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Exhibit 4.4

EXECUTION COUNTERPART  

 

  

 
 
 COLLATERAL TRUST AGREEMENT  

dated as of April 27, 2004 

among

MIDWEST GENERATION, LLC,  

the Pledgors from time to time party hereto, 

CITICORP NORTH AMERICA, INC.,

as Administrative Agent under the Credit Agreement, 

THE BANK OF NEW YORK,

as Trustee under the Indenture 

and

WILMINGTON TRUST COMPANY,

as Collateral Trustee 

 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	ARTICLE 1.    DEFINITIONS; PRINCIPLES OF CONSTRUCTION	 	1
	 	 	SECTION 1.1	 	Defined Terms	 	1
	 	 	SECTION 1.2	 	Rules of Interpretation	 	13
	

ARTICLE 2.    THE TRUST ESTATES	
 	

14
	 	 	SECTION 2.1	 	Declaration of Senior Trust	 	14
	 	 	SECTION 2.2	 	Declaration of Junior Trust	 	15
	 	 	SECTION 2.3	 	Priority of Liens	 	15
	 	 	SECTION 2.4	 	Special Rights in Insolvency Proceedings	 	17
	 	 	SECTION 2.5	 	Collateral Shared Equally and Ratably within Class	 	18
	

ARTICLE 3.    OBLIGATIONS AND POWERS OF COLLATERAL TRUSTEE	
 	

18
	 	 	SECTION 3.1	 	Undertaking of the Collateral Trustee	 	18
	 	 	SECTION 3.2	 	Release or Subordination of Liens	 	19
	 	 	SECTION 3.3	 	Remedies Upon Actionable Default	 	19
	 	 	SECTION 3.4	 	Application of Proceeds	 	20
	 	 	SECTION 3.5	 	Powers of the Collateral Trustee	 	21
	 	 	SECTION 3.6	 	Documents and Communications	 	21
	 	 	SECTION 3.7	 	For Sole and Exclusive Benefit of Holders of Secured Obligations	 	21
	 	 	SECTION 3.8	 	Additional Secured Debt	 	21
	

ARTICLE 4.    OBLIGATIONS ENFORCEABLE BY THE BORROWER AND THE OTHER OBLIGORS	
 	

22
	 	 	SECTION 4.1	 	Release of Liens	 	22
	 	 	SECTION 4.2	 	Delivery of Copies to Secured Debt Representatives	 	25
	 	 	SECTION 4.3	 	Collateral Trustee not Required to Serve, File or Record	 	25
	

ARTICLE 5.    IMMUNITIES OF THE COLLATERAL TRUSTEE	
 	

25
	 	 	SECTION 5.1	 	No Implied Duty	 	25
	 	 	SECTION 5.2	 	Appointment of Agents and Advisors	 	26
	 	 	SECTION 5.3	 	Co-trustees	 	26
	 	 	SECTION 5.4	 	Other Agreements	 	27
	 	 	SECTION 5.5	 	Solicitation of Instructions	 	27
	 	 	SECTION 5.6	 	Limitation of Liability	 	27
	 	 	SECTION 5.7	 	Documents in Satisfactory Form	 	27
	 	 	SECTION 5.8	 	Entitled to Rely	 	27
	 	 	SECTION 5.9	 	Secured Debt Default	 	28
	 	 	SECTION 5.10	 	Actions by Collateral Trustee	 	28
	 	 	SECTION 5.11	 	Security or Indemnity in favor of the Collateral Trustee	 	28
	 	 	SECTION 5.12	 	Rights of the Collateral Trustee	 	28
	 	 	SECTION 5.13	 	Limitations on Duty of Collateral Trustee in Respect of Collateral	 	28
	 	 	SECTION 5.14	 	Assumption of Rights, Not Assumption of Duties	 	29
	 	 	SECTION 5.15	 	No Liability for Clean Up of Hazardous Materials	 	29
	 	 	 	 	 	 	 

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	ARTICLE 6.    RESIGNATION AND REMOVAL OF THE COLLATERAL TRUSTEE	 	29
	 	 	SECTION 6.1	 	Resignation or Removal of Collateral Trustee	 	29
	 	 	SECTION 6.2	 	Appointment of Successor Collateral Trustee	 	30
	 	 	SECTION 6.3	 	Succession	 	30
	

ARTICLE 7.    MISCELLANEOUS PROVISIONS	
 	

30
	 	 	SECTION 7.1	 	Amendment	 	30
	 	 	SECTION 7.2	 	Voting	 	32
	 	 	SECTION 7.3	 	Further Assurances	 	32
	 	 	SECTION 7.4	 	Perfection of Junior Trust Estate	 	34
	 	 	SECTION 7.5	 	Successors and Assigns	 	34
	 	 	SECTION 7.6	 	Delay and Waiver	 	34
	 	 	SECTION 7.7	 	Notices	 	35
	 	 	SECTION 7.8	 	Entire Agreement	 	36
	 	 	SECTION 7.9	 	Compensation; Expenses	 	36
	 	 	SECTION 7.10	 	Indemnity	 	36
	 	 	SECTION 7.11	 	Severability	 	37
	 	 	SECTION 7.12	 	Headings	 	37
	 	 	SECTION 7.13	 	Obligations Secured	 	37
	 	 	SECTION 7.14	 	Governing Law	 	37
	 	 	SECTION 7.15	 	Consent to Jurisdiction	 	37
	 	 	SECTION 7.16	 	Waiver of Jury Trial	 	38
	 	 	SECTION 7.17	 	Counterparts	 	38
	 	 	SECTION 7.18	 	Effectiveness	 	38
	 	 	SECTION 7.19	 	Additional Obligors	 	38
	 	 	SECTION 7.20	 	Continuing Nature of this Agreement	 	38
	 	 	SECTION 7.21	 	Insolvency	 	39
	 	 	SECTION 7.22	 	Rights and Immunities of Secured Debt Representatives	 	39
	 	 	SECTION 7.23	 	Holdings Intercreditor Agreement	 	39
	 	 	SECTION 7.24	 	Restrictions on Activities of	 	40
	

EXHIBIT A—Form of Collateral Trust Joinder	
 	

 

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        This Collateral Trust Agreement (this "Agreement") is dated as of April 27, 2004 and is by and among MIDWEST GENERATION, LLC, a
limited liability company organized under the laws of Delaware (the "Borrower"), the Pledgors from time to time party hereto, CITICORP NORTH
AMERICA, INC., as Administrative Agent (as defined below), THE BANK OF NEW YORK, as Trustee (as defined below), and WILMINGTON TRUST COMPANY, a banking corporation organized under the laws of
Delaware, as Collateral Trustee (in such capacity and together with its successors in such capacity, the "Collateral Trustee"). 

RECITALS  

        The Borrower intends to enter into a Credit Agreement dated as of the date hereof (as amended, supplemented, amended and restated or otherwise modified and in
effect from time to time, the "Credit Agreement") among the Borrower, the Lenders party thereto, Citicorp North America, Inc., as administrative
agent (in such capacity and together with its successors, the "Administrative Agent"), and the Issuing Lenders party thereto, which will provide for a
$900,000,000 credit facility to be made available in the form of revolving loans, term loans and letters of credit. 

        The
Borrower intends to issue 8.75% Second Priority Senior Secured Notes (including any related exchange notes, the "Notes") in an
aggregate principal amount of $1,000,000,000 pursuant to an Indenture dated as of the date hereof (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time,
the "Indenture") between the Borrower and The Bank of New York, as trustee (in such capacity and together with its successors in such capacity, the
"Trustee"). 

        The
Borrower and the Pledgors intend to secure the Obligations under the Credit Agreement and any future Priority Lien Debt on a priority basis and, subject to such priority, Obligations
under the Indenture and any future Parity Lien Debt, with security interests in all present and future Collateral to the extent that such security interests have been provided for in the applicable
Security Documents. 

        This
Agreement sets forth the terms on which each Secured Party has appointed the Collateral Trustee to act as the trustee for the present and future holders of the Secured Obligations
(as defined below) to receive, hold, maintain, administer and distribute the Collateral at any time delivered to the Collateral Trustee or the subject of the Security Documents, and to enforce the
Security Documents and all interests, rights, powers and remedies of the Collateral Trustee with respect thereto or thereunder and the proceeds thereof. 

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

ARTICLE 1. DEFINITIONS; PRINCIPLES OF CONSTRUCTION  

        SECTION
1.1    Defined Terms.    The following terms will have the following meanings: 

        "Act of Instructing Debtholders" means, as to any matter at any time: 

        (1)   prior
to the Discharge of Priority Lien Obligations, a direction in writing delivered to the Collateral Trustee by or with the written consent of the holders of more
than 50% of the sum of: 

        (a)   the
aggregate outstanding principal amount of Priority Lien Debt (including outstanding letters of credit whether or not then available or drawn); and 

        (b)   other
than in connection with the exercise of remedies, the aggregate unfunded commitments to extend credit which, when funded, would constitute Priority Lien Debt; and 

        (2)   at
any time after the Discharge of Priority Lien Obligations, a direction in writing delivered to the Collateral Trustee by or with the written consent of the Parity
Debt Representatives representing the Required Parity Debtholders. 

 

For
this purpose, Secured Debt registered in the name of, or beneficially owned by, the Borrower or any Affiliate of the Borrower will be deemed not to be outstanding. 

        "Actionable Default" means: 

        (1)   prior
to the Discharge of Priority Lien Obligations, the occurrence of any event of default under any Priority Lien Document, the result of which is that: 

        (a)   the
holders of Priority Lien Debt under such Priority Lien Document have the right to declare all of the Secured Obligations thereunder to be due and payable prior to
the stated maturity thereof; or 

        (b)   such
Secured Obligations automatically become due and payable prior to the stated maturity thereof; and 

        (2)   at
any time after the Discharge of Priority Lien Obligations, the occurrence of any event of default under any Parity Lien Document, the result of which is that: 

        (a)   the
holders of Parity Lien Debt under such Parity Lien Document have the right to declare all of the Secured Obligations thereunder to be due and payable prior to the
stated maturity thereof; or 

        (b)   such
Secured Obligations automatically become due and payable prior to the stated maturity thereof. 

        "Administrative Agent" has the meaning set forth in the recitals. 

        "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, "control," as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided,
that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to be control. For purposes of this definition, the terms "controlling," "controlled by" and "under common
control with" have correlative meanings. 

        "Agreement" has the meaning set forth in the preamble. 

        "Board of Directors" means (a) with respect to a corporation, the board of directors of the corporation, (b) with respect to
a partnership, the general partners or the management committee of the partnership, (c) with respect to a limited liability company, the board of managers of the limited liability company or
(d) with respect to any other Person, the board or committee of such Person serving a similar function. 

        "Borrower" has the meaning set forth in the preamble. 

        "Business Day" means any day that is neither a Saturday or Sunday nor a legal holiday on which the commercial banks are authorized or
required to be closed in New York, New York. 

        "Capital Lease" means, with respect to any Person, a lease of (or other Indebtedness arrangements conveying the right to use) real or
personal property of such Person which is required to be classified and accounted for as a capital lease or a liability set forth on the balance sheet of such Person or such Person's Subsidiaries in
accordance with GAAP. 

        "Capital Stock" means: 

        (a)   in
the case of a corporation, corporate stock; 

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        (b)   in
the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 

        (c)   in
the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 

        (d)   any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person, 

but
excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock. 

        "Capitalized Lease Liabilities" of any Person means all monetary obligations of such Person under any leasing or similar arrangement
which, in accordance with GAAP, would be classified as Capital Leases,
and the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP (excluding, to the extent included, Powerton/Joliet Lease Liabilities). 

        "Cash Equivalents" means: 

        (1)   United
States dollars; 

        (2)   securities
issued or directly and fully guaranteed or insured by the United States government (or any agency or instrumentality thereof), the Canadian government (or any
agency or instrumentality thereof) or the government of a member state of the European Union (or any agency or instrumentality thereof), in each case the payment of which is backed by the full faith
and credit of the United States, Canada or the relevant member state of the European Union, as the case may be, and having maturities of not more than six months from the date of acquisition; 

        (3)   certificates
of deposit and eurodollar time deposits with maturities of not more than one year from the date of acquisition, bankers' acceptances with maturities not
more than one year from the date of acquisition and overnight bank deposits, in each case, with any lender party to the Credit Facilities or any domestic commercial bank having capital and surplus in
excess of $500,000,000 and a Thomson Bank Watch (or successor rating agency) Rating of "B" or better; 

        (4)   repurchase
obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above entered into
with any financial institution meeting the qualifications specified in clause (3) above; 

        (5)   overnight
deposits with entities whose unsecured commercial paper or other unsecured short-term debt obligations have, at the time of such investment, credit
ratings of at least P-1 (or its equivalent) or higher from Moody's and A-1 (or its equivalent) or higher from S&P; 

        (6)   investments
in money market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clause (1) through (5) of this
definition; and 

        (7)   other
investments in securities or bank instruments rated at least "A" by S&P and "A2" by Moody's or "A-1" by S&P and "P-1" by Moody's and with
maturities of not more than one year from the date of acquisition. 

        "Class" means (1) in the case of Parity Lien Debt, every Series of Parity Lien Debt, taken together, and (2) in the case of
Priority Lien Debt, every Series of Priority Lien Debt, taken together. 

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        "Collateral" means, in the case of each Series of Secured Debt, all properties and assets of the Borrower and the Pledgors now owned or
hereafter acquired, in which Liens have been granted to the Collateral Trustee under any of the Security Documents to secure the Secured Obligations in respect of such Series of Secured Debt. 

        "Collateral Trustee" has the meaning set forth in the preamble. 

        "Collateral Trust Joinder" means an agreement substantially in the form of  Exhibit A. 

        "Collins Facility" means the fossil fuel-fired electric generating facility known as the Collins station, consisting of two
554 megawatt (net) units and three 530 megawatt (net) units, located in Grundy County, Illinois. 

        "Contingent Liability" means any agreement, undertaking or arrangement by which any Person Guarantees, endorses or otherwise becomes or is
contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, obligation or any other liability of any other Person (other than by endorsements of instruments in the course of collection), or Guarantees the payment of
dividends or other distributions upon the shares of any other Person. The amount of any Person's obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed
for purposes of this Agreement to be the outstanding principal amount of the debt, obligation or other liability Guaranteed thereby; provided, however, that if the maximum amount of the debt,
obligation or other liability Guaranteed thereby has not been established, the amount of such Contingent Liability shall be the maximum reasonably anticipated amount of the debt, obligation or other
liability; provided, further, however, that any agreement to limit the maximum amount of such Person's obligation under such Contingent Liability shall not, of and by itself, be deemed to establish
the maximum reasonably anticipated amount of such debt, obligation or other liability. 

        "Credit Agreement" has the meaning set forth in the recitals. 

        "Credit Agreement Documents" means the Credit Agreement, each Priority Debt Sharing Confirmation and the Security Documents (other than
any Security Documents, if any, solely for the benefit of the holders of Parity Lien Obligations). 

        "Credit Facilities" means one or more debt facilities or commercial paper facilities, in each case with banks or other institutional
lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such
lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced (including by means of sales of debt securities to
institutional investors) in whole or in part from time to time. 

        "Discharge of Priority Lien Obligations" means the occurrence of all of the following: 

        (1)   termination
of all commitments to extend credit that would constitute Priority Lien Debt; 

        (2)   payment
in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (other than any undrawn letters of credit); 

        (3)   discharge
or cash collateralization (at the lower of (A) 105% of the aggregate undrawn amount and (B) the percentage of the aggregate undrawn amount
required for release of liens under the terms of the applicable Priority Lien Document) of all outstanding letters of credit constituting Priority Lien Debt; and 

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        (4)   payment
in full in cash of all other Priority Lien Obligations that are outstanding and unpaid at the time the Priority Lien Debt is paid in full in cash (other than any
obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities in respect of which no claim or demand for payment has been made at such time). 

        "EMMH" means Edison Mission Midwest Holdings Co., a Delaware corporation. 

        "EMMT" means Edison Mission Marketing & Trading, Inc., a California corporation. 

        "equally and ratably" means, in reference to sharing of Liens or proceeds thereof as between Secured Parties of the same Class, that such
Liens or proceeds: 

        (1)   will
be allocated and distributed first to the Secured Debt Representative for each outstanding Series of Secured Debt within that Class, for the account of the holders
of such Series of Secured Debt, ratably in proportion to the principal of, and interest and premium (if any) and reimbursement obligations (contingent or otherwise) with respect to letters of credit,
if any, outstanding (whether or not drawings have been made under such letters of credit) on each outstanding Series of Secured Debt within that Class when the allocation or distribution is made, and
thereafter 

        (2)   will
be allocated and distributed (if any remain after payment in full of all of the principal of, and interest and premium (if any) and reimbursement obligations
(contingent or otherwise) with respect to letters of credit, if any, outstanding (whether or not drawings have been made on such letters of credit) on, all outstanding Secured Obligations within that
Class) to the Secured Debt Representative for each outstanding Series of Secured Obligations within that Class, for the account of the holders of any remaining Secured Obligations within that Class,
ratably in proportion to the aggregate unpaid amount of such remaining Secured Obligations within that Class due and demanded (with written notice to the applicable Secured Debt Representative and the
Collateral Trustee) prior to the date such distribution is made. 

        "Fair Market Value" means the value that would be paid by a willing buyer to a willing seller in a transaction not involving distress or
necessity of either party, (1) determined in good faith by an officer of Midwest and evidenced by an Officers' Certificate delivered to the Trustee, if such value is less than or equal to
$10,000,000, or (2) determined in good faith by the Board of Directors of Midwest and evidenced by a resolution delivered to the Trustee, if such value is greater than $10,000,000. 

        "GAAP" means generally accepted accounting principles set forth in the statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the applicable date of determination. 

        "Guarantee" means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business,
direct or indirect, in any manner including, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether
arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement
conditions or otherwise). 

        "Indebtedness" of any Person means, without duplication: 

        (a)   all
indebtedness for borrowed money; 

        (b)   all
obligations issued, undertaken or assumed as the deferred purchase price of property or services which purchase price is due more than six months from the date of 

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incurrence
of the obligation in respect thereof or is evidenced by a note or other instrument, except trade accounts arising in the ordinary course of business; 

        (c)   all
reimbursement obligations with respect to surety bonds, letters of credit (to the extent not collateralized with cash or Cash Equivalents), bankers' acceptances and
similar instruments (in each case, whether or not matured); 

        (d)   all
obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses; 

        (e)   all
indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to property
acquired by the Person (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property); 

        (f)    all
Capitalized Lease Liabilities and Operating Lease Liabilities; 

        (g)   all
net obligations with respect to interest cap arrangements, interest rate swaps agreements, sales of foreign exchange options and other hedging agreements or
arrangements; 

        (h)   all
indebtedness referred to in clauses (a) through (g) above secured by (or for which the holder of such indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property (including accounts and contracts rights) owned by such Person, even though such Person has not assumed or become liable for the payment of
such indebtedness; and 

        (i)    all
Contingent Liabilities. 

        For
all purposes of this Agreement, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which such Person is a general partner or a joint
venturer. The amount of any Indebtedness outstanding as of any date will be (i) the accreted value of such Indebtedness, in the case of any Indebtedness issued with original issue discount,
(ii) the principal amount of such Indebtedness, in the case of any other Indebtedness and (iii) in respect of Indebtedness of another Person secured by a Lien on the assets of such
Person, the lesser of (A) the Fair Market Value of such asset at the date of determination and (B) the amount of Indebtedness of such other Person. 

        Notwithstanding
anything to the contrary in this definition of Indebtedness, with respect to any Contingent Liabilities (other than with respect to contractual obligations to repurchase
goods sold or distributed, which shall be included to the extent reflected on the balance sheet of such Person in accordance with GAAP) of a Person, the maximum liability of such Indebtedness shall be
as determined by such Person's Board of Directors, in good faith, as, in light of the facts and circumstances existing at the time, reasonably likely to be incurred upon the occurrence of the
contingency giving rise to such obligation. 

        "Indemnified Liabilities" means any and all liabilities (including all environmental liabilities), obligations, losses, damages,
penalties, actions, judgments, suits, costs, taxes, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, performance, administration or enforcement of
this Agreement or any of the other Security Documents, including any of the foregoing relating to the use of proceeds of any Secured Debt or the violation of, noncompliance with or liability under,
any law (including environmental laws) applicable to or enforceable against the Borrower or any of its Subsidiaries or any of the Collateral and all reasonable costs and expenses (including reasonable
fees and expenses of legal counsel selected by the Indemnitee) incurred by any Indemnitee in connection with any claim, action, investigation or proceeding in any respect relating to any of the
foregoing, whether or not suit is brought. 

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        "Indemnitee" has the meaning set forth in Section 7.10(a). 

        "Indenture" has the meaning set forth in the recitals. 

        "Insolvency Proceeding" means: 

        (1)   any
proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of the Borrower or any other Obligor, any receivership
or assignment for the benefit of creditors relating to the Borrower or any other Obligor or any similar case or proceeding relative to the Borrower or any other Obligor including any case under Title
11 of the United States Code or any comparable foreign law equivalent, or any successor bankruptcy law, in each case whether or not voluntary; 

        (2)   any
liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to the Borrower or any other Obligor, in each case whether or not
voluntary and whether or not involving bankruptcy or insolvency; or 

        (3)   any
other proceeding of any type or nature in which substantially all claims of creditors of the Borrower or any other Obligor are determined and any payment or
distribution is or may be made on account of such claims. 

        "Joliet Lease Participation Agreement (T1)" means the Participation Agreement (T1) dated as of August 17, 2000 by and among the
Borrower, Edison Mission Energy, Nesbitt Asset Recovery, Series J-1 (formerly named "Joliet Trust I"), Wilmington Trust Company, Nesbitt Asset Recovery LLC,
Series J-1 (assignee of Joliet Generation I), the Lease Indenture Trustee named therein and the Pass Through Trustees named therein. 

        "Joliet Lease Participation Agreement (T2)" means the Participation Agreement (T2) dated as of August 17, 2000 by and among the
Borrower, Edison Mission Energy, Joliet Trust II, Wilmington Trust Company, Joliet Generation II, the Lease Indenture Trustee named therein and the Pass Through Trustees named therein. 

        "Joliet Leased Facility" means the Joliet station, Units 7 and 8, 1,044 megawatts of the 1,358 megawatt coal-fired electric
generating facility and certain related assets located in Will County, Illinois. 

        "Junior Trust Estate" has the meaning set forth in Section 2.2. 

        "Lien" means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or
otherwise), charge against or interest in property, in each case of any kind, to secure payment of a debt or performance of an obligation. 

        "MGE" means Midwest Generation EME LLC, a Delaware limited liability company. 

        "Moody's" means Moody's Investors Service, a division of Dun & Bradstreet Corporation, and its successors and assigns. 

        "Note Documents" means the Indenture, the Notes, each Parity Debt Sharing Confirmation and the Security Documents. 

        "Notes" has the meaning set forth in the recitals. 

        "Notice of Actionable Default" means a written notice given to the Collateral Trustee stating that an Actionable Default has occurred and
is continuing, delivered by: 

        (1)   prior
to the Discharge of Priority Lien Obligations, the Secured Debt Representative for the holders of Priority Lien Obligations that are governed by the Secured Debt
Document pursuant to which the Actionable Default has occurred; and 

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        (2)   following
the Discharge of Priority Lien Obligations, the Secured Debt Representative for the holders of Parity Lien Obligations that are governed by the Secured Debt
Document pursuant to which the Actionable Default has occurred. 

        "Obligations" means with respect to any Indebtedness of any Person (collectively, without duplication): 

        (1)   all
debt, financial liabilities and obligations of such Person of whatsoever nature and howsoever evidenced (including principal, interest, fees, reimbursement
obligations, cash cover obligations, penalties, indemnities and legal and other expenses, whether due after acceleration or otherwise) to the providers or holders of such Indebtedness or to any agent,
trustee or other representative of such providers or holders of such Indebtedness under or pursuant to each agreement, document or instrument evidencing, securing, guaranteeing or relating to such
Indebtedness, financial liabilities or obligations relating to such Indebtedness (including Secured Debt Documents applicable to such Indebtedness (if any)), in each case, direct or indirect, primary
or secondary, fixed or contingent, now or hereafter arising out of or relating to any such agreement, document or instrument; 

        (2)   any
and all sums advanced by the Collateral Trustee or any other Person in order to preserve the Collateral or any other collateral securing such Indebtedness or to
preserve the Liens and security interests in the Collateral or any other collateral, securing such Indebtedness; and 

        (3)   the
costs and expenses of collection and enforcement of the obligations referred to in clauses (1) and (2), including: 

        (a)   the
costs and expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing of or realizing on any Collateral or any other collateral; 

        (b)   the
costs and expenses of any exercise by the Collateral Trustee or any other Person of its rights under the Security Documents or any other security documents; and 

        (c)   reasonable
attorneys' fees and court costs. 

        "Obligor" means the Borrower, the Pledgors and each Person (if any) that at any time provides collateral security for any Secured
Obligations. 

        "Officers' Certificate" means a certificate with respect to compliance with a condition or covenant provided for in this Agreement, signed
on behalf of the Borrower by two officers of the Borrower, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of
the Borrower, including: 

        (a)   a
statement that the Person making such certificate has read such covenant or condition; 

        (b)   a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate are based; 

        (c)   a
statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion
as to whether or not such covenant or condition has been satisfied; and 

        (d)   a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied. 

        "Operating Lease" means any lease other than a Capital Lease. 

8

 

        "Operating Lease Liability" of any Person means all monetary obligations of such Person under any Operating Lease, and the amount of such
obligations shall be the termination value of such Operating Lease. 

        "Parity Debt Representative" means: 

        (1)   in
the case of the Notes, the Trustee; or 

        (2)   in
the case of any other Series of Parity Lien Debt, the trustee, agent or representative of the holders of such Series of Parity Lien Debt who maintains the transfer
register for such Series of Parity Lien Debt and is appointed as a Parity Debt Representative (for purposes related to the administration of the security documents) pursuant to the credit agreement,
indenture or other agreement governing such Series of Parity Lien Debt, and who has executed a Collateral Trust Joinder. 

        "Parity Debt Sharing Confirmation" means, as to any Series of Parity Lien Debt, the written agreement of the holders of that Series of
Parity Lien Debt, as set forth in the indenture or other agreement
governing that Series of Parity Lien Debt, for the enforceable benefit of all holders of each other existing and future Series of Parity Lien Debt and each existing and future Parity Debt
Representative, that all Parity Lien Obligations will be and are secured equally and ratably by all Liens at any time granted by the Borrower or any other Obligor to secure any Obligations in respect
of such Series of Parity Lien Debt, whether or not upon property otherwise constituting Collateral, that all such Liens will be enforceable by the Collateral Trustee for the benefit of all holders of
Parity Lien Obligations equally and ratably, and that the holders of Obligations in respect of such Series of Parity Lien Debt are bound by the provisions in this Agreement relating to the order of
application of proceeds from enforcement of such Liens, and consent to and direct the Collateral Trustee to perform its obligations under this Agreement. 

        "Parity Lien" means a Lien granted by a Security Document to the Collateral Trustee upon any property of the Borrower or any other Obligor
to secure Parity Lien Obligations. 

        "Parity Lien Debt" means: 

        (1)   the
Notes issued on the date hereof (including any related exchange notes); and 

        (2)   any
other Indebtedness (including additional notes) that is secured equally and ratably with the Notes by a Parity Lien that was permitted to be incurred and so secured
under each applicable Secured Debt Document; provided, in the case of any Indebtedness referred to in this clause (2), that: 

        (a)   on
or before the date on which such Indebtedness is incurred by the Borrower such Indebtedness is designated by the Borrower, in an Officers' Certificate delivered to
each Parity Debt Representative and the Collateral Trustee, as "Parity Lien Debt" for the purposes of the Secured Debt Documents; provided that no
Obligation or Indebtedness may be designated as both Parity Lien Debt and Priority Lien Debt; 

        (b)   such
Indebtedness is governed by an indenture or other agreement that includes a Parity Debt Sharing Confirmation; and 

        (c)   all
requirements set forth in this Agreement as to the confirmation, grant or perfection of the Collateral Trustee's Lien to secure such Indebtedness or Obligations in
respect thereof are satisfied (and the satisfaction of such requirements and the other provisions of this clause (c) will be conclusively established if the Borrower delivers to the Collateral
Trustee an Officers' Certificate stating that such requirements and other provisions have been satisfied and that such Indebtedness is "Parity Lien Debt"). 

9

 

        "Parity Lien Documents" means, collectively, the Note Documents and the indenture or agreement governing each other Series of Parity Lien
Debt and the Security Documents (other than any Security Documents solely for the benefit of the holders of the Priority Lien Obligations). 

        "Parity Lien Obligations" means Parity Lien Debt and all other Obligations in respect thereof. 

        "Parity Lien Secured Parties" means the holders of Parity Lien Obligations and any Parity Debt Representatives. 

        "Permitted Prior Liens" means: 

        (1)   liens
that are permitted to rank senior in priority to both Priority Lien Debt and Parity Lien Debt in accordance with the Secured Debt Documents; and 

        (2)   liens
that arise by operation of law and are not voluntarily granted, to the extent entitled by law to priority over the security interests created by the Secured Debt
Documents. 

        "Person" means any natural person, corporation, partnership, limited liability company, firm, association, trust, government, governmental
agency or any other entity, whether acting in an individual, fiduciary or other capacity. 

        "Pledgor" means each of EMMH, EMMT and MGE. 

        "Powerton Facility" means the Powerton station, 1,538 megawatt coal-fired electric generating facility and certain related
assets located in Tazewell County, Illinois. 

        "Powerton Lease Participation Agreement (T1)" means the Participation Agreement (T1) dated as of August 17, 2000 by and among the
Borrower, Edison Mission Energy, Nesbitt Asset Recovery, Series P-1 (formerly named "Powerton Trust I"), Wilmington Trust Company, Nesbitt Asset Recovery LLC,
Series P-1 (assignee of Powerton Generation I), the Lease Indenture Trustee named therein and the Pass Through Trustees named therein. 

        "Powerton Lease Participation Agreement (T2)" means the Participation Agreement (T2) dated as of August 17, 2000 by and among the
Borrower, Edison Mission Energy, Powerton Trust II, Wilmington Trust Company, Powerton Generation II, the Lease Indenture Trustee named therein and the Pass Through Trustees named therein. 

        "Powerton/Joliet Lease Documents" means the Operative Documents as defined in the Powerton/Joliet Participation Agreement. 

        "Powerton/Joliet Lease Liabilities" means obligations of the Borrower under the Powerton/Joliet Lease Documents. 

        "Powerton/Joliet Participation Agreement" means, collectively (a) the Powerton Lease Participation Agreement (T1), (b) the
Powerton Lease Participation Agreement (T2), (c) the Joliet Lease Participation Agreement (T1), and (d) the Joliet Lease Participation Agreement (T2), in each case, as amended,
supplemented, amended and restated or otherwise modified and in effect from time to time. 

        "Priority Debt Representative" means: 

        (a)   in
the case of the Credit Agreement, the Administrative Agent; or 

        (b)   in
the case of any other Series of Priority Lien Debt, the trustee, agent or representative of the holders of such Series of Priority Lien Debt who maintains the
transfer register for such Series of Priority Lien Debt and is appointed as a Priority Debt Representative (for purposes related to the administration of the security documents) pursuant to the credit
agreement, indenture or other agreement governing such Series of Priority Lien Debt, and who has executed a Collateral Trust Joinder. 

10

 

        "Priority Debt Sharing Confirmation" means, as to any Series of Priority Lien Debt, the written agreement of the holders of such Series of
Priority Lien Debt, as set forth in the credit agreement, indenture or other agreement governing such Series of Priority Lien Debt, for the enforceable benefit of all holders of each other existing
and future Series of Priority Lien Debt and each existing and future Priority Debt Representative, that all Priority Lien Obligations will be and are secured equally and ratably by all Liens at any
time granted by the Borrower or any other Obligor to secure any Obligations in respect of such Series of Priority Lien Debt, whether or not upon property otherwise constituting Collateral, that all
such Liens will be enforceable by the Collateral Trustee for the benefit of all holders of Priority Lien Obligations equally and ratably, and that the holders of Obligations in respect of such Series
of Priority Lien Debt are bound by the provisions in this Agreement relating to the order of application of proceeds from enforcement of such Liens, and consent to and direct the Collateral Trustee to
perform its obligations under this Agreement. 

        "Priority Lien" means a Lien granted by a Security Document to the Collateral Trustee, for the benefit of the Priority Lien Secured
Parties, upon any property of the Borrower or any other Obligor to secure Priority Lien Obligations. 

        "Priority Lien Debt" means: 

        (1)   Indebtedness
under the Credit Agreement that was permitted to be incurred and so secured under each applicable Secured Debt Document (or as to which the Lenders obtained
an Officers' Certificate at the time of incurrence to the effect that such Indebtedness was permitted to be incurred and secured by all applicable Secured Debt Documents); and 

        (2)   Indebtedness
under any other Credit Facility that is secured equally and ratably with the Credit Agreement by a Priority Lien that was permitted to be incurred and so
secured under each applicable Secured Debt Document; provided, in the case of any Indebtedness referred to in this clause (2), that: 

        (a)   on
or before the date on which such Indebtedness is incurred by the Borrower such Indebtedness is designated by the Borrower, in an Officers' Certificate delivered to
each Priority Debt Representative
and the Collateral Trustee, as "Priority Lien Debt" for the purposes of the Secured Debt Documents; provided that no Obligation or Indebtedness may be
designated as both Parity Lien Debt and Priority Lien Debt; 

        (b)   such
Indebtedness is governed by a credit agreement, an indenture or other agreement that includes a Priority Debt Sharing Confirmation; and 

        (c)   all
requirements set forth in this Agreement as to the confirmation, grant or perfection of the Collateral Trustee's Lien to secure such Indebtedness or Obligations in
respect thereof are satisfied (and the satisfaction of such requirements and the other provisions of this clause (c) will be conclusively established if the Borrower delivers to the Collateral
Trustee an Officers' Certificate stating that such requirements and other provisions have been satisfied and that such Indebtedness is "Priority Lien Debt"). 

        "Priority Lien Documents" means, collectively, the Credit Agreement Documents and the credit agreement, indenture or other agreement
governing any other Credit Facility pursuant to which Priority Lien Debt is incurred and all other agreements governing, securing or related to any Priority Lien Obligations. 

        "Priority Lien Obligations" means the Priority Lien Debt and all other Obligations in respect thereof. 

        "Priority Lien Secured Parties" means the holders of Priority Lien Obligations and any Priority Debt Representatives. 

11

 

        "Required Parity Debtholders" means, at any time in respect of any action or matter, holders of a majority in aggregate outstanding
principal amount of all Parity Lien Debt then outstanding, voting together as a single class. For this purpose, Parity Lien Debt registered in the name of, or beneficially owned by, the Borrower or
any Affiliate of the Borrower will be deemed not to be outstanding and neither the Borrower nor any such Affiliate will be entitled to vote to direct the relevant Parity Debt Representative. 

        "Responsible Officer" means, with respect to the Collateral Trustee or any Secured Debt Representative, any officer within the corporate
trust department of the Collateral Trustee or such Secured Debt Representative, as the case may be, including any managing director, director, vice president, assistant vice president, associate,
trust officer or any other officer of the Collateral Trustee or such Secured
Debt Representative, as the case may be, who customarily performs functions similar to those performed by the Persons who at the time will be such officers, respectively, or to whom any corporate
trust matter is referred because of such Person's knowledge of and familiarity with the particular subject and who will have direct responsibility for the administration of this Agreement. 

        "Secured Debt" means Parity Lien Debt and Priority Lien Debt. 

        "Secured Debt Default" means any event or condition which, under the terms of any credit agreement, indenture or other agreement governing
any Series of Secured Debt causes, or permits holders of Secured Debt outstanding thereunder (with or without the giving of notice or lapse of time, or both, and whether or not notice has been given
or time has lapsed) to cause, the Secured Debt outstanding thereunder to become immediately due and payable. 

        "Secured Debt Documents" means the Parity Lien Documents and the Priority Lien Documents. 

        "Secured Debt Representative" means each Parity Debt Representative and each Priority Debt Representative. 

        "Secured Debtholder" means, at any time, a Person that is at that time the holder of any Secured Debt or has any commitment with respect
to any Secured Debt or the issuance of any letters of credit under any Secured Debt Document or the making of any loans under any Secured Debt Document. 

        "Secured Obligations" means the Parity Lien Obligations and the Priority Lien Obligations. 

        "Secured Parties" means the Parity Lien Secured Parties and the Priority Lien Secured Parties. 

        "Security Documents" means this Agreement and one or more security agreements, pledge agreements, collateral assignments, mortgages,
collateral agency agreements, control agreements, deeds of trust or other grants or transfers for security executed and delivered by the Borrower, each other Obligor and each Pledgor creating (or
purporting to create) a Lien upon Collateral in favor of the Collateral Trustee, for the benefit of the Secured Parties, in each case, as amended, supplemented, amended and restated or otherwise
modified and in effect from time to time, in accordance with its terms. 

        "Senior Trust Estate" has the meaning set forth in Section 2.1. 

        "Series of Parity Lien Debt" means, severally, the Notes and each other issue or series of Parity Lien Debt for which a single transfer
register is maintained. 

        "Series of Priority Lien Debt" means indebtedness under the Credit Agreement and each other issue or series of Priority Lien Debt for
which a single transfer register is maintained. 

12

 

        "Series of Secured Debt" means, severally, each Series of Priority Lien Debt and each Series of Parity Lien Debt. 

        "S&P" means Standard & Poor's Ratings Services and its successors and assigns. 

        "Subsidiary" means, with respect to any specified Person: 

        (1)   any
corporation, association or other business entity of which more than 50% of the total voting power of shares of capital stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement or stockholders' agreement that effectively transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or
a combination thereof); and 

        (2)   any
partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

        "Trustee" has the meaning set forth in the recitals. 

        "Trust Estates" has the meaning set forth in Section 2.2. 

        "UCC" means the Uniform Commercial Code as in effect in the State of New York or any other applicable jurisdiction. 

        "Voting Stock" of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of
the Board of Directors of such Person. 

        SECTION
1.2    Rules of Interpretation.    

        (a)   All
terms used in this Agreement that are defined in Article 9 of the UCC, and not otherwise defined herein have the meanings therein set forth. 

        (b)   Unless
otherwise indicated, any reference to any agreement or instrument will be deemed to include a reference to that agreement or instrument as assigned, amended,
supplemented, amended and restated, or otherwise modified and in effect from time to time or replaced in accordance with the terms of this Agreement. 

        (c)   The
use in this Agreement or any of the other Security Documents of the word "include" or "including," when following any general statement, term or matter, will not be
construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such
as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto, but will be deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter. The word "will" shall be construed to have the same meaning and effect as the word "shall." 

        (d)   References
to "Sections," "clauses," "recitals" and the "preamble" will be to Sections, clauses, recitals and the preamble, respectively, of this Agreement unless
otherwise specifically provided. 

        (e)   References
to "Articles" will be to Articles of this Agreement unless otherwise specifically provided. 

        (f)    References
to "Exhibits" and "Schedules" will be to Exhibits and Schedules, respectively, to this Agreement unless otherwise specifically provided. 

        (g)   This
Agreement, the other Security Documents and any documents or instruments delivered pursuant hereto will be construed without regard to the identity of the party who
drafted it. Each and 

13

 

every
provision of this Agreement, the other Security Documents and any instruments and documents entered into and delivered in connection therewith will be construed as though the parties
participated equally in the drafting it. Consequently, each of the parties acknowledges and agrees that any rule of construction that a document is to be construed against the drafting party will not
be applicable either to this Agreement or the other Security Documents and any instruments and documents entered into and delivered in connection with this Agreement or any of the other Security
Documents. 

ARTICLE 2. THE TRUST ESTATES  

        SECTION
2.1    Declaration of Senior Trust.    

        To
secure the payment of the Priority Lien Obligations and in consideration of the mutual agreements set forth in this Agreement, each of the Obligors hereby grants to the Collateral
Trustee, and the Collateral Trustee hereby accepts and agrees to hold, in trust under this Agreement for the benefit of all present and future holders of Priority Lien Obligations, all of such
Obligor's right, title and interest in, to and under all Collateral granted to the Collateral Trustee under any Security Document for the benefit of the Priority Lien Secured Parties, together with
all of the Collateral Trustee's right, title and interest in, to and under the Security Documents, and all interests, rights, powers and remedies of the Collateral Trustee thereunder or in respect
thereof and all cash and non-cash proceeds thereof (collectively, the "Senior Trust Estate"). 

        The
Collateral Trustee and its successors and assigns under this Agreement will hold the Senior Trust Estate in trust for the benefit solely and exclusively of all present and future
holders of Priority Lien Obligations as security for the payment of all present and future Priority Lien Obligations. 

        Notwithstanding
the foregoing, if at any time: 

        (1)   all
Liens securing the Priority Lien Obligations have been released as provided in Section 4.1; 

        (2)   the
Collateral Trustee holds no other property in trust as part of the Senior Trust Estate; 

        (3)   no
monetary obligation (other than indemnification and other contingent obligations not then due and payable and letters of credit that have been cash collateralized as
provided in clause (3) of the definition of "Discharge of Priority Lien Obligations") is outstanding and payable under this Agreement to the Collateral Trustee or any of its
co-trustees, agents or sub-agents (whether in an individual or representative capacity); and 

        (4)   the
Borrower delivers to the Collateral Trustee an Officers' Certificate stating that all Liens of the Collateral Trustee have been released in compliance with all
applicable provisions of the Priority Lien Documents and that the Obligors are not required by any Priority Lien Document to grant any Lien upon any property to secure the Priority Lien Obligations, 

then
the senior trust arising hereunder will terminate, except that, notwithstanding such termination, all provisions set forth in Sections 7.9 and 7.10 enforceable by the Collateral Trustee or any of
its co-trustees, agents or sub-agents (whether in an individual or representative capacity) will remain enforceable in accordance with their terms. 

        The
parties further declare and covenant that the Senior Trust Estate will be held and distributed by the Collateral Trustee subject to the further agreements herein. 

14

   
        SECTION 2.2    Declaration of Junior Trust.    

        To
secure the payment of the Parity Lien Obligations and in consideration of the premises and the mutual agreements set forth herein, each of the Obligors hereby grants to the Collateral
Trustee, and the Collateral Trustee hereby accepts and agrees to hold, in trust under this Agreement for the benefit of all present and future holders of Parity Lien Obligations, all of such Obligor's
right, title and interest in, to and under all Collateral granted to the Collateral Trustee under any Security Document for the benefit of the Parity Lien Secured Parties, together with all of the
Collateral Trustee's right, title and interest in, to and under the Security Documents, and all interests, rights, powers and remedies of the Collateral Trustee thereunder or in respect thereof and
all cash and non-cash proceeds thereof (collectively, the "Junior Trust Estate," and together with the Senior Trust Estate, the
"Trust Estates"). 

        The
Collateral Trustee and its successors and assigns under this Agreement will hold the Junior Trust Estate in trust for the benefit solely and exclusively of all present and future
holders of Parity Lien Obligations as security for the payment of all present and future Priority Lien Obligations. 

        Notwithstanding
the foregoing, if at any time: 

        (1)   all
Liens securing the Parity Lien Obligations have been released as provided in Section 4.1; 

        (2)   the
Collateral Trustee holds no other property in trust as part of the Junior Trust Estate; 

        (3)   no
monetary obligation (other than indemnification and other contingent obligations not then due and payable and letters of credit that have been cash collateralized as
provided in clause (3) of the definition of "Discharge of Priority Lien Obligations") is outstanding and payable under this Agreement to the Collateral Trustee or any of its
co-trustees, agents or sub-agents (whether in an individual or representative capacity); and 

        (4)   the
Borrower delivers to the Collateral Trustee an Officers' Certificate stating that all Liens of the Collateral Trustee have been released in compliance with all
applicable provisions of the Parity Lien
Documents and that the Obligors are not required by any Parity Lien Document to grant any Lien upon any property to secure the Parity Lien Obligations, 

then
the junior trust arising hereunder will terminate, except that, notwithstanding such termination, all provisions set forth in Sections 7.9 and 7.10 enforceable by the Collateral Trustee or any of
its co-trustees, agents or sub-agents (whether in an individual or representative capacity) will remain enforceable in accordance with their terms. 

        The
parties further declare and covenant that the Junior Trust Estate will be held and distributed by the Collateral Trustee subject to the further agreements herein. 

        SECTION
2.3    Priority of Liens.    

        (a)   Notwithstanding
anything else contained herein or in any other Security Document, it is the intent of the parties that: 

        (1)   this
Agreement and the other Security Documents create two separate and distinct Trust Estates and Liens: the Senior Trust Estate and Lien securing the payment and
performance of the Priority Lien Obligations and the Junior Trust Estate and Lien securing the payment and performance of the Parity Lien Obligations; and 

        (2)   the
Liens securing the Parity Lien Obligations are subject and subordinate to the Liens securing the Priority Lien Obligations. 

        (b)   The
parties hereto agree that, after the date hereof and prior to the Discharge of Priority Lien Obligations, in no event will the Parity Debt Representatives or any
Parity Lien Secured Parties 

15

 

have
a Lien on or security interest in any Collateral that is not subject and subordinate to the senior lien of the Priority Lien Secured Parties. 

        (c)   Whether
or not any Insolvency Proceeding has been commenced by or against any Obligor, until the Discharge of Priority Lien Obligations: 

        (1)   the
Parity Lien Secured Parties will not: 

        (A)  request
judicial relief, in an Insolvency Proceeding or in any other court, that would hinder, delay, limit or prohibit the lawful exercise or enforcement of any right
or remedy otherwise available to the holders of Priority Lien Obligations in respect of the Priority Liens or that would limit, invalidate, avoid or set aside any Priority Lien or subordinate the
Priority Liens to the Parity Liens or grant the Parity Liens equal ranking to the Priority Liens; 

        (B)  oppose
or otherwise contest any motion for relief from the automatic stay or for any injunction against foreclosure or enforcement of Priority Liens made by any holder
of Priority Lien Obligations in any Insolvency Proceedings; 

        (C)  oppose
or otherwise contest any lawful exercise by any holder of Priority Lien Obligations of the right to credit bid Priority Lien Debt at any sale in foreclosure of
Priority Liens; or 

        (D)  oppose
or otherwise contest any other request for judicial relief made in any court by any holder of Priority Lien Obligations relating to the lawful enforcement of any
Priority Lien; 

provided, however, that notwithstanding the foregoing, both before and during an Insolvency Proceeding, the Parity Lien Secured Parties may take any
actions and exercise any and all rights that would otherwise be available to a holder of unsecured claims, including, without limitation, the commencement of Insolvency Proceedings against any
Obligors in accordance with applicable law; except, that the Parity Lien Secured Parties may not challenge the validity, enforceability, perfection or
priority of the Priority Liens; and 

        (2)   the
Priority Lien Secured Parties will have the exclusive right to enforce rights and exercise remedies with respect to any Collateral that is part of the Senior Trust
Estate, regardless of whether such Collateral may also be part of the Junior Trust Estate. Notwithstanding the foregoing, the Parity Lien Secured Parties may enforce rights, exercise remedies and take
actions: 

        (A)  without
any condition or restriction whatsoever, at any time after the Discharge of Priority Lien Obligations; 

        (B)  as
necessary to redeem any Collateral in a creditor's redemption permitted by law or to deliver any notice or demand necessary to enforce (subject to the prior Discharge
of Priority Lien Obligations) any right to claim, take or receive proceeds of Collateral remaining after the Discharge of Priority Lien Obligations in the event of foreclosure or other enforcement of
any prior Lien; 

        (C)  as
necessary to perfect or establish the priority (subject to Priority Liens) of the Parity Liens upon any Collateral, except through possession or control; or 

        (D)  as
necessary to create, prove, preserve or protect (but not enforce) the Parity Liens upon any Collateral. 

        (d)   In
exercising rights and remedies with respect to the Collateral, the Priority Debt Representatives may enforce (or refrain from enforcing) the provisions of the
Priority Lien Documents and exercise (or refrain from exercising) remedies thereunder or any such rights and 

16

 

remedies,
all in such order and in such manner as they may determine in the exercise of their sole and exclusive discretion, including: 

        (1)   the
exercise or forebearance from exercise of all rights and remedies in respect of the Collateral and/or the Priority Lien Obligations; 

        (2)   the
enforcement or forebearance from enforcement of any Lien in respect of the Collateral; 

        (3)   the
exercise or forebearance from exercise of rights and powers of a holder of shares of stock included in the Senior Trust Estate to the extent provided in the Security
Documents; 

        (4)   the
acceptance of the Collateral in full or partial satisfaction of the Priority Lien Obligations; and 

        (5)   the
exercise or forebearance from exercise of all rights and remedies of a secured lender under the UCC or any similar law of any applicable jurisdiction or in equity. 

        (e)   Without
in any way limiting the generality of the foregoing paragraphs, the Priority Lien Secured Parties may, at any time and from time to time, without the consent of
or notice to the Parity Lien Secured Parties, without incurring responsibility to the Parity Lien Secured Parties and without impairing or releasing the subordination provided in this Agreement or the
obligations hereunder of the Parity Lien Secured Parties, do any one or more of the following: 

        (1)   change
the manner, place or terms of payment or extend the time of payment of, or renew or alter, the Priority Lien Obligations, or otherwise amend or supplement in any
manner the Priority Lien Obligations, or any instrument evidencing the Priority Lien Obligations or any agreement under which the Priority Lien Obligations are outstanding; 

        (2)   release
any Person or entity liable in any manner for the collection of the Priority Lien Obligations; 

        (3)   release
the Lien on any Collateral securing the Priority Lien Obligations; and 

        (4)   exercise
or refrain from exercising any rights against any Obligor. 

        (f)    Prior
to the Discharge of Priority Lien Obligations, the Parity Lien Secured Parties and the Collateral Trustee may not assert or enforce any right of marshalling
accorded to a junior lienholder, as against the Priority Lien Secured Parties (in their capacity as priority lienholders), under equitable principles. Parity Lien Secured Parties may assert their
right under Section 9-608(a)(1)(c) of the UCC or any other applicable law or principles of equity to any remaining proceeds of a disposition of Collateral by the Collateral Trustee
or a Priority Lien Secured Party after a Discharge of Priority Lien Obligations. 

        SECTION
2.4    Special Rights in Insolvency Proceedings.    

        (a)   If
in any Insolvency Proceeding and prior to the Discharge of Priority Lien Obligations, the holders of Priority Lien Obligations by an Act of Instructing Debtholders
consent to any order: 

        (1)   for
use of cash collateral; 

        (2)   approving
a debtor-in-possession financing secured by a Lien that is senior to or on a parity with all Priority Liens upon any property of the
estate in such Insolvency Proceeding; 

        (3)   granting
any relief on account of Priority Lien Obligations as adequate protection (or its equivalent) for the benefit of the holders of Priority Lien Obligations in the
Collateral subject to Priority Liens; or 

17

 

        (4)   relating
to a sale of assets of the Borrower or any other Obligor that provides, to the extent the Collateral sold is to be free and clear of Liens, that all Priority
Liens and Parity Liens will attach to the proceeds of the sale; 

then,
the Parity Lien Secured Parties, in their capacity as holders or representatives of secured claims, will not oppose or otherwise contest the entry of such order, so long as none of the Priority
Lien Secured Parties in any respect opposes or otherwise contests any request made by any Parity Lien Secured Party for the grant to the Collateral Trustee, for the benefit of the Parity Lien Secured
Parties, of a junior Lien upon any property on which a Lien is (or is to be) granted under such order to secure the Priority Lien Obligations, co-extensive in all respects with, but
subordinated (as set forth in Section 2.3) to, such Lien and all Priority Liens on such property. 

        Notwithstanding
the foregoing, both before and during an Insolvency Proceeding, the Parity Lien Secured Parties may take any actions and exercise any and all rights that would otherwise
be available to a holder of unsecured claims, including, without limitation, the commencement of Insolvency Proceedings against any Obligors in accordance with applicable law;  provided, however, that,
both before and during an Insolvency Proceeding, the Parity Lien Secured Parties may not challenge the validity,
enforceability, perfection or priority of the Priority Liens. 

        (b)   The
Parity Lien Secured Parties will not file or prosecute in any Insolvency Proceeding any motion for adequate protection (or any comparable request for relief) based
upon their interest in the Collateral under the Parity Liens, except that: 

        (1)   they
may freely seek and obtain relief: (A) granting a junior Lien co-extensive in all respects with, but subordinated (as set forth in
Section 2.3) to, all Liens granted in such Insolvency Proceeding to, or for the benefit of, the holders of Priority Lien Obligations; or (B) in connection with the confirmation of any
plan of reorganization or similar dispositive restructuring plan; and 

        (2)   they
may freely seek and obtain any relief upon a motion for adequate protection (or any comparable relief), without any condition or restriction whatsoever, at any time
after the Discharge of Priority Lien Obligations. 

        (c)   If
in any Insolvency Proceeding, debt obligations of the reorganized debtor secured by Liens on any property of the reorganized debtor are distributed both on account of
Priority Lien Obligations and on account of Parity Lien Obligations, then, to the extent that the debt obligations distributed on account of the Priority Lien Obligations and on account of the Parity
Lien Obligations are secured by Liens on the same property, the provisions of Section 2.3 will survive the distribution of those debt obligations pursuant to the plan and will apply with like
effect to the Liens securing those debt obligations. 

        SECTION
2.5    Collateral Shared Equally and Ratably within Class.    The parties to this Agreement agree that the
payment and satisfaction of all of the Secured Obligations within each Class will be secured equally and ratably by the security interests established in favor of the Collateral Trustee for the
benefit of the Secured Parties belonging to such Class. It is understood and agreed that nothing in this Section 2.5 is intended to alter the priorities among Secured Parties belonging to
different Classes as provided in Section 2.3. 

ARTICLE 3. OBLIGATIONS AND POWERS OF COLLATERAL TRUSTEE  

        SECTION
3.1    Undertaking of the Collateral Trustee.    

        (a)   Subject
to, and in accordance with, this Agreement, the Collateral Trustee will, as trustee, for the benefit solely and exclusively of the present and future Secured
Parties: 

        (1)   accept,
enter into, hold, maintain, administer and enforce all Security Documents, including all Collateral subject thereto, and all security interests created
thereunder, perform its 

18

 

obligations
under the Security Documents and protect, exercise and enforce the interests, rights, powers and remedies granted or available to it under, pursuant to or in connection with the Security
Documents; 

        (2)   take
all lawful and commercially reasonable actions permitted under the Security Documents that it may deem necessary or advisable to protect or preserve its interest in
the Collateral subject thereto and such interests, rights, powers and remedies; 

        (3)   deliver
and receive notices pursuant to the Security Documents; 

        (4)   sell,
assign, collect, assemble, foreclose on, institute legal proceedings with respect to, or otherwise exercise or enforce the rights and remedies of a secured party
(including a mortgagee, trust deed beneficiary and insurance beneficiary or loss payee) with respect to the Collateral under the Security Documents and its other interests, rights, powers and
remedies; 

        (5)   remit
as provided in Section 3.4 all cash proceeds received by the Collateral Trustee from the collection, foreclosure or enforcement of its interest in the
Collateral under the Security Documents or any of its other interests, rights, powers or remedies; 

        (6)   execute
and deliver amendments to the Security Documents as from time to time authorized by an Act of Instructing Debtholders accompanied by an Officers' Certificate to
the effect that the amendment was permitted by each applicable Secured Debt Document; and 

        (7)   release
any Lien granted to it by any Security Document upon any Collateral if and as required by Section 4.1(b) or Section 4.1(c). 

        (b)   Each
party to this Agreement acknowledges and consents to the undertaking of the Collateral Trustee set forth in Section 3.1(a) and agrees to each of the other
provisions of this Agreement applicable to it. 

        (c)   Notwithstanding
anything to the contrary contained in this Agreement, the Collateral Trustee will not commence any exercise of remedies or any foreclosure actions or
otherwise take any action or proceeding against any of the Collateral (other than actions as necessary to prove, protect or preserve the Liens securing the Secured Obligations) unless and until it
shall have received a Notice of Actionable Default, and then only in accordance with the provisions of this Agreement. 

        SECTION
3.2    Release or Subordination of Liens.    The Collateral Trustee will not release or subordinate any Lien
of the Collateral Trustee or consent to the release or subordination of any Lien of the Collateral Trustee, except: 

        (a)   as
directed by an Act of Instructing Debtholders accompanied by an Officers' Certificate to the effect that the release or subordination was permitted by each applicable
Secured Debt Document; 

        (b)   as
required by Article 4; 

        (c)   as
ordered pursuant to applicable law under a final and nonappealable order or judgment of a court of competent jurisdiction; or 

        (d)   for
the subordination of the Junior Trust Estate and the Parity Liens to the Senior Trust Estate and the Priority Liens. 

        SECTION
3.3    Remedies Upon Actionable Default.    If the Collateral Trustee at any time receives a Notice of
Actionable Default, the Collateral Trustee will promptly deliver written notice thereof to each Secured Debt Representative. Thereafter, the Collateral Trustee may await direction by an Act of
Instructing Debtholders and will act, or decline to act, as directed by an Act of Instructing Debtholders, in the exercise and enforcement of the Collateral Trustee's interests, rights, powers and
remedies in respect of the Collateral or under the Security Documents or applicable law and, following the initiation of such exercise of remedies, the Collateral Trustee will act, or decline to act,
with respect to 

19

 

the
manner of such exercise of remedies as directed by an Act of Instructing Debtholders. Unless it has been directed to the contrary by an Act of Instructing Debtholders, the Collateral Trustee in
any event may (but will not be obligated to) take or refrain from taking such action with respect to any Actionable Default as it may deem advisable and in the best interest of the holders of Secured
Obligations. 

        SECTION
3.4    Application of Proceeds.    

        (a)   The
Collateral Trustee will apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral and the proceeds of any title insurance
policy required under any Priority Lien Document or Parity Lien Document in the following order of application and pursuant to wiring instructions as specified in an Act of Instructing Debtholders: 

        FIRST,
to the payment of all amounts payable under this Agreement on account of the Collateral Trustee's direct or indirect fees and any reasonable legal fees, costs and expenses or
other liabilities of any kind incurred by the Collateral Trustee or any co-trustee or agent in connection with any Security Document; 

        SECOND,
to the repayment of Indebtedness or other Obligations, other than Secured Debt, secured by a Permitted Prior Lien on the Collateral sold or realized upon; 

        THIRD,
to the respective Priority Debt Representatives for application to the payment of all outstanding Priority Lien Debt and any other Priority Lien Obligations that are then due and
payable in such order as may be provided in the Priority Lien Documents in an amount sufficient to pay in full in cash all outstanding Priority Lien Debt and all other Priority Lien Obligations that
are then due and payable (including all interest accrued thereon after the commencement of any bankruptcy, Insolvency Proceeding at the rate, including any applicable post-default rate,
specified in the Priority Lien Documents, even if such interest is not enforceable, allowable or allowed as a claim in such proceeding, and including the discharge or cash collateralization (at the
lower of (1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of Liens under the terms of the applicable Priority Lien
Document) of all outstanding letters of credit constituting Priority Lien Debt); 

        FOURTH,
to the respective Parity Debt Representatives for application to the payment of all outstanding Parity Lien Debt and any other Parity Lien Obligations that are then due and
payable in such order as may be provided in the Parity Lien Documents in an amount sufficient to pay in full in cash all outstanding Parity Lien Debt and all other Parity Lien Obligations that are
then due and payable (including all interest accrued thereon after the commencement of any bankruptcy, Insolvency Proceeding at the rate, including any applicable post-default rate,
specified in the Parity Lien Documents, even if such interest is not enforceable, allowable or allowed as a claim in such proceeding, and including the discharge or cash collateralization (at 102.5%
of the aggregate undrawn amount) of all outstanding letters of credit constituting Parity Lien Debt); and 

        FIFTH,
any surplus remaining after the payment in full in cash of all of the Secured Obligations entitled to the benefit of such Collateral will be paid to the Borrower or the other
applicable Obligor, as the case may be, or its successors or assigns, or as a court of competent jurisdiction may direct. 

        (b)   If
any Parity Debt Representative or any holder of a Parity Lien Obligation collects or receives any proceeds in respect of the Parity Lien Obligations that should have
been applied to the payment of the Priority Lien Obligations or obligations secured by a Permitted Prior Lien in accordance with clause (a) above and a Responsible Officer of such Parity Debt
Representative shall have received written notice, or shall have actual knowledge, of the same prior to such Parity Debt Representative's distribution of such proceeds, whether after the commencement
of an Insolvency Proceeding or otherwise, such Parity Debt Representative or such holder of a Parity Lien Obligation, as 

20

 

the
case may be, will forthwith deliver the same to the Collateral Trustee, for the account of the holders of the Priority Lien Obligations or obligations secured by a Permitted Prior Lien, in the
form received, duly indorsed to the Collateral Trustee, for the account of the holders of the Priority Lien Obligations or obligations secured by a Permitted Prior Lien to be applied in accordance
with clause (a) above. Until so delivered, such proceeds will be held by such Parity Debt Representative or such holder of a Parity Lien Obligation, as the case may be, for the benefit of the
holders of the Priority Lien Obligations or obligations secured by a Permitted Prior Lien. This Section 3.4(b) shall not apply to payments received by any holder of Parity Lien Obligations if
such payments are not proceeds of any collection, sale, foreclosure or other realization upon any Collateral. 

        SECTION
3.5    Powers of the Collateral Trustee.    

        (a)   The
Collateral Trustee is irrevocably authorized and empowered to enter into and perform its obligations and protect, perfect, exercise and enforce its interest, rights,
powers and remedies under the Security Documents and applicable law and in equity and to act as set forth in this Article 3 or as requested in any lawful directions given to it from time to
time in respect of any matter by an Act of Instructing Debtholders. 

        (b)   No
Secured Debt Representative, Secured Debtholder or other holder of Secured Obligations will have any liability whatsoever for any act or omission of the Collateral
Trustee. 

        SECTION
3.6    Documents and Communications.    The Collateral Trustee will permit each Secured Debt Representative
and each Secured Debtholder upon reasonable written notice from time to time to inspect and copy, at the cost and expense of the party requesting such copies, any and all Security Documents and other
documents, notices, certificates, instructions or communications received by the Collateral Trustee in its capacity as such. 

        SECTION
3.7    For Sole and Exclusive Benefit of Holders of Secured Obligations.    The Collateral Trustee will
accept, hold, administer and enforce all Liens at any time transferred or delivered to it and all other interests, rights, powers and remedies at any time granted to or enforceable by the Collateral
Trustee and all other property of the Trust Estates solely and exclusively for the benefit of the present and future holders of present and future Secured Obligations, and will distribute all proceeds
received by it in realization thereon or from enforcement thereof solely and exclusively pursuant to the provisions of Section 3.4. 

        SECTION
3.8    Additional Secured Debt.    

        (a)   The
Collateral Trustee will, as trustee hereunder, perform its undertakings set forth in Section 3.1(a) with respect to each holder of Secured Obligations of a
Series of Secured Debt that is issued or incurred after the date hereof that: 

        (1)   holds
Secured Obligations that are identified as Parity Lien Debt or Priority Lien Debt in accordance with the procedures set forth in Section 3.8(b); and 

        (2)   signs,
through its designated Secured Debt Representative identified pursuant to Section 3.8(b), a Collateral Trust Joinder. 

        (b)   The
Borrower or other applicable Obligor will be permitted to designate as additional Secured Debtholders hereunder each Person who is, or who becomes, the registered
holder of Parity Lien Debt or the registered holder of Priority Lien Debt incurred by the Borrower or such other Obligor after the date of this Agreement in accordance with the terms of the Secured
Debt Documents. The Borrower 

21

 

or
other applicable Obligor may effect such designation by delivering to the Collateral Trustee, with copies to each previously identified Secured Debt Representative, each of the following: 

        (1)   an
Officers' Certificate stating that: 

        (A)  the
Borrower or such other Obligor intends to incur additional Secured Debt ("New Secured Debt") which will either be
(x) Priority Lien Debt permitted by each applicable Secured Debt Document to be secured by a Priority Lien on a pari passu basis with all
previously existing Priority Lien Debt or (y) Parity Lien Debt permitted by each applicable Secured Debt Document to be secured with a Parity Lien on a pari
passu basis with all previously existing Parity Lien Debt; and 

        (2)   evidence
that the Borrower or such other Obligor has duly authorized, executed (if applicable) and recorded (or caused to be recorded) in each appropriate governmental
office all relevant filings and recordations to ensure that the New Secured Debt is secured by the Collateral; 

        (3)   a
written notice specifying the name and address of the Secured Debt Representative for such series of New Secured Debt for purposes of Section 7.7. 

Notwithstanding
the foregoing, nothing in this Agreement will be construed to allow the Borrower or any other Obligor to incur additional Indebtedness unless otherwise permitted by the terms of the
Secured Debt Documents. 

ARTICLE 4. OBLIGATIONS ENFORCEABLE BY THE BORROWER AND THE OTHER OBLIGORS  

        SECTION
4.1    Release of Liens.    

        (a)   The
Collateral Trustee's Liens upon the Collateral will be released pursuant to Section 4.1(b) below: 

        (1)   in
whole, upon (A) payment in full and discharge of all outstanding Secured Debt and all other Secured Obligations that are outstanding, due and payable at the
time all of the Secured Debt is paid in full and discharged and (B) termination or expiration of all commitments to extend credit under all Secured Debt Documents and the cancellation or
termination or cash collateralization (at the lower of (1) 105% of the aggregate undrawn amount and (2) the percentage of the aggregate undrawn amount required for release of Liens under
the terms of the applicable Secured Debt Documents) of all outstanding letters of credit issued pursuant to any Secured Debt Documents; 

22

  

        (2)   as
to any Collateral that is sold, transferred or otherwise disposed of by the Borrower or any other Obligor in a transaction or other circumstance that is not
prohibited by the Secured Debt Documents, at the time of such sale, transfer or other disposition or to the extent of the interest sold, transferred or otherwise disposed of; and 

        (3)   as
to any Collateral other than Collateral being released pursuant to clauses (1) or (2) of this paragraph, if (A) consent to the release of that
Collateral has been given by an Act of Instructing Debtholders; provided, that if such Collateral represents all or substantially all of the Collateral,
consent to release of such Collateral has been given by the requisite percentage or number of holders of each Series of Secured Debt at the time outstanding as provided for in the applicable Secured
Debt Documents and (B) the Borrower has delivered an Officers' Certificate to the Collateral Trustee certifying that any such necessary consents have been obtained;  provided, that the Collateral
Trustee receives a copy of the Act of Instructing Debtholders. 

        (b)   The
Collateral Trustee agrees for the benefit of the Borrower and the other Obligors that if the Collateral Trustee at any time receives: 

        (1)   an
Officers' Certificate stating that (A) the signing officer has read Article 4 of this Agreement and understands the provisions and the definitions
relating hereto, (B) such officer has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not the conditions precedent in
this Agreement and all other Secured Debt Documents, if any, relating to the release of the Collateral have been complied with and (C) in the opinion of such officer, such conditions precedent,
if any, have been complied with; 

        (2)   the
proposed instrument or instruments releasing such Lien as to such property in recordable form, if applicable; and 

        (3)   prior
to the Discharge of Priority Lien Obligations, the written confirmation of each Priority Debt Representative (or, at any time after the Discharge of Priority Lien
Obligations, each Parity Debt Representative (such confirmation to be given following receipt of, and based solely on, the Officers' Certificate described in clause (1) above) that, in its
view, such release is permitted by Section 4.1(a) and the respective Secured Debt Documents governing the Secured Obligations the holders of which such Secured Debt Representative represents; 

then
the Collateral Trustee will execute (with such acknowledgements and/or notarizations as are required) and deliver such release to the Borrower or other applicable Obligor on or before the later
of (x) the date specified in such request for such release and (y) the fifth Business Day after the date of receipt of the items required by this Section 4.1(b) by the Collateral
Trustee. 

        (c)   Notwithstanding
Section 4.1(a) or the provisions of any other Security Document, upon the occurrence of the following, the Collateral Trustee's Lien in the
applicable Collateral specified below shall automatically, without further action, be released: 

        (1)   with
respect to any sale, transfer or other disposition of all or a majority of the capital stock issued by any Obligor (other than the Borrower) to a Person that is not
an Affiliate of the Borrower, provided, that such sale, transfer or other disposition does not violate the terms of any Secured Debt Document, upon such sale, transfer or other disposition, the Lien
of the Security Documents in such capital stock issued by such Obligor and in the Collateral granted by such Obligor shall automatically, without further action, be released; 

        (2)   with
respect to any Collateral that shall be sold, transferred or otherwise disposed of in the ordinary course of business, provided, that such sale, transfer or other
disposition does not violate the terms of any Secured Debt Document, upon such sale, transfer or other disposition, the Lien of the Security Documents in such Collateral shall automatically, without
further action, be released; 

23

 

        (3)   with
respect to any capital stock issued by any Obligor (other than the Borrower) that is dissolved, provided, that such dissolution does not violate the terms of any
Secured Debt Document, upon such dissolution, the Lien of the Security Documents in such capital stock issued by such Obligor shall automatically, without further action, be released; 

        (4)   with
respect to any accounts and related rights of any Obligor subject to any monetization or securitization transaction, provided, that such transaction does not
violate the terms of any Secured Debt Document, upon the effectiveness of such transaction, the Lien of the Security Documents in such accounts and related rights, shall automatically, without further
action, be released; 

        (5)   unless
an Actionable Default shall have occurred and be continuing and the Collateral Trustee shall have received an Act of Instructing Debtholders to the contrary, with
respect to amounts withdrawn from any accounts by any Obligor pursuant to, and in accordance with, the applicable Security Documents with respect thereto, and in each case applied to pay third-party
liabilities in the ordinary course of business (including, without limitation, to pay Powerton/Joliet Lease Liabilities) or to make Restricted Payments (so long as such payments meet the definition of
"Restricted Payments" in, and
are permitted by, the Indenture and each other Secured Debt Document) in compliance with the Secured Debt Documents, upon such application, the Lien of the Security Documents in such amounts shall
automatically, without further action, be released; 

        (6)   with
respect to amounts distributed by the Collateral Trustee pursuant to, and in accordance with the provisions of this Agreement, upon such distribution, the Lien of
the Security Documents in such amounts shall automatically, without further action, be released; 

        (7)   with
respect to amounts received by the Borrower as payments on each EME Note (as defined in each Powerton/Joliet Participation Agreement), provided that no event of
default under any Priority Lien Document or any Parity Lien Document shall have occurred and be continuing, upon receipt of such amount, the Lien of the Security Documents in such proceeds shall
automatically, without further action, be released; 

        (8)   with
respect to any insurance proceeds received by the Borrower, upon delivery to the Collateral Trustee of a certificate of the authorized officer of the Borrower that
such proceeds have been received on account of a casualty or other loss at the Powerton Facility or Joliet Leased Facility and are required to be applied in accordance with the Powerton/Joliet Lease
Documents as in effect on the date of the Indenture, the Lien of the Security Documents in such proceeds shall automatically, without further action, be released; 

        (9)   with
respect to any Collateral in which a security interest cannot be perfected by the filing of a financing statement under the UCC of the relevant jurisdiction, upon
delivery to the Collateral Trustee of a certificate of the authorized officer of the Borrower that the aggregate Fair Market Value of such Collateral together with the Fair Market Value all other
Collateral released in reliance on this clause (9) from the date of the Indenture, does not exceed $100,000,000, the Lien of the Security Documents in such Collateral shall automatically,
without further action, be released; provided, that notwithstanding anything in this clause (9) to the contrary, (i) any proceeds of any
Collateral that is perfected pursuant to Section 9-315 of the UCC of any relevant jurisdiction, (ii) any asset sale proceeds or any insurance proceeds (other than any
insurance proceeds excluded pursuant to clause (8) above) and (iii) the Collateral Account shall not be released pursuant to this clause (9); and 

        (10) with
respect to any Collateral for which the release of the Lien of the Security Documents is provided for pursuant to a provision of any Security Document, the Lien of
the Security Documents on such Collateral shall automatically, without further action, hereunder be released as provided for in such provision; 

24

 

and,
in each such case, upon request of the Borrower, the Collateral Trustee will execute (with such acknowledgements and/or notarizations as are required) and deliver evidence of such release to the
Borrower; provided, however, that within 15 days after the end of the six-month periods ended on June 30 and
December 31 in each year, the Borrower will deliver to the Collateral Trustee an Officers' Certificate from the Borrower to the effect that no release of Collateral pursuant to this
Section 4.1(c) during the preceding six-month period has violated the terms of any Secured Debt Document. 

        (d)   The
Collateral Trustee hereby agrees that: 

        (1)   in
the case of any release pursuant to clause (2) of Section 4.1(a), if the terms of any such sale, transfer or other disposition require the payment of
the purchase price to be contemporaneous with the delivery of the applicable release, then, at the written request of and at the expense of the Borrower or other applicable Obligor, the Collateral
Trustee will either be present at the closing of such transaction or will deliver the release under customary escrow arrangements that permit such contemporaneous payment and delivery of the release;
and 

        (2)   at
any time when a Secured Debt Default under a Series of Secured Debt that constitutes Parity Lien Debt has occurred and is continuing, within one Business Day of the
receipt by it of any Act of Instructing Debtholders pursuant to Section 4.1(a)(3), the Collateral Trustee will deliver a copy of such Act of Instructing Debtholders to each Secured Debt
Representative. 

        (e)   Each
Secured Debt Representative hereby agrees that: 

        (1)   as
soon as reasonably practicable after receipt of an Officers' Certificate from the Borrower pursuant to Section 4.1(b)(1) it will, to the extent required by
such Section, either provide (A) the written confirmation required by Section 4.1(b)(3), (B) a written statement that such release is not permitted by Section 4.1(a) or
(C) a request for further information from the Borrower reasonably necessary to determine whether the proposed release is permitted by Section 4.1(a) and after receipt of such
information such Secured Debt Representative will as soon as reasonably practicable either provide the written confirmation or statement required pursuant to clause (A) or (B), as applicable;
and 

        (2)   within
one Business Day of the receipt by it of any notice from the Collateral Trustee pursuant to Section 4.1(d)(2), such Secured Debt Representative will
deliver a copy of such notice to each registered holder of the Series of Priority Lien Debt or Series of Parity Lien Debt for which it acts as Secured Debt Representative. 

        SECTION
4.2    Delivery of Copies to Secured Debt Representatives.    The Borrower will deliver to each Secured Debt
Representative a copy of each Officers' Certificate delivered to the Collateral Trustee pursuant to Section 4.1(b), together with copies of all documents delivered to the Collateral Trustee
with such Officers' Certificate. The Secured Debt Representatives will not be obligated to take notice thereof or to act thereon, subject to Section 4.1(e). 

        SECTION
4.3    Collateral Trustee not Required to Serve, File or Record.    The Collateral Trustee is not required to
serve, file, register or record any instrument releasing or subordinating its security interest in any Collateral; provided, however, that if the
Borrower or any Pledgor shall make a written demand for a termination statement under Section 9-513(c) of the UCC, the Collateral Trustee shall comply with the written request of
such Borrower or Pledgor to comply with the requirements of such UCC provision, provided, that the Collateral Trustee must first confirm with the
Secured Debt Representatives that the requirements of such UCC provisions have been satisfied. 

ARTICLE 5. IMMUNITIES OF THE COLLATERAL TRUSTEE  

        SECTION
5.1    No Implied Duty.    The Collateral Trustee will not have any fiduciary duties nor will it have
responsibilities or obligations other than those expressly assumed by it in this Agreement 

25

 

and
the other Security Documents. The Collateral Trustee will not be required to take any action that is contrary to applicable law or any provision of this Agreement or the other Security Documents.
The Collateral Trustee shall have no duty to monitor compliance by the Borrower with its duties and obligations under this Agreement or the other Security Documents, except to the extent expressly
provided herein or therein. 

        SECTION
5.2    Appointment of Agents and Advisors.    The Collateral Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through agents, attorneys, accountants, appraisers or other experts or advisors selected by it in good faith as it may reasonably
require and will not be responsible for any misconduct or negligence on the part of any of them. 

        SECTION
5.3    Co-Collateral Trustees.    

        (a)   At
any time or times, for the purposes of meeting the legal requirements of any jurisdiction in which any of the Collateral may at the time be located, the Borrower and
the Collateral Trustee shall have power to appoint and, upon written request of the Collateral Trustee, the Borrower shall for such purpose join with the Collateral Trustee in the execution, delivery
and performance of all instruments and agreements necessary or proper to appoint one or more persons approved by the Collateral Trustee to act as co-trustee, jointly with the Collateral
Trustee, of all or any part of the Collateral, with such powers as may be provided in the instrument of appointment, and to vest in such person or persons in the capacity aforesaid, any property,
title, right or power deemed necessary or desirable, subject to the other provisions of this Section 5.3; provided that any person appointed as a
co-trustee hereunder must meet the requirements of Section 6.2. If the Borrower does not join in such appointment within 15 days after the receipt by it of a request to do
so, or in case it has received a Notice of Actionable Default, the Collateral Trustee alone shall have power to make such appointment. 

        (b)   Should
any written instrument from the Borrower be required by any co-trustee so appointed for more fully confirming to such co-trustee such
property, title, right or power, any and all such instruments shall, on request, be executed, acknowledged and delivered by the Borrower. 

        (c)   Every
co-trustee shall, to the extent permitted by law, but to such extent only, be appointed subject to the following terms: 

        (1)   All
rights, powers, duties and obligations hereunder in respect of the custody of securities, cash and other personal property held by, or required to be deposited or
pledged with, the Collateral Trustee hereunder, shall be exercised solely by the Collateral Trustee. 

        (2)   The
rights, powers, duties and obligations hereby conferred or imposed upon the Collateral Trustee in respect of any property covered by such appointment shall be
conferred or imposed upon and exercised or performed by the Collateral Trustee or by the Collateral Trustee and such co-trustee jointly, as shall be provided in the instrument appointing
such co-trustee, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Collateral Trustee shall be incompetent or unqualified to
perform such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such co-trustee. 

        (3)   The
Collateral Trustee at any time, by an instrument in writing executed by it, with the concurrence of the Borrower evidenced by an Officers' Certificate of the
Borrower, may accept the resignation of or remove any co-trustee appointed under this Section 5.3, and, in case it has received a Notice of Actionable Default, the Collateral
Trustee shall have power to accept the resignation of, or remove, any such co-trustee without the concurrence of the Borrower. Upon the written request of the Collateral Trustee, the
Borrower shall join with the Collateral Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to 

26

 

effectuate
such resignation or removal. A successor to any co-trustee so resigned or removed may be appointed in the manner provided in this Section 5.3. 

        (4)   No
co-trustee hereunder shall be personally liable by reason of any act or omission of the Collateral Trustee, or any such other trustee hereunder. 

        (5)   Any
notice, direction or instruction delivered to the Collateral Trustee shall be deemed to have been delivered to each such co-trustee. 

        SECTION
5.4    Other Agreements.    The Collateral Trustee has accepted and is bound by the Security Documents
executed by the Collateral Trustee as of the date of this Agreement and, as directed by an Act of Instructing Debtholders, the Collateral Trustee may execute additional Security Documents delivered to
it after the date of this Agreement, provided, however, that such additional Security Documents do not adversely affect the rights, privileges, benefits
and immunities of the Collateral Trustee. The Collateral Trustee will not otherwise be bound by, or be held obligated by, the provisions of any credit agreement, indenture or other agreement governing
Secured Debt (other than this Agreement and the other Security Documents). 

        SECTION
5.5    Solicitation of Instructions.    

        (a)   The
Collateral Trustee may at any time solicit written confirmatory instructions, in the form of an Act of Instructing Debtholders, an Officers' Certificate or an order
of a court of competent jurisdiction, as to any action that it may be requested or required to take, or that it may propose to take, in the performance of any of its obligations under this Agreement,
the other Security Documents or any Powerton/Joliet Lease Documents. 

        (b)   No
written direction given to the Collateral Trustee by an Act of Instructing Debtholders that in the sole judgment of the Collateral Trustee imposes, purports to impose
or might reasonably be expected to impose upon the Collateral Trustee any obligation or liability not set forth in or arising under this Agreement and the other Security Documents will not be binding
upon the Collateral Trustee unless the Collateral Trustee elects, at its sole option, to accept such direction. 

        SECTION
5.6    Limitation of Liability.    The Collateral Trustee will not be responsible or liable for any action
taken or omitted to be taken by it hereunder or under any other Security Document or the Powerton/Joliet Lease Documents, except for its own gross negligence, bad faith or willful misconduct as
determined by a court of competent jurisdiction. 

        SECTION
5.7    Documents in Satisfactory Form.    The Collateral Trustee will be entitled to require that all
agreements, certificates, opinions, instruments and other documents at any time submitted to it, including those expressly provided for in this Agreement, be delivered to it in a form and with
substantive provisions reasonably satisfactory to it. 

        SECTION
5.8    Entitled to Rely.    The Collateral Trustee may conclusively rely upon, and shall be fully protected in
relying upon, any writing, certificate, notice, statement, order or other document (including any facsimile) reasonably believed by it to be genuine and correct and to have been signed or sent by or
on behalf of the proper Person or Persons and need not investigate any fact or matter stated in any such document. The Collateral Trustee may seek and rely upon, and shall be fully protected in
relying upon, any judicial order or judgment, upon any advice, opinion or statement of legal counsel, independent consultants and other experts selected by it in good faith and upon any certification,
instruction, notice or other writing delivered to it by the Borrower or any other Obligor in compliance with the provisions of this Agreement or delivered to it by any Secured Debt Representative as
to the Secured Debtholders for whom it acts, without being required to determine the authenticity thereof or the correctness of any fact stated therein or the propriety or validity of service thereof.
The Collateral Trustee may act in reliance upon any instrument comporting with the provisions of this Agreement or any signature reasonably believed by it to be genuine and may assume 

27

 

that
any Person purporting to give notice or receipt or advice or make any statement or execute any document in connection with the provisions hereof or the other Security Documents has been duly
authorized to do so. To the extent a certificate, Officers' Certificate or opinion of counsel is required or permitted under this Agreement to be delivered to the Collateral Trustee in respect of any
matter, the Collateral Trustee may rely conclusively on such certificate, Officers' Certificate or opinion of counsel as to such matter and such certificate, Officer's Certificate or opinion of
counsel shall be full warranty and protection to the Collateral Trustee for any action taken, suffered or omitted by it under the provisions of this Agreement and the other Security Documents. 

        SECTION
5.9    Secured Debt Default.    The Collateral Trustee will not be required to inquire as to the occurrence or
absence of any Secured Debt Default and will not be affected by or required to act upon
any notice or knowledge as to the occurrence of any Secured Debt Default unless and until it receives a Notice of Actionable Default. 

        SECTION
5.10    Actions by Collateral Trustee.    As to any matter not expressly provided for by this Agreement or the
other Security Documents, the Collateral Trustee will act or refrain from acting as directed by an Act of Instructing Debtholders and will be fully protected if it does so, and any action taken,
suffered or omitted pursuant to hereto or thereto shall be binding on the Secured Debtholders. 

        SECTION
5.11    Security or Indemnity in favor of the Collateral Trustee.    The Collateral Trustee will not be
required to advance or expend any funds or otherwise incur any financial liability in the performance of its duties or the exercise of its powers or rights hereunder unless it has been provided with
security or indemnity reasonably satisfactory to it against any and all liability or expense which may be incurred by it by reason of taking or continuing to take such action. 

        SECTION
5.12    Rights of the Collateral Trustee.    In the event of any conflict between any terms and provisions set
forth in this Agreement and those set forth in any other Security Document, the terms and provisions of this Agreement shall supersede and control the terms and provisions of such other Security
Document. In the event there is any bona fide, good faith disagreement between the other parties to this Agreement or any of the other Security Documents resulting in adverse claims being made in
connection with Collateral held by the Collateral Trustee and the terms of this Agreement or any of the other Security Documents do not unambiguously mandate the action the Collateral Trustee is to
take or not to take in connection therewith under the circumstances then existing, or the Collateral Trustee is in doubt as to what action it is required to take or not to take hereunder, it will be
entitled to refrain from taking any action (and will incur no liability for doing so) until directed otherwise in writing by a request signed jointly by the parties hereto entitled to give such
direction or by order of a court of competent jurisdiction. 

        SECTION
5.13    Limitations on Duty of Collateral Trustee in Respect of Collateral.    

        (a)   Beyond
the exercise of reasonable care in the custody of Collateral in its possession, the Collateral Trustee will have no duty as to any Collateral in its possession or
control or in the possession or control of any agent or bailee or any income thereon or as to preservation of rights against prior parties or any other rights pertaining thereto and the Collateral
Trustee will not be responsible for filing any financing or continuation statements or recording any documents or instruments in any public office at any time or times or otherwise perfecting or
maintaining the perfection of any security interest in the Collateral. The Collateral Trustee will be deemed to have exercised reasonable care in the custody of the Collateral in its possession if the
Collateral is accorded treatment substantially equal to that which it accords its own property, and the Collateral Trustee will not be liable or responsible for any loss or diminution in the value of
any of the Collateral by reason of the act or omission of any carrier, forwarding agency or other agent or bailee selected by the Collateral Trustee in good faith. 

        (b)   The
Collateral Trustee will not be responsible for the existence, genuineness or value of any of the Collateral or for the validity, perfection, priority or
enforceability of the Liens in any of the 

28

 

Collateral,
whether impaired by operation of law or by reason of any action or omission to act on its part hereunder, except to the extent such action or omission constitutes gross negligence, bad
faith or willful misconduct on the part of the Collateral Trustee, for the validity or sufficiency of the Collateral or any agreement or assignment contained therein, for the validity of the title of
any Obligor to the Collateral, for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral. The
Collateral Trustee hereby disclaims any representation or warranty to the present and future holders of the Secured Obligations concerning the perfection of the Liens and security interests granted
hereunder or in the value of any of the Collateral. 

        SECTION
5.14    Assumption of Rights, Not Assumption of Duties.    Notwithstanding anything to the contrary contained
herein: 

        (1)   each
of the parties thereto will remain liable under each of the Security Documents (other than this Agreement) to the extent set forth therein to perform all of their
respective duties and obligations thereunder to the same extent as if this Agreement had not be executed; 

        (2)   the
exercise by the Collateral Trustee of any of its rights, remedies or powers hereunder will not release such parties from any of their respective duties or
obligations under the other Security Documents; and 

        (3)   the
Collateral Trustee will not be obligated to perform any of the obligations or duties of any of the parties thereunder other than the Collateral Trustee. 

        SECTION
5.15    No Liability for Clean Up of Hazardous Materials.    In the event that the Collateral Trustee is
required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any fiduciary or trust obligation for the benefit of another,
which in the Collateral Trustee's sole discretion may cause the Collateral Trustee to be considered an "owner or operator" under any environmental laws or otherwise cause the Collateral Trustee to
incur, or be exposed to, any environmental liability or any liability under any other federal, state or local law, the Collateral Trustee reserves the right, instead of taking such action, either to
resign as Collateral Trustee or to arrange for the transfer of the title or control of the asset to a court appointed receiver. The Collateral Trustee will not be liable to any Person for any
environmental liability or any environmental claims or contribution actions under any federal, state or local law, rule or regulation by reason of the Collateral Trustee's actions and conduct as
authorized, empowered and directed hereunder or relating to any kind of discharge or release or threatened discharge or release of any hazardous materials into the environment. 

ARTICLE 6. RESIGNATION AND REMOVAL OF THE COLLATERAL TRUSTEE  

        SECTION
6.1    Resignation or Removal of Collateral Trustee.    Subject to the appointment of a successor Collateral
Trustee as provided in Section 6.2 and the acceptance of such appointment by the successor Collateral Trustee: 

        (a)   the
Collateral Trustee may resign at any time by giving not less than 30 days' notice of resignation to each Secured Debt Representative and the Borrower; and 

        (b)   the
Collateral Trustee may be removed at any time, with or without cause, by an Act of Instructing Debtholders. 

29

   
        SECTION 6.2    Appointment of Successor Collateral Trustee.    Upon any such resignation or removal, a successor
Collateral Trustee may be appointed by an Act of Instructing Debtholders. If no successor Collateral Trustee has been so appointed and accepted such appointment within 30 days after the
predecessor Collateral Trustee gave notice of resignation or was removed, the retiring Collateral Trustee may (at the expense of the Borrower), at its option, appoint a successor Collateral Trustee,
or petition a court of competent jurisdiction for appointment of a successor Collateral Trustee, which must be a bank or trust company: 

        (1)   authorized
to exercise corporate trust powers; 

        (2)   having
a combined capital and surplus of at least $250,000,000; 

        (3)   maintaining
an office in New York, New York or Wilmington, Delaware; and 

        (4)   that
is not a Secured Debt Representative. 

        The
Collateral Trustee will fulfill its obligations hereunder until a successor Collateral Trustee meeting the requirements of this Section 6.2 has accepted its appointment as
Collateral Trustee and the provisions of Section 6.3 have been satisfied. 

        SECTION
6.3    Succession.    When the Person so appointed as successor Collateral Trustee accepts such appointment: 

        (1)   such
Person will succeed to and become vested with all the rights, powers, privileges and duties of the predecessor Collateral Trustee, and the predecessor Collateral
Trustee will be discharged from its duties and obligations hereunder; and 

        (2)   the
predecessor Collateral Trustee will (at the expense of the Borrower) promptly transfer all Liens and collateral security and other property of the Trust Estates
within its possession or control to the possession or control of the successor Collateral Trustee and will execute instruments and assignments
as may be necessary or desirable or reasonably requested by the successor Collateral Trustee to transfer to the successor Collateral Trustee all Liens, interests, rights, powers and remedies of the
predecessor Collateral Trustee in respect of the Security Documents or the Trust Estates. 

        Thereafter
the predecessor Collateral Trustee will remain entitled to enforce the immunities granted to it in Article 5 and the provisions of Sections 7.9 and 7.10. 

        SECTION
6.4    Merger, Conversion or Consolidation of Collateral Trustee.    Any Person into which the Collateral
Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Collateral Trustee shall be a party, or any
Person succeeding to the business of the Collateral Trustee shall be the successor of the Collateral Trustee pursuant to Section 6.3, provided that (i) without the execution or filing of
any paper with any party hereto or any further act on the part of any of the parties hereto, except where an instrument of transfer or assignment is required by law to effect such succession, anything
herein to the contrary notwithstanding, such Person satisfies the eligibility requirements specified in clauses (1) through (4) of Section 6.2 and (ii) prior to any such
merger, conversion or consolidation, the Collateral Trustee shall have notified the Borrower, each Priority Debt Representative and each Parity Debt Representative thereof in writing. 

ARTICLE 7. MISCELLANEOUS PROVISIONS  

        SECTION
7.1    Amendment.    

        (a)   The
Collateral Trustee, acting as directed by an Act of Instructing Debtholders, and the Obligors may, at any time and from time to time, enter into written amendments
or agreements supplemental hereto or to any other Security Document for the purpose of adding to or waiving any 

30

 

provision
of this Agreement or such Security Document, granting any consent required under any other Security Document or changing any of the terms thereof;  provided that: 

        (1)   any
amendment or supplement that has the effect solely of adding or maintaining Collateral, securing additional Secured Debt that was otherwise permitted by the terms of
the Secured Debt Documents to be secured by the Collateral or preserving or perfecting the Liens thereon or the rights of the Collateral Trustee therein will become effective when executed and
delivered by the Borrower or any other applicable Obligor party thereto and the Collateral Trustee; 

        (2)   no
amendment or supplement that reduces, impairs or adversely affects the right of any Secured Debtholder 

        (A)  to
vote its outstanding Secured Debt as to any matter described as subject to an Act of Instructing Debtholders (or amends the provisions of this clause (2) or
the definitions of "Act of Instructing Debtholders" or "Actionable Default"), 

        (B)  to
share in the order of application described in Section 3.4 in the proceeds of enforcement of or realization on any Collateral that has not been released in
accordance with the provisions described in Section 4.1 or 

        (C)  to
require that Liens securing Secured Obligations be released only as set forth in the provisions described in Section 4.1, 

will
become effective without the consent of the requisite percentage or number of holders of each Series of Secured Debt so affected under the applicable Secured Debt Document; and 

        (3)   no
amendment or supplement that imposes any obligation upon the Collateral Trustee or any Secured Debt Representative or adversely affects the rights of the Collateral
Trustee or any Secured Debt Representative, respectively, in its capacity as such will become effective without the consent of the Collateral Trustee or such Secured Debt Representative, respectively. 

The
Collateral Trustee will not enter into any such amendment or supplement unless it has received an Officers' Certificate to the effect that such amendment or supplement will not result in a breach
of any provision or covenant contained in any of the Secured Debt Documents. Prior to executing any amendment or supplement pursuant to this Section 7.1, the Collateral Trustee will be entitled
to receive an opinion of counsel of the Borrower to the effect that the execution of such document is authorized or permitted hereunder, and with respect to amendments adding Collateral, an opinion of
counsel of the Borrower addressing customary perfection, and if such additional Collateral consists of equity interests of any Person, priority matters with respect to such additional Collateral. 

Notwithstanding
the foregoing, any amendment, supplement or other agreement with the purpose of releasing Collateral will only become effective with the consent of the Persons, if any, required to
effect a release of such Collateral in accordance with the requirements set forth in Section 4.1. 

        (b)   Notwithstanding
Section 7.1(a): 

        (1)   the
Collateral Trustee, acting as directed by an Act of Instructing Debtholders, and the Obligors may, at any time and from time to time, without the consent of any
Parity Lien Secured Parties, amend or supplement any Security Document that secures Priority Lien Obligations (but does not secure Parity Lien Obligations); 

        (2)   any
amendment or waiver of, or any consent under, any provision of any Security Document that secures Priority Lien Obligations (except to the extent that such
amendment, waiver or consent, would have the effect of releasing Parity Liens from the Collateral other than in accordance with Section 4.1) will apply automatically to any comparable provision
of any comparable Parity Lien Document without the consent of or notice to any Parity Lien Secured 

31

 

Party
and without any action by any Obligor or any Parity Lien Secured Party; provided that the Borrower will promptly notify the Parity Lien Secured
Parties of any amendment or waiver of, or any consent under, any provision of this Agreement or any Priority Lien Document that is a Security Document that applies automatically to any comparable
provision of any comparable Parity Lien Document, which notice will include a copy of such amendment, waiver or consent, as applicable; provided,
further, that the failure to give such notice will not affect the validity of such amendment or waiver of, or consent under, the Priority Lien Documents; and 

        (3)   unless
agreed to by an Act of Instructing Debtholders, no Security Document that secures Parity Lien Obligations (but does not secure Priority Lien Obligations) may be
amended or supplemented, or entered into, to the extent that such amendment or supplement, or the terms of any such new Security Document, would not be permitted under the terms of this Agreement or
the other Priority Lien Documents. The Parity Lien Secured Parties agree that each Security Document that secures Parity Lien Obligations (but not also securing Priority Lien Obligations) will include
the following language: 

        "Notwithstanding
anything herein to the contrary, the lien and security interest granted to the Collateral Trustee pursuant to this Agreement and the exercise of any right or remedy by
such Collateral Trustee hereunder are subject to the provisions of the Collateral Trust Agreement, dated as of April 27, 2004, among Midwest Generation, LLC, the Pledgors from time to time
party thereto, Citicorp North America, Inc., as Administrative Agent under the Credit Agreement (as defined therein), The Bank of New York, as Trustee under the Indenture (as defined therein)
and Wilmington Trust Company, as Collateral Trustee (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time, the "Collateral Trust
Agreement"). In the event of any conflict between the terms of the Collateral Trust Agreement and this Agreement, the terms of the Collateral Trust Agreement will govern." 

;
provided, however, that if the jurisdiction in which any such Parity Lien Document will be filed prohibits the inclusion of the language above or
would prevent a document containing such language from being recorded, the Parity Debt Representatives and the Priority Debt Representatives agree, prior to such Parity Lien Document being entered
into, to negotiate in good faith replacement language stating that the lien and security interest granted under such Parity Lien Document is subject to the provisions of this Agreement. 

        SECTION
7.2    Voting.    

        In
connection with any matter under this Agreement requiring a vote of holders of the Secured Debt, each Series of Secured Debt will cast its votes as a block in accordance with the
Secured Debt Documents governing such Series of Secured Debt. The amount of Secured Debt to be voted by a Series of Secured Debt will equal (1) the aggregate principal amount of Secured Debt
held by such Series of Secured Debt (including outstanding letters of credit whether or not then available or drawn), plus (2) other than in
connection with an exercise of remedies, the aggregate unfunded commitments to extend credit which, when funded, would constitute Indebtedness of such Series of Secured Debt. Following and in
accordance with the outcome of the applicable vote under its Secured Debt Documents, the Secured Debt Representative of each Series of Secured Debt will cast all of its votes as a block in respect of
any vote under this Agreement. 

        SECTION
7.3    Further Assurances.    

        (a)   The
Borrower and each of the other Obligors will do or cause to be done all acts and things that may be required, or that the Collateral Trustee from time to time may
reasonably request, to assure and confirm that the Collateral Trustee holds, for the benefit of the holders of Secured Obligations, duly created and enforceable and perfected Liens upon the
Collateral, including after-acquired Collateral and any property or assets that become Collateral pursuant to the definition thereof 

32

 

after
the date hereof, subject only to such exceptions as may be contemplated by the Secured Debt Documents. 

        (b)   Upon
the reasonable request of the Collateral Trustee or any Secured Debt Representative at any time and from time to time, the Borrower and each of the other Obligors
will promptly execute, acknowledge and deliver such security documents, instruments, certificates, notices and other documents, and take such other actions as may be reasonably required, or that the
Collateral Trustee may reasonably request, to create, perfect, protect, assure or enforce the Liens and benefits intended to be conferred, in each case as contemplated by the Secured Debt Documents. 

        (c)   The
Borrower and the Pledgors: 

        (1)   will
maintain or cause to be maintained with financially sound and reputable insurance companies (which in the case of any insurance on any mortgaged property, are
licensed to do business in the States where the applicable mortgaged property is located), insurance for such amounts against such risks, loss, damage and liability as are customarily insured against
by other companies in the same or similar businesses, subject to the availability of such coverage on commercially reasonable terms; 

        (2)   maintain
such other insurance as may be required by law; 

        (3)   maintain
title insurance in accordance with the requirements set forth in the Secured Debt Documents on all real property Collateral insuring the Collateral Trustee's
Lien on that property, subject only to liens ranking senior in priority that are permitted by each of the Secured Debt Documents and other exceptions to title approved by the Collateral Trustee;  provided that title insurance need only be maintained on any particular parcel of real property having a Fair Market Value of less than $1,000,000 if
and to the extent title insurance is maintained in respect of Priority Liens on that property; and 

        (4)   maintain
such other insurance as may be required by the Security Documents. 

        (d)   Upon
the request of the Collateral Trustee, the Borrower and the Obligors will furnish to the Collateral Trustee full information as to their property and liability
insurance carriers. 

        (e)   All
insurances policies required by Sections 7.3(c) (except for the insurance described in 7.3(c)(3)) above will: 

        (1)   provide
that, with respect to third party liability insurance, the Secured Parties shall be named as additional insureds; 

        (2)   name
the Collateral Trustee as a loss payee (other than with respect to policies maintained with respect to the Powerton Facility and the Joliet Leased Facility to the
extent required by the Powerton/Joliet Lease Documents); 

        (3)   provide
that (x) no cancellation or termination of such insurance and (y) no reduction in the limits of liability of such insurance shall be effective
until 30 days after written notice is given by the insurers to the Collateral Trustee of such cancellation, termination, reduction or change; 

        (4)   waive
all claims for insurance premiums or commissions or additional premiums or assessments against the Secured Parties; and 

        (5)   waive
any right of the insurers to setoff or counterclaim or to make any other deductions, whether by way of attachment or otherwise, as against the Secured Parties. 

        Notwithstanding
the provisions of the foregoing clauses (c), (d) and (e), with respect to the Collins Facility and any Non-Core Facility (as defined in the Credit
Agreement) that the Borrower has determined is economically or technologically obsolete or otherwise surplus to the Borrower's needs or 

33

 

no
longer useful in its trade or business, the Borrower shall not be required to maintain casualty or business interruption insurance. 

        (f)    Upon
the request of the Collateral Trustee, the Borrower and the other Obligors will permit the Collateral Trustee or any of its agents or representatives, at reasonable
times and intervals upon reasonable prior notice, to visit its offices and sites and inspect any of the Collateral and to discuss matters relating to the Collateral with their respective officers and
independent public accountants. The Borrower and the other Obligors shall, at any reasonable time and from time to time upon reasonable prior notice, permit the Collateral Trustee or any of its agents
or representatives to examine and make copies of and abstracts from the records and books of account of the Borrower and the other Obligors and their Subsidiaries;  provided that by virtue of this
Section 7.3 the Borrower and the other Obligors shall not be deemed to have waived any right to confidential
treatment of the information obtained, subject to the provisions of applicable law or court order; provided. further, that, with respect to EMMT, such
examination shall be reasonably related to the Collateral. 

        SECTION
7.4    Perfection of Junior Trust Estate.    Solely for purposes of perfecting the security interest of the
Collateral Trustee in its capacity as agent of the Parity Lien Secured Parties in any portion of the Junior Trust Estate consisting of any instruments, goods, negotiable documents, tangible chattel
paper or certificated securities in the possession of the Collateral Trustee as part of the Senior Trust Estate, the Priority Lien Secured Parties hereby acknowledge that the Collateral Trustee also
holds such instruments, goods, negotiable documents, tangible chattel paper and certificated securities as bailee for the benefit of the Collateral Trustee for the benefit of the Parity Lien Secured
Parties. 

        SECTION
7.5    Successors and Assigns.    

        (a)   Except
as provided in Section 5.2, the Collateral Trustee may not, in its capacity as such, delegate any of its duties or assign any of its rights hereunder, and
any attempted delegation or assignment of any such duties or rights will be null and void. All obligations of the Collateral Trustee hereunder will inure to the sole and exclusive benefit of, and be
enforceable by, each Secured Debt Representative and each present and future holder of Secured Obligations, each of whom will be entitled to enforce this Agreement as a third-party beneficiary hereof,
and all of their respective successors and assigns. 

        (b)   Neither
the Borrower nor any other Obligor may delegate any of its duties or assign any of its rights hereunder, and any attempted delegation or assignment of any such
duties or rights will be null and void. All obligations of the Borrower and the other Obligors hereunder will inure to the sole and exclusive benefit of, and be enforceable by, the Collateral Trustee,
each Secured Debt Representative and each present and future holder of Secured Obligations, each of whom will be entitled to enforce this Agreement as a third-party beneficiary hereof, and all of
their respective successors and assigns. 

        SECTION
7.6    Delay and Waiver.    No failure to exercise, no course of dealing with respect to the exercise of, and
no delay in exercising, any right, power or remedy arising under this Agreement or any of the other Security Documents will impair any such right, power or remedy or operate as a waiver thereof. No
single or partial exercise of any such right, power or remedy will preclude any other or future exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative
and are not exclusive of any remedies provided by law. 

34

 

        SECTION
7.7    Notices.    Any communications, including notices and instructions, between the parties hereto or
notices provided herein to be given may be given to the following addresses: 

	If to the Collateral Trustee:	 	Wilmington Trust Company

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890-1615

Attention: Corporate Trust Administration

Fax: (302) 636-4145
	

If to the Borrower or any other

Obligor (other than EMMT):	
 	

One Financial Place

440 South LaSalle Street, Suite 3500

Chicago, Illinois 60605

Attention: General Counsel

Fax: (312) 583-4998
	

 	
 	

and
	

 	
 	

18101 Von Karman Avenue, Suite 1700

Irvine, California 92612

Attention: General Counsel

Fax: (949) 752-5624
	

If to EMMT:	
 	

120 Federal Street

Boston, Massachusetts 02110-1776

Attention: General Counsel

Fax: (617) 912-6003
	

If to the Administrative Agent:	
 	

Citicorp North America, Inc.

2 Penns Way, Suite 110

New Castle, Delaware 19720

Attention: Elizabeth Wier

Fax: (302) 994-0961
	

If to the Trustee:	
 	

The Bank of New York

385 Rifle Camp Road

West Paterson, NJ 07424

Attention: Corporate Trust Department

Fax: (973) 357-7840

and
if to any other Secured Debt Representative, to such address as it may specify by written notice to the parties named above. 

        Each
notice hereunder will be in writing and may be personally served or sent by facsimile or United States mail or courier service and will be deemed to have been given when delivered
in Person or by courier service and signed for against receipt thereof, upon receipt of facsimile, or three business days after depositing it in the United States mail with postage prepaid and
properly addressed. Each party may change its address for notice hereunder to any other location within the continental United States by giving written notice thereof to the other parties as set forth
in this Section 7.7. 

        Promptly
following any Discharge of Priority Lien Obligation each Priority Debt Representative with respect to each applicable Series of Priority Lien Debt that is so discharged will
provide written notice of such discharge to the Collateral Trustee and to each other Secured Debt Representative. 

35

 

        SECTION
7.8    Entire Agreement.    This Agreement states the complete agreement of the parties relating to the
undertaking of the Collateral Trustee set forth herein and supersedes all oral negotiations and prior writings in respect of such undertaking. 

        SECTION
7.9    Compensation; Expenses.    The Obligors (other than EMMT) jointly and severally agree to pay, promptly
upon demand: 

        (1)   such
compensation to the Collateral Trustee and its agents, co-agents and sub-agents as the Borrower and the Collateral Trustee may agree in
writing from time to time; 

        (2)   all
reasonable costs and expenses incurred in the preparation, execution, delivery, filing, recordation, administration or enforcement of this Agreement or any other
Security Document or any consent, amendment, waiver or other modification relating thereto; 

        (3)   all
reasonable fees, expenses and disbursements of legal counsel and any auditors, accountants, consultants or appraisers or other professional advisors and agents
engaged by the Collateral Trustee or any Secured Debt Representative incurred in connection with the negotiation, preparation, closing, administration, performance or enforcement of this Agreement and
the other Security Documents or
any consent, amendment, waiver or other modification relating thereto and any other document or matter requested by the Borrower; 

        (4)   all
reasonable costs and expenses of creating, perfecting, releasing or enforcing the Collateral Trustee's security interests in the Collateral, including filing and
recording fees, expenses and taxes, stamp or documentary taxes, search fees, and title insurance premiums; 

        (5)   all
other reasonable costs and expenses incurred by the Collateral Trustee or any Secured Debt Representative in connection with the negotiation, preparation and
execution of the Security Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby or the exercise of rights or performance of
obligations by the Collateral Trustee thereunder; and 

        (6)   after
the occurrence of any Secured Debt Default, all costs and expenses incurred by the Collateral Trustee or any Secured Debt Representative in connection with the
preservation, collection, foreclosure or enforcement of the Collateral subject to the Security Documents or any interest, right, power or remedy of the Collateral Trustee or in connection with the
collection or enforcement of any of the Secured Obligations or the proof, protection, administration or resolution of any claim based upon the Secured Obligations in any Insolvency Proceeding,
including all fees and disbursements of attorneys, accountants, auditors, consultants, appraisers and other professionals engaged by the Collateral Trustee or the Secured Debt Representatives. 

        The
agreements in this Section 7.9 will survive repayment of all other Secured Obligations and the removal or resignation of the Collateral Trustee. 

        SECTION
7.10    Indemnity.    

        (a)   The
Obligors (other than EMMT) jointly and severally agree to defend, indemnify, pay and hold harmless the Collateral Trustee, each Secured Debt Representative, each
Secured Debtholder and each of their respective Affiliates and each and all of the directors, officers, partners, trustees, employees, attorneys and agents, and (in each case) their respective heirs,
representatives, successors and assigns (each of the foregoing, an "Indemnitee") from and against any and all Indemnified Liabilities;  provided, no
Indemnitee will be entitled to indemnification hereunder with respect to any Indemnified Liability to the extent such Indemnified Liability
is found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnitee. 

        (b)   All
amounts due under this Section 7.10 will be payable upon demand. 

36

 

        (c)   To
the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in Section 7.10(a) may be unenforceable in whole or in part because they
are violative of any law or public policy, each of the Obligors (other than EMMT) will contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. 

        (d)   No
Obligor will ever assert any claim against any Indemnitee, on any theory of liability, for any lost profits or special, indirect or consequential damages or (to the
fullest extent a claim for punitive damages may lawfully be waived) any punitive damages arising out of, in connection with, or as a result of, this Agreement or any other Secured Debt Document or any
agreement or instrument or transaction contemplated hereby or relating in any respect to any Indemnified Liability, and each of the Obligors hereby forever waives, releases and agrees not to sue upon
any claim for any such lost profits or special, indirect, consequential or (to the fullest extent lawful) punitive damages, whether or not accrued and whether or not known or suspected to exist in its
favor. 

        (e)   The
agreements in this Section 7.10 will survive repayment of all other Secured Obligations and the removal or resignation of the Collateral Trustee. 

        SECTION
7.11    Severability.    If any provision of this Agreement is invalid, illegal or unenforceable in any
respect or in any jurisdiction, the validity, legality and enforceability of such provision in all other respects and of all remaining provisions, and of such provision in all other jurisdictions,
will not in any way be affected or impaired thereby. 

        SECTION
7.12    Headings.    Section headings herein have been inserted for convenience of reference only, are not to
be considered a part of this Agreement and will in no way modify or restrict any of the terms or provisions hereof. 

        SECTION
7.13    Obligations Secured.    All obligations of the Obligors set forth in or arising under this Agreement
will be Secured Obligations and are secured by all Liens granted by the Security Documents. 

        SECTION
7.14    Governing Law.    This Agreement shall be governed by the internal laws of the State of New York
without regard to choice of law rules (other than Section 5-1401 of the New York General Obligations Law). 

        SECTION
7.15    Consent to Jurisdiction.    All judicial proceedings brought against any party hereto arising out of
or relating to this Agreement or any of the other Security Documents may be brought in any state or federal court of competent jurisdiction in the State, County and City of New York. By executing and
delivering this Agreement, each Obligor, for itself and in connection with its properties, irrevocably: 

        (1)   accepts
generally and unconditionally the nonexclusive jurisdiction and venue of such courts; 

        (2)   waives
any defense of forum non conveniens; 

        (3)   agrees
that service of all process in any such proceeding in any such court may be made by registered or certified mail, return receipt requested, to such party at its
address provided in accordance with Section 7.7; 

        (4)   agrees
that service as provided in clause (3) above is sufficient to confer personal jurisdiction over such party in any such proceeding in any such court and
otherwise constitutes effective and binding service in every respect; and 

        (5)   agrees
each party hereto retains the right to serve process in any other manner permitted by law or to bring proceedings against any party in the courts of any other
jurisdiction. 

37

   
        SECTION 7.16    Waiver of Jury Trial.    Each party to this Agreement waives its rights to a jury trial of any
claim
or cause of action based upon or arising under this Agreement or any of the other Security Documents or any dealings between them relating to the subject matter of this Agreement or the intents and
purposes of the other Security Documents. The scope of this waiver is intended to be all-encompassing of any and all disputes that may be filed in any court and that relate to the subject
matter of this Agreement and the other Security Documents, including contract claims, tort claims, breach of duty claims and all other common law and statutory claims. Each party to this Agreement
acknowledges that this waiver is a material inducement to enter into a business relationship, that each party hereto has already relied on this waiver in entering into this Agreement, and that each
party hereto will continue to rely on this waiver in its related future dealings. Each party hereto further warrants and represents that it has reviewed this waiver with its legal counsel and that it
knowingly and voluntarily waives its jury trial rights following consultation with legal counsel. This waiver is irrevocable, meaning that it may not be modified either orally or in writing (other
than by a mutual written waiver specifically referring to this Section 7.16 and executed by each of the parties hereto), and this waiver will apply to any subsequent amendments, renewals,
supplements or modifications of or to this Agreement or any of the other Security Documents or to any other documents or agreements relating thereto. In the event of litigation, this Agreement may be
filed as a written consent to a trial by the court. 

        SECTION
7.17    Counterparts.    This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered will be deemed an original, but all such counterparts together will constitute but one and the same instrument. 

        SECTION
7.18    Effectiveness.    This Agreement will become effective upon the execution of a counterpart hereof by
each of the parties hereto and receipt by each party of written notification of such execution and written or telephonic authorization of delivery thereof. 

        SECTION
7.19    Additional Obligors.    The Borrower will cause each of its Subsidiaries that becomes an Obligor or is
required by any Secured Debt Document to become a party to this Agreement to become a party to this Agreement, for all purposes of this Agreement, by causing such Subsidiary to execute and deliver to
the parties hereto a Collateral Trust Joinder, whereupon such Subsidiary will be bound by the terms hereof to the same extent as if it had executed and delivered this Agreement as of the date hereof.
The Borrower agrees to provide each Secured Debt Representative with a copy of each Collateral Trust Joinder executed and delivered pursuant to this Section. 

        SECTION
7.20    Continuing Nature of this Agreement.    This Agreement, including the subordination provisions hereof,
will be reinstated if at any time any payment or distribution in respect of any of the Priority Lien Obligations is rescinded or must otherwise be returned in an Insolvency Proceeding or otherwise by
any of the Priority Lien Secured Parties or any representative of any such party (whether by demand, settlement, litigation or otherwise). In the event that all or any part of a payment or
distribution made with respect to the Priority Lien Obligations is recovered from any of the Priority Lien Secured Parties in an Insolvency Proceeding or otherwise (and whether by demand, settlement,
litigation or otherwise), any payment or distribution received by any of the Parity Lien Secured Parties with respect to the Parity Lien Obligations from the proceeds of any Collateral or any title
insurance policy required by any real property mortgage at any time after the date of the payment or distribution that is so recovered, whether pursuant to a right of subrogation or otherwise, will be
deemed to have been received by the Parity Lien Secured Parties in trust as property for the Priority Lien Secured Parties and the Parity Lien Secured Parties will forthwith deliver such payment or
distribution to the Collateral Trustee, for the benefit of the Priority Lien Secured Parties, for application to the Priority Lien Obligations until such Priority Lien Obligations have been paid in
full in cash and all commitments in respect of Priority Lien Obligations have been terminated. 

38

 

        SECTION
7.21    Insolvency.    This Agreement will be applicable both before and after the commencement of any
Insolvency Proceeding by or against any Obligor. The relative rights, as provided for in this Agreement, will continue after the commencement of any such Insolvency Proceeding on the same basis as
prior to the date of the commencement of any such case, as provided in this Agreement. 

        SECTION
7.22    Rights and Immunities of Secured Debt Representatives.    The Administrative Agent will be entitled to
all of the rights, protections, immunities and indemnities set forth in the Credit Agreement, the Trustee will be entitled to all of the rights, protections, immunities and indemnities set forth in
the Indenture and any future Secured Debt Representative will be entitled to all of the rights, protections, immunities and indemnities set forth in the credit agreement, indenture or other agreement
governing the applicable Secured Debt with respect to which such Person will act as representative, in each case as if specifically set forth herein. In no event will any Secured Debt Representative
be liable for any act or omission on the part of the Obligors or the Collateral Trustee hereunder. 

        SECTION
7.23    Holdings Intercreditor Agreement.    (a) This Agreement amends and restates, and replaces, the
Intercreditor Agreement (as such term is defined in Appendix A to each Powerton/Joliet Participation Agreement) and each direct or indirect reference to the "Intercreditor Agreement" or the
"Holdings Intercreditor Agreement" in each of the Powerton/Joliet Lease Documents shall be construed as a reference to this Agreement. As further agreed in Section 7.23(c) below, each
Collateral Trustee hereunder is the successor to, and has replaced, the Holdings Collateral Agent (as defined in Appendix A to each Powerton/Joliet Participation Agreement) and each direct or
indirect reference to the "Holdings Collateral Agent" in each of the Powerton/Joliet Lease Documents (including the Subordination Agreement (as so defined) and each Reimbursement Agreement (as so
defined)) shall be construed as a reference to the Collateral Trustee. The Secured Debt is Specified Midwest Indebtedness (as defined in Appendix A to each Powerton/Joliet Participation
Agreement) and each direct or indirect reference to "Specified Midwest Indebtedness" in each of the Powerton/Joliet Lease
Documents (including the Subordination Agreement (as so defined) and each Reimbursement Agreement (as so defined)) shall be construed as a reference to Secured Debt. The Secured Debt Documents
constitute Lessee Financing Documents (as defined in Appendix A to each Powerton/Joliet Participation Agreement). 

        (b)   In
furtherance of the foregoing and in accordance with the definitions and the rules of construction set forth in each Powerton/Joliet Participation Agreement and solely
for use of reference herein, the parties hereto stipulate that: 

        "Intercreditor
Agreement Event of Default" is a reference to an event of default under any Priority Lien Document or any event of default under any Parity Lien Document. 

        "Permitted
Secured Indebtedness" is a reference to Secured Debt. 

        "Permitted
Secured Indebtedness Documents" is a reference to each credit agreement, loan agreement, indenture and other agreement, document or instrument delivered in connection with any
Permitted Secured Indebtedness. 

        (c)   The
parties to this Agreement further agree for reference purposes that after giving effect to the refinancing contemplated by the Credit Agreement and the Indenture,
"Free Cash flow" will refer to the sum of (a) payments made by Edison Mission Energy ("EME") under or in respect of (to the extent permitted to be retained by Midwest under the Pledge
Agreements) the Powerton/Joliet Lease Intercompany Notes during such period to the extent not distributed by Midwest directly or indirectly to EME during such period  plus (b) the excess, if any, of
(i) Cashflow Available for Fixed Charges for such period over (ii) Fixed Charges for such period
(such excess "Base Free Cashflow"), minus (c) Designated Lease Liabilities and Combined Leveraged Lease Liabilities paid by Midwest during such
period; provided that Base Free Cashflow is deemed to be zero in the event that any of the 

39

 

following
conditions has not been satisfied: (i) no Default or Event of Default (including any payment default) shall have occurred and be continuing (as defined in the Credit Agreement); and
(ii) (A) the Debt Service Coverage Ratio for the 12-month period ended on the last day of the immediately preceding Fiscal Quarter, (B) the projected Debt Service
Coverage Ratio for the 12-month period commencing on the first day of the then current Fiscal Quarter and (C) the projected Debt Service Coverage Ratio for the 12-month
period commencing on the first anniversary of the first day of the then current Fiscal Quarter, in each case shall be no less than 1.75 to 1.00. All terms for the purposes of this definition Free Cash
Flow not otherwise defined in this Agreement have the meanings assigned thereto in the Powerton/Joliet Lease Documents. 

        (d)   The
Secured Parties hereby agree and (i) the Collateral Trustee for the Priority Lien Secured Parties hereby confirms that, effective on the effective date of
this Agreement in accordance with Section 7.18, it has succeeded to (and expressly accepts) the rights, powers and duties of the Holdings Collateral Agent under each Subordination Agreement (as
so defined) and the Reimbursement Agreement (as so defined) and (ii) the Collateral Trustee for the Parity Lien Secured Parties hereby agrees that, effective on the date of the Discharge of
Priority Lien Obligations, it will automatically succeed to (and expressly accept), without any further notice or action, the rights, powers and duties of the Holdings Collateral Agent under each
Subordination Agreement (as so defined) and the Reimbursement Agreement (as so defined). 

        (e)   Nothing
in this Section 7.23 shall be construed to imply that the Collateral Trustee has any duties or obligations with respect to the Secured Parties and the
Collateral other than as expressly set forth herein and in the other Security Documents. 

        SECTION
7.24    Restrictions on Activities of EMMH.    EMMH will not: 

        (1)   hold
any material assets, other than assets held as of the date hereof; 

        (2)   become
liable for any material obligations, other than liabilities existing as of the date hereof; or 

        (3)   engage
in any significant business activities. 

40

  

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

	

 	
 	

MIDWEST GENERATION, LLC
	

 	
 	

By:	

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

Title: Vice President
	

 	
 	

CITICORP NORTH AMERICA, INC.,

as Administrative Agent
	

 	
 	

By:	

/s/  DALE R. GONCHER      
 Name: Dale R. Goncher

Title: Director
	

 	
 	

THE BANK OF NEW YORK, as Trustee under the Indenture
	

 	
 	

By:	

/s/  CHRISTOPHER J. GRELL      
 Name: Christopher J. Grell

Title: Director
	

 	
 	

WILMINGTON TRUST COMPANY, as Collateral Trustee
	

 	
 	

By:	

/s/  JAMES J. MCGINLEY      
 Name: James J. McGinley

Title: Authorized Signer
	

 	
 	

EDISON MISSION MIDWEST HOLDINGS CO.
	

 	
 	

By:	

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

Title: Vice President
	

 	
 	

MIDWEST GENERATION EME, LLC
	

 	
 	

By:	

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

Title: Vice President
	

 	
 	

EDISON MISSION MARKETING & TRADING, INC.
	

 	
 	

By:	

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

Title: Vice President

S-1

EXHIBIT A

to Collateral Trust Agreement  

 
 

[FORM OF]
  COLLATERAL TRUST JOINDER    
    

        The undersigned,                        ,
a                        , hereby agrees to become party as [an Obligor] [a Parity Debt
Representative] [a Priority Debt Representative] under the Collateral Trust Agreement dated as of April 27, 2004 among Midwest Generation, LLC, the Pledgors
from time to time party thereto, Citicorp North America, Inc., as Administrative Agent under the Credit Agreement (as defined therein), The Bank of New York, as Trustee under the Indenture (as
defined therein) and Wilmington Trust Company, as Collateral Trustee, as amended, supplemented, amended and restated or otherwise modified and in effect from time to
time, for all purposes thereof on the terms set forth therein, and to be bound by the terms of said Collateral Trust Agreement as fully as if the undersigned had executed and delivered said Collateral
Trust Agreement as of the date thereof. 

        The
provisions of Article 7 of said Collateral Trust Agreement will apply with like effect to this Joinder. 

        IN
WITNESS WHEREOF, the undersigned has executed and delivered this Joinder as of                        ,
20            . 

	

 	
 	

[                                         
               ]
	

 	
 	

By:	

 Name:

Title:

QuickLinks

COLLATERAL TRUST AGREEMENT

TABLE OF CONTENTS

[FORM OF] COLLATERAL TRUST JOINDERQuickLinks
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Exhibit 4.5  

EXECUTION COUNTERPART  

 

 
 

SECURITY AGREEMENT    
    
    between    
    
    MIDWEST GENERATION, LLC    
    
    and    
    
    WILMINGTON TRUST COMPANY,
  as Collateral Trustee    
    
    Dated as of April 27, 2004    

 

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	 
	 	Page

	SECTION 1.	 	DEFINITIONS	 	1
	SECTION 2.	 	REPRESENTATIONS AND WARRANTIES	 	5
	SECTION 3.	 	THE PLEDGE	 	5
	SECTION 4.	 	CASH PROCEEDS OF COLLATERAL	 	8
	 	 	4.01	 	COLLATERAL ACCOUNT	 	8
	 	 	4.02	 	INVESTMENT OF BALANCE IN COLLATERAL ACCOUNT	 	9
	SECTION 5.	 	FURTHER ASSURANCES; REMEDIES	 	9
	 	 	5.01	 	DELIVERY AND OTHER PERFECTION	 	9
	 	 	5.02	 	OTHER FINANCING STATEMENTS AND LIENS	 	10
	 	 	5.03	 	SPECIAL PROVISIONS RELATING TO THE PLEDGED COLLATERAL	 	11
	 	 	5.04	 	COLLATERAL TRUST AGREEMENT ACTIONABLE DEFAULT, ETC.	 	12
	 	 	5.05	 	DEFICIENCY	 	13
	 	 	5.06	 	REMOVALS, ETC.	 	13
	 	 	5.07	 	PRIVATE SALE	 	13
	 	 	5.08	 	APPLICATION OF PROCEEDS	 	13
	 	 	5.09	 	ATTORNEY-IN-FACT	 	14
	 	 	5.10	 	PERFECTION	 	14
	 	 	5.11	 	TERMINATION	 	14
	 	 	5.12	 	FURTHER ASSURANCES	 	14
	 	 	5.13	 	RELEASE OF MOTOR VEHICLES	 	14
	 	 	5.14	 	RELEASE	 	14
	SECTION 6.	 	MISCELLANEOUS	 	15
	 	 	6.01	 	NOTICES	 	15
	 	 	6.02	 	DELAY AND WAIVER	 	15
	 	 	6.03	 	AMENDMENTS, ETC.	 	15
	 	 	6.04	 	COLLATERAL TRUST AGREEMENT CONTROLS	 	15
	 	 	6.05	 	SUCCESSORS AND ASSIGNS	 	15
	 	 	6.06	 	COUNTERPARTS	 	15
	 	 	6.07	 	GOVERNING LAW; SUBMISSION TO JURISDICTION	 	15
	 	 	6.08	 	HEADINGS	 	15
	 	 	6.09	 	AGENTS AND ATTORNEYS-IN-FACT	 	15
	 	 	6.10	 	SEVERABILITY	 	15

 
 

SECURITY AGREEMENT    
    

        SECURITY AGREEMENT (this "Agreement") dated as of April 27, 2004 between MIDWEST GENERATION, LLC, a limited
liability company organized under the laws of Delaware (the "Obligor"), and WILMINGTON TRUST COMPANY, a banking corporation organized under the laws of
Delaware, as Collateral Trustee for the Secured Parties under the Collateral Trust Agreement referred to below (in such capacity, together with its successors in such capacity, the
"Collateral Trustee"). 

        The
Obligor, the Pledgors from time to time party thereto, CITICORP NORTH AMERICA, INC., as Administrative Agent (as defined therein), The Bank of New York, as Trustee (as defined
therein), and the Collateral Trustee have entered into that certain Collateral Trust Agreement (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time,
the "Collateral Trust Agreement") dated as of April 27, 2004. This Agreement is one of the Security Documents referred to in the Collateral Trust
Agreement. 

        The
Obligor has, subject to the terms and conditions of this Agreement, agreed to grant a Lien and security interest in the Pledged Collateral referred to herein. 

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

        SECTION 1.    DEFINITIONS.    Capitalized terms not otherwise defined
herein shall have the meanings set forth in the Collateral Trust Agreement and the rules of interpretation set forth in Section 1.2 of the Collateral Trust Agreement shall apply  mutatis mutandis to
this Agreement as if set forth in full herein. In addition, as used herein: 

        "Accounts" has the meaning set forth in Section 3(a)(vi). 

        "Bloom Peaking Unit" means the gas and oil-fired Bloom peaking unit and related assets owned by the Obligor and located in
Cook County, Illinois. 

        "Collateral Account" has the meaning set forth in Section 4.01. 

        "Copyrights" means all copyrights, copyright registrations and applications for copyright registrations, including all renewals and
extensions thereof, the right to recover for all past, present and future infringements thereof, and all other rights of any kind whatsoever accruing thereunder or pertaining thereto. 

        "Documents" has the meaning set forth in Section 3(a)(xii). 

        "EME" means Edison Mission Energy, a Delaware corporation. 

        "Equipment" has the meaning set forth in Section 3(a)(x). 

        "Excluded Assets" means: 

        (a)   Excluded
Contracts; 

        (b)   any
lease, license, contract, property right or agreement to which the Obligor is a party or any of the Obligor's rights or interests thereunder if and only for so long
as the grant of a security interest under this Agreement shall constitute or result in a breach, termination, default or invalidity under any such lease, license, contract, property right or agreement
(other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC of any
relevant jurisdiction or any other applicable law or principles of equity); provided, that such lease, license, contract, property right or agreement
shall be an Excluded Asset only to the extent and for so long as the consequences specified above shall result and shall cease to be an Excluded Asset and the security interest granted under this
Agreement shall attach, immediately and automatically, at such time as such consequences shall no longer result; 

 

        (c)   any
interest in personal property located on any real property of the Obligor that is a Non-Mortgaged Facility; 

        (d)   any
account (and all amounts that are held therein) if and only for so long as such account and the amounts therein (i) constitute accounts with or on behalf of
futures contract brokers or (ii) are pledged or deposited as collateral to a contract counterparty or issuer of surety bonds by the Obligor, in the case of clause (i) or (ii), to secure
obligations with respect to (A) Permitted Trading Activities or (B) interest rate, commodity price or currency rate management contracts or derivatives; 

        (e)   Equipment
which is subject to existing leases as listed on Schedule 3(a)(x); 

        (f)    Account
number [    ] established at Citibank, N.A. (and any replacement or successor account); 

        (g)   emissions
allowances and credits; and 

        (h)   any
equity interests in, and all properties and assets of, Midwest Finance Corp. 

        "Excluded Contracts" means (a) each Operative Document (other than the Reimbursement Agreement (as defined in each of the
Powerton/Joliet Participation Agreements)), as defined in each of the Powerton/Joliet Participation Agreements, (b) any tax allocation agreement to which the Obligor is a party on the date
hereof and as may be amended, supplemented, amended and restated or otherwise modified and in effect from time to time. 

        "Governmental Approval" means any authorization, consent, approval, license, permit, exemption, filing or registration with any
Governmental Authority. 

        "Governmental Authority" means any nation or government, any state, provincial or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

        "Instruments" has the meaning set forth in Section 3(a)(vii). 

        "Intellectual Property" means, collectively, all Copyrights, Patents and Trademarks of the Obligor, together with (a) all
inventions, processes, production methods, proprietary information, know-how and trade secrets, (b) all licenses or user or other agreements granted to the Obligor with respect to
any of the foregoing, in each case whether now or hereafter owned or used including the licenses or other agreements with respect to any Copyrights, Patents or Trademarks, (c) all information,
customer lists, identification of suppliers, data, plans, blueprints, specifications, designs, drawings, recorded knowledge, surveys, engineering reports, test reports, manuals, materials standards,
processing standards, performance standards, catalogs, computer and automatic machinery software and programs, (d) all field repair data, sales data and other information relating to sales or
service of products now or hereafter manufactured, (e) all accounting information and all media in which or on which any information or knowledge or data or records may be recorded or stored
and all computer programs used for the compilation or printout of such information, knowledge, records or data and (f) all causes of action, claims and warranties now or hereafter owned or
acquired by the Obligor in respect of any of the items listed above. 

        "Interconnection Agreements" means each of the facilities, interconnection and easement agreements dated as of December 15, 1999
between the Obligor and Commonwealth Edison Company, an Illinois corporation ("ComEd"), providing for the interconnection of the Obligor's generation
facilities with the ComEd transmission and distribution system (other 

2

 

than
Interconnection Agreements relating to the Powerton Facility and the Joliet Leased Facility). 

        "Inventory" has the meaning set forth in Section 3(a)(viii). 

        "Joliet Lease Intercompany Note (T1)" means the promissory note dated as of August 24, 2000 in the stated principal amount of
$369,961,200 evidencing the loans from the Obligor to EME. 

        "Joliet Lease Intercompany Note (T2)" means the promissory note dated as of August 24, 2000 in the stated principal amount of
$211,728,800 evidencing the loans from the Obligor to EME. 

        "Midwest Trading Revolver" means the Amended and Restated Revolving Credit Agreement dated as of April 27, 2004 between the Obligor
and Edison Mission Marketing & Trading, Inc., as amended, supplemented, amended and restated or otherwise modified and in effect from time to time. 

        "Motor Vehicles" means motor vehicles, tractors, trailers and other like property, whether or not the title thereto is governed by a
certificate of title or ownership. 

        "Non-Mortgaged Facility" means each of (a) the Collins Facility, (b) the Powerton Facility, (c) the
Joliet Leased Facility, (d) the Bloom Peaking Unit and (e) Sampson's Canal. 

        "Patents" means all patents and patent applications, including the inventions and improvements described and claimed therein together with
the reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof, all income, royalties, damages and payments now or hereafter due and/or payable
under and with respect thereto, including damages and payments for past or future infringements thereof, the right to sue for past, present and future infringements thereof, and all rights
corresponding thereto throughout the world. 

        "Permitted Investments" means any of the following: 

        (a)   Marketable
securities issued by the U.S. Government and supported by the full faith and credit of the U.S. Treasury, either by statute or an opinion of the Attorney
General of the United States, maturing not more 365 days from the date of acquisition. 

        (b)   Marketable
debt securities, rated Aaa by Moody's and/ or AAA by S&P, issued by U.S. Government-sponsored enterprises,
U.S. Federal agencies, U.S. Federal financing banks, and international institutions whose capital stock
has been subscribed for by the United States, maturing not more than 365 days from the date of acquisition. 

        (c)   Certificates
of deposit, time deposits, and bankers acceptances maturing not more than 365 days from the origination date, of any bank or trust company
incorporated under the laws of the United States or any state, provided that, at the date of acquisition, such investment, and/or the commercial paper or other short term debt obligation of such bank
or trust company has a short-term credit rating or ratings from Moody's and/or S&P, of at least P-1 or A-1. 

        (d)   Commercial
paper of any corporation incorporated under the laws of the United States or any state thereof, maturing not more than 270 days from origination, which
on the date of acquisition is rated by Moody's and/or S&P, provided each such credit rating is least P-1 and/or A-1, and further provided that, on the date of acquisition of
such commercial paper, if the senior long-term debt of the obligor with respect to such commercial paper is rated, one or more of such ratings must be at least Aa3 (Moody's) or
AA- (S&P). 

3

 

        (e)   Money
market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, and operated in
accordance with Rule 2a-7 of such act and that at the time of such investment are rated Aaa by Moody's and/or AAA by S&P. 

        (f)    Bonds
or other obligations maturing within 365 days from acquisition, issued by, or by authority of, any state of the United States, any territory or possession
of the United States, including the Commonwealth of Puerto Rico and agencies thereof, or any political subdivision of any of the foregoing. At acquisition, eligible securities must have a short or
long term debt rating or ratings from Moody's and/or S&P. Each such short term rating must be at least MIG 1, P1, A1 or SP1. If rated as long-term securities, one or more of such ratings
must be at least Aa3 (Moody's) or AA- (S&P). 

        (g)   Repurchase
obligations with a term of not more than thirty days, 102% collateralized, for underlying securities of the types described in clauses (a) and
(b) above, entered into with any bank or trust company meeting the requirements specified in clause (c) above. 

        "Permitted Liens" means the liens permitted under Section 7.2.2 of the Credit Agreement and Section 4.12 of the Indenture. 

        "Permitted Trading Activities" means (a) the daily or forward purchase and/or sale, or other acquisition or disposition, of
wholesale or retail electric energy, capacity, ancillary services, transmission rights, emissions allowances, weather derivatives and/or related commodities, in each case, whether physical or
financial, (b) the daily or forward purchase and/or sale, or other acquisition or disposition, of fuel, mineral rights and/or related commodities, including swaps, options and swaptions, in
each case, whether physical or financial, (c) electric energy-related tolling transactions, as seller of tolling services, (d) price risk management activities or services,
(e) other similar electric industry activities or services, or (f) additional services as may be consistent with industry practice from time to time to support the marketing and trading
related to the Obligor's owned or leased power generating facilities, in each case, in the ordinary course of business from time to time. 

        "Pledged Collateral" has the meaning set forth in Section 3(a). 

        "Powerton Lease Intercompany Note (T1)" means the promissory note dated as of August 24, 2000 in the stated principal amount of
$499,450,800 evidencing the loans from the Obligor to EME. 

        "Powerton Lease Intercompany Note (T2)" means the promissory note dated as of August 24, 2000 in the stated principal amount of
$285,849,200 evidencing the loans from the Obligor to EME. 

        "Powerton/Joliet Lease Intercompany Notes" means, collectively, the Joliet Lease Intercompany Note (T1), the Joliet Lease Intercompany
Note (T2), the Powerton Lease Intercompany Note (T1) and the Powerton Lease Intercompany Note (T2). 

        "Powerton/Joliet Participation Agreements" means the Participation Agreement dated as of August 17, 2000 by and among the Obligor,
EME, Joliet Trust I, Wilmington Trust Company, Joliet Generation I, the Lease Indenture Trustee named therein and the Pass Through Trustees named therein, the Participation Agreement dated as of
August 17, 2000 by and among the Obligor, EME, Joliet Trust II, Wilmington Trust Company, Joliet Generation II, the Lease Indenture Trustee named therein and the Pass Through Trustees named
therein, the Participation Agreement dated as of August 17, 2000 by and among the Obligor, EME, Powerton Trust I, Wilmington Trust Company, Powerton Generation I, the Lease Indenture 

4

 

Trustee
named therein and the Pass Through Trustees named therein and the Participation Agreement (T2) dated as of August 17, 2000 by and among the Obligor, EME, Powerton Trust II, Wilmington
Trust Company, Powerton Generation II, the Lease Indenture Trustee named therein and the Pass Through Trustees named therein, in each case, as amended, supplemented, amended and restated or otherwise
modified and in effect from time to time. 

        "Project Contracts" means any contract or agreement entered into by the Obligor or any of its Subsidiaries in the ordinary course of its
business relating to the financing, risk management, construction, acquisition, ownership, leasing, occupation, operation, maintenance or use of, or relating to, the Obligor's or its Subsidiaries'
power generation facilities (including the purchase, sale and transport of fuel and the sale of power, capacity or other products or services generated or otherwise provided by the Obligor's power
generating facilities). 

        "Sampson's Canal" means a vacant parcel of land located in Cook County, Illinois referred to from time to time as "Sampson's Canal" in the
Indenture and that certain Confidential Offering Circular dated as of April 27, 2004 describing the 8.75% Second Priority Senior Secured Notes issued by the Obligor in an aggregate principal
amount of $1,000,000,000. 

        "Stock Collateral" has the meaning set forth in Section 3(a)(xvi). 

        "Trademarks" means all trade names, trademarks and service marks, logos, trademark and service mark registrations, and applications for
trademark and service mark registrations, including all renewals of trademark and service mark registrations, all rights corresponding thereto throughout the world, the right to recover for all past,
present and future infringements thereof, all other rights of any kind whatsoever accruing thereunder or pertaining thereto, together, in each case, with the product lines and
goodwill of the business connected with the use of, and symbolized by, each such trade name, trademark and service mark. 

        SECTION 2.    REPRESENTATIONS AND WARRANTIES.    The Obligor
represents and warrants to the Collateral Trustee and the other Secured Parties that as of the date hereof: 

        (a)   The
Obligor is the sole beneficial owner of the Pledged Collateral in which it purports to grant security interests pursuant to  Section 3 and no Lien exists upon such Pledged Collateral, except for
(i) Permitted Liens and (ii) the pledges and security
interests in favor of the Collateral Trustee for the benefit of the Secured Parties created or provided for herein, which pledges and security interests constitute first priority and second priority
perfected pledges and security interests in and to all of such Pledged Collateral as provided in Section 3. 

        (b)   The
Obligor owns and possesses the right to use, and has done nothing to authorize or enable any other Person to use, any Copyright, Patent or Trademark and all
registrations relating to such Copyrights, Patents and Trademarks are valid and in full force and effect. 

        (c)   To
the Obligor's knowledge, there is no violation by others of any right of the Obligor with respect to any Copyright, Patent or Trademark under the name of the Obligor
and the Obligor is not infringing in any respect upon any Copyright, Patent or Trademark of any other Person; and no proceedings have been instituted or are pending against the Obligor or, to the
Obligor's knowledge, threatened, and no claim against the Obligor has been received by the Obligor, alleging any such violation. 

        SECTION 3.    THE PLEDGE.    

        (a)   The
Obligor hereby (x) assigns and transfers to the Collateral Trustee, and hereby grants to the Collateral Trustee, for the ratable benefit of the Priority Lien
Secured Parties a lien on and a first priority security interest in all of the personal property of the Obligor, including the 

5

 

following
property, in each case, wherever located and now owned or hereafter acquired by the Obligor or in which the Obligor now has or at any time in the future may acquire any right, title or
interest (collectively, the "Pledged Collateral"), as collateral security for the prompt and complete payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of the Priority Lien Obligations and (y) assigns and transfers to the Collateral Trustee, and hereby grants to the Collateral Trustee, for the
ratable benefit of the Parity Lien Secured Parties a lien on and a second priority security interest in all of the Pledged Collateral, as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of the Parity Lien Obligations: 

        (i)    all
promissory notes now held or hereafter acquired by the Obligor (including the Powerton/Joliet Lease Intercompany Notes); 

        (ii)   all
Governmental Approvals now or hereafter held in the name, or for the benefit, of the Obligor (provided that any
Governmental Approval which by its terms or by operation of law would become void, voidable, terminable, or revocable if mortgaged, pledged or assigned hereunder or if a security interest therein was
granted hereunder is expressly excepted and excluded from the Lien and terms of this Agreement to the extent necessary so as to avoid such voidness, avoidability, terminability or revocability); 

        (iii)  all
agreements and contracts, in each case, between the Obligor and any other Person (as amended, supplemented, amended and restated or otherwise modified and in
effect from time to time), including the following agreements and contracts: 

        (A)  all
Project Contracts; 

        (B)  the
Interconnection Agreements; and 

        (C)  each
and every bond, indemnity, warranty guaranty and other similar document relating to the performance by any party (other than the Obligor) of any of the foregoing; 

each
such agreement, contract and document being, individually, an "Assigned Agreement", and, collectively, the "Assigned
Agreements"), including: (I) all rights of the Obligor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (II) all rights of
the Obligor to receive proceeds of any insurance, bond, indemnity, warranty or guaranty with respect to the Assigned Agreements, (III) all claims of the Obligor for damages arising out of or
for breach of or default under the Assigned Agreements and (IV) all rights of the Obligor to terminate, amend, supplement, modify or waive performance under the Assigned Agreements, to perform
thereunder and to compel performance and otherwise to exercise all remedies thereunder; 

        (iv)  all
deposit accounts and all securities accounts (including the Collateral Account) and all amounts, Permitted Investments and other property (including securities,
financial assets, investment property, security entitlements and instruments, as applicable) at any time deposited in or credited thereto and all security entitlements with respect thereto; 

        (v)   all
proceeds of casualty insurance policies; 

        (vi)  all
general intangibles (including payment intangibles and software) and accounts of the Obligor constituting any right to the payment of money, including all moneys
due and to become due to the Obligor in respect of any loans or advances or for Inventory or Equipment or other goods sold or leased or for services rendered, all moneys due and to become due to the
Obligor under any guarantee (including a letter of credit) of the purchase price of Inventory or Equipment sold by the Obligor and all tax refunds (such accounts, general intangibles and moneys due
and to become due being herein, collectively, called "Accounts"); 

6

 

        (vii) all
instruments, chattel paper (whether tangible or electronic) or letters of credit (of which the Obligor is a beneficiary) of the Obligor evidencing, representing,
arising from or existing in respect of, relating to, securing or otherwise supporting the payment of, any of the Accounts, including promissory notes, drafts, bills of exchange and trade acceptances
(herein, collectively, called "Instruments"); 

        (viii) all
inventory of the Obligor, including fuel, spare parts, all goods obtained by the Obligor in exchange for such inventory, and any products made or processed from
such inventory including all substances, if any, commingled therewith or added thereto, spare parts and Motor Vehicles held by the Obligor for lease (including lease to Subsidiaries of the Obligor)
(herein, collectively, called "Inventory"); 

        (ix)  all
Intellectual Property and all other accounts, chattel paper, letter of credit rights, instruments or general intangibles of the Obligor not constituting
Intellectual Property or Accounts; 

        (x)   all
equipment of the Obligor, including all Motor Vehicles (herein, collectively, called "Equipment"); 

        (xi)  all
contracts and other agreements of the Obligor relating to the sale or other disposition of Inventory or Equipment; 

        (xii) all
documents of title, bills of lading, warehouse receipts or other receipts of the Obligor, including documents covering, evidencing or representing Inventory or
Equipment (herein, collectively, called "Documents"); 

        (xiii) all
rights, claims and benefits of the Obligor against any Person arising out of, relating to or in connection with Inventory or Equipment purchased by the Obligor,
including any such rights, claims or benefits against any Person storing or transporting such Inventory or Equipment; 

        (xiv) all
investment property now held or hereafter acquired by the Obligor; 

        (xv) all
commercial tort claims of the Obligor listed on Schedule 5.03(d); 

        (xvi) all
shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity interests in
any person, or any obligations convertible into or exchangeable for, or giving any person a right, option or warrant to acquire, such equity interests or such convertible or exchangeable obligations
(collectively, the "Stock Collateral"); 

        (xvii) the
Midwest Trading Revolver and all related promissory notes issued pursuant to the Midwest Trading Revolver; and 

        (xviii) all
proceeds, rents, profits, income, benefits, substitutions and replacements of and to any of the property of the Obligor described in the preceding clauses of
this Section 3 (including all causes of action, claims and warranties now or hereafter held by the Obligor in respect of any of the items listed
above) and, to the extent related to any property described in said clauses or such proceeds, all books, correspondence, credit files, records, invoices and other papers, including all tapes, cards,
computer runs and other papers and documents in the possession or under the control of the Obligor or any computer bureau or service company from time to time acting for the Obligor. 

Notwithstanding
any of the other provisions set forth in this Section 3 or any other Security Document to the contrary, this Agreement shall not,
at any time, constitute a grant of a security interest in any property of the Obligor that is, at such time, an Excluded Asset. The Obligor and the Collateral Trustee hereby acknowledge and agree that
the security interest created hereby in 

7

 

the
Pledged Collateral is not, in and of itself, to be construed as a grant of a fee interest (as opposed to security interest) in any Copyright, Patent or Trademark. 

        This
Agreement, and the security interests and Liens granted and created herein, secures the payment and the performance of all Secured Obligations now or hereafter in effect, whether
direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest (including any interest accruing at the then applicable rate provided in any applicable
Secured Debt Document after the maturity of the Indebtedness thereunder and reimbursement obligations therein and interest accruing at the then applicable rate provided in any applicable Secured Debt
Document after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to the Obligor, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), fees, premiums, penalties, indemnifications, expenses or otherwise, and including all amounts that
constitute part of the Secured Obligations and would be owed to the Obligor but for the fact that they are unenforceable or not allowed due to a pending Insolvency Proceeding. Without limiting the
generality of the foregoing, it is the intent of the parties hereto that (A) the Liens securing the Parity Lien Obligations are subject and subordinate to the Liens securing the Priority Lien
Obligations and (B) this Agreement creates two separate and distinct Liens: the first priority Lien securing the payment and performance of the Priority Lien Obligations and the second priority
Lien securing the payment and performance of the Parity Lien Obligations, in each case, as may be more particularly set forth in the Collateral Trust Agreement. The Collateral Trustee acknowledges
that for purposes of perfecting the security interests hereunder, all property in the possession or control of the Collateral Trustee will be held by the Collateral Trustee both as trustee for the
benefit of the Priority Lien Secured Parties and as trustee for the benefit of the Parity Lien Secured Parties, subject to the terms of the Collateral Trust Agreement. 

        (b)   Notwithstanding
anything herein to the contrary (i) the Obligor shall remain liable for all obligations under and in respect of the Pledged Collateral and nothing
contained herein is intended or shall be a delegation of duties to the Collateral Trustee or any other Secured Party, (ii) the Obligor shall remain liable under each of the agreements included
in the Pledged Collateral, including the Assigned Agreements, to perform all of the obligations undertaken by it thereunder all in accordance with and pursuant to the terms and provisions thereof and
neither the Collateral Trustee nor any other Secured Party shall have any obligation or liability under any of such agreements by reason of or arising out of this Agreement or any other document
related hereto nor shall the Collateral Trustee or any other Secured Party have any obligation to make any inquiry as to the nature or sufficiency of any payment received by it or have any obligation
to take any action to collect or enforce any rights under any agreement included in the Pledged Collateral, including any agreements relating to the Assigned Agreements, and (iii) the exercise
by the Collateral Trustee of any of its rights hereunder shall not release the Obligor from any of its duties or obligations under the contracts and agreements included in the Pledged Collateral,
including any agreements relating to the Assigned Agreements. 

        SECTION 4.    CASH PROCEEDS OF COLLATERAL.    

        4.01    Collateral Account.    

        (a)   The
Collateral Trustee will cause to be established at a banking institution to be selected by the Collateral Trustee a cash collateral account (the
"Collateral Account"), into which there shall be deposited from time to time upon the occurrence and during the continuance of an Actionable Default the
cash proceeds of any of the Pledged Collateral required to be delivered to the Collateral Trustee pursuant hereto. The balance from time to time in the Collateral Account shall constitute part of the
Pledged Collateral hereunder and shall not constitute payment of the Secured Obligations until applied as hereinafter provided. Except as expressly provided in the next 

8

 

sentence,
the Collateral Trustee shall remit the collected balance standing to the credit of the Collateral Account to or upon the order of the Obligor as the Obligor shall from time to time instruct.
However, at any time following the occurrence and during the continuance of an Actionable Default, the Collateral Trustee may (but shall not be obligated to), in its sole discretion, apply or cause to
be applied (subject to collection) the balance from time to time standing to the credit of the Collateral Account to the payment of the Secured Obligations in the manner specified in  Section 5.08.
The balance from time to time in the Collateral Account shall be subject to withdrawal only as provided herein. In addition to the
foregoing, the Obligor agrees that, at any time after the occurrence and during the continuance of an Actionable Default, if the proceeds of any Collateral hereunder shall be received by it, the
Obligor shall as promptly as possible deposit such proceeds into the Collateral Account. Until so deposited, all such proceeds shall be held in trust by the Obligor for and as the property of the
Collateral Trustee and shall not be commingled with any other funds or property of the Obligor. 

        (b)   The
Collateral Account shall be established in the name of the Obligor, but under the exclusive dominion and control of the Collateral Trustee. The Collateral Account
shall be a "securities account" (as defined in Section 8-501(a) of the UCC) and, to the extent that credit balances not constituting "financial assets" (as defined in
Section 8-102(a)(9) of the UCC) are credited thereto, a "deposit account" (as defined in Section 9-102(a)(29) of the UCC). 

        4.02    Investment of Balance in Collateral Account.    The cash balance standing to the credit of the Collateral
Account shall be invested from time to time in such Permitted Investments as the Obligor (or, after the occurrence and during the continuance of an Actionable Default, the Collateral Trustee) shall
determine, which Permitted Investments shall be credited to the Collateral Account; provided that at any time after the occurrence and during the
continuance of an Actionable Default, the Collateral Trustee may (but shall not be obligated to) in its sole discretion at any time and from time to time elect to liquidate any such Permitted
Investments and to apply or cause to be applied the proceeds thereof to the payment of the Secured Obligations in the manner specified in  Section 5.08. 

        SECTION 5.    FURTHER ASSURANCES; REMEDIES.    In furtherance of the
grant of the pledge and security interest pursuant to Section 3, the Obligor hereby agrees until the Collateral Trustee's Liens on the Pledged
Collateral are released pursuant to Section 4.1 of the Collateral Trust Agreement with the Collateral Trustee and each of the Secured Parties as follows: 

        5.01    Delivery and Other Perfection.    The Obligor shall, at its expense: 

        (a)   if
any of the promissory notes or Stock Collateral pledged by the Obligor under Section 3 are received by the
Obligor, forthwith (i) transfer and deliver to the Collateral Trustee such promissory notes (accompanied by undated bond power in blank by an effective endorsement) and Stock Collateral
(together with the certificates for any such Stock Collateral duly endorsed in blank or accompanied by undated stock powers duly executed in blank by an effective endorsement), which thereafter shall
be held by the Collateral Trustee, pursuant to the terms of this Agreement, as part of the Pledged Collateral or (ii) take such other action as the Collateral Trustee shall reasonably request
to duly record the Lien created hereunder in such promissory notes or Stock Collateral; 

        (b)   give,
execute, deliver, file, authorize, obtain and/or record any financing or continuation statement or amendment thereto (and the Obligor agrees that such financing
statements may describe the collateral in the same manner as described in this Agreement or as "all assets" or "all personal property", whether now owned or hereafter existing or hereafter acquired or
such other description as the Collateral Trustee, in its sole judgment, determines is necessary or advisable, and, without limiting the Obligor's obligations hereunder, the Obligor authorizes the
Collateral Trustee to file one or more financing statements 

9

 

containing
any such collateral description), notice, instrument, document, agreement or other papers that may be necessary or reasonably requested by the Collateral Trustee to create, preserve,
perfect or validate the security interest granted pursuant hereto or to enable the Collateral Trustee, at any time following the occurrence and continuance of an Actionable Default, to exercise and
enforce its rights hereunder with respect to such pledge and security interest, causing any or all of the Pledged Collateral to be transferred of record into the name of the Collateral Trustee or its
nominee (and the Collateral Trustee agrees that if any Pledged Collateral is transferred into its name or the name of its nominee, the Collateral Trustee will thereafter promptly give to the Obligor
copies of any written notices and communications received by it with respect to such Pledged Collateral pledged by the Obligor hereunder); 

        (c)   keep
full and accurate books and records relating to the Pledged Collateral, and stamp or otherwise mark such books and records in order to reflect the security
interests granted by this Agreement; 

        (d)   promptly
forward copies of any written notices or communications received by the Obligor with respect to the Pledged Collateral to the Collateral Trustee, permit
representatives or agents of the Collateral Trustee, upon reasonable notice, at any time during normal business hours to inspect and make abstracts from its books and records pertaining to the Pledged
Collateral and, upon the occurrence and during the continuation of an Actionable Default, permit representatives or agents of the Collateral Trustee to be present at the Obligor's place of business to
receive copies of all communications and remittances relating to the Pledged Collateral, all in such manner as the Collateral Trustee may require; and 

        (e)   with
respect to any deposit accounts, securities accounts, uncertificated securities, letter of credit rights or electronic chattel paper that are included in the
Pledged Collateral, ensure that the Collateral Trustee at all times has "control" (within the applicable section of the UCC) over all such property. 

        5.02    Other Financing Statements and Liens.    

        (a)   The
Obligor shall not create, incur, assume or suffer to exist any Lien upon the Pledged Collateral at any time, except for (i) Permitted Liens and
(ii) the pledges and security interests in favor of the Collateral Trustee for the benefit of the Secured Parties created pursuant hereto or provided for herein, which pledges and security
interests constitute first priority and second priority perfected pledges and security interests in and to all of the Pledged Collateral as provided in  Section 3. 

        (b)   Except
as otherwise permitted by Section 7.2.2 of the Credit Agreement and Section 4.12 of the Indenture, without prior written consent of the Collateral
Trustee, the Obligor shall not (i) file or suffer to be on file, or authorize or permit to be filed or to be on file, in any jurisdiction, any financing statement or like instrument with
respect to the Pledged Collateral in which the Collateral Trustee is not named as the sole secured party for the benefit of the Secured Parties or (ii) cause or permit any Person, other than
the Collateral Trustee to have "control" (as such term is defined in Sections 9-104, 9-105, 9-106 or 9-107 of the UCC) of any deposit account, any
securities account, investment property, the Collateral Account or any Permitted Investments constituting part of the Pledged Collateral. 

10

  

        5.03    Special Provisions Relating to the Pledged Collateral.    

        (a)    Assigned Agreements.    No Lien granted by this Agreement in the Obligor's right, title and interest in any
contract or agreement shall be deemed to be a consent by the Collateral Trustee or any Secured Party to any such contract or agreement. 

        (b)    Intellectual Property.    

        (i)    For
the purpose of enabling the Collateral Trustee to exercise rights and remedies under Section 5.04 at such time
as the Collateral Trustee shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, the Obligor hereby grants to the Collateral Trustee, to the extent assignable, an
irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to the Obligor) to use, assign, license or sublicense any of the Intellectual Property now
owned or hereafter acquired by the Obligor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and
to all computer programs used for the compilation or printout thereof. 

        (ii)   Notwithstanding
anything contained herein to the contrary, but subject to the provisions of Section 4 of the Collateral Trust Agreement that limit the rights of
the Obligor to dispose of its property, so long as no Actionable Default shall have occurred and be continuing, the Obligor will be permitted to exploit, use, enjoy, protect, license, sublicense,
assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of the business of the Obligor. In furtherance of the foregoing, unless an Actionable
Default shall have occurred and be continuing the Collateral Trustee shall from time to time, upon the request of the Obligor, execute and deliver any instruments, certificates or other documents, in
the form so requested, that the Obligor shall have certified are appropriate (in its judgment) to allow it to take any action permitted above (including relinquishment of the license provided pursuant
to clause (i) immediately above as to any specific Intellectual Property). Further, upon the release of the Collateral Trustee's Liens on the
Pledged Collateral pursuant to Section 4.1 of the Collateral Trust Agreement, the Collateral Trustee shall grant back to the Obligor the license granted pursuant to  clause (i) immediately
above. The exercise of rights and remedies under Section 5.04 by
the Collateral Trustee shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by the Obligor in accordance with the first sentence of this  clause (ii).

        (c)   The
Collateral Trustee shall be entitled (but shall not be obligated) to exercise all rights of the "Lender" under each of the Powerton/Joliet Lease Intercompany Notes
to the exclusion of the Obligor (including, (i) the right to accelerate the maturity of such Powerton/Joliet Lease Intercompany Note in
accordance with Section 8 thereof and (ii) the right to consent to any assignment of the obligations of the "Borrower" under such Powerton/Joliet Lease Intercompany Note in accordance
with Section 11 thereof). 

        (d)   The
Obligor shall advise the Collateral Trustee promptly in writing of any commercial tort claims held by the Obligor individually or in the aggregate in excess of
$100,000 and shall promptly execute a supplement to this Agreement in form and substance as shall be sufficient to grant a security interest in such commercial tort claim to the Collateral Trustee for
the benefit of the Secured Parties. 

        (e)   (i)    So
long as no Actionable Default shall have occurred and be continuing, the Obligor shall have the right to exercise all voting, consensual and other
powers of ownership pertaining to the Stock Collateral for all purposes not inconsistent with the terms of this Agreement, any other Secured Debt Document or any other instrument or agreement referred
to herein; provided that the Obligor agrees that it will not vote the Stock Collateral in any manner that is inconsistent with the terms of this
Agreement or any other Secured Debt Document; and, upon at least 15 days' prior notice, the Collateral Trustee shall execute and deliver to the Obligor or cause to be 

11

 

executed
and delivered to the Obligor all such proxies, powers of attorney, dividend and other orders, and all such instruments, without recourse, as the Obligor may reasonably request in writing for
the purpose of enabling the Obligor to exercise the rights and powers that they are entitled to exercise pursuant to this Section 5.03(e)(i). 

        (ii)   If
any Actionable Default shall have occurred, then so long as such Actionable Default shall continue, and whether or not the Collateral Trustee or any Secured Party
exercises any available right to declare any of the Secured Obligations due and payable or seeks or pursues any other relief or remedy available to it under applicable law or under this Agreement, any
Secured Debt Document or any other agreement relating to such Secured Obligations, all dividends and other distributions on the Stock Collateral shall be paid directly to the Collateral Trustee and
retained by it in the Collateral Account as part of the Pledged Collateral, subject to the terms of this Agreement, and, if the Collateral Trustee shall so request in writing, the Obligor agrees to
execute and deliver to the Collateral Trustee appropriate additional dividend, distribution and other orders and documents to that end, provided that if
such Actionable Default is cured, any such dividend or distribution theretofore paid to the Collateral Trustee shall, upon the written request of the Obligor (except to the extent theretofore applied
to the Secured Obligations), be returned by the Collateral Trustee to the Obligor. 

        (iii)  All
Stock Collateral in which the Obligor shall now or hereafter grant security interests pursuant to  Section 3shall be duly authorized, validly existing, fully paid and non-assessable and none of the
Stock Collateral shall be subject
to any contractual restriction. 

        5.04    Collateral Trust Agreement Actionable Default, Etc.    Upon the occurrence and during the continuance of an
Actionable Default: 

        (a)   the
Obligor shall, at the request of the Collateral Trustee, assemble the Pledged Collateral owned by it at such place or places, reasonably convenient to both the
Collateral Trustee and the Obligor, designated in its request; 

        (b)   the
Collateral Trustee may (but shall not be obligated to) make any reasonable compromise or settlement deemed desirable by it with respect to any of the Pledged
Collateral and may extend the time of payment, arrange for payment in installments, or otherwise modify the terms of, any of the Pledged Collateral; 

        (c)   the
Collateral Trustee shall have all of the rights and remedies with respect to the Pledged Collateral of a secured party under the UCC (whether or not the UCC is in
effect in the jurisdiction where the rights and remedies are asserted) and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where
any rights and remedies hereunder may be asserted, and the right, to the maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Pledged
Collateral as if the Collateral Trustee were the sole and absolute owner thereof (and the Obligor agrees to take all such action as may be appropriate to give effect to such right); 

        (d)   the
Collateral Trustee may in its name or in the name of the Obligor or otherwise, demand, sue for, collect or receive any money or property at any time payable or
receivable on account of or in exchange for any of the Pledged Collateral, but shall be under no obligation to do so; and 

        (e)   the
Collateral Trustee may, with respect to the Pledged Collateral or any part thereof that shall then be or shall thereafter come into the possession, custody or
control of the Collateral Trustee, any other Secured Party or any of their respective agents, upon ten (10) Business Days' prior written notice to the Obligor of the time and place, sell,
lease, assign or otherwise dispose of all or any part of such Pledged Collateral, at such place or 

12

 

places
as the Collateral Trustee deems best, and for cash or for credit or for future delivery (without thereby assuming any credit risk or liability), at public or private sale, without demand of
performance or notice of intention to effect any such disposition or of the time or place thereof (except as provided above and such notice as is required above or by applicable statute that cannot be
waived), and upon such other terms as the Collateral Trustee may deem commercially reasonable, and the Collateral Trustee or any other Secured Party or anyone else may be the purchaser, lessee,
assignee or recipient of any or all of the Pledged Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private sale) and thereafter hold the same absolutely, free
from any claim or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise), of the Obligor, any such demand, notice and right or equity being hereby expressly
waived and released. The Collateral Trustee may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and
place fixed for the sale, and such sale may be made at any time or place to which the sale may be so adjourned. 

        All
actions of the Collateral Trustee under this Section 5.04 shall be subject to Section 3.3 of the Collateral Trust
Agreement. The proceeds of each collection, sale or other disposition under this Section 5.04 shall be applied in accordance with  Section 5.08.

        The
Obligor recognizes that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws, the Collateral Trustee may be
compelled, with respect to any sale of all or any part of the Pledged Collateral, to limit purchasers to those who will agree, among other things, to acquire the Pledged Collateral for their own
account, for investment and not with a view to the distribution or resale thereof. The Obligor acknowledges that any such private sales may be at prices and on terms less favorable to the Collateral
Trustee than those obtainable through a public sale without such restrictions. The parties hereto agree that any such private sale shall be made in a commercially reasonable manner and that the
Collateral Trustee shall have no obligation to engage in public sales and no obligation to delay the sale of any Pledged Collateral for the period of time necessary to permit the issuer thereof to
register it for public sale. 

        5.05    Deficiency.    If the proceeds of sale, collection or other realization of or upon the Pledged Collateral
pursuant to Section 5.04 are insufficient to cover the costs and expenses of such realization and the payment in full of the Secured Obligations,
the Obligor shall remain liable for any deficiency to the extent the Obligor is obligated under this Agreement. 

        5.06    Removals, Etc.    Without at least thirty (30) days' prior written notice to the Collateral Trustee,
the Obligor shall not (a) maintain any of its books and records with respect to the Pledged Collateral at any
office, or maintain its principal place of business at any place other than at the address indicated beneath its signature hereto or (b) change its corporate name, or the name under which it
does business, from the name shown on the signature pages hereto. 

        5.07    Private Sale.    The Collateral Trustee and the other Secured Parties shall incur no liability as a result of
the sale of the Pledged Collateral, or any part thereof, at any private sale pursuant to Section 5.04 conducted in a commercially reasonable
manner. The Obligor hereby waives any claims against the Collateral Trustee or any other Secured Party arising by reason of the fact that the price at which the Pledged Collateral may have been sold
at such a private sale was less than the price that might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Collateral Trustee accepts
the first offer received and does not offer the Pledged Collateral to more than one offeree. 

        5.08    Application of Proceeds.    Except as otherwise herein expressly provided, the proceeds of any collection,
sale or other realization of all or any part of the Pledged Collateral pursuant hereto, and any other cash at the time held by the Collateral Trustee under  Section 4 or this 

13

 

 Section 5, shall be applied by the Collateral Trustee in accordance with Section 3.4 of the Collateral Trust Agreement. 

        5.09    Attorney-in-Fact.    Without limiting any rights or powers granted by this Agreement
to the Collateral Trustee while no Actionable Default has occurred and is continuing, upon the occurrence and during the continuance of any Actionable Default, the Collateral Trustee is hereby
appointed the attorney-in-fact of the Obligor for the purpose of carrying out the provisions of this Section 5 and taking
any action and executing any instruments that the Collateral Trustee may deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact is
irrevocable and coupled with an interest. Without limiting the generality of the foregoing, so long as the Collateral Trustee shall be entitled under this  Section 5 to make collections in respect
of the Pledged Collateral, the Collateral Trustee shall have the right and power to receive, endorse and
collect all checks made payable to the order of the Obligor representing any dividend, payment or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge
for the same. 

        5.10    Perfection.    Prior to or concurrently with the execution and delivery of this Agreement, the Obligor shall
(a) deliver to the Collateral Trustee each of the Powerton/Joliet Lease Intercompany Notes, accompanied by undated bond power executed in blank, (b) file such financing statements and
other documents in each jurisdiction requested by the Collateral Trustee naming the Obligor as debtor and the Collateral Trustee as secured party and (c) such documents as necessary to grant
the Collateral Trustee control of pledged deposit accounts and securities accounts of the Obligor; provided,  however, the Collateral Trustee hereby agrees
that, at the written request of the Obligor, the Collateral Trustee shall make such Powerton/Joliet Lease
Intercompany Note available for inspection if the Obligor is
required to make such Powerton/Joliet Lease Intercompany Note available to the Internal Revenue Service or other taxing authority in connection with an audit or any similar proceedings. 

        5.11    Termination.    Upon the release of all of the Collateral Trustee's Liens on the Pledged Collateral pursuant
to Section 4.1 of the Collateral Trust Agreement, this Agreement shall terminate, and the Collateral Trustee shall forthwith cause to be assigned, transferred and delivered, against receipt but
without any recourse, warranty or representation whatsoever, any remaining Pledged Collateral and money received in respect thereof, to or on the order of the Obligor. Upon the written request, and at
the expense of the Obligor, the Collateral Trustee shall execute and deliver but without any recourse, warranty or representation whatsoever all such documentation necessary to release the pledge
created pursuant to this Agreement. 

        5.12    Further Assurances.    The Obligor agrees that, from time to time upon the written request of the Collateral
Trustee, the Obligor will execute and deliver such further documents and do such other acts and things as the Collateral Trustee may reasonably request in order fully to effect the purposes of this
Agreement. 

        5.13    Release of Motor Vehicles.    So long as no Default shall have occurred and be continuing, upon the request of
the Obligor, the Collateral Trustee shall execute and deliver to the Obligor, at the Obligor's expense, such instruments as the Obligor shall reasonably request to remove the notation, if any, of the
Collateral Trustee as lienholder on any certificate of title for any Motor Vehicle; provided that any such instruments shall be delivered, and the
release effective only upon receipt by the Collateral Trustee of a certificate from the Obligor stating that the Motor Vehicle the lien on which is to be released is to be sold or has suffered a
casualty loss (with title thereto passing to the casualty insurance company therefor in settlement of the claim for such loss). 

        5.14    Release.    For purposes of this Agreement, the provisions of Section 4.1 of the Collateral Trust
Agreement are hereby incorporated herein by reference mutatis mutandis as if set forth in full in this Agreement. 

14

 

        SECTION 6.    Miscellaneous.    

        6.01    Notices.    All notices, requests and other communications provided for herein shall be given or made in
writing in the manner set forth in Section 7.7 of the Collateral Trust Agreement. Unless otherwise changed in accordance with the Collateral Trust Agreement by the respective parties hereto,
all notices, requests and other communications to each party hereto shall be sent to the address for notices of such party set forth on the signature pages hereto. 

        6.02    Delay and Waiver.    No failure to exercise, no course of dealing with respect to the exercise of, and no
delay in exercising, any right, power or remedy arising under this Agreement will impair any such right, power or remedy or operate as a waiver hereof. No single or partial exercise of any such right,
power or remedy will preclude any other or future exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies
provided by law. 

        6.03    Amendments, Etc.    The terms of this Agreement may be waived, altered or amended only by an instrument in
writing duly executed by the Obligor and the Collateral Trustee. Any such amendment or waiver shall be binding upon the Collateral Trustee and each other Secured Party, each holder of any of the
Secured Obligations and the Obligor. 

        6.04    Collateral Trust Agreement Controls.    In the event of any conflict between any terms and provisions set
forth in this Agreement and those set forth in the Collateral Trust Agreement, the terms and provisions of the Collateral Trust Agreement shall supersede and control the terms and provisions of this
Agreement. 

        6.05    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the Obligor, the Collateral Trustee, each of the other Secured Parties and each holder of any of the Secured Obligations
(provided, that the Obligor shall not assign or transfer its rights hereunder without the prior written consent of the Collateral Trustee). 

        6.06    Counterparts.    This Agreement may be executed in any number of counterparts, each of which when so executed
and delivered will be deemed an original, but all such counterparts together will constitute but one and the same instrument. 

        6.07    Governing Law; Submission to Jurisdiction.    The internal law of the State of New York will govern and be
used to construe this Agreement without giving effect to applicable principles of conflicts of law to the extent that the application of the laws of another jurisdiction would be required thereby. 

        6.08    Headings.    Section headings herein have been inserted for convenience of reference only, are not to be
considered a part of this Agreement and will in no way modify or restrict any of the terms or provisions hereof. 

        6.09    Agents and Attorneys-in-Fact.    The Collateral Trustee may employ agents and
attorneys-in-fact in connection herewith and shall not be responsible or liable for the negligence or misconduct of any such agents or attorneys-in-fact
selected by it in good faith. 

        6.10    Severability.    If any provision of this Agreement is invalid, illegal or unenforceable in any respect or in
any jurisdiction, the validity, legality and enforceability of such provision in all other respects and of all remaining provisions, and of such provision in all other jurisdictions, will not in any
way be affected or impaired thereby. 

15

 

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

	 	 	MIDWEST GENERATION, LLC
	

 	
 	

By:	

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

Title:    Vice President
	

 	
 	

Address for Notices:
	

 	
 	

One Financial Place

440 South LaSalle Street, Suite 3500

Chicago, IL 60605

Attention:  General Counsel

Telecopier No:  (312) 583-6111
	

 	
 	
WILMINGTON TRUST COMPANY,

    as Collateral Trustee
	

 	
 	

By:	

/s/  JAMES J. MCGINLEY      
 Name:  James J. McGinley

Title:    Authorized Signer
	

 	
 	

Address for Notices:
	

 	
 	

Rodney Square North

1100 North Market Street

Wilmington, DE, 19890-1615

Attention:  Corporate Trust Administration

Telecopier No.:  (302) 636-4145

16

Schedule 3(a)(x)
 to Borrower Security Agreement

 
 

Equipment Subject to Existing Leases    
    

	Debtor Name
 
	 	Secured Party/

Amended or

Assigned Name
	 	Jurisdiction
	 	Type of

Filing
	 	Original

File

Date
	 	Original

File

Number
	 	Collateral

Description/Comments

	Midwest Generation, LLC—Delaware Secretary of State (UCC/Fed. Tax Lien)
	

Midwest Generation, LLC	
 	

The CIT Group/Equipment Financing, Inc.	
 	

Delaware Secretary of State	
 	

UCC-1	
 	

Filed 10/29/02	
 	

22727190	
 	

To continue seven specified financing statements filed and continued between 1992-1998, which remain effective. Equipment manufactured by Northern Telecom, Inc. (eg, digital phones, miscellaneous cabeling and wire); Picture Tel (eg,
videoconferencing systems); IBM Corporation (eg, page printer); NCR (eg, printer, adapters).
	

Midwest Generation, LLC	
 	

Dell Financial Services	
 	

Delaware

Secretary

of

State	
 	

UCC-1	
 	

Filed 1/16/03	
 	

30139934	
 	

Computer equipment and peripherals.
	

Midwest Generation, LLC(1)	
 	

Financial Federal Credit Inc.	
 	

Delaware Secretary of State	
 	

UCC-1	
 	

Filed 7/15/03	
 	

32007428	
 	

[Amendment to collateral description:

Secured Party releases its interest in all collateral covered by the referenced filing except for the following: One (1) 2003 Sterling, SN 2FZHAZAN63AK12105 with an attached model XXS4118TC Guzzler Vacuum Body SN: 02-07G-4068, including all
attachments and accessories and all proceeds, rental proceeds, accounts, accounts receivable and chattel paper arising our of or related to the sale, lease, rental of other disposition thereof.]
	
Midwest Generation, LLC—Illinois Secretary of State (UCC/Fed. Tax Lien)
	

Midwest Generation, LLC	
 	

Tennant Financial Services	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 1/3/01	
 	

4318895	
 	

Tennant Model 8200 Sweeper/Scruber
	

Midwest Generation, LLC	
 	

Caterpillar Financial Services Corporation	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 11/5/01	
 	

4457707	
 	

Caterpillar D9R Track-Type Tractor SN: ACL00734; Caterpillar D9R Track-Type Tractor SN: ACL00735
	 	 	 	 	 	 	 	 	 	 	 	 	 

	

Midwest Generation, LLC(2)	
 	

Financial Federal Credit Inc.	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 11/12/02	
 	

6109365	
 	

[Amendment to collateral description: Secured Party releases its interest in all collateral covered by the referenced filing except for the following: One (1) 2003 Sterling, SN: 2FZHAZAN63AK12105 with an
attached model XXS4118TC Guzzler Vacuum Body, SN: 02-07G-4068, including all attachments and accessories and all proceeds, rental proceeds, accounts, accounts receivable and chattel paper arising our of or related to the sale, lease, rental of other
disposition thereof.]
	

Midwest Generation, LLC	
 	

FCC Equipment Financing, Inc.	
 	

Illinois Secretary of State	
 	

UCC-1/

UCC-3	
 	

Filed 4/17/03

  

Amended (restated collateral description) 6/26/03	
 	

6872107; 7209428	
 	

One Supersucker 6227 Industrial Vacuum Loader SN: 03071556; One Sterling 9513 Truck VIN: 2FZHAZAN03AK65401 and substitutions, replacements, additions and accessions thereto now owned of hereafter acquired and proceeds thereof
	

Midwest Generation, LLC	
 	

Caterpillar Financial Services	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 1/2/04	
 	

8049920	
 	

One D11RECPS Track-type Tractor S/N: CSA and substitutions, replacements, additions and accessions thereto now owned of hereafter acquired and proceeds thereof
	

Midwest Generation, LLC	
 	

Caterpillar Financial Services	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 1/2/2004	
 	

8049939	
 	

One Caterpillar D11RECPS Track-type Tractor S/N: 7PZ007262 and substitutions, replacements, additions and accessions thereto now owned of hereafter acquired and proceeds thereof
	

Midwest Generation, LLC	
 	

GFC Leasing a Division of Gordon Flesch Co, Inc.	
 	

Illinios Secretary of State	
 	

UCC-1	
 	

Filed 1/5/04	
 	

8057966	
 	

MSK09386 Color IR C3200 Copier
	
Midwest Generation EME, LLC—Delaware Secretary of State (UCC/Fed. Tax Lien)
	

Midwest Generation EME, LLC	
 	

Comark Capital Leasing Services	
 	

Illinois Secretary of State	
 	

UCC-1	
 	

Filed 4/8/03	
 	

6823408	
 	

Office equipment and products, computers, security systems and other commercial items of equipment
	
Edison Mission Marketing & Trading, Inc.—Massachusetts Secretary of the Commonwealth (UCC)
	

Edison Mission Marketing & Trading, Inc.	
 	

American Express Business Finance	
 	

Massachusetts Secretary of the Commonwealth	
 	

UCC-1	
 	

Filed 12/03/03	
 	

200325781800	
 	

Specified equipment acquired by lease (RICOH 2045, 1022, 1013)
	 	 	 	 	 	 	 	 	 	 	 	 	 

	
Edison Mission Energy—California Secretary of State (UCC/Fed. Tax Lien)
	

Edison Mission Energy	
 	

Wells Fargo Financial Leasing, Inc.	
 	

California Secretary of State	
 	

UCC-1	
 	

Filed 12/11/02	
 	

0235160427	
 	

Eg, digital color copier, MFP, Digital Imaging System with Print

Schedule 5.03(d)
 to Borrower Security Agreement

 
 

COMMERCIAL TORT CLAIMS    
    

QuickLinks

SECURITY AGREEMENT between MIDWEST GENERATION, LLC and WILMINGTON TRUST COMPANY, as Collateral Trustee Dated as of April 27, 2004

TABLE OF CONTENTS

SECURITY AGREEMENT

Equipment Subject to Existing Leases

COMMERCIAL TORT CLAIMS

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