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Exhibit 10.55    
    

 
 

APPENDIX A    
    
    TO THE    
    
    EDISON INTERNATIONAL    
    
    AFFILIATE OPTION    
    
    DEFERRED COMPENSATION PLAN    
    
    (AMENDED AND RESTATED)    

 
 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE 1    DEFINITIONS	 	1
	
ARTICLE 2    PARTICIPATION	
 	

4
	 	
 2.1	
 	

Commencement.	
 	

4
	 	2.2	 	Continuation of Participation.	 	4
	
ARTICLE 3    EMPLOYEE DEFERRALS	
 	

4
	 	
 3.1	
 	

Participation Election.	
 	

4
	 	3.2	 	Vesting.	 	4
	
ARTICLE 4    DEFERRAL ACCOUNTS AND INTEREST—GENERAL RULES	
 	

5
	 	
 4.1	
 	

Deferral Accounts.	
 	

5
	 	4.2	 	Crediting Deferral Accounts.	 	5
	 	4.3	 	Debiting Deferral Accounts.	 	5
	 	4.4	 	Statement of Deferral Accounts.	 	5
	 	4.5	 	Interest.	 	6
	
ARTICLE 5    RETIREMENT BENEFITS	
 	

6
	 	
 5.1	
 	

Amount of Benefits.	
 	

6
	 	5.2	 	Form of Benefits.	 	6
	 	5.3	 	Commencement of Benefits	 	7
	 	5.4	 	Small Benefit Exception.	 	7
	
ARTICLE 6    TERMINATION OF EMPLOYMENT BENEFITS	
 	

7
	 	
 6.1	
 	

Termination of Employment.	
 	

7
	 	6.2	 	Termination of Employment With Cause.	 	8
	
ARTICLE 7    DEATH BENEFITS	
 	

8
	 	
 7.1	
 	

Pre-Retirement Death Benefits.	
 	

8
	 	7.2	 	Post-Retirement or Total Disability Death Benefits.	 	8
	 	7.3	 	Post-Termination Death Benefits.	 	8
	 	7.4	 	Change in the Form of Benefits.	 	8
	 	7.5	 	Small Benefit Exception.	 	9
	
ARTICLE 8    TOTAL DISABILITY BENEFITS	
 	

9
	 	
 8.1	
 	

Amount of Benefits	
 	

9
	 	8.2	 	Form of Benefits and Small Benefit Exception.	 	9
	 	8.3	 	Commencement of Benefits.	 	9
	
ARTICLE 9    IN-SERVICE WITHDRAWALS	
 	

9
	 	
 9.1	
 	

Scheduled Withdrawals	
 	

9
	 	9.2	 	Unscheduled Withdrawals.	 	10
	 	9.3	 	Severe Financial Hardship Withdrawals.	 	10
	 	 	 	 	 

i

 

	
ARTICLE 10    CONDITIONS RELATED TO BENEFITS	
 	

10
	 	
 10.1	
 	

Nonassignability.	
 	

10
	 	10.2	 	No Right to Assets.	 	11
	 	10.3	 	Protective Provisions.	 	11
	 	10.4	 	Taxes, Tax Withholding.	 	11
	 	10.5	 	Employer's Right to Defer Payment.	 	11
	 	10.6	 	Termination of Employment.	 	11
	 	10.7	 	Payments on Behalf of Persons Under Incapacity.	 	11
	
ARTICLE 11    PLAN ADMINISTRATION	
 	

12
	 	
 11.1	
 	

General.	
 	

12
	 	11.2	 	Administrator Action.	 	12
	 	11.3	 	Powers and Duties of the Administrator.	 	12
	 	11.4	 	Construction and Interpretation.	 	12
	 	11.5	 	Information.	 	12
	 	11.6	 	Compensation, Expenses and Indemnity.	 	13
	
ARTICLE 12    BENEFICIARY DESIGNATION	
 	

13
	 	
 12.1	
 	

Beneficiary Designations—General.	
 	

13
	 	12.2	 	Payments to Minors.	 	13
	
ARTICLE 13    AMENDMENT OR TERMINATION OF PLAN	
 	

14
	 	
 13.1	
 	

Amendment of Plan.	
 	

14
	 	13.2	 	Termination of Plan.	 	14
	 	13.3	 	Amendment or Termination After Change in Control.	 	14
	 	13.4	 	Exercise of Power to Amend or Terminate.	 	14
	 	13.5	 	Constructive Receipt Termination.	 	14
	
ARTICLE 14    CLAIMS AND ARBITRATION PROCEDURES	
 	

14
	 	
 14.1	
 	

Claims and Review Procedures.	
 	

14
	 	14.2	 	Dispute Arbitration.	 	15
	
ARTICLE 15    MISCELLANEOUS	
 	

15
	 	
 15.1	
 	

Successors.	
 	

15
	 	15.2	 	ERISA Plan.	 	15
	 	15.3	 	Trust.	 	15
	 	15.4	 	Employment Not Guaranteed.	 	16
	 	15.5	 	Continued Service.	 	16
	 	15.6	 	Gender, Singular and Plural.	 	16
	 	15.7	 	Captions.	 	16
	 	15.8	 	Validity.	 	16
	 	15.9	 	Waiver of Breach.	 	16
	 	15.10	 	Expenses.	 	16
	 	15.11	 	Applicable Law.	 	16
	 	15.12	 	Notice.	 	17

ii

 
 

APPENDIX A    
    
    TO THE    
    
    EDISON INTERNATIONAL    
    
    AFFILIATE OPTION DEFERRED COMPENSATION PLAN    
    
    (AS AMENDED AND RESTATED)    
    

        WHEREAS, at the time that Edison International ("EIX") adopted the Edison International Affiliate Option Deferred Compensation Plan (the "Plan"), EIX was advised
that employees of Edison Mission Energy in Singapore (the "Singapore Employees") would be subject to immediate taxation in Singapore on amounts deferred under the Plan and that, in order to avoid the
loss of foreign tax credits with respect to the payment of such taxes in Singapore, the Singapore Employees should receive lump sum distributions of their account balances under the Plan in January of
2005; 

        WHEREAS,
EIX has subsequently been advised that the Singapore Employees will not be subject to Singapore taxes on their deferred compensation under the Plan until they receive
distributions of their account balances under the Plan and, therefore, that distributions in January of 2005, will not be necessary to preserve foreign tax credits; and 

        WHEREAS,
EIX has amended the Plan by amending and restating this Appendix A to the Plan to eliminate the January 2005 mandatory lump sum distribution provisions applicable
to Singapore Employees and to make certain corresponding changes, effective as of August 7, 2000. 

        NOW
THEREFORE, this amended and restated Appendix A to the Edison International Affiliate Option Deferred Compensation Plan supercedes the original Appendix A, effective as
of August 7, 2000. 

        Notwithstanding
anything to the contrary contained in the main body of the Edison International Affiliate Option Deferred Compensation Plan document, the provisions of this
Appendix A set forth the
provisions of the Plan that are applicable to individuals who are employed by Edison Mission Energy in Singapore on the Exchange Date. 

 
 

ARTICLE 1
  DEFINITIONS    
    

        Whenever the following words or phrases are used in this Appendix A with the first letter capitalized, they shall have the meanings specified below. 

        Administrator means the Compensation and Executive Personnel Committee of the Board of Directors of EIX. 

        Affiliate means EIX or any corporation or entity, which, along with EIX, is a component member of a "controlled group of corporations"
within the meaning of Section 414(b) of the Code. 

        Affiliate Option means an Edison Mission Energy affiliate option performance award awarded to an Eligible Person pursuant to the terms of
the EIX Officer Long-Term Incentive Compensation Plan, the EIX Management Long-Term Incentive Compensation Plan, or the EIX Equity Compensation Plan. 

        Affiliate Option Exchange Offer or Exchange Offer means the offers by the Participating
Affiliates that expire on August 7, 2000 to exchange all outstanding Affiliate Options for Cash Exchange Amounts and SEUs under the terms and conditions set forth in the Exchange Offer
Circular. 

        Beneficiary means the person or persons, or entity, entitled in accordance with Article 12 to receive all or a portion of a
Participant's Plan benefits upon the Participant's death. 

        Cash Exchange Amounts means the amounts, determined in accordance with the Exchange Offer Circular, that would become payable to a
Participant in cash in 2001, 2002 and 2003 as a result of the Participant's acceptance of the Affiliate Option Exchange Offer. 

 

        Cause means the willful failure by a Participant to substantially perform his or her duties for an Affiliate or the willful engaging by a
Participant in conduct, which is injurious to an Affiliate, monetarily or otherwise. 

        Change in Control means any event that triggers a "Distribution Date" under the Rights Agreement approved by the EIX Board of Directors on
November 20, 1996, as amended on September 16, 1999. 

        Code means the United States Internal Revenue Code of 1986, as amended from time to time. 

        Deferral Account means the notional account for each Participant established for recordkeeping purposes to which amounts deferred under
the Plan, denominated in cash, and interest thereon, is allocated under Article 4 of the Plan. 

        EIX means Edison International or any successor corporation. 

        Eligible Person means an individual who (a) is designated by a Participating Affiliate as eligible to participate in the Plan, and
(b) is employed in Singapore by Edison Mission Energy on the Exchange Date, and (c) satisfies one of the requirements set forth in the following paragraph: 

        An
individual must satisfy at least one of the following three criteria to qualify as an Eligible Person: (a) he or she had individual Income (as defined below) in excess of
$200,000 in each of 1998 and 1999 and reasonably expects to reach the same level in 2000, (b) he or she had joint Income with his or her spouse in excess of $300,000 in each of 1998 and 1999
and reasonably expects to reach the same level in 2000, or (c) he or she has an individual Net Worth (as defined below) or a joint Net Worth with his or her spouse in excess of $1,000,000. When
making a Participation Election, an otherwise Eligible Person must attest, in writing in the Participation Election, to the fact that he or she satisfies one of these three criteria or the
Participation Election shall be ineffective. The Administrator may rely on such representation in determining whether the individual is an Eligible Person. For purposes of this paragraph, the
following definitions shall apply: 

        "Income"
means the sum of the individual's (or, with respect to the joint Income test, the individual's and his or her spouse's): (i) total gross wages and bonuses actually paid
by an Affiliate or another employer, (ii) interest (whether taxable or non-taxable) and dividends received, (iii) gains or other income realized from investments (unrealized
appreciation in the value of assets does not
count as income for this purpose), and (iv) similar amounts of income actually paid or realized. "Income" is determined before taking into account taxes, deductions that may reduce income for
tax purposes, deductions on account of contributions to a 401(k) retirement plan or nonqualified deferred compensation plan, and other expenses. 

        "Net
Worth" means the total current value of the individual's (or, with respect to the joint Net Worth test, the individual's and his or her spouse's) assets (including houses, other
real estate, automobiles, investments and the value of vested Affiliate Options) minus his or her debts (including mortgages and other loans). 

        Employer means the Participating Affiliate that employed the Participant at the time the Participant's Affiliate Option was awarded. 

        ERISA means the United States Employee Retirement Income Security Act of 1974, as amended from time to time. 

        Exchange Date means the date, determined in accordance with the Exchange Offer Circular, that the Affiliate Option Exchange Offer becomes
effective and Affiliate Options are exchanged for Cash Exchange Amounts and SEUs. 

2

 

        Exchange Offer Circular means the document describing the offer to exchange Edison Mission Energy Affiliate Options, dated July 3,
2000, together with the supplemental document describing such offer dated July 14, 2000. 

        100% 10-Year Rate means an annual interest rate effective for a calendar year that is equivalent to 100% of the
120-month average annual rate of 10-year U.S. Treasury Notes determined as of October 15 of the preceding year. 

        120% 10-Year Rate means an annual interest rate effective for a calendar year that is equivalent to 120% of the
120-month average annual rate of 10-year U.S. Treasury Notes determined as of October 15 of the preceding year. 

        Participant means an Eligible Person who has filed a valid and effective Participation Election in accordance with Section 3.1. 

        Participating Affiliate means EIX or Edison Mission Energy. 

        Participation Election means a Participant's written election, on a form and filed in a manner prescribed by the Administrator for this
purpose, to defer Cash Exchange Amounts and/or SEU Exchange Amounts under the Plan in accordance with Section 3.1. 

        Plan means this Edison International Affiliate Option Deferred Compensation Plan, as amended from time to time. 

        Retirement means a Participant's termination of employment with the Affiliates after attainment of age 55 and after completion of at least
five years of service with an Affiliate, as determined by the Administrator. 

        Scheduled Withdrawal means a distribution a Participant's entire vested Deferral Account as elected by the Participant in accordance with
Section 9.1 of the Plan. 

        Severe Financial Hardship means a financial hardship to a Participant that results from: (a) a sudden and unexpected illness or
accident suffered by a Participant or his or her dependent(s), (b) loss of the Participant's property due to casualty, or (c) other similar extraordinary and unforeseeable circumstances
that arise as a result of events beyond a Participant's control. Examples of what will not be considered a Severe Financial Hardship include the Participant's need to pay college expenses for a
dependent or the Participant's desire to purchase a home. 

        Severe Financial Hardship Withdrawal means a distribution of all or a portion of a Participant's vested Deferral Account in accordance
with Section 9.3 of the Plan. 

        SEU means a stock equivalent unit granted to a Participant as a result of the Participant's acceptance of the Affiliate Option Exchange
Offer. 

        SEU Exchange Amounts means the amounts that would otherwise be paid to a Participant in cash in respect of the Participant's SEUs had the
Participant not elected to defer such payment in accordance with the Plan. 

        Total Disability means the permanent and total disability of a Participant as determined by the Benefits Committee of EIX, in its
discretion. 

        Unscheduled Withdrawal means a distribution of all or a portion of a Participant's vested Deferral Account in accordance with
Section 9.2 of the Plan. 

        Valuation Date means the last day of the month in which a Participant's termination of employment occurs, or for the purposes of
calculating Scheduled, Unscheduled and Severe Financial Hardship Withdrawals under Article 9, the day before such withdrawal is made. 

3

 

 
 

ARTICLE 2
  PARTICIPATION    
    

2.1   Commencement.  

        An Eligible Person will become a Participant in the Plan as of the Exchange Date if he or she files a valid and effective Participation Election. 

2.2   Continuation of Participation.  

        Once a Deferral Account balance has been established, a Participant or Beneficiary will continue as a Participant or Beneficiary under the Plan as long as a
balance remains in his or her Deferral Account. 

 
 

ARTICLE 3
  EMPLOYEE DEFERRALS    
    

3.1   Participation Election.  

        (a)    Cash Exchange Amounts Deferral.    An Eligible Person may make a one-time election to defer his or
her Cash Exchange Amounts under the Plan by completing and submitting a Participation Election, which sets forth the Eligible Person's Cash Exchange Amounts deferral election, to the Administrator by
August 7, 2000. All of the Eligible Person's Cash Exchange Amounts, or the Eligible Person's Cash Exchange Amounts in excess of a specified dollar amount, may be deferred under the Plan. 

        (b)    SEU Exchange Amounts Deferral.    An Eligible Person may make a one-time election to defer 100%,
but not less than 100%, of his or her SEU Exchange Amounts under the Plan by completing and submitting a Participation Election, which sets forth the Eligible Person's SEU Exchange Amounts deferral
election, to the Administrator by August 7, 2000. 

        (c)    Irrevocable Election.    A Participant's Participation Election is irrevocable once filed. 

3.2   Vesting.  

        (a)    Vesting in Deferral Accounts Upon Termination of Employment.    A Participant's right to receive Cash Exchange
Amounts deferred under Section 3.1(a) and any interest thereon will be subject to the vesting terms and conditions of the original Affiliate Option awards. To that end, the portion of a
Participant's Cash Exchange Amounts attributable to vested Affiliate Options (and interest thereon) shall be vested as of the Exchange Date. The portion of the Participant's Cash Exchange Amounts
attributable to unvested Affiliate Options (and interest thereon) will vest on January 2, 2001, 2002, or 2003, as applicable. Cash Exchange Amounts deferred under Section 3.1(a) (and
interest thereon) that are not vested on the Exchange Date will be conditionally credited to a Participant's Deferral Account and will
be forfeited to the extent such amounts are not vested upon the termination of the Participant's employment with the Affiliates. Amounts credited to a Participant's Deferral Account that relate to SEU
Exchange Amounts shall be fully vested since only vested SEUs will be converted to dollar credits to Deferral Accounts pursuant to Section 4.2. 

        (b)    Vesting in Deferral Accounts Upon Retirement, Total Disability or Death.    A Participant whose employment with
the Affiliates terminates on account of the Participant's Retirement, death, or following his or her Total Disability, will become vested in a pro rata portion of any Cash Exchange Amounts credited to
his or her Deferral Account that are attributable to Affiliate Options granted in 1998 and/or 1999. In such event, X% of the aggregate amount credited to the Participant's Deferral Account
attributable to 1998 Affiliate Options shall be vested, and X% of the aggregate amount credited to the Participant's Deferral Account attributable to 1999 Affiliate Options shall be vested. For 

4

 

this
purpose, X shall be determined by dividing (i) the completed months that have elapsed between the date the Participant's 1998 Affiliate Options or 1999 Affiliate Options, as the case may
be, were granted and the date of the Participant's termination of employment with the Affiliates, by (ii) 48. 

        (c)    Vesting Upon a Change in Control.    A Participant shall automatically be 100% vested in the balance credited
to his or her Deferral Account upon a Change in Control. 

 
 

ARTICLE 4
  DEFERRAL ACCOUNTS AND INTEREST—GENERAL RULES    
    

4.1   Deferral Accounts.  

        Solely for record keeping purposes, the Administrator will maintain a Deferral Account for each Participant to which Cash Exchange Amounts and/or SEU Exchange
Amounts deferred under Section 3.1 and the interest thereon shall be credited. The Administrator may subdivide a Participant's Deferral Account into separate sub-accounts to keep
track of the portions of the Participant's Deferral Account balance that are subject to different vesting schedules. 

4.2   Crediting Deferral Accounts.  

        (a)    Cash Exchange Amounts.    The portion of each Participant's Cash Exchange Amount that the Participant elects to
defer in accordance with his or her Participation Election shall be credited to his or her Deferral Account as of the Exchange Date. 

        (b)    SEU Exchange Amounts.    If an Eligible Person elects to defer his or her SEU Exchange Amounts in accordance
with Section 3.1(b), all of the Eligible Person's vested SEUs will be converted to a dollar credit to his or her Deferral Account as of the first anniversary of the Exchange Date. Each of the
Eligible Person's SEUs that is not vested on the first anniversary of the Exchange Date will be converted to a dollar credit to his or her Deferral Account as of the date such SEU becomes vested. The
dollar amount to be credited to a Participant's Deferral Account upon conversion of his or her SEUs will be equal to (i) the sum of the daily average of the high and low trading prices of a
share of EIX common stock on the New York Stock Exchange for each of the 20 trading days preceding the conversion date, divided by (ii) 20. 

4.3   Debiting Deferral Accounts.  

        Each Participant's Deferral Account shall be reduced by the amount of his or her distributions, withdrawals, amounts used to satisfy applicable tax withholding
obligations, and any forfeited unvested Cash Exchange Amounts and the interest thereon. A Participant shall have no further rights with respect to an SEU if such SEU is converted to a dollar credit to
his or her Deferral Account in accordance with Section 4.2(b). 

4.4   Statement of Deferral Accounts.  

        In accordance with procedures established by the Administrator, each Participant shall receive a statement indicating the balance credited to his or her Deferral
Account at the end of each calendar quarter, or more or less frequently as determined by the Administrator. 

5

 

4.5   Interest.  

        All interest shall be compounded annually and credited to Participants' Deferral Accounts on a daily basis at the following rates: 

        (a)    120% 10-Year Rate.    Each Participant's Deferral Account balance shall earn interest at the 120%
10-Year Rate, as in effect from time to time, from the date a balance is first credited to that Deferral Account until the date that such Deferral Account balance is zero. 

        (b)    100% 10-Year Rate.    Notwithstanding Section 4.5(a), any Participant who terminates
employment with the Affiliates (other than by reason of the Participant's Retirement, death, of following the Participant's Total Disability), and whose Deferral Account balance is to be distributed
in installments rather than a single lump sum payment, shall earn interest on his or her Deferral Account balance beginning on the date his or her employment with the Affiliates terminates until the
date that such account balance is zero at the 100% 10-Year Rate, as in effect from time to time (rather than the 120% 10-Year Rate applicable until the date the Participant's
employment terminates). 

 
 

ARTICLE 5
  RETIREMENT BENEFITS    
    

5.1   Amount of Benefits.  

        Following a Participant's Retirement, the Participant's Employer will pay the Participant a retirement benefit in the form elected by the Participant in
accordance with Section 5.2, based on the vested balance of the Participant's Deferral Account as of the Valuation Date. If paid as a lump sum, the retirement benefit will be equal to the
vested balance of the Participant's Deferral Account. If paid in installments, the installments will be paid in amounts that will amortize the Participant's vested Deferral Account balance with
interest credited at the 120% 10-Year Rate, as in effect from time to time, over the period of time benefits are to be paid. For purposes of calculating installments, the Participant's
Deferral Account will be valued as of December 31 each year, and subsequent installments will be adjusted for the next calendar year according to procedures established by the Administrator. 

5.2   Form of Benefits.  

        A Participant may elect, by filing with the Administrator a written election on a form and in a manner prescribed by the Administrator, to have his or her
Retirement benefits paid in cash: 

        (a)   in
a lump sum, 

        (b)   in
monthly installments paid over the Participant's choice of 60, 120, or 180 months, or 

        (c)   in
an initial lump sum of a specified percentage or dollar amount of the Participant's Deferral Account, with the remainder paid in monthly installments over the
Participant's choice of 60, 120, or 180 months. 

        If
no valid election is made, the Participant will be deemed to have elected monthly installments over 180 months. Notwithstanding the foregoing, a Participant may elect the form
of benefits or change the form of benefits elected by filing a new written election, on a form and in a manner prescribed by the Administrator, with the Administrator; provided, however, that if such
new written election is received by the Administrator less than 13 months prior to the date of the Participant's Retirement, such new written election shall be ineffective and the Participant's
benefits will be distributed in accordance with the payout election (or deemed election) in effect 13 months prior to the date of the Participant's Retirement. 

6

 

5.3   Commencement of Benefits  

        Retirement benefits will be paid or installments will commence within 60 days after the date of the Participant's Retirement, but in no event earlier than
January 2, 2002 or as soon as administratively practicable thereafter. 

5.4   Small Benefit Exception.  

        Notwithstanding the provisions of Section 5.2, the Administrator may, in its sole discretion: 

        (a)   pay
benefits in a single lump sum if the sum of all benefits payable to the Participant is less than or equal to $3,500, or 

        (b)   reduce
the number of monthly installments elected by the Participant if necessary to produce a monthly benefit of at least $300. 

 
 

ARTICLE 6
  TERMINATION OF EMPLOYMENT BENEFITS    
    

6.1   Termination of Employment.  

        (a)    Amount of Benefits.    Upon termination of a Participant's employment with the Affiliates (other than due to
the Participant's Retirement, death, or following the Participant's Total Disability), the Participant's Employer will pay the Participant a benefit in the form elected by the Participant in
accordance with Section 6.1(b), based on the vested balance of the Participant's Deferral Account as of the Valuation Date. If paid as a lump sum, the benefit will be equal to the vested
balance of the Participant's Deferral Account. If paid in installments, the installments will be paid in amounts that will amortize the Participant's vested Deferral Account balance with interest
credited at the 100% 10-Year Rate, as in effect from time to time, over the period of time benefits are to be paid. For purposes of calculating installments, the Participant's Deferral
Account will be valued as of December 31 each year, and subsequent installments will be adjusted for the next calendar year according to procedures established by the Administrator. 

        (b)    Form of Benefits and Small Benefit Exception.    A Participant may elect, by filing with the Administrator a
written election on a form and in a manner prescribed by the Administrator, to have his or her benefit paid in cash: 

        (i)    in
a lump sum, or 

        (ii)   in
three annual installments. 

        If
no valid election is made, the Participant will be deemed to have elected a lump sum. Notwithstanding the foregoing, a Participant who has not previously made an election under this
Section 6.1(b) may at any time before November 30, 2003, elect the form of benefits by filing a new written election, on a form and in a manner prescribed by the Administrator, with the
Administrator; provided, however, that if such new written election is received by the Administrator less than 13 months prior to the date of the Participant's termination of employment, such
new written election shall be ineffective and the Participant's benefits will be distributed in a lump sum. The small benefit provisions of Section 5.4 shall apply to benefits payable in
accordance with this Section 6.1. The election of the form of benefit under this Section 6.1(b) is irrevocable once the Participant files his or her election. 

        (c)    Commencement of Benefits.    Benefits will be paid or installments will commence within 60 days after
the date of the Participant's termination of employment, but in no event earlier than January 2, 2002 or as soon as administratively practicable thereafter. 

7

 

6.2   Termination of Employment With Cause.  

        Notwithstanding anything in Section 6.1 to the contrary, upon an Affiliate's termination of a Participant's employment with Cause, the Participant's
Employer will pay the vested balance of the Participant's Deferral Account as of the Valuation Date. Such payment shall be made in a single lump sum within 60 days after the Participant's
employment is terminated with Cause, but in no event earlier than January 2, 2002 or as soon as administratively practicable thereafter. The Employer may pay such benefits to the Participant
earlier if the Employer so elects. 

 
 

ARTICLE 7
  DEATH BENEFITS    
    

7.1   Pre-Retirement Death Benefits.  

        If a Participant dies while actively employed by an Affiliate, the Participant's Employer will pay such Participant's Beneficiary the vested balance of the
Participant's Deferral Account as of the Valuation Date. Such death benefits shall be paid to the Beneficiary in the form elected by the Participant in accordance with Section 5.2. If paid as a
lump sum, the benefit will be equal to the vested balance of the Participant's Deferral Account. If paid in installments, the installments will be paid in amounts that will amortize the Participant's
vested Deferral Account balance with interest credited at the 120% 10-Year Rate, as in effect from time to time, over the period of time benefits are to be paid. For purposes of
calculating installments, the Participant's Deferral Account will be valued as of December 31 each year, and subsequent installments will be adjusted for the next calendar year according to
procedures established by the Administrator. Benefits will be paid or installments will commence as soon as administratively practicable following the Participant's death, but in no event earlier than
January 2, 2002 or as soon as administratively practicable thereafter. 

7.2   Post-Retirement or Total Disability Death Benefits.  

        If a Participant dies (a) after Retirement or (b) after the Participant's employment by an Affiliate terminates following the Participant's Total
Disability, the Participant's Employer will pay the remaining balance of the Participant's Deferral Account to the Participant's Beneficiary at the same time and in the same form as such benefits
would have otherwise been paid to the Participant. 

7.3   Post-Termination Death Benefits.  

        If a Participant dies following termination of employment with an Affiliate for reasons other than (a) Retirement or (b) following the Participant's
Total Disability, but prior to the payment of all benefits under the Plan, the Participant's Employer will pay the remaining vested balance of the Participant's Deferral Account to the Beneficiary in
a lump sum as soon as administratively practicable following the Participant's death, but in no event earlier than January 2, 2002 or as soon as administratively practicable thereafter. 

7.4   Change in the Form of Benefits.  

        Beneficiaries may petition the Administrator once, and only after the death of the Participant, for a change in the form of death benefits. The Administrator may,
in its sole and absolute discretion, choose to grant or deny such a petition. 

8

 

7.5   Small Benefit Exception.  

        Notwithstanding the foregoing provisions of Section 7.1 and 7.2 set forth above, the Administrator may, in its sole discretion: 

        (a)   pay
death benefits in a single lump sum if the sum of all benefits payable to the Beneficiary is less than or equal to $3,500, or 

        (b)   reduce
the number of monthly installments elected by the Participant if necessary to produce a monthly death benefit of at least $300. 

 
 

ARTICLE 8
  TOTAL DISABILITY BENEFITS    
    

8.1   Amount of Benefits  

        Upon termination of a Participant's employment by an Affiliate following his or her Total Disability, the Participant's Employer will pay the Participant a
benefit in the form elected by the Participant in accordance with Section 5.2, based on the vested balance of the Participant's Deferral Account as of the
Valuation Date. If paid as a lump sum, the benefit will be equal to the vested balance of the Participant's Deferral Account. If paid in installments, the installments will be paid in amounts that
will amortize the Participant's vested Deferral Account balance with interest credited at the 120% 10-Year Rate, as in effect from time to time, over the period of time benefits are to be
paid. For purposes of calculating installments, the Participant's Deferral Account will be valued as of December 31 each year, and subsequent installments will be adjusted for the next calendar
year according to procedures established by the Administrator. 

8.2   Form of Benefits and Small Benefit Exception.  

        Benefits shall be paid in the form elected by the Participant in accordance with Section 5.2 and all the provisions of Section 5.2 (Form of
Benefits) and Section 5.4 (Small Benefit Exception) shall apply to all benefit payments made upon the Participant's termination of employment following his or her Total Disability. 

8.3   Commencement of Benefits.  

        Benefits will be paid or installments will commence within 60 days following termination of the Participant's employment, but in no event earlier than
January 2, 2002 or as soon as administratively practicable thereafter. 

 
 

ARTICLE 9
  IN-SERVICE WITHDRAWALS    
    

9.1   Scheduled Withdrawals  

        (a)    Election.    A Participant may elect on his or her Participation Election to receive distribution of a
specified dollar amount of his or her entire vested Deferral Account balance at a specified year in the future. A Participant may elect only one Scheduled Withdrawal and only one distribution per
year. Such election, if made, must be on the Participant's Participation Election at the time it is initially submitted to the Administrator and shall be irrevocable once filed. Notwithstanding the
foregoing, a Participant who has not previously made an election under this Section 9.1(a) may request a scheduled in-service withdrawal by filing a written election on or before
November 30, 2003, on a form and in a manner prescribed by the Administrator, with the Administrator; provided, however, that the written election will be invalid if (i) the withdrawal
is scheduled to occur less than 13 months after the written election is received by the administrator, (ii) the written election is received by the Administrator less 

9

 

than
13 months prior to the date of the Participant ceases to be employed by an Affiliate or (iii) the Participant ceases to be employed by an Affiliate prior to the date the Scheduled
Withdrawal is to be distributed. 

        (b)    Timing and Form.    Scheduled Withdrawals shall be paid in a lump sum on or as soon as administratively
practicable following January 1st of the year specified in the Participation Election. 

        (c)    Remaining Deferral Account.    The remainder, if any, of the Participant's Deferral Account following payment
of a Scheduled Withdrawal will remain credited to that Deferral Account and will be distributed according to the other terms of the Plan and the Participant's Participation Election. 

9.2   Unscheduled Withdrawals.  

        A Participant may elect, on a form provided and in a manner prescribed by the Administrator, to withdraw between 25% and 100% (in whole percentages) of his or her
vested Deferral Account balance at any time following the second anniversary of the Exchange Date. A Participant who makes an Unscheduled Withdrawal shall pay a penalty of 10% of the amount elected to
be withdrawn which shall be deducted from the amount of the Unscheduled Withdrawal otherwise payable and forfeited to the Employer. The 10% penalty percentage shall be reduced to 5% of the amount
elected to be withdrawn in the case of Unscheduled Withdrawals received within two years following a Change in Control. The following Unscheduled Withdrawal elections shall be treated as an election
to make an Unscheduled Withdrawal of 100% of the Participant's vested Deferral Account balance: (a) an Unscheduled Withdrawal of over 75% of the Participant's vested Deferral Account balance,
or (b) an Unscheduled Withdrawal which leaves a vested Deferral Account balance of $3,500 or less. The Unscheduled Withdrawal shall be paid within 30 days after the date the
Administrator receives an Unscheduled Withdrawal election from the Participant. 

9.3   Severe Financial Hardship Withdrawals.  

        A Participant may elect, on a form and in a manner prescribed by the Administrator, to withdraw all or a portion of his or her vested Deferral Account balance at
any time without penalty on account of his or her Severe Financial Hardship, provided that the Administrator approves the Participant's Severe Financial Hardship Withdrawal. However, a Severe
Financial Hardship Withdrawal shall not exceed the amount needed by the Participant to alleviate the Severe Financial Hardship, plus the amount of taxes that will be withheld from such withdrawal. The
Administrator is the final arbiter of whether a particular set of factual circumstances constitutes a Severe Financial Hardship to a Participant and the Administrator's decision shall be final and
binding. The amount of a Severe Financial Hardship Withdrawal that is approved by the Administrator shall be paid in a lump sum as soon as administratively practicable following the Administrator's
approval. 

 
 

ARTICLE 10
  CONDITIONS RELATED TO BENEFITS    
    

10.1   Nonassignability.  

        The benefits provided under the Plan may not be alienated, assigned, transferred, pledged or hypothecated by or to any person or entity, at any time or in any
manner whatsoever. These benefits will be exempt from the claims of creditors of any Participant or other claimants and from all orders, decrees, levies, garnishments or executions against any
Participant to the fullest extent allowed by law. Notwithstanding the foregoing, the benefit payable to a Participant may be assigned in full or in part, pursuant to a domestic relations order of a
court of competent jurisdiction or, following the Participant's death, may be paid to the Participant's Beneficiary. 

10

 

10.2   No Right to Assets.  

        The benefits paid under the Plan will be paid from the general assets of the respective Employer (or, in the event that Employer becomes insolvent, from the
general assets of EIX), and Participants and
Beneficiaries will be no more than unsecured general creditors of the Employer or EIX with no special or prior rights, claims or interests in any assets of the Employer and/or EIX for payment of any
obligations hereunder. To that end, EIX guarantees the Plan obligations of each other Employer should that Employer become insolvent. The Participant will have no claim to benefits from any other
Affiliate. 

10.3   Protective Provisions.  

        Participants and Beneficiaries will cooperate with the Administrator by furnishing any and all information requested by the Administrator to facilitate the
payment of benefits hereunder, taking such physical examinations as the Administrator may deem necessary, and taking such other actions (including filling out such reasonably required certificates) as
may be requested by the Administrator. If any Participant or Beneficiary refuses to cooperate, the Administrator and the Employer will have no further obligation to such Participant or Beneficiary
under the Plan. 

10.4   Taxes, Tax Withholding.  

        Each Participant, former Participant and Beneficiary shall be solely responsible for all income and employment taxes arising in connection with participation in
the Plan or becoming entitled to benefits under the Plan except to the extent the principles of tax equalization apply. The Administrator may reduce the amount of a Participant's Deferral Account or
any benefit otherwise payable under the Plan by the amount of any foreign, federal, state or local income tax withholding requirements and/or "hypothetical taxes" and Social Security, Medicare or
other employee tax requirements applicable to the accrued or payment of benefits under the Plan. To the extent the Administrator cannot or does not satisfy such withholding obligations in that manner,
Participants and Beneficiaries will make appropriate arrangements, as a condition to the payment of any benefit, with the Administrator for satisfaction of any such withholding obligation. 

10.5   Employer's Right to Defer Payment.  

        If the Administrator determines that an Employer's ability to take a tax deduction for one or more payments to be made under the Plan is, or reasonably could be,
limited by Code Section 162(m), the Employer may elect to defer such payment(s) until a year in which the Administrator determines that the Employer's tax deduction for such payment(s) is not,
or is reasonably not expected to be, limited by Code Section 162(m). Any payments deferred under this Section 10.5 shall remain in the Deferral Account of an affected Participant and
shall continue to earn interest at the rate applicable to that Deferral Account. 

10.6   Termination of Employment.  

        For all purposes of the Plan, a termination of a Participant's employment shall not be deemed to occur if the Participant's employment by one Affiliate terminates
and, within 30 days of that termination, the Participant is reemployed by the same or another Affiliate. 

10.7   Payments on Behalf of Persons Under Incapacity.  

        In the event that any amount becomes payable under the Plan to a person who, in the sole judgment of the Administrator, is considered by reason of physical or
mental condition to be unable to give a valid receipt therefor, the Administrator may direct that such payment be made to any person found by the Administrator, in its sole judgment, to have assumed
the care of such person. Any 

11

 

payment
made pursuant to such determination shall constitute a full release and discharge of the Administrator, the Employer and all other Affiliates. 

 
 

ARTICLE 11
  PLAN ADMINISTRATION    
    

11.1   General.  

        The Administrator will administer the Plan and interpret, construe and apply its provisions in accordance with its terms and will provide direction and oversight
as necessary to EIX management to whom day-to-day Plan operations are delegated. 

11.2   Administrator Action.  

        The Administrator shall act at meetings by affirmative vote of a majority of the members of the Administrator. 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 Administrator and such written consent is filed with the minutes of the proceedings
of the Administrator. A member of the Administrator 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 Administrator designated by the Chairman may execute any certificate or other written direction on behalf of the Administrator. 

11.3   Powers and Duties of the Administrator.  

        The Administrator shall have all powers necessary to accomplish its purposes under Section 11.1, including, but not by way of limitation, the power: 

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

        (b)   To
compute and certify the amount and kind of benefits payable to Participants and their Beneficiaries, to determine the time and manner in which such benefits are paid,
and to determine the amount of withholding taxes to be deducted pursuant to Section 10.4; 

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

        (d)   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; 

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

        (f)    To
appoint a plan administrator or any other agent, and to delegate to them such powers and duties in connection with the administration of the Plan as the Administrator
may from time to time prescribe. 

11.4   Construction and Interpretation.  

        The Administrator shall have full discretion to construe and interpret the terms and provisions of the Plan, which interpretation or construction shall be final
and binding on all parties, including but not limited to each Participating Affiliate and any Participant or Beneficiary. The Administrator shall administer such terms and provisions in a uniform and
nondiscriminatory manner and in full accordance with any and all laws applicable to the Plan. 

11.5   Information.  

        To enable the Administrator to perform its functions, each Participating Affiliate shall supply full and timely information to the Administrator on all matters
relating to the compensation of all 

12

 

Participants,
their Cash Exchange Amounts and SEU Exchange Amounts, their death or other cause of termination, and such other pertinent facts as the Administrator may require. 

11.6   Compensation, Expenses and Indemnity.  

        The members of the Administrator shall serve without compensation for their services hereunder. The Administrator is authorized at the expense of the
Participating Affiliates to employ such legal counsel and accountants as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the
administration of this Plan shall be paid by the Participating Affiliates. To the extent permitted by applicable state law, the Participating Affiliates shall indemnify and save harmless the
Administrator and each member thereof, and delegates of the Administrator who are employees of a Participating Affiliate, 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 the 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 Participating Affiliates or provided by the Participating Affiliates under
any bylaw, agreement or otherwise, as such indemnities are permitted under state law. 

 
 

ARTICLE 12
  BENEFICIARY DESIGNATION    
    

12.1   Beneficiary Designations—General.  

        Each Participant will have the right, at any time, to designate any person or persons as Beneficiaries (both primary and contingent) to whom payment under the
Plan will be made in the event of the Participant's death. The Beneficiary designation will be effective when it is received in writing by the Administrator during the Participant's lifetime on a form
prescribed by the Administrator. 

        The
receipt of a new valid Beneficiary designation by the Administrator will cancel all prior Beneficiary designations. Any finalized divorce or marriage of a Participant subsequent to
the date of a Beneficiary designation will revoke such designation, unless in the case of divorce the previous spouse was not designated as Beneficiary, and unless in the case of marriage the
Participant's new spouse previously was designated as Beneficiary. The spouse of a married Participant must consent in writing to any designation of a Beneficiary other than the spouse. 

        If
a Participant fails to validly designate a Beneficiary as provided above, or if the Beneficiary designation is revoked by marriage, divorce, or otherwise without execution of a new
designation, or if every person designated as Beneficiary predeceases the Participant or dies prior to the complete distribution of the Participant's benefits, then the Administrator will direct the
payment of the Participant's remaining benefits to the Participant's surviving spouse, or if there is no surviving spouse, to the Participant's estate. If a Beneficiary dies after commencement of
payment of the Participant's benefits to such Beneficiary, a lump sum of any remaining payments will be paid to such Beneficiary's beneficiary, if one has been designated, or to such Beneficiary's
estate. 

12.2   Payments to Minors.  

        Notwithstanding anything else herein to the contrary, in the event any amount is payable under the 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 Administrator 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 Administrator decides not to select another custodian to hold the funds for the minor, then 

13

 

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. 

 
 

ARTICLE 13
  AMENDMENT OR TERMINATION OF PLAN    
    

13.1   Amendment of Plan.  

        Subject to the terms of Section 13.3, EIX may amend the Plan at any time in whole or in part, provided, however, that the amendment: (a) will not
decrease the balance of any Participant's Deferral Account at the time of the amendment, and (b) will not result in a change to the interest formula that effectively decreases the interest
rates under the Plan. EIX may, however, amend the interest crediting dates of the Plan prospectively, in which case the Administrator will notify Participants of the amendment in writing within
30 days after the amendment. 

13.2   Termination of Plan.  

        Subject to the terms of Section 13.3, EIX may terminate the Plan at any time. If EIX terminates the Plan, all Plan benefits will become fully vested, and
the benefits Participants are entitled to receive under the Plan will be paid to Participants in a lump sum within 60 days of the Plan's termination. 

13.3   Amendment or Termination After Change in Control.  

        Notwithstanding the foregoing, EIX will not amend or terminate the Plan without the prior written consent of affected Participants for a period of two calendar
years following a Change in Control, and will not thereafter amend or terminate the Plan in any manner which affects any Participant or Beneficiary who commences receiving benefits under the Plan
prior to the end of the two year period following the Change in Control. 

13.4   Exercise of Power to Amend or Terminate.  

        Except as provided in Section 13.3, EIX's power to amend or terminate the Plan will be exercisable by the Administrator. 

13.5   Constructive Receipt Termination.  

        Notwithstanding anything to the contrary in the Plan, in the event the Administrator determines that amounts deferred under the Plan have been constructively
received by a Participant and must be recognized as income for income tax purposes under applicable law, the Administrator may, in its sole discretion, commence distribution of that Participant's
Deferral Account on such terms as it may prescribe. The determination of the Administrator will be binding and conclusive. 

 
 

ARTICLE 14
  CLAIMS AND ARBITRATION PROCEDURES    
    

14.1   Claims and Review Procedures.  

        (a)    Initial Claim.    The Administrator will notify a Participant in writing, within 90 days after his or
her written application for benefits, of his or her eligibility or ineligibility for benefits under the Plan. If the Administrator determines that a Participant is ineligible for benefits or full
benefits, the notice will set forth: (i) the specific reasons for the denial, (ii) a specific reference to the provisions of the Plan on which the denial is based, (iii) a
description of any additional information or material necessary for the claimant to perfect his or her claim and a description of why it is needed, and (iv) an 

14

 

explanation
of the Plan's claims review procedures and other appropriate information as to the steps to be taken if the Participant wishes to have the claim denial reviewed. If the Administrator
determines that there are special circumstances requiring additional time to make a decision, the Administrator will notify the Participant of the special circumstances and the date by which a
decision is expected to be made, and may extend the time for up to an additional 90-day period. 

        (b)    Review of Claim Denial.    If a Participant is determined by the Administrator to be ineligible for benefits,
or if the Participant believes that he or she is entitled to greater or different benefits, the Participant will have the opportunity to have the claim denial reviewed by the Administrator by filing a
petition for review with the Administrator within 60 days after receipt of the claim denial notice issued by the Administrator. Said petition will state the specific reasons which the
Participant believes entitle him or her to benefits or to greater or different benefits. Within 60 days after receipt by the Administrator of the petition, the Administrator will afford the
Participant (and counsel, if any) an opportunity to present his or her position to the Administrator orally or in writing, and the Participant (or counsel) will have the right to review any pertinent
documents. The Administrator will notify the Participant of its decision in writing within the 60-day period, stating specifically the basis for its decision, written in a manner
calculated to be understood by the Participant and the specific provisions of the Plan on which the decision is based. If, because of special circumstances, the 60-day period is
insufficient, the decision may be deferred for up to another 60-day period at the election of the Administrator and notice of this deferral will be given to the Participant. In the event
of the death of the Participant, the same procedures will apply to the Participant's Beneficiaries. 

14.2   Dispute Arbitration.  

        If a Participant or Beneficiary is dissatisfied with the Administrator's decision on review, the matter shall be resolved through final and binding arbitration in
Los Angeles, California, pursuant to California Civil Procedure Code Sections 1282-1284.2 (excluding Sections 1283 and 1283.05). The arbitration shall be before a single neutral arbitrator
mutually agreed upon by the parties. In the event that the parties are unable to agree upon an arbitrator, the arbitrator shall be selected pursuant to California Civil Procedure Code
Section 1281.6. If a Participant or Beneficiary does not submit a request for arbitration within 30 days of receipt of the Administrator's written decision on review, the Participant or
Beneficiary will be bound by the Administrator's determination on review and may not thereafter be entitled to a review of the Administrator's determination by an arbitrator or a court. 

 
 

ARTICLE 15
  MISCELLANEOUS    
    

15.1   Successors.  

        The rights and obligations of each Employer under the Plan will inure to the benefit of, and will be binding upon, the successors and assigns of the Employer. 

15.2   ERISA Plan.  

        The Plan is intended to be an unfunded plan maintained primarily to provide deferred compensation benefits for a "select group of management or highly compensated
employees" within the meaning of Sections 201, 301 and 401 of ERISA, and therefore, the Plan is intended to be exempt from Parts 2, 3 and 4 of Title I of ERISA. EIX is the named fiduciary. 

15.3   Trust.  

        The Employers will be responsible for the payment of all benefits under the Plan. At their discretion, Employers may establish one or more grantor trusts for the
purpose of providing for payment of benefits under the Plan. The trust or trusts may be irrevocable, but an Employer's share of 

15

 

the
assets thereof will be subject to the claims of the Employer's creditors. Benefits paid to the Participant from any such trust will be considered paid by the Employer for purposes of meeting the
obligations of the Employer under the Plan. 

15.4   Employment Not Guaranteed.  

        Nothing in the Plan, nor any amounts credited to a Participant's Deferral Account, shall confer upon any Participant any right to continue in the employ of any
Affiliate, constitute any contract or agreement of employment or affect any Participant's status as an employee at will, nor shall interfere in any way with the right of any Affiliate to change any
Participant's compensation or other benefits, or to terminate any Participant's employment with or without Cause. Nothing in this Section 15.4, however, is intended to adversely affect any
express independent right of such person under a separate employment contract. 

15.5   Continued Service.  

        The vesting schedule applicable to benefits under the Plan requires continued service through each applicable vesting date as a condition to the vesting of the
applicable installment of Plan benefits and
the rights and benefits under the Plan. Partial service, even if substantial, during any vesting period will not entitle a Participant to any proportionate vesting or avoid or mitigate a termination
of rights and benefits upon or following a termination of employment as provided in Section 3.2(a), except as otherwise expressly provided in Section 3.2(b) or 3.2(c). 

15.6   Gender, Singular and Plural.  

        All pronouns and variations thereof will be deemed to refer to the masculine, feminine, or neuter, as the identity of the person or persons may require. As the
context may require, the singular may be read as the plural and the plural as the singular. 

15.7   Captions.  

        The captions of the articles and sections of the Plan are for convenience only and will not control or affect the meaning or construction of any of its
provisions. 

15.8   Validity.  

        If any provision of the Plan is held invalid, void or unenforceable, the same will not affect, in any respect whatsoever, the validity of any other provisions of
the Plan. 

15.9   Waiver of Breach.  

        The waiver by the Employer or an Affiliate of any breach of any provision of the Plan by the Participant will not operate or be construed as a waiver of any
subsequent breach by the Participant. 

15.10   Expenses.  

        Expenses and fees incurred in connection with the administration of the Plan shall be paid by EIX. The Administrator is authorized to employ such legal counsel
and consultants as it may deem advisable to assist in the performance of its administrative duties. 

15.11   Applicable Law.  

        The Plan will be governed and construed in accordance with the laws of California except where the laws of California are preempted by ERISA. 

16

 

15.12   Notice.  

        Any notice or filing required or permitted to be given to an Employer or an Affiliate under the Plan will be sufficient if made in writing and
hand-delivered, or sent by first class or equivalent mail to the principal office of EIX, directed to the attention of the Administrator. The notice will be deemed given as of the date of
delivery, or, if delivery is made by mail, as of the date shown on the postmark. Notwithstanding the foregoing, a Participant's Participation Election may be filed by facsimile transmission as
provided in the instructions to the Edison International-Edison Mission Energy Affiliate Option Exchange Offer Election Form and Tax Equalization Agreement and Release Agreement for U.S. Employees in
Singapore. 

17

QuickLinks

Exhibit 10.55

APPENDIX A TO THE EDISON INTERNATIONAL AFFILIATE OPTION DEFERRED COMPENSATION PLAN (AMENDED AND RESTATED)

TABLE OF CONTENTS

APPENDIX A TO THE EDISON INTERNATIONAL AFFILIATE OPTION DEFERRED COMPENSATION PLAN (AS AMENDED AND RESTATED)

ARTICLE 1 DEFINITIONS

ARTICLE 2 PARTICIPATION

ARTICLE 3 EMPLOYEE DEFERRALS

ARTICLE 4 DEFERRAL ACCOUNTS AND INTEREST—GENERAL RULES

ARTICLE 5 RETIREMENT BENEFITS

ARTICLE 6 TERMINATION OF EMPLOYMENT BENEFITS

ARTICLE 7 DEATH BENEFITS

ARTICLE 8 TOTAL DISABILITY BENEFITS

ARTICLE 9 IN-SERVICE WITHDRAWALS

ARTICLE 10 CONDITIONS RELATED TO BENEFITS

ARTICLE 11 PLAN ADMINISTRATION

ARTICLE 12 BENEFICIARY DESIGNATION

ARTICLE 13 AMENDMENT OR TERMINATION OF PLAN

ARTICLE 14 CLAIMS AND ARBITRATION PROCEDURES

ARTICLE 15 MISCELLANEOUSEXHIBIT 10.25  

        As disclosed in the annual report on form 10-K filed by Midwest Generation, this is not an agreement to which Midwest Generation is a party.
However, because it contains a number of provisions to which Midwest Generation is bound, it is incorporated by reference. This caption does not constitute a part of the Guarantee. 

GUARANTEE  

Dated as of December 11, 2003 

in
favor of 

CITICORP
NORTH AMERICA, INC., as Administrative Agent 

made
by 

MIDWEST GENERATION EME, LLC

as Guarantor 

        GUARANTEE dated as of December 11, 2003, between MIDWEST GENERATION EME, LLC, a limited liability company duly organized and validly existing under the laws of the State of
Delaware (the "Guarantor"); and CITICORP NORTH AMERICA, INC, as administrative agent for the lenders or other financial institutions or entities party,
as lenders, to the Credit Agreement referred to below (in such capacity, together with its successors in such capacity, the "Administrative Agent"). 

        Mission
Energy Holdings International, Inc., a corporation organized under the laws of the State of Delaware (the "Borrower"),
certain lenders and the Administrative Agent are parties to a Credit Agreement dated as of December 11, 2003 (as modified and supplemented and in effect from time to time, the
"Credit Agreement"), providing, subject to the terms and conditions thereof, for loans to be made by said lenders to the Borrower in an aggregate
principal amount not exceeding $800,000,000. 

        To
induce said lenders to enter into the Credit Agreement and to extend credit thereunder, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantor has agreed (to the extent hereinafter provided), along with the other BV Holdings Guarantors, to jointly and severally guarantee the Guaranteed Obligations (as hereinafter
defined). Accordingly, the parties hereto agree as follows: 

        Section 1.    Definitions.    Capitalized terms not otherwise defined herein shall have the meanings set forth
in Annex A hereto. 

        Section 2.    The Guarantee.    

        2.01    The Guarantee.    Subject to the limitations set forth in Sections 2.08 and
2.09, the Guarantor hereby, along with the other BV Holdings Guarantors, jointly and severally guarantee to each Lender and the Administrative Agent and their respective
successors and assigns the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the principal of and interest on the Loans made by the Lenders to the Borrower
and all other amounts from time to time owing to the Lenders or the Administrative Agent by the Borrower under the Credit Agreement, in each case strictly in accordance with the terms thereof (such
obligations being herein collectively called the "Guaranteed Obligations"). The Guarantor hereby further agrees that if the Borrower shall fail to pay
in full when due (whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, the Guarantor, along with the other BV Holdings Guarantors, jointly and severally will
promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid
in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. 

        2.02    Obligations Unconditional.    Subject to the limitations set forth in Sections 2.08
and 2.09, the obligations of the Guarantor under Section 2.01 (along with the obligations of the other BV Holdings
Guarantors under the other BV Holdings Guarantees) are absolute and unconditional, joint and several, irrespective of the value, genuineness, validity, regularity or enforceability of the Credit
Agreement or any other agreement or instrument referred to herein, or any substitution, release or exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, to the
fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it
being the intent of this Section 2.02 that the obligations of the Guarantor hereunder (and the obligations of the other BV Holdings Guarantors
under the other BV Holdings Guarantees) shall be absolute and unconditional, joint and several, under any and all circumstances. Without limiting the generality of the foregoing, it is agreed that the
occurrence of any one or more of the following shall not alter or impair the liability of the Guarantor hereunder which shall remain absolute and unconditional as described above: 

          (i)  at
any time or from time to time, without notice to the Guarantor, the time for any performance of or compliance with any of the Guaranteed Obligations shall be
extended, or such performance or compliance shall be waived; 

         (ii)  any
of the acts mentioned in any of the provisions of the Credit Agreement or any other agreement or instrument referred to herein shall be done or omitted; 

        (iii)  the
maturity of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be modified, supplemented or amended in any respect,
or any right under the Credit Agreement or any other agreement or instrument referred to herein shall be waived or any other guarantee of any of the Guaranteed Obligations or any security therefor
shall be released or exchanged in whole or in part or otherwise dealt with; or 

        (iv)  any
lien or security interest granted to, or in favor of, the Administrative Agent or any Lender or Lenders as security for any of the Guaranteed Obligations shall fail
to be perfected. 

The
Guarantor hereby expressly waives, to the extent permitted by applicable law, diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed against the Borrower under the Credit Agreement or any other agreement or instrument referred to herein, or against any
other Person under any other guarantee (including other BV Holdings Guarantees) of, or security for, any of the Guaranteed Obligations. 

        2.03    Reinstatement.    The obligations of the Guarantor under this  Section 2 shall be automatically reinstated if and to the
extent that for any reason any payment by or on behalf of the Borrower in respect of
the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, and the Guarantor, along with the other BV Holdings Guarantors, jointly and severally agree that they will indemnify the Administrative Agent and each Lender on demand for all reasonable
costs and expenses (including, without limitation, fees of counsel) incurred by the Administrative Agent or such Lender in connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. 

        2.04    Subrogation.    The Guarantor hereby waives all rights of subrogation or contribution, whether arising by
contract or operation of law (including, without limitation, any such right arising under the Federal Bankruptcy Code) or otherwise by reason of any payment by it pursuant to the provisions of this  Section 2 and further agrees with the Borrower for the benefit of each of its creditors (including, without limitation, each Lender and the
Administrative Agent) that any such payment by it shall constitute a contribution of capital by the Guarantor to the Borrower (or an investment in the equity capital of the Borrower by the Guarantor). 

        2.05    Remedies.    The Guarantor, along with the other BV Holdings Guarantors, jointly and severally agree that, as
between the Guarantor, the other BV Holdings Guarantors and the Lenders, the obligations of the Borrower under the Credit Agreement may be declared to be forthwith due and payable as provided in  Section 8.3 of the Credit Agreement (and shall be deemed to have become automatically due and payable in the circumstances provided in said  Section 8.2 of the
Credit Agreement) for purposes of Section 2.01 notwithstanding any
stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable) as against the Borrower and that, in the event of such declaration
(or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by the Borrower) shall forthwith become due and payable by the
Guarantor for purposes of Section 2.01. 

        2.06    Instrument for the Payment of Money; Post-Default Interest.    The Guarantor hereby acknowledges
that the guarantee in this Section 2 constitutes an instrument for the payment of money, and consents and agrees that any Lender or the Administrative Agent, at its sole option, in the event of
a dispute by the Guarantor in the payment of any moneys due hereunder, shall have the right to bring motion action under New York CPLR Section 3213. In addition, the Guarantor hereby agrees
that (without regard to the limitation contained in Section 2.09) in the event it shall fail to pay in full any amount owing by it hereunder on
the date upon which the same shall become due (whether upon demand or otherwise), it shall be obligated to pay interest at the Post-Default Rate in respect of such 

amount
for each day during the period from and including the due date thereof to but excluding the date the same shall be paid in full, such interest to be payable upon demand of the Administrative
Agent. 

        2.07    Continuing Guarantee.    The guarantee in this  Section 2 is a continuing guarantee, and shall apply to all Guaranteed
Obligations whenever arising. 

        2.08    General Limitation on Guarantee Obligations.    In any action or proceeding involving any state corporate law,
or any state or Federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of the Guarantor under  Section 2.01 would otherwise be
held or determined to be void, invalid or unenforceable, or subordinated to the claims of any other creditors, on
account of the amount of its liability under Section 2.01, then, notwithstanding any other provision hereof to the contrary, the amount of such
liability shall, without any further action by the Guarantor, the Administrative Agent, the Lenders or any other Person, be automatically limited and reduced to the highest amount that is valid and
enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding. 

        2.09    Dollar Limitation on Guarantee Obligations.    Notwithstanding the foregoing provisions of this  Section 2, the
aggregate amount that the Guarantor may be required to pay under  Section 2.01, plus the amounts required to be paid by the other BV Holdings
Guarantors under the
other BV Holdings Guarantees, shall not exceed an amount equal to the principal amount of the Loans on the Closing Date (and if less the aggregate principal amount of the Loans outstanding at any
time), plus accrued and unpaid interest (whether due after acceleration or otherwise, applicable fees, expenses and all other amounts payable with
respect to such Loans under the Loan Documents. 

        2.10.    Rights of Contribution.    The Guarantor hereby agrees, and each other BV Holdings Guarantor has agreed in
its respective BV Holdings Guarantee that, as between themselves, that if any of the BV Holdings Guarantors shall become an Excess Funding Guarantor (as defined below) by reason of the payment by such
BV Holdings Guarantor of any Guaranteed Obligations, each other BV Holdings Guarantor shall, on demand of such Excess Funding Guarantor (but subject to the next sentence), pay to such Excess Funding
Guarantor an amount equal to such BV Holdings Guarantor's Pro Rata Share (as defined below and determined, for this purpose, without reference to the properties, debts and liabilities of such Excess
Funding Guarantor) of the Excess Payment (as defined below) in respect of such Guaranteed Obligations. The payment obligation of a BV Holdings Guarantor to any Excess Funding Guarantor under this  Section 2.10 shall be subordinate and subject in right of payment to the prior payment in full of the obligations of such BV Holdings Guarantor
under the other provisions of this Article and such Excess Funding Guarantor shall not exercise any right or remedy with respect to such excess until payment and satisfaction in full of all of such
obligations. 

        For
purposes of this Section 2.10, (i) "Excess Funding Guarantor" means, in
respect of any Guaranteed Obligations, a BV Holdings Guarantor that has paid an amount in excess of its Pro Rata Share of such Guaranteed Obligations, (ii) "Excess
Payment" means, in respect of any Guaranteed Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations and
(iii) "Pro Rata Share" means, for any BV Holdings Guarantor, the ratio (expressed as a percentage) of (x) the amount by which the
aggregate present fair saleable value of all properties of such BV Holdings Guarantor (excluding any shares of stock of any other BV Holdings Guarantor) exceeds the amount of all the debts and
liabilities of such BV Holdings Guarantor (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of such BV Holdings Guarantor hereunder and any
obligations of any other BV Holdings Guarantor that have been Guaranteed by such BV Holdings Guarantor) to (y) the amount by which the aggregate fair saleable value of all properties of all of
the BV Holdings Guarantors exceeds the amount of all the debts and liabilities (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of the
Borrower and the BV Holdings Guarantors hereunder and under the other Loan Documents) of all of the BV Holdings Guarantors. 

        Section 3.    Representations and Warranties.    The Guarantor represents and warrants as of the Effective Date
with respect to itself and with respect to its Subsidiaries, to the Lenders and the Administrative Agent that: 

        3.01    Organization; Power; Compliance with Law and Contractual Obligations.    Each of the Guarantor and its
Subsidiaries (a) is a corporation or a limited liability company validly organized and existing and in good standing under the laws of the state of its incorporation or organization,
(b) is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the nature of its business requires such qualification, (c) has all
requisite corporate or limited liability company power and authority and holds all material requisite governmental licenses, permits and other approvals to conduct its business substantially as
currently conducted by it and, in the case of the Guarantor, perform its obligations hereunder and (d) is in compliance with all laws, governmental regulations (including ERISA and Federal
Reserve regulations), court decrees, orders and Contractual Obligations applicable to it, except, with respect to clauses (b),  (c) and (d) to the extent that the failure to comply therewith would not reasonably be expected to have
a Material Adverse Effect. 

        3.02    Due Authorization; Non-Contravention.    The execution, delivery and performance by the Guarantor
of this Agreement is within the Guarantor's limited liability company powers, has been duly authorized by all necessary limited liability company action, and does not: 

        (a)   contravene
the Guarantor's Organic Documents; 

        (b)   contravene
any law, governmental regulation, court decree or order or material Contractual Obligation binding on or affecting the Guarantor or its Subsidiaries; or 

        (c)   result
in, or require the creation or imposition of, any Lien on any of the Guarantor's or its Subsidiaries' properties. 

        3.03    Governmental Approval; Regulation.    

        (a)   No
authorization, consent, approval, license, exemption of or filing or registration with any court or governmental authority or regulatory body
("Governmental Approval") is required for the Guarantor to execute and perform its obligations hereunder, except for those which have been duly obtained
or effected. No material Governmental Approval is required for the Guarantor or its Subsidiaries to carry on its business, except for those which have been duly obtained or effected. 

        (b)   Neither
the Guarantor nor its Subsidiaries is (i) subject to any regulation as an "investment company" under the Investment Company Act of 1940, as amended, or
(ii) a "holding company" or a "subsidiary" or an "affiliate" of a "holding company" that is subject to the Public Utility Holding Company Act of 1935, as amended, except Section 9(a)(2),
32 or 33 thereof. The Guarantor or its Subsidiaries are not otherwise subject to any regulation as a "public utility" under any other applicable law, rule or regulation, which would have a Material
Adverse Effect. 

        3.04    Validity.    This Agreement constitutes the legal, valid and binding obligations of the Guarantor enforceable
in accordance with their respective terms (except as may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally and general principles of
equity). 

        3.05    Financial Information.    The unaudited consolidated balance sheet of the Guarantor and its Subsidiaries as at
December 31, 2002, and the related consolidated statement of income of the Guarantor and its Subsidiaries, copies of which have been furnished to the Administrative Agent, have been prepared
using GAAP and present fairly in all material respects the consolidated financial condition of the Guarantor and its Subsidiaries as at the dates thereof and the results of their operations for the
period then ended. 

        3.06    No Material Adverse Change.    There has not occurred any event or condition having a Material Adverse Effect
since December 31, 2002, except as otherwise disclosed in the Relevant Public Filings. 

        3.07    Litigation.    Except as disclosed in the Relevant Public Filings, there is no pending or, to the knowledge of
the Guarantor or its Subsidiaries, threatened litigation, action, proceeding, or labor controversy affecting the Guarantor or its Subsidiaries, or any of its properties, businesses, assets or
revenues, which, if adversely determined (taking into account any insurance proceeds payable under a policy where the insurer has accepted coverage without any reservations), would have a Material
Adverse Effect or which purports to adversely affect the legality, validity or enforceability of this Agreement. 

        3.08    Ownership of Properties.    

        (a)   Except
as set forth (i) on Schedule 3.08(a) hereto and (ii) in the Correlative Financing Provisions, each of the Guarantor and its Subsidiaries owns
good and marketable title to, or a valid leasehold interest in or other enforceable interest in all properties and assets, real and personal, tangible and intangible, of any nature whatsoever
(including patents, trademarks, trade names, service marks and copyrights) purported to be owned, leased or held by it, free and clear of all Liens, charges or claims (including infringement claims
with respect to patents, trademarks, copyrights and the like) except as permitted pursuant to Section 5.02. 

        (b)   The
properties and assets of each of the Guarantor and its Subsidiaries are separately identifiable and are not commingled with the properties and assets of any other
entity, except that for certain internal organizational, but not legal, purposes, the Illinois plants operated by the Subsidiaries of the Guarantor as well as the Homer City plant operated by an
Affiliate of the Guarantor are sometimes referred to collectively as Midwest Generation. The properties and assets of each of the Guarantor and its Subsidiaries are readily distinguishable from the
properties and assets of EME. 

        3.09    Taxes.    Each of the Guarantor and its Subsidiaries has filed all tax returns and reports required by law to
have been filed by it and has paid all taxes and governmental charges thereby shown to be owing, except any such taxes or charges which are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books. 

        3.10    Pension and Welfare Plans.    During the consecutive twelve-month period prior to the date of the execution
and delivery of this Agreement, no steps have been taken to terminate any Pension Plan, and no contribution failure has occurred with respect to any Pension Plan sufficient to give rise to a Lien
under Section 302(f) of ERISA. No condition exists or event or transaction has occurred with respect to any Pension Plan which would reasonably be expected to result in the incurrence by the
Guarantor or any member of the Controlled Group of any material liability (other than liabilities incurred in the ordinary course of maintaining the Pension Plan), fine or penalty. Neither the
Guarantor nor any member of the Controlled Group has any contingent liability with respect to any post-retirement benefit under a Welfare Plan which would reasonably be expected to have a
Material Adverse Effect, other than liability for continuation coverage described in Part 6 of Title I of ERISA. 

        3.11    Environmental Warranties.    

        (a)   All
facilities and property owned or leased by the Guarantor or any of its Subsidiaries or, to its knowledge, Joint Enterprises have been, and continue to be, owned or
leased by the Guarantor and its Subsidiaries in compliance with all Environmental Laws, except where the failure so to comply would not have, or be reasonably expected to have, a Material Adverse
Effect. 

        (b)   Except
as disclosed in the Relevant Public Filings, there are no pending or, to the knowledge of the Guarantor, threatened: 

          (i)  claims,
complaints, notices or requests for information received by the Guarantor or its Subsidiaries from governmental authorities with respect to any alleged
violation by the Guarantor or its Subsidiaries of any Environmental Law that, singly or in the aggregate, have, or would reasonably be expected to have, a Material Adverse Effect; or 

         (ii)  complaints,
notices or inquiries to the Guarantor or its Subsidiaries from governmental authorities regarding potential liability under any Environmental Law that,
singly or in the aggregate, have, or would reasonably be expected to have, a Material Adverse Effect. 

        (c)   (i) To
the knowledge of the Guarantor and except as have been disclosed in the Relevant Public Filings, there have been no Releases (as defined under any
Environmental Law) of Hazardous Materials prior to December 15, 1999 at, on or under any property now or previously owned or leased by the Guarantor or its Subsidiaries and (ii) except
as have been disclosed in the Relevant Public Filings after December 15, 1999, there have been no Releases (as defined under any Environmental Law) of Hazardous Materials at, on or under any
property now or previously owned or leased by the Guarantor or its Subsidiaries that, singly or in the aggregate, have, or would reasonably be expected to have, a Material Adverse Effect. 

        (d)   Each
of the Guarantor and its Subsidiaries has obtained and is in compliance with all permits, certificates, approvals, licenses and other authorizations relating to
environmental matters and necessary for the Guarantor's or its Subsidiaries' business, except where the failure to obtain, maintain or comply with such permits, certificates, approvals, licenses or
other authorizations would not have, or be reasonably expected to have, a Material Adverse Effect. 

        (e)   To
the reasonable knowledge of the Guarantor, no property now or previously owned or leased by the Guarantor or its Subsidiaries is listed or proposed for listing (with
respect to owned property only) on the National Priorities List pursuant to any Environmental Law, on the CERCLIS or on any similar state list of sites requiring investigation or clean-up. 

        (f)    No
conditions exist at, on or under any property now or previously owned or leased by the Guarantor or its Subsidiaries which, with the passage of time, or the giving of
notice or both, would give rise to liability under any Environmental Law which liability would have, or would reasonably be expected to have, a Material Adverse Effect. 

        3.12    Regulations T, U and X.    Neither the Guarantor nor its Subsidiaries is engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock, and no proceeds of any Loans will be used for a purpose which violates, or would be inconsistent with, F.R.S. Board Regulation T,
U or X. Terms for which meanings are provided in F.R.S. Board Regulation T, U or X or any regulations substituted therefore, as from time to time in effect, are used in this  Section 3.12 with
such meanings. 

        3.13    The Obligations.    Except as set forth in  Schedule 5.01, this Agreement is the only outstanding Indebtedness of the
Guarantor. 

        3.14    Separateness.    

        (a)   The
Guarantor and its Subsidiaries maintain separate bank accounts and separate books of account from those bank accounts and books of account of EME and any other
entity. The separate liabilities of the Guarantor and its Subsidiaries are readily distinguishable from the liabilities of EME. 

        (b)   Although
the Guarantor and its Subsidiaries generally do business under the collective name of "Midwest Generation," each of the Guarantor and its Subsidiaries enters
into contractual relations solely in its own name in a manner not misleading to other Persons as to its identity. Without limiting the generality of the foregoing, all invoices, purchase orders,
contracts, statements, and applications are made solely in the name of the Guarantor or its Subsidiaries, if related to the Guarantor or its Subsidiaries. 

        (c)   The
Guarantor is a 100% wholly owned direct Subsidiary of EME. 

        Section 4.    Affirmative Covenants.    The Guarantor agrees, with respect to itself and with respect to
Subsidiaries and Joint Enterprises, if any, it may have now or in the future that, until the payment and satisfaction in full of the Guaranteed Obligations: 

        4.01    Financial Information, Reports, Notices.    The Guarantor will furnish, or will cause its Subsidiaries to
furnish, to the Administrative Agent (a) copies of the financial statements, reports, 

notices
and information required to be furnished pursuant to Section 7.11 of the Credit Agreement, (b) copies of the documents governing
Permitted Refinancing Indebtedness of each Financed Subsidiary referred to in the definition of "Correlative Financing Provisions" and all amendments, supplements and modifications thereto and
(c) other information reasonably requested by the Administrative Agent. 

        4.02    Compliance with Laws.    The Guarantor will, and will cause each of its Subsidiaries and will use reasonable
efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, comply in all material respects with all applicable laws,
rules, regulations and orders, such compliance to include the payment, before the same become delinquent, of all taxes, assessments and governmental charges imposed upon it or upon its property
(except to the extent non-compliance would not reasonably be expected to have a Material Adverse Effect and to the extent that such assignments and charges are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books); provided that, in the case of each Financed Enterprise,
compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the failure of such Financed Enterprise to so comply with the
Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        4.03    Maintenance of Properties.    The Guarantor will, and will cause each of its Subsidiaries and will use
reasonable efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, maintain, preserve, protect and keep its
property and equipment in good repair, working order and condition (ordinary wear and tear excepted), and make necessary and proper repairs, renewals and replacements so that its business carried on
in connection therewith may be properly conducted at all times unless the Guarantor determines in good faith that the continued maintenance of any of its properties or equipment is no longer
economically desirable and except where the failure so to do would not have a Material Adverse Effect; provided that, in the case of each Financed Enterprise, compliance with the Correlative Financing
Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be
deemed to be a breach of this Section by the Guarantor). 

        4.04    Insurance.    The Guarantor will, and will cause each of its Subsidiaries and will use reasonable efforts to
cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, maintain or cause to be maintained with responsible insurance
companies insurance with respect to its properties and business against such casualties and contingencies and of
such types and in such amounts as is customary in the case of similar businesses and in a similar geographic region; provided that, in the case of each Financed Enterprise, compliance with the
Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the failure of such Financed Enterprise to so comply with the Correlative Financing
Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        4.05    Books and Records.    The Guarantor will: 

        (a)   keep
books and records separate from the books and records of its Affiliates or any other entity which accurately reflect all of its business affairs, transactions and
the documents and other instruments that underlie all limited liability company actions; 

        (b)   cause
each of its Subsidiaries to keep books and records which accurately reflect their affairs and transactions; 

        (c)   keep
separate books and records from EME and separately identify its own property, assets, liabilities and financial affairs from EME; and 

        (d)   permit
the Administrative Agent and Lenders (at such Lender's expense) or any of their respective representatives, at reasonable times and intervals upon reasonable
prior notice, to visit all of its offices, to discuss its financial matters with its officers and independent public accountant. 

        The Guarantor will at any reasonable time and from time to time upon reasonable prior notice, permit the Administrative Agent or any of their respective agents or representatives to
examine and make copies of and abstracts from the records and books of account of the Guarantor; provided that by virtue of this  Section 4.05 the
Guarantor shall not be deemed to have waived any right to confidential treatment of the informational obtained, subject to the
provisions of applicable law or court order. 

        4.06    Environmental Covenant.    The Guarantor will, and will cause each of its Subsidiaries and will use reasonable
efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to: 

        (a)   use
and operate all of its facilities and properties in compliance with all Environmental Laws, keep all necessary permits, approvals, certificates, licenses and other
authorizations relating to environmental matters in effect and remain in material compliance therewith, and handle all Hazardous Materials in material compliance with all applicable Environmental
Laws, in each case where the failure to do so may reasonably be expected to have a Material Adverse Effect; and 

        (b)   provide
such non-privileged information as the Administrative Agent may reasonably request from time to time to evidence compliance with this  Section 4.06; 

provided
that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the
failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        4.07    Conduct of Business and Maintenance of Existence.    The Guarantor will, and will cause each of its
Subsidiaries and will use reasonable efforts to cause each of its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, continue to engage in
business of the same type as now conducted by it and preserve, renew and keep in full force and effect its existence (corporate or otherwise) and good standing in the state of its organization and
take all reasonable action to maintain all material rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted by  Sections 5.04 and 5.05; provided that, in the case of each Financed Enterprise, compliance with the
Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the failure of such Financed Enterprise to so comply with the Correlative Financing
Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        4.08    Separateness.    The Guarantor will: 

        (a)   act
solely in its name and through its duly authorized officers or agents in the conduct of its businesses; 

        (b)   except
as described in Section 3.14(b), conduct its business solely in its own name, in a manner not misleading to other Persons as to its identity, (without
limiting the generality of the foregoing, all invoices, purchase orders, contracts, statements, and applications are made and shall continue to be made solely in the name of the Guarantor, if related
to the Guarantor); and 

        (c)   obtain
proper authorization from its managing directors or members, as required by its Organic Documents for all limited liability company actions of the Guarantor. 

        Section 5.    Negative Covenants.    The Guarantor agrees, with respect to itself and with respect to
Subsidiaries and Joint Enterprises, if any, it may have now or in the future that, until the payment and satisfaction in full of the Guaranteed Obligations: 

        5.01    Restrictions on Indebtedness.    The Guarantor will not, will not permit its Subsidiaries to and will use
reasonable efforts to not permit its Joint Enterprises (to the extent consistent with its 

obligations
to other members of such Joint Enterprise) to, create, incur, assume or suffer to exist any Indebtedness other than: 

        (a)   Indebtedness
of the Guarantor set forth on Schedule 5.01 existing on the Effective Date and Indebtedness of the
Guarantor's Subsidiaries or Joint Enterprises of any kind whatsoever existing on the Effective Date; 

        (b)   Permitted
Refinancing Indebtedness; 

        (c)   Permitted
Intercompany Indebtedness or Permitted EME Intercompany Indebtedness; 

        (d)   Indebtedness
consisting of a $100,000,000 cash collateralized letter of credit facility; and 

        (e)   Indebtedness
secured by Liens set forth on Schedule 3.08(a). 

provided
that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the
failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        5.02    Liens.    The Guarantor will not, will not permit its Subsidiaries to and will use reasonable efforts to not
permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, create, incur, assume or suffer to exist any Lien upon any of its property,
revenues or assets, whether now owned or hereafter acquired, except: 

        (a)   any
Lien existing on the property of the Guarantor, the Guarantor's Subsidiaries or Joint Enterprises on the Effective Date. 

        (b)   Liens
for taxes, assessments or other governmental charges or levies not at the time delinquent or thereafter payable without penalty or which are being diligently
contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books; 

        (c)   Liens
(other than Liens securing Indebtedness for borrowed money or Contingent Liabilities relating to borrowed money) incurred in the ordinary course of business for
sums not overdue or which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books,
collectively hereunder, in no event to exceed $5,000,000 in the aggregate at any time outstanding; 

        (d)   Liens
incurred in the ordinary course of business in connection with workmen's compensation, unemployment insurance or other forms of governmental insurance or benefits,
or to secure performance of tenders, statutory obligations, leases and contracts (other than for borrowed money or Contingent Liabilities relating to borrowed money) entered into in the ordinary
course of business or to secure obligations on surety or appeal bonds; 

        (e)   judgment
Liens in existence less than 30 days after the entry thereof or with respect to which execution has been stayed or the payment of which is covered in
full (subject to a customary deductible) by insurance maintained with responsible insurance companies; 

        (f)    Liens
incurred by any Financed Subsidiary in connection with the Permitted Refinancing Indebtedness; and 

        (g)   Liens
securing Indebtedness issued pursuant to Section 5.01(d). 

provided
that (i) in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section
(and the failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor) and (ii) notwithstanding
anything to the contrary in this Section 5.02, no intercompany note or other intercompany obligation payable to the Guarantor will be pledged,
encumbered or otherwise transferred (except as pledged or encumbered under, and pursuant to, the Security Documents). 

        5.03    Investments.    The Guarantor will not, will not permit its Subsidiaries to and will use reasonable efforts to
not permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, make, incur, assume or suffer to exist any Investment in any other
Person, except: 

        (a)   Investments
existing on the Effective Date; 

        (b)   Cash
Equivalent Investments; 

        (c)   without
duplication, Investments permitted as Indebtedness pursuant to Section 5.01; 

        (d)   Investments
in Subsidiaries or Joint Enterprises of the Guarantor in the ordinary course of business; 

        (e)   Investments
permitted pursuant to Section 5.04(b); 

        (f)    Investments
in Subsidiaries or Joint Enterprises of the Guarantor primarily engaged in the power generation, power sales or power transmission business; 

        (g)   Investments
to permit the Guarantor or a Subsidiary of the guarantor to directly or indirectly acquire the Indebtedness of the lessors of the Collins facility or the
related Indebtedness evidenced by promissory notes issued by Midwest Funding LLC; and 

        (h)   Investments
in Affiliates resulting from the issuances of letters of credit under the letter of credit facility pursuant to  Section 5.01(d). 

provided
that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with this Section (and the
failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        5.04    Consolidation, Merger.    The Guarantor will not, will not permit its Subsidiaries to and will use reasonable
efforts to not permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, liquidate or dissolve, consolidate with, or merge into or
with, any other Person, or purchase or otherwise acquire all or substantially all of the assets of any Person except as permitted pursuant to  Section 5.03(g) (or of any division thereof) and
except: 

        (a)   any
such Subsidiary of the Guarantor may liquidate or dissolve voluntarily into, and may merge with and into, any other Subsidiary of the Guarantor, and the assets or
stock of any Subsidiary of the Guarantor may be purchased or otherwise acquired by any other Subsidiary of the Guarantor; 

        (b)   the
Guarantor or any of its Subsidiaries may purchase all or substantially all of the assets of any Person, or acquire such person by merger;  provided, that after giving effect thereto, the surviving
corporation has Debt Ratings of at least BBB- from S&P and Baa3 from Moody's (with
a stable outlook from both rating agencies); and 

        (c)   so
long as no Default or Event of Default has occurred and is continuing or would occur after giving effect thereto, the Guarantor may consolidate with or merge into any
other Person, or convey, transfer or lease its properties and assets substantially as an entirety to any person, or permit any Person to merge into or consolidate with the Guarantor if (i) the
Guarantor is the surviving corporation or the surviving corporation or purchaser or lessee is a corporation incorporated under the laws of the United States of America and assumes the Guarantor's
obligations under this Agreement and (ii) the surviving corporation has Debt Ratings of at least BBB- from S&P and Baa3 from Moody's (with a stable outlook from both rating
agencies). 

        5.05    Asset Dispositions.    The Guarantor will not, will not permit its Subsidiaries to and will use reasonable
efforts to not permit its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, Dispose of, lease, contribute or otherwise convey, or grant 

options,
warrants or other rights with respect to, all or any substantial part of its assets (including accounts receivable and capital stock of Subsidiaries) to any Person, unless: 

        (a)   such
Disposition, lease, contribution, conveyance or grant is to an unaffiliated third party on an arm's-length basis; 

        (b)   at
least 90% of the consideration to be received is paid in cash or Cash Equivalent Investments and such remaining 10% is not a debt instrument of the Guarantor or any
of its Affiliates (provided that for purposes of this provision, (i) any amounts deposited into an escrow or other type of holdback account and any consideration in the form of readily
marketable securities shall be deemed to be cash, (ii) customary purchase price adjustments may be settled on a non-cash basis and (iii) the assumption of Indebtedness
relating to the asset being Disposed shall be disregarded for the purposes of this provision); and 

        (c)   a
mandatory prepayment of the Loan is made in an amount equal to the amount required to be made pursuant to  Section 3.1.2 of the Credit Agreement as a result of the Net After-Tax Cash Proceeds of
such sale; 

provided
that, in the case of each Financed Enterprise, compliance with the Correlative Financing Provisions shall be deemed to be compliance by such Financed Enterprise with clauses (a) and
(b) this Section (and the failure of such Financed Enterprise to so comply with the Correlative Financing Provisions shall be deemed to be a breach of this Section by the Guarantor). 

        5.06    Restricted Payments.    The Guarantor will not make a Restricted Payment so long as a Default or Event of
Default has occurred and is continuing nor will the Guarantor permit any of its Subsidiaries to make a Restricted Payment (other than Restricted Payments to the Guarantor or other Subsidiaries of the
Guarantor (contemporaneously with ratable Restricted Payments to holders of minority interests, if applicable)). 

        5.07    Transactions with Affiliates.    The Guarantor will not enter into, or cause, suffer or permit to exist any
arrangement or contract with any of its Affiliates unless such arrangement or contract (i) is fair and equitable to the Guarantor, (ii) is upon fair and reasonable terms no less
favorable to the Guarantor than it would obtain in a comparable arm's length transaction with a Person which is not an Affiliate and (iii) does not restrict the payment of Restricted Payments
to the Guarantor or any of its
Subsidiaries and its Joint Enterprises; provided, that it is understood that the foregoing is not intended to and shall not apply to (i) the
intercompany Indebtedness owing from MWG to Edison Mission Overseas or from Edison Mission Overseas to EMMH as in existence on the Effective Date or as the same may be modified to take into account or
"mirror" any Permitted Refinancing Indebtedness or (ii) the cash collateralized letter of credit facility contemplated by Section 5.01(d). 

        5.08    Separateness.    The Guarantor will, and will cause its Subsidiaries to and will use reasonable efforts to
cause its Joint Enterprises (to the extent consistent with its obligations to other members of such Joint Enterprise) to, not (other than in connection with the cash collateralized letter of credit
facility contemplated by Section 5.01(d)): 

        (a)   hold
itself out as having agreed to pay or become liable for any Indebtedness of EME; 

        (b)   fail
to correct any known or reasonably knowable misrepresentation with respect to clause (a) of this  Section 5.08; 

        (c)   fail
to correct any known or reasonably knowable misrepresentation with respect to EME holding itself out as having agreed to pay or become liable for any Indebtedness
of the Guarantor; 

        (d)   operate
or purport to operate as an integrated, single economic unit with respect to EME or any other Affiliated or unaffiliated entity; 

        (e)   seek
or obtain credit, incur any obligation or any Indebtedness to any third party based upon the assets of EME; 

        (f)    induce
any such third party to reasonably rely on the creditworthiness of EME or any other Affiliated or unaffiliated entity in connection with any obligation or any
Indebtedness of the Guarantor; and 

        (g)   allow
EME to guarantee any of the obligations of the Guarantor. 

The
foregoing is qualified in its entirety by the following: EME owes MWG approximately $1,365,000 in the aggregate pursuant to promissory notes dated as of August 24, 2000 and EME guarantees
payment of the obligations of MWG under and has certain tax indemnity obligations with respect to the lease relating to its Powerton and Joliet units dated as of August 17, 2000. These
obligations may be modified in connection with Permitted Refinancing Indebtedness and may otherwise be modified from time to time in the manner permitted under the documentation governing such
obligations. In addition, EME guarantees payments due under the lease of the office premises occupied by the Guarantor. 

        5.09    ERISA.    The Guarantor will and will cause its Subsidiaries to, not engage in any prohibited transactions
under Section 406 of ERISA or under Section 4975 of the Code, which would subject the Guarantor to any tax, penalty or other liabilities having a Material Adverse Effect. 

        Section 6.    Miscellaneous.    

        6.01    Notices.    All notices, requests, consents and demands hereunder shall be in writing and telecopied or
delivered to the intended recipient at the "Address for Notices" specified beneath its name on the signature pages hereto or, as to either party, at such other address as shall be designated by such
party in a notice to each other party. Except as otherwise provided in this Agreement, all such communications shall be deemed to have been duly given when transmitted by telecopier or personally
delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid. 

        6.02    No Waiver.    No failure on the part of the Administrative Agent or any Lender to exercise, and no course of
dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Administrative Agent or any
Lender of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not
exclusive of any remedies provided by law. 

        6.03    Amendments, Etc.    The terms of this Agreement may be waived, altered or amended only by an instrument in
writing duly executed by the Guarantor and the Administrative Agent (with the consent of the Lenders as specified in Section 10.1 of the Credit
Agreement). Any such amendment or waiver shall be binding upon the Administrative Agent and each Lender, each holder of any of the Guaranteed Obligations and the Guarantor. 

        6.04    Expenses.    The Guarantor agrees to reimburse each of the Lenders and the Administrative Agent for all
reasonable costs and expenses of the Lenders and the Administrative Agent (including, without limitation, the reasonable fees and expenses of legal counsel) in connection with (a) any Default
and any enforcement or collection proceeding resulting therefrom, including, without limitation, all manner of participation in or other involvement with (i) bankruptcy, insolvency,
receivership, foreclosure, winding up or liquidation proceedings, (ii) judicial or regulatory proceedings and (iii) workout, restructuring or other negotiations or proceedings (whether
or not the workout, restructuring or transaction contemplated thereby is consummated) and (b) the enforcement of this Section 6.04. 

        6.05    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the respective
successors and assigns of the Guarantor, the Administrative Agent, the Lenders and each holder of any of the Guaranteed Obligations (provided, however, that the Guarantor shall not assign or transfer
its rights or obligations hereunder without the prior written consent of the Administrative Agent). 

        6.06    Counterparts.    This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument and either of the parties hereto may execute this Agreement by signing any such counterpart. 

        6.07    Governing Law; Submission to Jurisdiction.    This Agreement shall be governed by, and construed in accordance
with, the law of the State of New York. The Guarantor hereby submits to the non exclusive jurisdiction of the United States District Court for the Southern District of New York and of the Supreme
Court of the State of New York sitting in New York County (including its Appellate Division) and of any other appellate court in the State of New York for the purposes of all legal proceedings arising
out of or relating to this Agreement or the transactions contemplated hereby. The Guarantor hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection that it may now
or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 

        6.08    Waiver of Jury Trial.    EACH OF THE GUARANTOR, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY. 

        6.09    Captions.    The captions and section headings appearing herein are included solely for convenience of
reference and are not intended to affect the interpretation of any provision of this Agreement. 

        IN WITNESS WHEREOF, the parties hereto have caused this Primary Guarantee to be duly executed and delivered as of the day and year first above written. 

	MIDWEST GENERATION EME, LLC	 	 
	

By:	
 	

/s/  MARIA P. LITOS      
 Name: Maria P. Litos

Title: Vice President and Assistant Secretary	
 	

 
	

Address for Notices:	
 	

 
	

 	
 	

 	
 	

 

[Signature Page to Midwest Generation EME LLC Primary Guarantee]  

	CITICORP NORTH AMERICA, INC,

as Administrative Agent	 	 
	

By:	
 	

/s/  DALE R. GONCHER      
 Name: Dale R. Goncher

Title: Vice President	
 	

 

[Signature Page to Midwest Generation EME LLC Primary Guarantee]  

ANNEX A  

        "Administrative Agent" means Citicorp North America, Inc., in its capacity as administrative agent for the Lenders hereunder, and
includes each other Person as may have subsequently been appointed as the successor Administrative Agent pursuant to Section 9.4 of the Credit
Agreement. 

        "Affiliate" of any Person means 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 contract or otherwise. 

        "Agreement" means, on any date, this Guarantee as originally in effect on the Effective Date and as thereafter from time to time amended,
supplemented, amended and restated or otherwise modified and in effect on such date. 

        "Board of Directors" means, (a) with respect to a corporation, the board of directors of the corporation, (b) with respect
to a partnership, the general partners or the management committee of the partnership or (c) with respect to any other Person, the board or committee of such Person serving a similar function. 

        "Borrower" means Mission Energy Holdings International, Inc., a Delaware corporation. 

        "BV Holdings Guarantees" mean this Agreement and the other "Guarantees", in effect from time to time, as such meaning is set forth in the
Credit Agreement. 

        "BV Holdings Guarantors" means the Guarantor hereunder and the other "Guarantors", as such meaning is set forth in the Credit Agreement. 

        "Capitalized Lease Liabilities" of any Person means all monetary obligations of such Person under any leasing or similar arrangement
which, in accordance with GAAP, would be classified as capitalized leases, and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in
accordance with GAAP. 

        "Cash Equivalent Investment" means, at any time: 

        (a)   any
evidence of Indebtedness, maturing not more than one year after such time, issued or guaranteed by the United States government or an agency thereof; or 

        (b)   other
investments in securities or bank instruments rated at least "A" by S&P and "A2" by Moody's or "A-1" by S&P and "P-1" by Moody's and with
maturities of less than 180 days. 

        "CERCLIS" means the Comprehensive Environmental Response Compensation Liability Information System List. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Collins Holdings" means Collings Holdings EME LLC, a Delaware limited liability company. 

        "Contingent Liability" means any agreement, undertaking or arrangement by which any Person guarantees, endorses or otherwise becomes or is
contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the indebtedness, obligation or any other liability of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of
dividends or other distributions upon the shares of any other Person. The amount of any Person's obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed
to be the outstanding principal amount of the debt, obligation or other liability guaranteed thereby; provided,  however, that if the maximum amount of the
debt, obligation or other liability guaranteed thereby has not been established, the amount of such
Contingent Liability shall be the maximum reasonably anticipated amount of the debt, obligation or 

 

other
liability; provided, further, however, that any
agreement to limit the maximum amount of such Person's obligation under such Contingent Liability shall not, of and by itself, be deemed to establish the maximum reasonably anticipated amount of such
debt, obligation or other liability. 

        "Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound. 

        "Contractual Restrictions" mean Contractual Obligations of the Guarantor or any of its Subsidiaries limiting or restricting any of the
following activities of the Guarantor or any of its Subsidiaries: (a) Restricted Payments, (b) the repayment or prepayment of intercompany notes or other intercompany obligations or
reimbursements of management and other intercompany charges, expenses or accruals or other returns on investment, (c) Disposition (as defined in the Credit Agreement), (d) Debt
Incurrence (as defined in the Credit Agreement), (e) Equity Issuance (as defined in the Credit Agreement) or (f) activities related to the foregoing. 

        "Controlled Group" means all members of a controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with the Guarantor, are treated as a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of
ERISA. 

        "Correlative Financing Provisions" means (i) with respect to each Financed Enterprise with respect to any provision in  Section 5, the most restrictive
correlative provision or provisions in the Effective Date Financing Documentation or in the documentation
governing any Permitted Refinancing Indebtedness refinancing or replacing such Effective Date Financing Documentation and (ii) with respect to each Financed Enterprise with respect to any other
provision (other than any provision in Section 5) in this Guarantee, the most restrictive correlative provision or provisions in the Effective
Date Financing Documentation or in the documentation governing any Permitted Refinancing Indebtedness refinancing or replacing such Effective Date Financing Documentation, as the same may from time to
time be amended, supplemented, amended and restated or otherwise modified and in effect on such date. 

        "Credit Agreement" means the Credit Agreement dated as of December 11, 2003 among the Borrower, the Lenders and the Administrative
Agent. 

        "Debt Rating" means, with respect to any Person, a rating of such Person's long-term debt which is not secured or supported by
a guarantee, letter of credit or other form of credit enhancement. If Moody's or S&P shall have changed its system of classifications after the date hereof, a Debt Rating shall be considered to be at
or above a specified level if it is at or above the new rating which most closely corresponds to the specified level under the old rating system. 

        "Default" has the meaning set forth in the Credit Agreement. 

        "Disposition" means any sale, assignment, transfer or other disposition of any property (whether now owned or hereafter acquired) by the
Guarantor or any of its Subsidiaries or any of its Joint Enterprises to any other Person. The verb "Dispose" shall have a correlative meaning. 

        Notwithstanding
the preceding, the following items shall not be deemed to be Dispositions: 

        (a)   any
assignment of property for security purposes to the extent not prohibited by this Agreement or, in the case of any Financed Enterprise, any Correlative Financing
Provisions; 

        (b)   any
sale, assignment, transfer or other disposition of any property sold or disposed of in the ordinary course of business and on ordinary business terms; 

        (c)   any
single transaction or series or related transactions that involves assets having a fair market value of less than $15,000,000; 

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        (d)   the
sale or other disposition of cash or Cash Equivalent Investments; 

        (e)   the
incurrence of Liens permitted pursuant to Section 5.02 and the disposition of assets related thereto by the
secured party pursuant to a foreclosure;

        (f)    a
Restricted Payment that is permitted pursuant to Section 5.06 or an Investment that is permitted pursuant to  Section 5.03; 

        (g)   any
sale or lease of obsolete equipment or other assets that are no longer being used by the Borrower or any of its Subsidiaries; and 

        (h)   a
disposition resulting from the exercise by a governmental authority of its claimed or actual power of eminent domain, in each case without compensation. 

        "Dollar" and the sign "$" mean lawful money of the United States. 

        "Edison International" means Edison International, a California corporation. 

        "Edison Mission Overseas" means Edison Mission Overseas Co., a Delaware corporation.

        "Effective Date" means the date the Credit Agreement becomes effective pursuant to  Section 5.1 of the Credit Agreement. 

        "Effective Date Financing Documentation" means, with respect to each Financed Enterprise, documentation governing each Financing of such
Financed Enterprise as in effect on the Effective Date, copies of which have heretofore been furnished to the Administrative Agent. 

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

        "EMMH" means Edison Mission Midwest Holdings Co., a Delaware corporation. 

        "Environmental Laws" means all applicable federal, state or local statutes, laws, ordinances, codes, rules, regulations and guidelines
(including consent decrees and administrative orders) relating to Hazardous Materials and/or to public health and protection of the environment, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, and the Resource Conservation and Recovery Act, as amended. 

        "ERISA" means 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 Default" has the meaning set forth in Section 8.1 of the Credit
Agreement. 

        "Excess Funding Guarantor" has the meaning set forth in Section 2.10. 

        "Excess Payment" has the meaning set forth in Section 2.10. 

        "Financed Subsidiary" means as of the Effective Date, MWG, EMMH, Collins Holdings and Edison Mission Overseas. 

        "Financed Enterprise" means, individually, each Financed Subsidiary and each Joint Enterprise. 

        "Financing" means, with respect to any Person, either Indebtedness of such Person or Lease Obligations of such Person, or a combination of
both. 

        "GAAP" means generally accepted accounting principles in effect in the United States. 

        "Governmental Approval" has the meaning set forth in Section 3.3. 

        "Guarantor" has the meaning set forth in the recitals of this Agreement. 

        "Guaranteed Obligations" has the meaning set forth is Section 2.09. 

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        "Hazardous Material" means: 

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

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

        (c)   any
petroleum product; or 

        (d)   any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material or substance within the meaning of any Environmental Law. 

        "herein", "hereof", "hereto",
"hereunder" and similar terms contained in this Agreement refer to this Agreement as a whole and not to any particular Section, paragraph or provision
of this Agreement. 

        "including" means including without limiting the generality of any description preceding such term, and, for purposes of this Agreement,
the parties thereto agree that the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed by or referable to an
enumeration of specific matters, to matters similar to the matters specifically mentioned. 

        "Indebtedness" of any Person means, without duplication: 

        (a)   all
indebtedness for borrowed money; 

        (b)   all
obligations issued, undertaken or assumed as the deferred purchase price of property or services which purchase price is due more than six months from the date of
incurrence of the obligation in respect thereof or is evidenced by a note or other instrument, except trade accounts arising in the ordinary course of business; 

        (c)   all
reimbursement obligations with respect to surety bonds, letters of credit (to the extent not collateralized with cash or Cash Equivalent Investments), bankers'
acceptances and similar instruments (in each case, whether or not matured); 

        (d)   all
obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property,
assets or businesses; 

        (e)   all
indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to property
acquired by the Person (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property); 

        (f)    all
Capitalized Lease Liabilities; 

        (g)   all
net obligations with respect to sales of foreign exchange options; 

        (h)   all
indebtedness referred to in clauses (a) through (g) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property (including accounts and contracts rights) owned by such Person, even though such Person has not assumed or become liable for the payment of
such Indebtedness; and 

        (i)    all
Contingent Liabilities. 

For
all purposes of this Agreement, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which such Person is a general partner or a joint venturer. 

        "Investment" means, relative to any Person: 

        (a)   any
loan or advance made by such Person to any other Person (excluding commission, travel and similar advances to officers and employees made in the ordinary course of
business); 

        (b)   any
Contingent Liability of such Person; and 

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        (c)   any
ownership or similar interest held by such Person in any other Person. 

        The
amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon (and without adjustment by reason of the financial
condition of such other Person) and shall, if made by the transfer or exchange of property other than cash, be deemed to have been made in an original principal or capital amount equal to the fair
market value of such property. 

        "Joint Enterprise" means a general partnership, limited partnership, joint venture or similar entity in which the Guarantor or a
Subsidiary is a partner, joint venturer or equity participant. The term "Joint Enterprise" shall exclude, to the extent included, partnerships or other business entities included in the definition of
"Subsidiary". 

        "Lease Obligations" means rent, supplemental rent, termination value, or a similar monetary obligation under, or pursuant to, a lease or
related documents in connection with a leveraged lease transaction (including Contingent Liabilities related thereto). 

        "Lenders" has the meaning set forth in the Credit Agreement. 

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

        "Loan" has the meaning set forth in Section 2.1 of the Credit Agreement. 

        "Loan Documents" has the meaning set forth in the Credit Agreement. 

        "Material Adverse Effect" means any event, development or circumstance that has had or would reasonably be expected to have a material
adverse effect on (a) the business, assets, property, condition (financial or otherwise) or operations of the Guarantor and its Subsidiaries, taken as a whole since the Effective Date, or
(b) the ability of the Guarantor to perform its obligations under this Agreement. 

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

        "MWG" means Midwest Generation LLC, a Delaware limited liability company. 

        "Net After-Tax Cash Proceeds" has the meaning set forth in the Credit Agreement. 

        "Operating Subsidiary" means any Subsidiary whose activities include significant commercial activities, other than holding the equity or
debt of another Person. 

        "Organic Document" means, 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; and, with respect to any Person that is a limited liability company, its
certificate of formation and its limited liability agreement, in each case, as from time to time amended, supplemented, amended and restated, or otherwise modified and in effect from time to time. 

        "Pension Plan" means a "pension plan", as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
(other than a multiemployer plan as defined in Section 4001(a)(3) of ERISA), and to which the Borrower or any corporation, trade or business that is, along with the Guarantor, a member of a
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 Section 4069 of ERISA. 

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        "Permitted Contractual Restrictions" means (a) Contractual Restrictions in effect on the Effective Date (including Contractual
Restrictions contained in charter documents of any Person on the Effective Date) and (b) Contractual Restrictions in effect after the Effective Date arising out of Permitted Refinancing
Indebtedness incurred by the Borrower and its Subsidiaries (so long as such Contractual Restrictions relate solely to the borrower and its subsidiaries (or any of the Guarantor or its Subsidiaries
that are guarantors, pledgors or other collateral providers in connection such Permitted Refinancing Indebtedness and their respective Subsidiaries)). 

        "Permitted EME Intercompany Indebtedness" means intercompany Indebtedness of the Guarantor and/or Subsidiaries of the Guarantor issued or
incurred to EME directly arising out of or in connection with (a) intercompany Indebtedness for working capital, (b) Indebtedness in connection with hedging obligations of Guarantor
and/or its Subsidiaries in connection with their operations and (c) Indebtedness incurred in connection with letters of credit obtained in the support of trading activities of the Guarantor
and/or it Subsidiaries. 

        "Permitted Intercompany Indebtedness" means intercompany indebtedness between the Guarantor and Subsidiaries of the Guarantor or between
Subsidiaries of the Guarantor directly arising out of or in connection with (a) Restricted Payments intended ultimately to be received by the Guarantor, (b) intercompany indebtedness for
working capital, (c) Indebtedness incurred in the ordinary course of business, (d) additional Indebtedness incurred after the Effective Date consisting of: (i) intercompany loans
evidenced by intercompany notes between the Guarantor and its Subsidiaries; (ii) hedging obligations of Guarantor and/or its Subsidiaries in connection with their operations; and
(iii) letters of credit obtained in the support of trading activities of the Guarantor and/or it Subsidiaries and (e) Investments by the Guarantor or the Subsidiaries of the Guarantor in
Subsidiaries of the Guarantor;  provided, that no Material Adverse Effect would reasonably be expected to occur as a result of the incurrence of such intercompany Indebtedness. 

        "Permitted Refinancing Indebtedness" means, with respect to any Person, any refinancing of a Financing of such Person (or a related
Financed Enterprise as set forth in the proviso below) issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund (collectively,
"refinance") other Financings of such Person (or a related Financed Enterprise as set forth in the proviso below);  provided, that (a) the principal
amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the
aggregate principal amount (or accreted value or termination value, if applicable) of the Financing being refinanced (plus all accrued interest thereon and the amount of all expenses and premiums in
connection therewith) unless a corresponding payment is made in accordance with Section 3.1.2(a)(viii) of the Credit Agreement, (b) the
maturity date of the Permitted Refinancing Indebtedness is no earlier than the maturity date of the Financing being refinanced and such Permitted Refinancing Indebtedness has a weighted average life
to maturity equal to or greater than the weighted average life to maturity of the Financing being refinanced, provided, that for purposes of this provision and clause (d) below, the maturity of
the Lease Obligations related to the Collins facility shall be deemed to be December 8, 2004, (c) subject to clause (d) below, any Contractual Restrictions incurred in connection
with such Permitted Refinancing Indebtedness are (as determined in good faith by the Borrower's Board of Directors, the determination of which shall be evidenced by a resolution of such Board of
Directors) no more restrictive on such Person or its Subsidiaries or Affiliates than the Financing being refinanced taken as a whole and (d) with respect to any refinancings within
12 months of the maturity date of such Financing, such Permitted Refinancing Indebtedness may contain Contractual Restrictions that are in the written opinion of the Borrower's chief executive
officer or chief financial officer required by the lenders in order to obtain such refinancings, are customary for such refinancings and apply only to the assets of or revenues of the Person which is
the subject of the refinancing, provided that for purposes of this provision, the maturity of the Lease Obligations related to the Collins facility shall be deemed to be December 8, 2004;
provided that, a Financing of one Financed Enterprise may be refinanced by 

A-6

 

another
Financed Enterprise or who shall be deemed to be a Financed Enterprise for purposes of this definition. 

        "Person" means any natural person, corporation, partnership, limited liability company, firm, association, trust, government, governmental
agency or any other entity, whether acting in an individual, fiduciary or other capacity. 

        "Pro Rata Share" has the meaning set forth in Section 2.10. 

        "Relevant Public Filings" means public filings of EME and Midwest Generation LLC with the Securities and Exchange Commission prior to the
Effective Date 

        "Restricted Payment" means any dividend on, or any payment on account of, or setting apart assets for a sinking or other analogous fund
for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares of any class of capital stock of or other ownership interest or any warrants or options to purchase any such
stock or ownership interest, whether now or hereafter outstanding, or making of any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations
of the Person making such dividend or payment. 

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

        "Security Documents" has the meaning set forth in the Credit Agreement. 

        "Subsidiary" means, with respect to any Person: (a) any corporation, association or other business entity of which more than 50% of
the outstanding capital stock having ordinary voting power to elect a majority of the directors, managers or trustees 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) 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; and (b) any partnership (i) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (ii) the only general partners of which are such Person or one or more Subsidiaries of such Person (or any combination thereof). 

        "United States" or "U.S." means the United States of America, its fifty States and the
District of Columbia. 

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

A-7

   SCHEDULE 3.08(a)  

	1.
	UCC-1
dated October 19, 2001, in favor of First Access covering One Toyota 7FGU30, S/N 62257, 159 FSV, Gas Powered, Dual Hosting Smart Alarm, Side Shifter 48 inch
Forrs.

	2.
	UCC-1
dated March 10, 03 in favor of First Access covering one Toyota 6FGU30 S/N 60749, 171 TSU

	3.
	UCC-1
dated April 8, 2003 in favor of First Access covering used Toyota Forklift Model 02-6FGU30 S/N: 60749

	4.
	UCC-1
dated April 9, 2003 in favor of Comark Capital Leasing Services covering office equipment, now or hereafter leased to and/or financed for debtor/lessee by
secured party/lessor, and including all replacements, upgrades and substitutions hereafter occurring to all of the foregoing equipment and all now existing and future attachments, parts, accessories
and add-ons for all of the foregoing items and types of equipment, and all proceeds and products thereof. 

A-8

  

	Midwest Generation EME LLC

Indebtedness

At November 30, 2003	 	Schedule 5.01 to the Guarantee

	 
	 	Principal
	 	Interest
	 	Total

	 
	 	(Rounded to nearest thousand)
 

	Due to Shareholders:	 	 	 	 	 	 	 	 	 
	 	Interco Loan-Edison Mission Energy	 	$	48,640,000	 	$	2,420,330	 	$	51,060,330
	 	 	
	 	
	 	

	Total Intercompany Loans	 	$	48,640,000	 	$	2,420,330	 	$	51,060,330
	 	 	
	 	
	 	

A-9

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