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Exhibit 10.13  

EXECUTION COUNTERPART 

 

 
 
CREDIT AGREEMENT  

 dated as of April 27, 2004  

 among  

 EDISON MISSION ENERGY  

 and  

 THE LENDERS REFERRED TO HEREIN  

 and  

 THE ISSUING LENDERS REFERRED TO HEREIN  

 and  

 CITICORP NORTH AMERICA, INC.,

as Administrative Agent for the Lenders  

 CITIGROUP GLOBAL MARKETS INC.,

CREDIT SUISSE FIRST BOSTON,

as Lead Arrangers  

 CITIGROUP GLOBAL MARKETS INC.,

CREDIT SUISSE FIRST BOSTON,

J.P. MORGAN SECURITIES INC. and

LEHMAN BROTHERS INC.,

as Joint Bookrunners  

 CREDIT SUISSE FIRST BOSTON,

J.P. MORGAN SECURITIES INC. and

LEHMAN BROTHERS INC.,

as Syndication Agents  

 

 
TABLE OF CONTENTS  

	 
	 	Page

	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	 	1
	 	SECTION 1.1 Defined Terms	 	1
	 	SECTION 1.2 Use of Defined Terms	 	20
	 	SECTION 1.3 Cross-References	 	20
	 	SECTION 1.4 Accounting and Financial Determinations	 	20
	

ARTICLE II COMMITMENTS AND BORROWING PROCEDURES	
 	

21
	 	SECTION 2.1 Commitments	 	21
	 	SECTION 2.2 Loans.	 	21
	 	 	SECTION 2.2.1 Obligations of Lenders	 	21
	 	 	SECTION 2.2.2 Type of Loans	 	21
	 	 	SECTION 2.2.3 Minimum Amounts; Limitation on Number of Loans	 	21
	 	 	SECTION 2.2.4 Limitations on Interest Periods	 	21
	 	 	SECTION 2.2.5 Reduction of Total Commitment Amount	 	21
	 	SECTION 2.3 Borrowing Procedure	 	21
	 	SECTION 2.4 Continuation and Conversion Elections	 	22
	 	SECTION 2.5 Funding	 	22
	 	SECTION 2.6 Letters of Credit.	 	23
	 	 	SECTION 2.6.1 General	 	23
	 	 	SECTION 2.6.2 Notice of Issuance, Amendment, Renewal or Extension	 	23
	 	 	SECTION 2.6.3 Limitations on Amounts	 	23
	 	 	SECTION 2.6.4 Expiration Date	 	24
	 	 	SECTION 2.6.5 Participations	 	24
	 	 	SECTION 2.6.6 Reimbursement	 	24
	 	 	SECTION 2.6.7 Obligations Absolute	 	24
	 	 	SECTION 2.6.8 Disbursement Procedures	 	26
	 	 	SECTION 2.6.9 Interim Interest	 	26
	 	 	SECTION 2.6.10 LC Disbursement Denomination	 	26
	 	 	SECTION 2.6.11 Addition and Replacement of Issuing Lenders	 	26
	 	 	SECTION 2.6.12 Offshore Currencies and Agreed Alternate Currencies	 	26
	 	 	SECTION 2.6.13 Cash Collateralization	 	27
	

ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES	
 	

28
	 	SECTION 3.1 Repayments and Prepayments	 	28
	 	 	SECTION 3.1.1 Optional Prepayments and Commitment Reductions	 	28
	 	 	SECTION 3.1.2 Mandatory Prepayments	 	28
	 	 	SECTION 3.1.3 Acceleration; Penalty	 	29
	 	SECTION 3.2 Interest Provisions	 	29
	 	 	SECTION 3.2.1 Rates	 	29
	 	 	SECTION 3.2.2 Default Rates	 	30
	 	 	SECTION 3.2.3 Payment Dates	 	30
	 	 	SECTION 3.2.4 Interest Rate Determination	 	30
	 	SECTION 3.3 Fees	 	30
	 	 	SECTION 3.3.1 Commitment Fee	 	30
	 	 	SECTION 3.3.2 Letter of Credit Fees	 	30
	 	 	SECTION 3.3.3 Other Fees	 	31
	 	 	SECTION 3.3.4 Payment of Fees	 	31
	 	 	 

i

 

	

ARTICLE IV CERTAIN LIBO RATE AND OTHER PROVISIONS	
 	

31
	 	SECTION 4.1 LIBO Rate Lending Unlawful	 	31
	 	SECTION 4.2 Inability to Determine Rates	 	32
	 	SECTION 4.3 Increased LIBO Rate Loan Costs	 	32
	 	SECTION 4.4 Obligation to Mitigate	 	32
	 	SECTION 4.5 Funding Losses	 	33
	 	SECTION 4.6 Increased Capital Costs	 	33
	 	SECTION 4.7 Taxes	 	33
	 	SECTION 4.8 Payments, Computations	 	34
	 	SECTION 4.9 Sharing of Payments	 	35
	 	SECTION 4.10 Setoff	 	35
	 	SECTION 4.11 Replacement of Lender	 	35
	

ARTICLE V CONDITIONS TO LOANS	
 	

36
	 	SECTION 5.1 Conditions to Effectiveness	 	36
	 	 	SECTION 5.1.1 Delivery of Loan Documents	 	36
	 	 	SECTION 5.1.2 Officer's Certificates	 	36
	 	 	SECTION 5.1.3 Resolutions	 	36
	 	 	SECTION 5.1.4 Opinions of Counsel	 	37
	 	 	SECTION 5.1.5 Closing Fees, Expenses	 	37
	 	 	SECTION 5.1.6 Financial Statements	 	37
	 	 	SECTION 5.1.7 Solvency	 	37
	 	 	SECTION 5.1.8 Repayment of Existing Indebtedness	 	37
	 	 	SECTION 5.1.9 Lien Search; Recordings and Filings	 	37
	 	 	SECTION 5.1.10 Conditions to Other Financings	 	37
	 	SECTION 5.2 All Credit Extensions	 	38
	 	 	SECTION 5.2.1 Initial Credit Extension	 	38
	 	 	SECTION 5.2.2 Representations and Warranties; No Default	 	38
	 	 	SECTION 5.2.3 Borrowing Request	 	38
	 	 	SECTION 5.2.4 Satisfactory Legal Form	 	38
	

ARTICLE VI REPRESENTATIONS AND WARRANTIES	
 	

38
	 	SECTION 6.1 Organization; Power; Compliance with Law and Contractual Obligations	 	38
	 	SECTION 6.2 Due Authorization; Non-Contravention	 	39
	 	SECTION 6.3 Governmental Approval; Regulation	 	39
	 	SECTION 6.4 Validity	 	39
	 	SECTION 6.5 Financial Information	 	39
	 	SECTION 6.6 No Material Adverse Change	 	39
	 	SECTION 6.7 Litigation	 	39
	 	SECTION 6.8 Ownership of Properties	 	39
	 	SECTION 6.9 Taxes	 	40
	 	SECTION 6.10 Pension and Welfare Plans	 	40
	 	SECTION 6.11 Environmental Warranties	 	40
	 	SECTION 6.12 Regulations T, U and X	 	41
	 	SECTION 6.13 Accuracy of Information	 	41
	 	 	 

ii

 

	

ARTICLE VII COVENANTS	
 	

41
	 	SECTION 7.1 Affirmative Covenants	 	41
	 	 	SECTION 7.1.1 Financial Information, Reports, Notices	 	41
	 	 	SECTION 7.1.2 Compliance with Laws	 	43
	 	 	SECTION 7.1.3 Maintenance of Properties	 	43
	 	 	SECTION 7.1.4 Insurance	 	43
	 	 	SECTION 7.1.5 Books and Records	 	43
	 	 	SECTION 7.1.6 Environmental Covenant	 	44
	 	 	SECTION 7.1.7 Conduct of Business and Maintenance of Existence	 	44
	 	 	SECTION 7.1.8 Use of Proceeds	 	44
	 	SECTION 7.2 Negative Covenants	 	44
	 	 	SECTION 7.2.1 Restrictions on Indebtedness	 	44
	 	 	SECTION 7.2.2 Liens	 	45
	 	 	SECTION 7.2.3 Investments	 	46
	 	 	SECTION 7.2.4 Consolidation, Merger	 	46
	 	 	SECTION 7.2.5 Asset Dispositions	 	47
	 	 	SECTION 7.2.6 Transactions with Affiliates	 	47
	 	 	SECTION 7.2.7 Restricted Payments	 	47
	 	 	SECTION 7.2.8 Restrictive Agreements	 	47
	 	 	SECTION 7.2.9 Interest Coverage	 	48
	 	 	SECTION 7.2.10 Recourse Debt to Recourse Capital Ratio	 	48
	 	 	SECTION 7.2.11 ERISA	 	48
	

ARTICLE VIII EVENTS OF DEFAULT	
 	

48
	 	SECTION 8.1 Listing of Events of Default	 	48
	 	 	SECTION 8.1.1 Non-Payment of Obligations	 	48
	 	 	SECTION 8.1.2 Breach of Warranty	 	48
	 	 	SECTION 8.1.3 Non-Performance of Certain Covenants and Obligations	 	49
	 	 	SECTION 8.1.4 Non-Performance of Other Covenants and Obligations	 	49
	 	 	SECTION 8.1.5 Default on Other Indebtedness	 	49
	 	 	SECTION 8.1.6 Judgments	 	49
	 	 	SECTION 8.1.7 Pension Plans	 	49
	 	 	SECTION 8.1.8 Bankruptcy, Insolvency	 	49
	 	 	SECTION 8.1.9 Substantive Consolidation	 	50
	 	 	SECTION 8.1.10 Unenforceability of Documents	 	50
	 	SECTION 8.2 Action if Bankruptcy	 	50
	 	SECTION 8.3 Action if Other Event of Default	 	51
	 	SECTION 8.4 Rescission of Declaration	 	51
	

ARTICLE IX THE ADMINISTRATIVE AGENT	
 	

51
	 	SECTION 9.1 Actions	 	51
	 	SECTION 9.2 Funding Reliance	 	52
	 	SECTION 9.3 Exculpation	 	52
	 	SECTION 9.4 Successor	 	52
	 	SECTION 9.5 Loans by CNAI	 	53
	 	SECTION 9.6 Reliance by Administrative Agent	 	53
	 	SECTION 9.7 Notice of Default	 	53
	 	SECTION 9.8 Credit Decisions	 	53
	 	SECTION 9.9 Copies	 	54
	 	SECTION 9.10 Collateral	 	54
	 	 	 

iii

 

	

ARTICLE X MISCELLANEOUS PROVISIONS	
 	

54
	 	SECTION 10.1 Waivers, Amendments	 	54
	 	SECTION 10.2 Notices	 	55
	 	SECTION 10.3 Payment of Costs and Expenses	 	55
	 	SECTION 10.4 Indemnification	 	56
	 	SECTION 10.5 Survival	 	57
	 	SECTION 10.6 Severability	 	57
	 	SECTION 10.7 Headings	 	57
	 	SECTION 10.8 Execution in Counterparts	 	57
	 	SECTION 10.9 Governing Law; Entire Agreement	 	57
	 	SECTION 10.10 Successors and Assigns	 	58
	 	SECTION 10.11 Sale and Transfer of Loans; Participations in Loans	 	58
	 	 	SECTION 10.11.1 Assignments	 	58
	 	 	SECTION 10.11.2 Participations	 	59
	 	SECTION 10.12 USA Patriot Act	 	60
	 	SECTION 10.13 Other Transactions	 	60
	 	SECTION 10.14 Submission To Jurisdiction; Waivers	 	61
	 	SECTION 10.15 WAIVERS OF JURY TRIAL	 	61
	 	SECTION 10.16 Non-Recourse Persons	 	61
	 	SECTION 10.17 Acknowledgments	 	61
	 	SECTION 10.18 Confidentiality	 	62

iv

 

SCHEDULES  

	1.1(a)	 	—	 	Commitments
	1.1(b)	 	—	 	Addresses for Notices and Lending Offices
	1.1(c)	 	—	 	Collins Leases
	2.6.12	 	—	 	Agreed Alternate Currency Letters of Credit
	7.2.1	 	—	 	Liens
	
EXHIBITS
	

A	
 	

—	
 	

Form of Borrowing Request
	B	 	—	 	Form of Continuation/Conversion Notice
	C	 	—	 	Form of Assignment Agreement
	D	 	—	 	Form of Borrower Security Agreement
	E	 	—	 	Form of Opinions of Counsel
	F	 	—	 	Form of Communications Agreement

v

        CREDIT AGREEMENT dated as of April 27, 2004 among EDISON MISSION ENERGY, a corporation duly organized and validly existing under the laws of Delaware (the
"Borrower"), the various financial institutions as are or may become parties hereto (collectively, the
"Lenders"), the Issuing Lenders and CITICORP NORTH AMERICA, INC. ("CNAI"), as administrative
agent for the Lenders and the Issuing Lenders party hereto. 

RECITALS  

        A.    The
Borrower has requested that the Lenders establish a credit facility to make revolving loans and to issue letters of credit from time to time for general corporate
purposes of the Borrower, as further described herein, and to pay certain fees and expenses associated with this Agreement and the Loans as further described herein; and 

        B.    The
Lenders are willing to make such credit facility available upon and subject to the terms and conditions hereinafter set forth. 

        NOW,
THEREFORE, the parties hereto agree as follows: 

ARTICLE I  

 DEFINITIONS AND ACCOUNTING TERMS  

        SECTION
1.1    Defined Terms.    The following terms (whether or not underscored) when used in this Agreement,
including its preamble and recitals, shall, except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof): 

        "Administrative Agent" means CNAI in its capacity as administrative agent for the Lenders hereunder, and includes each other Person as may
have subsequently been appointed as the successor Administrative Agent pursuant to Section 9.4. 

        "Affiliate" of any Person means any other Person which, directly or indirectly, controls, is controlled by or is under common control with
such Person (excluding any trustee under, or any committee with responsibility for administering, any Pension Plan or Welfare Plan). A Person shall be deemed to be "controlled by" any other Person if
such other Person possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise. 

        "Affiliate Bankruptcy Event" means, with respect to Edison International or any of its Subsidiaries (other than the Borrower), such Person
shall: 

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

        (b)   permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any
dissolution, winding up or liquidation proceeding, in respect of such Person. 

        "Agent-Related Persons" means CNAI and each other Person as may have subsequently been appointed as the successor Administrative Agent
pursuant to Section 9.4, together with their respective Affiliates, and the officers, directors, employees, agents and
attorneys-in-fact of CNAI, each such other Person and such Affiliates. 

        "Agreed Alternate Currency" shall mean the currencies listed on Schedule 2.6.12,
pursuant to the procedures specified in Section 2.6.12(b). 

        "Agreed Alternate Percentage" shall mean the percentages listed opposite the Agreed Alternate Currencies on  Schedule 2.6.12, pursuant to the procedures specified in
Section 2.6.12(b). 

 

        "Agreement" means, on any date, this Credit Agreement as originally in effect on the Effective Date and as thereafter from time to time
amended, supplemented, amended and restated, or otherwise modified and in effect on such date. 

        "Alternate Base Rate" means, on any date and with respect to all Base Rate Loans, a fluctuating rate of interest per annum equal to the
highest of: 

        (a)   the
rate of interest announced publicly by Citibank in New York, New York, from time to time, as Citibank's "base rate"; and 

        (b)   1/2
of 1% per annum above the Federal Funds Effective Rate. 

Each
change in any interest rate provided for herein based upon the Alternate Base Rate resulting from a change in the Alternate Base Rate shall take effect at the time of such change in the Alternate
Base Rate. 

        "Anticipated Repatriation Costs" means, on any date of determination for any period, an amount equal to the product of (a) 35%
times (b) the excess (if any) of (i) the amount of any Distributions or Net Intercompany Loan Proceeds received and retained by the Permitted International Subsidiary during such period
(the "retained portion") over (ii) the sum of
(A) the outstanding principal amount of intercompany loans from the Borrower or a Permitted Domestic Affiliate to the Permitted International Subsidiary on such date of determination  plus
(B) payments of principal of and interest on Indebtedness of the Borrower to creditors of the Permitted International Subsidiary or
Subsidiaries of the Permitted International Subsidiary made by the Permitted International Subsidiary or Subsidiaries of the Permitted International Subsidiary during such period  plus (C) the
Freely Distributable Amount on such date of determination. 

        "Applicable Margin" means, for any day with respect to any LIBO Rate Loans, the LIBOR Applicable Margin and for any day with respect to
Base Rate Loans, the Base Rate Applicable Margin. 

        "Approved Funds" means, with respect to any Lender that is a fund that invests in commercial loans, any other fund that invests in
commercial loans and is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 

        "Assignee" has the meaning set forth in Section 10.11.1. 

        "Assignment Agreement" means an Assignment Agreement substantially in the form of  Exhibit C. 

        "Assignor" has the meaning set forth in Section 10.11.1. 

        "Authorized Representative" means, relative to any Person, those of its officers and employees whose signatures and incumbency shall have
been certified to the Administrative Agent and the Lenders pursuant to Section 5.1.3. 

        "Availability Period" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the
date of termination of the Commitments. 

        "Base Rate Applicable Margin" is 2.50% per annum. 

        "Base Rate Loan" means a Loan bearing interest at a fluctuating rate of interest per annum determined by reference to the Alternate Base
Rate plus the Base Rate Applicable Margin from time to time in effect. 

        "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; or (c) 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. 

2

 

        "Borrower Security Agreement" means the Security Agreement dated as of April 27, 2004 between the Borrower and the Administrative
Agent, substantially in the form of Exhibit D, as amended, supplemented, amended and restated or otherwise modified and in effect from time to
time. 

        "Borrowing" means Loans of the same type and, in the case of LIBO Rate Loans having the same Interest Period, made by all Lenders on the
same Business Day and pursuant to the same Borrowing Request in accordance with Section 2.3. 

        "Borrowing Request" means a loan request and certificate duly executed by an Authorized Representative of the Borrower, substantially in
the form of Exhibit A. 

        "Business Day" means: 

        (a)   any
day which is neither a Saturday or Sunday nor a legal holiday on which the Lenders are authorized or required to be closed in New York, New York; and 

        (b)   relative
to the making, continuing, prepaying or repaying of any LIBO Rate Loans, any day on which dealings in Dollars are carried on in the London interbank market. 

        "BV Holdings" means Mission Energy Holdings International Inc., a Delaware corporation. 

        "Capital Stock" means 

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

        (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 capitalized leases, and, for purposes of each Loan Document, the amount of such obligations shall be the capitalized amount thereof, determined
in accordance with GAAP. 

        "Cash Collateralize" means to pledge and deposit with or deliver to the Administrative Agent in accordance with  Section 2.6.13, for the ratable benefit of the
Administrative Agent, the Issuing Lenders and the Lenders, as collateral for the LC Exposures,
cash or deposit account balances pursuant to documentation in form and substance satisfactory to the Administrative Agent and the Issuing Lenders. 

        "Cash Disbursements" means, in respect of any period, an amount equal to the aggregate amount of all Obligations due and payable with
respect to Recourse Debt during such period. 

        "Cash Equivalent Investment" means, at any time: 

        (a)   any
evidence of Indebtedness, maturing not more than one year after such time, issued or guaranteed by the United States government or an agency thereof; or 

        (b)   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 less than 180 days. 

        "CERCLIS" means the Comprehensive Environmental Response Compensation Liability Information System List. 

3

 

        "Citibank" means Citibank, N.A., a national banking association. 

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

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Collateral" has the meaning set forth in the Borrower Security Agreement. 

        "Collateral Account" has the meaning set forth in the Borrower Security Agreement. 

        "Collateral Parties" means, collectively, Anacapa Energy Company, a California corporation, Silverado Energy Company, a California
corporation, Viejo Energy Company, a California corporation, Del Mar Energy Company, a California corporation, Mission del Cielo, Inc., a Delaware corporation, Edison Mission Holdings Co., a
California corporation, Midwest Generation EME, LLC, a Delaware limited liability company, Camino Energy Company, a California corporation, Southern Sierra Energy Company, a California corporation,
San Joaquin Energy Company, a California corporation and Western Sierra Energy Company, a California corporation. 

        "Collins Leases" means each of the Facility Leases identified on Schedule 1.1(c). 

        "Commitment" means, with respect to each Lender, the commitment, if any, of such Lender to make Loans and to acquire participations in
Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Credit Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.2.5 or Section 3.1 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 10.11.1. The initial amount of each Lender's Commitment is set forth on  Schedule 1.1(b)
, or in the Assignment Agreement pursuant to which such Lender shall have assumed its Commitment, as applicable. 

        "Commitment Amount" means $98,000,000, as the same may be reduced in accordance with  Section 2.2.5 or Section 3.1. 

        "Communications Agreement" means the Communications Agreement dated as of April 27, 2004 between the Borrower and the
Administrative Agent, substantially in the form of Exhibit F, as amended, supplemented, amended and restated or otherwise modified and in effect
from time to time. 

        "Computation Date" has the meaning specified in Section 2.6.12. 

        "Consolidated Net Worth" means, at any date, the consolidated stockholders' equity of the Borrower and its Consolidated Subsidiaries
determined as of such date without giving effect to (a) any non-cash charges relating to the termination of the Collins Leases and impairment of related assets and (b) any
accumulated other comprehensive gain or loss after December 31, 2003 plus, to the extent not otherwise included therein, (i) the
liquidation preference at such date of non-redeemable preferred stock of the Borrower and (ii) to the extent not included therein, Equity Preferred Securities. 

        "Consolidated Subsidiary" means, at any date, any Subsidiary or other entity the accounts of which would be consolidated with those of the
Borrower in its consolidated financial statements if its consolidated financial statements were prepared as of such date. 

        "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 

4

 

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. 

        "Continuation/Conversion Notice" means a notice of continuation or conversion and certificate duly executed by an Authorized
Representative of the Borrower, substantially in the form of Exhibit B. 

        "Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound. 

        "Contractual Restrictions" mean Contractual Obligations of the Borrower or any of its Subsidiaries limiting or restricting any of the
following activities of the Borrower or any of its Subsidiaries: (a) Restricted Payments, (b) the repayment or prepayment of intercompany notes or other intercompany
obligations or reimbursements of management and other intercompany charges, expenses or accruals or other returns on investment, (c) disposition of assets, (d) incurrence of
Indebtedness, (e) issuance of equity or (f) activities related to the foregoing. 

        "Controlled Group" means all members of a controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the Borrower, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of
ERISA. 

        "Correlative Financing Provisions" means (a) with respect to each Financed Enterprise with respect to any provision in  Section 7.2, the most restrictive
correlative provision or provisions in the Effective Date Financing Documentation or in the documentation
governing any Permitted Refinancing Indebtedness refinancing or replacing such Effective Date Financing Documentation and (b) with respect to each Financed Enterprise with respect to any other
provision (other than any provision in Section 7.2) in this Agreement, the most restrictive correlative provision or provisions in the Effective
Date Financing Documentation or in the documentation governing any Permitted Refinancing Indebtedness refinancing or replacing such Effective Date Financing Documentation, as the same may from time to
time be amended, supplemented, amended and restated or otherwise modified and in effect on such date. 

        "Credit Exposure" means, with respect to a Lender at any time, the sum of the outstanding
principal amount of such Lender's Loans and LC Exposure at such time. 

        "Credit Extension" means and includes (a) any Borrowing and (b) any Issuance of, or participation in, any Letters of Credit. 

        "CSFB" means Credit Suisse First Boston, acting through its Cayman Islands branch. 

        "Current Disposition" shall have the meaning set forth in Section 3.1.2(a). 

        "Debt Rating" means, with respect to any Person, a rating of such Person's long-term debt which is not secured or supported by
a guarantee, letter of credit or other form of credit enhancement. If Moody's or S&P shall have changed its system of classifications after the date hereof, a Debt Rating shall be considered to be at
or above a specified level if it is at or above the new rating which most closely corresponds to the specified level under the old rating system. 

        "Default" means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both, would constitute
an Event of Default. 

5

 

        "Derivatives Obligations" of any Person means all obligations of such Person in respect of any rate swap transaction, basis swap, forward
rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of the
foregoing transactions) or any combination of the foregoing transactions. For purposes of determining the Recourse Debt to Recourse Capital Ratio on any date, the Derivatives Obligations of the
Borrower shall be determined on a "mark to market" basis on such date. 

        "Disposition" means any sale, assignment, transfer or other disposition of all or any substantial part of its property (whether now owned
or hereafter acquired) by the Borrower or any Collateral Party (or any Subsidiary of a Collateral Party) to any other Person. The verb "Dispose" shall
have a correlative meaning. Notwithstanding the foregoing, the following items shall not be deemed to be Dispositions: 

        (a)   any
assignment of property for security purposes to the extent not prohibited by this Agreement; 

        (b)   any
sale, assignment, transfer or other disposition of any property sold or disposed of in the ordinary course of business and on ordinary business terms; 

        (c)   any
single transaction or series of related transactions that involve assets having a fair market value of less than $15,000,000; 

        (d)   the
sale or other disposition of cash or Cash Equivalent Investments; 

        (e)   the
incurrence of Liens permitted pursuant to Section 7.2.2 and the disposition of assets related thereto by the
secured party pursuant to a foreclosure; 

        (f)    an
Investment that is permitted pursuant to Section 7.2.3; 

        (g)   any
sale or lease of obsolete equipment or other assets that are no longer being used by the Borrower or any of its Subsidiaries; and 

        (h)   a
disposition resulting from the exercise by a governmental authority of its claimed or actual power of eminent domain, in each case without compensation. 

        "Distributions" means, with respect to any period (computed without duplication) each of the following to the extent received or available
to be received by the Borrower or the Permitted International Subsidiary: (a) any cash interest on intercompany loans to Subsidiaries, (b) cash principal payments on intercompany loans
to Subsidiaries extended in prior periods, (c) distributions or dividends constituting a return on capital, (d) distributions, dividends or other payments constituting a return of
capital to the extent the same relates to costs and expenses directly or indirectly incurred by the Borrower in the development or construction of electric generation facilities or oil and gas
properties that are subsequently financed by Indebtedness secured by such facilities or properties and (e) management fees paid in cash. 

        "Dollar" and the sign "$" mean lawful money of the United States. 

        "Dollar Equivalent" means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such time and
(b) as to any amount denominated in any Offshore Currency or Agreed Alternate Currency, the equivalent amount in Dollars as determined at such time on the basis of the Spot Rate for the
purchase of Dollars with such Offshore Currency or Agreed Alternate Currency on the most recent Computation Date. 

        "Domestic Office" means, relative to any Lender, the office of such Lender designated on  Schedule 1.1(b) or designated in the Assignment Agreement pursuant to which
such Lender became a Lender hereunder or such other office of a
Lender (or any successor or assign of such Lender) within 

6

 

the
United States as may be designated from time to time by notice from such Lender, as the case may be, to each other Person party hereto. A Lender may have separate Domestic Offices for purposes of
making, maintaining or continuing, as the case may be, Base Rate Loans. 

        "Edison International" means Edison International, a California corporation. 

        "Edison Mission Group" means Edison Mission Group, a California corporation. 

        "Effective Date" means the date this Agreement becomes effective pursuant to  Section 5.1. 

        "Effective Date Financing Documentation" means, with respect to each Financed Enterprise, documentation governing each Financing of such
Financed Enterprise as in effect on the Effective Date. 

        "Environmental Laws" means all applicable Federal, state or local statutes, laws, ordinances, codes, rules, regulations and guidelines
(including consent decrees and administrative orders) relating to Hazardous Materials and/or to public health and protection of the environment, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, and the Resource Conservation and Recovery Act, as amended. 

        "Equity Issuance" means (a) any issuance or sale by the Borrower or any of its Subsidiaries after the Effective Date of
(i) any of its Capital Stock, (ii) any warrants or options exercisable in respect of its Capital Stock (other than any warrants or options issued to directors, officers or employees of
the Borrower or any of its Subsidiaries pursuant to employee benefit plans established in the ordinary course of business and any Capital Stock of the Borrower issued upon the exercise of such
warrants or options) or (iii) any other security or instrument representing an equity interest (or the right to obtain any equity interest) in the Borrower or any of its Subsidiaries or
(b) the receipt by any of the Borrower's Subsidiaries after the Effective Date of any capital contribution (whether or not evidenced by any equity security issued by the recipient of such
contribution); provided that Equity Issuance shall not include (x) any such issuance or sale described in clause (a) above by any
Subsidiary of the Borrower to the Borrower or any direct or indirect Subsidiary of the Borrower or (y) any capital contribution by the Borrower or any direct or indirect Subsidiary of the
Borrower to any Subsidiary of the Borrower. 

        "Equity Preferred Securities" means securities issued by the Borrower (a) that are not subject to mandatory redemption or the
underlying securities, if any, of which are not subject to mandatory redemption, (b) that are perpetual or mature no less than 30 years from the date of issuance, (c) the
indebtedness issued in connection with which, including any guaranty, is subordinate in right of payment to the unsecured and unsubordinated indebtedness of the issuer of such indebtedness or
guaranty, and (d) the terms of which permit the deferral of payment of interest or distributions thereon to the date occurring after the Maturity Date. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, together with
the regulations thereunder, in each case as in effect from time to time. References to sections of ERISA also refer to any successor sections. 

        "Event of Default" has the meaning set forth in Section 8.1. 

        "Excluded Taxes" means, with respect to the Administrative Agent, the Issuing Lenders or any Lender or any other recipient of any payment
to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise Taxes imposed on (or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located,
(b) any branch profits Taxes imposed by the United States of America or any similar Tax imposed by any other jurisdiction in which it is located (other than a jurisdiction in which it is
treated as being located solely by reason of its participation in transactions contemplated by the Loan 

7

 

Documents),
(c) in the case of a Non-U.S. Lender, any Tax that is imposed on amounts payable to such Non-U.S. Lender at the time such Non-U.S. Lender becomes
a party to this Agreement, except to the extent that such Non-U.S. Lender's assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower with
respect to such Tax pursuant to Section 4.7(a) and (d) in the case of a Non-U.S. Lender, any Tax that is attributable to such
Non-U.S. Lender's failure or inability to comply with Section 4.7(e). 

        "Federal Funds Effective Rate" means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three (3) Federal funds brokers of recognized standing selected by it. 

        "Fee Letters" means (a) the Fee Letter dated as of April 2, 2004 between the Borrower, CNAI, CSFB, JPMS and Lehman, as
amended, supplemented, amended and restated or otherwise modified and in effect from time to time and (b) each Fee Letter between the Borrower and any Issuing Lender, as each such Issuing
Lender Fee Letter may be amended, supplemented, amended and restated or otherwise modified and in effect from time to time. 

        "Financed Enterprise" means, individually, each Financed Subsidiary and each Joint Enterprise. 

        "Financed Subsidiary" means as of the Effective Date, each Collateral Party and each Subsidiary of a Collateral Party with a Financing. 

        "Financing" means, with respect to any Person, either Indebtedness of such Person or Lease Obligations of such Person, or a combination of
both. 

        "Fiscal Quarter" means any quarter of a Fiscal Year. 

        "Fiscal Year" means any period of twelve consecutive calendar months ending on December 31; references to a Fiscal Year with a
number corresponding to any calendar year (e.g., the "2003 Fiscal Year") refers to the Fiscal Year ending on December 31 occurring during such
calendar year. 

        "Freely Distributable Amount" means, on any date of determination for any period, an amount (computed on the basis of the amounts reported
or reflected on the most recently filed consolidated U.S. Federal income tax return and all subsequent filings for the Borrower and its Subsidiaries) equal to the  sum of (a) amounts which if
distributed by the Permitted International Subsidiary during such period would be excluded from U.S. taxation, as
previously taxed, under section 959 of the Code, or any successor provision plus (b) amounts which if distributed by the Permitted
International Subsidiary during such period would constitute a nontaxable return of capital under section 301(c)(2) of the Code, or any successor provision  plus (c) amounts accrued and payable
representing any arms length royalty payment, administrative service fee, technical services fee,
contractual payment obligation or any arms length contractual fee owed by the Permitted International Subsidiary to a Permitted Domestic Affiliate. 

        "F.R.S. Board" means the Board of Governors of the Federal Reserve System or any successor thereto. 

        "Funds Flow from Operations" means, for any period, the sum of the following (computed
without duplication) (a) Distributions received or available to be received by the Borrower and the Permitted International Subsidiary during such period  plus (b) positive Net Intercompany
Loan Proceeds for such period (or less negative Net
Intercompany Loan Proceeds for such period) less (c) Anticipated Repatriation Costs plus
(d) Distributions made by the Permitted International Subsidiary plus (e) cash received (if any) by the Borrower during such period
pursuant to Tax Sharing Agreements less (f) cash 

8

 

paid
(if any) by the Borrower during such period pursuant to Tax Sharing Agreements plus (g) cash received (if any) as tax refunds on foreign,
federal or state income taxes less (h) cash paid (if any) on foreign, federal or state income tax obligations  plus (i) interest income received
or available to be received by the Borrower and Permitted International Subsidiary during such period
less (j) Operating Expenses and Permitted International Subsidiary Expenses during such period. 

        "GAAP" has the meaning set forth in Section 1.4. 

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

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

        "Granting Lender" has the meaning set forth in Section 10.11.1(e). 

        "Hazardous Material" means: 

        (a)   any
"hazardous substance", as defined by any Environmental Law; 

        (b)   any
"hazardous waste", as defined by any Environmental Law; 

        (c)   any
petroleum product (including crude oil or any fraction thereof); or 

        (d)   any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material, force or substance (including polychlorinated biphenyls, urea-formaldehyde
insulation, asbestos or radioactivity) that is regulated pursuant to or could give rise to liability under any Environmental Law. 

        "herein", "hereof", "hereto",
"hereunder" and similar terms contained in any Loan Document refer to such Loan Document as a whole and not to any particular Section, paragraph or
provision of such Loan Document. 

        "including" means including without limiting the generality of any description preceding such term, and, for purposes of each Loan
Document, the parties thereto agree that the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed by or
referable to an enumeration of specific matters, to matters similar to the matters specifically mentioned. 

        "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
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 Equivalent Investments), 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 

9

 

(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; 

        (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. 

        "Indemnified Liabilities" has the meaning set forth in Section 10.4(a). 

        "Indemnified Parties" has the meaning set forth in Section 10.4(a). 

        "Indemnified Taxes" means Taxes other than Excluded Taxes. 

        "Initial Issuing Lenders" means CNAI in its capacity as an issuer of Letters of Credit. 

        "Interest Coverage Ratio" means, for any period, the ratio of (a) Funds Flow from Operations during such period to
(b) Interest Expense for such period, provided that, upon the occurrence and continuation of a Significant Collateral Party Event subsequent to
the commencement of the period for which the Interest Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Interest Coverage Ratio is
made, then the Consolidated Interest Coverage Ratio will be calculated giving Pro Forma effect to the assumption that no Distributions were made or available to be made to the Borrower by each
Collateral Party or any Subsidiary of a Collateral Party that gives rise to a Significant Collateral Party Event, as if the same had occurred at the beginning of the such period. 

        "Interest Expense" means the accrued interest expense of all the Borrower's senior recourse indebtedness, but shall exclude any
intercompany obligation on which interest or the equivalent is received by the Borrower. 

        "Interest Period" means, relative to any LIBO Rate Loan, the period beginning on (and including) the date on which such LIBO Rate Loan is
made or continued as, or converted into, a LIBO Rate Loan pursuant to Section 2.3 or 2.4 and
shall end on (but exclude) the day which numerically corresponds to such date one, two, three or six months thereafter (or, if such month has no numerically corresponding day, on the last Business Day
of such month), in either case as the Borrower may select in its relevant notice pursuant to Section 2.3 or  2.4; provided, however, that (a) if such Interest
Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next following Business Day (unless, if such Interest Period applies to LIBO Rate Loans, such
next following Business Day is the first Business Day of a calendar month, in which case such Interest Period shall end on the Business Day next preceding such numerically corresponding day) and
(b) no Interest Period may end later than the "Maturity Date". 

10

   
        "Investment" means, relative to any Person: 

        (a)   any
loan or advance made by such Person to any other Person (excluding commission, travel and similar advances to officers and employees made in the ordinary course of
business); 

        (b)   any
Contingent Liability of such Person; and 

        (c)   any
ownership or similar interest held by such Person in any other Person. 

The
amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon (and without adjustment by reason of the financial condition of
such other Person) and shall, if made by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair market value of
such property. 

        "ISP" means the International Standby Practices as set forth in the International Chamber of Commerce Publication No. 590, or such
later revision thereof in effect at the time of an Issuance of a Letter of Credit. 

        "Issuance Date" means the date on which a Letter of Credit is Issued pursuant to  Section 2.6. 

        "Issue" means, with respect to any Letter of Credit, to issue or to extend the expiry of, to amend or to renew or to increase the amount
of, such Letter of Credit; and the terms "Issued", "Issuing" and
"Issuance" have corresponding meanings. 

        "Issuing Lenders" means the Initial Issuing Lender and each other Person as may have subsequently been appointed as a successor or an
additional Issuing Lender pursuant to Section 2.6.11. 

        "Joint Enterprise" means a general partnership, limited partnership, joint venture or similar entity in which a Collateral Party or a
Subsidiary of a Collateral Party is a partner, joint venturer or equity participant. The term "Joint Enterprise" shall exclude, to the extent included, partnerships or other business entities included
in the definition of "Subsidiary". 

        "JPMS" means J.P. Morgan Securities Inc. 

        "LC Collateral Account" means an account established in the name of the Borrower but under the exclusive dominion and control of the
Administrative Agent, which 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 102(a)(29) of the UCC). 

        "LC Disbursement" means a payment made by any Issuing Lender pursuant to a Letter of Credit. 

        "LC Exposure" means, at any time, the Required Commitment Amount at such time minus any
Cash Collateralized amounts. The LC Exposure of any Lender at any time shall be its Percentage of the total LC Exposure at such time. 

        "Lease Obligations" means rent, supplemental rent, termination value, or a similar monetary obligation under, or pursuant to, a lease or
related documents in connection with a leveraged lease transaction (including Contingent Liabilities related thereto). 

        "Lehman" means Lehman Brothers Inc. 

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

        "Letter of Credit" means any letter of credit issued pursuant to this Agreement. 

        "Letter of Credit Application" has the meaning set forth in Section 2.6.2. 

11

 

        "Letter of Credit Documents" means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements,
instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing or providing for (a) the rights and obligations of the parties
concerned or at risk with respect to such Letter of Credit or (b) any collateral security for any of such obligations, each as the same may be amended, supplemented, amended and restated or
otherwise modified and in effect from time to time. 

        "Leveraged Lease Basic Documents" means the Basic Documents as defined in the Leveraged Lease Participation Agreement. 

        "Leveraged Lease Participation Agreement" means, collectively (a) the Participation Agreement dated as of August 17, 2000 by
and among Midwest, the Borrower, Powerton Trust I, Powerton Generation I, LLC, Wilmington Trust Company, United States Trust Company of New York, as Lease Indenture Trustee and United States Trust
Company of New York, as Pass Through Trustee; (b) the Participation Agreement dated as of August 17, 2000 by and among Midwest, the Borrower, Powerton Trust II, Powerton Generation II,
LLC, Wilmington Trust Company, United States Trust Company of New York, as Lease Indenture Trustee and United States Trust Company of New York, as Pass Through Trustee; (c) the Participation
Agreement dated as of August 17, 2000 by and among Midwest, the Borrower, Joliet Trust I, Joliet Generation I, LLC, Wilmington Trust Company, United States Trust Company of New York, as Lease
Indenture Trustee and United States Trust Company of New York, as Pass Through Trustee; and (d) the Participation Agreement dated as of August 17, 2000 by and among Midwest, the
Borrower, Joliet Trust II, Joliet Generation II, LLC, Wilmington Trust Company, United States Trust Company of New York, as Lease Indenture Trustee and United States Trust Company of New York, as Pass
Through Trustee, in each case, as amended, supplemented, amended and restated or otherwise in effect from time to time. 

        "Leveraged Lease Transaction" means the transaction consummated pursuant to the Leveraged Lease Participation Agreement and the Leveraged
Lease Basic Documents." 

        "LIBO Rate" means, for each day during each Interest Period for each LIBO Rate Loan, the rate per annum determined on the basis of the
rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Telerate Service Page 3750 as of 11:00 a.m., London
time, two (2) Business Days prior to the beginning of such Interest Period. In the event that such rate does not appear on Telerate Service Page 3750, the "LIBO
Rate" shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative Agent or, in
the absence of such availability, by reference to the rate at which the Administrative Agent is offered Dollar deposits at or about 11:00 a.m., New York City time, two (2) Business Days
prior to the beginning of such Interest Period in the interbank eurodollar market where its eurodollar and foreign currency and exchange operations are then being conducted for delivery on the first
day of such Interest Period for the number of days comprised therein. Notwithstanding any other provision hereof, at such time as there shall exist for any Lender a LIBOR Reserve Percentage which is
greater than zero, the LIBO Rate used in the determination of LIBO Rate Loans made by such Lender shall be the LIBO Rate (Reserve Adjusted). 

        "LIBO Rate Loan" means a Loan bearing interest, at all times during an Interest Period applicable to such Loan at a fixed rate of interest
per annum determined by reference to the LIBO Rate plus the LIBOR Applicable Margin from time to time in effect. 

        "LIBO Rate (Reserve Adjusted)" means, relative to any Loan to be made, continued or maintained as, or converted into, a LIBO Rate Loan for
any Interest Period, a rate per annum (rounded upwards, 

12

 

if
necessary, to the nearest whole multiple of l/100 of 1%) determined pursuant to the following formula: 

	 	LIBO Rate (Reserve Adjusted)	 	=	 	LIBO Rate
	 	 	 	 	
 1.00—LIBOR Reserve Percentage

The
LIBO Rate (Reserve Adjusted) for any Interest Period for LIBO Rate Loans will be determined by the Administrative Agent on the basis of the LIBOR Reserve Percentage in effect on, and the
applicable rates furnished to and received by the Administrative Agent, two (2) Business Days before the first day of such Interest Period. 

        "LIBOR Applicable Margin" is 3.50% per annum. 

        "LIBOR Office" means, relative to any Lender, the office of such Lender designated as such on  Schedule 1.1(b) or designated in the Assignment Agreement or such
other office of a Lender as designated from time to time by notice from such
Lender to the Borrower and the Administrative Agent pursuant to Section 4.4, whether or not outside the United States, which shall be making or
maintaining LIBO Rate Loans of such Lender hereunder. 

        "LIBOR Reserve Percentage" means, relative to any Interest Period for LIBO Rate Loans, the reserve percentage (expressed as a decimal)
equal to the aggregate reserve requirements (including all basic, emergency, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled changes
in reserve requirements) specified under regulations issued from time to time by the F.R.S. Board and then applicable to assets or liabilities consisting of and including "Eurocurrency Liabilities",
as currently defined in Regulation D of the F.R.S. Board, having a term approximately equal or comparable to such Interest Period. 

        "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. 

        "Loan" has the meaning set forth in Section 2.1. 

        "Loan Documents" means (a) this Agreement, (b) the Borrower Security Agreement, (c) the Communications Agreement,
(d) the Fee Letters, (e) the Letter of Credit Documents and (f) the other agreements, documents and instruments delivered in connection with this Agreement, including each
Borrowing Request and each Continuation/Conversion Notice. 

        "Material Adverse Effect" means any event, development or circumstance that has had or would reasonably be expected to have a material
adverse effect on (a) the business, assets, property, condition (financial or otherwise) or operations of the Borrower and its Subsidiaries, taken as a whole since the Effective Date,
(b) the ability of the Borrower to perform its obligations under any of the Loan Documents or (c) the aggregate value of the Collateral or the validity, enforceability or priority of the
security interests granted in favor of the Lenders pursuant to the Borrower Security Agreement granting a security interest in the Collateral. 

        "Maturity Date" means April 27, 2007. 

        "MEHC" means Mission Energy Holding Company, a Delaware corporation. 

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

        "Midwest Credit Agreement" means the Credit Agreement dated as of April 27, 2004 between Midwest, the Administrative Agent, the
Lenders party thereto and the Issuing Lenders party thereto, as it may be amended, supplemented, amended and restated or otherwise modified and in effect from time to time. 

13

 

        "Midwest Notes" mean the 8.75% Second Priority Senior Secured Notes in an aggregate principal amount of $1,000,000,000 issued on the date
of and pursuant to an indenture dated as of the date hereof among Midwest and The Bank of New York, as trustee. 

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

        "Net Cash Proceeds" means, in connection with any Disposition of a Collateral Party or of the assets or property of a Collateral Party (or
a Subsidiary of a Collateral Party), the cash proceeds (or proceeds consisting of Cash Equivalent Investments) received by such Person from such Disposition, reduced by (a) the amount of any
legal, title, and recording tax expenses, commissions and other fees, costs and expenses directly or indirectly incurred by such Person as a result of such Disposition, (b) the amount of any
Taxes, incurred by such Person by reason of such Disposition and, in the case of any Subsidiary of the Borrower, after reduction by the amount of any Taxes incurred by such Subsidiary by reason of the
transfer of such proceeds directly or indirectly to the Borrower or the receipt of such proceeds, and (c) repayments of Indebtedness to the extent that the transferee of (or holder of a Lien
on) the property subject to such Disposition requires that such Indebtedness be repaid as a condition to the Disposition of such property. 

        "Net Intercompany Loan Proceeds" means, for any period, (a) cash proceeds of intercompany loans received by the Permitted
International Subsidiary during such period minus (b) the amount of principal payments on intercompany loans paid or due and payable by the
Permitted International Subsidiary during such period as a result of demand for payment by the payee or the maturity of intercompany loan (upon the occurrence of the stated maturity, acceleration of
the maturity or otherwise). 

        "Net Tangible Assets" means, as of the date of any determination thereof, the total amount of all assets of the Borrower and its
Subsidiaries (determined on a consolidated basis in accordance with GAAP), less the sum of (a) the consolidated current liabilities of the
Borrower and its Subsidiaries (determined on a consolidated basis in accordance with GAAP) and (b) assets properly classified as "intangible assets" in accordance with GAAP. 

        "Non-Recourse Debt" means Indebtedness which the Borrower is not directly or indirectly obligated to repay. 

        "Non-Recourse Persons" means the Affiliates of the Borrower, including Edison Mission Group, Edison International, MEHC and
Southern California Edison Company, and the officers, directors, employees, shareholders, agents, Authorized Representatives and other controlling persons of the Borrower or any of its Affiliates,  provided that in no event shall the Borrower be deemed to be a Non-Recourse Person. 

        "Non-U.S. Lender" has the meaning set forth in Section 4.7(e). 

        "Obligations" means with respect to any Indebtedness of any Person (collectively, without duplication): (i) all debt, financial
liabilities and obligations of such Person of whatsoever nature and howsoever evidenced (including, but not limited to, 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, without limitation, Loan 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; (ii) any and all sums advanced by the Administrative Agent or any other Person in order to
preserve the Collateral or any other collateral securing such Indebtedness or 

14

 

to
preserve the Liens and security interests in the Collateral or any other collateral, securing such Indebtedness; and (iii) the costs and expenses of collection and enforcement of the
obligations referred to in clauses (i) and (ii) (including, without limitation, (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 Administrative Agent or any other Person of its rights under the Borrower
Security Agreement or any other security documents and (C) reasonable attorneys' fees and court costs). 

        "Offshore Currency" means at any time Australian dollars, English pounds sterling, Euros and New Zealand dollars. 

        "Operating Expenses" means, for any period, all amounts accrued or available to be accrued by the Borrower in the conduct of its business
during such period, including utilities, general and administrative expenses, employee salaries, wages and other employment-related costs, fees for letters of credit, surety bonds and performance
bonds. Operating Expenses do not include federal and state Taxes, depreciation or amortization, and other non-cash charges. 

        "Organic Document" means, with respect to any Person that is a corporation, its certificate of incorporation, its by-laws and
all shareholder agreements, voting trusts and similar arrangements applicable to any of its authorized shares of capital stock; with respect to any Person that is a limited liability company, its
certificate of formation and its limited liability agreement, and, with respect to a private limited liability company, its deed of incorporation, its articles of association, all shareholders
agreements, if any, and the shareholders register in each case, as from time to time amended, supplemented, amended and restated, or otherwise modified and in effect from time to time. 

        "Other Taxes" means any and all present or future stamp or documentary Taxes or any other excise or property Taxes, charges or similar
levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document. 

        "Participant" has the meaning set forth in Section 10.11.2. 

        "Partnership" means a general partnership, limited partnership, joint venture or similar entity in which the Borrower or a Subsidiary is a
partner, joint venturer or equity participant. The term "Partnership" shall exclude, to the extent included, partnerships or other business entities included in the definition of "Subsidiary". 

        "PBGC" means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA. 

        "Pension Plan" means a "pension plan", as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
(other than a multiemployer plan as defined in Section 4001(a)(3) of ERISA), and to which the Borrower or any corporation, trade or business that is, along with the Borrower, a member of a
Controlled Group, has any liability, including any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five
years, or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA. 

        "Percentage" means, at the time of determination, the sum of the amount of such Lender's
Loans, LC Exposure and unused Commitments divided by the sum of the total amount of Loans, LC Exposure
and unused Commitments. 

        "Permitted Domestic Affiliate" means (a) Edison Mission Project Co. ("EMP"),
(b) BV Holdings, (c) EME UK International LLC ("EME UK"), (d) EME Southwest Power Corporation ("EME
Southwest") and (e) any other Person that becomes a direct wholly-owned Subsidiary of EMP, BV Holdings, EME UK or EME Southwest (each a "Subject
Subsidiary" and, together with EMP, BV Holdings, EME UK and EME Southwest, the "Domestic Affiliates") so long as on any date of 

15

 

determination:
(a) (i) in the case of EMP and BV Holdings, such Person is a direct wholly-owned Subsidiary of the Borrower; (ii) in the case of EME UK and EME Southwest, such Person is
either (A) a direct wholly-owned Subsidiary of BV Holdings or (B) a direct wholly-owned Subsidiary of a Subject Subsidiary of BV Holdings; and (iii) in the case of each Subject
Subsidiary, such Subject Subsidiary is a direct wholly-owned Subsidiary of EMP, BV Holdings, EME UK or EME Southwest; (b) such Domestic Affiliate owns directly or through another Domestic
Affiliate an equity interest in the Permitted International Subsidiary; (c) such Domestic Affiliate does not have any outstanding Indebtedness (other than (i) Indebtedness incurred in
the ordinary course of business of the nature described in clauses (b), (e) and  (f) of the definition of
"Indebtedness" or (ii) intercompany loans payable to another Domestic
Affiliate or the Borrower); (d) such Domestic Affiliate does not have any Liens against its property or assets (other than Liens of the nature described in clauses
(b), (c) and (d) of  Section 7.2.2); (e) such Domestic Affiliate is not and
cannot be restricted directly or indirectly from making payments or distributions
to the Borrower (or to the Domestic Affiliate that is the parent of such Domestic Affiliate) pursuant to restrictive agreements or arrangements; and (f) such Domestic Affiliate is not
restricted directly or indirectly from making payments or distributions to the Borrower (or to the Domestic Affiliate that is the parent of such Domestic Affiliate) as a matter of law (whether by
virtue of the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, any dissolution, winding up or liquidation
proceeding, any appointment of a trustee, receiver, sequestrator or other custodian or otherwise). 

        "Permitted International Subsidiary" means MEC International B.V. ("MECI") so long as on
any date of determination: (a) MECI is an indirect wholly-owned Subsidiary of the Borrower owned by the Borrower through the Permitted Domestic Affiliates; (b) MECI does not have any
outstanding Indebtedness (other than (i) Indebtedness incurred in the ordinary course of business of the nature described in clauses (b),  (e) and
(f) of the definition of "Indebtedness",
(ii) intercompany loans payable to its Subsidiaries or the Borrower or (iii) Indebtedness described in clause (c)(ii) below);
(c) MECI does not have any Liens against its property or assets (other than (i) Liens of the nature described in clauses (b),  (c) and
(d) of Section 7.2.2 or (ii) Liens
on equity interests in its Subsidiaries for the benefit of financial institutions or noteholders (or an agent or trustee on their behalf) providing financing directly or indirectly to such
Subsidiaries) and such financial institutions or noteholders (or such agent or trustee) have not commenced remedial action with respect to such Lien); (d) MECI is not and cannot be restricted
directly or indirectly from making payments or distributions to the Borrower pursuant to restrictive agreements or arrangements; and (e) MECI is not restricted directly or indirectly from
making payments or distributions to the Borrower as a matter of law (whether by virtue of the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any
bankruptcy or insolvency law, any dissolution, winding up or liquidation proceeding, any appointment of a trustee, receiver, sequestrator or other custodian or otherwise). 

        "Permitted International Subsidiary Expenses" means, for any period, all amounts accrued by the Permitted International Subsidiary in the
conduct of its business during such period, including utilities,
general and administrative expenses, employee salaries, wages and other employment-related costs, fees for letters of credit, surety bonds and performance bonds. 

        "Permitted Refinancing Indebtedness" means, with respect to any Person, any refinancing of a Financing of such Person issued in exchange
for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund (collectively, "refinance") other Financings of such
Person; provided, that (a) the aggregate principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not
exceed the aggregate principal amount (or accreted value, if applicable) of the Financing being refinanced (plus all accrued interest thereon and the
amount of all expenses and premiums in connection therewith), (b) the maturity date of the Permitted Refinancing Indebtedness is no earlier than the maturity date of the Financing being
refinanced and such Permitted Refinancing Indebtedness has a weighted average life to maturity equal to or greater than the weighted 

16

 

average
life to maturity of the Financing being refinanced, (c) subject to clause (d) below, any Contractual Restrictions incurred in connection with such Permitted Refinancing
Indebtedness are (as determined in good faith by the Borrower's Board of Directors, the determination of which shall be evidenced by a resolution of such Board of Directors) no more restrictive on
such Person or its Subsidiaries or Affiliates than the Financing being refinanced taken as a whole and (d) with respect to any refinancings within 12 months of the maturity date of such
Financing, such Permitted Refinancing Indebtedness may contain Contractual Restrictions that are in the written opinion of the Borrower's chief executive officer or chief financial officer required by
the lenders in order to obtain such refinancings, are customary for such refinancings and apply only to the assets of or revenues of the Person which is the subject of the refinancing. 

        "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. 

        "Powerton/Joliet Guarantees" means, collectively, (a) the Guaranty Agreement dated as of August 17, 2000 made by the
Borrower in favor of Powerton Trust I that, among other things, guarantees the payment by Midwest of certain liabilities payable to Powerton Trust I, (b) the Guaranty Agreement dated as of
August 17, 2000 made by the Borrower in favor of Powerton Trust II that, among other things, guarantees the payment by Midwest of certain liabilities payable to Powerton Trust II,
(c) the Guaranty Agreement dated as of August 17, 2000 made by the Borrower in favor of Joliet Trust I that, among other things, guarantees the payment by Midwest of certain liabilities
payable to Joliet Trust I and (d) the Guaranty Agreement dated as of August 17, 2000 made by the Borrower in favor of Joliet Trust II that, among other things, guarantees the payment by
Midwest of certain liabilities payable to Joliet Trust II. 

        "Powerton/Joliet Intercompany Notes" means the promissory notes of the Borrower dated as of August 24, 2000 having a stated
aggregate principal amount equal to $1,367,000,000, as such amount
may be reduced from time to time pursuant to the terms thereof, evidencing in each case a loan from Midwest to the Borrower. 

        "Pro Forma" means, with respect to a calculation, that such calculation is made in accordance with Regulation S-X under
the Securities Act and gives effect to all relevant modifications to contractual arrangements that have been made prior to, or are being made on, the calculation date;  provided, that in the case of a
calculation for any period occurring prior to the Effective Date, all contractual arrangements in effect on the
Effective Date shall be deemed to have been in effect for the entirety of such period. 

        "Quarterly Payment Date" means the last day of each March, June, September, and December or, if any such day is not a Business Day, the
next succeeding Business Day. 

        "Recourse Debt" means, on any date, the sum (without duplication) of the following indebtedness of the Borrower: (a) all
indebtedness for borrowed money other than Subordinated Debt; (b) all guarantees for (i) indebtedness of the Subsidiaries and (ii) rental expenses of the Subsidiaries;
(c) all reimbursement obligations with respect to surety bonds, letters of credit (to the extent not collateralized with cash or Cash Equivalent Investments), 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; and (e) Derivative Obligations. For purposes of the foregoing, (i) indebtedness of the Borrower shall exclude, to the extent
included, (A) indebtedness of the Borrower evidenced by the Powerton/Joliet Intercompany Notes for so long as amounts payable thereunder are subject to setoff against amounts paid under the
Powerton/Joliet Guarantees in accordance with the terms of the Powerton/Joliet Intercompany Notes; and (B) indebtedness of the Borrower under guarantees of rental expenses to the extent
attributable to lease indebtedness provided 

17

 

by
Subsidiaries under leasing transactions; and (ii) the amount of indebtedness of the Borrower under guarantees of rental expenses of the Subsidiaries on any date of determination shall be the
termination value under the related lease on such date of determination (adjusted so as to give effect to adjustments contemplated by  clause (i)(B) above, if applicable) plus reasonably anticipated indemnity or other similar
payments as of such date of determination; provided that the amount of indebtedness of the Borrower under each Powerton/Joliet Guarantee on any date of
determination shall be the Termination Value (or, if applicable, Special Termination Value) as defined in such Powerton/Joliet Guarantee on such date of determination  plus reasonably anticipated
indemnity or other similar payments as of such date of determination. 

        "Recourse Debt to Recourse Capital Ratio" means, on any date, the ratio of: (a) Recourse Debt on such date to (b) the sum on
such date of (i) Consolidated Net Worth on such date plus (ii) Recourse Debt. 

        "Register" has the meaning set forth in Section 10.11.1(b). 

        "Required Commitment Amount" means, at any time, (a) 100% of the aggregate undrawn amount of all outstanding Dollar denominated
Letters of Credit, (b) 110% of the Dollar Equivalent of the aggregate undrawn amount of all outstanding Offshore Currency denominated Letters of Credit, (c) the sum of the Dollar
Equivalent of the undrawn amount of each Agreed Alternate Currency denominated Letters of Credit each multiplied by its respective Agreed Alternate Percentage, (d) the aggregate amount of all
LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time and (e) all other amounts payable to an Issuing Lender under the Letter of Credit Documents. 

        "Required Lenders" means, at any time, Lenders having Credit Exposures and unused Commitments representing at least 50.01% of the  sum of the total Credit Exposures and
unused Commitments at such time. 

        "Requirement of Law" means, as to any Person, the Organic Documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other authority, in each case, applicable to or binding upon such Person or any of its Property or to which such Person or any of its property is subject. 

        "Restricted Payment" means any dividend (other than a dividend of the Borrower payable solely in common stock of the Borrower) on, or any
payment on account of, or setting apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares of any class of capital
stock of or other ownership interest or any warrants or options to purchase any such stock or ownership interest, whether now or hereafter outstanding, or making of any other distribution in respect
thereof, either directly or indirectly, whether in cash or property or in obligations of the Person making such dividend or payment. 

        "Restrictive Financing Documents" has the meaning set forth in Section 7.2.8. 

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

        "Significant Collateral Party Event" means the occurrence of a default in the payment when due (subject to any applicable grace period),
whether by acceleration or otherwise, of any Indebtedness of a Collateral Party or a Subsidiary of a Collateral Party or a default shall occur in the performance or observance of any obligation or
condition with respect to such Indebtedness if the effect of such default is to accelerate the maturity of any such Indebtedness or such default shall continue unremedied for any applicable period of
time sufficient to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause such Indebtedness to become due and payable prior to its expressed maturity, in
either case, such Indebtedness having a principal amount, individually or in the aggregate, in excess of $20,000,000; provided that a cure by such Financed Enterprise or a waiver of 

18

 

such
default (which such waiver shall not impose more restrictive conditions than the Correlative Financing Provisions (on such Financed Enterprise) by the holders of such Indebtedness shall
constitute a waiver or a cure of such default for the purposes of this Agreement. 

        "Solvent" means, with respect to any Person, on any date of determination: (a) the fair market value of its assets is in excess of
the total amount of its liabilities (including net contingent liabilities); (b) it is then able and expects to be able to pay its debts as they mature; and (c) it has capital sufficient
to carry on its business as conducted and as proposed to be conducted. For purposes of the foregoing the amount of contingent liabilities at any time shall be computed as the amount that, in light of
all the facts and circumstances existing at such time, can reasonably be expected to become an actual or matured liability. 

        "Southern California Edison Company" means Southern California Edison Company, a California corporation. 

        "SPC" has the meaning set forth in Section 10.11.1(e). 

        "Spot Rate" for a currency means (a) for determining the Dollar Equivalent pursuant to  Section 2.6.10, the rate quoted by an Issuing Lender as the spot rate
for the purchase by such Issuing Lender of such currency with another
currency through its foreign exchange trading desk at approximately 11:00 a.m., New York City time, on the date as of which the foreign exchange computation is made and (b) for all other
calculations, the rate quoted by Citibank as the spot rate for the purchase by Citibank of such currency with another currency through its FX Dealing Desk at approximately 11:00 a.m., New York
City time, on the date as of which the foreign exchange computation is made. 

        "Subordinated Debt" means all unsecured Indebtedness of the Borrower for money borrowed which is subordinated, upon terms (including the
terms applicable to the payment, prepayment, redemption, purchase or defeasance thereof) satisfactory to the Required Lenders, in right of payment to the payment in full in cash of all Obligations. 

        "Subsidiary" means, with respect to any Person: (a) any corporation, association or other business entity of which more than 50% of
the outstanding Capital Stock having ordinary voting power to elect a majority of the directors, managers or trustees of such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned by such Person, by such Person and one
or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person; and (b) any partnership (i) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are such Person or one or more Subsidiaries of such Person (or any combination thereof). 

        "Subsidiary Payments" has the meaning set forth in Section 7.2.8. 

        "Tax" or "Taxes" means, with respect to any Person, any present or future taxes (including
income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value-added, ad valorem, alternative or add-on minimum, estimated, or other
tax of any kind whatsoever), levies, imposts, duties, fees or charges imposed by any government or any governmental agency or instrumentality or any international or multinational agency or
commission, including any interest, penalty, or addition thereto, whether disputed or not for which such Person may be liable (including any such Tax related to any other Person for which such Person
is liable, by contract, as transferee or successor, by law or otherwise). 

19

 

        "type" means, relative to any Loan, the portion thereof, if any, being maintained as a Base Rate Loan or a LIBO Rate Loan. 

        "UCP" means the Uniform Customs and Practice for Documentary Credits, 1993 Revision, as set forth in the International Chamber of Commerce
Publication No. 500, or such later revision thereof in effect at the time of an Issuance of a Letter of Credit. 

        "Uniform Commercial Code" or "UCC" means the Uniform Commercial Code as in effect from
time to time in the State of New York. 

        "United States" or "U.S." means the United States of America, its fifty States and the
District of Columbia. 

        "United States Person" has the meaning given to such term in Section 7701(a)(30) of the Code. 

        "Welfare Plan" means a "welfare plan", as such term is defined in Section 3(1) of ERISA. 

        "Westside Entities" means Anacapa Energy Company, Silverado Energy Company, Viejo Energy Company, Del Mar Energy Company and each
Subsidiary of the foregoing. 

        SECTION
1.2    Use of Defined Terms.    Unless otherwise defined or the context otherwise requires, terms for which
meanings are provided in this Agreement shall have such meanings when used in each Borrowing Request, Continuation/Conversion Notice, Loan Document, notice and other communication delivered from time
to time in connection with any Loan Document. 

        SECTION
1.3    Cross-References.    Unless otherwise specified, references in this Agreement to any Article, Section,
Annex, Exhibit or Schedule are references to such Article, Section, Annex, Exhibit or Schedule of or to this Agreement, and, unless otherwise specified, references in any Article, Section or
definition to any clause are references to such clause of such Article, Section or definition. 

        SECTION
1.4    Accounting and Financial Determinations.    Unless otherwise specified, all accounting terms used in
any Loan Document shall be interpreted, all accounting determinations and computations hereunder or thereunder shall be made, and all financial statements required to be delivered hereunder or
thereunder shall be prepared in accordance with, those generally accepted accounting principles in effect from time to time in the United States
("GAAP") applied in the preparation of the financial statements referred to in Section 6.5,
except that quarterly financial statements are not required to contain footnotes. 

20

   ARTICLE II  

 COMMITMENTS AND BORROWING PROCEDURES  

        SECTION
2.1    Commitments.    Each Lender severally agrees, on the terms and conditions hereinafter set forth, to
make revolving loans (each, a "Loan") to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount at any
one time outstanding not to exceed at any one time the amount of such Lender's Commitment; provided that in no event shall any Loan be made by any
Lender if, after giving effect thereto, such Lender's Credit Exposure would exceed the amount of its Commitment or the total Credit Exposures would exceed the total Commitments. Loans may from time to
time be LIBO Rate Loans or Base Rate Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.3 and  2.4.
The Borrower may from time to time borrow, repay, in whole or in part, and reborrow Loans. Commitments shall terminate automatically on the
Maturity Date. 

        SECTION
2.2    Loans.    

        SECTION
2.2.1    Obligations of Lenders.    The failure of any Lender to make any Loan required to be made by it shall
not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender's failure to make Loans as required. 

        SECTION
2.2.2    Type of Loans.    Subject to Section 4.2, each
Loan shall be constituted entirely of Base Rate Loans or of LIBO Rate Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any LIBO Rate Loans by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of
the Borrower to repay such Loan in accordance with the terms of this Agreement. 

        SECTION
2.2.3    Minimum Amounts; Limitation on Number of Loans.    Each Loan shall be in an aggregate amount of
$5,000,000 or a larger multiple of $1,000,000; provided that a Base Rate Loan may be in an aggregate amount that is equal to the entire unused balance
of the total Commitments or, in the case
of a Loan that is required to finance, in an amount not less than $5,000,000, the amount of the reimbursement of an LC Disbursement as contemplated by  Section 2.6.6. Loans of more than one type may
be outstanding at the same time; provided that
there shall not at any time be more than a total of ten (10) LIBO Rate Loans outstanding. 

        SECTION
2.2.4    Limitations on Interest Periods.    Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request (or to elect to convert to or continue as a LIBO Rate Loan) any Loan if the Interest Period requested therefor would end after the Maturity Date. 

        SECTION
2.2.5    Reduction of Total Commitment Amount.    The Borrower may, from time to time on any Business Day
occurring after the Effective Date, voluntarily reduce the Commitment Amount without premium or penalty (subject, however, to Section 4.5);  provided,
however, that all such reductions shall require at least three (3) Business Days' prior
notice to the Administrative Agent and shall be permanent, and any partial reduction of the Commitment Amount shall be in a minimum amount of $5,000,000 and in an integral multiple of $1,000,000 in
excess thereof; and, provided, further, that the Commitment Amount may not be reduced to an amount less
than the total Credit Exposures of all Lenders. 

        SECTION
2.3    Borrowing Procedure.    

        (a)   Each
Borrowing of Loans shall be made on notice, given not later than (i) 12:00 Noon, New York City time, on the third Business Day prior to the date of the
proposed Borrowing (in the case of a Borrowing of Loans to consist of LIBO Rate Loans) and (ii) 12:00 Noon, New York 

21

 

City
time, on the Business Day of the proposed Borrowing (in the case of a Borrowing of Loans to consist of Base Rate Loans), by the Borrower to the Administrative Agent, which shall give to each
Lender prompt notice thereof by facsimile transmission. Each such notice of a Borrowing of Loans shall be made in writing, in substantially the form of a Borrowing Request, specifying therein
(i) the requested date of such Borrowing (which shall be a Business Day), (ii) whether such Borrowing is to be a LIBO Rate Loan or a Base Rate Loan, (iii) the requested aggregate
amount of such Borrowing, (iv) in the case of a LIBO Rate Loan, the initial Interest Period therefor and (v) the location and number of the Borrower's account to which funds are to be
disbursed. 

        (b)   Each
Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:00 p.m., New York
City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts so received, in like funds, to an account of the Borrower and designated by the Borrower in the applicable Borrowing Request;  provided that Borrowings made to finance
the reimbursement of an
LC Disbursement as provided in Section 2.6.6 shall be remitted by the Administrative Agent to the Issuing Lender specified in  Section 2.6.6.

        (c)   If
no election as to the type of a Loan is specified, then the requested Loan shall be a Base Rate Loan. If no Interest Period is specified with respect to any requested
LIBO Rate Loan, then the requested Loan shall be made instead as a Base Rate Loan. 

        SECTION
2.4    Continuation and Conversion Elections.    By delivering a Continuation/Conversion Notice to the
Administrative Agent on or before 12:00 Noon, New York City time, on a Business Day, the Borrower may from time to time irrevocably elect that all, or any portion in an aggregate minimum amount of
$5,000,000 and an integral multiple of $1,000,000 in excess thereof, of any Loans be (a) on not less than three (3) Business Days' notice, converted into, or continued as, LIBO Rate
Loans, or (b) on the same Business Day, be converted into, Base Rate Loans. In the absence of delivery of a Continuation/Conversion Notice with respect to any LIBO Rate Loan, such LIBO Rate
Loan shall automatically be continued as a LIBO Rate Loan with an Interest Period of the same duration as the then expiring Interest Period; provided,  however, that (i) each such conversion or continuation shall be pro rated among the applicable outstanding Loans of all Lenders, (ii) a
LIBO Rate Loan may not be converted at any time other than the last day of the Interest Period applicable thereto and (iii) no portion of the outstanding principal amount of any Loans may be
continued as, or be converted into, LIBO Rate Loans when any Default or Event of Default has occurred and is continuing. Each delivery of a Continuation/Conversion Notice shall constitute a
certification and warranty by the Borrower that on the date of delivery of such notice no Default has occurred and is continuing. If prior to the time of such continuation or conversion any matter
certified to by the Borrower by reason of the immediately preceding sentence will not be true and correct at such time if then made, the Borrower will immediately so notify the Administrative Agent.
Except to the extent, if any, that prior to the time of such continuation or conversion the Administrative Agent shall have received written notice to the contrary from the Borrower, such
certification and warranty shall be deemed to be made at the date of such continuation or conversion as if then made. Upon the occurrence and during the continuance of any Event of Default under  Section 8.1.1, each LIBO Rate Loan shall convert automatically to a Base Rate Loan at the end of the Interest Period then in effect for such LIBO
Rate Loan. 

        SECTION
2.5    Funding.    Each Lender may, if it so elects, fulfill its obligation to make, continue or convert LIBO
Rate Loans hereunder by causing one of its foreign branches or Affiliates (or an international banking facility created by such Lender) to make or maintain such LIBO Rate Loan;  provided, however, that such LIBO Rate Loan shall nonetheless be deemed to have been made and to be held
by such Lender, and the obligation of the Borrower to repay such LIBO Rate Loan shall nevertheless be to such Lender for the account of such foreign branch, Affiliate or international banking
facility. In addition, the Borrower hereby consents and agrees that, for purposes of any 

22

 

determination
to be made for purposes of Section 4.1, 4.2,  4.3, 4.4,
or 4.5, it shall be conclusively assumed that
each Lender elected to fund all LIBO Rate Loans by purchasing deposits in its LIBOR Office's interbank eurodollar markets. Notwithstanding the foregoing, such foreign branch or Affiliate shall satisfy
the requirements of Section 4.7(e). 

        SECTION
2.6    Letters of Credit.    

        SECTION
2.6.1    General.    Subject to the terms and conditions set forth herein, in addition to the Loans provided
for in Section 2.1, the Borrower may request an Issuing Lender to Issue, at any time and from time to time, on any Business Day during the
Availability Period until the date which is ten Business Days prior to the Maturity Date, Letters of Credit for its own account in such form as is acceptable to such Issuing Lender in its reasonable
determination. Letters of Credit Issued hereunder shall constitute utilization of the Commitments; provided that the Borrower's ability to obtain
Letters of Credit shall be fully revolving, and accordingly the Borrower may, within the Availability Period, obtain Letters of Credit to replace Letters of Credit which have expired or which have
been drawn and subsequently reimbursed. The Borrower agrees that an Issuing Lender shall Issue all Letters of Credit subject to either the UCP or the ISP. The UCP or the ISP, as applicable, shall
serve as evidence of general banking usage with respect to the subject matter thereof. The Borrower agrees that, for matters not addressed by the UCP or the ISP, each Letter of Credit shall be subject
to and governed by the laws of the state of New York and applicable U.S. Federal laws or, if, at the Borrower's request and with an Issuing Lender's consent, a Letter of Credit expressly chooses a
state or country law other than New York, or applicable U.S. Federal laws, such other law; provided further that such Issuing Lender shall not be liable
for any payment, cost, expense or loss resulting from any action or inaction taken by such Issuing Lender if such action or inaction is justified under UCP, ISP, New York law or the law governing the
Letter of Credit and the Borrower shall promptly reimburse such Issuing Lender for any such payment, cost, expense or loss in accordance with  Section 10.4(a). 

        SECTION
2.6.2    Notice of Issuance, Amendment, Renewal or Extension.    To request the Issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have
been approved by such Issuing Lender) to an Issuing Lender and the Administrative Agent at least three (3) Business Days (or such shorter time as such Issuing Lender may agree in a particular
instance in its sole discretion) prior to the requested Issuance Date a notice (a "Letter of Credit Application") requesting the Issuance of a Letter of
Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the Issuing Lender for such Letter of Credit, the Issuance Date (which shall be a Business Day), the date
on which such Letter of Credit is to expire (which shall comply with Section 2.6.4), the amount of such Letter of Credit, the denomination of a
Letter of Credit in Dollars, Offshore Currency or Agreed Alternate Currency, the name and address of the beneficiary thereof, all other terms and conditions regarding such Letter of Credit and such
other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by an Issuing Lender, the Borrower also shall submit a Letter of Credit Application on
such Issuing Lender's standard form in connection with any request for a Letter of Credit. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and
conditions of any form of Letter of Credit Application or other agreement submitted by the Borrower to, or entered into by the Borrower with, an Issuing Lender relating to any Letter of Credit, the
terms and conditions of this Agreement shall control. 

        SECTION
2.6.3    Limitations on Amounts.    A Letter of Credit shall be Issued, amended, renewed or extended only if
(and upon Issuance of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such Issuance the total Credit Exposure shall not exceed the Commitment
Amount. 

23

 

        SECTION
2.6.4    Expiration Date.    Each Letter of Credit shall expire at or prior to the close of business on the
earlier of (a) the date set forth in the Letter of Credit Application and (b) the date that is five (5) Business Days prior to the Maturity Date. 

        SECTION
2.6.5    Participations.    By the Issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) by an Issuing Lender, and without any further action on the part of such Issuing Lender or the Lenders, such Issuing Lender hereby grants to each Lender, and each Lender
hereby acquires from such Issuing Lender, a participation in such Letter of Credit equal to such Lender's Percentage of the aggregate amount available to be drawn under such Letter of Credit. Each
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or Event of Default or reduction or termination of the
Commitments. 

        In
consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of an Issuing Lender,
such Lender's Percentage of each LC Disbursement made by such Issuing Lender promptly upon the request of such Issuing Lender at any time from the time of such LC Disbursement until such LC
Disbursement is reimbursed by the Borrower or at any time after any reimbursement payment is required to be refunded to the Borrower for any reason. Such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each such payment shall be made in the same manner as provided in Section 2.3(b) with respect to
Loans made by such Lender (and Section 2.3(b) shall apply, mutatis mutandis, to the payment
obligations of the Lenders), and the Administrative Agent shall promptly pay to the relevant Issuing Lender the amounts so received by it from the Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to Section 2.6.6, the Administrative Agent shall distribute such payment to the
relevant Issuing Lender or, to the extent that the Lenders have made payments pursuant to this paragraph to reimburse such Issuing Lender, then to such Lenders and such Issuing Lender as their
interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse an Issuing Lender for any LC Disbursement shall not constitute a Loan and shall not relieve the Borrower of
its obligation to reimburse such LC Disbursement. 

        SECTION
2.6.6    Reimbursement.    If an Issuing Lender shall make any LC Disbursement in respect of a Letter of
Credit, the Borrower shall reimburse such Issuing Lender in respect of such LC Disbursement by paying to the Administrative Agent in Dollars an amount equal to the Dollar Equivalent
(determined in accordance with Section 2.6.10) of such LC Disbursement and any interest accrued pursuant to  Section 2.6.9 not later than
2:00 p.m., New York City time, four Business Days after the Business Day on which the Borrower receives
notice of such LC Disbursement, provided that, if such LC Disbursement is less than the minimum borrowing specified in  Section 2.2.3, the Borrower may,
 subject to the conditions to borrowing set forth herein, request, subject to  Section 2.2.3, in accordance with Section 2.3 that such LC
Disbursement be financed with a
portion of a Borrowing of Loans and, to the extent so financed, the Borrower's obligation to reimburse such LC Disbursement shall be discharged and replaced by the resulting Loan. 

        If
the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in
respect thereof and such Lender's Percentage thereof. 

        SECTION
2.6.7    Obligations Absolute.    

        (a)   The
Borrower's obligation to reimburse LC Disbursements as provided in Section 2.6.6 shall be absolute,
unconditional and irrevocable, and shall be performed strictly 

24

 

in
accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, or any term or
provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by an Issuing Lender under a Letter of Credit against presentation of a draft or other document that does not comply strictly with the terms of such
Letter of Credit, and (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this  Section 2.6, constitute a
legal or equitable discharge of the Borrower's obligations hereunder. 

        (b)   Neither
the Administrative Agent, the Lenders nor the Issuing Lenders, nor any of their respective directors, officers, employees, agents or advisors, shall have any
liability or responsibility by reason of or in connection with the Issuance or transfer of any Letter of Credit by an Issuing Lender or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from
causes beyond the control of an Issuing Lender; provided that the foregoing shall not be construed to excuse any Issuing Lender from liability to the
Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by
the Borrower that are caused by such Issuing Lender's gross negligence or willful misconduct when
determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that: 

        (i)    each
Issuing Lender may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit without responsibility for
further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the
terms of such Letter of Credit; 

        (ii)   each
Issuing Lender shall have the right, in its sole discretion, to decline to accept such documents and to make such payment if such documents are not in strict
compliance with the terms of such Letter of Credit; and 

        (iii)  this
sentence shall establish the standard of care to be exercised by each Issuing Lender when determining whether drafts and other documents presented under a Letter
of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted by applicable law, any standard of care inconsistent with the foregoing). 

        (c)   Each
Issuing Lender shall act on behalf of the Lenders with respect to any Letters of Credit Issued by it and the documents associated therewith until such time and
except for so long as the Administrative Agent may agree at the request of the Required Lenders to act for such Issuing Lender with respect thereto;  provided, however, that each Issuing Lender shall have all of the benefits and immunities
(i) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by each Issuing Lender in
connection with Letters of Credit Issued by it or proposed to be Issued by it and the Letter of Credit Documents mutatis mutandis as if set forth in
full therein as if the term "Administrative Agent", as used in Article IX, included each Issuing Lender with respect to such acts or omissions,
and (ii) as additionally provided in this Agreement with respect to each Issuing Lender. 

25

 

        SECTION
2.6.8    Disbursement Procedures.    Each Issuing Lender shall, within a reasonable time following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit. Each Issuing Lender shall promptly after such examination notify the Administrative Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Issuing Lender has made or will make an LC Disbursement thereunder;  provided that any failure to give or delay
in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Lender and
the Lenders with respect to any such LC Disbursement. 

        SECTION
2.6.9    Interim Interest.    If an Issuing Lender shall make any LC Disbursement, then, unless the Borrower
shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the Dollar Equivalent (determined in accordance with  Section 2.6.10) of the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made to but
excluding the date that the Borrower reimburses such LC Disbursement pursuant to Section 2.6.6, at a rate equal to the Alternate Base Rate, in
effect from time to time, plus the Base Rate Applicable Margin; provided that, if the Borrower fails to
reimburse such LC Disbursement when due pursuant to Section 2.6.6, then the Dollar Equivalent of such overdue amount shall bear additional
interest (after as well as before judgment) at a rate equal to 2% per annum. Interest accrued pursuant to this paragraph shall be for account of the Issuing Lender, except that interest accrued on and
after the date of payment by any Lender pursuant to Section 2.6.6 to reimburse such Issuing Lender shall be for account of such Lender to the
extent of such payment. 

        SECTION
2.6.10    LC Disbursement Denomination.    The obligations of the Borrower to reimburse LC Disbursements shall
be in Dollars and, to the extent an LC Disbursement is made in an Offshore Currency or Agreed Alternate Currency, the Issuing Lender making such LC disbursement shall determine the Dollar Equivalent
of such LC Disbursement on the date such Issuing Lender makes such LC Disbursement. 

        SECTION
2.6.11    Addition and Replacement of Issuing Lenders.    Any Lender may become an Issuing Lender at any time
by written agreement between the Borrower, the Administrative Agent, and such Lender. Any Issuing Lender may be replaced by a Lender at any time by written agreement between the Borrower, the
Administrative Agent, the replaced Issuing Lender and such Lender. The Administrative Agent shall notify the Lenders of any such change of an Issuing Lender. At the time any such change shall become
effective, the Borrower shall pay all unpaid fees accrued for account of the replaced Issuing Lender pursuant to Section 3.3.2. From and after
the effective date of any such change, (a) the Lender becoming an Issuing Lender shall have all the rights and obligations of an Issuing Lender under this Agreement with respect to Letters of
Credit to be Issued thereafter and (b) references herein to the term "Issuing Lender" shall be deemed to refer to such new or to any previous Issuing Lender, or to such new and all previous
Issuing Lenders, as the context shall require. After the replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall remain a party hereto and shall continue to have all the rights
and obligations of an Issuing Lender under this Agreement with respect to Letters of Credit Issued by it prior to such replacement, but shall not be required to Issue additional Letters of Credit. 

        SECTION
2.6.12    Offshore Currencies and Agreed Alternate Currencies.    

        (a)   Each
Issuing Lender shall be under no obligation to Issue any Letter of Credit denominated in an Offshore Currency if such Issuing Lender cannot Issue in such requested
Offshore Currency, in which event such Issuing Lender will give prompt notice to the Borrower no later than two (2) Business Days after the submission of a Letter of Credit Application that the
Issuance of a Letter of Credit in the requested Offshore Currency is not 

26

 

then
available. If such Issuing Lender shall have so notified the Borrower, such Letter of Credit Application shall be deemed withdrawn. 

        (b)   The
Borrower shall be entitled to request that Letters of Credit hereunder also be permitted to be Issued in any other lawful foreign currency, that, in the opinion of
all Lenders and an Issuing Lender, is at such time, freely traded in the offshore interbank foreign exchange markets and is freely transferable and freely convertible into Dollars (an
"Agreed Alternate Currency"). The Borrower shall deliver to the Administrative Agent any request for the Issuance of a Letter of Credit in an Agreed
Alternate Currency by not later than 11:00 a.m., New York City time, at least seven Business Days in advance of the date of any Letter of Credit proposed to be Issued in such Agreed Alternate
Currency. Upon receipt of any such request the Administrative Agent will promptly notify the Lenders and such Issuing Lender thereof, and each Lender and such Issuing Lender will use its best efforts
to respond to such request within two (2) Business Days of receipt thereof. Each Lender and such Issuing Lender may reject or accept such request in its sole discretion and, if any Lender or
Issuing Lender shall reject such request, the request shall be deemed rejected by all Lenders and Issuing Lenders. The Administrative Agent will promptly notify the Borrower of the acceptance or
rejection of any such request, and the Lender's determination of the percentage of the Dollar Equivalent face amount of such Agreed Alternate Currency denominated Letter of Credit (the
"Agreed Alternate Percentage") of available Commitments required to cover such Alternate Currency denominated Letter of Credit. If the Borrower agrees
with the Agreed Alternate Percentage, the Administrative Agent will circulate to each party to this Agreement a revised Schedule 2.6.12, setting
forth the Agreed Alternate Currency denominated Letter of Credit to be Issued and the Agreed Alternate Percentage applicable to such Letter of Credit. 

        (c)   The
Administrative Agent will determine the Dollar Equivalent amount and the Required Commitment Amount on (i) the Issuance Date with respect to any Issuances of
Letters of Credit, (ii) any date an LC Disbursement is made by an Issuing Lender in an Offshore Currency or an Agreed Alternate Currency, (iii) any date on which any Commitments are
reduced pursuant to Section 2.2.5 or Section 3.1, (iv) the last Business Day of
each calendar month, (v) any other date that the Administrative Agent, in it sole discretion determines and (vi) any other day the Borrower requests (each such date, a
"Computation Date"). 

        (d)   Subject
to Section 4.5, if on any Computation Date the Administrative Agent shall have determined that the
aggregate Credit Exposure exceeds the total Commitment Amount, due to a change in applicable rates of exchange between Dollars and Offshore Currencies, then the Administrative Agent shall give notice
to the Borrower that a prepayment is required under this Section 2.6.12(c), and the Borrower agrees thereupon promptly to make prepayments of
Loans pursuant to Section 3.1.2 and/or Cash Collateralize LC Exposures pursuant to  Section 2.6.13 such that, after giving effect to such
prepayment or Cash Collateralization, the Credit Exposure does not exceed the total Commitment Amount. 

        SECTION
2.6.13    Cash Collateralization.    

        (a)   If
an Event of Default shall occur and be continuing and the Borrower receives notice from the Administrative Agent or the Required Lenders, demanding the deposit of
cash collateral pursuant to this paragraph the Borrower shall immediately deposit into the LC Collateral Account an amount in cash equal to the LC Exposure as of such date  plus any accrued and unpaid
interest thereon; provided that the Borrower's obligation to Cash
Collateralize shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind upon the occurrence of any Event of Default with
respect to the Borrower described in Section 8.1.8. 

27

 

        (b)   If
the Borrower is required to Cash Collateralize Letters of Credit pursuant to Section 2.6.12, the Borrower shall
immediately deposit into the LC Collateral Account the amount specified in Section 2.6.12. 

        (c)   If
the Borrower is required to Cash Collateralize Letters of Credit pursuant to Section 3.1.2, the Borrower shall
immediately deposit into the LC Collateral Account the amount specified in Section 3.1.2. 

        (d)   Cash
Collateralized amounts shall be held by the Administrative Agent in the first instance for the LC Exposure under this Agreement and thereafter for the payment of
Obligations and, for these purposes, the Borrower hereby grants a security interest to the Administrative Agent for the benefit of the Lenders in the LC Collateral Account and in any "financial
assets" (as defined in Section 8-102(a)(9) of the UCC) or other property held therein. 

ARTICLE III  

 REPAYMENTS, PREPAYMENTS, INTEREST AND FEES  

        SECTION
3.1    Repayments and Prepayments.    The Loans shall mature, and the Borrower hereby unconditionally promises
to pay in full the unpaid principal amount and all amounts outstanding and unpaid in respect of the Loans to the Administrative Agent for the account of each Lender, on the Maturity Date. 

        SECTION
3.1.1    Optional Prepayments and Commitment Reductions.    At any time, and from time to time, the Borrower
may, on any Business Day, make a voluntary prepayment or permanent commitment reduction, in whole or in part, of the outstanding principal amount of the Loans or the Commitments;  provided, however, that: 

        (a)   any
such prepayment or commitment reduction shall be applied pro rata among the Lenders in accordance with the respective
unpaid principal amounts of the Loans and Commitments held by them; provided, that the Commitments shall not be reduced to an amount that is less than
the aggregate Credit Exposure then in effect; 

        (b)   any
such prepayment or commitment reduction made shall be applied pro rata among Loans and Commitments, if applicable,
having the same Interest Period; 

        (c)   any
such prepayment of any LIBO Rate Loan made on any day other than the last day of the Interest Period for such Loan shall be subject to the provisions of  Section 4.5; 

        (d)   any
such prepayment of LIBO Rate Loans shall require at least two (2) Business Days' prior written notice to the Administrative Agent and any such prepayment of
Base Rate Loans may be made on same day's written notice to the Administrative Agent; and 

        (e)   any
such partial prepayment of Loans shall be in an aggregate minimum amount of $5,000,000 and an integral multiple of $1,000,000 in excess thereof. 

        SECTION
3.1.2    Mandatory Prepayments.    Upon payment in full of the obligations under the BV Holdings Credit
Agreement and any Permitted Refinancing Indebtedness with respect to BV Holdings, the Borrower will prepay the Loans (and/or Cash Collateralize LC Exposure), and/or the Commitments shall be subject to
automatic reduction, as follows: 

        (a)    Dispositions of Collateral.    In the event that the Net Cash Proceeds of any Disposition with respect to the
Collateral Parties (herein, the "Current Disposition"), and of all prior Dispositions with respect to the Collateral Parties (or a Subisidiary of a
Collateral Party) as to which a prepayment has not yet been made under this paragraph, shall exceed $100,000,000 then, no later than five (5) Business Days prior to the occurrence of the
Current 

28

 

Disposition,
the Borrower will deliver to the Lenders a statement, certified by an Authorized Officer of the Borrower, in form and detail satisfactory to the Administrative Agent, of the amount of the
Net Cash Proceeds of the Current Disposition and of all such prior Dispositions and will prepay the Loans (and/or Cash Collateralize LC Exposure), and/or the Commitments shall be subject to automatic
reduction, in an aggregate amount equal to the excess of (i) 100% of the Net Cash Proceeds of the Current Disposition and such prior Dispositions  over (ii) $100,000,000, such prepayment and/or
reduction to be effected in each case in the manner and to the extent specified in  Section 3.1.2(c). 

        (b)    Currency Fluctuations.    The Borrower shall, on each date when a pre payment is required pursuant to  Section 2.6.12(c),
 prepay the Loans (and/or Cash Collateralize LC Exposure), and/or the Commitments shall be subject to automatic reduction, in
the amount specified in Section 2.6.12(c), such prepayment and/or reduction to be effected in each case in the manner and to the extent specified
in Section 3.2.1(c). 

        (c)    Application.    Prepayments and/or reductions of Commitments pursuant to  Section 3.1.2(a) and (b) shall be applied to reduce the aggregate amount of the Commitments (and
to the extent that, after giving effect to such reduction, the total Credit Exposure would exceed the total Commitments, the Borrower shall, first, prepay Loans and second, Cash Collateralize LC
Exposure in an aggregate amount equal to such excess). 

        SECTION
3.1.3    Acceleration; Penalty.    

        (a)   The
Borrower shall immediately upon any acceleration of any Loans pursuant to Section 8.2 or  Section 8.3, repay all Loans, unless, pursuant to
Section 8.3, only a portion of all Loans
is so accelerated (in which event the Borrower shall repay the portion of the Loans so accelerated). 

        (b)   Each
prepayment of Loans made pursuant to Section 3.1 shall be accompanied by accrued interest to the date of such
prepayment on the amount prepaid, but shall be without premium or penalty, except as may be required by Section 4.5. No prepayment of principal
of any Loan pursuant to Section 3.1.1 or Section 3.1.2(b) shall cause a reduction in the
total Commitment Amount. Prepayment of principal of any Loan pursuant to Section 3.1.2(a) shall cause a permanent reduction in such Loan prepaid
and the corresponding Commitment. 

        SECTION
3.2    Interest Provisions.    Interest on the outstanding principal amount of Loans shall accrue and be
payable in accordance with this Section 3.2. 

        SECTION
3.2.1    Rates.    

        (a)   Pursuant
to an appropriately delivered Borrowing Request or Continuation/Conversion Notice, the Borrower may elect that the Loans or a portion of the Loans pursuant to  Section 2.3 accrue interest at a rate
per annum: 

        (i)    on
that portion maintained from time to time as a Base Rate Loan, equal to the sum of the Alternate Base Rate from time
to time in effect plus the Base Rate Applicable Margin from time to time in effect; and 

        (ii)   on
that portion maintained as a LIBO Rate Loan, during each Interest Period applicable thereto, equal to the sum of the
LIBO Rate for such Interest Period plus the LIBOR Applicable Margin from time to time in effect. 

        (b)   All
LIBO Rate Loans shall bear interest from and including the first day of the applicable Interest Period to (but not including) the last day of such Interest Period at
the interest rate determined as applicable to such LIBO Rate Loan. 

29

 

        SECTION
3.2.2    Default Rates.    Upon the occurrence and during the continuance of any Event of Default, the
Borrower shall pay, but only to the extent permitted by law, in addition to the applicable Alternate Base Rate or LIBO Rate plus the Applicable Margin
on each such Loan, then payable on the Loans, additional interest (after as well as before judgment) on the Loans at 2% per annum until such Event of Default is cured. 

        SECTION
3.2.3    Payment Dates.    Interest accrued on each Loan shall be payable, without duplication: 

        (a)   on
the Maturity Date; 

        (b)   on
the date of any payment or prepayment, in whole or in part, of principal outstanding on such Loan, provided that upon
a payment or prepayment in part, only the interest accrued on such portion shall be payable; 

        (c)   with
respect to Base Rate Loans, on each Quarterly Payment Date occurring after the Effective Date; 

        (d)   with
respect to LIBO Rate Loans, the last day of each applicable Interest Period (and, if such Interest Period shall exceed three months, on the day three months after
such Loan is made or continued); and 

        (e)   on
that portion of any Loans which is accelerated pursuant to Section 8.2 or  Section 8.3, immediately upon such acceleration. 

Interest
accrued on Loans or other monetary Obligations after the date such amount is due and payable (whether on the related Maturity Date, upon acceleration or otherwise) shall be payable upon
demand. 

        SECTION
3.2.4    Interest Rate Determination.    The Administrative Agent shall determine the interest rate applicable
to Loans and shall give prompt notice to the Borrower and the Lenders of such determination, and its determination thereof shall be conclusive in the absence of manifest error. 

        SECTION
3.3    Fees.    

        SECTION
3.3.1    Commitment Fee.    The Borrower agrees to pay to the Administrative Agent for account of each Lender
a commitment fee, which shall accrue at a rate per annum equal to 0.50% on the average daily unused amount of the Commitment of such Lender during the period from and including the Effective Date to
but excluding the earlier of the date such Commitment terminates and the Maturity Date. Accrued commitment fees shall be payable on each Quarterly Payment Date and on the Maturity Date, commencing on
the first such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). For purposes of computing commitment fees, the Commitment of a Lender shall be deemed to be used to the extent of the outstanding Loans and LC
Exposure (as such LC Exposure is adjusted on each Computation Date) of such Lender. 

        SECTION
3.3.2    Letter of Credit Fees.    The Borrower agrees to pay (a) to the Administrative Agent for
account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at a rate per annum equal to LIBOR Applicable Margin on the average daily amount
of such Lender's LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the
date on which such Lender's Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (b) to each Issuing Lender a fronting fee, which shall accrue at the rate
of 0.25% per annum (or such lesser amount as shall have been 

30

 

agreed
from time to time between the Borrower and an Issuing Lender) on the average daily amount of the LC Exposure (as such LC Exposure is adjusted on each Computation Date) of each such Issuing
Lender (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of
the Commitments and the date on which there ceases to be any LC Exposure, as well as each such Issuing Lender's standard fees with respect to the Issuance, of any Letter of Credit or processing of
drawings thereunder. Participation fees and fronting fees accrued through and including each Quarterly Payment Date shall be payable on such Quarterly Payment Date, commencing on the first such date
to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees
accruing after the date on which the Commitments terminate shall be payable on demand. Any other fees payable to an Issuing Lender pursuant to this paragraph shall be payable within ten
(10) days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). 

        SECTION
3.3.3    Other Fees.    The Borrower agrees to pay to the Administrative Agent, for (a) its own
account, (b) the account of each of CNAI, CSFB, JPMS and Lehman, (c) the account of the Issuing Lenders and (d) the account of the Lenders, the respective fees as agreed to in the
Fee Letters. 

        SECTION
3.3.4    Payment of Fees.    All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent (or to the Issuing Lenders, in the case of fees payable to it) for distribution, in the case of facility fees and participation fees, to the Lenders
entitled thereto. Fees paid shall not be refundable under any circumstances. 

ARTICLE IV  

 CERTAIN LIBO RATE AND OTHER PROVISIONS  

        SECTION
4.1    LIBO Rate Lending Unlawful.    If any Lender shall reasonably determine (which determination shall,
upon notice thereof to the Borrower and the Administrative Agent, be conclusive and binding on the Borrower absent manifest error) that the introduction of or any change in or in the interpretation of
any law, rule or regulation makes it unlawful, or any central bank or other Governmental Authority or comparable agency asserts that it is unlawful, for such Lender to make, continue or maintain any
Loan as, or to convert any Loan into, a LIBO Rate Loan, the obligations of such Lender to make, continue, maintain or convert any such Loans shall, upon such determination, forthwith be suspended
until such Lender shall notify the Administrative Agent that the circumstances causing such suspension no longer exist, and all LIBO Rate Loans of such Lender shall automatically convert into Base
Rate Loans at the end of the then current Interest Periods with respect thereto or sooner, if required by such law or assertion. 

31

   
        SECTION 4.2    Inability to Determine Rates.    If the Administrative Agent shall have determined that by reason of
circumstances affecting the Administrative Agent's relevant market, adequate means do not exist for ascertaining the interest rate applicable hereunder to LIBO Rate Loans, then, upon notice from the
Administrative Agent to the Borrower and the Lenders, the obligations of all Lenders under Section 2.3 and  Section 2.4 to make or continue any
Loans as, or to convert any Loans into, LIBO Rate Loans shall forthwith be suspended until the Administrative
Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 

        SECTION
4.3    Increased LIBO Rate Loan Costs.    If after the date hereof, the adoption of any applicable law, rule
or regulation, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or its LIBOR Office) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable
agency shall increase the cost to such Lender of, or result in any reduction in the amount of any sum receivable by such Lender in respect of, making, continuing or maintaining (or of its obligation
to make, continue or maintain) any Loans as, or of converting (or of its obligation to convert) any Loans into, LIBO Rate Loans, then the Borrower agrees to pay to the Administrative Agent for the
account of such Lender the amount of any such increase or reduction. Such Lender shall promptly notify the Administrative Agent and the Borrower in writing of the occurrence of any such event, such
notice to state, in reasonable detail, the reasons therefor and the additional amount required to compensate fully such Lender for such increased cost or reduced amount. Such additional amounts shall
be payable by the Borrower directly to such Lender within ten (10) Business Days of its receipt of such notice, and such notice shall be binding on the Borrower absent clear and convincing
evidence to the contrary. 

        SECTION
4.4    Obligation to Mitigate.    Each Lender agrees that as promptly as practicable after it becomes aware of
the occurrence of an event that would entitle it to give notice pursuant to Section 4.1, 4.3 or  4.6 or
to receive additional amounts pursuant to Section 4.7, and in any event if so requested by
the Borrower, such Lender shall use reasonable efforts to make, fund or maintain its affected Loans through another lending office if as a result thereof the increased costs would be avoided or
materially reduced or the illegality would thereby cease to exist and if, in the reasonable opinion of such Lender, the making, funding or maintaining of such Loans through such other lending office
would not in any material respect be disadvantageous to such Lender, contrary to such Lender's normal banking practices or violate any applicable law or regulation. No change by a Lender in its
Domestic Office or LIBOR Office made for such Lender's convenience shall result in any increased cost to the Borrower. The Borrower shall not be obligated to compensate any Lender for the amount of
any additional amount pursuant to Section 4.1, 4.3 or  4.6 accruing prior to the date which is
90 days before the date on which such Lender first notifies the Borrower that it intends to claim such
compensation; it being understood that the calculation of the actual amounts may not be possible within such period and that such Lender may provide such calculation as soon as reasonably practicable
thereafter without affecting or limiting the Borrower's payment obligation thereunder. If any Lender demands compensation pursuant to  Section 4.1, 4.3
or 4.6 with respect to any LIBO
Rate Loan, the Borrower may, at any time upon at least one Business Day's prior notice to such Lender through the Administrative Agent, elect to convert such Loan into a Base Rate Loan. Thereafter,
unless and until such Lender notifies the Borrower that the circumstances giving rise to such notice no longer apply, all such LIBO Rate Loans by such Lender shall bear interest as Base Rate Loans,
notwithstanding any prior election by the Borrower to the contrary. If such Lender notifies the Borrower that the circumstances giving rise to such notice no longer apply, the Borrower may elect that
the principal amount of each such Loan again bear interest as LIBO Rate Loans in accordance with this Agreement, on the first day of the next succeeding Interest Period applicable to the related LIBO
Rate Loans of other Lenders. Additionally, the Borrower may, at its option, upon at least five (5) Business Days' prior notice to such Lender, elect to prepay in full, without premium or
penalty, such Lender's affected 

32

 

LIBO
Rate Loans. If the Borrower elects to prepay any Loans pursuant to this Section 4.4, the Borrower shall pay within ten (10) Business
Days after written demand any additional increased costs of such Lender accruing for the period prior to such date of prepayment. If such conversion or prepayment is made on a day other than the last
day of the current Interest Period for such affected LIBO Rate Loans, such Lender shall be entitled to make a request for, and the Borrower shall pay, compensation under  Section 4.5. 

        SECTION
4.5    Funding Losses.    In the event any Lender shall incur any loss or expense (including any loss or
expense incurred by reason of the liquidation or redeployment of deposits or other funds acquired by such Lender to make, continue or maintain any portion of the principal amount of any Loan as, or to
convert any portion of the principal amount of any Loan into, a LIBO Rate Loan) as a result of: 

        (a)   any
conversion or repayment or prepayment of the principal amount of any LIBO Rate Loans on a date other than the scheduled last day of the Interest Period applicable
thereto, whether pursuant to Section 3.1 or otherwise; or 

        (b)   any
Loans not being continued as, or converted into, LIBO Rate Loans in accordance with the Continuation/Conversion Notice therefor; 

then,
upon the written notice of such Lender to the Borrower (with a copy to the Administrative Agent), the Borrower shall, within ten (10) Business Days of its receipt thereof, pay to the
Administrative Agent for the account of such Lender such amount as will (in the reasonable determination of such Lender) reimburse such Lender for such loss or expense. Such written notice (which
shall include calculations in reasonable detail) shall be binding on the Borrower absent manifest error. 

        SECTION
4.6    Increased Capital Costs.    If after the date hereof any change in, or the introduction, adoption,
effectiveness, interpretation, reinterpretation or phase-in of, any applicable law or regulation, directive, guideline, decision or request (whether or not having the force of law) of any
court, central bank, regulator or other Governmental Authority affects the amount of capital required to be maintained by any Lender or any Issuing Lender, and such Lender or such Issuing Lender
reasonably determines that the rate of return on its capital as a consequence of its Loans or participating in issuing or maintaining any Letter of Credits as the case may be, made by such Lender or
such Issuing Lender is reduced in a material amount to a level below that which such Lender or such Issuing Lender could have achieved but for the occurrence of any such circumstance, then, in any
such case upon notice from time to time by such Lender or such Issuing Lender to the Borrower, the Borrower shall pay within ten (10) Business Days after such demand directly to such Lender or
such Issuing Lender additional amounts sufficient to compensate such Lender or such Issuing Lender for such reduction in rate of return. A statement of such Lender or such Issuing Lender as to any
such additional amount or amounts (including calculations thereof in reasonable detail) shall be binding on the Borrower absent manifest error. 

        SECTION
4.7    Taxes.    

        (a)    Payments Free of Taxes.    Any and all payments by or on account of any obligation of the Borrower hereunder or
under any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Issuing Lender or Lender as the
case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and 

33

 

(iii) the
Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 

        (b)    Payment of Other Taxes by the Borrower.    In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law. 

        (c)    Indemnification by the Borrower.    The Borrower shall indemnify the Administrative Agent, each Issuing Lender
and each Lender, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Issuing Lender or such Lender, as the case may be, and
any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, by an Issuing Lender or by the Administrative Agent on its own
behalf or on behalf of a Lender or an Issuing Lender, shall be conclusive absent manifest error. 

        (d)    Evidence of Payments.    As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 

        (e)    Foreign Lenders.    Each Lender that is not a United States Person (a
"Non-U.S. Lender"), to the extent that it is legally able to do so, shall deliver to the Borrower and the Administrative Agent two copies of
U.S. Internal Revenue Service Form W-8ECI, Form W-8BEN or Form W-8IMY (with supporting documentation), or any subsequent versions thereof or
successors thereto properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all payments of
interest by the Borrower under the Loan Documents. Such forms shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement. In addition, each
Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender
shall promptly notify the Borrower at any time it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). 

        SECTION
4.8    Payments, Computations.    Unless otherwise expressly provided, all payments by the Borrower pursuant
to any Loan Document shall be made by the Borrower to the Administrative Agent for the pro rata account of the Lenders entitled to receive such payment.
All such payments required to be made to the Administrative Agent shall be made, without setoff, deduction or counterclaim, not later than 12:00 Noon, New York City time, on the date due, in
immediately available funds, to such account as the Administrative Agent shall specify from time to time by notice to the Borrower; provided that such
payment shall be deemed made timely if made by wire transfer and by such time as an Authorized Representative has advised the Administrative Agent of the applicable Federal Reserve System wire
transfer confirmation number. Funds received after that time shall be deemed to have been received by the Administrative Agent on the next succeeding Business Day. The Administrative Agent shall
promptly remit in immediately available funds to each Lender its share, if any, of such payments received by the Administrative Agent for the account of such Lender. All interest and fees shall be
computed on the basis of the actual number of days (including the first day but excluding the last day) occurring during the period for which such interest or fee is payable over a year comprised of
360 days (or, in the case of interest on a Base Rate Loan, 365 days or, if appropriate, 366 days). 

34

 

Whenever
any payment to be made shall otherwise be due on a day which is not a Business Day, such payment shall (except as otherwise required by  clause (a) of the definition of the term "Interest Period" with respect to LIBO Rate Loans) be
made on the next succeeding Business Day and such extension of time shall be included in computing interest and fees, if any, in connection with such payment. 

        SECTION
4.9    Sharing of Payments.    If any Lender shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of setoff or otherwise) on account of any Loan or LC Disbursement (other than pursuant to the terms of Sections 4.3,  4.4,
4.5, 4.6,  4.7 and 4.11) in excess of its pro rata share of
payments then or therewith obtained by all Lenders
holding Loans of such type, such Lender shall purchase from the other Lenders such participations in Loans and LC Disbursements made by them as shall be necessary to cause such purchasing Lender to
share the excess payment or other recovery ratably with each of them; provided, however, that if all or
any portion of the excess payment or other recovery is thereafter recovered from such purchasing Lender, the purchase shall be rescinded and each Lender which has sold a participation in any Loan or
LC Disbursement to the purchasing Lender shall repay to the purchasing Lender the purchase price to the ratable extent of such recovery together with an amount equal to such selling Lender's ratable
share (according to the proportion of (a) the amount of such selling Lender's required repayment to the purchasing Lender to (b) the total amount so recovered from the purchasing Lender)
of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 4.9 may, to the fullest extent permitted by law, exercise all its rights of payment (including pursuant to  Section 4.10) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such
participation. 

        If
under any applicable bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a setoff to which this  Section 4.9 applies, such Lender shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner consistent
with the rights of the Lenders entitled under this Section 4.9 to share in the benefits of any recovery on such secured claim. 

        SECTION
4.10    Setoff.    Each of the Lenders and the Issuing Lenders shall, upon the occurrence of any Event of
Default described in clause (a) or (b) of  Section 8.1.8 and, upon the occurrence of any Default
described in clauses (c) and  (d) of Section 8.1.8 or, with the consent of the Required Lenders, upon
the occurrence and
continuance beyond the expiration of the applicable grace period, if any, of any other Event of Default, have the right to appropriate and apply to the payment of the Obligations owing to it (whether
or not then due); provided, however, that any such appropriation and application shall be subject to the
provisions of Section 4.9. 

        Each
Lender agrees promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Lender;  provided, however,
that the failure to give such notice shall not affect the validity of such setoff and
application. 

        The
rights of each Lender under this Section 4.10 are in addition to other rights and remedies (including other rights of setoff
under applicable law or otherwise) which such Lender may have. 

        SECTION
4.11    Replacement of Lender.    The Borrower shall be permitted to replace (with one or more replacement
Lenders) any Lender: (a) that does not consent to a waiver, amendment or modification pursuant to Section 10.1 that requires a vote of
holders of 100% of the Lenders (provided, that, such replacement Lender consents to such waiver, amendment or modification) or (b) which requests
reimbursement for, or is otherwise entitled to, amounts owing pursuant to Section 4.1, 4.3,  4.6 or
4.7; provided that (i) such replacement
does not conflict with any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to the Borrower or such Lender or to
which the Borrower or such Lender or any of their respective property is subject, (ii) no Default, Event of Default or Significant Collateral Party Event shall have occurred and be continuing
at the time of such replacement (other than, in the case of a replacement 

35

 

predicated
upon clause (a) above, the Default, Event of Default or Significant Collateral Party Event that is the subject of the vote referred to
in clause (a) above), (iii) the replacement bank or institution shall purchase, at par all Loans and other amounts owing to such replaced
Lender prior to the date of replacement, (iv) the Borrower shall be liable to such replaced Lender under Section 4.5 if any LIBO Rate Loan
owing to such replaced Lender shall be prepaid (or purchased) other than on the last day of the Interest Period relating thereto, (v) the replacement Lender shall be reasonably satisfactory to
the Administrative Agent and the Issuing Lenders, (vi) the replaced Lender shall be obligated to make such replacement in accordance with the provisions of  Section 10.11.1 (provided that the Borrower or replacement Lender shall be obligated to pay the
registration and processing fee), (vii) until such time as such replacement shall be consummated, the Borrower shall pay all additional amounts (if any) required pursuant to  Section 4.1,
4.3, 4.6 or  4.7, as the case may be, (viii) any such replacement shall not be deemed to be a waiver of
any rights which the Borrower, the Administrative
Agent, any Issuing Lender or any other Lender shall have against the replaced Lender, (ix) if such replacement bank or institution is not already a Lender, the Borrower shall pay to the
Administrative Agent an administrative fee of $3,500 and (x) in the case of a replacement predicated upon clause (a) above, for the
related vote referred to in clause (a) above, no more Lenders than Lenders holding 20% or more of the aggregate outstanding principal amount of
the Loans shall be replaced by the Borrower (provided that the Borrower may replace a single Lender holding greater than 20% of the aggregate
outstanding principal amount of the Loans). 

ARTICLE V  

 CONDITIONS TO LOANS  

        SECTION
5.1    Conditions to Effectiveness.    This Agreement shall become effective, as between all parties hereto,
upon the satisfaction of each of the conditions precedent set forth in this Section 5.1. 

        SECTION
5.1.1    Delivery of Loan Documents.    The Administrative Agent shall have received: 

        (a)   this
Agreement, duly executed and delivered by an Authorized Representative of the Borrower, with a counterpart for each Lender party hereto on the Effective Date; 

        (b)   the
Borrower Security Agreement, duly executed and delivered by an Authorized Representative of the Borrower; and 

        (c)   the
Communications Agreement, duly executed and delivered by an Authorized Representative of the Borrower. 

        SECTION
5.1.2    Officer's Certificates.    The Administrative Agent shall have received a certificate from an
Authorized Representative of the Borrower (a) certifying that all representations and warranties made by it in this Agreement and each of the Loan Documents to which it is a party are true and
correct in all material respects on and as of the Effective Date (except with respect to representations and warranties made as of a prior specific date) and (b) certifying that no Default or
Event of Default, has occurred and is continuing. 

        SECTION
5.1.3    Resolutions.    The Administrative Agent shall have received from the Borrower a certificate dated
the Effective Date of its Secretary, Assistant Secretary or Authorized Representative as to: 

        (a)   resolutions
of its Board of Directors then in full force and effect authorizing the execution, delivery and performance of each Loan Document to be executed by it; 

        (b)   the
incumbency and signatures of those of its officers and representatives authorized to act with respect to each Loan Document executed by it; and 

        (c)   such
Person's Organic Documents. 

36

 

        The
Administrative Agent and each Lender may conclusively rely upon such certificate until it shall have received a further certificate of the Secretary, Assistant Secretary or other
Authorized Representative of the Borrower canceling or amending such prior certificate. 

        SECTION
5.1.4    Opinions of Counsel.    The Administrative Agent shall have received opinions, dated the Effective
Date and addressed to the Administrative Agent and the Lenders, from Skadden, Arps, Slate, Meagher & Flom LLP and internal counsel to the Borrower reasonably acceptable to the Administrative
Agent, substantially in the form of Exhibits E-1 and E-2 and given upon the
express instruction of the Borrower. 

        SECTION
5.1.5    Closing Fees, Expenses.    The Administrative Agent shall have received for its own account, or for
the account of each Lender, as the case may be, all fees due and payable pursuant to Sections 3.3 and  10.3, and all costs and expenses for which invoices
have been presented. 

        SECTION
5.1.6    Financial Statements.    The Administrative Agent shall have received: 

        (a)   an
audited consolidated balance sheet of the Borrower and its Subsidiaries at December 31, 2003 and 

        (b)   an
audited consolidated income statement of the Borrower and its Subsidiaries for the year ended December 31, 2003. 

        SECTION
5.1.7    Solvency.    The Administrative Agent shall have received a certificate, in form and substance
reasonably satisfactory to the Administrative Agent, from the chief financial officer or treasurer of the Borrower to the effect that the Borrower together with its Subsidiaries, taken as a whole,
will be Solvent as of the Effective Date. 

        SECTION
5.1.8    Repayment of Existing Indebtedness.    The Administrative Agent shall have received satisfactory
evidence that the upon the Effective Date, the Borrower will have repaid in full and terminated all commitments under the Credit Agreement dated as of September 13, 2001 among the Borrower, the
Administrative Agent, Citibank, N.A. as the Issuing Lender and the commercial lending institutions party thereto, as amended, supplemented, amended and restated or otherwise in modified and in effect
from time to time. 

        SECTION
5.1.9    Lien Search; Recordings and Filings.    

        (a)   The
Administrative Agent shall have received results of a recent search by a Person satisfactory to the Administrative Agent that there are no UCC, judgment or Tax lien
filings on any of the assets of the Borrower in each relevant jurisdiction except for (i) Liens pursuant to the Loan Documents and (ii) Liens to be discharged on or prior to the
Effective Date pursuant to documentation reasonably satisfactory to the Administrative Agent. 

        (b)   Arrangements
reasonably satisfactory to the Administrative Agent shall have been made for filing, registration or recordation of all financing statements and other
documents required to be filed, registered or recorded in order to create, in favor of the Administrative Agent for the benefit of the Lenders, a perfected, first priority lien in each office in each
jurisdiction in which such filings, registrations and recordations are required to perfect the security interests created by the Borrower Security Agreement, and any other action required in the
judgment of the Administrative Agent to perfect such security interests as such first priority liens. 

        SECTION
5.1.10    Conditions to Other Financings.    The Administrative Agent shall have received confirmation from an
Authorized Representative of the Borrower that all of the conditions precedent to the closing and funding of (a) the Midwest Notes and (b) the Midwest Credit Agreement have been
satisfied or waived in accordance with their respective terms. 

37

 

        SECTION
5.2    All Credit Extensions.    The obligation of each Lender and each Issuing Lender to make any Credit
Extension (including the initial Credit Extension) shall be subject to the satisfaction of each of the conditions precedent set forth in this  Section 5.2. 

        SECTION
5.2.1    Initial Credit Extension.    Prior to the initial Credit Extension, the Administrative Agent shall
have received a certificate from an Authorized Representative of the Borrower calculating the Interest Coverage Ratio for the immediately preceding four Fiscal Quarters and the Recourse Debt to
Recourse Capital Ratio as of March 31, 2004. 

        SECTION
5.2.2    Representations and Warranties; No Default.    Both before and after giving effect to any Credit
Extension (but, if any Default of the nature referred to in Section 8.1.5 or Significant Collateral Party Event shall have occurred with respect
to any other Indebtedness, without giving effect to the application, directly or indirectly, of the proceeds of such Credit Extension), the following statements shall be true and correct: 

        (a)   the
representations and warranties set forth in Article VI shall be true and correct in all material respects with
the same effect as if then made (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier date); and 

        (b)   no
(i) Default, (ii) Event of Default or (iii) Significant Collateral Party Event has occurred and is continuing or would result from such Credit
Extension. 

        SECTION
5.2.3    Borrowing Request.    The Administrative Agent shall have received, in the case of Loans, a Borrowing
Request or, in the case of a Letter of Credit, a Letter of Credit Application for such Credit Extension. Each of the delivery of a Borrowing Request or Letter of Credit Application and the acceptance
by the Borrower of the proceeds of such Credit Extension shall constitute a representation and warranty by the Borrower that on the date of such Credit Extension (both immediately before and after
giving effect to such Credit Extension and the application of the proceeds thereof) the statements made in Section 5.2.1 are true and correct. 

        SECTION
5.2.4    Satisfactory Legal Form.    All documents executed or submitted pursuant hereto by or on behalf of
the Borrower shall be satisfactory in form and substance to the Administrative Agent and its counsel. 

ARTICLE VI  

 REPRESENTATIONS AND WARRANTIES  

        In order to induce the Administrative Agent and each Lender to enter into this Agreement and to make Loans hereunder, the Borrower represents and warrants, with
respect to itself and with respect to the Collateral Parties, unto the Administrative Agent and each Lender as set forth in this Article VI. 

        SECTION
6.1    Organization; Power; Compliance with Law and Contractual Obligations.    Each of the Borrower and the
Collateral Parties (and each Subsidiary of a Collateral Party) (a) is a corporation or limited liability company validly organized and existing and in good standing under the laws of the state
of its incorporation or organization, (b) is duly qualified to do business and is in good standing as a foreign corporation or limited liability company in each jurisdiction where the nature of
its business requires such qualification, (c) in the case of the Borrower, has all requisite corporate or limited liability company power and authority and holds all material requisite
governmental licenses, permits and other approvals to enter into and perform its Obligations under each Loan Document and to conduct its business substantially as currently conducted by it and
(d) is in compliance with all laws, governmental regulations (including ERISA and Federal Reserve regulations), court decrees, orders and Contractual Obligations applicable to it, except, with
respect to clauses (b), (c) and (d) to the 

38

 

extent
that the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect. 

        SECTION
6.2    Due Authorization; Non-Contravention.    The execution, delivery and performance by the
Borrower of each Loan Document are within the Borrower's corporate powers, have been duly authorized by all necessary corporate action, and do not: 

        (a)   contravene
the Borrower's Organic Documents; 

        (b)   contravene
any law, governmental regulation, court decree or order or material Contractual Obligation binding on or affecting the Borrower; or 

        (c)   result
in, or require the creation or imposition of, any Lien on any of the Borrower's properties other than Liens permitted pursuant to  Section 7.2.2. 

        SECTION
6.3    Governmental Approval; Regulation.    

        (a)   No
authorization, consent, approval, license, exemption of or filing or registration with any court or governmental authority or regulatory body
("Governmental Approval") is required for the Borrower to execute and perform its obligations under each Loan Document to which it is a party, except
for those which have been duly obtained or effected. No material Governmental Approval is required for the Borrower and each Collateral Party (and each Subsidiary of a Collateral Party) to carry on
its business, except for those which have been duly obtained or effected. 

        (b)   The
Borrower is not subject to any regulation as an "investment company" subject to the Investment Company Act of 1940, as amended, or as a "holding company" or a
"subsidiary company" or an "affiliate" of a "holding company" subject to the Public Utility Holding Company Act of 1935, as amended ("PUHCA"), except
Section 9(a)(2) thereof. The Borrower is not otherwise subject to any regulation as a "public utility" under any other applicable law, rule or regulation, which would have a Material Adverse
Effect. 

        SECTION
6.4    Validity.    Each Loan Document constitutes the legal, valid and binding obligations of the Borrower
enforceable in accordance with their respective terms (except as may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally and general
principles of equity). 

        SECTION
6.5    Financial Information.    The most recent consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries and the related consolidated statements of income and cash flows of the Borrower and its Consolidated Subsidiaries, copies of which have been furnished to the Administrative
Agent pursuant to Section 7.1.1(a) have been prepared in accordance with GAAP consistently applied, and present fairly in all material respects
the consolidated financial condition of the Borrower and its Subsidiaries as at the dates thereof and the results of their operations for the periods then ended. 

        SECTION
6.6    No Material Adverse Change.    There has not occurred any event or condition having a Material Adverse
Effect since December 31, 2003. 

        SECTION
6.7    Litigation.    There is no pending or, to the knowledge of the Borrower, threatened litigation, action,
proceeding, or labor controversy affecting the Borrower or the Collateral Parties (and each Subsidiary of a Collateral Party), or any of its properties, businesses, assets or revenues, which, if
adversely determined (taking into account any insurance proceeds payable under a policy where the insurer has accepted coverage without any reservations), would have a Material Adverse Effect or which
purports to adversely affect the legality, validity or enforceability of this or any Loan Document. 

        SECTION
6.8    Ownership of Properties.    The Borrower owns good and marketable title to, or a valid leasehold
interest in or other enforceable interest in all properties and assets, real and personal, 

39

 

tangible
and intangible, of any nature whatsoever (including patents, trademarks, trade names, service marks and copyrights) purported to be owned, leased or held by it, free and clear of all Liens,
charges or claims (including infringement claims with respect to patents, trademarks, copyrights and the like) except as permitted pursuant to  Section 7.2.2. 

        SECTION
6.9    Taxes.    Each of the Borrower and the Collateral Parties (and each Subsidiary of a Collateral Party)
has filed all tax returns and reports required by law to have been filed by it and has paid all Taxes thereby shown to be owing, except any such Taxes which are being diligently contested in good
faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books. 

        SECTION
6.10    Pension and Welfare Plans.    During the consecutive twelve-month period prior to the date of the
execution and delivery of this Agreement and prior to the date of any Borrowing hereunder, no steps have been taken to terminate any Pension Plan, and no contribution failure has occurred with respect
to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA. No condition exists or event or transaction has occurred with respect to any Pension Plan which could
reasonably be expected to result in the incurrence by the Borrower or any member of the Controlled Group of any material liability (other than liabilities incurred in the ordinary course of
maintaining the Pension Plan), fine or penalty. Neither the Borrower nor any member of the Controlled Group has any contingent liability with respect to any post-retirement benefit under a
Welfare Plan which could reasonably be expected to have a Material Adverse Effect, other than liability for continuation coverage described in Part 6 of Title I of ERISA. 

        SECTION
6.11    Environmental Warranties.    

        (a)   All
facilities and property owned or leased by the Borrower or any of its Subsidiaries or Partnerships have been, and continue to be, owned or leased by the Borrower and
its Subsidiaries in compliance with all Environmental Laws, except where the failure so to comply would not have, or be reasonably expected to have, a Material Adverse Effect. 

        (b)   There
are no pending or, to the knowledge of the Borrower, threatened: 

        (i)    claims,
complaints, notices or requests for information received by the Borrower or any of the Collateral Parties (and each Subsidiary of a Collateral Party) from
governmental authorities with respect to any alleged violation by the Borrower or any of the Collateral Parties (and each Subsidiary of a Collateral Party) or Joint Enterprises of any Environmental
Law that, singly or in the aggregate, have, or may reasonably be expected to have, a Material Adverse Effect; or 

        (ii)   complaints,
notices or inquiries to the Borrower or any of the Collateral Parties (and each Subsidiary of a Collateral Party) from governmental authorities regarding
potential liability under any Environmental Law that, singly or in the aggregate, have, or may reasonably be expected to have, a Material Adverse Effect. 

        (c)   There
have been no Releases (as defined under any Environmental Law) of Hazardous Materials at, on or under any property now or previously owned or leased by the
Borrower or any of the Collateral
Parties (and each Subsidiary of a Collateral Party) that, singly or in the aggregate, have, or may reasonably be expected to have, a Material Adverse Effect. 

        (d)   The
Borrower or each of the Collateral Parties (and each Subsidiary of a Collateral Party) has obtained and is in compliance with all permits, certificates, approvals,
licenses and other authorizations relating to environmental matters and necessary for the Person's business, except where the failure to obtain, maintain or comply with such permits, certificates,
approvals, licenses or other authorizations would not have, or be reasonably expected to have, a Material Adverse Effect. 

40

  

        (e)   To
the reasonable knowledge of the Borrower, no property now or previously owned or leased by each of the Borrower or any of the Collateral Parties (and each Subsidiary
of a Collateral Party) or Joint Enterprises is listed or proposed for listing (with respect to owned property only) on the National Priorities List pursuant to any Environmental Law, on the CERCLIS or
on any similar state list of sites requiring investigation or clean-up. 

        (f)    No
conditions exist at, on or under any property now or previously owned or leased by each of the Borrower or any of the Collateral Parties (and each Subsidiary of a
Collateral Party) which, with the passage of time, or the giving of notice or both, would give rise to liability under any Environmental Law which liability would have, or may reasonably be expected
to have, a Material Adverse Effect. 

        SECTION
6.12    Regulations T, U and X.    Neither the Borrower nor any of the Collateral Parties is engaged in the
business of extending credit for the purpose of purchasing or carrying margin stock, and no proceeds of any Loans will be used for a purpose which violates, or would be inconsistent with, F.R.S. Board
Regulation T, U or X. Terms for which meanings are provided in F.R.S. Board Regulation T, U or X or any regulations substituted therefor, as from time to time in effect, are used in this  Section 6.12 with such meanings. 

        SECTION
6.13    Accuracy of Information.    All material factual information heretofore or contemporaneously furnished
by the Borrower in writing to the Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby (other than projections and other
"forward-looking" information which have been prepared on a reasonable basis and in good faith by the Borrower) is, and all other such written factual information hereafter furnished by the Borrower
in writing to the Administrative Agent or any Lender will be, true and materially accurate in every material respect on the date as of which such information is dated or certified and as of the date
of execution and delivery of this Agreement by the Administrative Agent and such Lender, and such information is not, or shall not be, as the case may be, incomplete by omitting to state any material
fact necessary to make such information not materially misleading. 

ARTICLE VII  

 COVENANTS  

        SECTION
7.1    Affirmative Covenants.    The Borrower agrees with the Administrative Agent and each Lender that, until
all Commitments have terminated and all Obligations have been paid and performed in full, the Borrower will, and will cause each of its Subsidiaries, the Collateral Parties and its Joint Enterprises,
it may have now or in the future, to perform the obligations set forth in this Section 7.1. 

        SECTION
7.1.1    Financial Information, Reports, Notices.    The Borrower will furnish, or will cause to be furnished,
to the Administrative Agent copies of the following financial statements, reports, notices and information: 

        (a)   as
soon as available and in any event within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year of the Borrower, consolidated
balance sheets of the Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Quarter and consolidated statements of income and cash flows of the Borrower and its Consolidated
Subsidiaries for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal Quarter, certified by an Authorized Representative with
responsibility for financial matters; 

        (b)   as
soon as available and in any event within 120 days after the end of each Fiscal Year of the Borrower, commencing with the 2004 Fiscal Year, a copy of the
annual audit report for such Fiscal Year for the Borrower and its Consolidated Subsidiaries, including therein consolidated balance sheets of the Borrower and its Consolidated Subsidiaries as of the
end of such Fiscal Year 

41

 

and
consolidated statements of income and cash flows of the Borrower and its Consolidated Subsidiaries for such Fiscal Year, and accompanied by the unqualified opinion of Pricewaterhouse Coopers LLP
or other internationally recognized independent auditors selected by the Borrower which report shall state that such consolidated financial statements present fairly in all material respects the
financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior periods; 

        (c)   concurrently
with the delivery of financial statements referred to in Sections 7.1.1.(a) and
7.1.1(b), a certificate, executed by the controller, treasurer or chief financial officer of the Borrower, showing (in reasonable detail and with
appropriate calculations and computations in all respects satisfactory to the Administrative Agent) compliance with the financial covenants set forth in  Section 7.2.9 and Section 7.2.10; 

        (d)   as
soon as possible and in any event within five (5) Business Days after any Authorized Representative of the Borrower obtains knowledge of the occurrence of each
Default, a statement of such Authorized Representative setting forth details of such Default and the action which the Borrower has taken and proposes to take with respect thereto; 

        (e)   as
soon as possible and in any event within five (5) Business Days after (x) the occurrence of any material adverse development with respect to any
litigation, action, proceeding, or labor controversy of the type described in Section 6.7 or (y) the commencement of any labor
controversy, litigation, action, proceeding of the type described in Section 6.7, notice thereof and, upon request of the Administrative Agent,
copies of all non-privileged documentation relating thereto; 

        (f)    promptly
after the sending or filing thereof, copies of all reports and registration statements which the Borrower or any Collateral Party (and each Subsidiary of a
Collateral Party) files with the Securities and Exchange Commission or any national securities exchange; 

        (g)   immediately
upon becoming aware of the institution of any steps by the Borrower or any other Person to terminate any Pension Plan (other than a standard termination
under ERISA Section 4041(b)), or the failure to make a required contribution to any Pension Plan if such failure is sufficient to give rise to a Lien under Section 302(f) of ERISA, or
the taking of any action with respect to a Pension Plan which could result in the requirement that the Borrower furnish a bond or other security to the PBGC or such Pension Plan, or the occurrence of
any event with respect to any Pension Plan which could result in the incurrence by the Borrower or any member of the Controlled Group of any material liability (other than liabilities incurred in the
ordinary course of maintaining the Pension Plan), fine or penalty, or any increase in the contingent liability of the Borrower with respect to any post-retirement Welfare Plan benefit
which has a Material Adverse Effect, notice thereof and copies of all documentation relating thereto; 

        (h)   as
soon as known, any changes in Borrower's Debt Rating by Moody's or S&P or any other rating agency which maintains a Debt Rating on the Borrower; 

        (i)    as
soon as known, the occurrence of any Affiliate Bankruptcy Event; 

        (j)    as
soon as possible and in any event within five (5) Business Days after any Authorized Officer of the Borrower obtains knowledge of the occurrence of each
Significant Collateral Party Event, a statement of such Authorized Representative setting forth the details of such Significant Collateral Party Event and a calculation of the Interest Coverage Ratio
on a Pro Forma basis as required by Section 7.2.9. 

        (k)   copies
of the documents governing Permitted Refinancing Indebtedness of each Financed Subsidiary referred to in the definition of "Correlative Financing Provisions" and
all amendments, supplements and modifications thereto; and 

        (l)    other
information reasonably requested by the Administrative Agent. 

42

 

        SECTION
7.1.2    Compliance with Laws.    The Borrower will, and will cause each of the Collateral Parties (and each
Subsidiary of a Collateral Party) and will use reasonable efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to,
comply in all material respects with all applicable laws, rules, regulations and orders, such compliance to include the payment, before the same become delinquent, of all Taxes imposed upon it or upon
its property (except to the extent non-compliance would not reasonably be expected to have a Material Adverse Effect and to the extent that such Taxes are being diligently contested in
good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books); provided that, in
the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this  Section 7.1.2 (provided that, in the event that the Financed Enterprise shall not be in
compliance with the Correlative Financing Provisions, this Section 7.1.2 will apply to such Financed Enterprise without giving effect to the
Correlative Financing Provision). 

        SECTION
7.1.3    Maintenance of Properties.    The Borrower will, and will use reasonable efforts to cause each of its
Subsidiaries and Partnerships to, maintain, preserve, protect and keep its property and equipment in good repair, working order and condition (ordinary wear and tear excepted), and make necessary and
proper repairs, renewals and replacements so that its business carried on in connection therewith may be properly conducted at all times unless the Borrower determines in good faith that the continued
maintenance of any of its properties or equipment is no longer economically desirable and except where the failure so to do would not have a Material Adverse Effect;  provided that, in the case of each
Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such
Financed Enterprise with this Section 7.1.3 (provided that, in the event that the Financed
Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.1.3 will apply to such Financed Enterprise
without giving effect to the Correlative Financing Provision). 

        SECTION
7.1.4    Insurance.    The Borrower will, and will cause each of the Collateral Parties (and each Subsidiary
of a Collateral Party) and will use reasonable efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to maintain or
cause to be maintained with responsible insurance companies insurance with respect to its properties and business against such casualties and contingencies and of such types and in such amounts as is
customary in the case of similar businesses and in a similar geographic region. In the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be
compliance by such Financed Enterprise with this Section 7.1.4 (provided that, in the event that
the Financed Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.1.4 will apply to such Financed
Enterprise without giving effect to the Correlative Financing Provision). 

        SECTION
7.1.5    Books and Records.    The Borrower will, and will cause each of its active Subsidiaries to, keep
books and records which accurately reflect all of its business affairs and transactions and permit the Administrative Agent and each Lender or any of their respective representatives (at the
Administrative Agent's or such Lender's expense), at reasonable times and intervals upon reasonable prior notice, to visit all of its offices, to discuss its financial matters with its officers and
independent public accountant. The Borrower will at any reasonable time and from time to time upon reasonable prior notice, permit the Administrative Agent and the Lenders or any of their respective
agents or representatives to examine and make copies of and abstracts from the records and books of account of the Borrower (at the Administrative Agent's or such Lender's expense);  provided that by
virtue of this Section 7.1.5 the Borrower shall not be deemed to have waived any
right to confidential treatment of the informational obtained, subject to the provisions of applicable law or court order. 

43

 

        SECTION
7.1.6    Environmental Covenant.    The Borrower will, and will use reasonable efforts to cause each of its
Subsidiaries and Partnerships to: 

        (a)   use
and operate all of its facilities and properties in compliance with all Environmental Laws, keep all necessary permits, approvals, certificates, licenses and other
authorizations relating to environmental matters in effect and remain in material compliance therewith, and handle all Hazardous Materials in material compliance with all applicable Environmental
Laws, in each case where the failure to do so may reasonably be expected to have a Material Adverse Effect; 

        (b)   promptly
cure and have dismissed with prejudice to the reasonable satisfaction of the Administrative Agent any actions and proceedings relating to compliance with
Environmental Laws where such action or proceeding may reasonably be expected to have a Material Adverse Effect; provided that the Borrower or such
Subsidiary or Partnership may postpone such cure and dismissal during any period in which it is diligently pursuing any available administrative review proceedings, remedial actions or appeals with
respect to such action or proceeding so long as such postponement would not be reasonably likely to have a Material Adverse Effect; and 

        (c)   provide
such non-privileged information as the Administrative Agent may reasonably request from time to time to evidence compliance with this  Section 7.1.6. 

        SECTION
7.1.7    Conduct of Business and Maintenance of Existence.    The Borrower will, and will cause each of the
Collateral Parties (and each Subsidiary of a Collateral Party) and will use reasonable efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of
such Joint Enterprise) to, continue to engage in business of the same type as now conducted by it and preserve, renew and keep in full force and effect its corporate existence and take all reasonable
action to maintain all material rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted by  Section 7.2.4;
provided that, in the case of
each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this  Section 7.1.7 (provided that, in the event that the Financed Enterprise shall not be in
compliance with the Correlative Financing Provisions, this Section 7.1.7 will apply to such Financed Enterprise without giving effect to the
Correlative Financing Provision). 

        SECTION
7.1.8    Use of Proceeds.    On the Effective Date, the Borrower will repay and/or replace existing
Indebtedness of the Borrower (or its Affiliates) in an amount equal to the total Commitment Amount. Any proceeds of Loans will be used, from time to time, for general corporate purposes and working
capital requirements of the Borrower; provided, that if a Default or Event of Default has occurred and is continuing, the Borrower will not use such
proceeds to make Restricted Payments. 

        SECTION
7.2    Negative Covenants.    The Borrower agrees with the Administrative Agent and each Lender that, until
all Commitments have terminated and all Obligations have been paid and performed in full, the Borrower will, and will cause each of its Subsidiaries, the Collateral Parties and Joint Enterprises, it
may have now or in the future, to perform the obligations set forth in this Section 7.2. 

        SECTION
7.2.1    Restrictions on Indebtedness.    

        (a)   (i) The
Borrower will not create, incur, assume or suffer to exist any secured Indebtedness other than (A) Capitalized Lease Liabilities and
(B) other secured Indebtedness of any kind whatsoever existing on the Effective Date, and (ii) Non-Recourse Debt with respect to which the Borrower has pledged the stock of a
Subsidiary in order to secure initial 

44

 

project
financing obtained or being obtained after the Effective Date hereof by such Subsidiary (or the Partnership in which such Subsidiary is a partner). 

        (b)   The
Borrower will not, will not permit the Collateral Parties (and each Subsidiary of a Collateral Party) and will use reasonable efforts to not permit its Joint
Enterprises (to the extent consistent with such Collateral Party's or such Subsidiary of a Collateral Party's obligations to other members of such Joint Enterprise) to, create, incur, assume or suffer
to exist any Indebtedness other than: 

        (i)    Indebtedness
of the Collateral Parties, each Subsidiary of a Collateral Party, or its Joint Enterprises of any kind whatsoever existing on the Effective Date; 

        (ii)   Permitted
Refinancing Indebtedness; 

        (iii)  Permitted
Intercompany Indebtedness; 

        (iv)  interest
rate hedging obligations of the Borrower with respect to Indebtedness of the Borrower; and 

        (v)   Indebtedness
secured by Liens set forth on Schedule 7.2.1; 

provided that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such
Financed Enterprise with this Section 7.2.1 (provided that, in the event that the Financed
Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.2.1 will apply to such Financed Enterprise
without giving effect to the Correlative Financing Provision). 

        SECTION
7.2.2    Liens.    The Borrower will not, and will not permit the Collateral Parties (and each Subsidiary of a
Collateral Party), and will use reasonable efforts to not permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, create, incur,
assume or suffer to exist any Lien upon any of its property, revenues or assets, whether now owned or hereafter acquired, except: 

        (a)   any
Lien existing on the property of the Borrower, the Collateral Parties, each Subsidiary of a Collateral Party and each Joint Enterprise on the Effective Date or Liens
securing Permitted Refinancing Indebtedness of the Borrower, the Collateral Parties, each Subsidiary of a Collateral Party and each Joint Enterprise;  provided however, that the new Lien shall be limited
to all or part of the same property and assets that secured the original Lien (plus repairs,
improvements and additions to such property or assets); 

        (b)   Liens
for Taxes not at the time delinquent or thereafter payable without penalty or which are being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on its books; 

        (c)   Liens
of carriers, warehousemen, mechanics, materialmen and landlords incurred in the ordinary course of business for sums not overdue or which are being diligently
contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books; 

        (d)   Liens
incurred in the ordinary course of business in connection with workmen's compensation, unemployment insurance or other forms of governmental insurance or benefits,
or to secure
performance of tenders, statutory obligations, leases and contracts (other than for borrowed money) entered into in the ordinary course of business or to secure obligations on surety or appeal bonds;
and 

        (e)   judgment
Liens in existence less than 30 days after the entry thereof or with respect to which execution has been stayed or the payment of which is covered in
full (subject to a customary deductible) by insurance maintained with responsible insurance companies; 

45

 

provided that (i) in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance
by such Financed Enterprise with this Section 7.2.2 (provided that, in the event that the
Financed Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.2.2 will apply to such Financed
Enterprise without giving effect to the Correlative Financing Provision) and (ii) notwithstanding anything to the contrary in this  Section 7.2.2, no intercompany note or other intercompany
obligation payable to the Borrower or a Collateral Party will be pledged, encumbered or
otherwise transferred (except as pledged or encumbered under, and pursuant to, the Borrower Security Agreement). 

        SECTION
7.2.3    Investments.    The Borrower will not, and will not permit any of its Subsidiaries to, make, incur,
assume or suffer to exist any Investment in any other Person, except: 

        (a)   Investments
existing on the Effective Date; 

        (b)   Cash
Equivalent Investments; 

        (c)   without
duplication, Investments permitted as Indebtedness pursuant to Section 7.2.1(b); 

        (d)   Investments
in the Collateral Parties or its Joint Enterprises in the ordinary course of business; 

        (e)   Investments
permitted pursuant to Section 7.2.4(b); 

        (f)    Investments
in the Collateral Parties, Subsidiaries of a Collateral Party or its Joint Enterprises primarily engaged in the power generation, power sales or power
transmission business; and 

        (g)   Investments
in any Subsidiary existing on the Effective Date and any other Person if as a result of such Investment such Person becomes a Collateral Party or a
Subsidiary of a Collateral Party; 

provided that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such
Financed Enterprise with this Section 7.2.3 (provided that, in the event that the Financed
Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.2.3 will apply to such Financed Enterprise
without giving effect to the Correlative Financing Provision). 

        SECTION
7.2.4    Consolidation, Merger.    The Borrower will not, and will not permit any of its Subsidiaries to,
liquidate or dissolve, consolidate with, or merge into or with, any other corporation, or purchase or otherwise acquire all or substantially all of the assets of any Person (or of any division
thereof) except: 

        (a)   any
such Subsidiary may liquidate or dissolve voluntarily into, and may merge with and into, the Borrower or any other Subsidiary, and the assets or stock of any
Subsidiary may be purchased or otherwise acquired by the Borrower or any other Subsidiary; 

        (b)   so
long as no Default or Significant Collateral Party Event has occurred and is continuing or would occur after giving effect thereto, the Borrower or any of its
Subsidiaries may purchase all or substantially all of the assets of any Person, or (in the case of any such Subsidiary) acquire such person by merger; and 

        (c)   so
long as no Default or Significant Collateral Party Event has occurred and is continuing or would occur after giving effect thereto, the Borrower may consolidate with
or merge into any other Person, or convey, transfer or lease its properties and assets substantially as an entirety to any person, or permit any Person to merge into or consolidate with the Borrower
if (i) the Borrower is the surviving corporation or the surviving corporation or purchaser or lessee is a corporation incorporated under the laws of the United States of 

46

 

America
or Canada and assumes the Obligations and (ii) the surviving corporation has long term unsecured Debt Ratings of at least BBB- from S&P and Baa3 from Moody's (with a stable
outlook from both rating agencies). 

        SECTION
7.2.5    Asset Dispositions.    The Borrower will not, will not permit the Collateral Parties (and each
Subsidiary of a Collateral Party) to and will use reasonable efforts to not permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to,
Dispose of, lease, contribute or otherwise convey, or grant options, warrants or other rights with respect to, all or any substantial part of its assets (including accounts receivable and capital
stock of Subsidiaries) to any Person, unless: 

        (a)   such
Disposition, lease, contribution, conveyance or grant is to an unaffiliated third party on an arm's-length basis; and 

        (b)   at
least 75% of the consideration to be received is paid in cash or Cash Equivalent Investments and such remaining 25% is not a debt instrument of the Borrower or any of
its Affiliates (provided that for purposes of this provision, (i) any amounts deposited into an escrow or other type of holdback account and any
consideration in the form of readily marketable securities shall be deemed to be cash, (ii) customary purchase price adjustments may be settled on a non-cash basis and
(iii) the assumption of Indebtedness relating to the asset being Disposed shall be disregarded for the purposes of this provision); 

provided that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such
Financed Enterprise with clauses (a) and (b) this Section 7.2.5 (provided that, in
the event that the Financed Enterprise shall not be in compliance with the Correlative Financing Provisions, this Section 7.2.5 will apply to
such Financed Enterprise without giving effect to the Correlative Financing Provision). 

        SECTION
7.2.6    Transactions with Affiliates.    The Borrower will not enter into, or cause, suffer or permit to
exist any arrangement or contract with any of its Affiliates unless such arrangement or contract is fair and equitable to the Borrower and is an arrangement or contract of the kind which would be
entered into by a prudent Person in the position of the Borrower with a Person which is not one of its Affiliates; provided that, (a) the
Leveraged Lease Transaction and the Leveraged Lease Basic Documents and (b) any other arrangement or contract between the Borrower and any of its Affiliates existing on the Effective Date shall
be deemed not to be contracts or arrangements with an Affiliate for the purposes of this Section 7.2.6; provided
further that, procurement, sales and trading transactions between the Borrower and EMMT or any other Affiliate engaged in the business of marketing and trading fuel, emissions
credits, electric generation or any transaction related thereto, in each case, shall be deemed not to be a Transaction with an Affiliate for the purposes of this  Section 7.2.6. 

        SECTION
7.2.7    Restricted Payments.    The Borrower will not, and will not permit the Collateral Parties, to make a
Restricted Payment if an Event of Default has occurred and is continuing after giving effect to such Restricted Payment. 

        SECTION
7.2.8    Restrictive Agreements.    The Borrower will not, and will not permit any of its Subsidiaries to,
enter into any agreement (excluding any Loan Document) prohibiting: 

        (a)   the
ability of the Borrower to amend or otherwise modify any Loan Document; or 

        (b)   the
ability of any Subsidiary to make any payments, directly or indirectly, to the Borrower by way of dividend, advances, repayments of loans or advances, reimbursements
of management and other intercompany charges, expenses and accruals or other returns on investments ("Subsidiary Payments"), or any other agreement or
arrangement which restricts the ability of any such Subsidiary to make any payment, directly or indirectly, to the Borrower where such prohibition or restriction has a Material Adverse Effect. 

47

 

The
restriction set forth in clause (b) above shall not apply to prohibitions or restrictions on Subsidiary Payments directly or indirectly to
the Borrower set forth in any agreement entered into in connection with a refinancing of any Indebtedness of the Borrower or any of its Subsidiaries (each such agreement entered into after the
Effective Date, a "Restrictive Financing Document") if, prior to entering into such Restrictive Financing Document, the Borrower shall have delivered to
the Administrative Agent: (A) a certificate of an Authorized Representative stating that the projected financial or coverage ratios of the affected Subsidiary as calculated on the basis of the
pro forma financials prepared in good faith on the basis of reasonable assumptions in connection with, and after giving effect to, the transactions contemplated by such Restrictive Financing Document
will, during the remaining life to maturity of the Obligations, equal or exceed the financial or coverage ratios, if any, required for the affected Subsidiary to make any Subsidiary Payments directly
or indirectly to the Borrower in accordance with such Restrictive Financing Document; and (B) letters from Moody's and S&P confirming the then current Debt Rating. 

        SECTION
7.2.9    Interest Coverage.    The Borrower will (a) at the end of each of its Fiscal Quarters and
(b) after the occurrence of any Significant Collateral Party Event (after recalculating the Interest Coverage Ratio give Pro Forma effect to each Significant Collateral Party Event that has
occurred and continuing), maintain an Interest Coverage Ratio for the immediately preceding four consecutive Fiscal Quarters of the Borrower of not less than 1.30 to 1.00;  provided, that, at any time
the Administrative Agent receives notice from the Borrower (or otherwise becomes aware) that any such Significant Collateral
Party Event is no longer continuing or as directed by the Required Lenders, the Interest Coverage Ratio shall be recalculated giving Pro Forma effect to such Significant Collateral Party Event no
longer continuing. 

        SECTION
7.2.10    Recourse Debt to Recourse Capital Ratio.    The Borrower will at the end of each of its Fiscal
Quarters maintain a Recourse Debt to Recourse Capital Ratio of not more than 0.675 to 1.00. 

        SECTION
7.2.11    ERISA.    The Borrower will not engage in any prohibited transactions under Section 406 of
ERISA or under Section 4975 of the Internal Revenue Code, which would subject the Borrower to any tax, penalty or other liabilities having a Material Adverse Effect. 

ARTICLE VIII  

 EVENTS OF DEFAULT  

        SECTION
8.1    Listing of Events of Default.    Each of the following events or occurrences described in this  Section 8.1 shall constitute an "Event of Default". 

        SECTION
8.1.1    Non-Payment of Obligations.    (a) The Borrower shall default in the payment when
due of principal of any Loan or LC Exposure or the Borrower shall fail to Cash Collateralize its LC Exposure when due or (b) the Borrower shall default (and such default shall continue
unremedied for a period of five (5) Business Days) in the payment when due of interest on any Loan or LC Exposure, any fees pursuant to  Section 3.3 or of any other Obligation. 

        SECTION
8.1.2    Breach of Warranty.    Any representation or warranty of the Borrower made or deemed to be restated
or remade in any Loan Document or any other writing or certificate furnished by or on behalf of the Borrower to the Administrative Agent or any Lender for the purposes of or in connection with any
Loan Document (including any certificates delivered pursuant to Article V) is or shall be incorrect when made or deemed made in any material
respect. 

48

  

        SECTION
8.1.3    Non-Performance of Certain Covenants and Obligations.    The Borrower shall default in
the due performance and observance of any of its obligations under Section 7.2 (other than Sections
7.2.3 and 7.2.6). 

        SECTION
8.1.4    Non-Performance of Other Covenants and Obligations.    The Borrower shall default in the
due performance and observance of any other covenant or agreement contained in any Loan Document, and such default shall continue unremedied for a period of 30 days after written notice thereof
shall have been given to the Borrower by the Administrative Agent. 

        SECTION
8.1.5    Default on Other Indebtedness.    A default shall occur in the payment when due (subject to any
applicable grace period), whether by acceleration or otherwise, of any Indebtedness of the Borrower or a default shall occur in the performance or observance of any obligation or condition with
respect to such Indebtedness if the effect of such default is to accelerate the maturity of any such Indebtedness or such default shall continue unremedied for any applicable period of time sufficient
to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause such Indebtedness to become due and payable prior to its expressed maturity, in either case,
such Indebtedness having a principal amount, individually or in the aggregate, in excess of $20,000,000 (other than Indebtedness described in  Section 8.1.1). 

        SECTION
8.1.6    Judgments.    Any judgment or order for the payment of money in excess of $20,000,000 (taking into
account any insurance proceeds payable under a policy where the insurer has accepted coverage without reservation) shall be rendered against the Borrower, a Collateral Party or a Subsidiary of a
Collateral Party and either: 

        (a)   enforcement
proceedings shall have been commenced by any creditor upon such judgment or order; or 

        (b)   there
shall be any period of ninety (90) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect. 

provided that, with respect to any of the Westside Entities, none of the events described in clauses (a)
and (b) shall constitute a Default or an Event of Default unless such event has a Material Adverse Effect. 

        SECTION
8.1.7    Pension Plans.    Any of the following events shall occur with respect to any Pension Plan: 

        (a)   the
institution of any steps by the Borrower, any member of its Controlled Group or any other Person to terminate a Pension Plan if, as a result of such termination, the
Borrower or any such member could be required to make a contribution to such Pension Plan, or would reasonably expect to incur a liability or obligation to such Pension Plan, in excess of $20,000,000;
or 

        (b)   a
contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA. 

        SECTION
8.1.8    Bankruptcy, Insolvency.    The Borrower, a Collateral Party or a Subsidiary of a Collateral Party
shall: 

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

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

49

 

        (c)   in
the absence of such application, consent or acquiescence, permit or suffer to exist the appointment of a trustee, receiver, sequestration or other custodian for the
Borrower, a Collateral Party or a Subsidiary of a Collateral Party or for a substantial part of its property, and such trustee, receiver, sequestration or other custodian shall not be discharged
within 60 days, provided that nothing in the Loan Documents shall prohibit or restrict any right the Administrative Agent or any Lender may have
under applicable law to appear in any court conducting any relevant proceeding during such 60-day period to preserve, protect and defend its rights under the Loan Documents (and the
Borrower, a Collateral Party or a Subsidiary of a Collateral Party, as applicable, shall not object to any such appearance); 

        (d)   permit
or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law, or any
dissolution, winding up or liquidation proceeding, in respect of the Borrower, a Collateral Party or a Subsidiary of a Collateral Party, and, if any such case or proceeding is not commenced by the
Borrower, a Collateral Party or a
Subsidiary of a Collateral Party, such case or proceeding shall be consented to or acquiesced in by the Borrower, a Collateral Party or a Subsidiary of a Collateral Party or shall result in the entry
of an order for relief or shall remain for 60 days undismissed, provided that nothing in the Loan Documents shall prohibit or restrict any right
the Administrative Agent or any Lender may have under applicable law to appear in any court conducting any such case or proceeding during such 60-day period to preserve, protect and defend
its rights under the Loan Documents (and the Borrower, a Collateral Party or a Subsidiary of a Collateral Party shall not object to any such appearance); or 

        (e)   take
any corporate action authorizing, or in furtherance of, any of the foregoing; 

provided that, with respect to any of the Westside Entities, none of the events described in clauses (a)
through (e) shall constitute a Default or an Event of Default unless such event has a Material Adverse Effect. 

        SECTION
8.1.9    Substantive Consolidation.    In connection with an Affiliate Bankruptcy Event, any Person shall seek
(whether by adversarial proceeding, motion or otherwise) the substantive consolidation of any part of the assets, properties, estate or liabilities of the Borrower with the estate or liabilities of
any Person subject of such Affiliate Bankruptcy Event and such application shall be consented to or acquiesced in by the Borrower or shall result in an order for such substantive consolidation or
shall remain for 60 days undismissed, provided that nothing in the Loan Documents shall prohibit or restrict any right the Administrative Agent
or any Lender may have under applicable law to appear in any court conducting any such case or proceeding during such 60-day period to preserve, protect and defend its rights under the
Loan Documents (and the Borrower shall not object to any such appearance). 

        SECTION
8.1.10    Unenforceability of Documents.    (a) Any of the Loan Documents shall become unenforceable or
the enforceability thereof shall be contested by the Borrower or (b) any Liens against any of the Collateral shall cease to be a first priority, perfected security interest in favor of the
Administrative Agent or the enforceability thereof shall be contested by the Borrower or (c) the Borrower or any Affiliate shall enter into any agreements prohibiting the Borrower to amend or
otherwise modify the Loan Documents. 

        SECTION
8.2    Action if Bankruptcy.    If any Event of Default described in clauses
(a) through (e) of Section 8.1.8 shall occur with respect to the
Borrower, the Commitments (if not theretofore terminated) shall automatically terminate and the outstanding principal amount of all outstanding Loans and all other monetary Obligations shall
automatically be and become immediately due and payable, without notice or demand. 

50

 

        SECTION
8.3    Action if Other Event of Default.    If any Event of Default (other than any Event of Default described
in clauses (a) through (e) of Section 8.1.8)
shall occur for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent, upon the direction of the Required Lenders, shall by written notice to the Borrower declare
all or any portion of the outstanding principal amount of the Loans and other monetary Obligations to be due and payable and/or the Commitments (if not theretofore terminated) to be terminated,
whereupon the full unpaid amount of such Loans and other Obligations which shall be so declared due and payable shall be and become immediately due and payable, without further notice, demand or
presentment and/or, as the case may be, the Commitments shall terminate. The rights provided for in the Loan Documents are cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document or agreement now existing or hereafter arising. 

        SECTION
8.4    Rescission of Declaration.    Any declaration made pursuant to  Section 8.3 may, should the Required
Lenders in their sole and absolute discretion so elect, be rescinded by written notice to the Borrower at
any time after the principal of the Loan shall have become due and payable, but before any judgment or decree for the payment of the monies so due, or any part thereof, shall have been entered;  provided
that the Borrower shall have paid all arrears of interest upon the Loans and all other amounts then owed to the Administrative Agent and the
Lenders including all costs, expenses and liabilities incurred by the Administrative Agent and the Lenders in respect of such declaration and all consequences thereof (except the principal of the
Loans which by such declaration shall have become payable) and every other Event of Default shall have been made good, waived or cured; provided that no
such rescission or annulment shall extend to or affect any subsequent Event of Default or impair any right consequent thereon. 

ARTICLE IX  

 THE ADMINISTRATIVE AGENT  

        SECTION
9.1    Actions.    

        (a)   Each
Lender and each Issuing Lender hereby appoints CNAI as its Administrative Agent under and for purposes of each Loan Document. Each Lender and each Issuing Lender
authorizes the Administrative Agent to act on its behalf under each Loan Document and, in the absence of other written instructions from the Required Lenders received from time to time by the
Administrative Agent (with respect to which the Administrative Agent agrees that it will comply, except as otherwise provided in this Section or as otherwise advised by counsel), to exercise such
powers hereunder and thereunder as are specifically delegated to or required of the Administrative Agent by the terms hereof and thereof, together with such powers as may be reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere in any Loan Document, the Administrative Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the
Administrative Agent have or be deemed to have any fiduciary relationship with any Issuing Lender or any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into any Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term "agent" in this
Agreement with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead,
such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 

        (b)   Each
Lender hereby agrees to indemnify (which indemnity shall survive any termination of this Agreement) the Agent-Related Persons pro
rata according to such Lender's Percentage, from and against any and all liabilities, obligations, losses, damages, claims, costs or expenses of 

51

 

any
kind or nature whatsoever which may at any time be imposed on, incurred by, or asserted against, the Agent-Related Persons in any way relating to or arising out of any Loan Document, including
reasonable attorneys' fees, and as to which the Administrative Agent is not reimbursed by the Borrower; provided,  however, that no Lender shall be liable
for the payment of any portion of such liabilities, obligations, losses, damages, claims, costs or expenses
which are determined by a court of competent jurisdiction in a final proceeding to have resulted from the Agent-Related Person's gross negligence or willful misconduct. No Agent-Related Persons shall
be required to take any action under any Loan Document, or to prosecute or defend any suit in respect of or any Loan Document, unless it is indemnified hereunder to its satisfaction. If any indemnity
in favor of the Administrative Agent shall be or become, in its determination, inadequate, the Agent-Related Person may call for additional indemnification from the Lenders and cease to do the acts
indemnified against hereunder until such additional indemnity is given. 

        SECTION
9.2    Funding Reliance.    Unless the Administrative Agent shall have been notified by telephone, confirmed
in writing, by any Lender by 12:00 Noon, New York City time, on the Business Day prior to the Effective Date that such Lender will not make available the amount which would constitute its Percentage
of the Borrowing on the Effective Date, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent and, in reliance upon such assumption, may, but
shall not be required to, make available to the Borrower a corresponding amount. If and to the extent that such Lender shall not have made such amount available to the Administrative Agent, such
Lender and the Borrower severally agree to repay the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date the Administrative
Agent made such amount available to the Borrower to the date such amount is repaid to the Administrative Agent, at the interest rate applicable at the time to Loans comprising such Borrowing;  provided
that if such Lender makes available the amount which is its Percentage of the Borrowing on or before the next Business Day following the day
when due, the interest rate payable on such amount shall be the Federal Funds Effective Rate. 

        SECTION
9.3    Exculpation.    No Agent-Related Person shall be liable to any Lender for any action taken or omitted
to be taken by it under or any Loan Document, or in connection therewith, except for its own willful misconduct or gross negligence, nor responsible for any recitals or warranties herein or
therein, nor for the effectiveness, enforceability, validity or due execution of any Loan Document, nor to make any inquiry respecting the performance by the Borrower of its obligations under any Loan
Document. Any such inquiry which may be made by the Administrative Agent shall not obligate it to make any further inquiry or to take any action. Each Agent-Related Person shall be entitled to rely
upon advice of counsel concerning legal matters and upon any notice, consent, certificate, statement or writing which the Administrative Agent believes to be genuine and to have been presented by a
proper Person. 

        SECTION
9.4    Successor.    The Administrative Agent may resign as such at any time upon at least 30 days'
prior notice to the Borrower, all Lenders and all Issuing Lenders. If the Administrative Agent at any time shall resign, the Required Lenders may, within ten days after such notice and with the
consent of the Borrower (not to be unreasonably withheld), appoint another Lender as a successor Administrative Agent which shall thereupon become the Administrative Agent hereunder. If no successor
Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent's giving notice of
resignation, then the retiring Administrative Agent may, on behalf of the Lenders, after notice to and consultation with the Borrower, appoint a successor Administrative Agent, which shall be one of
the Lenders or an Assignee, and shall have a combined capital and surplus of at least $250,000,000. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall be entitled to receive from the retiring Administrative Agent such documents of transfer and assignment as such successor Administrative
Agent may 

52

 

reasonably
request, and shall thereupon succeed to and become vested with all rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations under this Agreement. After the effective date of any retiring Administrative Agent's resignation hereunder as the Administrative Agent, the provisions of
(a) this Article IX shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent
under this Agreement; and (b) Section 10.3 and Section 10.4 shall continue to inure
to its benefit. 

        SECTION
9.5    Loans by CNAI.    CNAI shall have the same rights and powers with respect to the Loans made by it or
any of its Affiliates as any other Lender and may exercise the same as if it were not the Administrative Agent. CNAI and its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of business with the Borrower or any Subsidiary or Affiliate of the Borrower as if CNAI were not the Administrative Agent hereunder. 

        SECTION
9.6    Reliance by Administrative Agent.    

        (a)   The
Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person
or Persons, and upon advice and statements of
legal counsel (including counsel to the Borrower or any of its Affiliates), independent accountants and other experts selected by the Administrative Agent. The Administrative Agent shall be fully
justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so
requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such
action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under any Loan Document in accordance with a request or consent of the Required Lenders
and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 

        (b)   For
purposes of determining compliance with the conditions specified in Section 5.1, each Lender that has executed
this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Administrative Agent to such Lender for consent,
approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to the Lender. 

        SECTION
9.7    Notice of Default.    The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default, Event of Default or Significant Collateral Party Event, except with respect to defaults in the payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative Agent shall have received written notice from a Lender or the Borrower referring to this Agreement, describing such
Default, Event of Default or Significant Collateral Party Event and stating that such notice is a "notice of default". The Administrative Agent will notify the Lenders of its receipt of any such
notice. The Administrative Agent shall take such action with respect to such Default, Event of Default as may be requested by the Required Lenders in accordance with  Article VIII; provided, however, that unless and
until the Administrative Agent has received any such request, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable or in the best interest of the Lenders. 

        SECTION
9.8    Credit Decisions.    Each Lender acknowledges that it has, independently of the Agent-Related Person
and each other Lender, and based on such Lender's review of the financial information of the Borrower, the Loan Documents (the terms and provisions of which being satisfactory to such Lender) and such
other documents, information and investigations as such Lender 

53

 

has
deemed appropriate, made its own credit decision to extend its Commitments. Each Lender also acknowledges that it will, independently of the Administrative Agent and each other Lender, and based
on such other documents, information and investigations as it shall deem appropriate at any time, continue to make its own credit decisions as to exercising or not exercising from time to time any
rights and privileges available to it under any Loan Document. 

        SECTION
9.9    Copies.    The Administrative Agent shall give prompt notice to each Lender of each notice or request
required or permitted to be given to the Administrative Agent by the Borrower pursuant to
the terms of this Agreement (unless concurrently delivered to the Lenders by the Borrower). The Administrative Agent will distribute to each Lender each document or instrument (including each document
or instrument delivered by the Borrower to the Administrative Agent pursuant to Articles V and VII)
received for its account and copies of all other communications received by the Administrative Agent from the Borrower for distribution to the Lenders by the Administrative Agent in accordance with
the terms of this Agreement. 

        SECTION
9.10    Collateral.    Except as otherwise provided in  Section 10.1(a) with respect to this Agreement, the
Administrative Agent may, with the prior consent of the Required Lenders (but not otherwise),
consent to any modification, supplement or waiver under any of the Loan Documents to which it is a party; provided that, without the prior consent of
each Lender, the Administrative Agent shall not (except as provided herein or in the Borrower Security Agreement) release any Collateral or otherwise terminate any Lien under the Borrower Security
Agreement, agree to additional obligations being secured by the Collateral (unless the Lien for such additional obligations shall be junior to the Lien in favor of the other obligations secured by the
Borrower Security Agreement, in which event the Administrative Agent may consent to such junior Lien, provided that it obtains the consent of the
Required Lenders thereto), alter the relative priorities of the obligations entitled to the benefits of the Liens created under the Borrower Security Agreement, except that no such consent shall be
required, and the Administrative Agent is hereby authorized, to release any Lien covering property that is the subject of either a disposition of property permitted hereunder or a disposition to which
the Required Lenders have consented. 

ARTICLE X  

 MISCELLANEOUS PROVISIONS  

        SECTION
10.1    Waivers, Amendments.    

        (a)   The
provisions of each Loan Document may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to by
the Borrower and the Required Lenders; provided, however, that no such amendment, modification or waiver
shall (i) forgive or reduce the principal amount or extend the final scheduled date of maturity of any Loan or LC Disbursement, reduce the stated rate of any interest or fee payable hereunder
or extend the scheduled date of any payment thereof, or increase the amount or extend the expiration date of any Lender's Commitment without the consent of each Lender directly affected thereby;
(ii) amend, modify or waive any provision of this Section 10.1, or any percentage specified in the definition of "Required Lenders", or
consent to the assignment or transfer by the Borrower of any of its rights and obligations under the Loan Documents, in each case without the written consent of all Lenders; (iii) amend, modify
or waive any pro rata provision of Section 4.8 or  4.9, or any provision in the Loan Documents which
provides for amounts paid in respect of the Obligations to be shared among the Lenders ratably,
without the consent of all Lenders; (iv) except as provided in Section 9.10, provide for any material release of Collateral without the
consent of all Lenders; or affect the interests, rights or obligations of the Administrative Agent quathe Administrative Agent or the Issuing Lenders  qua
the Issuing Lenders shall be made without consent of the Administrative Agent or the Issuing Lenders, as the case may be. Any such waiver and any
such 

54

 

amendment,
supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Borrower, the Lenders, the Administrative Agent, the Issuing Lenders and all future
holders of the Loans. In the case of any waiver, the Borrower and its Subsidiaries, the Lenders and the Administrative Agent shall be restored to their former position and rights and under the Loan
Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair
any right consequent thereon. 

        (b)   No
failure or delay by the Administrative Agent, any Issuing Lender or any Lender in exercising any power or right under any Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right, or any abandonment or discontinuance of steps to enforce such power or right, preclude any other or further exercise
thereof or the exercise of any other power or right. The rights and remedies of the Administrative Agent, the Issuing Lenders and the Lenders hereunder are cumulative and are not exclusive of any
rights or remedies they would otherwise have. No notice to or demand on the Borrower in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by
the Administrative Agent, any Issuing Lender, or any Lender under any Loan Document shall, in any event, be effective unless the same is permitted by paragraph (a) of this  Section 10.1, and
shall, except as may be otherwise stated in such waiver or approval, be applicable to subsequent transactions. No waiver or
approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. 

        SECTION
10.2    Notices.    All notices and other communications provided to any party hereto under any Loan Document
shall be in writing or by facsimile and addressed, delivered or transmitted to such party at its address or facsimile number set forth on the signature pages hereof or  Schedule 1.1(b) or set forth
in the Assignment Agreement or at such other address or facsimile number as may be designated by such party in a
written notice to the other parties. Any notice, if mailed and properly addressed with postage prepaid shall be effective five (5) Business Days after being sent or if properly addressed and
sent by pre-paid courier service, shall be deemed given when received; any notice, if
transmitted by facsimile, shall be deemed given when transmitted (if confirmed). Each Lender acknowledges and accepts the terms of the Communications Agreement and agrees that Communications (as
defined in the Communications Agreement) may be made available to such Lender as provided in the Communications Agreement. 

        SECTION
10.3    Payment of Costs and Expenses.    

        (a)   The
Borrower agrees to pay promptly on demand all reasonable out-of-pocket costs and expenses of the Administrative Agent and the Issuing Lenders
and their respective Affiliates (including the reasonable fees and out-of-pocket costs and expenses of special New York counsel and relevant local counsel to the Administrative
Agent) in connection with: 

        (i)    the
negotiation, preparation, execution, delivery and administration of each Loan Document, including schedules and exhibits, and any amendments, waivers, consents,
supplements or other modifications to any Loan Document as may from time to time hereafter be required; 

        (ii)   the
preparation and review of the form of any document or instrument relevant to any Loan Document; provided,  however, that the Borrower shall have no
obligation to pay for the cost of the documentation of assignments or participations as provided in  Section 10.11 (unless such assignment is made pursuant to Section 4.11); and 

        (iii)  in
the case of the Issuing Lenders, all out-of-pocket expenses incurred by any Issuing Lender in connection with the Issuance of any Letter of
Credit or any demand for payment thereunder; 

55

 

in
each case, upon presentation of statement of account in reasonable detail, whether or not the transactions contemplated hereby are consummated. 

        (b)   Without
duplication of the Borrower's obligations under Section 4.7, the Borrower further agrees to pay upon
demand, and to save the Administrative Agent, the Issuing Lenders and the Lenders harmless from all liability for all costs, expenses, assessments, or other charges, and any stamp or other similar
Taxes which may be payable in connection with the execution, delivery or enforcement of any Loan Document, the Loans or Letter of Credit hereunder or any filing, registration, recording or perfection
of any security interest contemplated by the Borrower Security Agreement. The Borrower
also agrees to reimburse the Administrative Agent, each Issuing Lender and each Lender, as applicable, promptly upon demand upon presentation of a statement of account in reasonable detail for
(i) all reasonable out-of-pocket costs and expenses (including fees and out-of-pocket expenses of counsel) incurred by the Administrative Agent,
each Issuing Lender and each Lender in connection with the enforcement or protection of the rights in connection with this Agreement and the other Loan Documents, including its rights under this
Section and including the negotiation of any restructuring or work-out, whether or not consummated, of any Obligations and (ii) all out-of-pocket costs and
expenses (including fees and out-of-pocket costs and expenses of counsel) by the Administrative Agent, each Issuing Lender and each Lender in connection with the enforcement of
any Obligations after an Event of Default or in connection with any insolvency proceedings; provided that, in either case, the Borrower shall not be
obligated to reimburse such costs and expenses that are found in a final judgment by a court of competent jurisdiction to have been incurred in an attempt to enforce such rights and remedies that were
pursued by such Administrative Agent or Lender in bad faith and without any reasonable basis in fact or law. 

        SECTION
10.4    Indemnification.    

        (a)   In
consideration of the execution and delivery of this Agreement by each Lender and the extension of the Commitments and the Loans, the Borrower hereby indemnifies,
exonerates and holds the Administrative Agent, each Issuing Lender and each Lender and each of their respective Affiliates, officers, directors and employees (collectively, the
"Indemnified Parties") free and harmless from and against any and all losses, costs, actions, causes of action, suits, liabilities and damages, and
expenses incurred in connection therewith (irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is sought), including any amounts paid to any
Agent-Related Person pursuant to Section 9.1(b) and reasonable attorneys' fees and disbursements but excluding claims for lost profits
(collectively, the "Indemnified Liabilities"), joint or several, that may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or relating to: 

        (i)    any
transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of any Loan or Letter of Credit (including any refusal by any
Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit; 

        (ii)   the
entering into and performance of any Loan Document by any of the Indemnified Parties (including any action brought by or on behalf of the Borrower as the result of
any determination by the Required Lenders pursuant to Article VI not to fund any Loan); 

        (iii)  any
investigation, litigation, proceeding, or obligation related to any Environmental Law or other matter in any case arising out of the relationship of the parties
under this Agreement; or 

56

 

        (iv)  the
presence, or alleged presence, on or under, or the escape, seepage, leakage, spillage, discharge, emission or release from, any real property owned, leased or
operated by the Borrower or any of its Subsidiaries thereof of any Hazardous Material (including any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under any
Environmental Law), or at any other locations regardless of whether caused by, or within the control of the Borrower, where such claim or liability arises out of the relationship of the parties under
this Agreement; 

whether
or not such investigation, litigation or proceeding is brought by the Borrower or its Affiliates, any of their respective shareholders or creditors, an Indemnified Party or any other person,
or an Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated, except for any such Indemnified Liabilities arising for the account of a
particular Indemnified Party by reason of the relevant Indemnified Party's (A) gross negligence or willful misconduct or (B) breach of such Indemnified party's obligations under this
Agreement. If and to the extent that the foregoing undertaking may be unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution to the payment and satisfaction of each
of the Indemnified Liabilities which is permissible under applicable law. 

        (b)   To
the extent permitted by applicable law, no Indemnified Party shall have any liability to the Borrower or its Affiliates or any of their respective shareholders or
creditors under any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, any Loan or the use of the proceeds thereof. 

        SECTION
10.5    Survival.    The obligations of the Borrower under Sections
2.6.7, 4.3, 4.5, 4.6,  4.7,
10.3 and 10.4, and the obligations of the Lenders
under Sections 9.1 and 2.6.7, shall in each case survive any termination of this Agreement, the payment
in full of all Obligations and the termination of all Commitments. The representations and warranties made by the Borrower in each Loan Document to which it is a party shall survive the execution and
delivery of such Loan Document. 

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

        SECTION
10.7    Headings.    The various headings and table of contents of each Loan Document are inserted for
convenience only and shall not affect the meaning, construction or interpretation of this Agreement or any other Loan Document or any provisions hereof or thereof. 

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

        SECTION
10.9    Governing Law; Entire Agreement.    This Agreement, and the rights and obligations of the parties
under this Agreement, shall be governed by, and construed and interpreted in accordance with, the law of the state of New York. The Loan Documents represent the agreement of the Borrower, the
Administrative Agent, the Issuing Lenders and the Lenders and supersede any and all prior agreements and understandings, oral or written, relative or with respect to the subject matter hereof, and
there are no promises, undertakings, representations or warranties by the Administrative Agent, any Issuing Lender or any Lender relative to subject matter hereof not expressly set forth or referred
to in the Loan Documents. 

57

 

        SECTION
10.10    Successors and Assigns.    This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and assigns; provided, however, that: 

        (a)   the
Borrower may not assign or transfer its rights or obligations hereunder without the prior written consent of the Administrative Agent, all Issuing Lenders and all
Lenders; and 

        (b)   the
rights of sale, assignment and transfer of the Lenders are subject to Section 10.11. 

        SECTION
10.11    Sale and Transfer of Loans; Participations in Loans.    Each Lender may assign, or sell
participations in, its Loans to one or more other Persons in accordance with this Section 10.11. 

        SECTION
10.11.1    Assignments.    

        (a)   Any
Lender (an "Assignor") may, in accordance with applicable law, at any time and from time to time assign to any Person
(an "Assignee"), with the consent of the Administrative Agent, each Issuing
Lender and, except at any time a Default or Event of Default shall have occurred and be continuing, the Borrower (which consent, in each case, shall not be unreasonably withheld or delayed), all or
any part of its rights and obligations under this Agreement pursuant to an Assignment Agreement, executed by such Assignee, such Assignor and any other Person whose consent is required pursuant to
this paragraph, and delivered to the Administrative Agent for its acceptance and recording in the Register; provided that no such assignment to an
Assignee (other than any Lender or any Affiliate or Approved Fund thereof) shall be in an aggregate principal amount of less than $3,000,000 (other than in the case of an assignment of all of a
Lender's interests under this Agreement and treating simultaneous assignments to and from Approved Funds of a single Lender as one assignment), unless otherwise agreed by the Borrower, the
Administrative Agent and each Issuing Lender and; provided, further, that after giving effect to any
such assignment the assigning Lender shall have Loans or Commitments remaining of at least $3,000,000 in the aggregate amount (other than in the case of an assignment of all of a Lender's interests
under this Agreement and treating simultaneous assignments to and from Approved Funds of a single Lender as one assignment). Upon such execution, delivery, acceptance and recording, from and after the
effective date determined pursuant to such Assignment Agreement, (i) the Assignee thereunder shall be a party hereto and, to the extent provided in such Assignment Agreement, have the rights
and obligations of a Lender hereunder with Loans and Commitments as set forth therein, and (ii) the Assignor thereunder shall, to the extent provided in such Assignment Agreement, be released
from its obligations under this Agreement (and, in the case of an Assignment Agreement covering all of an Assignor's rights and obligations under this Agreement, such Assignor shall cease to be a
party hereto). Any assignment or sale that does not comply with this clause (a) shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with Section 10.11.2. 

        (b)   The
Administrative Agent shall, on behalf of the Borrower, maintain at its address referred to on Schedule 1.1(b)
a copy of each Assignment Agreement delivered to it and a register (the "Register") for the recordation of the names and addresses of the Lenders and
the Commitment of, and the principal amount of the Loans owing to, each Lender from time to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower,
the Administrative Agent, the Issuing Lenders and the Lenders shall treat each Person whose name is recorded in the Register as the owner of the Loans or the Commitments, as the case may be, recorded
therein for all purposes of this Agreement notwithstanding notice to the contrary. Any assignment of any Loan or any Commitment shall be effective only upon appropriate entries with respect thereto
being made in the Register. 

58

 

        (c)   Upon
its receipt of an Assignment Agreement executed by an Assignor, an Assignee and any other Person whose consent is required by  Section 10.11.1(a), together with payment to the Administrative Agent
of a registration and processing fee of $3,500 (unless waived by the
Administrative Agent in its discretion and provided that only one such fee shall be payable in the case of simultaneous assignments to two or more
Approved Funds of a single Lender), the Administrative Agent shall (i) promptly accept such Assignment Agreement and (ii) record the information contained therein in the Register on the
effective date determined pursuant thereto. 

        (d)   For
avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this Section 10.11.1
concerning assignments of Loans and Commitments relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests, including any pledge or assignment
by a Lender of any Loan to any Federal Reserve Bank in accordance with applicable law; provided, that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a party hereto. 

        (e)   Notwithstanding
anything to the contrary contained herein, any Lender (a "Granting Lender") may grant to a special
purpose funding vehicle (an "SPC"), identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement;  provided that (i)
 nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall
utilize the related Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any
indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior
indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition, notwithstanding anything to the contrary contained in this  Section 10.11.1, any SPC may (A) with notice to, but without
the prior written consent of, the Borrower and the Administrative Agent and
without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans and (B) disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This  Section 10.11.1(e) may not be amended without the written consent of each SPC. The Granting Lender, such SPC and any assignee of such SPC shall
comply with the requirements of Section 4.7 as Lender. 

        SECTION
10.11.2    Participations.    With notice to the Borrower and the Administrative Agent, any Lender may at any
time sell to one or more Persons (each of such Persons being 

59

 

herein
called a "Participant") participating interests in any of the Loans, Commitments or other interests of such Lender hereunder;  provided, however, that: 

        (a)   no
participation contemplated in this Section 10.11.2 shall relieve such Lender from its Loans, Commitments or
other obligations under any Loan Document; 

        (b)   such
Lender shall remain solely responsible for the performance of its Loans, Commitments and such other obligations; 

        (c)   the
Borrower, the Administrative Agent and the Issuing Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and
obligations under each of the Loan Documents; 

        (d)   no
Participant, unless such Participant is an Affiliate of such Lender, or is itself a Lender, shall be entitled to require such Lender to take or refrain from taking
any action under any Loan Document, except as provided in clause (f) of this  Section 10.11.2; 

        (e)   the
Borrower shall not be required to pay any amount under Sections 2.6.7,  4.3, 4.4, 4.5,  4.6, 4.7, 4.8,  4.9,
10.3 and 10.4, that is greater than the amount
which it would have been required to pay had no participating interest been sold; 

        (f)    in
no event shall any Participant under any such participation have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent to
any departure by the Borrower therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the Loans or any fees payable hereunder, extend the
due date of such principal, interest or fee payments or increase the amount or extend the Maturity Date of such Loans or Commitments, in each case to the extent subject to such participation; 

        (g)   the
Borrower agrees that if amounts outstanding under this Agreement and the Loans are due or unpaid, or shall have been declared or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall, to the maximum extent permitted by applicable law, be deemed to have the right of setoff in respect of its participating interest in
amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement,  provided that, in purchasing such
participating interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof
as provided in Section 4.10 as fully as if it were a Lender hereunder; and 

        (h)   the
Borrower also agrees that each Participant shall be entitled to the benefits of Sections 4.3,  4.6 and 4.7
with respect to its participation in the Loans and Commitments outstanding from time to time
as if it was a Lender; provided that, in the case of Section 4.7, such Participant shall have
complied with the requirements of said Section, as if it were a Lender and provided,  further, that no
Participant shall be entitled to receive any greater amount pursuant to any such  Section than the transferor Lender would have been entitled to receive in respect of the amount of the participation
transferred by such transferor
Lender to such Participant had no such transfer occurred. 

        SECTION
10.12    USA Patriot Act.    Each Lender hereby notifies the Borrower that pursuant to the requirements of the
USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in
accordance with the Act. 

        SECTION
10.13    Other Transactions.    Nothing contained herein shall preclude the Administrative Agent, any Issuing
Lender or any other Lender from engaging in any transaction, in addition to those 

60

 

contemplated
by any Loan Document, with the Borrower or any of its Affiliates in which the Borrower or such Affiliate is not restricted hereby from engaging with any other Person. 

        SECTION
10.14    Submission To Jurisdiction; Waivers.    Each of the Borrower, the Administrative Agent, the Issuing
Lenders and the Lenders hereby irrevocably and unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to the Loan Documents to which it is a party, or for recognition and enforcement of any
judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States for the Southern District of New York, and
appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such Person at its address set forth on Schedule 1.1(b) or at such other address of which the Administrative
Agent shall have been notified pursuant to Section 10.2; 

        (d)   agrees
that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other
jurisdiction; and 

        (e)   waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this  Section any special, indirect, exemplary, punitive or
consequential damages. 

        SECTION
10.15    WAIVERS OF JURY TRIAL.    EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

        SECTION
10.16    Non-Recourse Persons.    The Lenders acknowledge that no Non-Recourse Person
shall have any responsibility or liability for the Obligations. 

        SECTION
10.17    Acknowledgments.    The Borrower hereby acknowledges that: 

        (a)   it
has been advised by counsel in the negotiation, execution and delivery of the Loan Documents; 

        (b)   neither
the Administrative Agent, any Issuing Lender nor any Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with any
of the Loan Documents, and the relationship between Administrative Agent, the Issuing Lenders and Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or therewith is
solely that of debtor and creditor; and 

        (c)   no
joint venture is created by any of the Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Borrower
and the Lenders. 

61

 

        SECTION
10.18    Confidentiality.    Each of the Administrative Agent, each Issuing Lender and each Lender agrees to
keep confidential all non-public information provided to it by the Borrower pursuant to this Agreement; provided that nothing herein shall
prevent the Administrative Agent, any Issuing Lender or any Lender from disclosing any such information (a) to the Administrative Agent, any Issuing Lender, any other Lender or any Affiliate of
any Lender, (b) to any transferee or prospective transferee that agrees to comply with the provisions of this Section 10.18, (c) to
its employees, directors, agents, attorneys, accountants and other professional advisors or those of any of its Affiliates, (d) upon
the request or demand of any Governmental Authority, (e) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any Requirement of
Law, (f) if requested or required to do so in connection with any litigation or similar proceeding, (g) that has been publicly disclosed, (h) to the National Association of
Insurance Commissioners or any similar organization or any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings
issued with respect to such Lender, or (i) in connection with the exercise of any remedy under any Loan Document. Notwithstanding anything herein to the contrary, the Borrower, Administrative
Agent, each Issuing Lender and each Lender (and their Affiliates and their respective partners, officers, directors, employees, accountants, attorneys and other advisors, agents and other
representatives) may disclose to any and all Persons, without limitation of any kind, any information with respect to the U.S. federal tax treatment and any facts that may be relevant to the U.S.
federal tax structure of the transactions contemplated hereby and all materials of any kind (including opinions and other tax analyses) that are provided to any of them relating to such treatment and
tax structure; provided, however, that none of them shall disclose any other information, the disclosure
of which is otherwise limited, that is not relevant to understanding the U.S. federal tax treatment or U.S. federal tax structure of the transaction (including the identity of any party and
information that could lead another to determine the identity of any party), or any other information to the extent that such disclosure could result in a violation of any federal or state securities
law. 

62

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

	 	 	EDISON MISSION ENERGY
	

 	
 	

By:	

/s/  STEVEN EISENBERG      
 Name: Steven Eisenberg

Title: Vice President
	

 	
 	

Address for Notices:
	

 	
 	

18101 Von Karman Avenue

Suite 1700

Irvine, CA 92616

Attention: General Counsel

Telecopier No.: (949) 752-1420
	

 	
 	

Taxpayer Identification Number: 95-4031807

	 	 	CITICORP NORTH AMERICA, INC.,

as Administrative Agent
	

 	
 	

By:	

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

Title: Director
	

 	
 	

Address for Notices:
	

 	
 	

2 Penns Way, Suite 110

New Castle, DE 19720

Attention: Laura Quashne

Telecopier No: (302) 894-6012

	 	 	CITICORP NORTH AMERICA, INC.,

as Issuing Lender
	

 	
 	

By:	

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

Title: Director
	

 	
 	

Address for Notices:
	

 	
 	

388 Greenwich Street, 21st Floor

New York, NY 10013

Attention: Sarah Terner

Telecopier No.: (212) 921-5947

	 	 	LENDERS
	

 	
 	
CITICORP NORTH AMERICA, INC.
	

 	
 	

By:	

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

Title: Director
	

 	
 	

Address for Notices:
	

 	
 	

2 Penns Way

New Castle, DE 19720

Attention: Karen Riley

Telecopier No.: (212) 994-0847

	 	 	CREDIT SUISSE FIRST BOSTON,

Acting Through Its Cayman Islands Branch
	

 	
 	

By:	

/s/  JAMES P. MORAN      
 Name: James P. Moran

Title: Director
	

 	
 	

By:	

/s/  DENISE L. ALVAREZ      
 Name: Denise L. Alvarez

Title: Associate
	

 	
 	

Address for Notices:
	

 	
 	

One Madison Avenue

New York, NY 10010

Attention: Ed Markowski

Telecopier No.: (212) 538-6851

	 	 	JPMORGAN CHASE BANK
	

 	
 	

By:	

/s/  THOMAS L. CASEY      
 Name: Thomas L. Casey

Title: Vice President
	

 	
 	

Address for Notices:
	

 	
 	

1111 Fannin Street, 10th Floor

Houston, TX 77002

Attention: Debra Torres

Telecopier No.: (713) 427-6307

	 	 	KBC BANK, N.V.
	

 	
 	

By:	

/s/  JEAN-PIERRE DIELS      
 Name: Jean-Pierre Diels

Title: First Vice President
	

 	
 	

By:	

/s/  ERIC RASKIN      
 Name: Eric Raskin

Title: Vice President
	

 	
 	

Address for Notices:
	

 	
 	

125 West 55th Street, 10th Floor

New York, NY 10019

Attention: Rose Pagan

Telecopier No.: (212) 956-5580

	 	 	LEHMAN COMMERCIAL PAPER INC.
	

 	
 	

By:	

/s/  FRANK P. TURNER      
 Name: Frank P. Turner

Title: Authorized Signatory
	

 	
 	

Address for Notices:
	

 	
 	

745 Seventh Avenue, 16th Floor

New York, NY 10019

Attention: Michael Herr

Telecopier No.: (212) 520-0450

	 	 	UBS LOAN FINANCE LLC
	

 	
 	

By:	

/s/  WILFRED V. SAINT      
 Name: Wilfred V. Saint

Title: Director Banking Products Services, US
	

 	
 	

By:	

/s/  JOSELIN FERNANDES      
 Name: Joselin Fernandes

Title: Associate Director Banking Products Services, US
	

 	
 	

Address for Notices:
	

 	
 	

677 Washington Blvd.

6th Floor South

Stamford, CT 06901

Attention: Deborah Porter

Telecopier No.: (203) 719-4176

SCHEDULE 1.1(a)
  to Credit Agreement

COMMITMENTS  

	Name of Lender
 
	 	Commitment

	Citicorp North America, Inc.	 	$	19,791,666.67
	

Credit Suisse First Boston	
 	
$	

19,791,666.67
	

JPMorgan Chase Bank	
 	
$	

19,791,666.67
	

KBC Bank, N.V.	
 	
$	

8,333,333.33
	

Lehman Commercial Paper Inc.	
 	
$	

19,791,666.67
	

UBS Loan Finance LLC	
 	
$	

12,500,000.00

SCHEDULE 1.1(b)
  to Credit Agreement  

LENDING OFFICES  

	Name of Lender
 
	 	Domestic Office
 
	 	Eurodollar Office
 

	Citicorp North America, Inc.	 	388 Greenwich Street

New York, NY 10013	 	388 Greenwich Street

New York, NY 10013
	

Credit Suisse First Boston	
 	

11 Madison Avenue

13th Floor

New York, NY 10010	
 	

11 Madison Avenue

13th Floor

New York, NY 10010
	

JPMorgan Chase Bank	
 	

270 Park Avenue

New York, NY 10017	
 	

270 Park Avenue

New York, NY 10017
	

KBC Bank	
 	

125 West 55th Street

10th Floor

New York, NY 10019	
 	

125 West 55th Street

10th Floor

New York, NY 10019
	

Lehman Commercial Paper Inc.	
 	

3 World Financial Center

8th Floor

New York, NY 10285	
 	

3 World Financial Center

8th Floor

New York, NY 10285
	

UBS Loan Finance LLC	
 	

677 Washington Blvd.

6th Floor South

Stamford, CT 06901	
 	

677 Washington Blvd.

6th Floor South

Stamford, CT 06901

SCHEDULE 1.1(c)

to Credit Agreement  

Collins Facility Lease Agreements  

	1.
	Facility
Lease Agreement (T1), dated as of December 15, 1999 (as amended, supplemented or otherwise modified), between Collins Holdings EME, LLC and Nesbitt Asset Recovery,
Series C-1 (formerly known as Collins Trust I).

	2.
	Facility
Lease Agreement (T2), dated as of December 15, 1999 (as amended, supplemented or otherwise modified), between Collins Holdings EME, LLC and Nesbitt Asset Recovery,
Series C-2 (formerly known as Collins Trust II).

	3.
	Facility
Lease Agreement (T3), dated as of December 15, 1999 (as amended, supplemented or otherwise modified), between Collins Holdings EME, LLC and Nesbitt Asset Recovery,
Series C-3 (formerly known as Collins Trust III).

	4.
	Facility
Lease Agreement (T4), dated as of December 15, 1999 (as amended, supplemented or otherwise modified), between Collins Holdings EME, LLC and Nesbitt Asset Recovery,
Series C-4 (formerly known as Collins Trust IV). 

SCHEDULE 2.6.12

to Credit Agreement  

Agreed Alternate Currency Letters of Credit  

None 

SCHEDULE 7.2.1

to Credit Agreement  

Liens  

None 

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Exhibit 10.14  

EXECUTION COUTERPART 

 

 
 
SECURITY AGREEMENT  

between 

EDISON MISSION ENERGY  

and 

CITICORP NORTH AMERICA, INC.,

as Administrative Agent 

Dated
as of April 27, 2004 

 

TABLE OF CONTENTS  

	 
	 
	 	 
	 	Page

	Section 1.	 	Definitions	 	1
	Section 2.	 	Representations and Warranties	 	2
	Section 3.	 	The Pledge	 	2
	Section 4.	 	Collateral Accounts; cash proceeds	 	3
	 	4.01	 	Collateral Accounts	 	3
	 	4.02	 	Investment of Balance in Collateral Accounts	 	4
	Section 5.	 	Further Assurances; Remedies	 	5
	 	5.01	 	Delivery and Other Perfection	 	5
	 	5.02	 	Other Financing Statements and Liens.	 	5
	 	5.03	 	Special Provisions Relating to the Pledged Collateral.	 	6
	 	5.04	 	Credit Agreement Event of Default, Etc.	 	6
	 	5.05	 	Deficiency	 	8
	 	5.06	 	Removals, Etc.	 	8
	 	5.07	 	Private Sale	 	8
	 	5.08	 	Application of Proceeds	 	8
	 	5.09	 	Attorney-in-Fact	 	8
	 	5.10	 	Perfection	 	9
	 	5.11	 	Termination	 	9
	 	5.12	 	Further Assurances	 	9
	Section 6.	 	Miscellaneous	 	9
	 	6.01	 	Notices	 	9
	 	6.02	 	Delay and Waiver	 	9
	 	6.03	 	Amendments, Etc.	 	9
	 	6.04	 	Successors and Assigns	 	9
	 	6.05	 	Counterparts	 	9
	 	6.06	 	Governing Law; Submission to Jurisdiction	 	10
	 	6.07	 	Headings	 	10
	 	6.08	 	Agents and Attorneys-in-Fact	 	10
	 	6.09	 	Severability	 	10
	Annex 1—Pledged Interests	 	 

SECURITY AGREEMENT  

        SECURITY
AGREEMENT (this "Agreement") dated as of April 27, 2004, between EDISON MISSION ENERGY, a corporation organized under the
laws of Delaware (the "Obligor"), and CITICORP NORTH AMERICA, INC., as administrative agent for the Lenders and Issuing Lenders under the Credit
Agreement referred to below (in such capacity, together with its successors in such capacity, the "Administrative Agent"). 

        The
Obligor, the Administrative Agent, the various financial institutions as are or may become parties thereto (collectively, the
"Lenders"), and the Issuing Lenders have entered into that certain Credit Agreement (as amended, supplemented, amended and restated or otherwise
modified and in effect from time to time, the "Credit Agreement") dated as of April 27, 2004. This Agreement is the Borrower Security Agreement
referred to in the Credit Agreement. 

        The
Obligor owns a 100% ownership interest in each of the Collateral Parties on the date hereof and 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, and the interpretations applicable thereto under, the Credit Agreement. In addition, as used herein: 

        "Assigned Agreements" has the meaning set forth in Section 3(e). 

        "Big Four Companies" means Camino Energy Company, a California corporation, Southern Sierra Energy Company, a California corporation, San
Joaquin Energy Company, a California corporation and Western Sierra Energy Company, a California corporation. 

        "Big Four Revenue" has the meaning set forth in Section 5.03(b). 

        "Big Four Revenue Account" means the Account, as such term is defined in the Account Control Agreement dated as of April 27, 2004
between the Obligor, the Administrative Agent and Citibank, N.A. 

        "Collateral Accounts" means the Big Four Revenue Account, Default Collateral Account and the LC Collateral Account. 

        "Credit Agreement Termination Date" means the date on which all Secured Obligations, other than contingent liabilities and Secured
Obligations which are unasserted at such date, have been finally paid and satisfied in full and all Loans and Commitments have been terminated. 

        "Default Collateral Account" has the meaning set forth in Section 4.01(a). 

        "Homer City" means Edison Mission Holdings Co., a California corporation. 

        "Indemnitee" has the meaning set forth in Section 5.11(a). 

        "LC Collateral Account" has the meaning set forth in Section 4.01(b). 

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

        "Mission del Cielo" means Mission del Cielo, Inc., a Delaware corporation. 

        "Permitted Investments" means (a) direct obligations of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing
within one year from the date of acquisition thereof; (b) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of 

 

acquisition,
the highest credit rating obtainable from S&P or from Moody's; (c) investments in certificates of deposit, banker's acceptances and time deposits maturing within 180 days
from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws
of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000; and (d) fully collateralized repurchase
agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial
institution satisfying the criteria described in clause (c) above. 

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

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

        "Secured Obligations" means all Obligations of the Obligor under the Loan Documents up to the amount available to be secured under the
Obligor's Indebtedness (other than the Credit Agreement) without requiring the Pledged Collateral to be equally and ratably shared with the holders of such Indebtedness. 

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

        SECTION 2.    REPRESENTATIONS AND WARRANTIES.    The Obligor
represents and warrants to the Administrative Agent and the other Lenders 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 the
pledges and security interests in favor of the Administrative Agent for
the benefit of the Lenders created or provided for herein, which pledges and security interests constitute a first priority perfected pledge and security interest in and to all of such Pledged
Collateral as provided in Section 3. 

        (b)   The
Pledged Interests evidenced by the certificates identified under the name of the Obligor in Annex 1 are duly
authorized, validly existing, fully paid and non-assessable and none of the Pledged Interests is subject to any contractual restriction or any restriction under the certificate of
incorporation or certificate of formation of each Collateral Party (except for any restriction contained herein). 

        (c)   The
Pledged Interests evidenced by the certificates identified under the name of the Obligor in Annex 1 constitute all
the membership interests, shares or other ownership interests of any class or character of each Collateral Party, in each case, beneficially owned by the Obligor on the date hereof (whether or not
registered in the name of the Obligor), and Annex 1 correctly identifies, as at the date hereof, the membership interests and shares constituting the
Pledged Interests and the respective issuer, certificate numbers, class and amounts of such shares. 

        (d)   As
of the Effective Date, all Obligations of the Obligor under the Loan Documents available to be secured under the Obligor's Indebtedness (other than the Credit
Agreement) without requiring the Pledged Collateral to be equally and ratably shared with the holders of such Indebtedness is $100,000,000. 

        SECTION 3.    THE PLEDGE.    As collateral security for the
prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the Secured Obligations, the Obligor hereby pledges and grants to the Administrative Agent, for the
benefit of the Lenders, a security interest in all of the Obligor's right, title and interest in the following property, whether now owned by 

2

 

the
Obligor or hereafter acquired and whether now existing or hereafter coming into existence (all being collectively referred to herein as "Pledged
Collateral"): 

        (a)   the
shares in the Westside Entities, Homer City, Mission del Cielo and the membership interests in MGE identified in Annex
1 or other ownership interests of whatever class or character in these companies, now or hereafter owned by the Obligor, in each case together with the certificates (if any)
evidencing the same (collectively, the "Pledged Interests"); 

        (b)   all
membership interests, stock, securities, moneys or property representing a dividend on any of the Pledged Interests, or representing a distribution or return of
capital upon or in respect of the Pledged Interests, or resulting from a split-up, revision, reclassification or any change of the Pledged Interests or otherwise received in exchange
therefor, and any subscription warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Interests; 

        (c)   in
the event of any consolidation or merger involving the Collateral Parties or the Obligor in which a Collateral Party or the Obligor, respectively, is not the
surviving entity, all ownership interests of any class or character of the successor entity formed by or resulting from such consolidation or merger (the Pledged Interests together with all other
certificates of membership interests, shares, securities, properties or moneys as may from time to time be pledged hereunder pursuant to  clause (a) or (b) above and this  clause (c)being herein collectively referred to as the "Stock Collateral"); 

        (d)   the
Collateral Accounts 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, including without limitation the Big Four Revenue; and 

        (e)   all
proceeds 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. 

        SECTION 4.    COLLATERAL ACCOUNTS; CASH PROCEEDS.    

        4.01    Collateral Accounts.    

        (a)   The
Administrative Agent will cause to be established at a banking institution to be selected by the Administrative Agent a cash collateral account (the
"Default Collateral Account"), into which there shall be deposited from time to time upon the occurrence and during the continuance of an Event of
Default the cash proceeds of any of the Pledged Collateral required to be delivered to the Administrative Agent pursuant hereto. The balance from time to time in the Default 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
sentence, the Administrative Agent shall remit the collected balance standing to the credit of the Default 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 Event of Default, the Administrative Agent may (and, if instructed by the Required Lenders, shall) in its (or
their) discretion apply or cause to be applied (subject to collection) the balance from time to time standing to the credit of the Default 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 Default 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 Event of Default, if the proceeds of any Pledged Collateral
hereunder 

3

 

shall
be received by it, the Obligor shall, upon the request of the Administrative Agent, as promptly as possible deposit such proceeds into the Default Collateral Account. Until so deposited, all
such proceeds shall be held in trust by the Obligor for and as the property of the Administrative Agent and shall not be commingled with any other funds or property of the Obligor. The Default
Collateral Account shall be established in the name of the Obligor, but under the exclusive dominion and control of the Administrative Agent. 

        (b)   The
Administrative Agent will cause to be established at a banking institution to be selected by the Administrative Agent a cash collateral account (the
"LC Collateral Account"), into which there shall be deposited from time to time amounts required to be deposited to such account pursuant to  Section 2.6.13 of the Credit Agreement. The balance from time to time in the LC Collateral Account shall constitute part of the Pledged
Collateral hereunder and shall be held by the Administrative Agent in the first instance for the LC Exposure under the Credit Agreement and thereafter for the payment of the Secured Obligations. The
LC Collateral Account shall be established in the name of the Obligor, but under the exclusive dominion and control of the Administrative Agent. 

        (c)   The
Obligor shall establish the Big Four Account into which cash and Permitted Investments received from the Big Four Companies shall be deposited or credited pursuant
to Section 5.03(b). Except as expressly provided in the next sentence, the Administrative Agent shall remit the collected balance standing to the credit of the Big Four Revenue 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 Event of Default, the Administrative Agent may (and, if instructed by the
Required Lenders, shall) in its (or their) discretion apply or cause to be applied (subject to collection) the balance from time to time standing to the credit of the Big Four Revenue Account to the
payment of the Secured Obligations in the manner specified in Section 5.08. The balance from time to time in the Big Four Revenue 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 Event of Default, if the any
amounts required to be deposited into the Big Four Revenue Account hereunder shall be received by it, the Obligor shall, upon the request of the Administrative Agent, as promptly as possible deposit
such proceeds into the Big Four Revenue Account. Until so deposited, all such proceeds shall be held in trust by the Obligor for and as the property of the Administrative Agent and shall not be
commingled with any other funds or property of the Obligor. The Big Four Revenue Account shall be established in the name of the Obligor, but under the exclusive dominion and control of the
Administrative Agent. 

        (d)   Each
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 Accounts.    The cash balance standing to the credit of the Collateral
Accounts shall be invested from time to time in such Permitted Investments as the Obligor (or, after the occurrence and during the continuance of an Event of Default, the Administrative Agent) shall
determine, which Permitted Investments shall be credited to the Collateral Accounts); provided that at any time after the occurrence and during the continuance of an Event of Default, the
Administrative Agent may (and, if instructed by the Required Lenders, shall) in its (or their) 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 5.09. 

4

 

        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 Credit Agreement Termination Date,
with the Administrative Agent and each of the other Lenders as follows: 

        5.01    Delivery and Other Perfection.    The Obligor shall: 

        (a)   if
any of the membership interests, shares, securities, moneys or property required to be pledged by the Obligor under clauses
(a), (b), and (c) of  Section 3 are received by the Obligor, forthwith either
(x) transfer and deliver to the Administrative Agent such membership interests,
shares of stock or
securities so received by the Obligor (together with the certificates for any such membership interests, shares and securities duly endorsed in blank or accompanied by undated stock powers duly
executed in blank), all of which thereafter shall be held by the Administrative Agent, pursuant to the terms of this Agreement, as part of the Pledged Collateral or (y) take such other action
as the Administrative Agent shall reasonably request, at the direction of the Required Lenders, to duly record the Lien created hereunder in such stock, securities, moneys or property in said  clauses (a), (b) and (c); 

        (b)   give,
execute, deliver, file and/or record any financing statement, notice, instrument, document, agreement or other papers that may be necessary or reasonably requested
by the Administrative Agent, at the direction of the Required Lenders, to create, preserve, perfect or validate the security interest granted pursuant hereto or to enable the Administrative Agent, at
any time following the occurrence and continuance of an Event of 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 Administrative Agent or its nominee (and the Administrative Agent agrees that if any Pledged Collateral is transferred into its name
or the name of its nominee, the Administrative Agent will thereafter promptly give to the Obligor copies of any notices and communications received by it with respect to the 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; and 

        (d)   permit
representatives or agents of the Administrative Agent, 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 Event of Default, permit representatives or agents of the Administrative Agent to be
present at the Obligor's place of business to receive copies of all communications and remittances relating to the Pledged Collateral, and forward copies of any notices or communications received by
the Obligor with respect to the Pledged Collateral, all in such manner as the Administrative Agent may require. 

        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 the pledges and security interests in favor
of the Administrative Agent for the benefit of the Lenders created pursuant hereto or provided for herein, which pledges and security interests constitute a first priority perfected pledge and
security interest in and to all of the Pledged Collateral. 

        (b)   Without
the prior written consent of the Administrative Agent (at the direction of the Required Lenders), the Obligor shall not 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 Administrative Agent is not named
as the sole secured party for the benefit of the Lenders or (ii) cause or permit any 

5

 

Person,
other than the Administrative Agent to have "control" (as such term is defined in Section 9-104 of the UCC) of any existing Collateral Account. 

        5.03    Special Provisions Relating to the Pledged Collateral.    

        (a)    Stock Collateral.    

        (i)    The
Obligor will cause the Stock Collateral to constitute at all times all ownership interests of any class or character of the Collateral Parties then outstanding. 

        (ii)   So
long as no Event of 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 Loan 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 Loan Document; and the Administrative Agent, at the direction of the Required Lenders, shall execute and deliver to the Obligor or cause to be 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 for the purpose of enabling the Obligor to exercise the rights
and powers that it is entitled to exercise pursuant to this Section 5.03(a)(ii). 

        (iii)  If
any Event of Default shall have occurred, then so long as such Event of Default shall continue, and whether or not the Administrative Agent or any Lender 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 Loan
Document or any other agreement relating to the Secured Obligations, all dividends and other distributions on the Stock Collateral shall be paid directly to the Administrative Agent and retained by it
in the Collateral Account as part of the Pledged Collateral, subject to the terms of this Agreement, and, if the Administrative Agent shall so request in writing, the Obligor agrees to execute and
deliver to the Administrative Agent appropriate additional dividend, distribution and other orders and documents to that end, provided that if such
Event of Default is cured, any such dividend or distribution theretofore paid to the Administrative Agent shall, upon request of the Obligor (except to the extent theretofore applied to the Secured
Obligations), be returned by the Administrative Agent to the Obligor. 

        (iv)  All
Stock Collateral in which the Obligor shall hereafter grant a security interest pursuant to Section 3 shall
be duly authorized, validly existing, fully paid and non-assessable and none of the Stock Collateral, including the Stock Collateral evidenced by the certificates identified under the name
of the Obligor in Annex 1, shall be subject to any contractual restriction (except for any such restriction contained herein). 

        (b)    Big Four Revenue Account.    The Obligor shall provide irrevocable written instructions (copies of which shall
be provided to the Administrative Agent) to each of the Big Four Companies to deliver to the Big Four Revenue Account any cash or Permitted Investments distributed, paid or otherwise transferred to
the Obligor (the "Big Four Revenue"). 

        5.04    Credit Agreement Event of Default, Etc.    Upon the occurrence and during the continuance of an Event of
Default: 

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

6

 

        (b)   the
Administrative Agent may make any reasonable compromise or settlement deemed desirable 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
Administrative Agent 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 Administrative Agent 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
Administrative Agent may, at the direction of the Required Lenders, 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
Administrative Agent 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 Administrative Agent, any other Lender 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 places as the Administrative Agent 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 Administrative Agent, at the direction of the Required Lenders,
may reasonably deem commercially reasonable, and the Administrative Agent or any other Lender 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 Administrative Agent 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. 

        The
proceeds of each collection, sale or other disposition under this Section 5.04 shall be applied in accordance with  Section 5.08 hereto.

        The
Obligor recognizes that, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws, the Administrative Agent 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
Administrative Agent 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 Administrative Agent shall have no obligation to engage in public sales and no 

7

 

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 Administrative Agent,
the Obligor shall not (a) maintain any of its books and records with respect to the Pledged Collateral at any office 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 Administrative Agent and the other Lenders 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 Administrative Agent or any other Lender 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 Administrative Agent 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 Administrative Agent under  Section 4 or this Section 5, shall be applied by the Administrative Agent: 

        First, to the payment of the costs and expenses of such collection, sale or other realization, including reasonable
out-of-pocket costs and expenses of the Administrative Agent and the fees and expenses of its agents and counsel, and all expenses incurred and advances made by the
Administrative Agent in connection therewith; 

        Next, to the payment in full of the Secured Obligations, in each case equally and ratably in accordance with the respective amounts
thereof then due and owing; and 

        Finally, to the payment to the Obligor, or its successors or assigns, or as a court of competent jurisdiction may direct, of any surplus
then remaining. 

        As
used in this Section 5, "proceeds" of Pledged Collateral means cash, securities and other property realized in respect of, and
distributions in kind of, Pledged Collateral, including any thereof received under any reorganization, liquidation or adjustment of debt of the Obligors or any issuer of or obligor on any of the
Pledged Collateral. 

        5.09    Attorney-in-Fact.    Without limiting any rights or powers granted by this Agreement
to the Administrative Agent while no Event of Default has occurred and is continuing, upon the occurrence and during the continuance of any Event of Default, the Administrative Agent 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 Administrative Agent may, at the direction of the Required Lenders, 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 Administrative Agent shall be entitled under
this Section 5 to make collections in respect of the Pledged Collateral, the Administrative Agent shall have the right and power to receive,
endorse and collect all checks 

8

 

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
deliver to the Administrative Agent (a) all certificates identified in Annex 1, accompanied by undated stock powers duly executed in blank,
(b) a UCC-1 financing statement, for filing in each jurisdiction requested by the Administrative Agent, at the direction of the Required Lenders, naming the Obligor as debtor and
the Administrative Agent as secured party and (c) such documents as are necessary to grant the Collateral Trustee control of the Big Four Revenue Account (including an account control
agreement). 

        5.11    Termination.    When the Credit Agreement Termination Date shall have occurred, this Agreement shall
terminate, and the Administrative Agent 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 request, and at the expense of the Obligor, the Administrative Agent 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
Administrative Agent, the Obligor will execute and deliver such further documents and do such other acts and things as the Administrative Agent, at the direction of the Required Lenders, may
reasonably request in order fully to effect the purposes of this Agreement. 

        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 10.2 of the Credit Agreement. Unless otherwise changed in
accordance with the Credit 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 Administrative Agent (with the consent of the Required Lenders in accordance with the Credit Agreement). Any such amendment or waiver shall be binding upon
the Administrative Agent and each other Lender, each holder of any of the Secured Obligations and the Obligor. 

        6.04    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the Obligor, the Administrative Agent, each of the other Lenders 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 Administrative Agent). 

        6.05    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. 

9

 

        6.06    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. 

        6.07    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. 

        6.08    Agents and Attorneys-in-Fact.    The Administrative Agent 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. 

        6.09    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. 

10

        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. 

	 	 	EDISON MISSION ENERGY
	

 	
 	

By:	

/s/  STEVEN EISENBERG      
 Name: Steven Eisenberg

Title: Vice President
	

 	
 	

Address for Notices:
	

 	
 	

18101 Von Karman Avenue

Suite 1700

Irvine, CA 92616

Attention: General Counsel

Telecopier No.: (949) 752-1420
	

 	
 	
CITICORP NORTH AMERICA, INC.,

not in its individual capacity but solely as Administrative Agent
	

 	
 	

By:	

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

Title: Director
	

 	
 	

Address for Notices:
	

 	
 	

2 Penns Way, Suite 110

New Castle, DE 19720

Attention: Laura Quashne

Telecopier No: (302) 894-6012

ANNEX 1
  to Security Agreement  

PLEDGED INTERESTS  

	Issuer
 
	 	Certificate No.
	 	Registered Owner
	 	Number of Units

	Silverado Energy Company	 	1	 	Edison Mission Energy	 	100
	

Viejo Energy Company	
 	

1	
 	

Edison Mission Energy	
 	

100
	

Anacapa Energy Company	
 	

1	
 	

Edison Mission Energy	
 	

100
	

Del Mar Energy Company	
 	

1	
 	

Edison Mission Energy	
 	

100
	

Edison Mission Holdings Co.	
 	

2	
 	

Edison Mission Energy	
 	

100
	

Midwest Generation EME, LLC	
 	

1	
 	

Edison Mission Energy	
 	

100
	

Mission del Cielo, Inc.	
 	

1	
 	

Edison Mission Energy	
 	

100

QuickLinks

SECURITY AGREEMENT between EDISON MISSION ENERGY and CITICORP NORTH AMERICA, INC., as Administrative Agent Dated as of April 27, 2004

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