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Exhibit 4.8    
  

        EXECUTION COPY

 
 

ASSUMPTION AND RELEASE AGREEMENT    
  

        ASSUMPTION AND RELEASE AGREEMENT, dated as of December 7, 2001 (this "Agreement"), made by Edison Mission Holdings Co., a California corporation
("Holdings"), Edison Mission Finance Co., a California corporation ("FinanceCo"), The Bank of New York, as successor in interest to United States Trust Company of New York, as Bondholder Trustee under
the Indenture (as defined below), The Bank of New York, as successor in interest to United States Trust Company of New York, as Collateral Agent under the Guarantee and Collateral Agreement (as
defined below) and EME Homer City Generation L.P., a Pennsylvania limited partnership ("EME Homer City"). 

 
 

RECITALS    
  

        WHEREAS, Edison Mission Holdings Co. ("Holdings") entered into the Indenture, dated as of May 27, 1999, between Holdings and the Bondholder Trustee (as
amended from time to time, the "Indenture") pursuant to which Holdings issued $300,000,000 principal amount of 8.137% Senior Secured Bonds due 2019 and $530,000,000 principal amount of 8.734% Senior
Secured Bonds due 2026 which it subsequently exchanged for a like amount of substantially similar bonds that had been registered under the Securities Act of 1933 (collectively, the "Bonds"). 

        WHEREAS,
the direct and indirect subsidiaries of Holdings, including EME Homer City (collectively, the "Subsidiary Guarantors") entered into the Guarantee and Collateral Agreement, dated
as of March 18, 1999, among Holdings, each Subsidiary Guarantor and the Collateral Agent (as amended from time to time, the "Guarantee and Collateral Agreement") pursuant to which each
Subsidiary Guarantor unconditionally guaranteed the obligations of Holdings under the Indenture and the Bonds. 

        WHEREAS,
Holdings and FinanceCo entered into the Subordinated Loan Agreement, dated as of March 18, 1999 (the "Holdings Loan Facility"), pursuant to which Holdings loaned the
proceeds of the issuance of the Bonds to FinanceCo. 

        WHEREAS,
FinanceCo and EME Homer City entered into the Subordinated Loan Agreement, dated as of March 18, 1999 (the "FinanceCo Loan Facility"), pursuant to which FinanceCo loaned
the proceeds of the loan under the Holdings Loan Facility to EME Homer City. 

        WHEREAS,
EME Homer City used the proceeds of the loan under the FinanceCo Loan Facility to purchase (the "Purchase") certain coal-fired power generation and related assets
(the "Facilities"). 

        WHEREAS,
pursuant to its Consent Solicitation Statement, dated November 21, 2001, as may be amended and supplemented prior to the expiration date of the Consent Solicitation
described therein (the "Consent Solicitation Statement"), Holdings is soliciting consents of the holders of the Bonds to certain Proposals (as defined in the Consent Solicitation Statement), including
the release of each Subsidiary Guarantor from its respective obligations under the Guarantee and Collateral Agreement and the amendment of and waiver to certain provisions of the Indenture, in order
to effectuate a sale-leaseback transaction of the Facilities (the "Sale-Leaseback"). 

        WHEREAS,
the requisite number of consents to the Proposals has been received by the Bondholder Trustee in the Consent Solicitation. 

        WHEREAS,
FinanceCo desires to expressly assume all obligations of Holdings under the Indenture and the Bonds, and Holdings desires to be released from all obligations under the Indenture
and the Bonds. 

        WHEREAS,
EME Homer City desires to expressly assume all obligations of FinanceCo under the Indenture and the Bonds, and FinanceCo desires to be released from all obligations under the
Indenture and the Bonds. 

 

        NOW
THEREFORE, for and in consideration of the mutual promises and covenants set forth herein: 

        1.    Assumption of Obligations; Releases.    

	(a)
	FinanceCo
hereby unconditionally and irrevocably assumes all obligations of Holdings under the Indenture and the Bonds.

	(b)
	After
giving effect to the assumption set forth in clause (a) of this Section 1, EME Homer City hereby unconditionally and irrevocably assumes all obligations of
FinanceCo under the Indenture and the Bonds, including, but not limited to, all accrued and unpaid interest on the Bonds to the date hereof.

	(c)
	After
giving effect to the assumption set forth in clause (b), Holdings and FinanceCo are hereby released from their respective obligations under the Indenture and the Bonds. 

        2.    Acceptances.    

	(a)
	Holdings
hereby accepts the assumption of all its obligations under the Indenture and the Bonds pursuant to Section 1(a).

	(b)
	FinanceCo
hereby accepts the assumption of all its obligations under the Indenture and the Bonds pursuant to Section 1(b). 

        3.    Acknowledgments.    

	(a)
	The
Bondholder Trustee acknowledges that, as a consequence of and after giving effect to the assignments and assumptions contained herein, each of Holdings and FinanceCo does not have
any liability under the Indenture and the Bonds and the Bondholder Trustee agrees, and by its acceptance, each holder of a Bond agrees, that it will not look to Holdings or FinanceCo for payments of
any amounts owed in respect of the Indenture or the Bonds including, but not limited to, all accrued and unpaid interest on the Bonds to the date hereof.

	(b)
	The
Collateral Agent acknowledges that the Subsidiary Guarantors have been released from their obligations under the Guarantee and Collateral Agreement pursuant to the terms thereof. 

        4.    Effectiveness.    The Agreement shall only become effective on the date of the consummation of the transactions
contemplated by the Consent Solicitation Statement. 

        5.    Binding Obligation.    Each of Holdings, EME Homer City, FinanceCo, the Bondholder Trustee and the Collateral
Agent hereby represents that its respective obligations under this Agreement constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms. 

        6.    Successors and Assigns.    This Agreement shall inure to the benefit of and be binding upon Holdings, EME Homer
City, FinanceCo, the Bondholder Trustee and the Collateral Agent and their respective heirs, successors and assigns as permitted under the Indenture. 

        7.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which shall together constitute one and the same instrument. 

        8.    Governing Law.    This Agreement shall be governed by, and construed and interpreted in accordance with, the
laws of the State of New York. 

2

 

        IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the date first written above. 

	

 	
 	

EME HOMER CITY GENERATION L.P.
	

 	
 	

By:	

MISSION ENERGY WESTSIDE, INC., as General Partner
	

 	
 	

By:	

/s/ Steven D. Eisenberg

	 	 	 	Name:	Steven D. Eisenberg
	 	 	 	Title:	Vice President
	

 	
 	

EDISON MISSION HOLDINGS CO.
	

 	
 	

By:	

/s/ John P. Finneran

	 	 	 	Name:	John P. Finneran
	 	 	 	Title:	Vice President
	

 	
 	

EDISON MISSION FINANCE CO.
	

 	
 	

By:	

/s/ John P. Finneran

	 	 	 	Name:	John P. Finneran
	 	 	 	Title:	Vice President
	

 	
 	

THE BANK OF NEW YORK,

As Bondholder Trustee
	

 	
 	

By:	

/s/ Christopher Grell

	 	 	 	Name:	Christopher Grell
	 	 	 	Title:	Authorized Signer
	

 	
 	

THE BANK OF NEW YORK,

As Collateral Agent
	

 	
 	

By:	

/s/ Christopher Grell

	 	 	 	Name:	Christopher Grell
	 	 	 	Title:	Authorized Signer

3

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Exhibit 4.8

ASSUMPTION AND RELEASE AGREEMENT

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Exhibit 4.9    
  

        Execution Copy

 
 

THIS MORTGAGE CONSTITUTES A FIXTURE FILING
  UNDER THE PENNSYLVANIA UNIFORM COMMERCIAL CODE    
  

 
 

THIS IS AN OPEN-END MORTGAGE SECURING FUTURE ADVANCES
  UP TO A MAXIMUM PRINCIPAL AMOUNT OF $330,000,000
  PLUS ACCRUED INTEREST AND OTHER INDEBTEDNESS
  AS DESCRIBED IN 42 Pa.C.S. §8143    

OPEN-END MORTGAGE, SECURITY AGREEMENT

AND ASSIGNMENT OF RENTS

dated
as of December 7, 2001 

from

HOMER CITY OL1 LLC,

as the Owner Lessor 

to

THE BANK OF NEW YORK,

as Security Agent and Mortgagee 

When
recorded return to:

The Bank of New York

c/o The United Sates Trust Company of New York

114 West 47th Street, 25th Floor

New York, New York 10036

Attention: Corporate Trust Administration 

THIS IS AN OPEN-END MORTGAGE SECURING FUTURE ADVANCES UP TO A MAXIMUM PRINCIPAL AMOUNT OF $330,000,000 PLUS ACCRUED INTEREST AND OTHER INDEBTEDNESS AS DESCRIBED IN 42 Pa.C.S.
§8143 

 
 

OPEN-END MORTGAGE, SECURITY AGREEMENT
  
    AND ASSIGNMENT OF RENTS    
  

        THIS OPEN-END MORTGAGE, SECURITY AGREEMENT AND ASSIGNMENT OF RENTS (this "Mortgage"), dated as of
December 7, 2001, is made by and between HOMER CITY OL1 LLC, a Delaware limited liability company ("Owner
Lessor"), whose address is Wells Fargo Bank Minnesota, N.A., Corporate Trust Services, MAC; N2691-090, 213 Court Street, Middletown, CT 06457, as mortgagor, and  THE BANK OF NEW YORK as Security Agent for the Lease Indenture Secured Parties as defined below (the "Security
Agent"). 

        WHEREAS, the Owner Lessor is the ground tenant of an undivided percentage interest (the "Ground
Interest") in the land more particularly described on Schedule I hereto (the "Site") pursuant to the Facility Site Lease
described on Schedule II hereto (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "Facility Site
Lease"), a memorandum of
which Facility Site Lease is recorded
in                        Book            ,
page            in the Office of the Recorder of Deeds for Indiana County, Pennsylvania;
 

        WHEREAS, the Owner Lessor has subleased the Ground Interest to EME Homer City Generation L.P. ("Homer
City") pursuant to the Facility Site Sublease described on Schedule III hereto (as the same may be amended, restated, supplemented or otherwise modified from time to
time, the "Facility Site Sublease"), a memorandum of which Facility Site Sublease is recorded
in                        Book            , page
            in the Office of the Recorder of Deeds for Indiana County, Pennsylvania; 

        WHEREAS, the Owner Lessor is the fee owner of an undivided 30% interest in the generating facilities located on the Site (the
"Facility") more particularly described in Schedule IV hereto (the "Undivided Interest"). 

        WHEREAS, the Owner Lessor has leased the Undivided Interest in the Facility to Homer City pursuant to a Facility Lease described on
Schedule V hereto (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "Facility Lease"), a
memorandum of which Facility Lease is recorded in            Book            ,
page            in the Office of the Recorder of Deeds for Indiana County, Pennsylvania;
 

        WHEREAS,
Owner Lessor, the Security Agent and The Bank of New York (the "Lease Indenture Trustee") have entered into an Indenture of Trust
and Security Agreement, dated as of December 7, 2001 (as amended, restated, supplemented or otherwise modified from time to time, the "Lease
Indenture"), to provide among other things for the issuance by the Owner Lessor of certain Lessor Notes as defined therein, and for the grant of this Mortgage; 

        WHEREAS, pursuant to the Lease Indenture, the Security Agent serves as a common representative and to hold the Indenture Estate for the
benefit of the Lease Indenture Secured Parties; 

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, in order to secure
(i) the prompt payment of the principal of and interest on, and all other amounts due with respect to, the Lessor Notes from time to time outstanding, and all other amounts owing by Owner
Lessor hereunder or under the Lease Indenture, and the performance and observance by Owner Lessor of all the agreements, covenants and provisions contained in the Operative Documents, and the prompt
payment of all amounts from time to time due or to become due to any Lease Indenture Secured Party under the Operative Documents (collectively the "Lessor Secured
Obligations"), Owner Lessor hereby grants, bargains, sells, conveys, aliens, enfeoffs, confirms, releases, assigns, transfers, pledges and mortgages unto the Security Agent
acting for and on behalf of the Lease Indenture Secured Parties, a first priority security interest in and mortgage lien on all estate, right, title and interest now held or hereafter acquired by the
Owner Lessor in, to and under the 

following described property, rights, interests and privileges, whether now or hereafter acquired, other than Excepted Payments (such property, rights, interests and privileges as are conveyed
pursuant to this granting clause, but excluding Excepted Payments and the rights to enforce and collect the sums as set forth herein, being hereinafter referred to as the
"Indenture Estate"): 

        (1)  the
Undivided Interest; the Owner Lessor's interest in all goods (as defined in the Uniform Commercial Code as in effect in the State of New York from time to time)
constituting the Facility; all appliances, parts, instruments, appurtenances, accessories, furnishings, equipment or other property of whatever nature that may from time to time be incorporated in the
Facility ("Components"), except to the extent constituting a modification, alteration, addition or improvement to the Facility ("Improvements"); the Owner Lessor's interest in any Improvements; the
Facility Site Lease and the Ground Interest thereunder; the Facility Lease and all payments of any kind by the Facility Lessee thereunder (including Rent); the Facility Site Sublease and the Sublease
Ground Interest thereunder and all payments of any kind by the Facility Lessee thereunder; Owner Lessor's interest in all tangible property located on or at or attached to the Facility Land that an
interest in such tangible property arises under applicable real estate law ("fixtures"); the Facility Deed, the Bill of Sale, the Ownership and
Operation Agreement, the Lessor LLC Agreement, and all and any interest in any property now or hereafter granted to the Owner Lessor pursuant to any provision of the Facility Site Lease, Facility
Lease or the Facility Site Sublease; the Security Depositary Agreement, the Debt Service Reserve Letter of Credit, the Pledge and Collateral Agreement and each other Operative Document to which the
Owner Lessor is a party (the Undivided Interest, the Owner Lessor's interest in any Components, the Owner Lessor's interest in any fixtures, Improvements and the Ground Interest are collectively
referred to as the "Property Interest" and the documents, specifically referred to above in this paragraph (1) are collectively referred to as
the "Indenture Estate Documents"), including, without limitation, (x) all rights of the Owner Lessor or the Facility Lessee (to the extent
assigned by the Facility Lessee to the Owner Lessor) to receive any payments or other amounts or to exercise any election or option or to make any decision or determination or to give or receive any
notice, consent, waiver or approval or to make any demand or to take any other action under or in respect of any such document, to accept surrender or redelivery of the Property Interest or any part
thereof, as well as all the rights, powers and remedies on the part of the Owner Lessor or the Facility Lessee (to the extent assigned by the Facility Lessee to the Owner Lessor), whether acting under
any such document or by statute or at law or in equity or otherwise, arising out of any Lease Default or Lease Event of Default and (y) any right to restitution from the Facility Lessee, any
sublessee or any other Person in respect of any determination of invalidity of any such document; 

        (2)  all
rents, royalties, issues, profits, revenues, proceeds, damages, claims and other income from the property described in this Granting Clause, including, without
limitation, all payments or proceeds payable to the Owner Lessor as the result of the sale of the Property Interest or the lease or other disposition of the Property Interest, and all estate, right,
title and interest of every nature whatsoever of the Owner Lessor in and to such rents, issues, profits, revenues and other income and every part thereof (the "Lease
Revenues"); 

        (3)  all
condemnation proceeds with respect to the Property Interest or any part thereof (to the extent of the Owner Lessor's interest therein), and all proceeds (to the
extent of the Owner Lessor's interest therein) of all insurance maintained pursuant to Section 11 of the Facility Lease or otherwise; 

        (4)  all
other property of every kind and description and interests therein now held or hereafter acquired by the Owner Lessor pursuant to the terms of any Operative
Document, wherever located; 

        (5)  all
damages resulting from breach (including, without limitation, breach of warranty or misrepresentation) or termination of any of the Indenture Estate Documents or
arising from bankruptcy, insolvency or other similar proceedings involving any party to the Indenture Estate Documents; 

        (6)  the
Debt Service Reserve Account and all amounts on deposit therein; and 

        (7)  all
proceeds of the foregoing; 

        BUT EXCLUDING from the Indenture Estate all Excepted Payments, any and all rights to enforce and collect the same, and SUBJECT TO the
rights of the Owner Lessor and the Owner Participant under the Lease Indenture. 

        TO
HAVE AND TO HOLD the Indenture Estate unto the Security Agent, forever, provided that if Owner Lessor shall pay and otherwise observe and perform all of the Lessor Secured
Obligations, then this Mortgage and the estate and interests hereby granted, shall cease and be void. 

        AND
Owner Lessor covenants and agrees with Security Agent as follows: 

        1.    Payment and Performance.    THIS IS AN OPEN-END MORTGAGE SECURING FUTURE ADVANCES UP TO A MAXIMUM
PRINCIPAL AMOUNT OF $330,000,000 PLUS ACCRUED INTEREST AND OTHER INDEBTEDNESS AS DESCRIBED IN 42 Pa.C.S. §8143.    Subject to the terms and conditions of the Lease Indenture,
Owner Lessor shall pay when due and shall observe and perform all of the Lessor Secured Obligations. 

        2.    Default.    Owner Lessor shall not be deemed in default hereunder unless and until a Lease Indenture Event of
Default shall have occurred. 

        3.    Remedies.    Upon the occurrence and continuance of a Lease Indenture Event of Default, Mortgagee may forthwith
exercise, separately, concurrently, successively or otherwise, but only in compliance with the Lease Indenture, any and all rights and remedies available to Mortgagee pursuant to this Mortgage or the
Lease Indenture or available by law, equity or otherwise. 

        4.    Mortgagee's Right to Perform Obligations.    Upon the occurrence and continuance of any Lease Indenture Event of
Default, and in addition to all other rights and remedies available to it, to the extent provided in the Lease Indenture the Security Agent shall have the right, but not the obligation, to perform the
Obligation of Owner Lessor then in default, and to make all advances of funds in connection therewith as the Security Agent deems appropriate, including, without limitation, for the payment of taxes,
assessments, and other charges and costs for the protection of the Indenture Estate or the lien of this Mortgage and expenses incurred by reason of the default of this Mortgage, all of which
expenditures shall be secured by the lien of this Mortgage and payable on demand of Security Agent. 

        5.    Invalidity.    If any term, provision, or condition of the Lease Indenture, Facility Lease, the Facility
Sublease, the Facility Site Lease and/or this Mortgage or the application thereof to any person or circumstance shall be invalid, illegal or unenforceable in any respect, the remainder thereof shall
be construed without such provision and the application of such term or provision to persons or circumstances other than those as to which it is held invalid, illegal or unenforceable, as the case may
be, shall not be affected thereby, and each term and provision thereof shall be valid and enforced to the fullest extent permitted by law. 

        9.    Governing Law.    This Mortgage shall be governed by the laws of the Commonwealth of Pennsylvania. 

        10.    Lease Indenture.    This Mortgage is executed pursuant to the Lease Indenture, and is subject to the rights and
obligations of the Owner Lessor, the Owner Participant and the Security Agent as set forth therein (except to the extent inapplicable by their nature to a mortgage). Capitalized terms used and not
defined herein shall have the meaning given such terms in the Lease Indenture. 

        11.    Future Advances, 42 Pa. C.S. §8143.    This Mortgage shall secure any additional loans as well as
any and all present or future advances and readvances under or in connection with the Lessor Secured Obligations, made pursuant to or in connection with the Lease Indenture to or for the benefit of
Owner Lessor or the Indenture Estate, all of which shall be entitled to the benefits of an Open-End Mortgage under 42 Pa.C.S.A. §8143 and shall have the same lien priority as
if the future loans, advances or readvances were made as of the date hereof including, without limitation: (i) principal, 

interest, late charges, fees and other amounts due under the Lease Indenture, the Lessor Notes, or this Mortgage; (ii) all advances made or costs incurred by Mortgagee for the payment of real
estate taxes, and other charges and costs incurred by Security Agent for the enforcement and protection of the Indenture Estate or the lien of this Mortgage; and (ii) all legal fees, costs and
other expenses incurred by the Security Agent by reason of any Lease Indenture Event of Default. 

        12.    42 Pa. C.S. §8144.    In addition to any other indebtedness secured hereby, this Mortgage secures
unpaid balances of advances made with respect to the Indenture Estate, for the payment of taxes, assessments, and other charges or costs incurred for the protection of the Indenture Estate or the lien
of this Mortgage, and expenses incurred by the Security Agent by reason of default by Owner Lessor under this Mortgage. This Mortgage shall be a lien on the Indenture Estate from the time the Mortgage
is left for record, or the time of delivery to the Security Agent of a Purchase Money Mortgage which is recorded within ten days after its date, for the full amount of the unpaid balances of such
advances that are made under this Mortgage, plus interest thereon, regardless of the time when such advances are or may be made. 

        IN WITNESS WHEREOF, Owner Lessor has executed this Mortgage as of the date first above written. 

	 	 	HOMER CITY OL1 LLC
	

 	
 	

By:	
 	

WELLS FARGO BANK

NORTHWEST, NATIONAL

ASSOCIATION, not in its individual

capacity, but solely as Owner Manager

under the Lessor LLC Agreement
	

 	
 	

By:	
 	

/s/  JOSEPH P. O'DONNELL      

	 	 	 	 	Name: Joseph P. O'Donnell

Title: Corporate Trust Officer

I
certify that the precise address

of the within named mortgagee is: 

The
Bank of New York

c/o The United Sates Trust Company of New York

114 West 47th Street, 25th Floor

New York, New York 10036

Attention: Corporate Trust Administration 

	/s/  CHRISTOPHER J. GRELL      
	 	 
	For the mortgagee	 	 

	STATE OF NEW YORK	 	)	 	 	 	 
	 	 	)	 	ss:	 	 
	COUNTY OF NEW YORK	 	)	 	 	 	 

        To
wit, I, hereby certify, that on this 7 day of December, in the year 2001, before the subscriber, a Notary Public, personally appeared Joseph O'Donnell, the Corporate Trust Officer of
Wells Fargo Bank Northwest, National Association and that he/she, as Corporate Trust Officer of such corporation, acknowledged the foregoing deed to be the act of said corporation as Owner Manager of
Homer City OL1 LLC under the Limited Liability Company Agreement dated as of December 7, 2001. 

        In
testimony whereof, I have affixed my official seal, this 7 day of December, A.D. 2001. 

	 	 	/s/  ANTHONY CIFRA      

	 	 	Notary Public

        My
commission expires: September 10, 2005 

[ADD OWNER LESSOR ACKNOWLEDGEMENT] 

[ADD
SCHEDULE I—LEGAL DESCRIPTION OF SITE] 

[ADD
SCHEDULE II—DESCRIPTION OF FACILITY SITE LEASE 

[ADD
SCHEDULE III—DESCRIPTION OF FACILITY SITE SUBLEASE] 

[ADD
SCHEDULE IV—DESCRIPTION OF THE FACILITY] 

[ADD
SCHEDULE V—DESCRIPTION OF FACILITY LEASE] 

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Exhibit 4.9

THIS MORTGAGE CONSTITUTES A FIXTURE FILING UNDER THE PENNSYLVANIA UNIFORM COMMERCIAL CODE

THIS IS AN OPEN-END MORTGAGE SECURING FUTURE ADVANCES UP TO A MAXIMUM PRINCIPAL AMOUNT OF $330,000,000 PLUS ACCRUED INTEREST AND OTHER INDEBTEDNESS AS DESCRIBED IN 42 Pa.C.S. §8143

OPEN-END MORTGAGE, SECURITY AGREEMENT AND ASSIGNMENT OF RENTS

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