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                                                                  Exhibit 10.21

                                BROOKTROUT, INC.

                          EXECUTIVE RETENTION AGREEMENT

        This Executive Retention Agreement, by and between Brooktrout, Inc., a
Massachusetts corporation (the "Company"), and R. Andrew O'Brien (the
"Executive") is made as of March 16, 2005 (the "Effective Date").

        WHEREAS, the Company recognizes that, as is the case with many
publicly-held corporations, the possibility of a change in control of the
Company exists and that such possibility, and the uncertainty and questions that
it may raise among key personnel, may result in the departure or distraction of
key personnel to the detriment of the Company and its stockholders; and

        WHEREAS, the Board of Directors of the Company (the "Board") has
determined that appropriate steps should be taken to reinforce and encourage the
continued employment and dedication of certain of the Company's key personnel
without distraction from the possibility of a change in control of the Company
and related events and circumstances;

        NOW, THEREFORE, as an inducement for and in consideration of the
Executive remaining in its employ, the Company agrees that the Executive shall
receive the severance benefits set forth in this Agreement in the event the
Executive's employment with the Company is terminated under the circumstances
described below subsequent to a Change in Control (as defined in Section 1.1).

        1. KEY DEFINITIONS.

        As used herein, the following terms shall have the following respective
meanings:

                1.1.    "CHANGE IN CONTROL" means an event or occurrence set
        forth in any one or more of subsections (a) through (e) below (including
        an event or occurrence that constitutes a Change in Control under one of
        such subsections but is specifically exempted from another such
        subsection):

                        (a)  the acquisition by an individual, entity or group
                             (within the meaning of Section 13(d)(3) or 14(d)(2)
                             of the Securities Exchange Act of 1934, as amended
                             (the "Exchange Act")) (a "Person") of beneficial
                             ownership of any capital stock of the Company if,
                             after such acquisition, such Person beneficially
                             owns (within the meaning of Rule 13d-3 promulgated
                             under the Exchange Act) at least 25%, but less than
                             35%, of either (x) the then-outstanding shares of
                             common stock of the Company (the "Outstanding
                             Company Common Stock") or (y) the combined voting
                             power of the then-outstanding securities of the
                             Company entitled to vote generally in the election
                             of directors (the "Outstanding Company Voting
                             Securities"); PROVIDED, HOWEVER, that for purposes
                             of this subsection (a), the following acquisitions
                             shall not constitute a Change in Control:

                             (i)   any acquisition directly from the Company
                                   (excluding an acquisition pursuant to the
                                   exercise, conversion or exchange of any
                                   security exercisable for, convertible into or
                                   exchangeable for common stock or voting
                                   securities of the Company, unless the Person
                                   exercising, converting or exchanging such
                                   security acquired such security directly from
                                   the Company or an underwriter or agent of the
                                   Company),

                             (ii)  any acquisition by the Company,

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                             (iii) any acquisition by any employee benefit plan
                                   (or related trust) sponsored or maintained by
                                   the Company or any corporation controlled by
                                   the Company, or

                             (iv)  any acquisition by any corporation pursuant
                                   to a transaction that complies with clauses
                                   (i) and (ii) of subsection (d) of this
                                   Section 1.1;

                        (b)  the acquisition by a Person of beneficial ownership
                             of any capital stock of the Company if, after such
                             acquisition, such Person beneficially owns (within
                             the meaning of Rule 13d-3 promulgated under the
                             Exchange Act) 35% or more of either (x) the
                             Outstanding Company Common Stock or (y) the
                             Outstanding Company Voting Securities;

                        (c)  such time as the Continuing Directors do not
                             constitute a majority of the Board (or, if
                             applicable, the board of directors of a successor
                             corporation to the Company), where the term
                             "Continuing Director" means at any date a member of
                             the Board:

                             (i)   who was a member of the Board on the date of
                                   the execution of this Agreement or;

                             (ii)  who was nominated or elected subsequent to
                                   such date by at least a majority of the
                                   directors who were Continuing Directors at
                                   the time of such nomination or election or
                                   whose election to the Board was recommended
                                   or endorsed by at least a majority of the
                                   directors who were Continuing Directors at
                                   the time of such nomination or election;
                                   PROVIDED, HOWEVER, that there shall be
                                   excluded from this clause (ii) any individual
                                   whose initial assumption of office occurred
                                   as a result of an actual or threatened
                                   election contest with respect to the election
                                   or removal of directors or other actual or
                                   threatened solicitation of proxies or
                                   consents, by or on behalf of a person other
                                   than the Board;

                        (d)  the consummation of a merger, consolidation,
                             reorganization, recapitalization or statutory share
                             exchange involving the Company or a sale or other
                             disposition of all or substantially all of the
                             assets of the Company in one or a series of
                             transactions (a "Business Combination"), unless,
                             immediately following such Business Combination,
                             each of the following two conditions is satisfied:

                             (i)   all or substantially all of the individuals
                                   and entities who were the beneficial owners
                                   of the Outstanding Company Common Stock and
                                   Outstanding Company Voting Securities
                                   immediately prior to such Business
                                   Combination beneficially own, directly or
                                   indirectly, more than 50% of the
                                   then-outstanding shares of common stock and
                                   the combined voting power of the
                                   then-outstanding securities entitled to vote
                                   generally in the election of directors,
                                   respectively, of the resulting or acquiring
                                   corporation in such Business Combination
                                   (which shall include a corporation that as a
                                   result of such transaction owns the Company
                                   or substantially all of the Company's assets
                                   either directly or through one or more
                                   subsidiaries) (such resulting or acquiring
                                   corporation is referred to herein as the
                                   "Acquiring Corporation") in substantially the
                                   same proportions as their ownership,
                                   immediately prior to such Business
                                   Combination, of the Outstanding Company
                                   Common Stock and Outstanding Company Voting
                                   Securities, respectively; and

                             (ii)  no Person (excluding any employee benefit
                                   plan (or related trust) maintained or
                                   sponsored by the Company or by the Acquiring
                                   Corporation) beneficially

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                                   owns, directly or indirectly, 25% or more of
                                   the then outstanding shares of common stock
                                   of the Acquiring Corporation, or of the
                                   combined voting power of the then-outstanding
                                   securities of such corporation entitled to
                                   vote generally in the election of directors
                                   (except to the extent that such ownership
                                   existed prior to the Business Combination);
                                   or

                        (e)  approval by the stockholders of the Company of a
                             complete liquidation or dissolution of the Company.

                1.2.    "CHANGE IN CONTROL DATE" means the first date during the
        Term (as defined in Section 2) on which a Change in Control occurs.
        Anything in this Agreement to the contrary notwithstanding, if:

                        (a)  a Change in Control occurs,

                        (b)  the Executive's employment with the Company is
                             terminated prior to the date on which the Change in
                             Control occurs, and

                        (c)  it is reasonably demonstrated by the Executive that
                             such termination of employment (i) was at the
                             request of a third party who has taken steps
                             reasonably calculated to effect a Change in Control
                             or (ii) otherwise arose in connection with or in
                             anticipation of a Change in Control,

        then for all purposes of this Agreement the "Change in Control Date"
        shall mean the date immediately prior to the date of such termination of
        employment.

                1.3.    "CAUSE" means:

                        (a)  the Executive's willful and continued failure to
                             substantially perform the Executive's reasonable
                             assigned duties as an officer of the Company (other
                             than any such failure resulting from incapacity due
                             to physical or mental illness or any failure after
                             the Executive gives notice of termination for Good
                             Reason), which failure is not cured within 30 days
                             after a written demand for substantial performance
                             is received by the Executive from the Board that
                             specifically identifies the manner in which the
                             Board believes the Executive has not substantially
                             performed the Executive's duties; or

                        (b)  the Executive's willful engagement in illegal
                             conduct or gross misconduct that is materially and
                             demonstrably injurious to the Company.

        For purposes of this Section 1.3, no act or failure to act by the
        Executive shall be considered "willful" unless it is done, or omitted to
        be done, in bad faith and without reasonable belief that the Executive's
        action or omission was in the best interests of the Company.

                1.4.    "GOOD REASON" means the occurrence, without the
        Executive's written consent, of any of the following events or
        circumstances:

                        (a)  the assignment to the Executive of duties that are
                             inconsistent in any material respect with the
                             Executive's position (including status, offices,
                             titles and reporting requirements), authority or
                             responsibilities in effect immediately prior to the
                             earliest to occur of:

                             (i)   the Change in Control Date,

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                             (ii)  the date of the execution by the Company of
                                   the initial written agreement or instrument
                                   providing for the Change in Control, and

                             (iii) the date of the adoption by the Board of
                                   Directors of a resolution providing for the
                                   Change in Control (with the earliest to occur
                                   of such dates referred to herein as the
                                   "Measurement Date"),

                             or any other action or omission by the Company that
                             results in a material diminution in such position,
                             authority or responsibilities;

                        (b)  a reduction in the Executive's annual base salary
                             as in effect on the Measurement Date or as the same
                             was or may be increased thereafter from time to
                             time;

                        (c)  the failure by the Company to:

                             (i)   continue in effect any material compensation
                                   or benefit plan or program (including any
                                   life insurance, medical, health and accident
                                   or disability plan and any vacation or
                                   automobile program or policy) (a "Benefit
                                   Plan") in which the Executive participates or
                                   that is applicable to the Executive
                                   immediately prior to the Measurement Date,
                                   unless an equitable arrangement (embodied in
                                   an ongoing substitute or alternative plan)
                                   has been made with respect to such plan or
                                   program,

                             (ii)  continue the Executive's participation
                                   therein (or in such substitute or alternative
                                   plan) on a basis not materially less
                                   favorable, both in terms of the amount of
                                   benefits provided and the level of the
                                   Executive's participation relative to other
                                   participants, than the basis existing
                                   immediately prior to the Measurement Date, or

                             (iii) award cash bonuses to the Executive in
                                   amounts and in a manner substantially
                                   consistent with past practice in light of the
                                   Company's financial performance;

                        (d)  a change by the Company in the location at which
                             the Executive performs the Executive's principal
                             duties for the Company to a new location that is
                             both:

                             (i)   outside a radius of 35 miles from the
                                   Executive's principal residence immediately
                                   prior to the Measurement Date, and

                             (ii)  more than 20 miles from the location at which
                                   the Executive performed the Executive's
                                   principal duties for the Company immediately
                                   prior to the Measurement Date,

                             or a requirement by the Company that the Executive
                             travel on Company business to a substantially
                             greater extent than required immediately prior to
                             the Measurement Date;

                        (e)  the failure of the Company to obtain the agreement
                             from any successor to the Company to assume and
                             agree to perform this Agreement, as required by
                             Section 6.1;

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                        (f)  any failure of the Company to pay or provide to the
                             Executive any portion of the Executive's
                             compensation or benefits due under any Benefit Plan
                             within seven days of the date such compensation or
                             benefits are due; or

                        (g)  any material breach by the Company of this
                             Agreement or any employment agreement with the
                             Executive.

        Notwithstanding the occurrence of any such event or circumstance, such
        occurrence shall not be deemed to constitute Good Reason if, prior to
        the Date of Termination specified in the Notice of Termination (each as
        defined in Section 3.2(a)) given by the Executive in respect thereof,
        such event or circumstance has been fully corrected and the Executive
        has been reasonably compensated for any losses or damages resulting
        therefrom, PROVIDED that such right of correction by the Company shall
        only apply to the first Notice of Termination for Good Reason given by
        the Executive. For purposes of this Agreement, any good faith
        determination of "Good Reason" made by the Executive shall be
        conclusive, binding and final. The Executive's right to terminate the
        Executive's employment for Good Reason shall not be affected by the
        Executive's incapacity due to physical or mental illness.

                1.5.    "DISABILITY" means the Executive's absence from the
        full-time performance of the Executive's duties with the Company for 180
        consecutive calendar days as a result of incapacity due to mental or
        physical illness that is determined to be total and permanent by a
        physician selected by the Company or its insurers and acceptable to the
        Executive or the Executive's legal representative.

                1.6.    "QUALIFYING OPTION" means an outstanding stock option
        agreement granted, either before or after the date hereof, to the
        Executive under any stock option or incentive plan of the Company,
        whether in existence on the date hereof or adopted by the Company after
        the date hereof, which agreement provides (either by its terms or by
        incorporation from such plan) for the acceleration of vesting, in whole
        or in part, upon a change-in-control, sale or similar event, as defined
        for purposes thereof (with respect to such Qualifying Option, a
        "QUALIFYING OPTION EVENT"), regardless of whether such Qualifying Option
        Event constitutes a Change in Control.

        2. TERM OF AGREEMENT.

        This Agreement, and all rights and obligations of the parties hereunder,
shall take effect upon the Effective Date and shall expire upon the first to
occur of:

        (a)     the expiration of the Term (as defined below) if a Change in
                Control has not occurred during the Term,

        (b)     the termination of the Executive's employment with the Company
                prior to the Change in Control Date,

        (c)     the date 12 months after the Change in Control Date, if the
                Executive is still employed by the Company as of such later
                date, or

        (d)     the fulfillment by the Company of all of its obligations under
                Sections 4 and 5.2 if the Executive's employment with the
                Company terminates within 12 months following the Change in
                Control Date.

"Term" shall mean the period commencing as of the Effective Date and continuing
in effect through April 1, 2008; PROVIDED, HOWEVER, that commencing on April 1,
2008 and each April 1st thereafter, the Term shall be automatically extended for
one additional year unless, not later than 90 days prior to the

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scheduled expiration of the Term (or any extension thereof), the Company shall
have given the Executive written notice that the Term will not be extended.

        3. EMPLOYMENT STATUS; TERMINATION FOLLOWING CHANGE IN CONTROL.

                3.1.    NOT AN EMPLOYMENT CONTRACT. The Executive acknowledges
        that this Agreement does not constitute a contract of employment or
        impose on the Company any obligation to retain the Executive as an
        employee and that this Agreement does not prevent the Executive from
        terminating employment at any time. If the Executive's employment with
        the Company terminates for any reason and subsequently a Change in
        Control shall occur, the Executive shall not be entitled to any benefits
        hereunder except as otherwise provided pursuant to Section 1.2.

                3.2.    TERMINATION OF EMPLOYMENT.

                        (a) If the Change in Control Date occurs during the
                Term, any termination of the Executive's employment by the
                Company or by the Executive within 12 months following the
                Change in Control Date (other than due to the death of the
                Executive) shall be communicated by a written notice to the
                other party hereto (the "Notice of Termination"), given in
                accordance with Section 7. Any Notice of Termination shall:

                             (i)   indicate the specific termination provision
                                   (if any) of this Agreement relied upon by the
                                   party giving such notice,

                             (ii)  to the extent applicable, set forth in
                                   reasonable detail the facts and circumstances
                                   claimed to provide a basis for termination of
                                   the Executive's employment under the
                                   provision so indicated and

                             (iii) specify the Date of Termination (as defined
                                   below).

                The effective date of an employment termination (the "Date of
                Termination") shall be the close of business on the date
                specified in the Notice of Termination (which date may not be
                less than 15 days or more than 120 days after the date of
                delivery of such Notice of Termination), in the case of a
                termination other than one due to the Executive's death, or the
                date of the Executive's death, as the case may be. In the event
                the Company fails to satisfy the requirements of Section 3.2(a)
                regarding a Notice of Termination, the purported termination of
                the Executive's employment pursuant to such Notice of
                Termination shall not be effective for purposes of this
                Agreement.

                        (b)  The failure by the Executive or the Company to set
                forth in the Notice of Termination any fact or circumstance that
                contributes to a showing of Good Reason or Cause shall not waive
                any right of the Executive or the Company, respectively,
                hereunder or preclude the Executive or the Company,
                respectively, from asserting any such fact or circumstance in
                enforcing the Executive's or the Company's rights hereunder.

                        (c)  Any Notice of Termination for Cause given by the
                Company must be given within 90 days of the occurrence of the
                event(s) or circumstance(s) that constitute(s) Cause. Prior to
                any Notice of Termination for Cause being given (and prior to
                any termination for Cause being effective), the Executive shall
                be entitled to a hearing before the Board of Directors of the
                Company at which the Executive may, at the Executive's election,
                be represented by counsel and at which the Executive shall have
                a reasonable opportunity to be heard. Such hearing shall be held
                on not less than 15 days prior written notice to the Executive
                stating the Board of Directors' intention to terminate the
                Executive for Cause and stating in detail the particular

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                event(s) or circumstance(s) that the Board of Directors believes
                constitutes Cause for termination.

                        (d)  Any Notice of Termination for Good Reason given by
                the Executive must be given within 60 days of the occurrence of
                the event(s) or circumstance(s) that constitute(s) Good Reason.

        4. BENEFITS TO EXECUTIVE.

                4.1.    COMPENSATION AND STOCK ACCELERATION. If the Change in
        Control Date occurs during the Term and the Executive's employment with
        the Company terminates within 12 months following the Change in Control
        Date, the Executive shall be entitled to the following benefits:

                        (a)  If the Executive's employment with the Company is
                terminated by the Company (other than for Cause, Disability or
                death) or by the Executive for Good Reason within 12 months
                following the Change in Control Date, then the Executive shall
                be entitled to the following benefits:

                             (i)   the Company shall pay to the Executive in a
                                   lump sum in cash within 30 days after the
                                   Date of Termination the aggregate of the
                                   following amounts:

                                   (1)  the sum of (A) the Executive's base
                                        salary through the Date of Termination,
                                        (B) the product of (x) the annual bonus
                                        paid or payable (including any bonus or
                                        portion thereof that has been earned but
                                        deferred) for the most recently
                                        completed fiscal year and (y) a
                                        fraction, the numerator of which is the
                                        number of days in the current fiscal
                                        year through the Date of Termination,
                                        and the denominator of which is 365 and
                                        (C) any accrued vacation pay, in each
                                        case to the extent not previously paid;
                                        and

                                   (2)  the amount equal to the sum of (x) the
                                        Executive's highest annual base salary
                                        during the five-year period prior to the
                                        Change in Control Date and (y) the
                                        Executive's highest annual bonus during
                                        the five-year period prior to the Change
                                        in Control Date.

                             (ii)  for 12 months after the Date of Termination,
                                   or such longer period as may be provided by
                                   the terms of the appropriate plan, program,
                                   practice or policy, the Company shall
                                   continue to provide benefits to the Executive
                                   and the Executive's family at least equal to
                                   those that would have been provided to them
                                   if the Executive's employment had not been
                                   terminated, in accordance with the applicable
                                   Benefit Plans in effect on the Measurement
                                   Date or, if more favorable to the Executive
                                   and the Executive's family, in effect
                                   generally at any time thereafter with respect
                                   to other peer executives of the Company and
                                   its affiliated companies; PROVIDED, HOWEVER,
                                   that if the Executive becomes reemployed with
                                   another employer and is eligible to receive a
                                   particular type of benefits (e.g., health
                                   insurance benefits) from such employer on
                                   terms at least as favorable to the Executive
                                   and the Executive's family as those being
                                   provided by the Company, then the Company
                                   shall no longer be required to provide those
                                   particular benefits to the Executive and the
                                   Executive's family;

                             (iii) to the extent not previously paid or
                                   provided, the Company shall timely pay or
                                   provide to the Executive any other amounts or
                                   benefits required to be paid or

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                                   provided or that the Executive is eligible to
                                   receive following the Executive's termination
                                   of employment under any plan, program,
                                   policy, practice, contract or agreement of
                                   the Company and its affiliated companies; and

                             (iv)  for purposes of determining eligibility (but
                                   not the time of commencement of benefits) of
                                   the Executive for retiree benefits to which
                                   the Executive is entitled, the Executive
                                   shall be considered to have remained employed
                                   by the Company until 12 months after the Date
                                   of Termination.

                             (v)   if the Change in Control relating to such
                                   Change in Control Date did not constitute a
                                   Qualifying Option Event under any Qualifying
                                   Option held by the Executive, then:

                                   (1)  any such Qualifying Option that provides
                                        for acceleration of vesting in full upon
                                        a Qualifying Option Event shall become
                                        immediately exercisable in full as of
                                        the Date of Termination; and

                                   (2)  the vesting of any other such Qualifying
                                        Option shall accelerate in part, with
                                        the number of shares so vesting being
                                        equal to the number of shares that would
                                        have vested as of the date of the
                                        Qualifying Option Event, assuming such
                                        Change in Control would have constituted
                                        a Qualifying Option Event.

                        (b)  If the Executive voluntarily terminates the
                Executive's employment with the Company within 12 months
                following the Change in Control Date, excluding a termination
                for Good Reason, or if the Executive's employment with the
                Company is terminated by reason of the Executive's death or
                Disability within 12 months following the Change in Control
                Date, then the Company shall (i) pay the Executive (or the
                Executive's estate, if applicable), in a lump sum in cash within
                30 days after the Date of Termination, the amounts due pursuant
                to clauses (A), (B) and (C) of Section 4.1(a)(i)(1) and (ii)
                timely pay or provide to the Executive the amounts due pursuant
                to Section 4.1(iii).

                        (c)  If the Company terminates the Executive's
                employment with the Company for Cause within 12 months following
                the Change in Control Date, then the Company shall (i) pay the
                Executive, in a lump sum in cash within 30 days after the Date
                of Termination, the sum of the Executive's annual base salary
                through the Date of Termination, to the extent not previously
                paid, and (ii) timely pay or provide to the Executive the
                amounts due pursuant to Section 4.1(iii)

                4.2.    TAXES.

                        (a)  In the event that the Company undergoes a "Change
                in Ownership or Control" (as defined below), the Company shall,
                within 30 days after each date on which the Executive becomes
                entitled to receive (whether or not then due) a Contingent
                Compensation Payment (as defined below) relating to such Change
                in Ownership or Control, determine and notify the Executive
                (with reasonable detail regarding the basis for its
                determinations) (i) which of the payments or benefits due to the
                Executive (under this Agreement or otherwise) following such
                Change in Ownership or Control constitute Contingent
                Compensation Payments, (ii) the amount, if any, of the excise
                tax (the "Excise Tax") payable pursuant to Section 4999 of the
                Internal Revenue Code of 1986, as amended (the "Code"), by the
                Executive with respect to such Contingent Compensation Payment
                and (iii) the amount of the Gross-Up Payment (as defined below)
                due to the Executive with respect to such Contingent
                Compensation Payment.

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                Within 30 days after delivery of such notice to the Executive,
                the Executive shall deliver a response to the Company (the
                "Executive Response") stating either (A) that the Executive
                agrees with the Company's determination pursuant to the
                preceding sentence or (B) that the Executive disagrees with such
                determination, in which case the Executive shall indicate which
                payment and/or benefits should be characterized as a Contingent
                Compensation Payment, the amount of the Excise Tax with respect
                to such Contingent Compensation Payment and the amount of the
                Gross-Up Payment due to the Executive with respect to such
                Contingent Compensation Payment. The amount and characterization
                of any item in the Executive Response shall be final; provided,
                however, that in the event that the Executive fails to deliver
                an Executive Response on or before the required date, the
                Company's initial determination shall be final. Within 90 days
                after the due date of each Contingent Compensation Payment to
                the Executive, the Company shall pay to the Executive, in cash,
                the Gross-Up Payment with respect to such Contingent
                Compensation Payment, in the amount determined pursuant to this
                Section 4.2(a).

                        (b)  For purposes of this Section 4.2, the following
                terms shall have the following respective meanings:

                             (i)   "Change in Ownership or Control" shall mean a
                                   change in the ownership or effective control
                                   of the Company or in the ownership of a
                                   substantial portion of the assets of the
                                   Company determined in accordance with Section
                                   280G(b)(2) of the Code.

                             (ii)  "Contingent Compensation Payment" shall mean
                                   any payment (or benefit) in the nature of
                                   compensation that is made or made available
                                   (under this Agreement, the terms of any stock
                                   option agreement (whether outstanding as of
                                   the date of this agreement or granted
                                   subsequently, even if the vesting of options
                                   granted thereunder may be accelerated by an
                                   event or occurrence that constitutes a Change
                                   in Control for purposes of this agreement),
                                   or otherwise) to a "disqualified individual"
                                   (as defined in Section 280G(c) of the Code)
                                   and that is contingent (within the meaning of
                                   Section 280G(b)(2)(A)(i) of the Code) on a
                                   Change in Ownership or Control of the
                                   Company.

                             (iii) "Gross-Up Payment" shall mean an amount equal
                                   to the sum of (i) the amount of the Excise
                                   Tax payable with respect to a Contingent
                                   Compensation Payment and (ii) the amount
                                   necessary to pay all additional taxes imposed
                                   on (or economically borne by) the Executive
                                   (including the Excise Taxes, state and
                                   federal income taxes and all applicable
                                   employment taxes) attributable to the receipt
                                   of such Gross-Up Payment. For purposes of the
                                   preceding sentence, all taxes attributable to
                                   the receipt of the Gross-Up Payment shall be
                                   computed assuming the application of the
                                   maximum tax rates provided by law.

                4.3.    MITIGATION. The Executive shall not be required to
        mitigate the amount of any payment or benefits provided for in this
        Section 4 by seeking other employment or otherwise. Further, except as
        provided in Section 4.1(a)(ii), the amount of any payment or benefits
        provided for in this Section 4 shall not be reduced by any compensation
        earned by the Executive as a result of employment by another employer,
        by retirement benefits, by offset against any amount claimed to be owed
        by the Executive to the Company or otherwise.

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        5. DISPUTES.

                5.1.    SETTLEMENT OF DISPUTES; ARBITRATION. All claims by the
        Executive for benefits under this Agreement shall be directed to and
        determined by the Board of Directors of the Company and shall be in
        writing. Any denial by the Board of Directors of a claim for benefits
        under this Agreement shall be delivered to the Executive in writing and
        shall set forth the specific reasons for the denial and the specific
        provisions of this Agreement relied upon. The Board of Directors shall
        afford a reasonable opportunity to the Executive for a review of the
        decision denying a claim. Any further dispute or controversy arising
        under or in connection with this Agreement shall be settled exclusively
        by arbitration in Boston, Massachusetts, in accordance with the rules of
        the American Arbitration Association then in effect. Judgment may be
        entered on the arbitrator's award in any court having jurisdiction.

                5.2.    EXPENSES. The Company agrees to pay as incurred, to the
        full extent permitted by law, all legal, accounting and other fees and
        expenses that the Executive may reasonably incur as a result of any
        claim or contest (regardless of the outcome thereof) by the Company, the
        Executive or others regarding the validity or enforceability of, or
        liability under, any provision of this Agreement or any guarantee of
        performance thereof (including as a result of any contest by the
        Executive regarding the amount of any payment or benefits pursuant to
        this Agreement), plus in each case interest on any delayed payment at
        the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
        Code.

        6. SUCCESSORS.

                6.1.    SUCCESSOR TO COMPANY. The Company shall require any
        successor (whether direct or indirect, by purchase, merger,
        consolidation or otherwise) to all or substantially all of the business
        or assets of the Company expressly to assume and agree to perform this
        Agreement to the same extent that the Company would be required to
        perform it if no such succession had taken place. Failure of the Company
        to obtain an assumption of this Agreement at or prior to the
        effectiveness of any succession shall be a breach of this Agreement and
        shall constitute Good Reason if the Executive elects to terminate
        employment, except that for purposes of implementing the foregoing, the
        date on which any such succession becomes effective shall be deemed the
        Date of Termination. As used in this Agreement, "Company" shall mean the
        Company as defined above and any successor to its business or assets as
        aforesaid that assumes and agrees to perform this Agreement, by
        operation of law or otherwise.

                6.2.    SUCCESSOR TO EXECUTIVE. This Agreement shall inure to
        the benefit of and be enforceable by the Executive's personal or legal
        representatives, executors, administrators, successors, heirs,
        distributees, devisees and legatees. If the Executive should die while
        any amount would still be payable to the Executive or the Executive's
        family hereunder if the Executive had continued to live, all such
        amounts, unless otherwise provided herein, shall be paid in accordance
        with the terms of this Agreement to the executors, personal
        representatives or administrators of the Executive's estate.

        7. NOTICE.

        All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or
communication shall be sent either:

        (a)     by registered or certified mail, return receipt requested,
                postage prepaid, or

        (b)     prepaid via a reputable nationwide overnight courier service,

                                      -10-
<Page>

in each case addressed to the Company, at 250 First Avenue, Needham,
Massachusetts 02494, Attention: President, and to the Executive at the
Executive's address indicated on the signature page of this Agreement (or to
such other address as either the Company or the Executive may have furnished to
the other in writing in accordance herewith). Any such notice, instruction or
communication shall be deemed to have been delivered five business days after it
is sent by registered or certified mail, return receipt requested, postage
prepaid, or one business day after it is sent via a reputable nationwide
overnight courier service. Either party may give any notice, instruction or
other communication hereunder using any other means, but no such notice,
instruction or other communication shall be deemed to have been duly delivered
unless and until it actually is received by the party for whom it is intended.

        8. MISCELLANEOUS.

                8.1.    EMPLOYMENT BY SUBSIDIARY. For purposes of this
        Agreement, the Executive's employment with the Company shall not be
        deemed to have terminated solely as a result of the Executive continuing
        to be employed by a wholly owned subsidiary of the Company.

                8.2.    SEVERABILITY. The invalidity or unenforceability of any
        provision of this Agreement shall not affect the validity or
        enforceability of any other provision of this Agreement, which shall
        remain in full force and effect.

                8.3.    INJUNCTIVE RELIEF. The Company and the Executive agree
        that any breach of this Agreement by the Company is likely to cause the
        Executive substantial and irrevocable damage and therefore, in the event
        of any such breach, in addition to such other remedies that may be
        available, the Executive shall have the right to specific performance
        and injunctive relief.

                8.4.    GOVERNING LAW. The validity, interpretation,
        construction and performance of this Agreement shall be governed by the
        internal laws of the Commonwealth of Massachusetts, without regard to
        conflicts of law principles.

                8.5.    WAIVERS. No waiver by the Executive at any time of any
        breach of, or compliance with, any provision of this Agreement to be
        performed by the Company shall be deemed a waiver of that or any other
        provision at any subsequent time.

                8.6.    COUNTERPARTS. This Agreement may be executed in
        counterparts, each of which shall be deemed to be an original but both
        of which together shall constitute one and the same instrument.

                8.7.    TAX WITHHOLDING. Any payments provided for hereunder
        shall be paid net of any applicable tax withholding required under
        federal, state or local law.

                8.8.    ENTIRE AGREEMENT. This Agreement sets forth the entire
        agreement of the parties hereto in respect of the subject matter
        contained herein and supersedes all prior agreements, promises,
        covenants, arrangements, communications, representations or warranties,
        whether oral or written, by any officer, employee or representative of
        any party hereto in respect of the subject matter contained herein; and
        any prior agreement of the parties hereto in respect of the subject
        matter contained herein is hereby terminated and cancelled.
        Notwithstanding the foregoing, this Agreement shall not be deemed to
        supersede, in part or in whole, the terms of any stock option agreement,
        whether outstanding as of the date of this Agreement or granted
        subsequently, even if the vesting of options granted thereunder may be
        accelerated by an event or occurrence that constitutes a Change in
        Control for purposes of this Agreement.

                8.9.    CONSTRUCTION. The headings of the Sections of this
        Agreement are included only for convenience and shall not affect the
        meaning or interpretation of this Agreement. References herein

                                      -11-
<Page>

        to Sections shall mean such Sections of this Agreement, except as
        otherwise specified. The words "herein" and "hereof" and other words of
        similar import refer to this Agreement as a whole and not to any
        particular part of this Agreement. The word "including" as used herein
        shall not be construed so as to exclude any other thing not referred to
        or described.

                8.10.   AMENDMENTS. This Agreement may be amended or modified
        only by a written instrument executed by both the Company and the
        Executive.

                8.11.   EXECUTIVE'S ACKNOWLEDGEMENTS. The Executive acknowledges
        that the Executive:

                        (a)  has read this Agreement;

                        (b)  has been represented in the preparation,
                             negotiation, and execution of this Agreement by
                             legal counsel of the Executive's own choice or has
                             voluntarily declined to seek such counsel;

                        (c)  understands the terms and consequences of this
                             Agreement; and

                        (d)  understands that the law firm of Wilmer Cutler
                             Pickering Hale and Dorr LLP is acting as counsel to
                             the Company in connection with the transactions
                             contemplated by this Agreement, and is not acting
                             as counsel for the Executive.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first set forth above.

                                   BROOKTROUT, INC.

                                   By: /s/ Eric R. Giler
                                       -------------------------------------
                                       President and Chief Executive Officer

                                   /s/ R. Andrew O'Brien
                                   -----------------------------------------
                                   R. ANDREW O'BRIEN

                                   Address:

                                   6 Ashmont Road
                                   -----------------------------------------

                                   Waban, MA 02468
                                   -----------------------------------------

                                   -----------------------------------------

                                      -12-QuickLinks
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Exhibit 4.4.2    
    

Appendix A

to Participation

Agreement  

Definitions  

 
  APPENDIX A—DEFINITIONS    
    

GENERAL PROVISIONS  

        In this Appendix A and each Operative Document (as hereinafter defined), unless, otherwise provided herein or therein: 

	i.
	the
terms set forth in this Appendix A or in any such Operative Document shall have the meanings herein provided for and any term used in an Operative Document and
not defined therein or in this Appendix A but in another Operative Document shall have the meaning, herein or therein provided for in such other Operative Document;

	ii.
	any
term defined in this Appendix A by reference to another document, instrument or agreement shall continue to have the meaning ascribed thereto whether or not
such other document, instrument or agreement remains in effect;

	iii.
	words
importing the singular include the plural and vice versa;

	iv.
	words
importing a gender include any gender;

	v.
	a
reference to a part, clause, section, paragraph, article, party, annex, appendix, exhibit, schedule or other attachment to or in respect of an Operative Document is a
reference to a part, clause, section, paragraph, or article of, or a party, annex, appendix, exhibit, schedule or other attachment to, such Operative Document unless, in any such case, otherwise
expressly provided in any such Operative Document;

	vi.
	a
reference to any statute, regulation, proclamation, ordinance or law includes all statutes, regulations, proclamations, ordinances or laws varying, consolidating or
replacing the same from time to time, and a reference to a statute includes all regulations, policies, protocols, codes, proclamations and ordinances issued or otherwise applicable under that statute
unless, in any such case, otherwise expressly provided in any such statute or in such Operative Document;

	vii.
	a
definition of or reference to any document, schedule, exhibit, instrument or agreement includes an amendment or supplement to, or restatement, replacement,
modification or novation of, any such document, schedule, exhibit, instrument or agreement unless otherwise specified in such definition or in the context in which such reference is used;

	viii.
	a
reference to a particular section, paragraph or other part of a particular statute shall be deemed to be a reference to any other section, paragraph or other part
substituted therefor from time to time;

	ix.
	if
a capitalized term describes, or shall be defined by reference to, a document, instrument or agreement that has not as of any particular date been executed and
delivered and such document, instrument or agreement is attached as an exhibit to the Participation Agreement (as hereinafter defined), such reference shall be deemed to be to such form and, following
such execution and delivery and subject to paragraph (vii) above, to the document, instrument or agreement as so executed and delivered;

	x.
	a
reference to any Person (as hereinafter defined) includes such Person's successors and permitted assigns, whether by way of merger or otherwise; 

	xi.
	any
reference to "days" shall mean calendar days unless "Business Days" (as hereinafter defined) are expressly specified;

	xii.
	if
the date as of which any right, option or election is exercisable, or the date upon which any amount is due and payable, is stated to be on a day that is not a
Business Day, such right, option or election may be exercised, and such amount shall be deemed due and payable, on the next succeeding Business Day with the same effect as if the same was exercised or
made on such date or day and interest shall accrue and be payable with respect to such payment;

	xiii.
	words
such as "hereunder," "hereto," "hereof" and "herein" and other words of similar import shall, unless the context requires otherwise, refer to the whole of the
applicable document and not to any particular article, section, subsection, paragraph or clause thereof; and

	xiv.
	a
reference to "including" means including without limiting the generality of any description preceding such term, and for purposes hereof and of each Operative
Document the rule of ejusdem generis shall not be applicable to limit a general statement, followed by or referable to an enumeration of specific
matters, to matters similar to those specifically mentioned. 

 
 

Exhibit 4.4.2    
    

DEFINED TERMS  

        "Acceptable Credit Provider" means a U.S. or U.S. branch of a foreign bank or trust company that (i) has a
combined capital and surplus of at least $1 billion whose long term unsecured debt is rated A2 or higher by Moody's or A or higher by S&P and (ii) is exempt from SEC registration under
Section 3(a)(2) of the Securities Act. 

        "Accounts" shall mean, all accounts established pursuant to Section 2.2 of the
Amended Security Deposit Agreement. 

        "Actual Development Plan" shall have the meaning specified in Article XVI of the
Participation Agreement. 

        "Actual Knowledge" shall mean, with respect to any Person, actual knowledge of, or receipt of written notice by, an officer (or other
employee whose responsibilities include the administration of the Overall Transaction or operational oversight of the Facility) of such Person; provided,
however, that (i) in the case of the Owner Manager or the OM Company, "Actual Knowledge" shall mean the actual knowledge of an officer in the Corporate Trust Services of
the OM Company and (ii) in the case of Owner Participant, "Actual Knowledge" shall mean the actual knowledge of an executive officer of the corporate division or group primarily responsible for
acquiring or managing the interests of the Owner Participant in the Overall Transaction. 

        "Additional Equity Investment" shall mean the amount, if any, the Owner Participant shall provide (in its sole and absolute discretion) to
finance all or a portion of the Owner Lessor's Percentage of the cost of any Required Improvement or Non-Severable Improvement financed pursuant to  Section 12.1 of the Participation Agreement.

        "Additional Lessor Notes" shall have the meaning specified in Section 2.6(a) of the
Lease Indenture. 

        "Additional Plant" have the meaning specified in Article XVI of the Participation
Agreement. 

        "Additional Plant Operator" shall have the meaning specified in Article XVI of the
Participation Agreement. 

        "Additional Transfer Amounts" shall have the meaning specified in Section XV of the
Participation Agreement. 

        "Affiliate" of any particular Person shall mean any other Person which, directly or indirectly, controls, is controlled by or is under
common control with such Person (excluding any trustee under, or any committee with responsibility for administering, any Pension Plan or Welfare Plan). A Person shall be deemed to be "controlled by"
any other Person if such other Person possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by ownership of voting securities,
by contract or otherwise, and the words "controlling" and "control" shall have correlative meanings; provided, however, that under no circumstances
shall the OM Company be considered to be an Affiliate of any of the Owner Lessor, the Owner Manager or the Owner Participant, nor shall any of the Owner Lessor, the Owner Manager or the Owner
Participant be considered to be an Affiliate of the OM Company and that neither the Owner Lessor nor the Owner Manager shall be treated as an Affiliate of the Owner Participant except that the Owner
Lessor will be treated as an Affiliate of the Owner Participant to the extent that the Owner Lessor acts on the express written direction or with the express written consent of the Owner Participant. 

        "After-Tax Basis" shall mean, in the context of determining the amount of a payment to be made on such basis, the payment of
an amount which, after reduction by the net increase in Taxes of the recipient (actual or constructive) of such payment, which net increase shall be calculated by taking into account any reduction in
such Taxes resulting from any actual tax benefits realized or to be realized by the recipient as a result of such payment, shall be equal to the amount required to be paid. In 

calculating
the amount payable by reason of this provision in the case of any Person that is a U.S. Person, all income taxes payable and actual tax benefits realized or to be realized shall be
determined on the assumptions that (a) the recipient is subject to (i) U.S. Federal income taxes at the highest marginal rate then applicable to corporations for the relevant period or
periods, and (ii) state and local income taxes at the highest marginal rates then applicable to corporations for the relevant period or periods, and (b) all related tax benefits are
utilized (i) with regard to U.S. Federal income taxes, at the highest marginal rates then applicable to corporations for the relevant period or periods, and (ii) with regard to state and
local income taxes, at the highest marginal rate then applicable to corporations for the relevant period or periods. 

        "Allocated Rent" shall have the meaning specified in Section 3.2(b) of the Facility
Lease. 

        "Amended and Restated Guarantee and Collateral Agreement" shall mean that amended and restated guarantee and collateral agreement between
Homer City and the Collateral Agent on behalf of the Owner Participant, the Other Owner Participant, the Owner Lessor and the Other Owner Lessors, dated as of December 7, 2001. 

        "Amended Homer City Subordination Agreement" shall mean that agreement between Homer City, Edison Mission Finance Co., Homer City Property
Holdings, Inc., Mission Energy Westside, Inc. and Chestnut Ridge Company, dated as of December 7, 2001. 

        "Amended Security Deposit Agreement" shall mean that amended and restated security deposit agreement between Homer City and the Collateral
Agent on behalf of the Owner Lessors, dated as of December 7, 2001. 

        "Annual Operating Budget" shall mean, with respect to any Fiscal Year of the Facility Lessee, an annual operating budget for the Facility
provided by the Facility Lessee (and approved by the Owner Participant and the Lender in accordance with Section 5.14 the Participation
Agreement) setting forth all reasonably anticipated Revenues, payments of Basic Lease Rent, O&M Costs, allowances for reserves, and other customary information. 

        "Applicable Permit" shall mean any Permit, including any zoning, environmental protection, pollution, sanitation, FERC, safety, siting or
building Permit, (a) that is necessary at any given time in light of the stage of development, construction or operation of the Facility or Facility Site to acquire, operate, maintain, repair,
own or use the Facility or Facility Site as contemplated by the Transaction Documents, to sell electricity therefrom, to enter into any Transaction Document or to consummate any transaction
contemplated thereby, or (b) that is necessary so that none of the Owner Lessor, the Owner Participant, the Lease Indenture Trustee, the Lender nor the Bondholder Trustee nor any Affiliate of
any of them may be deemed by any Governmental Authority to be subject to regulation under PUHCA or under any other Applicable Law relating to electric utilities, generators, wholesalers or retailers,
in each case as a result of the operation of the Facility or the sale of electricity therefrom. 

        "Applicable Rate" shall mean (a) in respect of any amount due under any Lessor Note or any amount of Basic Lease Rent attributable
to the principal and interest on any Lessor Note, the per annum fixed rate of interest then borne by the relevant Lessor Note and (b) in respect of any other amount due under the Operative
Documents, the greater of (i) 10% per annum and (ii) 110% of the semi-annual applicable federal rate (in each case, computed on the basis of a 360-day year of
twelve 30-day months). 

        "Appraisal Procedure" shall mean (except with respect to the Closing Date Appraisal and any appraisal to determine Fair Market Sales Value
or Fair Market Rental Value during any period when a Lease Event of Default shall have occurred and be continuing), an appraisal conducted by an appraiser or appraisers in accordance with the
following procedures. The Owner Participant and the Facility Lessee will consult with the intent of selecting and appointing a mutually acceptable Independent Appraiser within 15 days. If a
mutually acceptable Independent Appraiser is selected, the Fair Market Sales Value, the Fair Market Rental Value, the remaining useful life or other determination that is the subject of the appraisal
shall be determined by such Independent Appraiser. If the Facility Lessee and the Owner Participant are unable to agree upon a single Independent Appraiser within fifteen 

(15) days
of such initial consultation, one shall be appointed by the Owner Participant, and one shall be appointed by the Facility Lessee (or its designee), which Independent Appraisers shall
attempt to agree upon the value, period, amount or other determination that is the subject of the appraisal. If either the Owner Participant or the Facility Lessee (or its designee) does not appoint
its Independent Appraiser, the determination of the other Independent Appraiser shall be conclusive and binding on the Owner Participant and the Facility Lessee. If the Independent Appraisers
appointed by the Owner Participant and the Facility Lessee are unable to agree upon the value, period, amount or other determination that is the subject of the appraisal, such Independent Appraisers
shall jointly appoint a third Independent Appraiser within 15 days or, if such Independent Appraisers do not appoint a third Independent Appraiser, the Owner Participant and the Facility Lessee
shall jointly appoint the third Independent Appraiser within 15 days. In such case, the average of the determinations of the three Independent Appraisers shall be conclusive and binding on the
Owner Participant and the Facility Lessee, unless the determination of one such Independent Appraiser is disparate from the middle determination by more than twice the amount by which the third
determination is disparate from the middle determination, in which case the determination of the most disparate Independent Appraiser shall be excluded, and the average of the remaining two
determinations shall be conclusive and binding on the Owner Participant and the Facility Lessee. Any appraisal determined in accordance with the foregoing must be delivered within thirty
(30) days after the date on which the last of the appraisers is appointed pursuant to the process set above. 

        "Appraiser" shall mean Deloitte & Touche LLP Valuation Group. 

        "Assignment and Assumption Agreement" shall mean an assignment and assumption agreement in form and substance substantially in the form of  Exhibit J to the
Participation Agreement. 

        "Authorized Officer" shall mean, with respect to any Person, (a) its Chairman of the Board, its President, any Senior Vice
President, the Chief Financial Officer, any Vice President, the Treasurer or any other Person authorized by or pursuant to the Organic Documents or (b) any resolution of the board of directors
or managers (or managing members) of such Person to perform the equivalent functions thereof, whose responsibilities include the administration of the Overall Transaction. 

        "Bankruptcy Code" shall mean the United States Bankruptcy Code of 1978, as amended from time to time, 11 U.S.C. § 101  et seq.

        "Base Case" shall mean the financial model for the projections of revenues and expenses for the Facility Lessee, as set forth as  Exhibit C to the Facility Lease.

        "Base DSRLC Costs" shall mean those costs in respect of the Debt Service Reserve Letter of Credit included as a component of Rent, as set
forth on Schedule 3 to the Facility Lease. 

        "Basic Lease Commencement Date" shall have the meaning specified in Section 3.1 of
the Facility Lease. 

        "Basic Lease Rent" shall have the meaning specified in Section 3.2(a) of the
Facility Lease. 

        "Basic Lease Rent Service Coverage Ratio" shall mean for any period, without duplication, a ratio the numerator of which is Net Cash Flow
for such period, and the denominator of which is the sum of Basic Lease Rent under the relevant Facility Lease and all Other Facility Leases payable during such period;  provided, however, that any
calculations of the Basic Lease Rent Service Coverage Ratio with respect to the most recently ended Fiscal Quarter shall
with respect to the most recent month, be based on estimated results only. 

        "Basic Lease Term" shall have the meaning specified in Section 3.1 of the Facility
Lease. 

        "Bill of Sale" shall mean the Bill of Sale, dated as of Decemberr 7, 2001, executed by Homer City in favor of the Owner Lessor, pursuant
to which the Owner Lessor acquired the Undivided Interest from the Facility Lessee as the same may from time to time be amended, restated, supplemented or otherwise modified in accordance with the
terms thereof. 

        "Bondholder Trustee" shall mean The Bank of New York, as successor to United States Trust Company of New York as trustee under the Fundco
Indenture. 

        "Bondholder Trustee Company" shall mean the Bondholder Trustee acting in its individual capacity. 

        "Burdensome Buyout Event" shall mean any event giving rise to the Facility Lessee's Burdensome Buyout Option under the Facility Lease. 

        "Burdensome Buyout Option" shall have the meaning specified in Section 13.3(a) of
the Facility Lease. 

        "Burdensome Termination Notice" shall have the meaning specified in Section 13.1 of
the Facility Lease. 

        "Business Day" shall mean any day other than a Saturday, a Sunday, or a day on which commercial banking institutions are authorized or
required by law, regulation or executive order to be closed in New York, New York or the city and the state in which the chief executive office of the Lease Indenture Trustee or the Owner Manager is
located. 

        "Capital Expenditures" shall mean expenditures made or liabilities incurred for the acquisition of any fixed assets or improvements,
replacements, substitutions or additions thereto that have a useful life of more than one year (other than expenditures with respect to Major Maintenance) which are capitalized in accordance with
GAAP. 

        "CERCLIS" shall mean the Comprehensive Environmental Response, Compensation and Liability Information System list. 

        "Chestnut Ridge" shall mean Chestnut Ridge Energy Company, a California corporation. 

        "Claim" shall mean any liability (including in respect of negligence (whether passive or active or other torts), strict or absolute
liability in tort or otherwise, warranty, latent or other defects (regardless of whether or not discoverable), statutory liability, property damage, bodily injury or death), obligation, loss,
settlement, damage, penalty, claim, Environmental Claim, action, suit, proceeding (whether civil or criminal), judgment, penalty, fine and other legal or administrative sanction, judicial or
administrative proceeding, cost, expense or disbursement, including reasonable legal, investigation and expert fees, expenses and related charges, of whatsoever kind and nature. 

        "Closing" shall have the meaning set forth in Section 2.2(a) of the Participation
Agreement. 

        "Closing Date Appraisal" shall mean the appraisal, dated the Closing Date, addressed to the Owner Participant prepared by the Appraiser
with respect to the Facility. 

        "Closing Date" shall have the meaning set forth in Section 2.2(a) of the
Participation Agreement. 

        "Closing Projections" shall mean the financial projections according to the Base Case calculated as of the Closing Date. 

        "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time, and is in effect on the relevant date. 

        "Collateral Agent" shall mean The Bank of New York, as successor to the United States Trust Company of New York. 

        "Commission" shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act. 

        "Competitor" shall mean, with respect to the Facility Lessee or any of its Affiliates, as entity (or an Affiliate thereof) that is
significantly involved as a seller, trader, wholesale purchaser or marketer of capacity or energy in the coal fired generation market in the United States, provided that, for the purposes of this
definition, the following entities shall not be considered "Competitors": (a) financial institutions involved in the energy markets solely by reason of trading futures and other similar 

instruments
and (b) entities listed on Schedule A to the Participation Agreement, which may, from time to time but not more often than
once a year, be modified by the Owner Participant, and shall contain a list of up to six entities and shall be reasonably satisfactory to Homer City, provided however, that this approval right shall
not inure to the benefit of Homer City in connection with any transfer by the Owner Participant or the Owner Lessor during a Lease Event of Default. 

        "Component" shall mean any appliance, part, instrument, appurtenance, accessory, furnishing, equipment or other property of whatever
nature that may from time to time be incorporated in the Facility, except to the extent constituting Improvements. 

        "Component A of Basic Lease Rent" shall mean the amounts set forth as Component A of Basic Lease Rent as set forth on  Schedule 1-1 to the Facility Lease.

        "Component A of Termination Value" shall mean the amounts under the column titled "Component A of Termination Value" in  Schedule 2 to the Facility Lease.

        "Consent Payment" shall mean an amount set forth in an Officer's Certificate of Edison Mission Holdings Co. delivered to the Owner Lessor
or such other party as the Owner Lessor may instruct on the Closing Date, which amount shall be equal to the Owner Lessor's Percentage of that total sum sufficient to make the consent payment required
in connection with the Consent Solicitation Statement of Edison Mission Holdings Co. and the Facility Lessee, dated November 16, 2001. 

        "Consolidated Tangible Net Assets" shall mean, with respect to any Person, as of the date of any determination thereof, the total amount
of all assets of such Person and its Subsidiaries (determined on a consolidated basis which must be in accordance with GAAP), less the sum of (a) the consolidated liabilities of such Person and
its Subsidiaries (determined on a consolidated basis which must be in accordance with GAAP) and (b) assets properly classified as intangible assets in accordance with GAAP. 

        "Consumer Price Index for All Urban Consumers (CPI-U)" shall mean the consumer price index for all urban consumers as
published by the United States Department of Labor, Bureau of Labor Statistics. 

        "Controlled Group" shall mean all corporations which are members of a controlled group of corporations within the meaning of
Section 1563(a) of the Code determined without regard to Sections 1563(a)(4) and 1563(e)(3)(C) and all trades or businesses (whether or not incorporated) under common control which, together
with Homer City, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA. 

        "Cut-Off Date" shall mean December 7, 2001. 

        "Date of Return" shall have the meaning specified in Section 5.1 of the Facility
Lease. 

        "Debt Service" shall mean the principal, interest, fees, costs, expenses, indemnities and any other amounts, in each case payable in
respect of the Lessor Notes. 

        "Debt Service Coverage Ratio" shall mean for any period, without duplication, a ratio the numerator of which is Net Cash Flow for such
period, and the denominator of which is the Debt Service payable during such period; provided, however, that any calculations of the Debt Service
Coverage Ratio with respect to the most recently ended Fiscal Quarter shall, with respect to the most recent month, be based on estimated results only. 

        "Debt Service Reserve Amount" shall mean the principal, interest, fees, costs, expenses, indemnities, and any other amounts in each case
payable in respect of the Lessor Notes on the next Rent Payment Date. 

        "Debt Service Reserve Letter of Credit" shall mean that letter of credit maintained at any time by the Owner Lessor in favor of the Lease
Indenture Trustee for the benefit of the holders of the Lessor Notes. 

        "Depositary" shall mean Bank of America NT&SA. 

        "Designated Representative Agreements" shall mean each of (i) the Designated Representative Agreement among the Owner Lessor, each
Other Owner Lessor, and the Facility Lessee relating to SOx emission allowances and (ii) the Designated Representative Agreement among the Owner Lessor, each Other Owner Lessor, and the
Facility Lessee relating to NOx emission allowances, each dated as of December 7, 2001. 

        "Development Presentation" shall have the meaning specified in Article XVI of the
Participation Agreement. 

        "Discount Rate" shall mean 11.5% per annum assuming semi-annual compounding. 

        "Duff & Phelps" shall mean Duff & Phelps Credit Rating Co., and its successors and assigns. 

        "Easements" shall mean the easements appurtenant, easements in gross, license agreements and other rights running in favor of the Facility
Lessee and/or appurtenant to the Facility Site, including without limitation those certain easements and licenses created by and described in the Facility Site Lease. 

        "Easement Areas" shall have the meaning specified in Section 10.4 of the Facility
Site Lease. 

        "Edison Mission Finance Co." shall mean Edison Mission Finance Co., a California corporation. 

        "Edison Mission Holdings Co." shall mean Edison Mission Holdings Co., a California corporation. 

        "EIX" shall mean Edison International, a California corporation. 

        "EMEFS" shall mean Edison Mission Energy Fuel Services, Inc., a California corporation. 

        "EME" shall mean Edison Mission Energy, a California corporation. 

        "EME Party" shall mean EME or any of its Subsidiaries. 

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

        "Energy Sales Agreement" shall mean that certain energy sales agreement dated as of March 18, 1999 between EMMT, as buyer, and the
Facility Lessee, as seller. 

        "Engineering Consultant" shall mean Stone and Webster Management Consultants, Inc. or another nationally recognized independent
engineering and consulting firm which, as Engineering Consultant, will independently review the technical aspects of the project, analyze the contractual structure and create financial projections for
the benefit of the Lease Transaction Parties. 

        "Engineering Consultant's Report" shall mean the report of the Engineering Consultant, dated May 4, 1999. 

        "Environmental Claim" shall mean any administrative, regulatory or judicial action, fee, cause of action, obligation, suit, liability,
loss, damage, proceeding, decree, judgment, penalty, fine, demand, demand letter, order, directive, claim (including any claim involving liability in tort, strict, absolute or otherwise), lien,
sanction, notice of noncompliance or violation, citation, warning, complaint,
investigation, legal or consultant fee or expense, or cost of investigation or proceeding, relating in any way to any Environmental Law, or arising from the actual or alleged presence or Release of
any Hazardous Material (hereinafter "Liabilities") including and regardless of the merit of such Liability, any and all Liabilities for (a) investigation, assessment, abatement, correction,
enforcement, mitigation, cleanup, removal, response, remediation or other activities related to the actual or alleged presence or Release of Hazardous Materials, (b) damages, contribution,
indemnification, cost recovery, compensation or injunctive or declaratory relief related to violations of Environmental Law or the actual or alleged presence or Release of Hazardous Materials, or
(c) any alleged or actual injury or threat of injury to human health, safety, natural resources or the environment in connection with a violation of Environmental Law or the actual or alleged
presence or Release of Hazardous Materials. 

        "Environmental Condition" shall mean the presence or Release of any Hazardous Material at, into, on or under any land, water, air or
otherwise into the environment, which does or reasonably 

could
(a) require assessment, investigation, abatement, correction, clean-up, mitigation, removal, remediation or any other response action, (b) give rise to an Environmental
Claim or any obligation or liability of any nature (whether civil or criminal, arising under a theory of negligence or strict liability, or otherwise) under any Environmental Law, (c) create or
constitute a public or private nuisance or trespass, (d) constitute a violation of or non-compliance with any Environmental Law or (e) result in or contribute to the actual
or threatened loss of or damage to any property, natural resource or environmental media, or the death of or injury to any Person. 

        "Environmental Consultant" shall mean Pilko & Associates, Inc. or such other Person as may from time to time be selected as
environmental consultant by the Facility Lessee with the consent of the Owner Participant and, so long as the Lessor Notes are outstanding, the Lease Indenture Trustee, such consent not to be
unreasonably withheld. 

        "Environmental Consultant's Report" shall mean the Phase I Environmental Survey and the Phase II Environmental Survey. 

        "Environmental Costs" shall mean capital expenditure for major modifications and repairs of the Facility required under Environmental Laws
or by Prudent Industry Practice if related to environmental matters. 

        "Environmental Laws" shall mean all federal, state and local statutes, laws, ordinances, codes, rules, regulations, consent decrees,
administrative orders, administrative directives, injunctions, deed restrictions, applicable judgments and any other legally enforceable requirements of any Governmental Authority relating to,
regulating or imposing liability or standards of conduct concerning Hazardous Materials, public health, safety or the environment or natural resources, as have been, are now, or may at any time
hereafter be in effect. 

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

        "Event of Force Majeure" shall mean the occurrence of an event beyond the control of the Person claiming the benefit of such Event of
Force Majeure, due to fire, flood, explosion, action of the elements, acts of God, accidents, strikes, lockouts or other labor trouble, insurrections, riots, or other civil disturbances, war, enemy
action, or acts, demands or requirements of any Governmental Authority, or other causes of like nature, in each case, which (or the effect of which) such Person could not reasonably be expected to
avoid. 

        "Event of Loss" shall mean any of the following events: 

          (i)  the
loss of the Facility or use thereof, due to destruction or damage to the Facility or the Facility Site that renders repair uneconomic or that renders the Facility
permanently unfit for normal use; or 

         (ii)  any
damage to the Facility that results in an insurance settlement with respect thereto on the basis of a total loss or an agreed constructive or a compromised total
loss of the Facility; or 

        (iii)  seizure,
condemnation, confiscation or taking of, or requisition of title to or use of, the Facility or the Facility Site by any Governmental Authority (a
"Requisition") that shall have resulted in loss by the Owner Lessor of title to or use of the Undivided Interest or the Ground Interest following exhaustion of all permitted appeals or an election by
the Facility Lessee not to pursue such appeals; provided, that (a) no such contest may be conducted without the Owner Participant's consent while
a Material Lease Default or Lease Event of Default, as applicable, shall have occurred and be continuing and (b) no such contest shall extend beyond the earlier of (x) the date which is
six months after the loss of such title, or (y) the date which is 48 months prior to the end of the Basic Lease Term or any Renewal Lease Term then in effect or irrevocably elected by
the Facility Lessee; provided, further, that in any case involving Requisition of use of the Facility or the Facility Site, but not of the Owner Lessor's title to the Undivided Interest or interest in
the Facility Lease, such event shall be an Event of Loss only if such Requisition of use continues beyond the Basic Lease Term or any Renewal Lease Term then in effect or irrevocably elected by the
Facility Lessee; or 

        (iv)  if
elected by the Owner Participant, and only in circumstances where the termination of the Facility Lease and transfer of the Facility to the Facility Lessee (or its
designee) shall remove the basis of the regulation described below, the Owner Participant or the Owner Lessor shall become subject to any rate of return regulation by any Governmental Authority, or
the Owner Participant, or the Owner Lessor shall become subject to any public utility regulation of any Governmental Authority or law which in the reasonable opinion of the Owner Participant is
burdensome, in either case by reason of the participation of the Owner Lessor or the Owner Participant in the Overall Transaction but, in any event, not if the Owner Participant or the Owner Lessor
shall have become subject thereto as the result of (a) investments, loans or other business activities of the Owner Participant or any of its Affiliates in respect of equipment or facilities
similar in nature to the Facility or any part thereof or in any other electrical, steam, cogeneration or other energy or utility related equipment or facilities or the general business or other
activities of the Owner Participant or any of its Affiliates or the nature of any of the properties or assets from time to time owned, leased, operated, managed or otherwise used or made available for
use by the Owner Participant or any of its Affiliates or (b) a failure of the Owner Participant to perform routine, administrative or ministerial actions the performance of which would not
subject the Owner Participant to any adverse consequence (in the reasonable opinion of the Owner Participant acting in good faith); provided that the Facility Lessee, the Owner Lessor and the Owner
Participant agree to cooperate and to take reasonable measures to alleviate the source or consequence of any regulation constituting an Event of Loss under this paragraph (iv), at the cost and
expense of the party requesting such cooperation and so long as there shall be no adverse consequences to the Owner Lessor or Owner Participant (or any of their respective Affiliates) as a result of
such cooperation or the taking of such reasonable measures ("Regulatory Event of Loss"). 

         (v)  destruction,
damage, loss or theft to the Facility other than as covered in clause (i) above and failure to deliver the Reinvestment Notice within 45 days
of receipt of the settlement of or payment of $50,000,000 or more in respect of such destruction, damage, loss or theft. 

        "Event of Loss Payment" shall have the meaning specified in Section 10.2(a) of the
Facility Lease. 

        "EWG Status" shall mean an entity which is an "exempt wholesale generator" as defined in Section 32(a)(1) of PUHCA. 

        "Excepted Payments" shall mean and include (a)(i) any indemnity (whether or not constituting Supplemental Lease Rent and whether or
not a Lease Event of Default exists) payable to either the Owner Manager or the Owner Participant or to their respective Indemnitees and successors and permitted assigns (other than the Lease
Indenture Trustee) pursuant to Section 10 of the Participation Agreement or Section 7.1 of
the Lessor LLC Agreement and any payments under the Tax Indemnity Agreement (provided, that Excepted Payments shall not include any Basic Lease Rent) or
(ii) any amount payable to the Owner Lessor or the Owner Participant to reimburse any such Person for its costs and expenses in exercising its rights or complying with its obligations under the
Operative Documents, (b)(i) insurance proceeds, if any, payable to the Owner Lessor or the Owner Participant under insurance separately maintained by the Owner Lessor or the Owner Participant
with respect to the Facility as permitted by Section 11.2 of the Facility Lease or (ii) proceeds of personal injury, property damage
liability or other liability insurance maintained under any Operative Document for the benefit of the Owner Lessor or the Owner Participant, (c) any amount payable to the Owner Participant as
the purchase price of the Owner Participant's right and interest in the Lessor Membership Interest, (d) any
amounts payable to the Owner Participant upon exercise by the Facility Lessee (or its designee) of the rights pursuant to Section XV of the
Participation Agreement, (e) all other fees expressly payable to the Owner Participant, the Owner Lessor, the Owner Manager or the Trust Company under the Operative Documents, (f) any
payments in respect of interest, or any payments made on an After-Tax Basis, to the extent attributable to payments referred to in clause (a) through (e) above and
(g) any right to take any action for the enforcement of any of the above provisions. 

        "Excess Amount" shall have the meaning specified in Section 17.3 of the
Participation Agreement. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated
thereunder. 

        "Exchange Offer Registration Statement" shall have the meaning specified in  Section 2(a) of the Registration Rights Agreement. 

        "Exempt Wholesale Generator" or "EWG"
shall mean an entity which is an "exempt wholesale generator" as defined in Section 32(a)(1) of PUHCA. 

        "Existing Debt" shall mean those obligations of Edison Mission Holdings Co. pursuant to the Indenture. 

        "Existing Trustee" shall mean United States Trust Company of New York. 

        "Extended Marketing Period" shall have the meaning set forth in Section 10.2(b) of
the Facility Lease. 

        "Facility" shall have the meaning set forth in Exhibit B to the Facility Lease. 

        "Facility Deed" shall mean the warranty deed, dated as of December 7, 2001, between Homer City and the Owner Lessor pursuant to
which Homer City transferred the Undivided Interest to the Owner Lessor. 

        "Facility Lease" shall mean the Facility Lease Agreement, dated as of December 7, 2001, between the Owner Lessor and the Facility
Lessee. 

        "Facility Lease Term" shall have the meaning specified in Section 3.1 of the
Facility Lease. 

        "Facility Lessee" shall mean Homer City, as lessee of the Undivided Interest under the Facility Lease. 

        "Facility Lessor" shall mean the Owner Lessor, as lessor of the Undivided Interest under the Facility Lease. 

        "Facility Site" shall have the meaning specified in the recitals of the Facility Site Lease. 

        "Facility Site Easements" shall mean the easements to be reserved by the Facility Lessee as set forth on Exhibit E to the Facility
Site Lease. 

        "Facility Site Lease" shall mean the Facility Site Lease and Easement Agreement, dated as of December 7, 2001, between Homer City
as Ground Lessor and the Owner Lessor as Ground Lessee. 

        "Facility Site Sublease" shall mean the Facility Site Sublease Agreement, dated as of December 7, 2001, between the Owner Lessor as
Ground Sublessor and Homer City as Ground Sublessee. 

        "Facility Sublessee" shall mean any Person which shall have become a sublessee of the Facility from the Facility Lessee in accordance with
the Facility Lease. 

        "Fair Market Rental Value" or "Fair Market Sales Value" shall mean with respect to any
property or service as of any date, the cash rent or cash price obtainable in an arm's length lease, sale or supply, respectively, between an informed and willing lessee or purchaser under no
compulsion to lease or purchase and an informed and willing lessor or seller or supplier under no compulsion to lease or sell or supply the property or service in question, and shall, in the case of
the Undivided Interest or the Owner Lessor's Interest, be determined (except pursuant to Section 17 of the Facility Lease or as otherwise  providedbelow or in the Operative Documents) on the basis that (a) the conditions contained in Sections
7 and 8 of the Facility Lease shall have been complied with in all respects, (b) the lessee or buyer shall have rights
in, or an assignment of, the Operative Documents to which the Owner Lessor is a party and the obligations relating thereto, (c) the Undivided Interest or the Owner Lessor's Interest, as the
case may be, is free and clear of all Liens (other than Owner Lessor's Liens, Owner Participant's Liens and Indenture Trustee Liens), (d) taking into account the remaining term of the Facility
Site Lease, and (e) in the case of the Fair Market Rental Value, taking into account the terms of the Facility Lease and the other Operative Documents. If the Fair Market Sales Value of the
Owner Lessor's Interest is to be determined during the continuance of a Lease Event of Default or in connection with the exercise of remedies by the Owner Lessor pursuant to  Section 17 of the
Facility Lease, such value shall be determined by an appraiser appointed solely by the Owner Lessor on an "as-is,"
"where-is" and "with all faults" basis and shall take into account all Liens (other than Owner Lessor's Liens, Owner Participant's Liens and Indenture Trustee Liens);  provided, however, in any such case
where the Owner Lessor shall be unable to obtain constructive possession sufficient to realize the economic benefit
of the Owner Lessor's Interest, Fair Market Sales Value of the Owner Lessor's Interest shall be deemed equal to $0. If in any case other than in the preceding sentence the parties are unable to agree
upon a Fair Market Sales Value of the Owner Lessor's Interest within 30 days after a request therefor has been made, the Fair Market Sales Value of the Owner Lessor's Interest shall be
determined by appraisal pursuant to the Appraisal Procedure. Any fair market value determination of a Severable Improvement shall take into consideration any liens or encumbrances to which the
Severable Improvement being appraised is subject and which are being assumed by the transferee. In case of any appraisal obtained in connection with the First Renewal Term or the Second
Renewal Term, the appraisal shall be conducted using the same methodology as used in the Closing Appraisal. 

        "FAS 13" shall mean Statement of Financial Accounting Standards (SFAS) No. 13, as amended and interpreted from time to time. 

        "Federal Power Act" shall mean the Federal Power Act, 16 U.S.C. §§ 791a-825r (1994), as amended. 

        "FERC" shall mean the Federal Energy Regulatory Commission of the United States or any successor or predecessor agency thereto. 

        "FERC EWG Orders" shall mean (a) the order issued by the FERC on March 12, 1999, in Docket No. EG
99-75-000, unconditionally determining that Homer City is an "exempt wholesale generator" under the Holding Company Act, and (b) the orders issued by the FERC on
October 11, 2001, in Docket Nos. EG01-288-000, EG01-289-000, EG01-290-000, EG01-291-000,
EG01-293-000 and EG01-294-000 and on October 17, 2001 in Docket Nos. EG01-292-000 and
EG01-295-000, 

unconditionally
determining that the Owner Lessor and the Other Owner Lessors are "exempt wholesale generators" under the Holding Company Act. 

        "FERC Orders" shall mean, collectively, the FERC EWG Orders, the FERC Section 201 Order, the FERC Section 203 Order and the
FERC Section 205 Orders. 

        "FERC Section 201 Order" shall mean the order issued by the FERC on October 26, 2001, in Docket No.
EL01-110-000 disclaiming jurisdiction under Section 201 of the Federal Power Act over the Owner Lessor and the Other Owner Lessors and the Owner Participant and the
Other Owner Participants. 

        "FERC Section 203 Order" shall mean the order issued by the FERC on October 26, 2001, in Docket No.
EC01-145-000, granting approval under Section 203 of the Federal Power Act for the transfer of the facilities for financing purposes to the Owner Lessor and the Other
Owner Lessors and the lease of the facilities by the Owner Lessor and the Other Owner Lessors to Homer City. 

        "FERC Section 205 Orders" shall mean (a) the order issued by the FERC on January 13, 1999, in Docket No.
ER-99-666-000, granting approval under Section 205 of the Federal Power Act for Homer City to sell power at market based rates and granting blanket
preapproval under Section 204 of the Federal Power Act for all future issuances of securities and assumptions of liabilities by Homer City, (b) the letter order issued by the FERC on
May 7, 1999, in Docket No. ER99-2433-000, accepting for filing under Section 205 of the Federal Power Act Homer City's rate schedules to sell ancillary services
in specific markets, and (c) the order issued by the FERC on January 13, 1999, in Docket No. ER-98-4600-000, accepting for filing the Interconnection
Agreement. 

        "Fiscal Quarter" shall mean any quarter of a Fiscal Year. 

        "Fiscal Year" shall mean any period of twelve consecutive calendar months ending on December 31. 

        "First Renewal Option" shall have the meaning specified in Section 15.2 of the
Facility Lease. 

        "First Renewal Term" shall have the meaning specified in Section 15.1 of the
Facility Lease. 

        "FMV Renewal Lease Term" shall have the meaning specified in Section 15.2 of the
Facility Lease. 

        "Fuel and Market Consultant" shall mean PA Consulting. 

        "Fuel Supply Agreement" shall mean that certain fuel supply agreement dated as of March 18, 1999 between EMEFS and the Facility
Lessee. 

        "Fundco" shall mean Homer City Funding LLC, a Delaware limited liability company. 

        "Fundco Bondholder" or "Fundco Bondholders" shall mean any Person who from time to time
holds the Fundco Bonds. 

        "Fundco Bonds" shall mean the bonds issued by Homer City Funding LLC pursuant to the Fundco Indenture. 

        "Fundco Indenture" shall mean that First Amended and Restated Indenture dated            , 2001 between Fundco and the Bondholder
Trustee for $300,000,000 8.137% senior secured bonds due 2019 and $530,000,000 8.374% senior secured bonds due 2026. 

        "GAAP" shall mean generally accepted accounting principles in the United States of America as in effect from time to time, consistently
applied. 

        "Governmental Approval" shall mean any authorization, consent, approval, license, permit, order, certificate, waiver, variance, filing or
registration of or with or issued by any Governmental Authority, and shall include those citing, environmental and operating permits and licenses (including the Applicable Permits) that are required
for the use and operation of the Facility and the Facility Site. 

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

        "Ground Interest" shall have the meaning specified in the recitals to the Facility Site Lease. 

        "Ground Lessee" shall mean the Owner Lessor as lessee of the Ground Interest under the Facility Site Lease. 

        "Ground Lessor" shall mean Homer City as lessor of the Ground Interest under the Facility Site Lease. 

        "Ground Sublessee" shall mean Homer City as sublessee of the Ground Interest under the Facility Site Sublease. 

        "Ground Sublessor" shall mean the Owner Lessor as sublessor of the Ground Interest under the Facility Site Sublease. 

        "Hazardous Material" shall mean: 

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

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

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

        (d)   any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material, force or substance (including polychlorinated biphenyls, urea formaldehyde insulation,
asbestos or radioactivity) that is regulated, prohibited or restricted pursuant to any Environmental Laws or that could give rise to an Environmental Claim. 

        "Holding Company Act" or "PUHCA" shall mean the Public Utility Holding Company Act of
1935, as amended. 

        "Homer City" shall mean EME Homer City Generation L.P., a Pennsylvania limited partnership. 

        "Homer City Parties" shall mean Edison Mission Holdings Co., Edison Mission Finance Co., Chestnut Ridge, ME Westside, and Homer City
Property Holdings, Inc. 

        "Homer City Partnership Agreement" shall mean that certain Amended and Restated Agreement of Limited Partnership of EME Homer City
Generation L.P. dated as of December 7, 2001. 

        "Homer City Property Holdings, Inc." shall mean Homer City Property Holdings, Inc., a California corporation. 

        "Homer City Subordination Agreement" shall mean that agreement between Homer City, Edison Mission Finance Co., Homer City Property
Holdings, Inc., ME Westside and Chestnut Ridge dated as of March 18, 1999, as amended by the Amended Homer City Subordination Agreement. 

        "Improvement" shall mean a modification, alteration, addition or improvement to the Facility. 

        "Indebtedness" of any Person shall mean (a) all indebtedness of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person to pay the deferred purchase price of property or services (other than trade
payables and accrued liabilities arising in the ordinary course of business), (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect
to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property),
(e) all Lease Obligations of such Person (including payments of Termination Value and any other amounts owed pursuant to the Operative Documents), (f) all obligations, contingent or
otherwise, of such Person under acceptance, letter of credit or similar facilities securing Indebtedness, (g) all unconditional obligations of such Person to purchase, redeem, retire, defease
or otherwise acquire for value any capital stock or other equity interests of such Person or any warrants, rights or options to acquire such 

capital
stock or other equity interests, (h) all obligations under "swaps", "caps", "floors", "collars", or other interest rate hedging contracts or similar arrangements, (i) all
Indebtedness of any other Person of the type referred to in clauses (a) through (i) guaranteed by such Person or for which such Person shall otherwise (including pursuant to any
keepwell, makewell or similar arrangement) become directly or indirectly liable, and (j) all Indebtedness of the type referred to in clauses (a) through (i) above secured by (or
for which the holder of such Indebtedness has an existing right, contingent or otherwise by) any Lien or security interest on property (including accounts and contract rights) owned by the Person
whose Indebtedness is being measured, even though such Person has not assumed or become liable for the payment of such Indebtedness, the amount of such obligation being deemed to be the lesser of the
net book value of such property or the amount of the obligation so secured. 

        "Indemnitee" shall have the meaning specified in Section 10.1(a) of the
Participation Agreement. 

        "Indenture" means that certain Indenture dated as of May 27, 1999 between Edison Mission Holdings Co. and the Bondholder Trustee
for $300,000,000 8.137% senior secured bonds due 2019 and $530,000,000 8.374% senior secured bonds due 2026. 

        "Indenture Estate" shall have the meaning specified in the Granting Clause of the Lease Indenture. 

        "Independent Appraiser" shall mean a disinterested, licensed professional appraiser of industrial property who (a) meets the
personal property qualifications criteria established by the Appraisal Foundation; (b) is a member of the Appraisal Institute or holds the senior accreditation of the American Society of
Appraisers; (c) is in the regular employ, or is a principal of, a nationally recognized appraisal firm; and (d) has substantial experience in the business of appraising facilities
similar to the Facility. 

        "Independent Director" shall mean, as to the Facility Lessee, a member of the board of directors of ME Westside, the sole general partner
of the Facility Lessee, duly elected or appointed, who shall not be, and for the five-year period prior to such individual's appointment as director shall not have been, and during the
continuation of his or her service as Independent Director is not: (a) an employee, stockholder, partner or officer of EME, the Facility Lessee or any of their respective Affiliates or a
director of any of EME, any Affiliate of EME (other than the Facility Lessee) or any Affiliate of the Facility Lessee; (b) an employee, director, stockholder, partner or officer of a customer
or supplier that derives more than ten percent of its revenue from EME, the Facility Lessee or any of their respective Affiliates; (c) a person or entity controlling or under common control
with any such stockholder, customer or supplier, of (d) any member of the immediate family of a person described in (a), (b) or (c). 

        "Initial Lessor Notes" shall have the meaning specified in Section 2.2 of the Lease
Indenture. 

        "Insurance Consultant" shall mean Marsh USA Inc., a Delaware corporation. 

        "Insurance Consultant's Report" shall mean the report prepared by the Insurance Consultant dated the Closing Date. 

        "Interconnection Agreement" shall mean that agreement between New York State Electric and Gas Corporation, Pennsylvania Electric Company
and Mission Energy Westside, Inc., dated as of August 1, 1998. 

        "Intercompany Loan Agreement" shall mean that certain Subordinated Revolving Loan Agreement dated as of March 18, 1999 between EME
Homer City L.P., as borrower, and Edison Mission Finance Co., as lender. 

        "Investment Company Act" shall mean the Investment Company Act of 1940, as amended. 

        "Investment Grade" shall mean, with respect to any Person, that (a) such Person has outstanding unsecured indebtedness rated at
least BBB- by S&P or Baa3 by Moody's, or if it has no such rated unsecured indebtedness, has an equivalent counterparty rating from S&P or Moody's or (b) if such Person has neither
unsecured indebtedness rated by S&P or Moody's or a counterpart rating by S&P or 

Moody's,
such Person is rated to be Investment Grade pursuant to the internal credit scoring procedures adopted from time to time by EME's applicable risk management committee (provided, that such
procedures shall be consistent with the internal credit scoring procedures established from time to time by EME's applicable risk management committee and applicable to other North American generating
assets owned or controlled by EME or any subsidiary thereof); provided, that in applying the foregoing standards, in the case of obligations of any Person that are supported by guarantees, letters of
credit or other credit support meeting the requirements established from time to time by EME's applicable risk management committee (provided, that such standards are consistent with the credit
support requirements established from time to time by EME's applicable risk management committee and applicable to other North American generating assets owned or controlled by EME or any subsidiary
thereof), the foregoing standards shall be applied to the issuer of such guarantee, letter of credit or other credit support. 

        "Lease Debt" shall mean the debt evidenced by the Lessor Notes. 

        "Lease Default" shall mean any event or occurrence, which, with the passage of time or the giving of notice or both, would become a Lease
Event of Default. 

        "Lease Event of Default" shall have the meaning specified in Section 16 of the
Facility Lease. 

        "Lease Indenture" shall mean the Indenture of Trust and Security Agreement dated as of December 7, 2001, among the Owner Lessor,
the Lease Indenture Trustee and the Security Agent. 

        "Lease Indenture Company" shall mean the Lease Indenture Trustee in its individual capacity under the Operative Documents. 

        "Lease Indenture Event of Default" shall have the meaning specified in Section 7 of
the Lease Indenture. 

        "Lease Indenture Trustee" shall mean the The Bank of New York. 

        "Lease Subordination Agreement" shall mean that agreement between the Owner Lessor, the Owner Participant and the Lease Indenture Trustee,
dated as of December 7, 2001. 

        "Lease Transaction Party" shall mean, individually or collectively, as the context shall require, all or any of the parties to the
Operative Documents. 

        "Lender" shall have the meaning set forth in the preamble to the Participation Agreement. 

        "Lessee Section 467 Interest" shall have the meaning specified in  Section 3.2(c) of the Facility Lease. 

        "Lessee Section 467 Loan Balance" shall have the meaning specified in  Section 3.2(c) of the Facility Lease. 

        "Lessor Estate" shall mean all the estate, right, title and interest of the Owner Lessor in, to and under the Undivided Interest, the
Ground Interest, the Operative Documents, and the Ownership and Operation Agreement, including all funds advanced to the Owner Lessor by the Owner Participant, all installments and other payments of
Basic Lease Rent, Renewal Rent, Supplemental Lease Rent, Stipulated Loss Value, Termination Value, condemnation awards, purchase price, sale proceeds, insurance proceeds and all other proceeds, rights
and interests of any kind for or with respect to the Lessor Estate, right, title and interest of the Owner Lessor in, to and under the Undivided Interest, the Ground Interest, the Operative Documents,
and any of the foregoing. 

        "Lessor Lien" shall have the meaning set forth in Section 7.2 of the Participation
Agreement. 

        "Lessor LLC Agreement" shall mean the Limited Liability Company Agreement, effective as of December 4, 2001, between the Owner
Lessor, the Owner Participant and the Owner Manager, pursuant to which the Owner Lessor will be governed. 

        "Lessor Loans" shall mean the loans evidenced by the Lessor Notes. 

        "Lessor Membership Interest" shall mean the membership interest of the Owner Participant in the Owner Lessor. 

        "Lessor Notes" shall mean any Initial Lessor Notes, Additional Lessor Notes or New Lessor Notes issued pursuant to the Lease Indenture. 

        "Lessor Section 467 Interest" shall have the meaning specified in  Section 3.2(c) of the Facility Lease. 

        "Lessor Section 467 Loan Balance" shall have the meaning specified in  Section 3.2(c) of the Facility Lease. 

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

        "Major Maintenance" shall mean (a) Environmental Costs and (b) scheduled major overhauls and major repairs of the Facility
required to be performed in accordance with Prudent Industry Practice and which are capitalized in accordance with GAAP. 

        "Major Maintenance Projections" shall mean, with respect to any Fiscal Year of the Facility Lessee, projections provided by the Facility
Lessee (and approved by the Owner Participant and the Lender in accordance with Section 5.14 of the Participation Agreement) with respect to
Major Maintenance anticipated to be incurred over the next full cycle of Major Maintenance for the Facility setting forth, in reasonable detail, the amounts, timing and type of all reasonably
anticipated Major Maintenance reasonably anticipated by the Facility Lessee costs to be incurred during such period, and including customary information as reasonably agreed among the Facility Lessee,
the Owner Participant and the Lender. 

        "Material Adverse Effect" shall mean any event, development or circumstance that has had or could reasonably be expected to have a
material adverse effect on (a) the business, assets, results of operations or financial condition of Homer City, (b) the ability of Homer City to perform or comply with its obligations
under any of the Operative Documents or (c) the validity or enforceability of any of the Operative Documents, the Liens granted thereunder or the material rights and remedies of the parties
thereto, and (d) with respect to the Owner Participant's interest in the Facility, the residual value or remaining useful life of the Facility. 

        "Material Lease Default" shall mean any event which, with notice or lapse of time or both notice and lapse of time, would become a Lease
Event of Default described in clause (a), (b), (g) or (h) of the definition thereof set forth in Section 16 of the Facility
Lease. 

        "Material Project Agreements" shall mean the Energy Sales Agreement, the NOx Agreement, and the Fuel Supply Agreement. 

        "Member Interest" shall mean the membership interest of the OP Member in the Owner Participant. 

        "Memorandum of the Facility Lease" shall mean the Memorandum of the Facility Lease Agreement, dated as of December 7, 2001,
executed by the Owner Lessor and the Facility Lessee for filing in the Office of the Recorder of Deeds of Indiana County, Pennsylvania. 

        "Memorandum of the Facility Site Lease" shall mean the Memorandum of the Facility Site Lease and Easement Agreement, dated as of
December 7, 2001, executed by the Ground Lessor and the Ground Lessee for filing in the Office of the Recorder of Deeds of Indiana County, Pennsylvania. 

        "Memorandum of the Facility Site Sublease" shall mean the Memorandum of the Facility Site Sublease Agreement, dated as of
December 7, 2001, executed by the Ground Sublessor and the Ground Sublessee for filing in the Office of the Recorder of Deeds of Indiana County, Pennsylvania. 

        "ME Westside" shall mean Mission Energy Westside, Inc., a California corporation. 

        "Minimum Credit Rating" shall mean a credit rating of at least BBB- from S&P and at least Baa3 from Moody's. 

        "Modified Senior Rent Service Coverage Ratio" shall mean for any period, without duplication, a ratio the numerator of which is Net Cash
Flow for such period plus the applicable Special Reserve Balance (as defined in the Amended and Restated Security Deposit Agreement), and the
denominator of which is the sum of Senior Rent under the relevant Facility Lease and all Other Facility Leases payable during such period; provided,
however, that any calculations of the Modified Senior Rent Service Coverage Ratio with respect to the most recently ended Fiscal Quarter shall, with respect to the most recent
month, be based on estimated results only. 

        "Moody's" shall mean Moody's Investors Service, Inc., a division of Moody's Corporation, and its successors and assigns. 

        "Mortgage" shall have the meaning set forth in the recitals to the Lease Indenture. 

        "Multiemployer Plan" shall mean a "multiemployer plan" as such term is defined in Section 4001(a)(3) of ERISA. 

        "National Flood Insurance Act" shall mean the National Flood Insurance Act of 1968, as amended. 

        "National Priorities List" shall have the meaning specified in 40 C.F.R. Section 300.5. 

        "Net Cash Flow" shall mean, for any period, (a) all Revenues for such period, minus (b) the sum of (i) all amounts
paid by or on behalf of Homer City during such period in respect of fuel, administration, operation, maintenance, repairs and overhead, but excluding all capital expenditures which are funded with
equity contributions or Subordinated Debt, plus (ii) all taxes paid by Homer City during such period, plus (iii) all fees paid by Homer City relating to the financing activities during
such period. 

        "New Lessor Notes" shall have the meaning specified in the preamble of the Lease Indenture. 

        "New York State Electric and Gas Corporation" shall mean New York State Electric and Gas Corporation, a New York corporation. 

        "Non-Severable Improvements" shall mean any Improvement to the Facility that is not a Severable Improvement. 

        "Noteholders" shall mean each of the holders of the Lessor Notes, and each of such holder's successors and permitted assigns. 

        "NOx Agreement" shall mean that certain NOx Allowance Sales Agreement dated as of March 18, 1999 between Edison Mission Financial
Marketing and Trading Co., as buyer, ("EMFMT") and the Facility Lessee, as seller. 

        "Obsolescence Termination Date" shall have the meaning specified in Section 14.1 of
the Facility Lease. 

        "Offer" shall have the meaning specified in Section 17.1(e) of the Facility Lease. 

        "Offer Price" shall have the meaning specified in Section 17.1(e) of the Facility
Lease. 

        "Offering Circular" shall mean that certain $830,000,000 Edison Mission Holdings Co. offering circular for the issuance of 8.13% Senior
Secured Bonds due 2019 and 8.734% Senior Secured Bonds due 2026 dated as May 21, 1999. 

        "Officer's Certificate" shall mean with respect to any Person, a certificate signed by any Authorized Officer of such Person. 

        "OL Subordination Agreement" means that agreement between the Owner Lessor, Owner Participant and Lease Indenture Trustee dated as of
December 7, 2001. 

        "OM Company" shall mean Wells Fargo in its individual capacity. 

        "O&M Account" shall mean an account of the Facility Lessee with a banking institution in the United States that the Facility Lessee may
designate from time to time by written notice to the Depositary, established for holding funds for the payment of O&M Costs. 

        "O&M Costs" shall mean all actual cash maintenance and operation costs (excluding costs of fuel, emissions allowances and/or credits,
Capital Expenditures and Major Maintenance) incurred and paid, or if appropriate, to be incurred and paid, for the Facility in any particular calendar or fiscal year or period to which said term is
applicable, including payments with respect to Permitted Trading Activities, additives or chemicals and transportation costs, taxes, insurance, consumables, payments under the Facility Site Sublease
and other real property agreements pursuant to which the Facility Lessee has rights in the Facility Site, payments pursuant to the agreements for the management, operation or maintenance of the
Facility reasonable legal fees and expenses paid by the Facility Lessee in connection with the management, maintenance or operation of the Facility, fees paid in connection with obtaining,
transferring, maintaining or amending any Applicable Permits and reasonable general and administrative expenses, but exclusive in all cases of noncash charges, including depreciation or obsolescence
charges or reserves therefor, amortization of intangibles or other bookkeeping entries of a similar nature. For the avoidance of doubt, no amount which may become due and owing by the Facility Lessee
to EMMT under the Energy Sales Agreement shall be deemed to be an O&M Cost unless such amount is directly related to an amount owed by EMMT to an unrelated third party. 

        "Operational" with respect to Homer City Generating Station Units 1, 2 and 3 selective catalytic reduction (SCR) systems shall mean the
demonstrated operating history of the NOx concentration in the chimney not in excess of 0.43 lbs/mmBTU as a 30 day rolling average during the ozone season of 2002 and 0.15 lbs/mmBTU a
30 day rolling average during the ozone season of 2003, respectively. 

        "Operative Documents" shall mean the Participation Agreement, the Facility Deed, the Facility Lease, the Facility Site Lease, the
Memorandum of the Facility Lease, the Memorandum of the Facility Site Lease, the Facility Site Sublease, the Memorandum of the Facility Site Sublease, the Lease Indenture, the Lessor Notes, the Lessor
LLC Agreement, the Tax Indemnity Agreement, the Assignment and Assumption Agreement, the Bill of Sale, the Ownership and Operation Agreement, the OL Subordination Agreement, the Lease Subordination
Agreement, the Homer City Subordination Agreement, the Pledge and Collateral Agreement, the Amended and Restated Guarantee and Collateral Agreement, the Amended Security Deposit Agreement, the
Designated Representative Agreement, any Qualifying Credit Support, any Debt Service Reserve Letter of Credit (and any related application or reimbursement agreement), the Fundco Indenture, the
Mortgage, the Assignment and Subassignment Agreements, and, when executed and delivered, any OP Guaranty or any agreement with respect to Support Arrangements. 

        "OP Guarantor" means any Person that guarantees obligations of the Owner Participant or the Transferee pursuant to  Section 8.1(a)(iii) of the Participation
Agreement. 

        "OP Guaranty" shall mean a Guaranty that may be executed by the OP Guarantor substantially in the form attached as  Exhibit K to the Participation Agreement whereby
the OP Guarantor guarantees certain payment obligations of the Owner Participant under the
Operative Documents. 

        "Optional Improvement" shall have the meaning specified in Section 8.2 of the
Facility Lease. 

        "Organic Document" shall mean, with respect to any Person that is a corporation, its certificate of incorporation, its by-laws
and all shareholder agreements, voting trusts and similar arrangements applicable to any of its authorized shares of capital stock; with respect to any Person that is a limited partnership, its
certificate of limited partnership and partnership agreement; with respect to any Person that is a limited liability company, its certificate of formation and its limited liability company agreement,
in each case, as from time to time amended, supplemented, amended and restated, or otherwise modified and in effect from time to time; and with respect to any Person that is a business trust, its
certificate of business trust and its trust agreement, in each case, as from time to time amended, supplemented, amended and restated, or otherwise modified and in effect from time to time. 

        "Other Facility Leases" shall mean the other Facility Lease Agreements, dated as of December 7, 2001, by and between Homer City and
the Other Owner Lessors relating to the Other Homer City Lease Transactions, pursuant to which Homer City will lease the Other Undivided Interests from the Other Owner Lessors. 

        "Other Facility Lessees" shall mean the Facility Lessees under the Other Facility Leases. 

        "Other Facility Site Leases" shall mean the other Facility Site Leases, dated as of December 7, 2001, by and between Homer City and
the Other Owner Lessors, pursuant to which Homer City will lease the Other Ground Interests to the Other Owner Lessors. 

        "Other Facility Site Subleases" shall mean the other Facility Site Subleases, dated as of December 7, 2001, by and between the
Other Owner Lessors and Homer City, pursuant to which the Other Owner Lessors will sublease the Other Ground Interests to Homer City. 

        "Other Participation Agreements" shall mean those participation agreements dated the date hereof among the Facility Lessee and each of the
Other Owner Lessors and the other parties thereto in respect of the Other Undivided Interests. 

        "Other Ground Interests" shall mean the undivided leasehold interests in the Facility Site not conveyed to the Owner Lessor under the
Facility Site Lease. 

        "Other Homer City Lease Transactions" shall mean the transactions involving the transfer of the Other Undivided Interests and the lease of
the Other Ground Interests to the Other Owner Lessors, and the simultaneous lease of the Other Undivided Interests to Homer City and the simultaneous sublease of the Other Ground Interests to Homer
City on substantially the same terms and conditions as under, and dated the same date as, the Overall Transaction. 

        "Other Homer City Operative Documents" shall mean the "Operative Documents" with respect to each of the Other Homer City Lease
Transactions. 

        "Other Leveraged Lease Liabilities" shall mean the basic rent, supplemental rent, termination value or any other amount, liability or
obligation that Homer City is obligated to pay under the Other Facility Leases or the operative documents for the Other Homer City Lease Transactions. 

        "Other Owner Lessors" shall mean each Person holding the Other Undivided Interests pursuant to the Other Facility Leases. 

        "Other Owner Participants" shall mean each Person acting as an owner participant pursuant to the Other Participation Agreements. 

        "Other Undivided Interests" shall mean the undivided ownership interests in the Facility not conveyed to the Owner Lessor under the
Facility Deed. 

        "Overall Transaction" shall mean the transactions contemplated by the Operative Documents. 

        "Overdue Rate" shall mean, with (a) respect to (i) amounts due as Senior Rent, (ii) amounts owed by the Owner Lessors
on the Lessor Notes, or (iii) amounts owed on the Fundco Bonds, the Applicable Rate plus 1% per annum; and (b) with respect to all other amounts owed by the Facility Lessee under the
Operative Documents, the Applicable Rate plus 2% per annum. 

        "Owner Lessor" shall mean Homer City OL1 LLC, a Delaware limited liability company. 

        "Owner Lessor Lien" shall have the meaning specified in Section 7.2 of the
Participation Agreement. 

        "Owner Lessor's Interest" shall mean the Owner Lessor's right, title and interest in and to (a) the Undivided Interest and
(b) the Ground Interest under the Facility Site Lease. 

        "Owner Lessor's Percentage" shall mean that percentage interest set forth on  Schedule E to the Participation Agreement opposite the name of the Owner Lessor.

        "Owner Lessor's Rent Account" shall have the meaning specified in Section 3.5 of
the Facility Lease. 

        "Owner Manager" shall have the meaning specified in the preamble to the Participation Agreement. 

        "Owner Participant" shall mean General Electric Capital Corporation, a Delaware corporation. 

        "Owner Participant Lien" shall mean any Lien on the Lessor Estate or any part thereof arising as a result of (a) Claims against or
any act or omission of the Owner Participant that is not related to, or that is in violation of, any Operative Document or the transactions contemplated thereby or that is in breach of any covenant or
agreement of the Owner Participant set forth therein, (b) Taxes against the Owner Participant or any Affiliate thereof that are not indemnified against by Homer City pursuant to the Operative
Documents or (c) Claims against or affecting the Owner Participant or any Affiliate thereof arising out of the voluntary or involuntary transfer by the Owner Participant (except as contemplated
or permitted by the Operative Documents) of any portion of the interest of the Owner Participant in the Lessor Membership Interest. 

        "Owner Participant's Commitment" shall have the meaning set forth in Section 2.1(a)
of the Participation Agreement. 

        "Owner Participant's Counsel" shall mean Dewey Ballantine LLP. 

        "Owner Participant's Net Economic Return" with respect to the Owner Participant's Commitment shall mean the Owner Participant's
anticipated (a) net after-tax yield, calculated according to the multiple investment sinking fund method of analysis (as described in SFAS 13) and (b) aggregate
after-tax cash flow. 

        "Ownership and Operation Agreement" shall mean the Ownership and Operation Agreement, dated as of December 7, 2001, among Homer
City, the Owner Lessor and each other Owner Lessor. 

        "Ownership Interest" shall mean each of the partnership interests in the Facility Lessee. 

        "Ownership Interestholders" shall have the meaning set forth in Section 5.18(a)(i)
of the Participation Agreement. 

        "PA Consulting" shall mean PA Consulting, Inc., a Virginia corporation. 

        "Participation Agreement" shall mean that certain Participation Agreement (PA1) dated as of December 7, 2001 among Homer City, the
Owner Lessor, the Owner Participant, the Owner Manager, the Lease Indenture Trustee, the Security Agent, Fundco and the Bondholder Trustee. 

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

        "Pennsylvania Electric Company" shall mean Pennsylvania Electric Company, a Pennsylvania corporation. 

        "Pension Plan" shall mean a "pension plan," as such term is defined in Section 3(2) of ERISA (other than a Multiemployer Plan), and
to which any member of the Controlled Group has any liability, including any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time
during the preceding five years, or by reason of being deemed to be a contributing sponsor under the preceding five years, or by reason of being deemed to be a contributing sponsor under
Section 4069 of ERISA or having an obligation to contribute under Section 4212 of ERISA. 

        "Permit" shall mean any action, approval, certificate, consent, waiver, exemption, variance, franchise, order, permit, authorization,
right or license of or from, and any filing with a Governmental Authority. 

        "Permitted Asset Sales" shall mean: 

        (a)   Sales
of inventory (including, but not limited to, fuel), products, emission allowances and/or credits or obsolete items and other similar dispositions and sales of
energy, capacity and ancillary services, in the ordinary course of business consistent with Prudent Industry Practice; provided, however, that with
respect to sales or dispositions of emission allowances and/or credits, actions taken in compliance with the following guidelines shall be deemed to be "in the ordinary course" and in accordance with
Prudent Industry Practice: 

	•
	Emission
allowances and/or credits that have been allocated to the Facility which may be applied by the Facility at any time during the 365 day period following the
date of the proposed sale (the "Allowance Year") may be sold, traded, pledged or otherwise disposed of at any time unless a Lease Event of Default has occurred and is continuing;

	•
	Emission
allowances and/or credits beyond the Allowance Year may only be sold, traded, pledged or otherwise disposed of if (i) no Lease Event of Default has occurred
and is continuing; and (ii) the amount of allowances and/or credits allocated or reasonably expected to be allocated to the Facility for such years is in excess of the amount of allowances
and/or credits reasonably estimated by the Facility Lessee to be required by the Facility to operate in such years at the Facility Lessee's projected level of operations, such that the amount of
allowances and/or credits sold, traded, pledged or otherwise disposed of is reasonably expected by the Facility Lessee to be surplus to the needs of the Facility for such year or years;

	•
	Emission
allowances and/or credits useable in any year if, simultaneous with any sale or other disposition, Homer City purchases allowances and/or credits issued with
respect to another year but which allowance and/or credit is useable in the same year as the year of the allowance and/or credit that was sold, such that after giving effect to such sale and purchase,
the Facility has available for use the same amount of allowances and/or credits for the relevant year as it did prior to such sale and purchase; and

	•
	Transactions
with counterparties rated at least Investment Grade whereby Homer City transfers title to an allowance and/or credit to such counterparty in return for such
counterparty's agreement to transfer back to Homer City an identical allowance and/or credit at an agreed future date that is prior to the date by which the Facility will need such allowance and/or
credit for its operations; 

        (b)   Restricted
Payments (in each case made in cash or Cash Equivalent Investments) permitted under Section 6.10 of the
Participation Agreement; 

        (c)   any
transaction permitted under Section 6.1 of the Participation Agreement; and 

        (d)   any
assignment of Homer City's leasehold interest in the Facility permitted under Section 22.4 of the Facility
Lease or any sublease permitted under Section 19.1 of the Facility Lease. 

        "Permitted Encumbrances" shall mean (a) the interests of Homer City, the Owner Participant, the Owner Lessor, the Owner Manager and
the Lease Indenture Trustee under any of the Operative Documents; (b) all Owner Lessor Liens, Owner Participant Liens and the Security Interest; (c) Liens for Taxes, water, sewage,
license, permit or inspection fees either not yet due and payable or being contested in good faith by appropriate proceedings (and in respect of which adequate cash reserves have been set aside) so
long as such proceedings could not reasonably be expected to result in a Material Adverse Effect; (d) the reversionary interests of Homer City in the Facility Site;(e) the interests of the
Owner Lessor and the Other Owner Lessors in the Ownership and Operation Agreement; (f) Liens created or expressly permitted by any of the Operative Documents for the sole purpose of paying all
amounts due and owing under the Operative Documents; (g) construction materialmen's, mechanics', workers', repairmen's, employees' or other like Liens arising in the ordinary course of business
for amounts either not overdue for a period of not more than 30 days or being contested in good faith by appropriate proceedings (and in respect of which adequate cash reserves 

have
been set aside) so long as such proceedings do not involve a material risk of the sale, forfeiture or loss of the Facility; (h) Liens arising solely by order of a court or tribunal or
other Governmental Authority (or by any agreement of similar effect) so long as such Lien is being contested in good faith and is appropriately bonded or reserved against and any appropriate legal
proceedings that may have been initiated for review of such order have not been finally terminated or the period within which such proceeding may be initiated has not expired; (i) applicable
zoning and building regulations and ordinances from time to time in effect which do not affect the use, operation or maintenance of the Facility except to an insignificant extent; (j) the
interest of a sublessee in the Undivided Interest or the Facility under a permitted sublease; (k) Liens, easements, encumbrances, restrictions, defects or irregularity of title that in the
aggregate are not substantial in amount and do not materially detract from the value of the Undivided Interest, the Facility or the Facility Site and do not materially impair the use, operation or
maintenance of the Facility or the Facility Site; and (l) all matters shown as exceptions on Schedule B to each of the Title Policies as
in effect on the Closing Date. 

        "Permitted Indebtedness" shall have the meaning specified in Section 6.7 of the
Participation Agreement. 

        "Permitted Investments" shall mean (a) obligations issued or guaranteed as to principal and interest (including money market
securities) by (i) the United States of America or (ii) any agency thereof for which its obligations are backed by the full faith and credit of the United States of America, and
certificates evidencing ownership of the right to the payment of the principal of and interest on such obligations, provided that such obligations are held in the custody of an Acceptable Credit
Provider in a special account separate from the general assets of such custodian, (b) certificates of deposit or other interest-bearing obligations of the Collateral Agent, an Acceptable Credit
Provider or other bank with long-term unsecured debt rated either "AAA" by S&P or "Aaa" by Moody's, or "A" or higher by S&P and "A2" or higher by Moody's; (c) commercial paper,
money market securities and other corporate debt securities rated, on the date of purchase, "A-1" by S&P or "P-1" by Moody's or higher for securities with original maturities
of less than one year and "AAA" by S&P and "A2" or higher by Moody's, for securities with original maturities of one year or greater and maturing not more than one year from the date of acquisition
thereof; and (d) obligations pursuant to the SocGen Instrument. 

        "Permitted Trading Activities" shall mean Trading Activities that, in each case, conform with the trading guidelines established from time
to time by EME's applicable risk management committee; provided, that such guidelines shall be consistent with the risk management guidelines established from time to time by EME's applicable risk
management committee and applicable to other similarly situated North American generating assets owned or controlled by EME or any subsidiary thereof. Notwithstanding the foregoing, (a) no
Trading Activity shall constitute a "Permitted Trading Activity" if it is a speculative Trading Activity, (b) all Permitted Trading Activities shall be conducted with Persons who are rated
Investment Grade (provided that the restriction set forth in this clause (b) shall not apply to physical purchases of fuel (and related transportation and other ancillary fuel services)
intended for consumption at the Facility); (c) no Permitted Trading Activity shall have a term exceeding one year unless (i) the pro forma financial results of such Permitted Trading
Activity, when taken together with the pro forma financial results of all other Permitted Trading Activities to which the Facility Lessee is then a party, produce a pro forma minimum Basic Rent
Service Coverage Ratio at all times during the term of such Permitted Trading Activity that is at least 1.2 to 1.0 (provided that the restriction set forth in this clause (c) shall not apply to
physical purchases of fuel (and related transportation and other ancillary fuel services) intended for consumption at the Facility); (ii) any such forward sale of energy shall be permitted to
be made only if the Facility Lessee has contracted to purchase fuel in an amount sufficient to generate the energy being sold; and (iii) any such forward sales of energy for a term exceeding
ten years shall be consistent with Prudent Industry Practice and the Owner Participant shall have consented to the Facility Lessee's entry into such sale (such consent not to be unreasonably
withheld); (d) at no time may the output of all three of Homer City's units be committed to any third party on a forward (i.e., more than day-ahead) basis; (e) forward sales
may only be entered into with an unaffiliated third party if the senior unsecured indebtedness of the Facility 

Lessee
is rated at least Investment Grade by one or more Rating Agencies (or the Facility Lessee has an equivalent counterparty rating); and (f) Homer City will not enter into Trading
Activities on a forward basis obligating it to pay liquidated damages in respect of a failure by any of the three Homer City generating units to deliver contracted energy during the period for which
such units are committed unless the aggregate amount of such obligations is less than or equal to $200 million. 

        "Person" shall mean 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. 

        "Phase I Environmental Survey" shall mean a study, conducted in accordance with standards promulgated by the American Society for Testing
and Materials or an equivalent environmental site assessment conducted pursuant to current good customary and commercial practice, that (a) evaluates the potential for Environmental Conditions
to exist at the property that is the subject of the study as a result of historical or current operations or activities at said property and (b) evaluates whether the subject property is in
substantial compliance with applicable Environmental Laws. 

        "Phase II Environmental Survey" shall mean a study that includes sampling and analysis of soil, groundwater and/or other environmental
media, conducted pursuant to good customary and
commercial practice, that evaluates potential Environmental Conditions determined in a Phase I Environmental Survey to exist at the property that is the subject of the study. 

        "Plan" shall mean any "employee benefit plan" (as defined in Section 3(3) of ERISA) that is subject to ERISA, any "plan" (as
defined in Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code, any trust created under any such plan or any "governmental plan" (as defined in
Section 3(32) of ERISA or Section 414(d) of the Code) that is organized in a jurisdiction having prohibitions on transactions with government plans similar to those contained in
Section 406 of ERISA or Section 4975 of the Code. 

        "Pledge and Collateral Agreement" shall mean that pledge and collateral agreement between Edison Mission Holdings Co. and the Collateral
Agent, dated as of December 7, 2001. 

        "Pledged Accounts" shall mean the Revenue Account, the Senior Rent Payment Account, the Recovery Event Proceeds Account and the Equity
Account. 

        "Power Market Consultant" means PHB Hagler Bailly, Inc. or another nationally recognized power market consulting firm which, as
Power Market Consultant, will perform a market study of certain markets relating to the Facilities and develop independent electricity price forecasts for the benefit of certain Lease Transaction
Parties. 

        "Power Sales Agreements" shall mean (1) that certain Power Sales Agreement, dated April 19, 2001, between EMMT and Homer
City; (2) that certain Power Sales Agreement, dated April 19, 2001, between EMMT and Homer City; (3) that certain Power Sales Agreement, dated May 1, 2001, between EMMT and
Homer City; and (4) that Power Sales Agreement, dated May 18, 2001, between EMMT and Homer City; 

        "Pricing Assumptions" shall mean the "Pricing Assumptions" attached as  Schedule 8.1(c) to the Participation Agreement. 

        "Project Documents" shall mean (a) the Material Project Agreements, the Power Sales Agreements, guarantees by the Facility Lessee
of Permitted Trading Activities, the real property documents under which the Facility Lessee has an interest in the Facility Site and the Easements, the Ownership and Operation Agreement, the
Interconnection Agreement, the Homer City Partnership Agreement, and (b) any other material agreement, if and when entered into, between the Facility Lessee and any Affiliate of the Facility
Lessee or between the Facility Lessee and any third party relating to the ownership, use, operation or maintenance of the Facility. 

        "Proportional Rent" shall have the meaning specified in Section 3.2(c) of the
Facility Lease. 

        "Prudent Industry Practice" shall mean, at a particular time, (a) any of the practices, methods and acts engaged in or approved by
a significant portion of the competitive coal fired electric generating industry operating in the eastern United States at such time, or (b) with respect to any matter to which
clause (a) does not apply, any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been
expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Prudent Industry Practice is not intended to be limited to
the optimum practice, method or act to the exclusion of all others, but rather to be a spectrum of possible practices, methods or acts having due regard for, among other things, manufacturers'
warranties and the requirements of any Governmental Authority of competent jurisdiction. 

        "PUHCA"—see "Holding Company Act." 

        "Purchase Price" shall mean the consideration to be paid by the Owner Lessor to the Facility Lessee for the Undivided Interest, consisting
of (i) payment in cash equal to the Owner Lessor's Percentage of the Total Equity Investment (such dollar amount being set forth on  Schedule F to the Participation Agreement opposite the Owner
Lessor's name) and (ii) the assumption by the Owner Lessor of the Owner
Lessor's Percentage of the Existing Debt. 

        "Qualifying Cash Bids" shall have the meaning specified in Section 13.2 of the
Facility Lease. 

        "Qualifying Credit Support" shall mean an irrevocable, unconditional, uncollateralized, standby letter of credit or surety bond
substantially in the form of Exhibit L to the Participation Agreement, issued in favor of the Owner Lessor by a Qualifying Credit Support Issuer
(and, so long as the Lessor Notes are outstanding and the Lien of the Lease Indenture shall not have been discharged, assigned to the Lease Indenture Trustee) securing the Facility Lessee's obligation
to pay scheduled Rent under the Facility Lease; provided that, in the case of a surety bond, each of S&P and Moody's shall have confirmed its then current rating on the Fundco Bonds prior to the
Facility Lessee's first use of a surety bond as Qualifying Credit Support. 

        "Qualifying Credit Support Issuer" shall mean any bank or other financial institution having a long term unsecured debt rating of at least
A or higher from S&P and A2 or higher from Moody's. A Qualifying Credit Support Issuer shall cease to be a Qualifying Credit Support Issuer if such entity shall at any time be rated below the
applicable ratings set forth in the immediately preceding sentence. 

        "Qualifying Special Lessee Transfer Bids" shall have the meaning set forth in  Article XV of the Participation Agreement. 

        "Rating Agencies" shall mean S&P and Moody's. 

        "Reasonable Basis" shall have the meaning specified in Section 6662(d)(2)(B)(ii)(II) of the Code (or such other level of
confidence required by the Code at that time to avoid the imposition of penalties). 

        "Rebuild Conditions" shall have the meaning set forth in Section 10.4 of the
Facility Lease. 

        "Recovery Event Proceeds" shall have the meaning set forth in Section 1.1 of the
Amended Security Deposit Agreement. 

        "Regulations T, U and X" shall mean Regulations T, U and X of the Federal Reserve System of the United States (or any successors thereto). 

        "Regulatory Event of Loss" shall mean an Event of Loss specified in clause (iv) of the definition of "Event of Loss." 

        "Reinvestment Notice" shall mean a notice executed an Authorized Officer to the Owner Participant, the Collateral Agent, the Lease
Indenture Trustee and the Bondholder Trustee relating to an Event of Loss (a) setting forth in reasonable detail the nature of the proposed restoration or replacement relating to such Event of
Loss and the estimated cost and time to complete such restoration or replacement and (b) stating that (i) no Material Lease Default or Lease Event of 

Default
has occurred and is continuing, (ii) such restoration or replacement is technologically and economically feasible, (iii) the net cash proceeds of such Event of Loss, together
with other resources available to the Facility Lessee, are sufficient to pay the estimated cost of completing such restoration or replacement and (iv) the Facility Lessee has sufficient
resources (through business interruption insurance or otherwise) to pay all principal, interest and other fixed charges projected to become due and payable with respect to Basic Lease Rent (or Renewal
Rent) prior to the completion of such restoration or replacement; provided, however, that with respect to the receipt of proceeds of $50,000,000 or more
on account of an Event of Loss described in clauses (i), (ii), (iii) and (v) of the definition of Event of Loss, the independent engineer shall have certified as to the reasonableness,
in light of Prudent Industry Practice, of the Facility Lessee's repair and replacement plans as set forth in the Reinvestment Notice related to such Event of Loss. 

        "Related Party" shall mean, with respect to any Person or its successors and assigns, an Affiliate of such Person or its successors and
assigns and any director, officer, servant, employee or agent of that Person or any such Affiliate or their respective successors and assigns; provided
that none of the OM Company, the Owner Manager or the Owner Lessor shall be treated as Related Parties to each other and none of the OM Company, the Owner Lessor or the Owner Manager shall be treated
as a Related Party to the Owner Participant, except that, for purposes of Section 10 of the Participation Agreement, the Owner Lessor shall be
treated as a Related Party to the Owner Participant to the extent that the Owner Lessor acts at the express written direction or with the express written consent of the Owner Participant. 

        "Renewal Lease Term" shall mean the First Renewal Lease Term, the Second Renewal Lease Term or any FMV Renewal Lease Term. 

        "Renewal Option" shall mean the First Renewal Option, the Second Renewal Option, or either of them, as the context may require. 

        "Renewal Rent" shall mean the scheduled Rent payable on each Rent Payment Date during any First Renewal Lease Term, Second Renewal Lease
Term or FMV Renewal Lease Term, in each case as determined in accordance with Section 15.3 of the Facility Lease. 

        "Rent" shall mean Basic Lease Rent, Renewal Rent, if any, and Supplemental Lease Rent. 

        "Rent Default Event" shall mean the failure to make any payment of Component A of Basic Lease Rent, when due, and such failure shall
continue unremedied for five (5) Business Days. 

        "Rent Payment Date" shall mean (a) the Closing Date, (b) the 1st day of April and the 1st day of October of each year during
the Facility Lease Term, and (c) any date on which Senior Rent of the type specified in clause (b) of the definition thereof is payable. 

        "Rent Payment Period" shall mean each of the periods set forth on  Schedule 1-2 to the Facility Lease. 

        "Replacement Component" shall have the meaning specified in Section 7.2 of the
Facility Lease. 

        "Reportable Event" shall mean any of the events set forth in Section 4043(b) of ERISA, other than those events as to which the
thirty day notice period is waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg. Section 2615. 

        "Required Improvement" shall have the meaning specified in Section 8.1 of the
Facility Lease. 

        "Requirement of Law" shall mean, as to any Person, the Organic Documents of such Person, and any law (including any Environmental Law),
treaty, rule, regulation, judgment, decree, injunction, writ or order of any court, arbitration board of any Governmental Authority and any rule, regulation, order, ordinance, license or permit of any
Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

        "Requisition" shall have the meaning specified in clause (iii) of the definition of "Event of Loss." 

        "Reserve Account" shall mean an account of the Facility Lessee maintained with the Depositary as required by  Section 5.13 of the Participation Agreement into which the Reserve Requirement shall be deposited, held and distributed as set forth in the
Amended Security Deposit Agreement. 

        "Reserve Requirement" shall mean, as of the date of determination, that amount in Dollars set forth on  Schedule B to the Participation Agreement corresponding to
the date of such determination. 

        "Reservoir Site Easements" shall mean those easements to be granted to the Owner Lessor as set forth on  Exhibit I to the Facility Site Lease. 

        "Restricted Payments" shall mean the making of any of the following: (a) distributions in respect of the equity interests in the
Facility Lessee (in cash, property, securities or obligations other than additional equity interests of the same type), (b) any other payments or distributions on account of payments of
interest, the setting apart of money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of any portion of any equity interest in the Facility
Lessee or of any warrants, options or other rights to acquire any such equity interest (or to make any payments to any Person, such as "phantom stock" payments, where the amount thereof is calculated
with reference to fair market or equity value of the Facility Lessee), or (c) any payment on or with respect to, or purchase, redemption, defeasance or other acquisition or retirement for value
of any Subordinated Indebtedness. 

        "Restricted Payment Date" shall mean the Closing Date and any January 1st, April 1st,
July 1st, and October 1st of each year, or, if such day is not a Business Day, the next succeeding Business Day. 

        "Retained Homer City Land Easements" shall mean those easements to be granted to the Owner Lessor as set forth on  Exhibit G to the Facility Site Lease. 

        "Return Conditions" shall have the meaning specified in Section 5.2 of the Facility
Lease. 

        "Revenue Account" shall mean the account of the Facility Lessee maintained with the Depositary into which all Project Revenues will be
deposited, held and distributed as set forth in the Amended Security Deposit Agreement. 

        "Revenue Procedures" shall mean any revenue procedure issued by the Department of Treasury. 

        "Revenue Rulings" shall mean any revenue ruling issued by the Department of Treasury. 

        "Revenues" shall mean, for any period, all income and receipts received by Facility Lessee during such period including any income and
receipts derived from the operation of the Facility, including proceeds of any Permitted Asset Sales, any business interruption insurance, income derived from the sale or use of energy transmitted or
distributed by the Facility, together with any receipts derived from Permitted Trading Activities or incidental to the operation of the Facility, all as determined in conformity with cash accounting
principles, the investment income on amounts in the Accounts, proceeds of any insurance, condemnation or litigation or arbitration awards relating to the Facility, and all other revenues of the
Facility Lessee, however generated, but not including Excepted Payment or Recovery Event Proceeds. 

        "Revised Development Presentation" shall have the meaning specified in Article XVI
of the Participation Agreement. 

        "S&P" shall mean Standard & Poor's Ratings Services (a division of McGraw-Hill Companies, Inc.) and its
successors and assigns. 

        "SASM&F" shall mean Skadden, Arps, Slate, Meagher & Flom LLP. 

        "Scheduled Closing Date" shall mean December 7, 2001 and any date set for Closing in a notice of postponement pursuant to  Section 2.2 of the Participation
Agreement. 

        "SCR Construction Contract" shall mean that certain Turnkey Engineering, Procurement and Construction Contract, dated as of
April 7, 1999, by and between Homer City and ABB Environmental 

Systems,
division of ABB Flakt, Inc., a corporation duly organized and existing under the laws of Delaware. 

        "Second Renewal Lease Term" shall have the meaning specified in Section 15.1 of the
Facility Lease. 

        "Second Renewal Option" shall have the meaning specified in Section 15.2 of the
Facility Lease. 

        "Second Renewal Term" shall have the meaning set forth in Section 15.1(b) of the
Facility Lease. 

        "Section 467 Loan" shall have the meaning specified in Section 3.2(c) of the
Facility Lease. 

        "Securities Act" shall mean the Securities Act of 1933, or any similar federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time. 

        "Security Agent" shall mean The Bank of New York, a New York banking corporation. 

        "Security Documents" shall mean the Amended and Restated Guarantee and Collateral Agreement, the Pledge and Collateral Agreement, the
Amended Security Deposit Agreement, the Lease Subordination Agreement, the OL Subordination Agreement, the Mortgage, the Lease Indenture and the Fundco Indenture. 

        "Security Interest" shall mean the security interest in the Indenture Estate granted by the Owner Lessor to the Security Agent for the
benefit of the holders of the Lessor Notes and the issuer of the Debt Service Reserve Letter of Credit pursuant to the Lease Indenture and in connection with the issuance of the Lessor Notes. 

        "Senior Rent" shall mean the amounts constituting (a) Component B of Basic Lease Rent as set forth on  Schedule 1.1 to the Facility Lease; plus (b)
 Component B of Termination Value as set forth on  Schedule 2 to the Facility Lease, or other amounts payable upon a termination of the Facility Lease in respect of or in connection with
Component
B of Basic Lease Rent or otherwise payable as a result of Section 3.4(c) of the Facility Lease; plus (c) fees, expenses and indemnities
payable with respect to the Debt Service Reserve Letter of Credit. 

        "Senior Rent Service Coverage Ratio" shall mean for any period, without duplication, a ratio the numerator of which is Net Cash Flow for
such period, and the denominator of which is the sum of Senior Rent under the relevant Lease and under all Other Facility Leases payable during such period; provided,
however, that any calculations of the Senior Rent Service Coverage Ratio with respect to the most recently ended Fiscal Quarter shall, with respect to the most recent month, be
based on estimated results only. 

        "Severable Improvement" shall mean any Improvement that is readily removable without causing material damage to the Facility. 

        "Selling Party" shall have the meaning specified in Article XV of the Participation
Agreement. 

        "SFAS 13" shall mean Statement of Financial Accounting Standards (SFAS) No. 13, as amended and interpreted from time to
time. 

        "Site Lease Term" shall have the meaning specified in Section 2.3(c) of the
Facility Site Lease. 

        "Site Sublease Term" shall have the meaning specified in Section 2.3 of the
Facility Site Sublease. 

        "Solicitation Agents" shall mean Credit Suisse First Boston and Lehman Brothers, Inc., in their capacities as solicitation agents
for the exchange of the Existing Debt for the Fundco Bonds. 

        "SocGen Instrument" shall mean that certain ISDA Master Agreement and all schedules thereto dated as of December 7, 2001 between
Homer City and Societe Generale, or any replacement or successor instrument entered into by Homer City on substantially similar terms, whether or not Societe Generale is the counterparty to such
successor instrument; provided that such instrument (a) requires scheduled payments and deposits to be made only on (i) April 1 and October 1 of any year, subject to the
Modified Business Day Convention (as defined in the SocGen Instrument), or (ii) on the Closing 

Date
and December 28, 2001, and (b) Homer City irrevocably directs the counterparty thereto (and such counterparty acknowledges) that payments shall be made directly into the Revenue
Account. 

        "Special Lessee Transfer" shall have the meaning specified in Article XV of the
Participation Agreement. 

        "Special Lessee Transfer Amount" shall mean for any date of determination, (i) Component A of Termination Value on such date;  plus (ii) any Rent payment under
the Facility Lease or the other Operative Documents due and unpaid on such date.
 

        "Sublease Ground Interest" shall mean Ground Interest as such term is incorporated by reference into the Facility Site Sublease pursuant
to Section 3 of the Facility Site Sublease. 

        "Subordinated Indebtedness" shall mean, with respect to any Lease Transaction Party, Indebtedness of such Person incurred in accordance
with the terms of the relevant subordination agreement applicable to such Person. 

        "Subsequent Lessor Note" shall have the meaning specified in Section 2.6 of the
Lease Indenture. 

        "Subsidiary" shall mean, with respect to any Person, any corporation, partnership, limited liability company or other entity of which more
than 50% of the outstanding capital stock, partnership interests or other equity interests having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective
of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency) or to control the management of such
partnership, limited liability company or other entity is at the time directly or indirectly owned by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more
other Subsidiaries of such Person. 

        "Supplemental Financing" shall have the meaning specified in Section 12.1(a) of the
Participation Agreement. 

        "Supplemental Lease Rent" shall mean any and all amounts, liabilities and obligations (other than Basic Lease Rent or Renewal Rent) which
Homer City assumes or agrees to pay under the Operative Documents (whether or not identified as "Supplemental Lease Rent") to the Owner Lessor or any other Person, including Termination Value,
Transaction Expenses, and any premium due on the Lessor Notes. 

        "Support Arrangements" shall have the meaning specified in Section 5.2(g) of the
Facility Lease. 

        "Support Services" shall mean, from and after expiration or termination of the Facility Lease, certain mutually agreed services and rights
necessary for the Owner Lessor (or any of its successors or permitted assigns) to be able to operate, use and maintain the Facility and sell power therefrom in a manner consistent with Lessee's
operation thereof during the Facility Lease Term (assuming such operation was in accordance with the terms of the Facility Lease), including (a) any services that may become necessary as a
result of the inability for whatever reason, of the Owner Lessor to hold any relevant permit (b) transmission rights and access rights available to the Facility Lessee during the Facility Site
Lease and (c) intellectual property rights obtained and maintained in accordance with Section 5.12 of the Participation Agreement. 

        "Survey" shall mean the ALTA/ACSM Land Title Survey, prepared by Hampton Technical Associates, Inc. for Chicago Title Insurance
Company, the Bondholder Trustee, the Owner Lessor and EME Homer City Generation L.P., dated May, 2001, including revisions thereto. 

        "Tax" or "Taxes" shall mean all fees (including, license, documentation and registration
fees), taxes (including, income, receipts, franchise, rental, turn over, excise, sales taxes, use taxes, stamp taxes, value-added taxes, ad valorem taxes and property taxes (personal and real,
tangible and intangible)), license, levies, exports, duties, recording charges or fees, assessments, withholdings and other charges and impositions of any nature, plus all related interest, penalties,
fines and additions to tax, now or hereafter imposed by any federal, state, local or foreign government or other taxing authority. 

        "Tax Advance" shall have the meaning set forth in Section 10.2(g)(iv)(E) of the
Participation Agreement. 

        "Tax Assumptions" shall have the meaning specified in Section 1 of the Tax
Indemnity Agreement. 

        "Tax Benefit" shall have the meaning set forth in Section 10.2(e) of the
Participation Agreement. 

        "Tax Claim" shall have the meaning set forth in Section 10.2(g)(i) of the
Participation Agreement. 

        "Tax Event" shall mean any event or transaction treated, for federal income tax purposes, as a taxable sale or exchange of the Lessor
Notes. 

        "Tax Indemnitee" shall have the meaning specified in Section 10.2 of the
Participation Agreement. 

        "Tax Indemnity Agreement" shall mean the Tax Indemnity Agreement, dated as of December 7, 2001 between the Owner Participant and
Homer City. 

        "Tax Law Change" shall mean any enactment, promulgation, release or adoption of, or amendment to, or change in the Code or Treasury
Regulations, Revenue Rulings, Revenue Procedures or other administrative interpretations or applicable judicial precedents. 

        "Termination Date" shall mean each of the monthly dates during the Facility Lease Term identified as a "Termination Date" on  Schedule 2 of the Facility Lease, which
dates shall be the same days on which Basic Lease Rent and Renewal Rent, if any, are payable under the
Facility Lease. 

        "Termination Value" shall mean, for any Termination Date, the Termination Values set forth under the column titled "Termination Value" on  Schedule 2 of the Facility
Lease for such Termination Date. 

        "Termination Value Payment Date" shall mean the date on which Termination Value is paid pursuant to  Section 10.2(a) of the Facility Lease. 

        "Title Policies" shall mean the following title policies issued by Chicago Title Insurance Company: 

        (a)   those
certain Leasehold Owner's Policy Nos. 01-0712A through 01-0712H, issued to the Owner Lessor and each Other Owner Lessor dated
December 7, 2001, insuring the Owner Lessor's and each Other Owner Lessor's (i) applicable percentage undivided leasehold interest in the Facility Site as lessee under the Facility Site
Lease and (ii) applicable percentage undivided fee interest in the Facility and 

        (b)   those
certain Leasehold Loan Policy Nos. 01-0712A through 01-0712H, issued to The Bank of New York, as Lease Indenture Trustee, dated
December 7, 2001, insuring the Lease Indenture Trustee's security interest in the Owner Lessor's and each Other Owner Lessor's (i) leasehold interest in the Facility Site Lease and
(ii) fee interest in the Facility. 

        "Total Equity Investment" shall mean $798,000,000.00. 

        "Trading Activities" shall mean (a) the daily or forward purchase and/or sale, or other acquisition or disposition, of wholesale
electric energy, capacity, transmission rights, emissions allowances and/or credits, weather derivatives and/or related commodities, either physical or financial, (b) the daily or forward
purchase and/or sale, or other acquisition or disposition, of fuel, mineral rights and/or related commodities, including swaps, options and swaptions, either physical or financial, (c) electric
energy-related tolling transactions, as seller of tolling services, or (d) other similar electric industry activities consistent with industry activities conducted by similarly situated
industry participants in the ordinary course of their business from time to time, in each case consistent with risk management activities approved by the risk management committee of EME. 

        "Transaction Documents" shall mean, collectively, the Operative Documents and the Project Documents. 

        "Transaction Expenses" shall be as set forth in Schedule 2.3(a) to the
Participation Agreement, and consist of the following costs and expenses incurred in connection with the negotiation, due diligence and consummation of the Overall Transaction: 

        (a)   the
cost of the Closing Date Appraisal, the cost of title insurance, if obtained, filing and recording fees and taxes set forth on  Schedule 2.3(a) to the Participation Agreement, the Consent Payment,
the fees and expenses of the Engineering Consultant, the Environmental
Consultant, the Power Market Consultant, the Insurance Consultant, and any other consultants retained by the Owner Participant (excluding any fees or compensation to its advisors but including the
reasonable out-of-pocket expenses of the Owner Participant's Advisor) and approved in advance by Homer City, which approval may not be unreasonably withheld; 

        (b)   the
reasonable legal fees, expenses and disbursements of each of the Owner Participant, the Owner Lessor and the Owner Manager and their respective counsel; 

        (c)   the
reasonable legal fees, expenses and disbursements of the Lease Indenture Trustee and its respective counsel; 

        (d)   at
Homer City's option, all or a portion of Homer City's legal fees and reasonable out-of-pocket cost and expenses related thereto; 

        (e)   the
fees of the Rating Agencies in connection with rating the Existing Debt; and 

        (f)    other
reasonable, documented out-of-pocket expenses of the Owner Lessor, Owner Participant and the Lease Indenture Trustee, including costs of
title insurance and fees and expenses, if any, related to delivery of any non-consolidation opinions. 

        "Transferee" shall have the meaning specified in Section 8.1(a) of the
Participation Agreement. 

        "Treasury Regulations" shall mean regulations, including temporary regulations, promulgated under the Code. 

        "Undivided Interest" shall have the meaning specified in the recitals to the Facility Lease. 

        "Uniform Commercial Code" or "UCC" shall mean the Uniform Commercial Code as in effect in
the applicable jurisdiction. 

        "United States" or "U.S." shall mean the United States of America. 

        "Verifier" shall have the meaning specified in Section 3.4(d) of the Facility
Lease. 

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

        "Wells Fargo" shall mean Wells Fargo Bank Northwest, National Association, a national banking association. 

QuickLinks

Exhibit 4.4.2

APPENDIX A—DEFINITIONS

Exhibit 4.4.2

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