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Exhibit 10.7

EDISON MISSION ENERGY
BV SALE RETENTION PLAN—SINGAPORE

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TABLE OF CONTENTS

 
   
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ARTICLE 1 ESTABLISHMENT, TERM, AND PURPOSE   1     1.1 Establishment of the Plan
  1     1.2 Purpose of the Plan   1 ARTICLE 2 DEFINITIONS   1 ARTICLE 3
PARTICIPATION   2     3.1 Participation   2     3.2 Termination of Employment  
3     3.3 Re-Employment   3     3.4 Notice of Termination   3     4.1 Right to
Retention Benefit   3     4.3 Timing and Manner of Payment   3 ARTICLE 5 TAXES  
3 ARTICLE 6 PAYMENT OBLIGATIONS   4     6.1 Liability for Payment   4     6.2
Payment of Obligations Absolute   4     6.3 Unsecured General Creditor   4    
6.4 Other Benefit Plans   4 ARTICLE 7 RESOLUTION OF DISPUTES   4     7.1 Claim  
4     7.2 Claim Decision   5     7.3 Request for Review   5     7.4 Review of
Decision   5 ARTICLE 8 RESOLUTION OF DISPUTES—ARBITRATION   5     8.1 General  
5     8.2 Arbitration of Claims   5     8.3 Discovery   6     8.4 Subpoenas   6
    8.5 Designation of Witnesses   6 ARTICLE 9 SUCCESSORS AND ASSIGNMENT   6    
9.1 Successors to the Company   6     9.2 Assignment by the Participant   7
ARTICLE 10 ADMINISTRATION OF THE PLAN   7     10.1 Committee Action   7     10.2
Powers and Duties of the Committee   7     10.3 Construction and Interpretation
  7     10.4 Information   8     10.5 Compensation, Expenses and Indemnity   8
ARTICLE 11 MISCELLANEOUS   8     11.1 Release Agreement   8     11.2 Term of the
Plan   8     11.3 Employment Status   8     11.4 Beneficiaries   8     11.5
Payments on Behalf of Persons Under Incapacity   9     11.6 Gender and Number  
9     11.7 Severability   9     11.8 Modification   9     11.9 Notice   9    
11.10 Applicable Law   10     11.11 No Sale Obligation   10

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EDISON MISSION ENERGY
BV SALE RETENTION PLAN—SINGAPORE

ARTICLE 1
ESTABLISHMENT, TERM, AND PURPOSE

        1.1    Establishment of the Plan.    Edison Mission Energy hereby
establishes a retention plan to be known as the "Edison Mission Energy BV Sale
Retention Plan—Singapore" (the "Plan"). This Plan shall become effective
February 19, 2004 (the "Effective Date").

        1.2    Purpose of the Plan.    The purpose of this Plan is to provide
key employees of the Employers with an incentive to remain in the employ of
their respective Employers through the completion of a sale of MEC
International, BV ("BV") and to provide for continuity in the management and
operations of the Employers (as such term is defined below) during such time by
offering certain employment protection and financial security in the event that
their employment is terminated by their respective Employers without Cause (as
such term is defined below).

ARTICLE 2
DEFINITIONS

        Whenever used in this Plan (and/or the Participation Agreement), the
following terms shall have the meanings set forth below (such defined terms are
in addition to the defined terms set forth above) unless the context clearly
indicates to the contrary:

(a)"Base Salary" means the Participant's 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 (1) incentive, retention, signing or
other bonus compensation and (2) any other form of compensation or benefit.

(b)"Beneficiary" means the persons or entities designated or deemed designated
by a Participant pursuant to Section 11.4.

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

(d)"BV Sale" 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 BV Sale must be
specifically approved by the Board in advance of the consummation of the BV
Sale. 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 forth 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; and provided further, that for purposes of this
definition, the assets of the BV shall be deemed to include the interest of
Mission Energy Wales (U.S.) in the Mission Hydro Ltd. Partnership (UK);

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

(1)The Participant's conviction for, or pleading guilty or nolo contendere to,
committing an act of fraud, embezzlement, theft, or other crime for which the
Participant is imprisoned;

(2)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 BV Sale), including but not limited to a failure to
comply with the Company's policies and

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instructions regarding the BV Sale and the confidentiality of certain
information related thereto; or

(2)The willful engaging by the Participant in misconduct that: (i) 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 (ii) 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.

(f)"Code" means the United States Internal Revenue Code of 1986, as amended.

(g)"Committee" means the Board or one or more committees appointed by the Board.

(h)"Company" means Edison Mission Energy, a Delaware corporation, or any
successor thereto as provided in Section 9.1.

(i)"Disability" shall mean, for all purposes of this Plan, the Participant's
eligibility for benefits under his or her Employer's long-term disability plan
applicable to the Participant, as determined by the Employer.

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

(k)"Participant" means any person who is a participant in this Plan as
determined in accordance with Article 3.

(l)"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 BV Sale.

(m)"Retention Benefit" means the retention benefit set forth in Article 4 of
this Plan.

(n)"STI" means the short term incentive program, if any, maintained by the
Company or by an Employer in which a Participant participates.

(o)"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.

ARTICLE 3
PARTICIPATION

        3.1    Participation.    The Company's management, in its sole
discretion, shall determine those employees of an Employer who will be
Participants in the Plan and the benefits to which each Participant may become
eligible to receive under the Plan. In order to participate in the Plan, each
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 forth whether the Participant may become eligible for a
Retention Benefit under the Plan and additional details about the Plan.

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        3.2    Termination of Employment.    Notwithstanding anything else
contained herein to the contrary, a Participant shall not be deemed to have
terminated employment if his or her employment by an Employer terminates but he
or she continues as an employee of another Employer.

        3.3    Re-Employment.    Notwithstanding anything else contained herein
to the contrary, a Participant shall have no right to benefits hereunder with
respect to a termination of his or her employment if, in connection with such
termination, he or she is otherwise entitled to benefits under this Plan but,
prior to the payment or delivery (or commencement of payment or delivery, as the
case may be) of such benefits, the Participant becomes re-employed by his or her
Employer or by another Employer or by any other affiliate of the Company.
Notwithstanding anything else contained herein to the contrary, a Participant's
right to continuing or additional benefits under this Plan shall automatically
terminate (but the Participant shall have no obligation to re-pay benefits
previously paid) if the Participant becomes re-employed by his or her Employer
or by another Employer or by any other affiliate of the Company. If a
Participant is re-employed and his or her employment is subsequently terminated
and the Participant again becomes entitled to benefits under the terms of this
Plan in connection with such later termination of employment, the amount of
payments otherwise payable to the Participant hereunder in connection with such
later termination of employment shall be reduced by the amount of any payments
paid under this Plan to the Participant in connection with any prior termination
of his or her employment.

        3.4    Notice of Termination.    Any termination of a Participant's
employment by his or her Employer for Cause 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 11.9 of this Plan.

ARTICLE 4
RETENTION BENEFIT

        4.1    Right to Retention Benefit.    The Company's management, in its
sole discretion, shall determine if a Participant shall be eligible to receive a
Retention Benefit pursuant to this Article 4. A Participant who has been
designated as eligible to receive a Retention Benefit pursuant to this Article 4
shall be entitled to receive from the Company a Retention Benefit if he or she
remains employed by his or her Employer until the first to occur of: (1) a
termination of the Participant's employment by his or her Employer without Cause
(and other than due to the Participant's death or Disability), (2) a sale by the
Company of the Participant's Employer, (3) the BV Sale, (4) a public
announcement by the Company that the BV Sale has been terminated, or (5) July 1,
2005. If a Participant's employment by his or her Employer terminates prior to
July 1, 2005 for any reason other than by his or her Employer without Cause (and
other than due to the Participant's death or Disability), then such Participant
shall not be entitled to a Retention Benefit.

        4.2    Retention Benefits.    If a Participant becomes entitled to a
Retention Benefit pursuant to Section 4.1, the amount of such benefit shall be
set forth in the Participant's Participation Agreement.

        4.3    Timing and Manner of Payment.    Any Retention Benefit shall be
paid by the Company to the Participant (or his or her Beneficiary) in the form
of a single lump sum cash payment within 60 days after the date such benefit
becomes payable pursuant to Section 4.1.

ARTICLE 5
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 may legally be required to withhold

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with respect to such payment (including, without limitation, any United States
Federal taxes, and any other foreign, state, city, or local taxes). In the event
that tax withholding is required with respect to amounts or benefits payable or
deliverable by the Company or the Participant's Employer to a Participant and
the Company or the Employer cannot satisfy its tax withholding obligations in
the manner described in the preceding sentence, the Company or the Employer may
require the Participant to pay or provide for the payment of such required tax
withholding as a condition to the payment or delivery of such amounts or
benefits.

        Each Participant, former Participant and Beneficiary shall be solely
responsible for all income and employment taxes arising in connection with
participation in this Plan or benefits hereunder.

ARTICLE 6
PAYMENT OBLIGATIONS

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

        6.2    Payment of Obligations Absolute.    Subject to the Participant's
compliance with Section 11.1 and the agreement contemplated thereby and subject
to Section 3.4 and Article 5, the Company's obligation to make the payments and
the arrangements provided for herein shall be absolute and unconditional, and
shall not be affected by any circumstances, including, without limitation, any
offset, counterclaim, recoupment, defense, or other right which the Company may
have against the Participant or anyone else except as provided in Section 3.3
and/or Section 3.4. All amounts payable by the Company hereunder shall be paid
without notice or demand. Each and every payment made hereunder by the Company
shall be final, and the Company shall not seek to recover all or any part of
such payment from the Participant or from whomsoever may be entitled thereto,
for any reasons whatsoever, except as otherwise provided in Section 3.4 or
Article 8 and subject to the Participant's compliance with Section 11.1 and the
agreement contemplated thereby.

        6.3    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.
No assets of the Company shall be held under any trust, or held in any way as
collateral security for the fulfilling of the obligations of the Company under
this Plan. Any and all of the Company's assets shall be, and remain, the general
unpledged, unrestricted assets of the Company. The Company's obligation under
this Plan shall be merely that of an unfunded and unsecured promise of the
Company to pay money in the future, and the rights of the Participants and
Beneficiaries shall be no greater than those of unsecured general creditors.

        6.4    Other Benefit Plans.    All payments, benefits and amounts
provided under this Plan shall be in addition to and not in substitution for any
pension rights under the Company's or other Employer's tax-qualified pension
plan in which the Participant participates, and any disability, workers'
compensation or other Company or other Employer benefit plan distribution that a
Participant is entitled to, under the terms of any such plan, at the time his or
her employment by his or her Employer terminates. Notwithstanding the foregoing,
this Plan shall not create an inference that any duplicate payments shall be
required. Payments received by a person under this Plan shall not be deemed a
part of the person's compensation for purposes of determining the person's
benefits under any employee welfare, pension or other benefit plan or
arrangement, if any, provided by an Employer, except where explicitly provided
under the terms of such plan or arrangement.

ARTICLE 7
RESOLUTION OF DISPUTES

        7.1    Claim.    A person who believes that he or she is being denied a
benefit to which he or she is entitled under this Plan (hereinafter referred to
as "Claimant") may file a written request for such

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benefit with the Committee, setting forth his or her claim. The request must be
addressed to the Committee at the Company's principal place of business.

        7.2    Claim Decision.    Upon receipt of a claim, the Committee shall
advise the Claimant that a reply will be forthcoming within 90 days and shall,
in fact, deliver such reply within such period. The Committee may, however,
extend the reply period for an additional 90 days for special circumstances.

        If the claim is denied in whole or in part, the Committee shall inform
the Claimant in writing, using language calculated to be understood by the
Claimant, setting forth: (a) the specific reason or reasons for such denial;
(b) the specific reference to pertinent provisions of this Plan on which such
denial is based; (c) a description of any additional material or information
necessary for the Claimant to perfect his or her claim and an explanation why
such material or such information is necessary; (d) appropriate information as
to the steps to be taken if the Claimant wishes to submit the claim for review;
and (e) the time limits for requesting a review under Section 7.3.

        7.3    Request for Review.    Within 60 days after the receipt by the
Claimant of the written opinion described above, the Claimant may request in
writing that the Committee review the determination. Such request must be
addressed to the Committee, at the Company's principal place of business. The
Claimant or his or her duly authorized representative may, but need not, review
the pertinent documents and submit issues and comments in writing for
consideration by the Committee.

        7.4    Review of Decision.    Within 60 days after the Committee's
receipt of a request for review, after considering all materials presented by
the Claimant, the Committee will inform the Claimant in writing, in a manner
calculated to be understood by the Claimant, of its decision setting forth the
specific reasons for the decision and containing specific references to the
pertinent provisions of this Plan on which the decision is based. If special
circumstances require that the 60 day time period be extended, the Committee
will so notify the Claimant and will render the decision as soon as possible,
but no later than one hundred twenty days after receipt of the request for
review.

ARTICLE 8
RESOLUTION OF DISPUTES—ARBITRATION

        8.1    General.    A Participant or Beneficiary must complete the claims
procedure described in Article 7 before submitting any claim or controversy
arising out of or in connection with this Plan to arbitration as described below
in this Article 8.

        8.2    Arbitration of Claims.    The Company, the Participant, and the
Participant's Employer hereby consent to the resolution by mandatory and binding
arbitration of all claims or controversies arising out of or in connection with
this Plan and/or the Exhibits hereto 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. Each party's
promise to resolve all such claims or controversies by arbitration in accordance
with this Plan rather than through the courts is consideration for the other
party's like promise. It is further agreed that the decision of an arbitrator on
any issue, dispute, claim or controversy submitted for arbitration, 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 counsel for the Participant, shall be advanced and borne by the
Company or the Participant's Employer; provided, however, that if it is finally
determined that the Participant did not commence the arbitration in good faith
and had no reasonable basis therefore or that the Participant failed to comply
with Section 11.1 or breached the agreement contemplated thereby, the
Participant shall repay all advanced fees and

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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 sole arbitrator at the
Singapore International Arbitration Centre ("SIAC") under then-existing SIAC
arbitration (the "Tribunal"). Pre-hearing and post-hearing procedures may be
held by telephone or in person, as the arbitrator deems necessary.

        The arbitrator shall be selected as follows: if the parties cannot agree
on an arbitrator, the Tribunal shall then provide the names of nine available
arbitrators experienced in business employment matters along with their resumes
and fee schedules. Each party may strike all names on the list it deems
unacceptable. If more than one common name remains on the list of all parties,
the parties shall strike names alternately until only one remains. The party who
did not initiate the claim shall strike first. If no common name remains on the
lists of the parties, the Tribunal shall furnish an additional list or lists
until an arbitrator is selected.

        The arbitrator shall interpret this Plan, any applicable Company or
Employer policy or rules and regulations, any applicable substantive law (and
the law of remedies, if applicable), or applicable federal law; provided,
however, if arbitration is brought after the claim or controversy has been
submitted for review by the Committee in accordance with Article 7, the
arbitrator shall defer to the Committee's interpretations of the Plan and such
policies, rules, and regulations so long as the Committee has not abused its
discretion hereunder. 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, and not any federal, state or local
court or agency, shall have exclusive and broad authority to resolve any dispute
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 authority to entertain a motion to dismiss
and/or motion for summary judgment by any party. 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.

        8.3    Discovery.    Each party shall have the right to take the
deposition of one individual and any expert witness(es) designated by another
party. Each party shall also have the 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 depositions, requests for production of
documents or other discovery shall be submitted to the arbitrator for
determination.

        8.4    Subpoenas.    Each party shall have the right to subpoena
witnesses and documents for the arbitration hearing by requesting a subpoena
from the arbitrator. Any such request shall be served on all other parties, who
shall advise the arbitrator in writing of any objections that the party may have
to issuance of the subpoena within ten calendar days of receipt of the request.

        8.5    Designation of Witnesses.    At least thirty calendar days before
the arbitration, the parties must exchange lists of witnesses, including any
expert(s), and copies of all exhibits intended to be used at the arbitration.

ARTICLE 9
SUCCESSORS AND ASSIGNMENT

        9.1    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 thereof (the business and/or assets of
which constitute at least fifty percent (50%) of the total business and/or
assets of the Company after

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the BV Sale) 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.

        9.2    Assignment by the Participant.    None of the benefits, payments,
proceeds or claims of any Participant shall be subject to any claim of any
creditor and, in particular, the same shall not be subject to attachment or
garnishment or other legal process by any creditor, nor shall any such
Participant have any right to alienate, anticipate, commute, pledge, encumber or
assign any of the benefits or payments or proceeds that he or she may expect to
receive, contingently or otherwise, under this Plan. Notwithstanding the
foregoing, benefits that are in pay status may be subject to a court order of
garnishment or wage assignment, or similar order, or a tax levy. This Plan shall
inure to the benefit of and be enforceable by each Participant's personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees, and legatees. If a Participant dies while any amount
would still be payable to him or her hereunder had he or she continued to live,
all such amounts, unless otherwise provided herein, shall be paid to the
Participant's Beneficiary in accordance with the terms of this Plan.

ARTICLE 10
ADMINISTRATION OF THE PLAN

        10.1    Committee Action.    The Committee shall act at meetings by
affirmative vote of a majority of the members of the Committee. Any action
permitted to be taken at a meeting may be taken without a meeting if, prior to
such action, a written consent to the action is signed by all members of the
Committee and such written consent is filed with the minutes of the proceedings
of the Committee. A member of the Committee shall not vote or act upon any
matter which relates solely to himself or herself as a Participant. The Chairman
or any other member or members of the Committee designated by the Chairman may
execute any certificate or other written direction on behalf of the Committee.

        10.2    Powers and Duties of the Committee.    The Committee shall
enforce this Plan in accordance with its terms, shall be charged with the
general administration of this Plan, and shall have all powers necessary to
accomplish its purposes, including, but not by way of limitation, the power and
authority to do the following:

(a)To determine eligibility for and participation in this Plan;

(b)To construe and interpret the terms and provisions of this Plan;

(c)To compute and certify to the amount and kind of benefits payable to
Participants and their Beneficiaries, and to determine the amount of withholding
taxes to be deducted pursuant to Article 5;

(d)To maintain all records that may be necessary for the administration of this
Plan;

(e)To provide for the disclosure of all information and the filing or provision
of all reports and statements to Participants, Beneficiaries or governmental
agencies as shall be required by law;

(f)To make and publish such rules for the regulation of this Plan and procedures
for the administration of this Plan as are not inconsistent with the terms
hereof; and

(g)To appoint a plan administrator or any other agent (which may include,
without limitation, one or more employees of the Company), and to delegate to
them such powers and duties in connection with the administration of this Plan
as the Committee may from time to time prescribe.

        10.3    Construction and Interpretation.    The Committee shall have
full discretion to construe and interpret the terms and provisions of this Plan,
including whether, for purposes of the Plan, a termination of a Participant's
employment has been with or without Cause, which interpretation or

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construction shall be final and binding on all parties, including but not
limited to each Employer and any Participant or Beneficiary. The Committee shall
administer such terms and provisions in full accordance with any and all laws
applicable to this Plan.

        10.4    Information.    To enable the Committee to perform its
functions, each Employer shall supply full and timely information to the
Committee on all matters relating to the compensation of all Participants, their
death or other cause of termination, and such other pertinent facts as the
Committee may require.

        10.5    Compensation, Expenses and Indemnity.    The members of the
Committee shall serve without additional compensation for their services
hereunder beyond that which they are entitled as authorized by the Board. The
Committee is authorized at the expense of the Company to employ such legal
counsel as it may deem advisable to assist in the performance of its duties
hereunder. The Company shall pay expenses and fees in connection with the
administration of this Plan. To the extent permitted by applicable law, the
Company shall indemnify and save harmless the Committee and each member thereof,
the Board and each member thereof, and delegates of the Committee who are
employees of the Company against any and all expenses, liabilities and claims,
including legal fees to defend against such liabilities and claims arising out
of their discharge in good faith of responsibilities under or incident to this
Plan, other than expenses and liabilities arising out of willful misconduct.
This indemnity shall not preclude such further indemnities as may be available
under insurance purchased by the Company or provided by the Company under any
bylaw, agreement or otherwise, as such indemnities are permitted under state
law.

ARTICLE 11
MISCELLANEOUS

        11.1    Release Agreement.    Notwithstanding anything else contained
herein to the contrary, the Company's obligation to pay benefits 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 Committee may require) and
such executed agreement is received by the Company no later than 60 days after
the date the Participant becomes entitled to a Retention Benefit pursuant to
Section 4.1 and is not revoked by the Participant or otherwise rendered
unenforceable by the Participant.

        11.2    Term of the Plan.    This Plan will commence on the Effective
Date and shall continue in effect through the date that benefits are triggered
pursuant to Section 4.1.

        11.3    Employment Status.    Except as may be provided under any other
written agreement between a Participant and his or her Employer, the employment
of the Participant by his or her Employer is "at will," and may be terminated by
either the Participant or the Employer at any time, subject to applicable law.
Payments made under this Plan shall not give any person the right to any
benefits provided to persons retained in an Employer's employ (such as, without
limitation, health and dental benefits). Except as may otherwise be required by
law or set forth specifically in such plans or as otherwise expressly provided
in this Plan, such benefits shall terminate as of the date the Participant's
employment by an Employer terminates.

        11.4    Beneficiaries.    Subject to the other provisions of this
Section 11.4, 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 Committee to receive the
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 Committee, and no Beneficiary designation of someone other than a
Participant's spouse shall be effective unless such

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designation is consented to by the Participant's spouse on a form provided by
and in accordance with procedures established by the Committee 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 Committee 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 Committee 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: (a) to that person's living parent(s) to act as
custodian; (b) if that person's parents are then divorced, and one parent is the
sole custodial parent, to such custodial parent; or (c) if no parent of that
person is then living, to a custodian selected by the Committee to hold the
funds for the minor under the Uniform Transfers or Gifts to Minors Act in effect
in the jurisdiction in which the minor resides. If no parent is living and the
Committee decides not to select another custodian to hold the funds for the
minor, then 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.

        11.5    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 Committee, is considered by reason of physical or mental
condition to be unable to give a valid receipt therefor the Committee may direct
that such payment be made to any person found by the Committee, 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
Committee and all Employers.

        11.6    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.

        11.7    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.
Further, the captions of this Plan are not part of the provisions hereof and
shall have no force and effect.

        11.8    Modification.    The Committee or the Board may from time to
time amend this Plan in any way it determines to be advisable; provided,
however, that no such amendment shall be effective without the consent of each
affected 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 authorized member of the Committee (or the Board) or
its designee or legal representative.

        11.9    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 shall be deemed to have been duly given when delivered or on the
date stamped as received by a recognized international courier (such as FedEx)
postage and mailing fee prepaid and addressed: (a) if to the Participant, to his
or her latest

9

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address as reflected on the records of the Company or his or her Employer, and
(b) 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.

        11.10    Applicable Law.    To the extent not preempted by the laws of
the United States, the laws of the State of California shall be the controlling
law in all matters relating to this Plan. Any statutory reference in this Plan
shall also be deemed to refer to all applicable final rules and final
regulations promulgated under or with respect to the referenced statutory
provision. The provisions of the Singapore Contracts (Rights of Third Parties)
Act (Cap. 53B) shall not apply to this Plan.

        11.11    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 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 to make or authorize (or to refrain from
making or authorizing, as the case may be): (a) any adjustment,
recapitalization, reorganization or other change in capital structure or
business; (b) any merger, amalgamation, consolidation or change in ownership;
(c) any dissolution or liquidation; (d) any sale or transfer of assets or
business; or (e) any other corporate act or proceeding by the entity.

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

    EDISON MISSION ENERGY
 
 
     

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10

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EXHIBIT A

Edison Mission Energy
International Revenue Base

Project

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  Country

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

  2003
Revenues from
Consolidated
Subsidiaries

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

  EME
Ownership
Interest

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

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

 

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

     

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

 

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

                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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11

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QuickLinks

EDISON MISSION ENERGY BV SALE RETENTION PLAN—SINGAPORE
TABLE OF CONTENTS
EDISON MISSION ENERGY BV SALE RETENTION PLAN—SINGAPORE ARTICLE 1 ESTABLISHMENT,
TERM, AND PURPOSE
ARTICLE 2 DEFINITIONS
ARTICLE 3 PARTICIPATION
ARTICLE 4 RETENTION BENEFIT
ARTICLE 5 TAXES
ARTICLE 6 PAYMENT OBLIGATIONS
ARTICLE 7 RESOLUTION OF DISPUTES
ARTICLE 8 RESOLUTION OF DISPUTES—ARBITRATION
ARTICLE 9 SUCCESSORS AND ASSIGNMENT
ARTICLE 10 ADMINISTRATION OF THE PLAN
ARTICLE 11 MISCELLANEOUS
EXHIBIT A