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Exhibit 10.3

EDISON MISSION ENERGY
BV SALE INCENTIVE PLAN—AUSTRALIA

        1.    Establishment of the Plan.    Edison Mission Energy, a Delaware
corporation (the "Company"), hereby establishes this BV Sale Incentive
Plan—Australia (the "Plan"), effective as of February 19, 2004 (the "Effective
Date"), for the benefit of certain key employees of the Company and certain of
its Subsidiaries (as defined below) and affiliates.

        2.    Purpose.    The Board of Directors (the "Board") of the Company
has determined that it is in the best interest of the Company and its
shareholder to pursue the possibility of accomplishing one or more transactions
(together, as defined below, the "Covered Transaction") which would result in a
sale or other disposition of all or substantially all of MEC International BV
(the "BV"). In that connection, the Board believes that it is in the best
interests of the Company and its shareholder that the Participants (as defined
below), who are among the key employees of the Company and certain of its
Subsidiaries and affiliates, remain in their Employer's employ during the period
in which the Board is pursuing the Covered Transaction, be provided with
additional incentives to develop the most desirable alternatives for the Company
and its shareholder and be eligible to receive certain bonuses for their efforts
in developing such transaction and putting the Company in a position where its
shareholder may receive the benefits of a disposition of BV. Therefore, in order
to accomplish these objectives, the Board has caused the Company to establish
this Plan. For purposes of the Plan, the assets of the BV will be deemed to
include the interest of Mission Energy Wales (U.S.) ("MEW U.S.") in the Mission
Hydro Ltd. Partnership (UK) ("Mission Hydro").

        3.    Defined Terms.    For purposes of the Plan, the following terms
(in addition to the defined terms set out above) shall have the meanings
indicated:

        (a)   "ANSP" means the aggregate cash and non-cash consideration
received by BV or the shareholders or Subsidiaries and affiliates of the BV, as
the case may be, as seller(s) in the Covered Transaction, excluding for these
purposes any obligations of the BV or its subsidiaries that are assumed by, on
behalf of, or for the Purchaser, and subject to the following:

        (i)    ANSP shall include the following, if and when paid to BV or its
shareholders or subsidiaries, as the case may be, as sellers in the Covered
Transaction: (A) any and all deferred installments of the sale price, (B) any
portion of the sale price held in escrow subsequent to the Closing Date if and
to the extent actually released from escrow, and (C) any consideration paid by
the Purchaser after the Closing Date upon the occurrence of any specified
contingencies or the satisfaction of any specified performance objectives;

        (ii)   ANSP shall be determined without giving effect to the payments
under this Plan;

        (iii)  ANSP shall be net of, or otherwise reduced by, the following:
(A) any severance and retention payments associated with the Covered
Transaction; (B) any indebtedness or other liability of BV or one of its
subsidiaries related to or arising in connection with the transferred assets or
operations that is retained or discharged by the Company or its affiliates,
including, without limitation, contributions made to project or related entities
in connection with the sale transaction; (C) any U.S., foreign and local income,
transfer and other taxes, assessments and governmental levies realised,
incurred, attributed to or related in any manner to the sale of the BV and its
subsidiaries, including taxes imposed on the distribution of proceeds to or by
the BV and its subsidiaries and tax impacts related to the liquidation or
restructuring of the interest of MEW US in the Mission Hydro in connection with
the sale; and (D) transaction costs incurred and paid or payable by the Company
or any of its Subsidiaries, parents or other affiliates including, without
limitation (1) commitment, broker, advisory, investment banking, appraisal,
fairness opinion, financing and underwriting fees, commissions and discounts,
(2) recording, insurance, filing, legal, travel, printing costs and other
similar fees, costs and expenses, (3) claims arising or paid in connection with
the sale, including costs of defense,

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(4) costs of consents, waivers or settlements to facilitate sale, and (5) any
other direct expenses associated with the sale; and

        (iv)  ANSP shall include the proceeds of a sale of interests in or
assets of BV only if such sale is specifically approved in advance of the
Closing Date of the Covered Transaction by the Board. If substantially all (but
not the entirety) of BV is sold, any sale of a remaining component that occurs
more than six (6) months after the Closing Date of the Covered Transaction will
not, unless otherwise provided by the Board at the time of the sale, be included
in ANSP. ANSP shall be adjusted to give effect to any such sale within such
six-month period.

        (b)   "Base Salary" means the Participant's annual base salary of record
for benefit purposes paid to a Participant by the Company and/or one or more
Employers (whether or not deferred), but excludes (i) incentive, retention,
signing or other bonus compensation, (ii) severance, and (iii) any other form of
compensation or benefit.

        (c)   "Base Salary Multiplier" means the factor by which a Participant's
Base Salary shall be multiplied to determine the amount of the Participant's
Sale Bonus, which factor may vary between particular Participants and may be
determined based on the aggregate ANSP received in connection with the Covered
Transaction.

        (d)   "Beneficiary" means the individual person or entity determined
designated or deemed designated under Section 11(d) of the Plan.

        (e)   "Board" means the Board of Directors of the Company.

        (f)    "Cause" means the occurrence of any one or more of the following:

        (i)    The Participant's conviction for, or pleading guilty to,
committing an act of fraud, embezzlement, theft, or other criminal act
punishable by a term of imprisonment of 6 months or more;

        (ii)   A significant adverse change in the Participant's performance of
his or her duties (which duties shall include, but not be limited to, the
Participant's customary duties as well as any reasonable duties that may be
assigned to him or her to help effect the Covered Transaction), including but
not limited to a failure to comply with the Company's policies and instructions
regarding the sale of BV and the confidentiality of certain information related
thereto; or

        (iii)  The willful engaging by the Participant in misconduct that:
(A) if the event giving rise to the termination of the Participant's employment
occurs before the sale of the Participant's Employer or while the Participant is
otherwise employed by an Employer, is in violation of the Company's and/or the
Participant's Employer's policies and practices applicable to the Participant
from time to time; or (B) if the event giving rise to the termination of the
Participant's employment occurs after the sale of the Participant's Employer
when the Participant is no longer employed by an Employer, would have resulted
in the termination of the Participant's employment by the Company or the
Participant's Employer under the Company's and/or the Participant's Employer's
policies and practices applicable to the Participant in effect immediately prior
to such sale. However, no act or failure to act, on the Participant's part,
shall be considered "willful" unless done, or omitted to be done, by the
Participant not in good faith and without reasonable belief that his or her
action or omission was in the best interest of the Company and his or her
Employer.

        (g)   "Closing Date" means the date of the closing of a Covered
Transaction or Covered Sale, as the case may be, as determined in accordance
with the definitive agreements entered into to effect such transaction.

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        (h)   "Covered Sale" means a sale of the Participant's Employer in a
transaction that results in the Participant (by consent) becoming employed by
the Purchaser thereof or an affiliate of such Purchaser that is not an Employer.

        (i)    "Covered Transaction" means one or more transactions outside of
the ordinary course that amount, in the aggregate, to a sale of all or
substantially all of the assets or interests of BV, provided that a transaction
included in the Covered Transaction must be specifically approved by the Board
in advance of the consummation of the Covered Transaction. For purposes of this
definition, "substantially all" shall mean stock or interests in and assets of
BV (including stock and interests in Subsidiaries) (including EcoElectrica)
representing or generating at least 90% of BV's 2003 revenue base as set out in
the attached Exhibit A; provided that the Board may, in its discretion, lower
the 90% threshold in light of all circumstances existing at the time of the sale
and the degree to which the Company has exited the international market.

        (j)    "Employer" means the Company or any Subsidiary or affiliated
business of the Company that employs the Participant.

        (k)   "Good Reason" means, without the Participant's express consent:

        (i)    a material reduction by the Participant's Employer of the
aggregate value of the compensation (including current compensation and
long-term incentive opportunities) and benefits paid and provided, as the case
may be to the Participant; or

        (ii)   a significant reduction by the Participant's employer in the
Participant's duties or responsibilities; or

        (iii)  a significant change in location of the workplace which is a
question of fact and degree.

For the purpose of sub-clause (i), in no event will the BV Sale, in and of
itself, constitute a reduction of compensation or long-term incentive award
opportunities.

        (l)    "Initial Estimate" means the estimate described in Section 8.

        (m)  "Participant" means any person who is a participant in this Plan as
determined in accordance with Section 5.

        (n)   "Participation Agreement" means an agreement between the Company,
for and on behalf of the Employer, and the Participant as described in
Section 5.

        (o)   "PAYG Withholding" has the same meaning as in Schedule 1 to the
Taxation Administration Act 1953 (Cth).

        (p)   "Purchaser" means any person or entity or affiliate thereof that
has purchased all or any part of the assets or interests of BV outside the
ordinary course in a transaction that is included in the Covered Transaction.

        (q)   "Sale Bonus" means an unfunded right to receive a payment under
this Plan.

        (r)   "Sale Bonus Payment Scheme" means the scheme nominated in a
Participant's Participation Agreement, which establishes the manner and timing
of the payment of a Sale Bonus in accordance with in Section 8.

        (s)   "Subsidiary" means any corporation or other entity a majority of
whose outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Company.

        (t)    "Term of the Plan" means the period of time beginning on the
Effective Date and ending on the first to occur of: (A) July 1, 2005, unless a
written agreement or written letter of intent is in place that, on July 1, 2005,
has been approved by the Board and that relates to a transaction or

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series of transactions that would (if consummated) result in a Covered
Transaction or (B) a determination by the Board that a Covered Transaction is
not reasonably expected to occur on or before July 1, 2005; provided that the
Board may, in its discretion, extend the term of the Plan beyond such date.

        (u)   "USD" means United States dollars.

        4.    Administration.    

        (a)   The Plan shall be interpreted, administered and operated by the
Board. The Board shall have complete authority, in its sole discretion subject
to the express provisions of the Plan, to determine who shall be a Participant,
to interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan, including whether, for purposes of
the Plan, a termination of a Participant's employment has been with or without
Cause or for Good Reason. Notwithstanding the foregoing, the Board may delegate
any of its duties hereunder to such person or persons from time to time as it
may designate.

        (b)   All expenses and liabilities that members of the Board incur in
connection with the administration of the Plan shall be borne by the Company.
The Board may employ attorneys, consultants, accountants, appraisers, brokers,
or other persons, and the Board, the Company and the Company's officers and
directors shall be entitled to rely upon the advice, opinions or valuations of
any such persons. No member of the Board shall be personally liable for any
action, determination or interpretation made in good faith with respect to the
Plan, and all members of the Board shall be fully protected by the Company in
respect of any such action, determination or interpretation.

        5.    Participation.    The Company's management, in its sole
discretion, shall determine those employees of an Employer who are eligible to
be Participants in the Plan, the Base Salary Multiplier (or the applicable
formula for determining the Base Salary Multiplier, as applicable) applicable to
each Participant and the Sale Bonus Payment Scheme applicable to each
Participant. In order to participate in the Plan, each employee who is eligible
to be a Participant must promptly sign and return to the Company a participation
agreement in the form provided by the Company (a "Participation Agreement"),
which shall set out the Participant's Base Salary Multiplier (or the applicable
formula for determining the Base Salary Multiplier, as applicable), designated
Sale Bonus Payment Scheme and additional details about the Plan.

        6.    Sale Bonus Trigger; Effect of Termination of Employment.    

        (a)   Subject to Section 11(b) below, a Participant shall be entitled to
receive a Sale Bonus on the terms set out in Sections 7 and 8 below if the
Participant:

        (i)    is employed by an Employer on the Closing Date of the Covered
Transaction,

        (ii)   prior to the Closing Date of the applicable Covered Sale, was
terminated by his or her Employer without Cause (which does not include
circumstances where the Participant accepts employment with a Purchaser or
another entity that falls within the definition of Employer) or terminated
employment with his or her Employer for Good Reason, or

        (iii)  commences employment with a Purchaser pursuant to the terms of
the applicable Covered Sale and either (A) is still employed by the Purchaser on
the Closing Date of the Covered Transaction or (B) such employment by the
Purchaser was terminated by the Purchaser without Cause or terminated by the
Participant for Good Reason).

A Participant shall not be entitled to a Sale Bonus if his or her employment by
his or her Employer terminates for any other reason before the Closing Date of a
Covered Transaction. After the Closing Date of a Covered Transaction, a
Participant's subsequent termination of employment

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will have no affect on the Participant's entitlement to receive a Sale Bonus
under the Plan. The Board shall make the determination of whether a termination
of a Participant's employment by a Purchaser qualifies as a termination for
Cause, or whether a termination of employment with a Purchaser by the
Participant qualifies as a termination for Good Reason, and in such context
shall treat the Purchaser as the Employer for purposes of the definition of such
term.

        (b)   Any termination of a Participant's employment by his or her
Employer for Cause or by a Participant for Good Reason shall be communicated by
Notice of Termination. For purposes of this Plan, a "Notice of Termination"
shall mean a written notice which shall indicate the specific termination
provision or provisions in this Plan relied upon. The Notice of Termination
shall be effective on the date specified in Section 11(j) of this Plan.
Notwithstanding anything else contained herein to the contrary, a Participant
shall not be deemed to have terminated employment, for purposes of this Plan, if
his or her employment by an Employer terminates but he or she continues as an
employee of another entity that falls within the definition of Employer, unless
local laws otherwise require.

        7.    Amount of Sale Bonus.    In the event that a Participant becomes
entitled to receive a Sale Bonus, the amount of such Participant's Sale Bonus
shall be determined by multiplying the Participant's highest annualised rate of
Base Salary in effect at any time during the 24-month period preceding the
Closing Date of the last transaction resulting in a Covered Transaction by the
Participant's applicable Base Salary Multiplier. Each Participant's Base Salary
Multiplier (or the applicable formula for determining the Base Salary
Multiplier, as applicable) shall be set out in the Participant's Participation
Agreement. Following consummation of a Covered Transaction, determinations of
ANSP (including, without limitation, the determination of value in U.S. dollars
of any non-cash consideration and the value in U.S. dollars of any consideration
not expressed in U.S. dollars) shall be made by the Board in good faith, whose
good faith determination will be binding.

        8.    Payment of Sale Bonus.    If a Participant becomes entitled to
receive a Sale Bonus, the manner and timing of the payment of such Sale Bonus
shall be determined in accordance with the following rules. The Company's
management, in its sole discretion, shall determine which of the following Sale
Bonus Payment Schemes, either Payment Scheme One set out in subsection (a) or
Payment Scheme Two set out in subsection (b), shall apply to each Participant.
The applicable Payment Scheme shall be set out in the Participant's
Participation Agreement.

        (a)   Payment Scheme One. Payment of a Sale Bonus to a Participant under
Payment Scheme One shall be made in accordance with this Section 8(a). Within
sixty (60) days after the Closing Date of the last transaction resulting in a
Covered Transaction, the Board shall make a good faith estimate of ANSP
resulting from the Covered Transaction (the "Initial Estimate"). Subject to
clause (ii) below, no later than sixty (60) days after the Closing Date, each
Participant who is eligible to receive a Sale Bonus under this Section 8(a)
shall be paid an amount equal to 80% of such Participant's estimated Sale Bonus,
calculated based on such estimate. Within 24 months after the Closing Date of
the Covered Transaction, the Board shall make an updated estimate of ANSP, at
which time up to 100% of the remainder of each Participant's Sale Bonus, if any,
shall be paid subject to the following provisions of this paragraph:

        (i)    The updated calculations shall take into account any further
information regarding claims, charges, levies and expenses associated with the
Covered Transaction and post-Closing Date activities as well as an updated
calculation of the estimated tax consequences of the Covered Transaction. To the
extent that deal-related claims, charges or levies that would have the effect,
if successful, of reducing ANSP are made, but not actually resolved, during the
24-month period, adjustments shall be made to the calculations assuming the most
unfavorable result to the Company and its Subsidiaries and affiliates and any
subsequent true-ups shall be made within a reasonable period of time following
the resolution of the matter. To the extent

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that any earn-out or similar conditional amount is scheduled to be paid more
than 24 months after the Closing Date, or to the extent escrowed proceeds are
scheduled to be released from escrow more than 24 months after the Closing Date,
the Board will within a reasonable time after the occurrence of such events
adjust Sale Bonus calculations when and if such amounts are actually received
(to the extent such amounts were not previously taken into account). If final
amounts still remain to be determined more than 24 months after Closing Date,
whether because of pending claims, earn-outs or similar arrangements, or
otherwise, the Board may at any time thereafter make a good faith estimate of
what the final amount of ANSP will be and pay out the remaining Sale Bonus
amounts (less amounts previously paid) based on such good faith estimate. In
such case, the Board's good faith determination will be binding on all
Participants whose Sale Bonus is so paid and there will be no adjustments to
such bonuses for events occurring before or after such determination.

        (ii)   Notwithstanding the foregoing, if the Board determines that,
based on the estimate of ANSP made within sixty (60) days of the Closing Date of
the Covered Transaction, the remainder of a Participant's Sale Bonus amount, if
any, would be USD10,000 or less, the Board may elect to pay the Participant's
entire Sale Bonus (without reduction for a withhold) based on the Board's
Initial Estimate of ANSP. In such case, the Board's good faith Initial Estimate
of ANSP will be binding on all Participants whose Sale Bonus is so paid and
there will be no adjustments to such Sale Bonuses for events occurring before or
after such determination.

        (b)   Payment Scheme Two. Payment of a Sale Bonus to a Participant under
Payment Scheme Two shall be made in a cash lump sum no later than sixty
(60) days following the Closing Date of the Covered Transaction based on the
Board's Initial Estimate of ANSP, which estimate will be final and binding for
such purposes.

        (c)   Liability for Payment. The Company shall be liable for the payment
of benefits under this Plan with respect to each Participant.

        9.    Taxes.    The Company and/or the Participant's Employer, as
applicable, has the right to withhold from any amount otherwise payable to a
Participant under or pursuant to this Plan the amount of any taxes or other
statutory deductions that the Company or such Employer, or any of their
respective subsidiaries and affiliates, may legally be required to withhold with
respect to such payment (including, without limitation, any amounts required to
be withheld under PAYG Withholding and any United States Federal taxes, and any
other foreign, state, city, or local taxes). Each Participant, former
Participant and Beneficiary shall be solely responsible for all income taxes
arising in connection with participation in this Plan or benefits hereunder.

        10.    Arbitration    

        (a)   Arbitration of Claims. Unless superseded by express provision in
the Participant's Participation Agreement, the Company, the Participant, and the
Participant's Employer hereby consent to the resolution by mandatory and binding
arbitration of all disputes or differences arising out of or in connection with
this Plan that the Company or the Participant's Employer may have against the
Participant, or that the Participant may have against the Company, his or her
Employer, or against either of their officers, directors, employees or agents
acting in their capacity as such. It is further agreed that the award made by
the arbitrator on any dispute or difference which is referred to for arbitration
in accordance with this Section 10, shall be final and binding upon the Company,
the Participant, and the Participant's Employer and that judgment may be entered
on the award of the arbitrator in any court having proper jurisdiction.

        All expenses of such arbitration, including the reasonable fees and
expenses of the legal representative for the Participant, shall be paid and
borne by the Company or the Participant's Employer; provided, however, that if
the arbitrator determines that the Participant did not

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commence the arbitration in good faith and had no reasonable basis therefor or
that the Participant failed to comply with Section 11(b) or breached the
agreement contemplated thereby, the Participant shall repay all advanced fees
and expenses and shall reimburse the Company and the Participant's Employer for
their reasonable legal fees and expenses in connection therewith.

        Except as otherwise provided in this procedure or by mutual agreement of
the parties, any arbitration shall be administered by a single arbitrator and,
subject to the provisions of this Section 10, the Commercial Arbitration Act
1984 (Vic) (the "Act") shall apply to the reference to arbitration. The
arbitration shall be held in Melbourne in the State of Victoria, Australia or at
such other location as all the parties may mutually agree. Pre-hearing and
post-hearing procedures may be held by telephone or in person as the arbitrator
directs to be appropriate or convenient.

        Any party wishing to refer a dispute or difference to arbitration must
give to each of the other parties at least 30 days prior to the reference a
notice in writing:

        (i)    stating that it requires the dispute or difference to be referred
to arbitration;

        (ii)   specifying in summary form the matter or matters the subject of
the dispute or difference; and

        (iii)  proposing the name of the person to be appointed as arbitrator.

        At the expiration of the 30 day notice period any party may refer the
dispute to arbitration in accordance with this Section 10. If within the 30 day
notice period the parties cannot agree on an arbitrator, then any party may
request the chairman for the time being of the Victorian Bar Council, whose
current address is care of Level 2, Douglas Menzies Chambers, 180 William
Street, Melbourne, Victoria, 3000, Australia to nominate an arbitrator. The
nominee must be a practising barrister or solicitor who has attained the rank of
Queen's Counsel or Senior Counsel and who has a general commercial law practice.

        In making any determination for the purposes of the arbitration the
arbitrator shall interpret this Plan, any applicable Company or Employer policy
or rules and regulations according to applicable law. In reaching his or her
decision, the arbitrator shall have no authority to change or modify any lawful
Company or Employer policy, rule or regulation, or this Plan. The arbitrator
shall have exclusive jurisdiction to resolve any dispute or difference relating
to the interpretation, applicability, enforceability or formation of this Plan,
including but not limited to, any claim that all or any part of this Plan is
voidable.

        The arbitrator shall have the power to entertain an application by any
party to dismiss or strike out any claim made in the arbitration or an
application for summary judgment. In entertaining such application and making a
determination in respect of it the arbitrator is required to have regard to the
Supreme Court (General Civil Procedure) Rules 1996 (Vic). Following the
completion of the arbitration, the arbitrator shall issue a written decision
disclosing his or her essential findings and conclusions upon which the award is
based.

        (b)   Discovery. Each party shall have the right and opportunity to
obtain documents from another party through one request for production of
documents. Additional discovery may be had only when the arbitrator so orders
upon a showing of substantial need. Any disputes regarding requests for
production of documents or other discovery shall be submitted to the arbitrator
for directions.

        (c)   Subpoenas. Any party shall have the right to obtain from the court
an order requiring a person to attend for examination before the arbitrator or
requiring a person to so attend and to produce to the arbitrator the document or
documents specified in the court's order.

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        (d)   Designation of Witnesses. Unless otherwise directed or ordered by
the arbitrator at least thirty calendar days before the arbitration, the parties
must exchange lists of witnesses, including any expert(s), and copies of all
witness statements and exhibits intended to be used at the arbitration.

        (e)   Unless otherwise agreed in writing by all the parties:

        (i)    the parties are entitled to be represented in the arbitration by
a legal practitioner or a legally qualified person;

        (ii)   the arbitrator may not extend the ambit of the dispute or
difference referred to arbitration to include other disputes;

        (iii)  the arbitrator may not order or direct the consolidation of
arbitration proceedings as contemplated by section 26 of the Act;

        (iv)  the arbitrator must determine the difference or dispute by
arbitration and has no power to settle, compromise or mediate a resolution of
the dispute or difference;

        (v)   the arbitrator is required to deliver an award, together with the
reasons therefor, within thirty days after the conclusion of the arbitration
hearing, unless all the parties agree to a request by the arbitrator to extend
the time;

        (vi)  the arbitrator must deliver a final award and is not entitled to
make an interim award; and

        (vii) none of the parties, nor the arbitrator, is entitled to have a
preliminary question of law determined by the court nor to apply to the court
for an order in relation to the costs of the arbitration where a final award is
not made by the arbitrator or where the award made is wholly set aside by the
court.

        11.    Miscellaneous    

        (a)   Successors to the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary of affiliate thereof (the business and/or assets of
which constitute at least fifty percent (50%) of the total business and/or
assets of the Company following the Covered Transaction) to expressly assume and
agree to perform the Company's obligations under this Plan in the same manner
and to the same extent that the Company would be required to perform them if
such succession had not taken place.

        (b)   Release Agreement. Notwithstanding anything else contained herein
to the contrary, the Company and any of its Subsidiaries or affiliates'
obligation to pay a Sale Bonus to a Participant is subject to the condition
precedent that the Participant execute a valid and effective Release Agreement
in the form attached to the Participant's Participation Agreement (or such other
form as the Board (or its delegate) may require) and such executed agreement is
received by the Company no later than 60 days after the Closing Date and is not
revoked by the Participant or otherwise rendered unenforceable by the
Participant.

        (c)   Notice of Termination. In signing the Participation Agreement, the
Participant agrees that the Participant's employment with the Employer is
terminable by either party providing 4 weeks' notice of termination where the
employee is under 45 years of age or 5 weeks' notice of termination where the
employee is 45 years of age or over and has at least two years' continuous
service with the Employer.

        (d)   Beneficiaries. Subject to the other provisions of this
Section 11(d), the person or persons (including a trustee, personal
representative or other fiduciary) last designated in writing by a Participant
in accordance with procedures established by the Board (or its delegate) to
receive the

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benefits specified hereunder in the event of the Participant's death shall be
the Participant's Beneficiary or Beneficiaries.

        No Beneficiary designation shall become effective until it is filed with
the Board (or its delegate), and no Beneficiary designation of someone other
than a Participant's spouse shall be effective unless such designation is
consented to by the Participant's spouse on a form provided by and in accordance
with procedures established by the Board or its delegate.

        If there is no Beneficiary designation in effect with respect to a
Participant, or if there is no surviving designated Beneficiary, then the
Participant's surviving spouse shall be the Beneficiary. If there is no
surviving spouse to receive any benefits payable in accordance with the
preceding sentence, the duly appointed and currently acting personal
representative of the Participant's estate (which shall include either the
Participant's probate estate or living trust) shall be the Beneficiary. In any
case where there is no such personal representative of the Participant's estate
duly appointed and acting in that capacity within 90 days after the
Participant's death (or such extended period as the Board determines is
reasonably necessary to allow such personal representative to be appointed, but
not to exceed 180 days after the Participant's death), then Beneficiary shall
mean the person or persons who can verify by affidavit or court order to the
satisfaction of the Board that they are legally entitled to receive the benefits
specified hereunder.

        Notwithstanding anything else herein to the contrary, in the event any
amount is payable under this Plan to a minor, payment shall not be made to the
minor, but instead be paid: (i) to that person's living parent(s) to act as
custodian; (ii) if that person's parents are then divorced, and one parent is
the sole custodial parent, to such custodial parent; or (iii) if no parent of
that person is then living, payment shall be made to the duly appointed and
currently acting guardian of the estate for the minor or, if no guardian of the
estate for the minor is duly appointed and currently acting within 60 days after
the date the amount becomes payable, payment shall be deposited with the court
having jurisdiction over the estate of the minor.

        (e)   Payments on Behalf of Persons Under Incapacity. In the event that
any amount becomes payable under this Plan to a person who, in the sole judgment
of the Board, is considered by reason of physical or mental condition to be
unable to give a valid receipt therefor the Board may direct that such payment
be made to any person found by the Board, in its sole judgment, to have assumed
the care of such person. Any payment made pursuant to such determination shall
constitute a full release and discharge of the Board and the Employers.

        (f)    Unsecured General Creditor. Participants and their Beneficiaries,
heirs, successors, and assigns shall have no legal or equitable rights, claims,
or interest in any specific property or assets of the Company or its
Subsidiaries or affiliates. No assets of the Company or its Subsidiaries or
affiliates shall be held under any trust, or held in any way as collateral
security for the fulfilling of the obligations of the Company or its
Subsidiaries or affiliates under this Plan. Any and all of the Company, its
Subsidiaries and affiliates' assets shall be, and remain, the general unpledged,
unrestricted assets of the Company, its Subsidiaries and affiliates. Any
obligation under this Plan shall be merely that of an unfunded and unsecured
promise to pay money in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors.

        (g)   Gender and Number. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.

        (h)   Severability. In the event any provision of this Plan shall be
held illegal or invalid for any reason, the illegality or invalidity shall not
affect the remaining parts of this Plan, and this Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

9

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Further, the captions of this Plan are not part of the provisions hereof and
shall have no force and effect.

        (i)    Modification. The Board may from time to time amend this Plan in
any way it determines to be advisable; provided, however, that no such amendment
that adversely affects a Participant shall be effective without the consent of
such Participant (or the Participant's legal representative). No provision of
this Plan may be waived unless as to a Participant such waiver is agreed to in
writing and signed by the Participant (or the Participant's legal
representative) and by an authorised member of the Board or its designee or
legal representative.

        (j)    Notice. For purposes of this Plan, notices, including Notice of
Termination, and all other communications provided for in this Plan shall be in
writing and, subject to applicable law, shall be deemed to have been duly given
when delivered or on the date stamped as received by a recognised international
courier (such as FedEx) postage and mailing fee prepaid and addressed: (i) if to
the Participant, to his or her latest address as reflected on the records of the
Company or his or her Employer, and (ii) if to an Employer, to the attention of
the Company's Corporate Secretary at the address of the Company's principal
executive offices; or to such other address as either party may furnish to the
other in writing for the delivery of notices to that party, with specific
reference to this Plan and the importance of the notice, except that a notice of
change of address shall be effective only upon receipt by the other party.

        (k)   Applicable Law. This document is governed by and is to be
construed in accordance with the laws in force in the State of Victoria,
Australia and the parties agree to submit to the non-exclusive jurisdiction of
the Court of that State.

        (l)    No Sale Obligation. Notwithstanding anything else contained
herein or in any Participation Agreement or other agreement related to the Plan
to the contrary, the Company and its Subsidiaries and affiliates have no
obligation to close, negotiate or otherwise pursue any sale or other disposition
of all or substantially all of BV or any component thereof. The existence of the
Plan, the Participation Agreements, and the conditional rights of Participants
under the Plan shall not limit, affect or restrict in any way the right or power
of the Company or any of its Subsidiaries or affiliates to make or authorise (or
to refrain from making or authorising, as the case may be): (i) any adjustment,
recapitalisation, reorganisation or other change in capital structure or
business; (ii) any merger, amalgamation, consolidation or change in ownership;
(iii) any dissolution or liquidation; (iv) any sale or transfer of assets or
business; or (v) any other corporate act or proceeding by the entity.

10

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        IN WITNESS WHEREOF, the Company has caused its duly authorised officer
to execute this Plan as of the date first set out above.

    EDISON MISSION ENERGY
 
 
By
 
         

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11

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EXHIBIT A

Edison Mission Energy
International Revenue Base

Project

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  Country

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  2003 Revenues from
Consolidated Subsidiaries

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

  EME Ownership
Interest

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  EME Share of Revenues

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

  2003 Revenues of
Unconsolidated Subsidiaries

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

  EME Ownership
Interest

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

  EME Share of Revenues

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

  2003 Revenue Base

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

  Percentage of
International Revenue
Base

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

  Europe                                                   First Hydro  
United Kingdom   $ 367,633,000   100 % $ 367,633,000   $ —       $ —   $
367,633,000   20 %   Derwent   United Kingdom     —         —     106,316,000  
33 %   35,084,280     35,084,280   2 %   ISAB   Italy     —         —    
480,685,000   49 %   235,535,650     235,535,650   13 %   Italian Wind   Italy  
  —         —     83,234,000   50 %   41,617,000     41,617,000   2 %   Doga  
Turkey     123,956,000   80 %   99,164,800               —     99,164,800   5 %
  Spanish Hydro   Spain     22,739,000   95 %   21,706,000               —    
21,706,000   1 %        

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                514,328,000         488,503,800     670,235,000        
312,236,930     800,740,730   44 %        

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      Asia                                                   Paiton   Indonesia
    —               485,018,000   40 %   194,007,200     194,007,200   11 %   PT
Momi   Indonesia     17,994,000   100 %   17,994,000               —    
17,994,000   1 %   PT Adro   Indonesia     —         —     —   8 %   —     —    
    CBK   Philippines     1,424,000   100 %   1,424,000     65,625,000   50 %  
32,812,500     34,236,500   2 %   TECO   Thailand     —         —    
214,119,000   25 %   53,529,750     53,529,750   3 %        

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                19,418,000         19,418,000     764,762,000        
280,349,450     299,767,450   16 %        

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      Australia                                                   Loy Yang B  
Australia     178,531,000   100 %   178,531,000               —     178,531,000
  10 %   Valley Power   Australia     16,250,000   80 %   13,065,000            
  —     13,065,000   1 %   Kwinana   Australia     38,914,000   70 %  
27,239,800               —     27,239,800   1 %        

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                233,695,000         218,835,800     —         —     218,835,800
  12 %        

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      New Zealand                                                   Contact
Energy   New Zealand     755,524,000   51 %   385,317,240               —    
385,317,240   21 %        

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

 

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

     

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

                755,524,000         385,317,240     —         —     385,317,240
  21 %        

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      Americas                                                   Eco Electrica  
Puerto Rico     —         —     234,896,000   50 %   117,448,000     117,448,000
  6 %        

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

     

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                —         —     234,896,000         117,448,000     117,448,000
  6 %        

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      Non Project                                                        

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      Total       $ 1,522,965,000       $ 1,112,074,840   $ 1,669,893,000      
$ 710,034,380   $ 1,822,109,220   100 %        

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12

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EDISON MISSION ENERGY BV SALE INCENTIVE PLAN—AUSTRALIA
EXHIBIT A