

BORROWING REQUEST  

Midwest
Generation, LLC

One Financial Place

440 South LaSalle Street Suite 3500

Chicago, IL 60605

Attn: Georgia R. Nelson

Facsimile No.: (312) 581-6111 

EDISON MISSION MARKETING & TRADING, INC.  

Ladies
and Gentlemen: 

        This
Borrowing Request is delivered to you pursuant to Section 2.2 of the Revolving Credit Agreement, dated as of April 27, 2004 (together with all amendments, supplements
and other modifications, if any, from time to time thereafter made thereto, the "Credit Agreement"), between Edison Mission Marketing & Trading, Inc. (the "Borrower") and Midwest
Generation, LLC (the "Lender"). Unless otherwise defined herein or the context otherwise requires, terms used herein have the meanings provided in the Credit Agreement. 

        The
Borrower hereby requests that Revolving Loans be made in the aggregate principal amount
of                  on                  . The Borrower hereby confirms
that the proceeds of the
Borrowing will be used for the purposes permitted in the Credit Agreement. Without limitation on the foregoing, Borrower certifies that the proceeds of the Borrowing will be used solely to support
Permitted Trading Activities conducted by Borrower for the benefit of Lender. 

        Please
wire transfer the proceeds of the Borrowing to the accounts of the following persons at the financial institutions indicated respectively: 

        Amount
to be Transferred 

        Financial
Institution 

        Routing
Number 

        Account
Party 

        Account
Number 

        Special
Instructions 

        The
Borrower has caused this Borrowing Request to be executed and delivered by its Authorized Representative on this            day
of                        ,            . 

	 	 	EDISON MISSION MARKETING & TRADING, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:

EXHIBIT C to

Revolving Credit Agreement  

[FORM OF]

LETTER OF CREDIT REQUEST  

Midwest
Generation, LLC

One Financial Place

440 South LaSalle Street Suite 3500

Chicago, IL 60605

Attn: Georgia R. Nelson

Facsimile No.: (312) 581-6111 

EDISON MISSION MARKETING & TRADING, INC.  

Ladies
and Gentlemen: 

        This
Letter of Credit Request is delivered to you pursuant to Section 2.5 of the Revolving Credit Agreement, dated as of April 27, 2004 (together with all amendments,
supplements and other modifications, if any, from time to time thereafter made thereto, the "Credit Agreement"), between Edison Mission Marketing & Trading, Inc. (the "Borrower") and
Midwest Generation, LLC (the "Lender"). Unless otherwise defined herein or the context otherwise requires, terms used herein have the meanings provided in the Credit Agreement. 

        The
Borrower hereby requests that Letters of Credit be issued in the aggregate principal amount
of                        on                 
       to the persons listed below in the form attached as
Attachment 1 hereto. The Borrower hereby
confirms that such Letters of Credit will be used for the purposes permitted in the Credit Agreement. Without limitation on the foregoing, Borrower certifies that such Letters of Credit will be used
solely to support Permitted Trading Activities conducted by Borrower for the benefit of Lender. 

        Please
have the Letters of Credit issued as follows: 

        Amount:

        Beneficiary:

        Expiration
Date: 

        Special
Instructions 

        The
Borrower has caused this Letter of Credit Request to be executed and delivered by its Authorized Representative on this            day
of                        ,            .
 

	 	 	EDISON MISSION MARKETING & TRADING, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	Name:

Title:	 	 

ATTACHMENT 1 to EXHIBIT C to

Revolving Credit Agreement  

[FORM OF]

LETTER OF CREDIT  

Midwest Generation, LLC—Revolver Letter of Credit  

Applicant
Address: 

Midwest
Generation, LLC

One Financial Place

440 South LaSalle Street Suite 3500

Chicago, IL 60605

Attn: Georgia R. Nelson 

For
Account of: 

Edison
Mission Marketing & Trading, Inc.

160 Federal Street

Boston, MA 02110-1776 

In
Favor of: (Beneficiary) 

Attn:

Amount:

Expiration:

        We
hereby issue our Irrevocable Letter of Credit No.                        in your favor for the account of Edison Mission
Marketing & Trading, Inc. ("Applicant") located at 160
Federal Street, Boston, MA 02110-1776, for an aggregate amount up to U.S. [                        ] (the "Stated Amount").

        Funds
under this Letter of Credit are available to the Beneficiary against your drafts at sight drawn on Citibank, N.A. (the "Bank"), and accompanied by the following: 

        A
certificate signed by an authorized signor of the Beneficiary stating "Edison Mission Marketing & Trading, Inc., is in default under one or more agreements between Edison
Mission Marketing & Trading, Inc., and [Beneficiary's name], and [Beneficiary's name] is therefore entitled to
[                        ] pursuant to said agreement." 

        Certificates
showing amounts due in excess of amounts available under this Letter of Credit are acceptable, however, in no event will payment exceed the amount available to be drawn
under this Letter of Credit. 

        Presentation
of sight drafts shall be made at our office located at Citibank, N.A. c/o Citicorp North America Inc., 3800 Citigroup Center, Bldg. (F), 1st Floor Tampa, Florida,
33610, Attention: Standby Letter of Credit Department, phone number (813) 604-7180, (or at such other office as the Bank may designate by written notice). Each draft must be marked
"Drawn under Citibank, N.A., Letter of Credit No.                        ." Presentation of such drafts may be made (a) by
physical presentation, (b) by facsimile transmission of such draft
received by the Bank at the address above (fax number (813) 604-7187) with prior concurrent telephone notice to the Bank. The Bank hereby agrees that the draft drawn under and in
compliance with the terms of this Letter of Credit will be duly honored by the Bank upon delivery of the documents to be presented at such office on or before the Termination Date at the office
specified above. 

        Partial
drawings are permitted. 

        The
fax shall act as operative instrument pending receipt by Beneficiary of hard copy via courier. 

        This
is an integral part of Letter of Credit No.    : 

        Except
so far as otherwise expressly stated herein, this Letter of Credit is subject to the International Standby Practice, International Chamber of Commerce, Publication NO. 590
("ISP98"). Matters not addressed by the ISP98 shall be governed and construed in accordance with applicable New York State and Federal Laws. 

QuickLinks

REVOLVING CREDIT AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.1  

 
 

MANAGEMENT AND ADMINISTRATION AGREEMENT
  EME HOMER CITY GENERATION L.P.    
    

        This MANAGEMENT AND ADMINISTRATION AGREEMENT ("Agreement") is made and entered into effective as of
April 27, 2004. The parties to this Agreement are EME Homer City Generation L.P., a Pennsylvania limited partnership ("Homer City"), and Midwest
Generation EME, LLC, a Delaware limited liability company ("Midwest Gen EME"). Each of Homer City and Midwest Gen EME is sometimes referred to herein
individually as a "Party" and they are collectively designated as the "Parties". 

 
 

RECITALS    
    

	A.
	Midwest
Gen EME provides centralized management and administration for the benefit of its subsidiaries and affiliates (as more particularly defined in  Exhibit A attached hereto), including Homer City.

	B.
	Homer
City benefits from such management and administration activities (referred to as "M&A Activities") and agrees to reimburse Midwest
Gen EME for direct and indirect costs attributable to such M&A Activities. 

 
 

TERMS AND CONDITIONS    
    

        In consideration of the promises set forth herein, and other good and valuable consideration, and with the intent to be legally bound, the Parties agree as
follows: 

1.    Agreement Term.    This Agreement shall commence as of the effective date set forth above and shall terminate in accordance
with the provisions hereof. 

2.    Scope of Management and Administration Activities.    

	(a)
	Management
and administration can be more efficiently provided on a centralized basis by Midwest Gen EME. The scope of M&A Activities is described in  Exhibit A.

	(b)
	Midwest
Gen EME may engage third parties to perform the M&A Activities described in Exhibit A. 

3.    Cost Reimbursement and Payment.    

	(a)
	The
costs of the centralized management and administration incurred by Midwest Gen EME hereunder shall be segregated by functional area of M&A Activities. Homer City agrees that costs
incurred by Midwest Gen EME in providing the M&A activities shall be reimbursed in accordance with Exhibit A;  provided, however, in any event, such cost reimbursement shall not exceed the amount that would have
been due for the provision of comparable M&A Activities by an unrelated person.

	(b)
	Invoices
for M&A activities shall show:

	1)
	All
direct costs incurred directly for Homer City, and 
	2)
	Allocable
costs incurred by function broken down by cost type.

	(c)
	Midwest
Gen EME agrees that the cost reimbursement set forth in this Agreement (with respect to M&A Activities) constitutes Midwest Gen EME's entire reimbursement, and that no other
liability related to such activities rests with Homer City. 

1

 
	(d)
	Midwest
Gen EME's direct and indirect expenses do not include any home office cost allocations by Edison Mission Energy or its parent companies.

	(e)
	Midwest
Gen EME shall issue invoices from time to time, but not more often than monthly, for all M&A Activities performed under this Agreement. Invoices shall be in a form
satisfactory to Homer City and shall be supported by such documents as Homer City may reasonably request. Homer City shall have the right at any time to review the detailed charges that support the
monthly invoices.

	(f)
	Invoices
rendered under this Agreement shall be due and payable within ten (10) days of receipt by Homer City. In the case of a dispute over amounts invoiced by Midwest Gen
EME, Homer City shall pay the undisputed portion of the invoice in full and promptly notify Midwest Gen EME of such dispute and the reasons therefor. Promptly after receipt of such a notice, the
Parties shall consult together with a view to resolving the dispute, failing which either Party may seek resolution of the dispute in a court having venue and jurisdiction as provided in
Paragraph 16. Any amounts owing under this Agreement which are not paid within thirty (30) days after the due date shall accrue interest at a rate equal to the lesser of (i) one
and one-half percent (1.5%) per month or (ii) the maximum rate allowed by law. 

4.    Insurance.    Midwest Gen EME and Homer City waive all rights against each other and their directors, officers, partners,
agents, subcontractors, and employees for damages covered by insurance during and after the completion of the M&A Activities. 

5.    Accounting Records.    Midwest Gen EME shall maintain complete and accurate records in connection with this Agreement and all
transactions related thereto and all such records shall be maintained for at least two years after the term of this Agreement. During the term of this Agreement and for two years thereafter, Midwest
Gen EME shall make its books and records available to Homer City and their duly
authorized representatives for inspection and audit at Midwest Gen EME's regular place of business and during normal business hours to the extent necessary to verify the amounts claimed and to verify
compliance with laws. 

6.    Termination/Modification.    Homer City may terminate this Agreement with or without cause upon fourteen (14) days
prior written notice to Midwest Gen EME. In the event this Agreement is terminated, Homer City shall pay for the portion of the M&A Activities performed through the date of termination (determined, if
necessary, on a pro rata basis), as well as any other amounts due and payable to Midwest Gen EME as of the date of termination and, upon such payment, Homer City shall have no further obligation to
Midwest Gen EME. Following any notice of termination, Midwest Gen EME shall fully cooperate with Homer City in all matters relating to the winding up of its pending M&A Activities on behalf of Homer
City and the orderly transfer of any such pending M&A Activities to such other persons as may be designated by Homer City. Upon termination of this Agreement, Midwest Gen EME shall deliver to Homer
City all Work Product (as defined in Paragraph 8 below) and other information received from Homer City. Homer City's rights and remedies under this Paragraph 6 shall in no way limit
Homer City's rights as set forth in Paragraph 3 above or as otherwise provided by law. 

7.    Force Majeure.    If either Party is prevented or delayed in performing its duties hereunder (other than Homer City's duty to
compensate Midwest Gen EME hereunder) due to an event of Force Majeure, the time provided for performance by such Party shall be extended for a period equal to the period by which its performance was
prevented or delayed by Force Majeure. "Force Majeure" shall mean an event outside a Party's reasonable control, which event such Party is unable to prevent or provide against by the exercise of
reasonable diligence, and shall include, but not be limited to, acts of God or the public enemy, war, insurrection, riot, civil commotion, fire, flood, explosion, hurricane, tornado, epidemic,
earthquake, strikes and other labor disputes and changes (after execution of this Agreement) in applicable laws, regulations and orders of governmental authorities. The extension 

2

 

arising
from a Force Majeure shall only be granted if notice is given by the Party requesting a delay to the other Party within ten (10) days of such Party's discovery of the event of Force
Majeure. 

8.    Rights in Work Product.    Except as set forth immediately below, Midwest Gen EME hereby grants to Homer City, and Homer City
hereby accepts, the entire right, title and interest of Midwest Gen EME in and to the Work Product and to all copyrights, trade secrets, and other proprietary rights therein or based thereon. Midwest
Gen EME reserves to itself the right to use the Work Product in connection with the rendering of M&A Activities to others. "Work Product" shall mean all data, documentation, software and information,
in whatever form, first produced or created by or for Midwest Gen EME, or provided to or by Midwest Gen EME as a result of or related to the performance of the M&A Activities. Midwest Gen EME and
Homer City agree that if the Work Product or any portion thereof is copyrightable, it shall be deemed to be a "work made for hire," as such term is defined in the Copyright Laws of the United States. 

        Midwest
Gen EME hereby grants to Homer City, and Homer City hereby accepts, a non-transferable, perpetual, irrevocable, royalty-free, fully paid-up,
worldwide and nonexclusive right and license to use the Background Work in connection with its use of the Work Product. "Background Work" shall mean all data, documentation, software and information,
in whatever form, not first produced or created by or for Midwest Gen EME as a result of or related to the performance of the M&A Activities, but included in or with or necessary for the use of the
Work Product or any portion thereof. Anything else in this Agreement notwithstanding, Midwest Gen EME shall retain any of its proprietary rights in and to the Background Work. 

9.    Representations.    Each Party hereto represents that it is a limited liability company or partnership duly organized, validly
existing and in good standing under the laws of its jurisdiction of formation and that performance of this Agreement will not violate any law, permit or agreement to which it is subject. 

10.    Notices.    All notices required or permitted to be given under this Agreement shall be in writing and shall be deemed to be
duly given when personally delivered by a commercial messenger service, supported by a receipt of delivery, or when delivered by facsimile transmission supported by receipt. Unless a Party changes its
address by giving notice to the other Party as provided herein, notices shall be delivered to the Parties at the addresses set forth below: 

	Midwest Generation EME, LLC

One Financial Place

440 South LaSalle Street, Suite 3500

Chicago, Illinois 60605

Attention: General Counsel

Fax: 312-583-4998	 	EME Homer City Generation L.P.

c/o Edison Mission Energy

18101 Von Karman Ave., Suite 1700

Irvine, California 92612

Attention: General Counsel

Fax: 949-752-5624

11.    Subcontracting.    Midwest Gen EME shall have the right to have any of the M&A Activities accomplished by subcontractors. No
subcontract shall in any way diminish Midwest Gen EME's obligations under this Agreement. 

12.    Governing Law.    This Agreement and the obligations of the Parties hereunder shall be interpreted in accordance with and
controlled by the laws of the State of Illinois without regard to the rules concerning conflicts of law. 

13.    Integration; Amendment.    This Agreement constitutes the entire agreement of the Parties relating to the subject matter
hereof. There are no promises, terms, conditions, obligations, or warranties other than those contained in this Agreement. This Agreement supersedes all prior communications, representations, or
agreements, verbal or written, among the Parties relating to the subject matter hereof. Amendments to this Agreement shall not be valid unless evidenced in writing and executed by the Parties. 

3

 

14.    Waiver.    No provision of this Agreement shall be deemed to have been waived unless such waiver is in writing signed by the
waiving Party. No failure by any Party to insist upon the strict performance of any provision of this Agreement, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a
waiver of any such breach, of such provision or of any other provision. No waiver of any provision of this Agreement shall be deemed a waiver of any other provision of this Agreement or a waiver of
such provision with respect to any subsequent breach, unless expressly provided in writing. 

15.    Attorney's Fees.    If any arbitration, suit or action arising out of or related to this Agreement is brought by any Party,
the prevailing Party or Parties shall be entitled to recover the costs and fees (including without limitation reasonable attorneys' fees, the fees and costs of experts and consultants, copying,
courier and telecommunication costs, and deposition costs and all other costs of discovery) incurred by such Party or Parties in such arbitration, suit or action, including without limitation any
post-trial or appellate proceeding, or in the collection or enforcement of any judgment or award entered or made in such suit or action. 

16.    Jurisdiction; Venue; Service.    The Parties each consent to the venue and jurisdiction of any state and federal court
located in Illinois. Each Party agrees that service of process may be made upon it wherever it can be located or by certified mail directed to its address for notices under this Agreement. 

17.    Successors and Assigns.    This Agreement shall be binding upon and shall be to the benefit of the Parties and their
respective successors and assigns; provided, however, that, except for assignments by Homer City to its
affiliate(s), neither Party shall assign any of its rights or delegate or subcontract the performance of any of its duties under this Agreement without the prior written consent of the other Party;
and any such assignment or subcontract without obtaining prior written consent shall be void. 

18.    Counterparts; No Third-Party Beneficiary Rights.    This Agreement may be executed in any number of counterparts, all of
which when taken together shall constitute one agreement binding on all Parties, notwithstanding that all Parties are not signatories to the same counterpart. No person not a Party to this Agreement
is an intended beneficiary of this Agreement, and no person not a Party to this Agreement shall have any right to enforce any term of this Agreement. 

19.    Miscellaneous.    The section headings in this Agreement are included for convenience only; they do not give full notice of
the terms of any portion of this Agreement and are not relevant to the interpretation of any provision of this Agreement. All schedules and exhibits referenced in and attached to this Agreement are by
this reference incorporated into and made a part of this Agreement. Any provision of this Agreement that is deemed invalid or unenforceable shall be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining provisions of this Agreement. 

20.    Limitation of Liability.    Neither Party shall be liable to the other Party, whether in contract, in tort (including
negligence and strict liability), under any warranty or otherwise, for any special, indirect or consequential loss or damage of any nature whatsoever, including, without limitation, loss of use of
equipment or power system, costs of capital, loss of profits or revenues or the loss of use thereof, cost of purchased or replacement power (including additional expenses incurred in using existing
power facilities or claims of Homer City arising out of or related to this Agreement), and Midwest Gen EME's total cumulative liability arising from, or with respect to, the M&A Activities performed
hereunder, whether based in contract or in tort (including negligence and strict liability), under any warranty or otherwise, shall not exceed the actual amount paid to Midwest Gen EME hereunder (with
respect to M&A Activities). 

4

 

        IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the date and year first above written. 

	EME HOMER CITY GENERATION L.P.	 	MIDWEST GENERATION EME, LLC
	

By:	

Mission Energy Westside, Inc.,	
 	

 	

 
	Its:	General Partner	 	 	 
	

By:	

/s/  STEVEN D. EISENBERG      
 Steven D. Eisenberg, Vice President	
 	

By:	

/s/  JOHN P. FINNERAN, JR.      
 John P. Finneran, Jr., Vice President

Attachments: 

Exhibit A—Definition
of M&A Activities

Exhibit B—Cost Reimbursement of M&A Activities 

5

 
EXHIBIT A

 
  DEFINITION OF M&A ACTIVITIES  

        For purposes of this Agreement, the term "M&A Activities" shall mean management, legal, payroll, human resources, accounting, legal, government affairs, tax and
other professional services, environmental, procurement and any other similar activity necessary or desirable for Homer City or its business. 

6

 
EXHIBIT B

 
  COST REIMBURSEMENT OF M&A ACTIVITIES  

        For purposes of this Agreement, Midwest Gen EME shall invoice directly identifiable legal and accounting costs incurred for the sole benefit of Homer City are an
actual basis with no mark-up or fee (such costs shall be identified as Direct Costs). For M&A activities which are not directly for the benefit of Homer City, Midwest Gen EME will allocate
the costs incurred in each function area on the following basis: 

	 	 	a)	 	Departments:	 	Payroll and Human Resources
	

 	
 	

 	
 	

Allocation basis	
 	

Total payroll costs (labor and benefits)
	

 	
 	

b)	
 	

Department:	
 	

Government Affairs
	

 	
 	

 	
 	

Allocation basis	
 	

100% to Homer City
	

 	
 	

c)	
 	

Department:	
 	

Legal
	

 	
 	

 	
 	

Allocation basis	
 	

Ratio of outside legal costs incurred.
	

 	
 	

d)	
 	

Department:	
 	

IT Chicago
	

 	
 	

 	
 	

Allocation basis	
 	

Ratio of terminals at Homer City plant site
	

 	
 	

e)	
 	

Departments:	
 	

Headquarters/Administration, Office Services, Financial Planning
	

 	
 	

 	
 	

Allocation basis	
 	

Total payroll costs (labor and benefits)

7

QuickLinks

MANAGEMENT AND ADMINISTRATION AGREEMENT EME HOMER CITY GENERATION L.P.

RECITALS

TERMS AND CONDITIONS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]