Document:

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                                                                  Exhibit 10.106

                                                                  EXECUTION COPY

THIS DOCUMENT HAS BEEN EXECUTED IN SEVERAL COUNTERPARTS, ONE OF WHICH HAS BEEN
MARKED "THE LESSOR'S COPY" AND ONE OR MORE OF WHICH HAVE BEEN MARKED "THE
LESSEE'S COPY" OR "COPY." TO THE EXTENT THAT THIS DOCUMENT CONSTITUTES CHATTEL
PAPER UNDER THE UNIFORM COMMERCIAL CODE, NO SECURITY INTEREST IN THIS DOCUMENT
MAY BE CREATED THROUGH THE TRANSFER AND POSSESSION OF ANY COUNTERPART OTHER THAN
THE COUNTERPART MARKED "THE LESSOR'S COPY."

                                 LEASE AGREEMENT

                            dated as of June 23, 2000

                                     between

                             MIDWEST GENERATION, LLC

                                 as the Lessee,

                                       and

                                  EME/CDL TRUST

                                  as the Lessor

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                                    CONTENTS

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SECTION 1.     DEFINITIONS...............................................................1

SECTION 2.     LEASE OF EQUIPMENT........................................................1

SECTION 3.     LEASE TERM................................................................1

SECTION 4.     RENTS.....................................................................2
               4.1    Rent Payments......................................................2
               4.2    Place and Manner of Payment........................................2
               4.3    Net Lease..........................................................3

SECTION 5.     REPRESENTATIONS AND WARRANTIES............................................4
               5.1    Disclaimer of Warranties...........................................4
               5.2    Assignment of Warranties...........................................4

SECTION 6.     LIENS.....................................................................4

SECTION 7.     USE AND MAINTENANCE OF EQUIPMENT..........................................5
               7.1    Possession and Use of Equipment; Compliance with Laws..............5
               7.2    Maintenance........................................................5
               7.3    Removal of Components..............................................5

SECTION 8.     MODIFICATIONS AND IMPROVEMENTS............................................6

SECTION 9.     RIGHT TO SUBLEASE.........................................................6

SECTION 10.    INSPECTION AND RIGHT TO ENTER.............................................7
               10.1   ...................................................................7
               10.2   ...................................................................7

SECTION 11.    EVENTS OF LOSS; INSURANCE.................................................7
               11.1   Risk of Loss.......................................................7
               11.2   Insurance..........................................................7

SECTION 12.    LEASE TERMINATION.........................................................8
               12.1   Early Termination..................................................8

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               12.2   Renewal Lease Terms................................................8
               12.3   Lessee Purchase Option.............................................8
               12.4   Sale Option........................................................9
               12.5   Sale Option Procedures.............................................9
               12.6  Reconveyance; Release of Lien of the Lessor........................11

SECTION 13.    REDELIVERY OF EQUIPMENT..................................................11

SECTION 14.    EVENTS OF DEFAULT........................................................12
               14.1   Payment Default...................................................12
               14.2   Misrepresentation.................................................12
               14.3   Covenant Defaults.................................................12
               14.4   Bankruptcy, etc...................................................12
               14.5   ERISA.............................................................13
               14.6   Cross-Defaults....................................................13
               14.7   Judgments.........................................................13

SECTION 15.    REMEDIES.................................................................14
               15.1   Payment of Termination Value; Assumption Option...................14
               15.2   Lease Remedies....................................................14
               15.3   Lessor's Right to Perform Obligations.............................15
               15.4   Limitation on Liability for Rent..................................15
               15.5   Assumption Option.................................................15

SECTION 16.    ASSIGNMENT OF LEASE......................................................15

SECTION 17.    OWNERSHIP AND GRANT OF SECURITY INTEREST.................................16

SECTION 18.    MISCELLANEOUS............................................................16
               18.1   Applicable Law....................................................16
               18.2   Quiet Enjoyment...................................................16
               18.3   Notices...........................................................16
               18.4   Counterparts......................................................16
               18.5   Severability......................................................17
               18.6   Successors and Assigns............................................17
               18.7   Third-Party Beneficiaries.........................................17
               18.8   Jury Trial........................................................17
               18.9   Headings; Table of Contents.......................................17

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               18.10  Schedules and Exhibits............................................17
               18.11  No Joint Venture..................................................17
               18.12  References to Sections, Exhibits and Schedules....................18
               18.13  Limitations of Liability of Trustee...............................18

SCHEDULE 1.............................................................................S-1

SCHEDULE 2.............................................................................S-2

SCHEDULE 3 ............................................................................S-3

SCHEDULE 4.............................................................................S-4
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        LEASE AGREEMENT (this "LEASE") dated as of June 23, 2000 between MIDWEST
GENERATION, LLC, a Delaware limited liability company, as the lessee hereunder
(the "LESSEE") and EME/CDL TRUST, a statutory business trust created under the
laws of the State of Delaware, as the lessor hereunder (the "LESSOR").

                                    RECITALS

        A. On the Closing Date, the Lessee wishes the Lessor to acquire the
Leased Equipment and to lease it to the Lessee on the terms and conditions set
forth in the Participation Agreement (as amended, supplemented or otherwise
modified from time to time, the "PARTICIPATION AGREEMENT"), dated as of the date
hereof, among the Lessee, the Lessor, the Guarantor, the Noteholders, the
Investors, the Trustee, the Agent and the Collateral Agent and the other Basic
Documents.

        B. Pursuant to the terms and conditions set forth herein and in the
Participation Agreement, on the Closing Date, the Lessee will transfer to the
Lessor, and the Lessor will purchase and receive from the Lessee, all of the
Lessee's right, title and interest in and to the Leased Equipment and the Lessor
shall simultaneously lease the Leased Equipment to the Lessee and the Lessee
will lease the Leased Equipment from the Lessor, pursuant to this Lease.

        C. To secure the Lessee's obligations under this Lease and the other
Basic Documents, the Lessee will grant to the Lessor a security interest in the
Lessee Collateral.

        NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1. DEFINITIONS.

        Capitalized terms used but not defined herein shall have the meanings
set forth in Appendix 1 to the Participation Agreement.

SECTION 2. LEASE OF EQUIPMENT.

        Subject to satisfaction of the conditions set forth in SECTION 5 of the
Participation Agreement, on the Closing Date the Lessor shall lease to the
Lessee, and the Lessee shall accept under an Acceptance Certificate and lease
from the Lessor the Leased

                                LEASE AGREEMENT
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Equipment to be financed under the Participation Agreement and the other Basic
Documents.

SECTION 3. LEASE TERM.

        Unless earlier terminated, the term of this Lease (the "LEASE TERM")
shall commence on (and include) the Closing Date and end on (but exclude) the
Lease Expiration Date.

SECTION 4. RENTS.

        4.1 RENT PAYMENTS.

               (a) BASIC RENT. During the Lease Term, the Lessee shall pay the
Basic Rent to the Lessor on each Rent Payment Date, on the date required under
SECTION 12.6(a) in connection with the Lessee's exercise of the Sale Option and
on any date on which this Lease shall terminate with respect to the Leased
Equipment; PROVIDED, HOWEVER, that (i) the amount of Basic Rent payable on the
first Rent Payment Date following the Closing Date will be reduced by one
thousand Dollars ($1,000), which amount will be capitalized into the
Certificates, raising the aggregate Investor Amount by such amount; (ii) the
amount of Basic Rent payable on the second Rent Payment Date following the
Closing Date will be increased by one thousand Dollars ($1,000), which amount
will be applied ratably to the Investors to reduce the aggregate Investor
Amount; (iii) the amount of Basic Rent payable on the third Rent Payment Date
following the Closing Date will be reduced by one thousand Dollars ($1,000),
which amount will be capitalized into the Certificates, raising the aggregate
Investor Amount by such amount; and (iv) the amount of Basic Rent payable on the
fourth Rent Payment Date following the Closing Date will be increased by one
thousand Dollars ($1,000), which amount will be applied ratably to the Investors
to reduce the aggregate Investor Amount.

               (b) SUPPLEMENTAL RENT. The Lessee shall pay to the Lessor any and
all Supplemental Rent on the date on which the same shall become due and payable
and if the Lessee fails to pay any Supplemental Rent on the date when due, and
such failure shall continue beyond the cure period provided in SECTION 14.1(c),
the Lessor shall have the same rights, powers and remedies provided for herein
or by law or equity or otherwise in the case of nonpayment of Basic Rent. The
Lessee shall pay to the Lessor, as Supplemental Rent, among other things, on
demand, to the extent permitted by

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Applicable Law, interest at the applicable Overdue Rate on any installment of
Basic Rent not paid when due for the period for which the same shall be
overdue and on any payment of Supplemental Rent not paid when due or demanded
by the Lessor for the period from the due date or the date of any such
demand, as the case may be, until the same shall be paid. The expiration or
other termination of the Lease Term and/or the Lessee's obligation to pay
Basic Rent hereunder shall not limit or modify the obligations of the Lessee
with respect to Supplemental Rent. Unless expressly provided otherwise in
this Lease, in the event of any failure on the part of the Lessee to pay and
discharge any Supplemental Rent as and when the same shall be due and
payable, the Lessee shall also promptly pay and discharge any fine, penalty,
interest or cost which may be assessed or added for nonpayment or late
payment of such Supplemental Rent, all of which shall also constitute
Supplemental Rent.

        4.2 PLACE AND MANNER OF PAYMENT.

               (a) Each payment of Rent payable by the Lessee to the Lessor
under this Lease or any other Basic Document shall be made by the Lessee to the
Collateral Agent as assignee of the Lessor under the Assignment Agreement (or,
following the termination of the Assignment Agreement in accordance with SECTION
8.11 thereof, to the Lessor) in immediately available funds consisting of
Dollars on the date when such payment shall be due by wire transfer to the
Lessor Account or such other account or accounts at such bank or banks or to
such other Person or in such other manner as the Lessor shall from time to time
direct.

               (b) Neither the Lessee's inability or failure to take possession
of all, or any portion, of the Leased Equipment when delivered by the Lessor,
nor the Lessor's inability or failure to deliver all or any portion of the
Leased Equipment to the Lessee, whether or not attributable to any act or
omission of the Lessee or any act or omission of the Lessor, or for any other
reason whatsoever, shall delay or otherwise affect the Lessee's obligation to
pay Rent in accordance with the terms of this Lease.

               (c) Rent shall be paid absolutely net to each Person entitled
thereto, so that this Lease shall yield to such Person the full amount thereof,
without setoff, deduction or reduction.

        4.3 NET LEASE. THIS LEASE IS A NET LEASE AND THE LESSEE'S
OBLIGATION TO PAY ALL BASIC RENT AND SUPPLEMENTAL RENT SHALL BE ABSOLUTE AND
UNCONDITIONAL UNDER ANY AND ALL

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CIRCUMSTANCES AND, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE
LESSEE SHALL NOT BE ENTITLED TO ANY ABATEMENT OR REDUCTION OF RENT OR ANY
SETOFF AGAINST RENT, INDEMNITY OR OTHER AMOUNT, WHETHER ARISING BY REASON OF
ANY PAST, PRESENT OR FUTURE CLAIMS OF ANY NATURE BY THE LESSEE AGAINST THE
LESSOR OR ANY NOTEHOLDER, OR OTHERWISE. Except as otherwise expressly
provided herein, this Lease shall not terminate, nor shall the obligations of
the Lessee be otherwise affected: (a) by reason of any defect in, damage to,
or loss of possession or use, obsolescence or destruction, of any or all of
the Leased Equipment, however caused; (b) by the taking or requisitioning of
any or all of the Leased Equipment by condemnation or otherwise; (c) by the
invalidity or unenforceability or lack of due authorization by the Lessor,
any Noteholder, any Investor or the Lessee or other infirmity of this Lease
or any other Basic Document; (d) by the attachment of any Lien of any third
party to any or all of the Leased Equipment; (e) by any prohibition or
restriction of or interference with the Lessee's use of any or all of the
Leased Equipment by any Person; (f) by the insolvency of or the commencement
by or against the Lessor or any Participant of any bankruptcy, reorganization
or similar proceeding; or (g) by any other cause, whether similar or
dissimilar to the foregoing, any present or future law to the contrary
notwithstanding. It is the intention of the parties that all Rent payable by
the Lessee hereunder shall be payable in all events in the manner and at the
times herein provided unless the Lessee's obligations in respect thereof
shall have been terminated or modified pursuant to the express provisions of
this Lease. To the extent permitted by Applicable Law, the Lessee hereby
waives any and all rights which it may now have or which may at any time be
conferred upon it, by statute or otherwise, to terminate, cancel, quit or
surrender this Lease, in whole or in part, except strictly in accordance with
the express terms hereof. Each Rent payment, indemnity or other payment made
by the Lessee hereunder shall be final, and the Lessee shall not seek to
recover all or any part of such payment from the Lessor except as expressly
provided in this Lease. Without affecting the Lessee's obligation to pay Rent
and any other amounts hereunder, the Lessee may seek damages for a breach by
the Lessor or any Investor of its respective obligations under this Lease or
any of the other Basic Documents. The Lessor shall be under no obligation to
marshal any assets in favor of the Lessee or against or in payment of any or
all Rent.

SECTION 5. REPRESENTATIONS AND WARRANTIES.

        5.1 DISCLAIMER OF WARRANTIES. THE LESSEE ACKNOWLEDGES AND AGREES
THAT (a) THE LEASED EQUIPMENT IS OF A SIZE, DESIGN,

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CAPACITY AND MANUFACTURE SELECTED BY THE LESSEE, (b) THE LESSEE IS SATISFIED
THAT THE SAME IS SUITABLE FOR ITS PURPOSES, (c) THE LESSOR IS NOT A
MANUFACTURER THEREOF OR A DEALER IN OR VENDOR OF PROPERTY OF SUCH KIND, AND
(d) NEITHER THE LESSOR, ANY INVESTOR, ANY NOTEHOLDER, THE AGENT NOR THE
TRUSTEE HAS MADE, OR DOES OR WILL MAKE, (i) ANY REPRESENTATION OR WARRANTY OR
COVENANT WITH RESPECT TO THE TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, CONDITION, QUALITY, DESCRIPTION, DURABILITY OR SUITABILITY OF ANY OR
ALL OF THE LEASED EQUIPMENT IN ANY RESPECT OR IN CONNECTION WITH OR FOR THE
PURPOSES AND USES OF THE LESSEE, OR (ii) ANY OTHER REPRESENTATION OR WARRANTY
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OR ALL OF THE LEASED
EQUIPMENT, IT BEING AGREED THAT, EXCEPT AS SPECIFIED HEREIN OR IN THE OTHER
BASIC DOCUMENTS, ALL RISKS ASSOCIATED WITH THE LEASED EQUIPMENT, AS BETWEEN
THE LESSOR, THE INVESTORS, THE NOTEHOLDERS, THE AGENT NOR THE TRUSTEE ON THE
ONE HAND, AND THE LESSEE, ON THE OTHER HAND, SHALL BE BORNE BY THE LESSEE.

        5.2 ASSIGNMENT OF WARRANTIES . The Lessor assigns to the Lessee,
to the extent assignable, all of its right, title and interest, if any, in any
warranties, covenants and representations of any manufacturer or vendor of the
Leased Equipment or any component thereof.

SECTION 6. LIENS.

        The Lessee will not directly or indirectly create, incur, assume or
suffer to exist any Lien (other than Permitted Liens) on or with respect to the
Leased Equipment or any part thereof, or its leasehold interest hereunder or any
of the Lessor's, any Investor's or any Noteholder's interests hereunder or in
any other Lessee Collateral.

SECTION 7. USE AND MAINTENANCE OF EQUIPMENT.

        7.1 POSSESSION AND USE OF EQUIPMENT; COMPLIANCE WITH LAWS. The
Lessee shall use and operate the Leased Equipment in compliance with any and all
Applicable Law, except to the extent the failure so to comply could not
reasonably be expected to

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have a Material Adverse Effect with respect to the Lessee or the Lessor, and
PROVIDED THAT the Lessee may at its own expense, in good faith, contest the
validity or application of any such Applicable Law pursuant to a Permitted
Contest and continue to use and operate the Leased Equipment during such
contest. The Lessee shall procure and maintain in effect all Permits, except
to the extent the failure to procure and maintain any such Permit could not
reasonably be expected to have a Material Adverse Effect with respect to the
Lessee or the Lessor. The Leased Equipment will at all times be and remain in
the possession and control of the Lessee, subject to SECTION 7.3 and SECTION
9.

        7.2 MAINTENANCE.

               (a) At all times during the term of this Lease, the Lessee shall,
at its own cost and expense, keep, repair, maintain and preserve the Leased
Equipment (i) in good condition (ordinary wear and tear excepted), repair and
working order, without discrimination as compared to other assets of a similar
type owned or operated by the Lessee or any of its Affiliates, (ii) in any event
in accordance with Prudent Industry Practice, (iii) in accordance with all
insurance policies required to be maintained by the Lessee under this Lease and
(iv) in compliance in all material respects with Applicable Law, including,
without limitation, all applicable Environmental Laws.

               (b) At all times during the Lease Term, the Lessee shall, as is
necessary in the Lessee's own reasonable judgment for the Leased Equipment to be
operated in accordance with this Lease and at its own cost and expense, cause
all repairs, renewals, replacements and improvements to the Leased Equipment to
be made.

        7.3 REMOVAL OF COMPONENTS. In the ordinary course of maintaining,
servicing, repairing or testing the Leased Equipment, or any component thereof,
the Lessee shall have the right, at its own cost and expense, to remove or cause
to be removed any component of such Leased Equipment; PROVIDED, HOWEVER, that
(i) the Lessee shall cause any such component to be replaced by a replacement
component, (ii) the Lessee shall cause such replacement component to be free and
clear of all Liens (other than Permitted Liens) and (iii) the use of such
replacement component as part of the Leased Equipment shall not, other than in
an immaterial respect, diminish the residual value, utility or remaining useful
life of such Leased Equipment; PROVIDED, FURTHER, that the Lessee shall not be
required to replace a particular component in accordance with this SECTION 7.3
if such component is obsolete and its removal without

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replacement would not reasonably be expected to diminish, other than in an
immaterial respect, the residual value, utility or remaining useful life of
the Leased Equipment.

SECTION 8. MODIFICATIONS AND IMPROVEMENTS

        If the Leased Equipment or any individual component thereof is required
to be altered, added to, replaced or modified in order to comply with (a) any
Applicable Law, (b) any insurance policies required to be maintained by the
Lessee under this Lease or (c) to meet the requirements of any Return Acceptance
Conditions (collectively, "REQUIRED IMPROVEMENTS"), the Lessee agrees to make,
or cause to be made, such Required Improvement at its own expense. The Lessee
shall have the right, but no obligation, without the consent of any Lease
Financing Party, to make any modification, alteration, addition or improvement
to the Leased Equipment (together with Required Improvements, the
"IMPROVEMENTS"), if such action could not reasonably be expected to diminish,
other than in an immaterial respect, the residual value, utility or remaining
useful life of the Leased Equipment. If any Improvement that is not a Required
Improvement is readily removable without impairing, other than in an immaterial
respect, the value, use or remaining useful life which the Leased Equipment
would have had at such time if such Improvement had not occurred (such
Improvement, a "SEVERABLE IMPROVEMENT"), any such Severable Improvement shall
be, and shall remain, the property of the Lessee. To the extent such Improvement
is not a Severable Improvement, or is a Required Improvement, the same shall
immediately and automatically be and become the property of the Lessor, and
subject to the terms of this Lease. Any Required Improvements and non-Severable
Improvements shall be considered in each case accessions to the Leased
Equipment, and record title thereto or security interest therein shall be
immediately and automatically vested in the Lessor.

SECTION 9. RIGHT TO SUBLEASE.

        The Lessee shall not, without the prior written consent of the Lessor,
assign, transfer or sublease all or any portion of its rights under this Lease,
except as set forth in this SECTION 9. The Lessee shall have the right to
sublease all or a portion of the Leased Equipment, without the consent of the
Lessor or any other Lease Financing Party, upon at least ten (10) Business Days'
advance written notice to the Lessor, to any Affiliate of the Lessee; PROVIDED,
HOWEVER that (i) all obligations of such Affiliate under such sublease shall be
unconditionally guaranteed by the Guarantor pursuant to a guarantee agreement,
executed and delivered to the Lessor prior to the effective date of the such
sublease, containing substantially the same provisions as the Guaranty, (ii) any

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sublease shall expressly provide for the immediate surrender of the Leased
Equipment to the Lessor after notice from the Lessor to such sublessee of the
occurrence of a Lease Event of Default and a request for such surrender and
(iii) any such sublease shall expressly provide for automatic termination at or
prior to the earlier of (a) the Lease Expiration Date and (b) the occurrence of
a Lease Event of Default.

SECTION 10. INSPECTION AND RIGHT TO ENTER

        10.1 INSPECTION. Upon at least 5 days' written notice by the Lessor,
the Required Noteholders or the Required Investors and at the expense of such
Person giving notice, the Lessee shall make the Leased Equipment available to
the Lessor or any agent or agents appointed by the Required Noteholders or the
Required Investors for inspection at reasonable times and under conditions
reasonably acceptable to the Lessee (including, but not limited to, the
execution and delivery, by such Persons to the Lessee, of appropriate
confidentiality agreements and adherence to the Lessee's safety procedures at
the site upon which such Leased Equipment is located).

        10.2 RIGHT TO ENTER. Upon a Lease Event of Default and the exercise of
remedies pursuant to SECTION 15.2, the Lessor shall have the right to enter, at
reasonable times and upon reasonable notice, upon the site on which the Leased
Equipment subject to reposession is located for the purpose of repossessing such
Leased Equipment. The Lessor shall be liable for any and all damage to the
Lessee's property caused by the repossession of the Leased Equipment pursuant to
the preceding sentence.

SECTION 11. EVENTS OF LOSS; INSURANCE.

        11.1 RISK OF LOSS.

               (a) If an Event of Loss occurs with respect to the Leased
Equipment, the Lessee shall, on a Rent Payment Date occurring not later than
ninety (90) days following the Lessee's knowledge of such Event of Loss, but in
no event later than the Final Maturity Date, either (i) pay to the Lessor an
amount equal to the Termination Value determined as of such Termination Date or
(ii) assume the Tranche A Notes and repay the Tranche B Notes and the
Certificates pursuant to SECTION 15.5.

               (b) If the Leased Equipment suffers any loss, damage, seizure,
condemnation, confiscation or taking that is not an Event of Loss, the Lessee
shall repair

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the Leased Equipment, or shall replace a component of such Leased Equipment,
as applicable, in compliance with the standards set forth in SECTION 7.3.

               (c) All proceeds (including insurance proceeds) payable by a
third-party to the Lessee or the Lessor in respect of an Event of Loss, or any
other loss, damage, seizure, condemnation, confiscation or taking set forth in
SECTION 11.1(b), shall be paid to the Lessee, unless a Lease Event of Default
shall have occurred and be continuing, in which case such amounts shall be paid
to the Collateral Agent for application in accordance with SECTION 3.10(d) of
the Participation Agreement.

        11.2 INSURANCE. So long as the Holdings Credit Agreement remains in full
force and effect, the Lessee shall maintain insurance with respect to the Leased
Equipment throughout the Lease Term as set forth in SECTION 8.1.5 of the
Holdings Credit Agreement; thereafter, the Lessee shall be required to maintain
insurance with respect to the Leased Equipment throughout the Lease Term as set
forth on SCHEDULE 2 hereto.

SECTION 12. LEASE TERMINATION.

        12.1 EARLY TERMINATION. At any time from and after the Closing Date and
prior to the Final Maturity Date, the Lessee may, at its sole discretion and
option, upon at least 30 days' advance written notice to the Lessor, terminate
this Lease on any Rent Payment Date by either (i) paying to the Lessor the
Termination Value determined as of such Rent Payment Date or (ii) assuming all
of the Lessor's obligations under the Tranche A Notes and repaying the Tranche B
Notes and the Certificates pursuant to SECTION 15.5. Upon payment of the
Termination Value by the Lessee or assumption of the Lessor's obligations under
the Tranche A Notes and repayment of the Tranche B Notes and the Certificates in
accordance with the provisions of the preceding sentence, the Lessor shall
transfer to the Lessee all the Lessor's right, title and interest in and to the
Leased Equipment (without representations or warranties, except that the Leased
Equipment is free and clear of Lessor Liens) and shall execute and deliver to
the Lessee such documents as may be reasonably required to release the Leased
Equipment from the terms and scope of this Lease in such form as may be
reasonably requested by the Lessee.

        12.2 RENEWAL LEASE TERMS. The Lessee may renew this Lease subject to,
and in accordance with, the terms and conditions of SECTION 7.1 of the
Participation Agreement. In the event that the Lessee shall have elected not to
renew this Lease in

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accordance with such terms and conditions, the Lessee shall, not less than
270 days prior to the Lease Expiration Date (the "PURCHASE DECISION DATE"),
notify the Lessor of the Lessee's intention either (i) to exercise the Lessee
Purchase Option (as defined below) in respect of one or more Categories of
Leased Equipment and/or (ii) to exercise the Sale Option (as defined below)
in respect of one or more Categories of Leased Equipment; PROVIDED, HOWEVER,
that if the Lessee does not elect the Lessee Purchase Option in respect of
one or more Categories of Leased Equipment or the Sale Option in respect of
one or more Categories of Leased Equipment on, or prior to, the Purchase
Decision Date, the Lessee shall be deemed to have elected to exercise the
Lessee Purchase Option in respect of such Category or Categories of Leased
Equipment.

        12.3 LESSEE PURCHASE OPTION. If the Lessee has elected (or is deemed to
have elected) to exercise the Lessee Purchase Option in respect of one or more
Categories of Leased Equipment, and provided that no Lease Event of Default
shall have occurred and be continuing, the Lessee shall have the right to
purchase on the Final Maturity Date such Categories of Leased Equipment (the
"LESSEE PURCHASE OPTION"). If the Lessee exercises the Lessee Purchase Option in
respect of any Category of Leased Equipment, the Lessee shall pay on the Final
Maturity Date, in immediately available funds, the aggregate purchase price
applicable to each such Category of Leased Equipment as set forth on SCHEDULE 4
hereto (the "LESSEE PURCHASE FIXED PRICE") to the Lessor. Upon payment of the
Lessee Purchase Fixed Price by the Lessee, the Lessor shall transfer to the
Lessee all the Lessor's right, title and interest in and to the Leased Equipment
purchased by Lessee pursuant to this SECTION 12.3 (without representations or
warranties, except that such Category of Leased Equipment is free and clear of
Lessor Liens) and shall execute and deliver to the Lessee such documents as may
be reasonably required to release such Category of Leased Equipment from the
terms and scope of this Lease in such form as may be reasonably requested by the
Lessee. To the extent the Lessee elects to exercise the Lessee Purchase Option
with respect to some, but not all of the Categories of Leased Equipment, the
Leased Equipment not purchased by the Lessee shall be subject to the Sale Option
as set forth in SECTION 12.4.

        12.4 SALE OPTION. In the event that the Lessee elects neither to enter
into a Renewal Lease, nor to exercise the Lessee Purchase Option with respect to
all of the Leased Equipment, the Lessee may provide notice to the Lessor on, or
prior to, the Purchase Decision Date, that it will cause the Leased Equipment,
or such Categories of Leased Equipment not subject to the Lessee Purchase
Option, as the case may be, to be sold on the Final Maturity Date in an auction
(the "AUCTION") to a purchaser or purchasers not affiliated in any way with the
Lessee (the "SALE OPTION").

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        12.5 SALE OPTION PROCEDURES.

               (a) If the Lessee elects to exercise the Sale Option in respect
of one or more Categories of Leased Equipment in accordance with SECTION 12.4,
the Lessee shall act as the Lessor's non-exclusive agent and shall use
commercially reasonable efforts to obtain the highest available cash purchase
price for any such Category of Leased Equipment and, in the event that the
Lessee receives any bid for any such Category of Leased Equipment, the Lessee
shall, within five (5) Business Days after receipt thereof and at least sixty
(60) days before the Final Maturity Date, notify the Lessor in writing of the
amount and terms of such bid or bids, and the name and address of the bidding
party or parties (who shall not be the Lessee or any Affiliate of the Lessee or
any Person with whom the Lessee has an understanding or arrangement regarding
the future use of such Category of Leased Equipment by the Lessee or any
Affiliate of the Lessee). The Lessor may reject any and all bids and may assume
responsibility for obtaining bids by giving the Lessee written notice to that
effect; PROVIDED, HOWEVER, that notwithstanding the foregoing, the Lessor may
not reject a bid if (i) such bid, together with the Residual Deficiency Payment
for such Category or Categories of Leased Equipment, is greater than or equal to
the Lessee Purchase Fixed Price for such Category or Categories of Leased
Equipment and (ii) such bid is a bona fide offer from a third party purchaser.

               (b) Neither the Lessor nor any Participant shall have any
responsibility for procuring any purchaser; if, however, the Lessor, at the
direction of the Required Investors or Required Noteholders, undertakes any
sales efforts, the Lessee shall promptly reimburse the Lessor for any reasonable
charges, costs and expenses incurred in such effort, including any reasonable
allocated time charges, costs and expenses of internal counsel or other
attorneys' fees. Further, all reasonable costs related to any sale and delivery
pursuant to the exercise of the Sale Option, including the reasonable cost of
sale agents, removal of any such Category of Leased Equipment, delivery of
documents and such Category of Leased Equipment, certification and testing of
such Category of Leased Equipment in any reasonable location chosen by the buyer
or prospective buyer, all reasonable costs associated with any repairs,
modifications or improvements desired by the purchaser or prospective purchaser,
reasonable legal costs, costs of notices, any reasonable advertisement or other
similar costs shall be borne entirely by the Lessee.

               (c) Prior to the exercise of the Sale Option in respect of one or
more Categories of Leased Equipment, and on the Final Maturity Date, the Lessee
shall

                                      11
<PAGE>

ensure that such Category or Categories of Leased Equipment (i) are in the
condition required to satisfy the Return Acceptance Conditions and (ii) are
free and clear of all Liens except Lessor Liens.

               (d) Notwithstanding anything contained in this SECTION 12.5 to
the contrary, if the Lessee elects to exercise its Sale Option in respect of one
or more Categories of Leased Equipment, any Investor shall have the option (the
"INVESTOR PURCHASE OPTION") to purchase one or more of such Categories of Leased
Equipment for the aggregate purchase price applicable to each such Category of
Leased Equipment as set forth on SCHEDULE 4 hereto (the "INVESTOR PURCHASE
PRICE"), PROVIDED THAT such Investor shall, not less than 240 days prior to the
Final Maturity Date, have paid in immediately available funds to the Lessor an
amount equal to the Investor Purchase Price.

               (e) In the event that the Lessee has elected to exercise the Sale
Option in respect of one or more Categories of Leased Equipment and, at least
five (5) days prior to the Final Maturity Date, the sale of any such Category of
Leased Equipment has not been consummated, (i) at the sole option and discretion
of the Lessor, either (y) the Lessor shall retain all of its right, title and
interest in and to such Category of Leased Equipment or (z) such Category of
Leased Equipment shall be deemed to have been sold to the Lessee for one (1)
Dollar and (ii) the Lessee shall, in either case, on or prior to the Final
Maturity Date, pay to the Lessor, in immediately available funds, the Maximum
Deficiency Amount for such Category of Leased Equipment. If any Category of
Leased Equipment is deemed to be sold to the Lessee and, upon payment of the
Maximum Deficiency Amount for such Category of Leased Equipment by the Lessee,
in accordance with the provisions of the preceding sentence, the Lessor shall
transfer to the Lessee all the Lessor's right, title and interest in and to such
Category of Leased Equipment (without representations or warranties, except that
such Category of Leased Equipment is free and clear of the Lessor Liens) and
shall execute and deliver to the Lessee such documents as may be reasonably
required to release such Category of Leased Equipment from the terms and scope
of this Lease in such form as may be reasonably requested by the Lessee. If the
Lessor elects to retain title to any Category of Leased Equipment, the Lessee
shall, on the Final Maturity Date, (i) return such Category of Leased Equipment
(together with all Required Improvements and each Improvement that is not a
Severable Improvement made to such Category of Leased Equipment) to the Lessor
free and clear of all Liens other than Lessor Liens and in the condition
required to satisfy the Return Acceptance Conditions, as determined by an
independent engineer retained by the Lessor and acceptable to the Required

                                      12
<PAGE>

Participants and (ii) at the Lessor's request, sell to the Lessor each Severable
Improvement made to such Category of Leased Equipment at the then Fair Market
Value, determined, if necessary, by an independent appraiser. If the condition
of such Category of Leased Equipment does not meet the Return Acceptance
Conditions, the Lessee shall have the option of making the repairs, performing
such maintenance, or paying to the Lessor on the Final Maturity Date the amount
required for a third party to make such repairs or perform such maintenance, as
is required to cause the condition of such Category of Leased Equipment to
satisfy the Return Acceptance Conditions.

        12.6 RECONVEYANCE; RELEASE OF LIEN OF THE LESSOR.

               (a) In the event that any Category of Leased Equipment is sold to
a purchaser at an Auction (an "AUCTION PURCHASER") or purchased by an Investor
(in either case, the purchaser shall be the "OWNER"), (i) the Lessor shall
transfer to the Owner all the Lessor's right, title and interest in and to such
Category of Leased Equipment (without representations or warranties, except that
such Category of Leased Equipment is free and clear of Lessor Liens) and shall
execute and deliver to the Owner such documents as may be reasonably required to
release such Category of Leased Equipment from the terms and scope of this Lease
in such form as may be reasonably requested by the Owner, (ii) the Lessee shall
sell to the Owner, at the Owner's option and request and at the then Fair Market
Value, each Severable Improvement made to such Category of Leased Equipment and
(iii) in the case of a sale to the Auction Purchaser, the Lessee shall, no less
than five (5) days prior to the Lease Expiration Date, pay, or cause to be paid,
in immediately available funds to the Lessor (y) the sale price at Auction for
such Category of Leased Equipment (the "AUCTION SALE PRICE") and (z) the
difference, if any, between the Lessee Purchase Fixed Price in respect of such
Category of Leased Equipment and the Auction Sale Price for such Category of
Leased Equipment (the "RESIDUAL DEFICIENCY PAYMENT"); PROVIDED, HOWEVER, that
the Residual Deficiency Payment for such Category of Leased Equipment shall, in
no event, exceed the Maximum Deficiency Amount for such Category of Leased
Equipment.

               (b) In the event that any Category of Leased Equipment is
retained by the Lessor in accordance with SECTION 12.5(e)(i)(y), the Lessee
shall sell to the Lessor at the end of the Lease Term, at the Lessor's option
and request and at the then Fair Market Value, each Severable Improvement made
to such Category of Leased Equipment.

SECTION 13. REDELIVERY OF EQUIPMENT.

                                      13
<PAGE>

        Upon a Lease Event of Default or as otherwise required pursuant to the
Basic Documents, the Lessee shall, upon demand of the Lessor, at the Lessee's
expense, forthwith dismantle and deliver the Leased Equipment to the Lessor to a
location designated by the Lessor, together with a copy of an inventory list of
the Leased Equipment, all then current plans, specifications and operating,
maintenance and repair manuals relating to the Leased Equipment that have been
received or prepared by the Lessee, appropriately protected and in the condition
required by SECTION 7.2. This SECTION 13 shall survive termination of this
Lease.

SECTION 14. EVENTS OF DEFAULT.

The following shall constitute events of default (each, a "LEASE EVENT OF
DEFAULT") hereunder:

        14.1 PAYMENT DEFAULT. (a) Any payment of Basic Rent shall not have been
paid within five (5) Business Days of the applicable Rent Payment Date, (b) the
Residual Deficiency Payment shall not have been paid when due or (c) any other
amount due and payable under this Lease or the Basic Documents, including
Supplemental Rent, shall not have been paid within five (5) Business Days of its
respective due date.

        14.2 MISREPRESENTATION. Any representation or warranty of the Lessee or
Guarantor contained herein or in any other Basic Document is incorrect,
incomplete or misleading in any material respect when made, deemed made or
reaffirmed, as the case may be.

        14.3 COVENANT DEFAULTS. The Lessee or Guarantor defaults in any material
respect in the performance or observance of any term, covenant, condition or
agreement on its part to be performed or observed hereunder or under any other
Basic Document (and not constituting a Lease Event of Default under any other
clause of this SECTION 14), and such default continues unremedied for a period
of thirty (30) days after written notice thereof by the Lessor to the Lessee or
Guarantor, as the case may be.

        14.4 BANKRUPTCY, ETC.

                 (a) The Lessee or the Guarantor shall (i) commence a voluntary
case or other proceeding seeking relief under Title 11 of the Bankruptcy Code or
liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy,

                                      14
<PAGE>

insolvency or other similar law now or hereafter in effect, or apply for or
consent to the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its property, or (ii)
consent to, or fail to controvert in a timely manner, any such relief or the
appointment of or taking possession by any such official in any voluntary
case or other proceeding commenced against it, or (iii) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, or (iv) make a general assignment for the benefit of creditors; or

                 (b) An involuntary case or other proceeding shall be commenced
against the Lessee or Guarantor seeking (i) liquidation, reorganization or other
relief with respect to it or its debts under Title 11 of the Bankruptcy Code or
any bankruptcy, insolvency or other similar law now or hereafter in effect, or
(ii) the appointment of a trustee, receiver, liquidator, custodian or other
similar official with respect to it or any substantial part of its property, or
(iii) the winding-up or liquidation of the Lessee or Guarantor, as the case may
be, and such involuntary case or other proceeding shall remain undismissed and
unstayed for a period of 90 days.

        14.5 ERISA. Any one or more of the following shall occur and the
liability of the Guarantor and its Subsidiaries on a consolidated basis shall
exceed, individually or in the aggregate, $10,000,000: (a) a contribution
failure occurs with respect to any Plan (other than a Multiemployer Plan)
sufficient to give rise to a lien under Section 302(f) of ERISA or Section
412(n) of the Code with respect to any Plan (other than a Multiemployer Plan) as
to which the Guarantor or any ERISA Affiliate to the Guarantor may have any
liability, (b) there shall exist an unfunded current liability (as defined in
302(d)(8) of the Code) with respect to any Plan, (c) steps are undertaken to
terminate any Plan, (d) any Reportable Event occurs with respect to a Plan for
which notice to the PBGC has not been waived, (e) any action is taken with
respect to a Plan which could result in the requirement that the Guarantor or
any ERISA Affiliate to the Guarantor furnish a bond or other security to the
PBGC or such Plan, (f) the occurrence of any event which could cause the
Guarantor or any ERISA Affiliate to the Guarantor to incur any liability, fine
or penalty with respect to any Plan or any increase in liability with respect to
any Plan, or (g) the occurrence of any event that could result in any increase
in the liability (or contingent liability) of the Guarantor or any ERISA
Affiliate to the Guarantor with respect to post-retirement benefits under any
Welfare Plan.

        14.6 CROSS-DEFAULTS. The Guarantor fails to pay any amount of principal
of or premium or interest on any outstanding Indebtedness of the Guarantor
having a principal amount individually or in the aggregate of at least
$100,000,000, when the

                                      15
<PAGE>

same becomes due and payable (whether by scheduled maturity, acceleration,
required prepayment, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or
instrument relating to such Indebtedness; or any other default under any
agreement or instrument relating to any outstanding Indebtedness of the
Guarantor having a principal amount individually or in the aggregate of at
least $100,000,000, or any other event or default exists after the applicable
grace period, if any, specified in such agreement or instrument, if the
effect of such default or event is to permit the acceleration of the maturity
of such Indebtedness; or at least $100,000,000 in the aggregate of
Indebtedness of the Guarantor shall be accelerated or shall be declared to be
due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), prior to the stated maturity thereof.

        14.7 JUDGMENTS. A final judgment or judgments shall be rendered by a
court or courts for the payment of money in excess of $100,000,000 in the
aggregate against the Guarantor and the same is not discharged (or provision is
not made for such discharge to the satisfaction of the Lessor and the Required
Noteholders), or a stay of execution thereof shall not be procured, within 30
days from the date of entry thereof and the Guarantor shall not, within said
period of 30 days, or such longer period during which execution of the same is
stayed, appeal therefrom and cause the execution thereof to be stayed during
such appeal.

SECTION 15. REMEDIES.

        15.1 PAYMENT OF TERMINATION VALUE; ASSUMPTION OPTION.

               If a Lease Event of Default shall have occurred and be
continuing, the Lessor shall have the right, at its own election, to demand that
the Lessee pay to the Lessor, as and for final liquidated damages, but exclusive
of the indemnities payable under SECTION 6 of the Participation Agreement and
other amounts payable by Lessee under SECTION 20 of the Participation Agreement,
and in lieu of all damages beyond the date of such demand, the sum of (a) all
amounts owing in respect of Rent theretofore accruing under this Lease, subject
in all respects to SECTION 15.4 PLUS (b) the Termination Value; PROVIDED,
HOWEVER, that the Lessee may, at its election, assume all of the Lessor's
obligations under the Tranche A Notes and repay the Tranche B Notes and the
Certificates pursuant to SECTION 15.5 in lieu of paying Termination Value
pursuant to CLAUSE (b). Upon payment by the Lessee of the amounts specified
pursuant to the first sentence of this SECTION 15.1 (and the fulfillment of the
requirements of SECTION 15.5 if

                                      16
<PAGE>

the Lessee chooses the Assumption Option), the Lessor shall transfer to the
Lessee all the Lessor's right, title and interest in and to the Leased
Equipment (without representations or warranties, except that the Leased
Equipment is free and clear of Lessor Liens) and shall execute and deliver to
the Lessee such documents as may be reasonably required to release the Leased
Equipment from the terms and scope of this Lease in such form as may be
reasonably requested by the Lessee.

        15.2 LEASE REMEDIES. The Lessor and the Lessee intend that for
commercial law and bankruptcy law purposes, this Lease will be treated as a
financing arrangement, as set forth in SECTION 2.3 of the Participation
Agreement. The Lessor shall be entitled to all rights and remedies accorded a
secured party under Applicable Law. If, as a result of any applicable state law
that cannot be waived, this Lease is deemed to be a lease of the Leased
Equipment, rather than a financing arrangement, and the Lessor is unable to
enforce the remedies set forth in SECTION 15.1, the following remedies shall be
available to the Lessor, subject in each case as applicable to SECTION 15.4 and
subject further, in each case, to the ComEd Consent:

               (a) if a Lease Event of Default shall have occurred and be
        continuing, the Lessor may, in addition to the other rights and remedies
        provided for in this SECTION 15.2, (i) terminate the Lease by giving the
        Lessee ten (10) Business Days written notice of such termination and
        (ii) declare the entire balance of Rent to be due and payable together
        with accrued unpaid Rent and any other amounts payable under the Basic
        Documents,

               (b) if a Lease Event of Default shall have occurred and be
        continuing, the Lessee shall, upon the Lessor's written demand,
        surrender to the Lessor possession of the Leased Equipment and the
        Lessee shall quit the same. The Lessor may act to repossess the Leased
        Equipment by such means as are available at Law or in equity. The Lessor
        shall have no liability by reason of any such repossession performed in
        accordance with Applicable Law, except as specifically set forth in
        SECTION 10.2,

               (c) if a Lease Event of Default shall have occurred
        and be continuing, the Lessor may sell all or any part of the Leased
        Equipment at public or private sale, as the Lessor may determine,

                                      17
<PAGE>

               (d) if a Lease Event of Default shall have occurred and be
        continuing, the Lessor may relet all, or any portion, of the Leased
        Equipment, for the account of the Lessee, for such term or terms (which
        may be greater or less than the period which would otherwise have
        constituted the balance of the Lease Term) and on such conditions and
        for such purposes as the Lessor may determine. The Lessor may collect,
        receive and retain the rents resulting from such reletting and the
        amount of such rents shall be applied to the Lessee's obligations
        hereunder. If the amount of such rents during any period are less than
        the Rent to be paid during that period by the Lessee hereunder, the
        Lessee shall pay any deficiency, as calculated by the Lessor, to the
        Lessor on the next Rent Payment Date, and

               (e) the Lessor may exercise any other right or remedy that may be
        available to it under Applicable Law, or proceed by appropriate court
        action (legal or equitable) to enforce the terms hereof, to recover
        damages for the breach hereof.

        15.3 LESSOR'S RIGHT TO PERFORM OBLIGATIONS. If the Lessee fails to
perform any of its obligations contained herein, and a Lease Event of Default
has occurred and is continuing, the Lessor may (but shall not be obligated to)
perform such obligation, and the fees and expenses incurred by the Lessor in
connection with such performance together with interest thereon shall be payable
by the Lessee upon demand. Interest on fees and expenses so incurred by the
Lessor shall accrue as provided in SECTION 4.1(b) from the date such expense is
incurred until paid in full.

        15.4 LIMITATION ON LIABILITY FOR RENT. Notwithstanding any provisions to
the contrary contained in this Lease, claims against the Lessee for Rent due on
any Rent Payment Date shall be limited as set forth in SECTION 7.2 of the
Participation Agreement; PROVIDED that the Guarantor shall be liable under the
Guaranty for all amounts owing by the Lessee hereunder, other than in connection
with the Lessee's obligations pursuant to SECTION 6.7 of the Participation
Agreement.

        15.5 ASSUMPTION OPTION. Whenever the Lessee shall be liable for the
payment of Termination Value hereunder, in lieu of making such payment, the
Lessee shall have the option to assume all of the Lessor's obligations under the
Tranche A Notes and repay the Tranche B Notes and Certificates (the "ASSUMPTION
OPTION").

                                      18
<PAGE>

SECTION 16. ASSIGNMENT OF LEASE.

        All or any of the right, title or interest and obligations of the Lessor
in and to this Lease and the rights, benefits, advantages and obligations of the
Lessor hereunder, including the rights to receive payment of Rent or any other
payment hereunder, and the rights, titles and interests in and to the Leased
Equipment, may be assigned or transferred by the Lessor only in accordance with
the provisions set forth in the Participation Agreement. The Lessee may not
assign any of its rights and obligations under this Lease except pursuant to a
sublease in accordance with the terms and conditions of SECTION 9.

SECTION 17. OWNERSHIP AND GRANT OF SECURITY INTEREST.

        Record title to the Leased Equipment is held by the Lessor as collateral
security for the obligations of the Lessee under the Basic Documents. As
collateral security for the prompt payment and performance in full when due
(whether at stated maturity, by acceleration or otherwise) of the Lessee's
Obligations to the Lessor under the Lease and each of the other Basic Documents
(the "LESSEE SECURED OBLIGATIONS"), the Lessee hereby assigns, transfers, sets
over and conveys to the Lessor, a continuing security interest of first priority
in all of the Lessee's right, title and interest in, to and under all the
following described property, whether now owned or held or hereafter acquired
and whether now existing or hereafter coming into existence and wherever
located: all estate, right, title and interest of the Lessee in, to and under
the Leased Equipment and all replacements thereof and substitutions therefor,
including all Required Improvements and non-Severable Improvements.

SECTION 18. MISCELLANEOUS.

        18.1 APPLICABLE LAW. THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS LEASE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS
OF LAW PROVISIONS THEREOF EXCEPT SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

        18.2 QUIET ENJOYMENT. So long as no Lease Event of Default shall have
occurred and be continuing, the Lessee shall peaceably and quietly have, hold
and enjoy the Leased Equipment for the Lease Term or Renewal Lease Term, as
applicable, free

                                      19
<PAGE>

of any claim or other action by the Lessor or anyone rightfully claiming by,
through or under the Lessor. Such right of quiet enjoyment is independent of,
and shall not affect the rights of the Lessor (or anyone claiming by, through
or under the Lessor) otherwise to initiate legal action to enforce, the
obligations of the Lessee under this Lease.

        18.3 NOTICES. Unless otherwise specified herein, all notices, requests,
demands or other communications to or upon the respective parties hereto shall
be in writing and shall be delivered in accordance with SECTION 21.5 of the
Participation Agreement.

        18.4 COUNTERPARTS. This Lease has been executed in several counterparts.
One counterpart has been prominently marked "the Lessor's Copy" and the other
counterparts have been prominently marked "the Lessee's Copy" or "Copy." Only
the counterpart marked "the Lessor's Copy" shall evidence a monetary obligation
of the Lessee or shall be deemed to be an original or to be chattel paper for
purposes of the UCC, and such copy shall be held by the Lessor.

        18.5 SEVERABILITY. Whenever possible, each provision of this Lease shall
be interpreted in such manner as to be effective and valid under Applicable Law;
but if any provision of this Lease shall be prohibited by or invalid under
Applicable Law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Lease.

        18.6 SUCCESSORS AND ASSIGNS. This Lease shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of the parties hereto and their respective successors and permitted
assigns.

        18.7 THIRD-PARTY BENEFICIARIES. Except as expressly provided herein,
none of the provisions of this Lease is intended for the benefit of any Person
except the parties hereto, their successors and permitted assigns; PROVIDED THAT
each of the Lessor and the Lessee agrees that the Investors shall benefit from
all of the provisions of this Lease applicable to them.

        18.8 JURY TRIAL. EACH OF THE LESSEE AND THE LESSOR WAIVES TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS LEASE OR ANY OTHER BASIC
DOCUMENT OR UNDER ANY AMENDMENT, INSTRU-

                                      20
<PAGE>

MENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED
IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY RELATIONSHIP EXISTING
IN CONNECTION WITH THIS LEASE OR ANY OTHER BASIC DOCUMENT AND AGREES THAT ANY
SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

        18.9 HEADINGS; TABLE OF CONTENTS. Section headings and the table of
contents used in this Lease (including the Schedules, Exhibits and Annexes
hereto) are for convenience of reference only and shall not affect the
construction of this Lease.

        18.10 SCHEDULES AND EXHIBITS. The Schedules and Exhibits hereto, along
with all attachments referenced in any of such items, are incorporated herein by
reference and made a part hereof.

        18.11 NO JOINT VENTURE. Any intention to create a joint venture or
partnership relation between the Lessor and the Lessee is hereby expressly
disclaimed.

        18.12 REFERENCES TO SECTIONS, EXHIBITS AND SCHEDULES. Any reference to a
section, exhibit or schedule in this Agreement shall be to a section, exhibit or
schedule of this Agreement unless otherwise specified.

        18.13 LIMITATIONS OF LIABILITY OF TRUSTEE. It is expressly understood
and agreed by the parties hereto that this Lease is executed by Wilmington Trust
Company, not individually or personally, but solely as Trustee under the Trust
Agreement in the exercise of the power and authority conferred and vested in it
as such Trustee, that each and all of the representations, undertakings and
agreements herein made on the part of the Trustee or the Lessor are intended not
as personal representations, undertakings and agreements by Wilmington Trust
Company, or for the purpose or with the intention of binding Wilmington Trust
Company, personally, but are made and intended for the purpose of binding only
the Trust Estate, that nothing herein contained shall be construed as creating
any liability of Wilmington Trust Company, or any incorporator or any past,
present or future subscriber to the capital stock of, or stockholder, officer or
director of Wilmington Trust Company, to perform any covenant either express or
implied contained herein or in the other Basic Documents to which the Trustee or
the Lessor is a party, and that so far as Wilmington Trust Company is concerned,
any Person shall look solely to the Trust Estate for the performance of any
obligation hereunder or thereunder or under any of the instruments referred to
herein or therein;

                                      21
<PAGE>

PROVIDED, that nothing contained in this SECTION shall be construed to limit
in scope or substance any general corporate liability of Wilmington Trust
Company as expressly provided in the Trust Agreement or in the Participation
Agreement.

                                      22
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have executed this LEASE
AGREEMENT as of the day and year first above written.

                             MIDWEST GENERATION, LLC

                               /s/ John P. Finneran, Jr.
                             ---------------------------
                             Name: John P. Finneran, Jr.
                             Title:  Vice President

                             EME/CDL TRUST

                             By: Wilmington Trust Company, not in its
                                 individual capacity, but solely as Trustee

                              /s/ Kathleen A. Pedelini
                             ----------------------------
                             Name:   Kathleen A. Pedelini
                             Title:  Administrative Account Manager
<PAGE>

                                                                      SCHEDULE 1
                                                                          TO
                                                                      THE LEASE

                       DESCRIPTION OF THE LEASED EQUIPMENT

                                   [to come]

                                      S-1
<PAGE>

                                                                      SCHEDULE 2
                                                                        TO
                                                                       THE LEASE

                                    INSURANCE

               (a) Lessee shall maintain, or cause to be maintained, with
financially sound and reputable insurance companies, insurance for such amounts
against such risks, loss, damage and liability as are customarily insured
against by other enterprises of like size and type as that of the Leased
Equipment, subject to the availability of such coverage on commercially
reasonable terms, all on terms and conditions which are in accordance with
Prudent Industry Practice and shall include business interruption insurance with
a deductible not to exceed 60 days and a tenor no shorter than one year;

               (b) All such policies of casualty, third party liability and
business interruption insurance shall:

                       (i) provide that, with respect to third party liability
               insurance, the Lessor, the Noteholders and the Investors shall be
               named as additional insureds;

                       (ii) provide that (A) no cancellation or termination of
               such insurance and (B) no reduction in the limits of liability of
               such insurance shall be effective until 30 days after written
               notice is given by the insurers to the Agent of such
               cancellation, termination, reduction or change;

                       (iii) waive all claims for insurance premiums or
               commissions or additional premiums or assessments against the
               Lessor, the Noteholders and the Investors; and

                       (iv) waive any right of the insurers to setoff or
               counterclaim or to make any other deductions, whether by way of
               attachment or otherwise, as against the Lessor, the Noteholders
               and the Investors.

                                      S-2
<PAGE>

                                                                     SCHEDULE 3
                                                                        TO
                                                                     THE LEASE

              TERMINATION VALUE                             TERMINATION DATE

                                   [to come]

                                      S-3
<PAGE>

                                                                     SCHEDULE 4
                                                                        TO
                                                                     THE LEASE

                          CATEGORIES OF LEASED EQUIPMENT
<TABLE>
<CAPTION>
<S>                      <C>                     <C>                   <C>
      Category           Lessee Purchase            Investor                Maximum
      --------
                           Fixed Price          Purchase Price        Deficiency Amount
                         ---------------        --------------        -----------------
</TABLE>

                                   [to come]

                                      S-4<PAGE>

                                                                  Exhibit 10.107

                                                                  EXECUTION COPY

         REIMBURSEMENT AGREEMENT I (this "AGREEMENT") dated as of December 15,
1999 entered into between Bayerische Landesbank International S.A., a banking
institution organized under the laws of Luxembourg (the "BANK") and Midwest
Generation, LLC ("MIDWEST").

         WHEREAS, the Collins Trust I (the "OWNER LESSOR") and Collins Holdings
EME, LLC ("COLLINS HOLDINGS") are party to the Facility Lease Agreement (as the
same may be amended, supplemented or otherwise modified from time to time, the
"FACILITY LEASE") dated as of December 15, 1999;

         WHEREAS, Collins Holdings and Midwest are party to the Facility
Sublease Agreement (as the same may be amended, supplemented or otherwise
modified from time to time, the "FACILITY SUBLEASE") dated as of December 15,
1999;

         WHEREAS, the Owner Lessor wishes to obtain additional credit
enhancement from Midwest in order to support the obligations of Midwest to
Collins Holdings under the Facility Sublease and, concomitantly, the obligations
of Collins Holdings to the Owner Lessor under the Facility Lease;

         In consideration of the issuance by the Bank on the Closing Date of an
irrevocable standby letter of credit in the form attached hereto as Exhibit A
(including any substitutions or replacements thereof in accordance with this
Agreement, as the same may be amended, supplemented or otherwise modified from
time to time, the "LETTER OF CREDIT"), in the amount of U.S.$3,870,000.00 and in
favor of the Beneficiary referred to therein (the "BENEFICIARY"), Midwest and
the Bank hereby agree as follows:

1.       DEFINITIONS. Capitalized terms used in this Agreement, including the
         foregoing Recitals, and not otherwise defined herein shall have the
         respective meanings specified in Annex A hereto.

2.       PAYMENTS: Midwest agrees to reimburse the Bank on demand, in
         immediately available funds by transferring such amounts to First Union
         National Bank (Swift ID: PNBPU S3NNYC), Account No.: 200019 3574483 in
         favor of Bayerische Landesbank International S.A. Luxembourg (SWIFT ID
         BYLAULL), for each payment made by the Bank pursuant to a drawing in
         accordance with the terms and conditions of the Letter of Credit
         together with interest on such amount in accordance with Section 5
         hereof (the "REIMBURSEMENT OBLIGATIONS") until payment in full
         hereunder. Each payment by Midwest to the Bank shall be made in lawful
         currency of the United States, shall be directed to the attention of
         Patricia Sanchez, and shall be identified by the number assigned to the
         Letter of Credit by the Bank.

3.       CANCELLATION: The Letter of Credit may be canceled in accordance with
         the terms and conditions of the Letter of Credit.

<PAGE>

4.       FEES: Midwest will pay the Bank a per annum fee equal to 0.30% of the
         daily average of the amount available for drawing under each Letter of
         Credit, calculated on the basis of a 365 or 366 day year, in each case
         for the actual number of days occurring in the period for which such
         fee is payable, payable in United States currency at the location
         designated herein, quarterly in arrears on the sixth day of each
         January, April, July and October (but if such day is not a Business
         Day, on the next succeeding Business Day), (each, a "QUARTERLY PAYMENT
         DATE") and on the expiration or termination date of such Letter of
         Credit. For each amendment to any Letter of Credit, Midwest will
         immediately pay the Bank a charge of $200 in connection therewith.
         Midwest agrees to pay all fees and charges which are due pursuant to
         the terms of this Agreement by transferring such amounts to First Union
         Bank International, New York, FED ABA No. 026.00509.2, Account No. 2000
         19353009 0 in favor of Bayerische Landesbank International S.A.
         Luxembourg.

5.       INTEREST ON PAYMENTS: The Reimbursement Obligations shall accrue
         interest at the Alternate Base Rate plus the Applicable Margin PLUS 2%
         per annum until the Reimbursement Obligations have been paid in full;
         PROVIDED that, upon the occurrence and during the continuance of any
         Maturity Event, Midwest shall pay, but only to the extent permitted by
         law, interest (after as well as before judgment) on the Reimbursement
         Obligations at a rate per annum equal to the Alternate Base Rate plus
         the Applicable Margin plus 5% per annum until such Maturity Event is
         cured; PROVIDED FURTHER that, in addition to the interest then payable
         on amounts paid under the Letter of Credit pursuant to this Section 5,
         if after each three month period following the occurrence of the
         Maturity Event such Maturity Event shall not have been cured, Midwest
         shall pay, but only to the extent permitted by law, interest on the
         Reimbursement Obligations at an additional 1% per annum until such
         Maturity Event is cured. Interest will be calculated based on the
         actual days outstanding and a 365 or, if appropriate, 366 day year.
         Actual days outstanding means the period from and including the day of
         payment by the Bank to and excluding the day of the Bank's receipt of
         funds from Midwest. Interest under this Section 5 shall be paid on
         demand (or, if no demand is made, on each Quarterly Payment Date) and
         on the date that the Reimbursement Obligations are paid in full.

6.       INDEMNITY: Midwest will absolutely, irrevocably and, except as
         otherwise provided herein, unconditionally indemnify and hold the Bank
         harmless against all loss, cost or expense suffered or incurred by the
         Bank howsoever arising from or in connection with the Letter of Credit,
         EXCEPT for any loss, cost or expense suffered or incurred as a result
         of the gross negligence or willful misconduct of the Bank. Neither the
         Bank nor any of the Bank's correspondents or agents shall be
         responsible for any of the following contingencies, including, but not
         limited to: (a) any acts or omissions of the Beneficiary; (b) the form,
         validity, sufficiency, accuracy, genuineness or legal effect of
         documents specified in the Letter of Credit, even if it should in fact
         be proven to be in any or all respects invalid, insufficient,
         inaccurate, fraudulent or forged, provided that all the documents
         appear on their face to be in accordance with the terms and conditions
         of the Letter of Credit; (c) errors, omissions, interruptions or delays
         in transmission or delivery of any messages, by mail, cable, telegraph,
         telex or otherwise, whether or not they may be indecipherable or errors
         in translation or errors in interpretation of technical terms; (d) any
         loss or delay in the transmission or otherwise of any such document or
         draft; (e)

                                       2
<PAGE>

         consequences of compliance with applicable laws, orders, regulations,
         or directives in effect in places of negotiation or payment of the
         Letter of Credit; or (f) without limiting the foregoing, any
         consequences arising from causes beyond the Bank's control or any act
         or omission by the Bank or any of its correspondents, except to the
         extent that the occurrence of any of the contingencies specified in
         subparagraphs (a) through (f) above is attributable to the gross
         negligence or willful misconduct of the Bank or any of its
         correspondents. The occurrence of any one or more of the above
         contingencies shall not affect or impair the Bank's rights and powers
         hereunder or the obligations of Midwest to the Bank of payment,
         indemnity or reimbursement hereunder. If payment is not made within 5
         Business Days of the date demanded, interest will be charged based on
         the calculation in Section 5.

         This Section 6 shall survive any payment of the Bank's obligations and
         liabilities hereunder and any termination of this Agreement.

7.       CHANGE IN CIRCUMSTANCES: If the Bank determines that any change in any
         law, regulation, guideline or order or in the interpretation thereof by
         any court or administrative or governmental authority charged with the
         administration thereof shall either (i) impose, modify or deem
         applicable any reserve, special deposit or similar requirement against
         the Letter of Credit or require the inclusion of the Letter of Credit
         in calculations related to the Bank's capitalization or (ii) impose any
         other condition regarding this Agreement or the Letter of Credit,
         including, without limitation, any requirement that the Bank pay
         assessments for deposit insurance with respect to the Letter of Credit,
         and the result of any event referred to in clause (i) or (ii) above
         shall be to increase the cost to the Bank of issuing or maintaining the
         Letter of Credit or the reimbursement obligations of Midwest or to
         reduce the amounts receivable by the Bank upon such reimbursement,
         then, upon demand by the Bank, Midwest shall promptly pay to the Bank
         from time to time as specified by the Bank additional amounts which
         shall be sufficient to compensate the Bank for such increased cost or
         reduced receivables. A certificate as to such amounts submitted by the
         Bank to Midwest, stating in reasonable detail the basis of computation,
         shall be presumptive evidence of additional amounts payable under this
         Section 7. Midwest acknowledges that there may be various methods of
         allocating to the Letter of Credit reserve, assessment, capitalization
         or similar costs referred to above and agrees that the allocation of
         the Bank, for purposes of determining such costs, shall be conclusive
         and binding upon Midwest, provided that such allocations are made in
         good faith by a reasonable method and are absent manifest error. If
         payment is not made within 5 Business Days of the date demanded,
         interest will be charged based on the calculation in Section 5.

8.       LIABILITY OF THE BANK: The Bank shall not be responsible for verifying
         the existence of any act, condition or statement made by the
         Beneficiary in relation to any drawing or presentment under the Letter
         of Credit, for the validity or genuineness of certificates or other
         documents delivered under or in connection with the Letter of Credit,
         even if such certificates or other documents should in fact prove to be
         invalid, fraudulent or forged, for any breach of contract between the
         Beneficiary and Midwest, or for any other consequences beyond the
         Bank's control, so long as the Bank acts in good faith and in
         accordance with applicable law and customary banking procedures. The
         Bank may

                                       3
<PAGE>

         accept certificates or other documents that appear on their face to be
         in order without responsibility for further investigation, regardless
         of any notice or information to the contrary, unless otherwise ordered
         by a court of competent jurisdiction. In furtherance of and not in
         limitation of the foregoing, Midwest agrees that any action, inaction
         or omission taken or suffered by the Bank in good faith and in
         accordance with applicable law and customary banking procedures in
         connection with any Letter of Credit or related drafts shall be binding
         on Midwest and shall not result in any liability of the Bank to
         Midwest.

9.       OBLIGATION ABSOLUTE: Midwest's obligation to make each payment under
         this Agreement shall be absolute and unconditional and shall not be
         subject to any defense or be affected by any right of setoff,
         counterclaim or recoupment which Midwest may now or hereafter have
         against the Beneficiary, the Bank or any other person for any reason
         whatsoever.

10.      CONDITIONS PRECEDENT: This Agreement shall become effective upon the
         satisfaction of each of the conditions precedent set forth below:

         (a)      Midwest agrees to deliver to the Bank, a certificate of its
                  Secretary or an Assistant Secretary as to resolutions of its
                  Board of Directors authorizing Midwest to enter into and
                  perform this Agreement and the names and signatures of the
                  officers or other officials of Midwest who are authorized to
                  sign this Agreement, together with certified copies of
                  Midwest's organizational documents and an opinion of counsel
                  to Midwest in form and substance satisfactory to the Bank.

         (b)      The Participation Agreement shall have been duly authorized,
                  executed and delivered by the parties thereto.

         (c)      Each of the conditions precedent contained in Section 4 of the
                  Participation Agreement shall have been satisfied in the
                  opinion of the Bank or waived by the Bank.

         (d)      The Bank shall have received any other certificates, documents
                  or information regarding Midwest as the Bank may reasonably
                  request.

11.      RIGHT OF SETOFF: At any time when any Reimbursement Obligation has not
         been paid (after demand for payment has been made), the Bank is hereby
         authorized at any time and from time to time, without notice to Midwest
         (any such notice being expressly waived by Midwest) to set off and
         apply any and all deposits (general or special, time or demand,
         provisional or final) at any time held and other indebtedness at any
         time owing by the Bank to or for the credit or the account of Midwest
         against any and all of the obligations of Midwest now or thereafter
         existing under this Agreement, irrespective of whether or not the Bank
         shall have made any demand under this Agreement and although such
         obligations may be contingent and unmatured. The Bank agrees promptly
         to notify Midwest after any such setoff and application, provided that
         the failure to give such notice shall not affect the validity of such
         setoff and application. The rights of the Bank under this Section 11
         are in addition to other rights and remedies which the Bank may have
         including, without limitation, other rights of setoff.

                                       4
<PAGE>

12.      NOTICES: Notices and demands under this Agreement shall be in writing
         and will be sufficient if delivered by hand, by United States
         registered or certified mail or personal delivery by overnight mail or
         courier service or by facsimile receipt of which is confirmed by
         telephone. Notices and demands shall be effective when received and
         shall be addressed if to Midwest to:

                                    One Financial Place
                                    440 South LaSalle Street, Suite 3500
                                    Chicago, IL  60605
                                    Attn:  Georgia R. Nelson
                                    Fax No.: (312) 583-6111

         if to the Bank to:         Bayerische Landesbank International S.A.
                                    Corporate Finance Department
                                    3, Rue Jean Monnet
                                    L-2180 Luxembourg
                                    Attn.:   Nadja Bamberg/Serge Dollendorf
                                    Fax No.:  (00352) 42434-3399

13.      NO WAIVERS, REMEDIES: This Agreement may not be amended, waived or
         modified except in writing duly signed by the Bank and Midwest. The
         Bank may elect in its sole discretion not to renew the Letter of Credit
         for additional periods. This Agreement and the terms, covenants and
         conditions hereof shall be binding upon and inure to the benefit of the
         Bank and Midwest and their respective successors. No failure on the
         Bank's part to exercise, and no delay on the Bank's part in exercising,
         any rights, powers or remedies hereunder shall operate as a waiver
         thereof, nor shall any single or partial exercise of any such rights,
         powers or remedies by the Bank preclude any other or further exercising
         thereof or the exercise of any other right, power or remedy. All
         remedies hereunder are cumulative and not exclusive of any other
         remedies provided by law.

14.      SEVERABILITY: Any provision of this Agreement which is prohibited,
         unenforceable or not authorized in any jurisdiction shall, as to such
         jurisdiction, be ineffective to the extent required by law without
         invalidating the remaining provisions hereof or affecting the validity,
         enforceability or legality of such provision in any other jurisdiction.

15.      JURISDICTION/WAIVER OF JURY TRIAL:

         (a)      Any legal action or proceeding against Midwest or the Bank
                  with respect to this Agreement, the Letter of Credit or any of
                  the agreements, documents or instruments delivered in
                  connection herewith or therewith may be brought in the courts
                  of the State of New York or of the United States of America
                  for the Southern District of New York as the party commencing
                  such action or proceeding may elect. By execution and delivery
                  hereof, each party accepts and consents to, for itself and in
                  respect of its property, generally and unconditionally, the
                  jurisdiction of the aforesaid courts. Nothing herein shall
                  limit the right of Midwest or the Bank to bring proceedings
                  against the other party in the courts of any other
                  jurisdiction.

                                       5
<PAGE>

         (b)      Midwest and the Bank knowingly, voluntarily and intentionally
                  waive any and all rights Midwest or the Bank, as the case may
                  be, may have to a trial by jury in respect of any litigation
                  based on, or arising out of, under or in connection with, this
                  Agreement, the Letter of Credit or any other documents and
                  instruments executed in connection herewith.

16.      CONSTRUCTION AND INTERPRETATION: This Agreement shall be governed by
         and construed in accordance with the laws of the State of New York.
         Each Letter of Credit shall be subject to the Uniform Customs and
         Practice for Documentary Credits (1993 Revision), International Chamber
         of Commerce, Paris, France, Publication No. 500 (and any successor
         publication).

17.      COUNTERPARTS. This Agreement may be executed in any number of
         counterparts, each executed counterpart constituting an original but
         all together only one agreement.

                                       6
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed and delivered on the date set forth above by the undersigned thereunto
authorized.

                                            BAYERISCHE LANDESBANK
                                            INTERNATIONAL S.A.

                                            By:   /s/ H. PETER RADERMACHER
                                                --------------------------------
                                                 Name: H. Peter Radermacher
                                                 Title: Directeur - Adjoint

                                            By:  /s/ PETER LANG
                                                --------------------------------
                                                 Name: Peter Lang
                                                 Title: Mandataire Commercial

                                            MIDWEST GENERATION, LLC,

                                            By:  /s/ JOHN P. FINNERAN, JR.
                                                --------------------------------
                                                 Name: John P. Finneran, Jr.
                                                 Title: Vice President

<PAGE>

                                                                         ANNEX A
                                                      TO REIMBURSEMENT AGREEMENT

                                    ARTICLE 1

                                   DEFINITIONS

         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):

         "AGREEMENT" means, on any date, this Agreement together with all
Annexes, Appendices and Exhibits 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, a fluctuating rate of
interest per annum equal to the higher of:

                  (a) the rate of interest in effect for such day as publicly
         announced from time to time by the Citibank, N.A. at its principal
         office in New York, New York, as its "base rate." The "base rate" is a
         rate set by the Citibank, N.A. based upon various factors including the
         Bank's cost and desired return, general economic conditions and other
         factors, and is used as a reference point for pricing some loans, which
         may be priced at, above, or below such announced rate; or

                  (b) the Federal Funds Rate most recently determined by the
         Bank plus 1/2 of 1%.

         The Alternate Base Rate is not necessarily intended to be the lowest
rate of interest determined by the Bank in connection with extensions of credit.
Changes in the rate of interest on amounts payable under the Agreement will take
effect simultaneously with each change in the Alternate Base Rate. The Bank will
give notice promptly to Midwest of changes in the Alternate Base Rate.

         "APA" means the Asset Purchase Agreement dated as of December 15, 1999
(as the same may be amended, supplemented or otherwise modified from time to
time) among Funding LLC, the Securitization Company, Citibank, N.A., as agent,
each of the financial institutions party thereto as "Purchasers" and Citicorp
North America, Inc., as operating agent for the Securitization Company and as
agent for the Purchasers and the Securitization Company with respect to the
residual credit enhancement.

         "APPLICABLE MARGIN" means, for any day, the rate per annum in effect
for such day based on the Debt Rating which applies for such day determined as
provided in the Pricing Grid.

         "BANK" has the meaning set forth in the Recitals.

<PAGE>

         "BUSINESS DAY" means any day which is neither a Saturday or Sunday nor
a legal holiday on which banks are authorized or required to be closed in New
York, New York or Luxembourg.

         "CLOSING DATE" means the Closing Date, as defined in the Participation
Agreement.

         "COLLINS HOLDINGS" has the meaning set forth in the Recitals.

         "DEBT RATING" means a rating by each of Moody's and S&P of each of (a)
the Funding LLC Loans, (b) the Holdings Tranche A Loans and (c) the Holdings
Tranche B Loans. 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.

         "EFFECTIVE DATE" means the date this Agreement becomes effective
pursuant to SECTION 10.

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

         "FACILITY LEASE " has the meaning set forth in the Recitals.

         "FACILITY SUBLEASE " has the meaning set forth in the Recitals.

         "FEDERAL FUNDS RATE" means, for any period, a fluctuating interest rate
per annum equal for each day during such period to:

                  (a) the weighted average of the rates on overnight federal
         funds transactions with members of the Federal Reserve System arranged
         by federal funds brokers, as published for such day (or, if such day is
         not a Business Day, for the next preceding Business Day) by the Federal
         Reserve Bank of New York; or

                  (b) if such rate is not so published for any day which is a
         Business Day, the average of the quotations for such day on such
         transactions received by the Bank from up to three federal funds
         brokers of recognized standing selected by the Bank.

         "FUNDING LLC" means Midwest Funding LLC.

         "FUNDING LLC LOANS" means the Advances under and as defined in Asset
Purchase Agreement dated as of December 15, 1999 among Funding LLC, the
Securitization Company, Citibank, N.A., as agent, each of the financial
institutions party thereto as "Purchasers" and Citicorp North America, Inc., as
operating agent for the Securitization Company and as agent for the Purchasers
and the Securitization Company.

         "HEREIN", "HEREOF", "HERETO", "HEREUNDER" and similar terms contained
in this Agreement, any Annex, any Appendix, any Schedule or any Exhibit refer to
this Agreement as a whole and not to any particular Section, paragraph or
provision of this Agreement.

                                       2
<PAGE>

         "HOLDINGS" means Edison Mission Midwest Holdings Co., a subsidiary of
EME and a corporation organized under the laws of the State of Delaware.

         "HOLDINGS CREDIT AGREEMENT" means the Credit Agreement dated as of
December 15, 1999 among Holdings, The Chase Manhattan Bank, as administrative
agent thereunder and the financial institutions who are or may become parties
thereto as "Lenders", as from time to time amended, supplemented, amended and
restated or otherwise, modified and in effect from time to time.

         "HOLDINGS TRANCHE A LOANS" has the meaning assigned to the term
"Tranche A Loans" in the Holdings Credit Agreement.

         "HOLDINGS TRANCHE B LOANS" has the meaning assigned to the term
"Tranche B Loans" in the Holdings Credit Agreement.

         "INCLUDING" means including without limiting the generality of any
description preceding such term, and, for purposes of this Agreement, the
parties hereto 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.

         "MATURITY EVENT" means, at any time, the amounts of drawings under the
Letter of Credit shall not have been repaid or refinanced in full on or before
the date five years after the Effective Date.

         "MIDWEST" has the meaning set forth in the Recitals.

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

         "OWNER LESSOR" has the meaning set forth in the Recitals.

         "PARTICIPATION AGREEMENT" means the Participation Agreement [(T1)]
dated as of December 15, 1999 among Collins Holdings EME, LLC, Wilmington Trust
Company, as Owner Trustee of the Owner Lessor, the Owner Lessor, the Owner
Participant named therein, Edison Mission Midwest Holdings Co., Midwest, the
Bank, Bayerische Landesbank Girozentrale, Funding LLC and Citibank, N.A., as
Holder Representative, as the same may be amended, supplemented or otherwise
modified from time to time.

         "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.

         "PRICING GRID" means the pricing grid attached as ANNEX B.

         "REIMBURSEMENT OBLIGATIONS" has the meaning set forth in Section 2 of
the Agreement.

                                       3
<PAGE>

         "SECURITIZATION COMPANY" means CXC Incorporated.

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

         "UNITED STATES" or "U.S." means the United States of America.

         Section 1.2 USE OF DEFINED TERMS. Unless otherwise defined or the
context otherwise requires, terms for which meanings are provided in this Annex
A shall have such meanings when used in each other Annex, the Agreement and any
other notice and other communication delivered from time to time in connection
with this Agreement.

                                       4
<PAGE>

                                                                         ANNEX B
                                                      TO REIMBURSEMENT AGREEMENT

                                  PRICING GRID
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
BASIS FOR PRICING(1)           LEVEL 1           LEVEL 2           LEVEL 3            LEVEL 4         LEVEL 5           LEVEL 6

                             DEBT RATING       DEBT RATING       DEBT RATING        DEBT RATING     DEBT RATING       DEBT RATING
                              AT LEAST:         LESS THAN         LESS THAN          LESS THAN       LESS THAN        LOWER THAN
                           BBB+ BY S&P AND       LEVEL 1            LEVEL 2           LEVEL 3         LEVEL 4           LEVEL 5
                           Baa1 BY MOODY'S    BUT AT LEAST:      BUT AT LEAST:     BUT AT LEAST:   BUT AT LEAST:
                                              BBB BY S&P AND    BBB- BY S&P AND    BB+ BY S&P AND  BB BY S&P AND
                                             Baa2 BY MOODY'S    Baa3 BY MOODY'S    Ba1 BY MOODY'S  Ba2 BY MOODY'S
-----------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>               <C>               <C>               <C>             <C>               <C>
BASE RATE APPLICABLE            0 bps             0 bps             15 bps            62.5 bps        87.5 bps          100 bps
MARGIN
-----------------------------------------------------------------------------------------------------------------------------------
LIBOR APPLICABLE MARGIN        100 bps           125 bps            150 bps           225 bps         275 bps           325 bps
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

         bps = basis points per annum
(1)      At any time the Debt Ratings are split between S&P and Moody's, the
         Pricing Level in which the lower rating falls should govern.

<PAGE>

                                                                       EXHIBIT A
                                                      TO REIMBURSEMENT AGREEMENT

                                     FORM OF
                          IRREVOCABLE LETTER OF CREDIT

                                  No. [______]

                    BAYERISCHE LANDESBANK INTERNATIONAL S.A.

                                December 15, 1999

Collins Trust I
  as Owner Lessor
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001

         Attn:  Corporate Trust Administration

Ladies and Gentlemen:

         1. The Bank hereby establishes, at the request and for the account of
the Account Party, in favor of the Beneficiary to support the certain
obligations of the Account Party to Collins Holdings under the Facility Sublease
and the correlative obligations of Collins Holdings to Owner Lessor under the
Facility Lease, this Irrevocable Letter of Credit in the maximum amount of three
million eight hundred seventy thousand U.S. Dollars and zero Cents
(U.S.$3,870,000.00), effective immediately and expiring on the Expiration Date.

         2. As used herein, the following terms have the following meanings:

         A. "ACCOUNT PARTY" means Midwest Generation, LLC.

                  B. "APA" means the Asset Purchase Agreement dated as of
         December 15, 1999 (as the same may be amended, supplemented or
         otherwise modified from time to time) among Midwest Funding LLC, CXC
         Incorporated (the "SECURITIZATION COMPANY"), Citibank, N.A., as agent,
         each of the financial institutions party thereto as "Purchasers" (the
         "PURCHASERS") and Citicorp North America, Inc., as operating agent for
         the Securitization Company and as RCE Agent.

                  C. "BANK" means Bayerische Landesbank International S.A.

                  D. "BENEFICIARY" means (i) initially, the Owner Lessor and
         (ii) after giving effect to the transfer and assignment by the Owner
         Lessor of all of its right, title and interest in, to and under this
         Letter of Credit as collateral security for the obligations of the
         Owner Lessor under, and as provided in, the RCE Reimbursement Agreement
         on the

<PAGE>

                                       2

         date hereof to Bayerische Landesbank Girozentrale, Bayerische
         Landesbank Girozentrale.

                  E. "BUSINESS DAY" means any day except a Saturday, Sunday or
         legal holiday in New York City, New York or a day on which banks in New
         York City, New York, Wilmington, Delaware or Luxembourg are authorized
         or required by law or executive order to close.

                  F. "COLLINS HOLDINGS" means Collins Holdings EME, LLC.

                  G. "EXPIRATION DATE" means December 15, 2004.

                  H. "FACILITY LEASE" means the Facility Lease Agreement (TI),
         dated as of December 15, 1999, between the Owner Lessor and Collins
         Holdings, as the same may be from time to time amended, supplemented,
         amended and restated, or otherwise modified and in effect from time to
         time.

                  I. "FACILITY SUBLEASE" means, the Facility Sublease Agreement
         (TI), dated as of December 15, 1999 between Collins Holdings and the
         Account Party, as the same may be from time to time amended,
         supplemented, amended and restated, or otherwise modified and in effect
         from time to time.

                  J. "LEASE DEFAULT" means, with respect to the Facility Lease,
         any event which with the passage of time or the giving of notice would
         become a Lease Event of Default thereunder.

                  K. "LEASE EVENT OF DEFAULT" means, with respect to the
         Facility Lease, a Lease Event of Default as such term is defined
         thereunder.

                  L. "LETTER OF CREDIT" means this Irrevocable Letter of Credit
         No. [_________] issued by the Bank.

                  M. "MAXIMUM AMOUNT" means three million eight hundred seventy
         thousand U.S. Dollars and zero Cents (U.S.$3,870,000.00).

                  N. "OWNER LESSOR" means Collins Trust (I), a Delaware business
         trust, together with its successor and assigns.

                  O. "RATING AGENCY" means each of Moody's Investors Service,
         Inc. and Standard & Poor's Ratings Services, a division of The McGraw
         Hill Companies, Inc.

                  P. "RCE AGENT" means Citicorp North America, Inc., a Delaware
         corporation, in its capacity as agent for the Purchasers and the
         Securitization Company.

                  Q. "RCE REIMBURSEMENT AGREEMENT" means the Reimbursement
         Agreement dated as of December 15, 1999 between the Owner Lessor and
         Bayerische Landesbank Girozentrale.

                  R. "RCE LETTER OF CREDIT" shall mean that certain Irrevocable
         Letter of Credit issued by Bayerische Landesbank Girozentrale in favor
         of the RCE Agent for the account of the Owner Lessor.

         3. Partial drawings are permitted hereunder. The Bank hereby
irrevocably authorizes the Beneficiary to draw on the Bank, from time to time,
in accordance with the terms

<PAGE>

                                       3

and conditions hereinafter set forth, in amounts not exceeding, in the
aggregate, the Maximum Amount. The Bank shall pay such drawings with its own
funds. Except as expressly stated herein, this undertaking is not subject to any
agreement, condition or qualification.

         4. Only the Beneficiary may make drawings under this Letter of Credit.
Upon payment by the Bank of one or more drawings that, in the aggregate, are
equal to the Maximum Amount, the Bank shall be fully discharged from its
obligations under this Letter of Credit, and the Bank shall not thereafter be
obligated to make any further payment under this Letter of Credit to the
Beneficiary or to any other person.

         5. Funds under this Letter of Credit will be made available to the
Beneficiary against the Beneficiary's certificate or certificates signed by the
Owner Lessor in the form of Annex 1 hereto, appropriately completed, and may be
delivered by telecopy transmission to telecopy number (00352) 42434-3399, or
delivered in person or by mail or courier to the Bank's offices located at 3,
Rue Jean Monnet, L-2180 Luxembourg or at any other office in New York City that
may be designated by the Bank in a written notice delivered to the Beneficiary.

         6. Each such certificate referred to in paragraph 5 above shall be
dated on or within three Business Days prior to the date of presentation. Upon
receipt by the Bank of an appropriately completed certificate in conformity with
the terms and conditions of this Letter of Credit, at or before 5:00 p.m., New
York City time, on or before the Expiration Date, the Bank will honor the same
(to the extent required by this Letter of Credit) in accordance with the payment
instructions of the Beneficiary to the Bank by 4:00 p.m., New York City time, on
the Business Day following receipt of such certificate by the Bank; PROVIDED
that if such certificate is received prior to 11:00 a.m., New York City time, on
a Business Day, the Bank shall make its payment in immediately available funds
by 4:00 p.m., New York City time, on such Business Day.

         7. This Letter of Credit shall automatically terminate on the
Expiration Date; PROVIDED, HOWEVER, that if the Bank's business is interrupted
or suspended on the Expiration Date for any reason, this Letter of Credit shall
automatically terminate on the date 21 days immediately after the Bank's
resumption of business.

         8. THIS LETTER OF CREDIT SHALL BE SUBJECT TO AND GOVERNED BY THE
UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION),
(INTERNATIONAL CHAMBER OF COMMERCE, PARIS, FRANCE PUBLICATION NO. 500) (AND ANY
SUCCESSOR PUBLICATIONS).

         9. The right, title and interest of the Beneficiary in, to and under
this Letter of Credit are transferable and assignable in their entirety (but not
in part) to any transferee or assignee designated by the Beneficiary. The Owner
Lessor as original beneficiary has transferred and assigned all of its right,
title and interest in, to and under this Letter of Credit to Bayerische
Landesbank Girozentrale having an address at 560 Lexington Avenue, New York, NY
10022 as collateral security for the Owner Lessor's obligations under the RCE
Reimbursement Agreement.

         10. Communications with respect to this Letter of Credit shall be in
writing and shall be addressed to the Bank at 3, Rue Jean Monnet, L-2180
Luxembourg (or any other office in New York City which may be designated by the
Bank in a written notice delivered to the Beneficiary, and the Account Party),
specifically referring to the number of this Letter of Credit.

<PAGE>

                                       4

         11. This Letter of Credit sets forth in full the Bank's undertakings,
and the Bank's undertakings hereunder shall not in any way be modified, amended,
amplified or limited by reference to any document, instrument or agreement
referred to herein except for the certificates referred to herein, and any such
reference shall not be deemed to incorporate herein by reference any document,
instrument or agreement except for such certificates.

                                          Very truly yours,

                                          BAYERISCHE LANDESBANK
                                          INTERNATIONAL S.A.

                                          By:
                                              ----------------------------------
                                                 Name:
                                                 Title:

                                          By:
                                              ----------------------------------
                                                 Name:
                                                 Title:

<PAGE>

                                                                      ANNEX 1 TO
                                                                LETTER OF CREDIT

                            BENEFICIARY'S CERTIFICATE

Re: Irrevocable Letter of Credit No. [_______________] (the "Letter of Credit")
dated December 15, 1999, issued by Bayerische Landesbank International S.A. at
the request and for the account of the Account Party identified therein.

         Reference is made to the Letter of Credit. Any capitalized term used
herein and not defined herein has its respective meaning as set forth in the
Letter of Credit.

         The Beneficiary hereby demands payment in the amount of
U.S.$____________ ([insert amount in words)] U.S. Dollars. This is a drawing
under the Letter of Credit. The Beneficiary hereby certifies to the Bank:

         (1)      The Beneficiary is entitled to draw under this Letter of
                  Credit the amount specified in this Certificate because [both
                  (i) a drawing against the RCE Letter of Credit has been made
                  in an amount at least equal to the amount of the drawing
                  requested hereby and (ii) a Lease Default that is a payment or
                  bankruptcy default has occurred and is continuing.] [or]
                  [(A)(i) the rating of the unsecured debt securities of
                  Bayerische Landesbank Girozentrale shall be downgraded below
                  [P-1 by Moody's or the higher of A-1] or the then current
                  rating of the Securitization Company's commercial paper by
                  S&P, or (ii) Bayerische Landesbank Girozentrale has been
                  mentioned with negative implications in "CreditWatch" by S&P
                  or a similar publication list by S&P or Moody's and the
                  Account Party has failed to arrange for the issuance of a
                  substitute irrevocable letter of credit in the then available
                  amount under this Letter of Credit by a bank whose unsecured
                  debt securities are rated by the Rating Agencies as high as
                  the ratings stated in clause (i) above and which is not a bank
                  with respect to which clause (ii) above would be applicable
                  and (B) a drawing against the RCE Letter of Credit has been
                  made.] *Delete as applicable.

         (2)      The amount of the drawing made by this Certificate, together
                  with all other amounts previously drawn by the Beneficiary
                  under the Letter of Credit, does not exceed the Maximum
                  Amount.

         The Beneficiary hereby requests that payment under the Letter of Credit
by the Bank be made by wire transfer of federal funds to the Beneficiary's
Account No. ______ at [Name of Bank] in [Name of City and State in the United
States].

<PAGE>

         IN WITNESS WHEREOF, the Beneficiary has executed and delivered this
Certificate as of the ____ day of ___________, _____

                                         [BENEFICIARY]

                                          By:
                                              ----------------------------------
                                                Name:
                                                Title:

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