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Exhibit 10.31    
  

Execution Copy  

 
 

SUB-ASSIGNMENT AGREEMENT    
  

        SUB-ASSIGNMENT, dated as of December 7, 2001, between THE BANK OF NEW YORK (as successor to United States Trust Company), not in its individual
capacity but solely as Collateral Agent for the Owner Lessors (as defined below), as assignee ("Collateral Agent"); EME HOMER CITY GENERATION L.P., a
Pennsylvania limited partnership, as assignor ("Homer City"); EDISON MISSION MARKETING & TRADING, INC., a California corporation
("EMMT"), as consenting party; and EDISON MISSION ENERGY FUEL SERVICES, INC., a California corporation as consenting party; ("EMEFS", and
together with EMMT, the "Consenting Parties"). 

 
 

W I T N E S S E T H    
  

        WHEREAS, contemporaneously herewith, Homer City will enter into a transaction pursuant to the Participation Agreements listed on  Exhibit A by and among EME Homer City, each of the Owner Lessors party thereto (the "Owner
Lessors"), Wells Fargo Bank Northwest, National Association, not in its individual capacity but solely as Owner Manager, the Owner Participant, Homer City Funding LLC, as
Lender, the Lease Indenture Trustee, the Security Agent and The Bank of New York, not in its individual capacity but solely as Bondholder Trustee (as amended, modified and supplemented and in effect
from time to time, collectively, the "Participation Agreements") whereby Homer City will sell undivided interests in its generating assets to the Owner
Lessors and the Owner Lessors will lease such undivided interests in its generating assets back to Homer City under the Facility Leases. Capitalized terms used but not defined herein shall have the
meanings assigned to them in Appendix A to the Participation Agreements. 

        WHEREAS,
pursuant to the Ownership and Operation Agreement, the Collateral Agent has agreed to serve as a common collateral agent for the Owner Lessors. 

        WHEREAS,
in consideration of the transactions contemplated by the Participation Agreements, Homer City has agreed to, and simultaneously herewith will, assign, for the term of the
Facility Site Leases, all of its rights and interest in, to and under those certain Material Project Agreements more fully described on Exhibit B
hereto (the "Assigned Agreements") to the Collateral Agent for the benefit of the Owner Lessors pursuant to an assignment agreement (the
"Assignment Agreement"). 

        WHEREAS,
for the term of the Facility Leases, the Owner Lessors have agreed to subassign all their right, title and interest in, to and under the Assigned Agreements back to Homer City. 

        NOW,
THEREFORE, in consideration of the representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows: 

        1.    The
Collateral Agent acting on behalf of and as instructed by the Owner Lessors hereby unconditionally and irrevocably assigns, transfers and conveys to Homer City, and
Homer City hereby accepts and assumes, all of the Collateral Agent's rights, title and interest in, to and under the Assigned Agreements. 

        2.    This
Sub-Assignment Agreement shall remain in effect unless and until all of the Facility Leases are terminated in accordance with their terms. The provisions
of this Sub-Assignment Agreement and the subassignment to Homer City accomplished hereunder of all right, title and interest in the SCR Construction Contract shall not terminate unless and
until the consent of ABB Environmental Systems, division of ABB Flakt, Inc., a corporation duly organized and existing under the laws of Delaware, to the Assignment Agreement and this
Sub-Assignment Agreement shall have been obtained. 

 

        3.    Homer
City shall perform and comply with all terms and provisions of each of the Assigned Agreements to be performed or complied with by it and shall maintain each of the
Assigned Agreements in full force and effect in accordance with their terms and in accordance with the terms of the Assignment Agreement. 

        4.    The
parties hereto expressly agree that (i) subject to the terms of the Participation Agreement, Homer City may enter into amendments, supplements or any other
modifications to any of the Assigned Agreements or enter into any consensual cancellation or termination of any of the Assigned Agreements and (ii) the consent or approval of the Collateral
Agent and the Owner Lessors shall not be required for such amendments, supplements, modifications, cancellations or termination, which shall be binding upon and inure to the benefit of the Collateral
Agent acting on behalf of the Owner Lessors as successor to Homer City if and when this Sub-Assignment Agreement should terminate in accordance with its terms. 

        5.    The
Consenting Parties hereby (i) consent to the sub-assignment of the Assigned Agreements and approve the execution by Homer City of the Assignment
Agreement and this Sub-Assignment Agreement, and acknowledge that no further consents, acknowledgments, or approvals of any kind shall be required for the effectiveness of the assignments
contemplated hereby and (ii) agree that for so long as this Sub-Assignment Agreement shall continue in effect, the Consenting Parties shall make any payments due to Homer City under
the Assigned Agreements directly into the Revenue Account. 

        6.    All
of the terms of this instrument shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 

        7.    This
Sub-Assignment Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to choice of law
principles (except Section 5-1401 of the New York General Obligations Law), including all matters of construction, validity and performance. 

2

 

        IN
WITNESS WHEREOF, the parties have signed this Sub-Assignment Agreement as of the date first above written. 

	EME HOMER CITY GENERATION L.P.	 	 
	

By:	
 	

Mission Energy Westside, Inc.

        as General Partner	
 	

 
	

By:	
 	

/s/ John P. Finneran
	
 	

 
	 	 	Name:	 	John P. Finneran	 	 
	 	 	Title:	 	Vice President	 	 
	

THE BANK OF NEW YORK,

        not in its individual capacity, but solely as

        Collateral Agent for the Owner Lessors	
 	

 
	

By:	
 	

/s/ Christopher J. Grell
	
 	

 
	 	 	Name:	 	Christopher J. Grell	 	 
	 	 	Title:	 	Authorized signer	 	 
	

EDISON MISSION MARKETING & TRADING,

        INC., a California corporation (with respect to the

        Energy Sales Agreement and NOx Agreement

        only)	
 	

 
	

By:	
 	

/s/ David C. Goss
	
 	

 
	 	 	Name:	 	David C. Goss	 	 
	 	 	Title:	 	Vice President	 	 
	

EDISON MISSION ENERGY FUEL

        SERVICES, INC., a California corporation (with

        respect to the Fuel Supply Agreement only)	
 	

 
	

By:	
 	

/s/ Steven D. Eisenberg
	
 	

 
	 	 	Name:	 	Steven D. Eisenberg	 	 
	 	 	Title:	 	Vice President	 	 

3

 
 
 

Exhibit A    
    
    Participation Agreements    
  

        1.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL1 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its
individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        2.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL2 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its
individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        3.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL3 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware
limited liability company, as Lender; The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of
New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company
of New York), both in its individual capacity and solely as Bondholder Trustee. 

        4.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL4 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its
individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        5.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL5 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust 

4

 

Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its individual
capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        6.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL6 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its
individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        7.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL7 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital
Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States Trust Company of
New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and
solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

        8.    The
Participation Agreement dated as of December 7, 2001 by and among EME Homer City Generation, L.P., a Pennsylvania limited partnership, as Facility Lessee;
Homer City OL8 LLC, a Delaware limited liability company, as Owner Lessor; Wells Fargo Bank Northwest, National Association, both in its individual capacity and solely as Owner Manager; General
Electric Capital Corporation, a Delaware corporation, as Owner Participant; Homer City Funding LLC, a Delaware limited liability company, as Lender; The Bank of New York (as successor to United States
Trust Company of New York), both in its individual capacity and solely as Lease Indenture Trustee; The Bank of New York (as successor to United States Trust Company of New York), both in its
individual capacity and solely as Security Agent; and The Bank of New York (as successor to United States Trust Company of New York), both in its individual capacity and solely as Bondholder Trustee. 

5

 
 
 

Exhibit B
  Assigned Agreements    
  

	1.
	Energy
Sales Agreement

	2.
	NOx
Agreement

	3.
	Fuel
Supply Agreement

	4.
	The
Power Sales Agreements

	5.
	The
SCR Construction Contract 

6

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Exhibit 10.31

SUB-ASSIGNMENT AGREEMENT

W I T N E S S E T H

Exhibit A Participation Agreements

Exhibit B Assigned Agreements<Page>

                                                                   Exhibit 10.18

                    SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

         Amendment to Employment Agreement, dated as of February 16, 2002 (the
"Amendment"), by and between Learn2 Corporation (successor to Learn2.com, Inc.)
(the "Company") and Marc E. Landy ("Executive").

         WHEREAS, the Company and Executive entered into an Employment Agreement
dated as of February 16, 1999, as amended by the Amendment to Employment
Agreement dated as of February 16, 2001 (collectively, the "Employment
Agreement"); and

         WHEREAS, the Company and Executive desire to further amend the
Employment Agreement as set forth below.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         Section 2 of the Employment Agreement is hereby amended and restated to
read as follows:

                  The term of this Agreement (the "Term") shall be for a period
                  commencing on the date hereof and continuing through February
                  16, 2003; subject to earlier termination in accordance with
                  the terms and conditions contained in Section 7 hereof.

         Section 3 of the Employment Agreement is hereby amended to read in full
as follows:

                  During the Term, Executive shall perform his services at the
                  principal place of business of the Company which will be
                  located at 111 High Ridge Road, Stamford, Connecticut 06905.
                  Executive shall be furnished with office facilities and
                  services suitable to his position and suitable for the
                  performance of his duties. Executive acknowledges and agrees
                  that in connection with his employment, however, he may be
                  required to travel on behalf of the Company.

                  Section 7.1 of the Employment Agreement is hereby amended to
read in full as follows:

                  Executive shall be entitled to terminate his employment for
                  "Good Reason." For purposes of this Agreement, "Good Reason"
                  shall mean (without Executive's express prior written consent
                  as a shareholder or otherwise) (i) failure by the Company to
                  pay any compensation when due hereunder, (ii) any significant
                  reduction by the Company of Executive's authorities, powers,
                  functions, duties or responsibilities in managing the
                  Company's business or the assignment of duties to Executive by
                  the Chief Executive

<Page>

                  Officer of the Company inconsistent with Executive's position
                  (except in connection with termination of Executive's
                  employment for Cause (as defined in section 7.4), as a result
                  of Disability (as defined in Section 7.2), as a result of
                  Executive's death or by Executive other than for Good Reason),
                  (iii) any material breach by the Company of any other material
                  provision of this Agreement or (iv) any attempt by the Company
                  or any successor changing the place of Executive's employment
                  from within reasonable proximity to Stamford, Connecticut. If
                  Executive desires to terminate his employment with the Company
                  for Good Reason, he shall first give written notice of the
                  facts and circumstances providing Good Reason to the Company,
                  and shall allow the Company no less than twenty (20) days to
                  remedy, cure or rectify the situation giving rise to Good
                  Reason.

                  Section 8.1 of the Employment Agreement is hereby amended to
read in full as follows:

                  (i) If Executive terminates his employment pursuant to Section
                  7.1, or (ii) if Executive's employment is terminated by the
                  Company without Cause, or (iii) if the Company determines not
                  to extend the Term of this Agreement for a one (1) year
                  period, Executive shall be entitled to (A) receive Executive's
                  Base Salary and benefits as set forth in Section 5 to which
                  Executive is entitled up to and including the effective date
                  of Executive's termination of employment hereunder, (B)
                  receive Executive's Base Salary paid consistent with the
                  Company's payroll practices for one (1) year from the
                  effective date of Executive's termination of employment
                  hereunder, (C) with respect to all fully vested options owned
                  by Executive on the effective date of Executive's termination
                  of employment hereunder, the privilege of exercising the
                  unexercised portion of the options upon the later of (x) one
                  (1) year from the effective date of Executive's termination of
                  employment hereunder or (y) thirty (30) days from the
                  expiration of any restriction on the sale, transfer or other
                  disposition of the shares of Common Stock underlying the
                  options entered into by Executive at the request of the
                  Company, and (D) receive an amount equal to the higher of (x)
                  any bonus or incentive compensation Executive earned or
                  received with respect to the prior fiscal year or (y) Forty
                  Thousand Dollars ($40,000). Executive also shall be entitled
                  to receive, during the period he is being paid Base Salary
                  under this Agreement, coverage under the benefit programs,
                  plans and practices of the Company provided under Section 5.1.
                  In the event that Executive is unable to participate in such
                  benefit programs, plans and practices due to his termination
                  of employment with the Company,

                                       2

<Page>

                  the Company shall make cobra payments for his benefit during
                  the period he is being paid Base Salary under this Agreement.
                  This Agreement contains the entire understanding between
                  Executive and the Company and supersedes in all respects any
                  prior or other agreement or understanding between the Company
                  and Executive as to the matters set forth herein.
                  Notwithstanding the foregoing, nothing herein shall cause the
                  Company to maintain Executive's status as an employee of the
                  Company after termination.

                  Except as expressly amended hereby, the Employment Agreement
shall remain in full force and effect.

                  In Witness Whereof, the parties have executed this Amendment
as of the date first written above.

                                                 LEARN2 CORPORATION

                                               By:
                                                  ---------------------------
                                                  Name: Robert H. Ewald
                                                  Title: Chairman of the Board

                                                 EXECUTIVE

                                                 ----------------------------
                                                        Marc E. Landy

                                       3

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