Document:

Exhibit 4.2

AMENDMENT TO PLEDGE AND SECURITY AGREEMENT

AMENDMENT (this “Amendment”), dated as of April 30, 2007, among
Mission Energy Holding Company (the “Pledgor”), Wilmington Trust
Company, as Trustee under the Indenture (as defined below) (the “Trustee”),
and Wilmington Trust Company, as Joint Collateral Agent (the “Joint
Collateral Agent”).

WHEREAS, the Pledgor and the Trustee have heretofore executed and
delivered the Indenture, dated as of July 2, 2001 (as amended and supplemented,
the “Indenture”), pursuant to which the Pledgor has $ 799,957,000.00
million aggregate principal amount of 13.50% Senior Secured Notes due 2008 (the
“Notes”) outstanding;

WHEREAS, the Pledgor has heretofore entered into a Credit Agreement,
dated as of July 2, 2001 (the “Credit Agreement”), among the Pledgor,
Goldman Sachs Credit Partners L.P., as Administrative Agent (the “Administrative
Agent”) the other agents listed on the signature pages thereto and the
Lenders (as defined therein);

WHEREAS, prior to the date hereof, the Term Loan Commitments (as
defined in the Credit Agreement) have been terminated and the Obligations (as
defined in the Credit Agreement) have been satisfied and discharged;

WHEREAS, in connection with the Pledgor’s issuance of the Notes and the
Pledgor’s entry into the Credit Agreement, the parties hereto entered into the
Pledge and Security Agreement, dated as of July 2, 2001 (the “Pledge and
Security Agreement”), among the Pledgor, the Trustee, the Joint Collateral
Agent and the Administrative Agent pursuant to which the Pledgor pledged to the
Joint Collateral Agent for the benefit of the Joint Secured Parties a security
interest (the “Security Interest”) in the Collateral;

WHEREAS, pursuant to Section 6.06 of the Pledge and Security
Agreement, the terms of the Pledge and Security Agreement may be amended only
by an instrument in writing duly executed by each party thereto and approved by
the Required Secured Parties; and

WHEREAS, the parties hereto have agreed to amend the Pledge and
Security Agreement to clarify, for the avoidance of doubt, that the Security
Interest in the Collateral can be released with the consent of Holders of at
least a majority in principal amount of the outstanding Notes.

NOW, THEREFORE, the parties hereto agree as follows:

Section 1. Definitions. Except as otherwise defined herein,
terms defined in the Pledge and Security Agreement are used herein (and in the
introductions and recitals hereto) as defined in the Pledge and Security
Agreement.

 1
 

 

Section 2. Amendment. As of the Effective Date (as defined
below), the Pledge and Security Agreement shall be amended as follows:

(a)  The following definition
shall be added to Section 1 in the proper alphabetical sequence:

“Requisite Consents Event” shall mean
(i) the receipt of consents of Holders (as defined in the Indenture) of at
least a majority in principal amount of the Outstanding Securities (as defined
in the Indenture) to the release of all security interests in the Collateral
and (ii) the effectiveness of the First Supplemental Indenture, dated as of
April 30, 2007, between the Pledgor and the Trustee.”

(b)  The following sentence shall
replace the first sentence of Section 4.11:

“Notwithstanding anything to the contrary set
forth herein, upon the occurrence of either (a) a Termination Event or (b) a
Requisite Consents Event, this Agreement shall terminate, and the Joint
Collateral Agent shall forthwith cause to be assigned, transferred and
delivered, against receipt but without any recourse, warranty or representation
whatsoever, any remaining Collateral and money received in respect thereof, to
the Pledgor upon written notice in substantially the form as set forth on
Exhibit A hereto.”

(c) Exhibit A hereto shall be added as “Exhibit A” to the Pledge and
Security Agreement.

Section 3. Effectiveness. This Amendment shall be effective and
binding immediately upon its execution by the Pledgor and the Joint Collateral
Agent, but, notwithstanding anything in the Pledge and Security Agreement to
the contrary, the amendments to the Pledge and Security Agreement set forth in Section
2 hereof shall not become operative unless and until the Acceptance Time
has occurred under the First Supplemental Indenture, dated as of April 30,
2007, between the Pledgor and the Trustee, and the Pledge and Security
Agreement will remain in effect in its current form until such amendments
become operative. If the offer and consent solicitation set forth in the Offer
to Purchase and Consent Solicitation Statement, dated April 17, 2007, is
terminated, withdrawn or otherwise not completed, this Amendment will have no
force or effect, and the amendments to the Pledge and Security Agreement set
forth in Section 2 of this Amendment will not become operative.

Section 4. Concerning the Joint Collateral Agent. The recitals
contained herein shall be taken as the statements of the Pledgor, and the Joint
Collateral Agent assumes no responsibility for the correctness of the same. The
Joint Collateral Agent makes no representations as to the validity or
sufficiency of this Amendment.

 2
 

 

Section 5. Certain Duties and Responsibilities of the Joint
Collateral Agent. In entering into this Amendment, the Joint Collateral
Agent shall be entitled to the benefit of every provision of the Pledge and
Security Agreement relating to the conduct or affecting the liability or
affording protection to the Joint Collateral Agent, whether or not elsewhere
herein so provided.

Section 6. Miscellaneous. Except as expressly amended hereby,
all terms and provisions of the Pledge and Security Agreement are and shall
remain in full force and effect. This Amendment may be executed in any number
of counterparts and by facsimile signature, all of which taken together shall
constitute one and the same original instrument, and any of the parties hereto
may execute this Amendment by signing any such counterpart. This Amendment
shall be governed by, and construed in accordance with, the law of the State of
New York.

[THE REST OF THIS
PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

 3
 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed and delivered by their respective officers thereunto duly authorized.

MISSION ENERGY HOLDING COMPANY,

as Pledgor

 

 

	
  By:

  	
  /s/ Mark C. Clarke

  	
   

  
	
  Name: Mark C. Clarke

  	
   

  
	
  Title: Controller

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WILMINGTON TRUST COMPANY,

  	
   

  
	
  as Trustee

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mary St. Amand

  	
   

  
	
  Name: Mary St. Amand

  	
   

  
	
  Title: Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WILMINGTON TRUST COMPANY,

  	
   

  
	
  as Joint Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Mary St. Amand

  	
   

  
	
  Name: Mary St. Amand

  	
   

  
	
  Title: Vice President

  	
   

  

 

 4
 

EXHIBIT A TO

AMENDMENT

 

FORM OF PLEDGOR NOTICE

[Date]

Wilmington
Trust Company,

As
Joint Collateral Agent

Rodney
Square North

111
North Market Street

Wilmington,
Delaware 19890

Attn:
[                    ]

 

Re: 
Pledge and Security Agreement, dated as of July 2, 2001 (as amended, the
“Pledge and Security Agreement”), among Mission Energy Holding Company
(the “Pledgor”), Goldman Sachs Credit Partners L.P., as Administrative
Agent, Wilmington Trust Company, as Trustee, and Wilmington Trust Company, as
Joint Collateral Agent.

Dear Sir/Madam:

Pursuant to Section 4.11 of the Pledge and Security Agreement,
you are hereby notified that a [Termination Event][Requisite Consents Event]
has occurred. All defined terms not defined herein shall have the meanings
given thereto in the Pledge and Security Agreement.

I,  [              ]
of the Pledgor, hereby certify that the Pledgor has complied with the
provisions of the Debt Documents permitting the release of all Collateral and
the termination of all Liens on all Collateral.

In connection with the foregoing, you are hereby requested to execute
the attached Release Agreement and deliver such agreement to my attention at
the address below. Further, you are hereby requested to surrender, release, assign,
transfer and deliver (without representation or warranty) to my attention at
the address below the Pledged Shares.

_______________________

By:

Address
:

Mission
Energy Holding Company

2600
Michelson Drive, Suite 1700

Irvine,
California  92612

Attn.

 5Exhibit 4.1

SECOND
SUPPLEMENTAL INDENTURE

SECOND SUPPLEMENTAL INDENTURE, dated as of April 30,
2007 (this “Second Supplemental Indenture”), by and
between Edison Mission Energy, a Delaware corporation (the “Company”), and The Bank of New York, a New York banking
corporation, as Trustee (the “Trustee”) to
the Indenture (as defined below).

W I T N E S S E T
H:

WHEREAS, the Company and the Trustee have heretofore
executed and delivered the Indenture, dated as of June 28, 1999, as
supplemented by the First Supplemental Indenture, dated as of June 28, 1999,
between the Company and the Trustee (as amended and supplemented, the “Indenture”), pursuant to which the Company has $600 million
aggregate principal amount of 7.73% Senior Notes due 2009 (the “Notes”) outstanding;

WHEREAS, Section 7.2 of the Indenture provides that
the Company and the Trustee may, with certain exceptions, amend the Indenture,
the Notes and the rights of the Holders (as defined in the Indenture)of the
Notes with the consent of the Holders  of
a majority in principal amount of the Notes then outstanding (the “Requisite Consents”);

WHEREAS, the Company has distributed an Offer to
Purchase and Consent Solicitation Statement, dated as of April 17, 2007 (the “Solicitation Statement”), to the Holders of the Notes in
connection with certain proposed amendments to the Indenture as described in
the Solicitation Statement (the “Proposed Amendments”);

WHEREAS, the Holders of at least a majority of the
outstanding principal amount of the Notes have duly consented to the Proposed
Amendments;

WHEREAS, the Board of Directors of the Company has
determined that it is in the best interests of the Company to authorize and
approve the Proposed Amendments; and

WHEREAS, the execution and delivery of this Second
Supplemental Indenture have been duly authorized by all necessary corporate
action on the part of the Company and all conditions and requirements necessary
to make this instrument a valid and binding agreement have been duly performed
and complied with.

NOW THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Company and the Trustee mutually covenant and
agree, for the equal and ratable benefit of the Holders of the Notes, as
follows:

ARTICLE I - AMENDMENTS

Section 1.1.   Amendments to the Definitions in the Indenture and the Notes.

(a)           Upon the effective date of this Second
Supplemental Indenture (i) certain definitions in the Indenture shall be deemed
deleted when references to such definitions would be eliminated as a result of
the amendments described herein, (ii) cross-references to provisions in the Indenture
that have been deleted as a result of the Proposed Amendments shall be deemed
deleted, and (iii) certain other changes to the Indenture of a technical or
conforming nature shall be deemed made to the extent necessary to reflect the
deletion of the provisions described herein.

(b)           Any definitions used exclusively in
the provisions of the Notes that are hereby deleted, and any definitions used
exclusively within such definitions, are hereby deleted in their entirety from
the Notes, and all references in the Notes to paragraphs, Sections, Articles or
other terms or provisions of the Indenture that have been otherwise deleted
pursuant to this Second Supplemental Indenture are hereby deleted in their
entirety or revised to conform herewith, as the case may be.

Section 1.2.   Amendments
to Article 3 — Covenants of the Company and the Trustee.  The following Sections of the Indenture, and
any corresponding provisions in the Notes, are hereby deleted in their entirety
and replaced with “Intentionally Omitted.”:

	
  Existing Section Number

  	
   

  	
   

  	
   

  	
  Caption

  	
   

  	
   

  
	
  Section 3.4

  	
   

  	
  Reports by the Company

  
	
  Section 3.5

  	
   

  	
  Restrictions on Liens

  
	
  Section 3.6

  	
   

  	
  Maintenance of Corporate
  Existence

  
	
  Section 3.7

  	
   

  	
  Taxes

  

 

Section 1.3.   Amendments to Article 8 — Merger,
Consolidation, Sale, Lease or Conveyance.   The following
Sections of the Indenture, and any corresponding provisions in the Notes, are
hereby deleted in their entirety and replaced with “Intentionally Omitted.”:

	
  Existing Section
  Number

  	
   

  	
   

  	
   

  	
  Caption

  	
   

  	
   

  
	
  Section 8.1

  	
   

  	
  Covenant Not to Merge,
  Consolidate, Sell, Lease or Transfer Assets Except Under Certain Conditions

  
	
  Section 8.2

  	
   

  	
  Successor Corporation
  Substituted

  
	
  Section 8.3

  	
   

  	
  Opinion of Counsel to Trustee; Officers’
  Certificate

  

 

Section 1.4.   Amendments to Article 4 — Events of
Default and Remedies of the Trustee and Noteholders.   Section 4.1
of the Indenture is hereby amended by deleting paragraphs (c) and (e) thereof.
The remaining paragraphs are lettered accordingly.

 2
 

ARTICLE II- MISCELLANEOUS

Section 2.1.   Execution of Supplemental Indenture.   This
Second Supplemental Indenture is executed and shall be constructed as an
indenture supplement to the Indenture and, as provided in the Indenture, this Second
Supplemental Indenture forms a part thereof.

Section 2.2.   Indenture Remains in Full Force and
Effect.   Except as supplemented by this Second Supplemental
Indenture, all provisions in the Indenture and the Notes shall remain in full
force and effect.

Section 2.3.   Effect and Operation of Supplemental
Indenture.   This Second Supplemental Indenture shall be
effective and binding immediately upon its execution by the Company and the
Trustee (so long as the Requisite Consents have been received) but,
notwithstanding anything in the Indenture or this Second Supplemental Indenture
to the contrary, the amendments to the Indenture set forth in Section 1.1
through Section 1.4 of this Second Supplemental Indenture shall not become
operative unless and until the Notes tendered in connection with the
Solicitation Statement are accepted for purchase by the Company (the time at
which the tendered Notes are so accepted for purchase, the “Acceptance Time”)
and the Indenture will remain in effect in its current form until such
amendments become operative.  If the offer
and consent solicitation set forth in the Solicitation Statement is terminated,
withdrawn or otherwise not completed, this Second Supplemental Indenture will
have no force or effect, and the amendments to the Indenture set forth in
Section 1.1 through Section 1.4 of this Second Supplemental Indenture will not
become operative.

Section 2.4.   References to Supplemental Indenture.   Any
and all notices, requests, certificates and other instruments executed and
delivered after the execution and delivery of this Second Supplemental
Indenture may refer to the Indenture without making specific reference to this Second
Supplemental Indenture, but nevertheless all such references shall include this
Second Supplemental Indenture unless the context requires otherwise.

Section 2.5.   Conflict with Trust Indenture Act.   The
Company will comply with the provisions of the TIA.  If any provision of this Second Supplemental
Indenture limits, qualifies or conflicts with any provision of the TIA that is
required under the TIA to be part of and govern any provision of this Second
Supplemental Indenture, the provision of the TIA shall control.  If any provision of this Second Supplemental
Indenture modifies or excludes any provision of the TIA that may be so modified
or excluded, the provision of the TIA shall be deemed to apply to the Indenture
as so modified or to be excluded by this Second Supplemental Indenture, as the
case may be.

 3
 

Section 2.6.   Severability.   If any
court of competent jurisdiction shall determine that any provision in this Second
Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

Section 2.7.   Terms Defined in the Indenture.   All
capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in the Indenture.

Section 2.8.   Headings.   The
Article and Section headings of this Second Supplemental Indenture have been
inserted for convenience of reference only, are not to be considered a part of
this Second Supplemental Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

Section 2.9.   Benefits of Second Supplemental
Indenture.   Nothing in this Second Supplemental Indenture or
the Notes, express or implied, shall give to any Person, other than the parties
hereto and thereto and their successors hereunder and thereunder and the
Holders of the Notes any benefit of any legal or equitable right, remedy or
claim under the Indenture, this Second Supplemental Indenture or the Notes.

Section 2.10.   Successors.   All
agreements of the Company in this Second Supplemental Indenture shall bind its
successors.  All agreements of the
Trustee in this Second Supplemental Indenture shall bind its successors.

Section 2.11.   Concerning the Trustee.   The
recitals contained herein and in the Notes, except with respect to the Trustee’s
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee assumes no responsibility for the correctness of the
same.  The Trustee makes no
representations as to the validity or sufficiency of this Second Supplemental
Indenture or of the Notes.

Section 2.12.   Certain Duties and Responsibilities
of the Trustee.   In entering into this Second Supplemental
Indenture, the Trustee shall be entitled to the benefit of every provision of
the Indenture and the Notes relating to the conduct or affecting the liability
or affording protection to the Trustee, whether or not elsewhere herein so
provided.

Section 2.13.   Counterparts.   This Second
Supplemental Indenture may be executed in any number of counterparts, each of
which when so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

Section 2.14.   GOVERNING LAW.   THIS SECOND
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.

 4
 

Section 2.15.   Confirmation.   Each
of the Company and the Trustee hereby confirms and reaffirms the Indenture in
every particular except as amended and supplemented by this Second Supplemental
Indenture.  The Company expressly
reaffirms and confirms its obligation to indemnify the Trustee in connection
with the Indenture and this Second Supplemental Indenture in accordance with
Section 5.6 of the Indenture.

IN WITNESS
WHEREOF, the parties hereto have caused this Second Supplemental Indenture to
be duly executed by their respective officers thereunto duly authorized as of
the date first above written.

	
  

  	
  EDISON MISSION ENERGY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven D. Eisenberg

  	
   

  
	
   

  	
   

  	
  Name: Steven D. Eisenberg

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander Pabon

  	
   

  
	
   

  	
   

  	
  Name: Alexander Pabon

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

 5

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