Document:

Terms and conditions for 2008 long-term compensation awards

 Exhibit 10.2 
 EDISON INTERNATIONAL 
 2008 Long-Term Incentives 
 Terms and Conditions 
  

	1.	LONG-TERM INCENTIVES 

 The long-term incentive
awards granted in 2008 (“LTI”) for eligible persons (each, a “Holder”) employed by Edison International (“EIX”) or its participating affiliates (the “Companies”, or individually,
the “Company”) include the following: 
  

	 	•	 	 Nonqualified stock options to purchase shares of EIX Common Stock (“EIX Options”) as described in Section 3; 

  

	 	•	 	 Contingent EIX performance units (“Performance Shares”) as described in Section 4; and 

  

	 	•	 	 With respect to certain eligible persons, restricted EIX stock units (“Restricted Stock Units”) as described in Section 5.

 Each of the LTI awards will be granted under the 2007 Performance Incentive Plan (the “Plan”) and will
be subject to adjustment as provided in Section 7.1 of the Plan. 
 The LTI shall be subject to these 2008 Long-Term Incentives Terms and
Conditions (these “Terms”). The LTI shall be administered by the Compensation and Executive Personnel Committee of the EIX Board of Directors (the “Committee”). The Committee shall have the administrative powers
with respect to the LTI set forth in Section 3.2 of the Plan. 
 In the event EIX grants LTI to a Holder, the number of EIX Options,
Performance Shares and Restricted Stock Units (if any) granted to the Holder will be set forth in a written award certificate delivered by EIX to the Holder. 
  

	2.	VESTING OF LTI 

 Subject to Sections 8 and 9 the
following vesting rules shall apply to the LTI: 
  

	 	2.1	EIX Options. The EIX Options will vest over a four-year period as described in this Section 2 (the “Vesting Period”). The effective
“initial vesting date” will be January 2 of the year following the date of the grant, or six months after the date of the grant, whichever date is later. The EIX Options will vest as follows: 

  

	 	•	 	 On the initial vesting date, one-fourth of the award will vest. 

  

	 	•	 	 On January 2, 2010, an additional one-fourth of the award will vest. 

  

	 	•	 	 On January 2, 2011, an additional one-fourth of the award will vest. 

  

	 	•	 	 On January 2, 2012, the balance of the award will vest. 

  

	 	2.2	Performance Shares. The Performance Shares will vest and become payable to the extent earned as determined at the end of the three-calendar-year period
commencing on January 1, 2008, and ending December 31, 2010 (the “Performance Period”), subject to the provisions of Section 4. 

  

	 	2.3	Restricted Stock Units. The Restricted Stock Units will vest and become payable on January 2, 2011. 

 

	 	2.4	Continuance of Employment/Service Required. The vesting schedule requires continued employment or service through each applicable
vesting date as a condition to the vesting of the applicable installment of the LTI and the rights and benefits thereunder. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Holder to
any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of employment or services except as provided in Section 8 below. 

  

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	3.	EIX OPTIONS 

  

	 	3.1	Exercise Price. The exercise price of an EIX Option stated in the award certificate is the closing price (in regular trading) of a
share of EIX Common Stock on the New York Stock Exchange for the effective date of the award. 

  

	 	3.2	Cumulative Exercisability; Term of Option. The vested portions of the EIX Options will accumulate to the extent not exercised, and
be exercisable by the Holder subject to the provisions of this Section 3 and Sections 8 and 9, in whole or in part, in any subsequent period but not later than January 2, 2018. 

  

	 	3.3	Method of Exercise. The Holder may exercise an EIX Option by providing written notice to EIX on the form prescribed by the Committee for this purpose, or
completion of such other EIX Option exercise procedures as EIX may prescribe, accompanied by full payment of the applicable exercise price. Payment must be in cash or its equivalent acceptable to EIX. At the discretion of the Holder, EIX Common
Stock valued on the exercise date at a per-share price equal to the closing price of EIX Common Stock on the New York Stock Exchange may be used to pay the exercise price, provided the Company can comply with any legal requirements. A
broker-assisted “cashless” exercise may be accommodated for EIX Options at the discretion of EIX. Until payment is accepted, the Holder will have no rights in the optioned stock. The provisions of Section 11 must be satisfied as a
condition precedent to the effectiveness of any purported exercise. 

  

	4.	PERFORMANCE SHARES 

  

	 	 4.1
	 Performance Shares. Performance Shares are EIX Common Stock-based units subject to a performance
measure based on the percentile ranking of EIX total shareholder return (“TSR”) among the TSRs for the stocks comprising the Comparison Group (as defined below) over the entire Performance Period. TSR is calculated using
(i) the average closing stock price for the relevant stock for the 20-trading-day period ending with the last day on which the New York Stock Exchange is open for trading preceding the first day of the Performance Period, and (ii) the
average closing stock price for the relevant stock for the 20-trading-day period ending with the measurement date. A target number of contingent Performance Shares will be awarded on the initial grant date. The target number of contingent
Performance Shares will be increased by any additional Performance Shares created by “reinvestment” of dividend equivalents as provided in Section 4.4. The actual amount of Performance Shares to be paid will depend on EIX’s TSR
percentile ranking on the measurement date. If EIX’s TSR is below the 40th percentile, no Performance Shares will be paid. Twenty-five percent
(25%) of the target number of Performance Shares will be paid if EIX’s TSR percentile ranking is at the 40th percentile. The target number
of Performance Shares will be paid if EIX’s TSR rank is at the 50th percentile. Two times the target number of Performance Shares will be paid
if EIX’s TSR percentile ranking is at the 75th percentile or higher. The payment multiple is interpolated for performance between the points indicated in the preceding three sentences on a straight-line basis. 

 The “Comparison Group” consists of the stocks comprising the Philadelphia Utility Index as the index is constituted on the measurement
date, but deleting AES Corporation and adding Sempra Energy (provided the stock is publicly traded on the measurement date), and adjusted as described below if there are less than 20 companies in such index as so adjusted on the measurement date. If
the Comparison Group consists of less than 20 stocks on the measurement date, the stock with the median TSR for the entire Performance Period (or, if there are an even number of stocks in the Comparison Group before giving effect to this sentence, a
stock deemed to have a TSR equal to the average TSR of the two stocks in the Comparison Group that fall in the middle of such group when ranked based on TSR for the entire Performance Period) shall be added back to the Comparison Group a sufficient
number of times to bring the stocks comprising the Comparison Group to 20. (For purposes of clarity, if there are only 17 stocks in the Comparison Group before giving effect to the preceding sentence, the stock with the median TSR for the entire
Performance Period will be added back to the Comparison Group a total of three times to bring the stocks comprising the Comparison Group to 20.) 
  

	 	4.2	 Measurement Date. The performance measurement date will be the last day of the Performance Period on which the New
York Stock Exchange is open for trading. As of that date, the applicable payment multiple will be determined as provided in Section 4.1 above based on the EIX TSR percentile ranking achieved 

  

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during the Performance Period. No payment will be made with respect to the Performance Shares unless and until the Committee has certified, by resolution or
other appropriate action in writing, that the applicable EIX TSR percentile ranking has been accurately determined. The Committee shall not have discretion to pay Performance Shares if the minimum EIX TSR ranking is not achieved or to pay
Performance Shares in excess of the amount provided in Section 4.1 for the applicable EIX TSR ranking. 

  

	 	4.3	Payment of Performance Shares. Fifty percent of the Performance Shares that are earned pursuant to Section 4.1 (plus any
fractional shares) will be paid in cash. The remainder of the Performance Shares earned will be paid on a one-for-one basis in EIX Common Stock under the Plan. The value of each Performance Share paid in cash will be equal to the closing price per
share of EIX Common Stock on the New York Stock Exchange for the measurement date. The cash and stock payable for the earned Performance Shares will be delivered within 30 days following the end of the Performance Period. The Performance Shares are
subject to termination and other conditions specified in Sections 8 and 9, and to the provisions of Section 11. 

  

	 	4.4	Dividend Equivalent Reinvestment. For each dividend on EIX Common Stock for which the ex-dividend date falls within the Performance
Period, the Holder of Performance Shares will be credited with an additional number of target Performance Shares. The additional number of shares added on each ex-dividend date will be equal to (i) the per-share cash dividend paid by EIX on its
Common Stock with respect to the related ex-dividend date, multiplied by (ii) the Holder’s number of target Performance Shares (including any additional target Performance Shares previously credited under this Section 4.4), divided by
(iii) the closing price of a share of EIX Common Stock on the related ex-dividend date, with the result rounded to four decimal places. Any target Performance Shares added pursuant to the foregoing provisions of this Section 4.4 will be
subject to the same vesting, payment, termination and other terms, conditions and restrictions as the original target Performance Shares to which they relate (including application of the TSR payment multiple as contemplated by Section 4.1). No
target Performance Shares will be added pursuant to this Section 4.4 with respect to any target Performance Shares which, as of the related ex-dividend date, have either become payable pursuant to Section 4.3 or terminated pursuant to
Section 8. 

  

	5.	RESTRICTED STOCK UNITS 

  

	 	5.1	Restricted Stock Units. Restricted Stock Units are EIX Common Stock-based units that vest based on the passage of time. As soon as
administratively practical following January 2, 2011 (and in all events within 30 days after such date), EIX will deliver to the Holder a number of shares of EIX Common Stock equal to the number of Restricted Stock Units that have vested,
except that if the Restricted Stock Units vest pursuant to Section 8.3, 8.4, 8.5 or 9, the Restricted Stock Units will become payable as provided in the applicable section below. The Restricted Stock Units are subject to termination and other
conditions specified in Sections 8 and 9, and to the provisions of Section 11. 

  

	 	5.2	Dividend Equivalent Reinvestment. For each dividend declared on EIX Common Stock with an ex-dividend date on or after the date an
award of Restricted Stock Units is granted and before all of such Restricted Stock Units either have become payable pursuant to Section 5.1 or have terminated pursuant to Section 8, the Holder of such award will be credited with an
additional number of Restricted Stock Units equal to (i) the per-share cash dividend paid by EIX on its Common Stock with respect to the related ex-dividend date, multiplied by (ii) the total number of outstanding and unpaid Restricted
Stock Units (including any Restricted Stock Units previously credited under this Section 5.2) subject to such award as of such ex-dividend date, divided by (iii) the closing price of a share of EIX Common Stock on the related ex-dividend
date, with the result rounded to four decimal places. Any additional Restricted Stock Units credited pursuant to the foregoing provisions of this Section 5.2 will be subject to the same vesting, payment, termination and other terms, conditions
and restrictions as the original Restricted Stock Units to which they relate; provided, however, that the Committee shall retain discretion to pay any Restricted Stock Units in cash rather than shares of EIX Common Stock if and to the extent that
payment in shares would exceed the applicable share limits of the Plan, with any fractional shares to be paid in cash. No crediting of Restricted Stock Units will be made pursuant to this Section 5.2 with respect to any Restricted Stock Units
which, as of the related ex-dividend date, have either been paid pursuant to Section 5.1 or terminated pursuant to Section 8. 

  

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	6.	DELAYED PAYMENT OR DELIVERY OF LTI GAINS 

 Notwithstanding any other provision herein, Holders who are eligible to defer salary under the EIX Executive Deferred Compensation Plan (the “EDCP”) may irrevocably elect to defer receipt of all or a part of the cash
payable in respect of the portion of earned Performance Shares that are payable in cash pursuant to the terms of the EDCP. To make such an election, the Holder must submit a signed agreement in the form approved by, and in advance of the applicable
deadline established by, the Committee. In the event of any timely deferral election, the LTI with respect to which the deferral election was made shall be paid in accordance with the terms of the EDCP. 
  

	7.	TRANSFER AND BENEFICIARY 

  

	 	7.1	Limitations on Transfers. Except as provided below and in Section 11, the LTI will not be transferable by the Holder and, during the lifetime of the
Holder, the LTI will be exercisable only by him or her. The Holder may designate a beneficiary who, upon the death of the Holder, will be entitled to exercise the then vested portion of the LTI during the remaining term subject to the provisions of
the Plan and these Terms. 

  

	 	7.2	Exceptions. Notwithstanding the foregoing, the LTI of the CEOs of EIX, Edison Mission Group, and Southern California Edison Company,
and the EVPs of EIX, are transferable to a spouse, children or grandchildren, or trusts or other vehicles established exclusively for their benefit. Any transfer request must specifically be authorized by EIX in writing and shall be subject to any
conditions, restrictions or requirements as the Committee may determine. 

  

	8.	TERMINATION OF EMPLOYMENT 

  

	 	8.1	General. In the event of termination of the employment of the Holder for any reason other than those specified in Sections 8.2, 8.3
or 8.4, the LTI will terminate as follows: (i) the Holder’s unvested EIX Options will terminate for no value on the date such employment terminates, (ii) the Holder’s vested EIX Options will terminate for no value 180 days from
the date on which such employment terminated (or, if earlier, on the last day of the applicable EIX Option term) to the extent not theretofore exercised, (iii) the Holder’s unearned Performance Shares will terminate for no value, and
(iv) the Holder’s unvested Restricted Stock Units will terminate for no value. Any fractional vested EIX Options will be rounded up to the next whole share. 

  

	 	8.2	Retirement. If the Holder terminates employment on or after the first day of the month in which he or she (i) attains age 65 or (ii) attains age
61 with five “years of service,” as that term is defined in the Edison 401(k) Savings Plan (a “Retirement”), then the vesting and exercise or payment provisions of this Section 8.2 will apply.

  

	 	(A)	 EIX Options. The EIX Options will vest; provided, however, that in the event the Holder’s Retirement occurs within the calendar year in which the
applicable EIX Option is granted, the portion of the option that vests upon the Holder’s Retirement will be prorated by multiplying the total number of shares subject to the option by a fraction, the numerator of which shall be the number of
whole months in the calendar year of grant that the Holder was employed by one or more of the Companies, and the denominator of which shall be twelve (12). In no event shall the Holder be credited with services performed during any portion of a
calendar month (even if a substantial portion) if the Holder is not employed by one of the Companies as of the last day of such calendar month. The portion of the option not eligible to vest following the Holder’s Retirement after giving effect
to the proration described in the preceding two sentences shall terminate upon the Holder’s Retirement, and the Holder shall have no further rights with respect to such terminated portion. Any fractional EIX Options vested under this
Section 8.2 will be rounded up to the next whole number. Although vested upon Retirement, the options will become exercisable on the schedule under which they would have been vested had the Holder not retired (one-fourth of the option grant on
the effective initial vesting date (January 2, 2009 or six months after the date of grant, whichever is later) and an additional one-fourth on January 2, 2010, 2011 and 2012), except that if the Holder dies, the then-outstanding portion of the
option will be immediately exercisable as of the date of the Holder’s death. In the event prorated vesting is required in connection with the Holder’s Retirement, the portion of the option that does vest will become exercisable first on
the effective initial vesting date (up to the maximum number of shares that would have become exercisable on that date had no termination of employment occurred) and so 

  

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on until the vested portion of the option becomes exercisable, except that if the Holder dies, the then-outstanding portion of the option will be immediately
exercisable as of the date of the Holder’s death. Once exercisable, EIX Options will remain exercisable as provided in Section 3 for the remainder of the original EIX Option term. 

  

	 	(B)	Performance Shares. The Performance Shares will vest and become payable at the end of the Performance Period to the extent they would have vested and become payable if the
Holder’s employment had continued through the last day of the Performance Period; provided, however, that if the Holder’s Retirement occurs within the calendar year in which the applicable Performance Shares are granted, the portion of the
Performance Shares that will vest and become payable will equal (i) the portion that would have vested and become payable if the Holder’s employment had continued through the last day of the Performance Period, multiplied by (ii) a
fraction, the numerator of which shall be the number of whole months in the calendar year of grant that the Holder was employed by one or more of the Companies, and the denominator of which shall be twelve (12), with the result rounded to four
decimal places. For this purpose, the number of “whole calendar months” shall be calculated as provided in Section 8.2(A) above. Performance Shares will be payable to the Holder on the payment date specified in Section 4.3 to the
extent of the EIX TSR ranking achieved as specified in Section 4.1. Any fractional Performance Shares vested under this Section 8.2 will be paid in cash. Any unvested Performance Shares (after application of the foregoing vesting
provisions) will terminate for no value. 

  

	 	(C)	Restricted Stock Units. The Restricted Stock Units will vest upon the Holder’s Retirement and will be payable on or as soon as practicable following January 2, 2011
(and in all events within 30 days after such date); provided, however, that in the event the Holder’s termination of employment occurs within one year following the date the applicable Restricted Stock Unit award is granted, the number of
Restricted Stock Units that vests upon the Holder’s Retirement will be prorated by multiplying the total number of Restricted Stock Units subject to the award by a fraction, the numerator of which shall be the number of whole months in the
calendar year of grant that the Holder was employed by one or more of the Companies, and the denominator of which shall be twelve (12), with the result rounded to four decimal places. In no event shall the Holder be credited with services performed
during any portion of a calendar month (even if a substantial portion) if the Holder is not employed by one of the Companies as of the last day of such calendar month. Any fractional Restricted Stock Units vested under this Section 8.2 will be
paid in cash. Any unvested Restricted Stock Units (after application of the foregoing vesting provisions) will terminate for no value. Notwithstanding the foregoing provisions, if the Holder dies after Retirement and prior to the date the vested
Restricted Stock Units are paid, the vested Restricted Stock Units will be paid within 30 days following the date of the Holder’s death. 

  

	 	8.3	Death or Disability. If, prior to the Holder’s termination of employment with a Company, the Holder dies or incurs a “disability” (as such
term is defined for purposes of Section 409A of the Code), the provisions of this Section 8.3 will apply. 

  

	 	(A)	EIX Options. Any unvested EIX Options will immediately vest. The EIX Options will be exercisable immediately as of the date of such termination and will remain exercisable as
provided in Section 3 for the remainder of the original EIX Option term. 

  

	 	(B)	Performance Shares. The Performance Shares will vest and become payable at the end of the Performance Period as provided in Section 4.3 to the extent they would have
vested and become payable if the Holder’s employment had continued through the last day of the Performance Period. 

  

	 	(C)	Restricted Stock Units. Any unvested Restricted Stock Units will immediately vest and become payable as soon as practicable (and in all events within 30 days) after the date
of termination of the Holder’s death or disability, as applicable. 

  

	 	8.4	Involuntary Termination Not for Cause. Upon involuntary termination of the Holder’s employment by his or her employer not for
cause (and other than due to the Holder’s death or disability), the provisions of this Section 8.4 shall apply. 

  

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	 	(A)	EIX Options. Unvested EIX Options will vest to the extent necessary to cause the aggregate number of shares subject to vested EIX Options (including any shares acquired
pursuant to previously exercised EIX Options) to equal the number of shares granted multiplied by a fraction (not greater than 1), the numerator of which is the number of weekdays in the period from January 1 of the year of grant of the award
through the one-year anniversary of the Holder’s last day of employment prior to termination of the Holder’s employment, and the denominator of which is the number of weekdays in the four calendar years 2008-2011. The Holder will have one
year following the date of termination in which to exercise the EIX Options, or until the end of the EIX Option term, whichever occurs earlier, except that if the Holder qualifies for Retirement (as defined in Section 8.2) the EIX Options will
become exercisable on the schedule specified in Section 8.2 and will remain exercisable for the remainder of the original EIX Option term. The Holder’s vested options will terminate for no value at the end of such period to the extent not
theretofore exercised. The portion of the option not eligible to vest following the termination of the Holder’s employment after giving effect to the proration described in this Section 8.4(A) shall terminate upon the termination of the
Holder’s employment, and the Holder shall have no further rights with respect to such terminated portion. Any fractional EIX Options vested under this Section 8.4 will be rounded up to the next whole number. 

  

	 	(B)	Performance Shares. The Performance Shares will vest with respect to (i) the number of Performance Shares that would have vested and become payable if the Holder’s
employment had continued through the last day of the Performance Period, multiplied by (ii) a fraction (not greater than 1), the numerator of which is the number of weekdays the Holder was employed by EIX or a subsidiary from January 1 of
the year of grant of the award through the one-year anniversary of the Holder’s last day of employment prior to termination of the Holder’s employment, and the denominator of which is the number of weekdays in the three calendar years
2008-2010, with the result rounded to four decimal places. Such vested Performance Shares will be payable to the Holder as provided in Section 4.3 to the extent of the EIX TSR ranking achieved as provided in Section 4.1. Any fractional
Performance Shares vested under this Section 8.4 will be paid in cash. Any unvested Performance Shares (after application of the foregoing vesting provisions) will terminate for no value as of the date of the Holder’s termination of
employment. 

  

	 	(C)	Restricted Stock Units. The Restricted Stock Units will vest to the extent necessary to cause the aggregate number of vested Restricted Stock Units to equal the number
of Restricted Stock Units granted (including any Restricted Stock Units added as provided in Section 5.2) multiplied by a fraction (not greater than 1), the numerator of which is the number of weekdays in the period from January 1 of the
year of grant of the award through the one-year anniversary of the Holder’s last day of employment prior to termination of the Holder’s employment, and the denominator of which is the number of weekdays in the three calendar years
2008-2010, with the result rounded to four decimal places. Any fractional Restricted Stock Units vested under this Section 8.4 will be paid in cash. Any unvested Restricted Stock Units (after application of the foregoing vesting provisions)
will terminate for no value as of the date of the Holder’s termination of employment. Vested Restricted Stock Units will be paid as soon as administratively feasible (and in all events within 30 days) following the date of the Holder’s
Separation from Service. For purposes of the LTI, a “Separation from Service” means the Holder’s “separation from service” with the Company as that term is used for purposes of Section 409A of the Code.
Notwithstanding the foregoing provisions of this Section 8.4(c), if at the time of the Holder’s involuntary termination the Holder is eligible for Retirement, the provisions of Section 8.2(c) rather than this Section 8.4(c) shall
apply as to that Holder’s LTI. 

  

	 	(D)	Conditions of Benefits. Notwithstanding the foregoing provisions, if at the time of the Holder’s involuntary termination the Holder is covered by a severance plan of EIX
or any of its affiliates, the Holder shall be entitled to the accelerated vesting provided in this Section 8.4 only if the Holder satisfies the applicable conditions for receiving severance benefits under that plan (including, without
limitation, any requirement to execute and deliver a release of claims) in connection with such involuntary termination. In the event that such conditions are not satisfied, the provisions of Section 8.1 above shall apply, and the Holder shall
not be entitled to any accelerated vesting under this Section 8.4. 

  

	 	8.5	 Effect of Change of Employer. For purposes of the LTI only, involuntary termination of employment will be deemed to
occur on the date the Holder’s employing company is no longer a member of the EIX 

  

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controlled group of corporations as defined in Section 1563(a) of the Internal Revenue Code (the “Code”), regardless of whether
Holder’s employment continues with that entity or a successor entity outside of the EIX controlled group. A termination of employment will not be deemed to occur for purposes of the LTI if a Holder’s employment by one EIX Company
terminates but immediately thereafter the Holder is employed by another EIX Company. 

  

	9.	CHANGE IN CONTROL; EARLY TERMINATION OF LTI 

 Notwithstanding any other provision herein, in the event of a Change in Control of EIX (as defined in Section 9.5), the provisions of this Section 9 will apply. 
  

	 	9.1	EIX Options. Upon (or, as may be necessary to effect the acceleration, immediately prior to) a Change in Control of EIX, all
outstanding and unvested EIX Options will become fully vested; provided, however, that such acceleration provision will not apply, unless otherwise expressly provided by the Committee, with respect to any EIX Options to the extent the Committee has
made a provision for the substitution, assumption, exchange or other continuation or settlement of the EIX Options, or the EIX Options would otherwise continue in accordance with their terms, in the circumstances. Any EIX Options that become vested
pursuant to this Section 9.1 or are otherwise vested shall terminate upon the related Change in Control of EIX; provided that the Holder of such EIX Option will be given reasonable advance notice of the impending termination and a reasonable
opportunity to exercise such EIX Option in accordance with its terms before such termination (except that in no event will more than 10 days’ notice of the accelerated vesting and impending termination be required); and provided further, that
the Committee may provide for such EIX Option, to the extent such option remains outstanding and unexercised, to be settled by a cash payment to the Holder of such option based upon the distribution or consideration payable to the holders of the EIX
Common Stock upon or in respect of such event, such cash payment to be made as soon as practicable after the Change in Control of EIX. 

  

	 	9.2	Performance Shares. Upon a Change in Control of EIX, the Performance Period for all outstanding Performance Shares will be shortened
so that the Performance Period will be deemed to have ended on the last day prior to such Change in Control of EIX, and the Performance Shares that will vest and become payable will be determined in accordance with Section 4.1 based on such
shortened Performance Period; provided, however, that this provision will not apply, unless otherwise expressly provided by the Committee, with respect to any Performance Shares to the extent the Committee has made a provision for the substitution,
assumption, exchange or other continuation or settlement of the Performance Shares, or the Performance Shares would otherwise continue in accordance with their terms, in the circumstances. Any Performance Shares that become subject to a shortened
Performance Period pursuant to this Section 9.2 shall be paid, to the extent such Performance Shares become vested and payable after giving effect to the first sentence of this Section 9.2, to the Holder in cash as soon as practicable (and
in all events within 30 days ) after the date of the Change in Control of EIX, and any such Performance Shares that do not become vested and payable shall terminate for no value as of the date of the Change in Control of EIX.

  

	 	9.3	Restricted Stock Units. Upon (or, as may be necessary to effect the acceleration, immediately prior to) a Change in Control of EIX,
all outstanding and unvested Restricted Stock Units will become fully vested. If such Change in Control constitutes a “change in the ownership” of EIX, a “change in the effective control” of EIX, or a “change in the
ownership of a substantial portion of the assets” of EIX, within the meaning of the Treasury Regulations promulgated under Section 409A of the Code, all then-outstanding Restricted Stock Units will be paid on or as soon as administratively
feasible (and in all events within 30 days) following the date of such event; otherwise, such Restricted Stock Units shall be paid at the applicable time otherwise provided in these Terms. 

  

	 	9.4	Other Acceleration Rules. Any acceleration of LTI pursuant to this Section 9 will comply with applicable legal requirements
and, if necessary to accomplish the purposes of the acceleration or if the circumstances require, may be deemed by the Committee to occur within a limited period of time not greater than 30 days prior to the Change in Control of EIX. Without
limiting the generality of the foregoing, the Committee may deem an acceleration to occur immediately prior to the applicable event and/or reinstate the original terms of a LTI if the event giving rise to acceleration does not occur.

  

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	 	9.5	Definition of Change in Control of EIX. A “Change in Control of EIX” shall be deemed to have occurred as of the
first day, after the date of grant of the award, that any one or more of the following conditions shall have been satisfied: 

  

	 	(A)	Any Person (other than a trustee or other fiduciary holding securities under an employee benefit plan of EIX) becomes the Beneficial Owner, directly or indirectly, of securities of
EIX representing thirty percent (30%) or more of the combined voting power of EIX’s then outstanding securities. For purposes of this clause, “Person” shall mean any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), except that such term shall not include one or more underwriters acquiring newly-issued voting securities (or securities
convertible into voting securities) directly from EIX with a view towards distribution; and the term “Beneficial Owner” shall mean as defined under Rule 13d-3 promulgated under the Exchange Act. 

  

	 	(B)	On any day after the date of grant (the “Reference Date”) Continuing Directors cease for any reason to constitute a majority of the Board. A director is a
“Continuing Director” if he or she either: 

  

	 	(i)	was a member of the Board on the applicable Initial Date (an “Initial Director”); or 

  

	 	 (ii)
	 was elected to the Board, or was nominated for election by EIX’s shareholders, by a vote of at least two-thirds
( 2/3) of the Initial Directors then in office. 

 A member of the Board who was not a director on the applicable Initial Date shall be deemed to be
an Initial Director for purposes of clause (b) above if his or her election, or nomination for election by EIX’s shareholders, was approved by a vote of at least two-thirds ( 2/3) of the Initial Directors (including directors elected after the applicable Initial Date who are deemed to be Initial Directors by application of this provision)
then in office. For these purposes, “Initial Date” means the later of (A) the date of grant or (B) the date that is two (2) years before the Reference Date. 
  

	 	(C)	EIX is liquidated; all or substantially all of EIX’s assets are sold in one or a series of related transactions; or EIX is merged, consolidated, or reorganized with or
involving any other corporation, other than a merger, consolidation, or reorganization that results in the voting securities of EIX outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of EIX (or such surviving entity) outstanding immediately after such merger, consolidation, or reorganization.
Notwithstanding the foregoing, a bankruptcy of EIX or a sale or spin-off of an affiliate of EIX (short of a dissolution of EIX or a liquidation of substantially all of EIX’s assets, determined on an aggregate basis) will not constitute a Change
in Control of EIX. 

  

	 	(D)	The consummation of such other transaction that the Board may, in its discretion in the circumstances, declare to be a Change in Control of EIX for purposes of the Plan.

  

	10.	ENGAGING IN COMPETITION WITH EIX OR ITS AFFILIATES 

 In the event that a Holder who is at the level of Senior Vice President or above “competes” (as defined below) with any of the Companies prior to, or during the six-month period following, any exercise of an EIX Option, the
Committee, in its sole discretion, may rescind such exercise within two years after such exercise. In the event of any such rescission, the Holder shall pay to EIX, or the Company by which the Holder is or was last employed, the amount of any gain
realized as a result of the rescinded exercise in such manner and on such terms and conditions as the Committee may require, and EIX or such Company shall be entitled to set-off the amount of any such gain against any amount owed to the Holder by
EIX or such Company. For purposes of this Section 10, “compete” shall mean the Holder’s rendering of services for any organization, or engaging directly or indirectly in any business, that competes with the business of EIX or any
of the Companies without the prior written consent of the General Counsel of EIX. 
  

	11.	TAXES AND OTHER WITHHOLDING 

 Upon any exercise,
vesting, or payment of any LTI, the Company shall have the right at its option to: 
  

	 	•	 	 require the Holder (or the Holder’s personal representative or beneficiary, as the case may be) to pay or provide for payment of at least the minimum amount of
any taxes which the Company may be required to withhold with respect to such LTI event or payment; or 

  

 8 

	 	•	 	 deduct from any amount otherwise payable in cash to the Holder (or the Holder’s personal representative or beneficiary, as the case may be) the minimum amount
of any taxes which the Company may be required to withhold with respect to such cash payment. 

 To the extent that the
receipt, exercise and/or vesting of any LTI requires tax withholding and a sufficient amount of cash (not otherwise deferred) is not generated from the underlying transaction to satisfy such withholding obligations, EIX shall (except as provided
below) substitute a cash award for a number of shares of Common Stock otherwise issuable pursuant to the LTI, rounded up to the next whole share for fractional shares, valued in a consistent manner at their fair market value as of the vesting or
exercise date or the date the LTI otherwise became payable, necessary to satisfy the minimum applicable withholding obligation in connection with such transaction to the extent that such withholding amount exceeds the amount of cash generated from
the underlying transaction and not otherwise deferred. In no event shall the shares withheld exceed the minimum whole number of shares required for tax withholding under applicable law. If for any reason EIX cannot or elects not to satisfy such
withholding obligations in such manner, the Company shall have the right to satisfy such withholding obligations, or require the Holder to satisfy such withholding obligations, as otherwise provided above. 
 To the extent that the receipt, exercise and/or vesting of any LTI requires Garnishment Payments by the Company, and a sufficient amount of cash is not
generated by the underlying transaction to satisfy the Garnishment Payment obligations arising from such transaction, the Company shall substitute a cash award for a number of shares of Common Stock otherwise issuable pursuant to the LTI, rounded up
to the next whole share for fractional shares, having a fair market value as of the vesting or exercise date or the date the LTI otherwise became payable equal to the amount required by any Garnishment, less any cash received and not deferred in
connection with such transaction. For this purpose, “Garnishment” means garnishment orders, levies, and other assessments imposed by legal authority and “Garnishment Payments” means payments required by the Company
pursuant to any such Garnishment. 
  

	12.	CONTINUED EMPLOYMENT 

 Nothing in the award
certificate or these Terms will be deemed to confer on the Holder any right to continue in the employ of any Company or interfere in any way with the right of the Companies to terminate his or her employment at any time. 
  

	13.	INSIDER TRADING; SECTION 16 

  

	 	13.1	Insider Trading. Each Holder shall comply with all EIX notice, trading and other policies regarding transactions in and involving
EIX securities (including, without limitation, policies prohibiting insider trading). 

  

	 	13.2	Section 16. If an LTI is granted to a person who later becomes subject to the provisions of Section 16 of the Exchange Act (“Section
16”), the LTI will immediately and automatically become subject to the requirements of Rule 16b-3(d) and/or 16b-3(e) ( the “Rule”) and may not be exercised, paid or transferred until the Rule has been satisfied. In its sole
discretion, the Committee may take any action to assure compliance with the requirements of the Rule, including withholding delivery to Holder (or any other person) of any security or of any other payment in any form until the requirements of the
Rule have been satisfied. The Secretary of EIX may waive compliance with the requirements of the Rule if he or she determines the transaction to be exempt from the provisions of paragraph (b) of Section 16. 

  

	 	13.3	Notice of Disposition. The Holder agrees that if he or she should plan to dispose of any shares of stock acquired on the exercise or payment of LTI awards (including a
disposition by sale, exchange, gift or transfer of legal title) and the Holder is a person who is required to preclear EIX securities transactions, the Holder will notify EIX prior to such disposition. 

  

 9 

	14.	AMENDMENT 

 The LTI are subject to the terms of the
Plan, as may be amended from time to time. EIX reserves the right to amend these Terms from time to time to the extent that EIX reasonably determines that the amendment is necessary or advisable to comply with applicable laws, rules or regulations
or to preserve the intended tax consequences of the applicable LTI (including, without limitation, compliance with Section 409A of the Code and regulations thereunder, to the extent that Section 409A is applicable to the LTI). The LTI may
not otherwise be amended or terminated (by amendment to or of a Plan or otherwise) in any manner materially adverse to the rights of the Holder of the affected LTI without such Holder’s consent. 
  

	15.	MISCELLANEOUS 

  

	 	15.1	Force and Effect. The various provisions herein are severable in their entirety. Any determination of invalidity or unenforceability of any one provision will have no
effect on the continuing force and effect of the remaining provisions. 

  

	 	15.2	Governing Law. These Terms will be construed under the laws of the State of California. 

  

	 	15.3	Notice. Unless waived by EIX, any notice required under or relating to the LTI must be in writing, with postage prepaid, addressed to: Edison International, Attn:
Corporate Secretary, P.O. Box 800, Rosemead, CA 91770. 

  

	 	15.4	Construction. These Terms shall be construed and interpreted to comply with Section 409A of the Code. Additionally, when any provision of this document
refers to a date, and that date falls on a holiday or weekend, the date shall be deemed to be the next succeeding business day, except that the last day of the Performance Period shall occur on December 31, 2010. Any determination of trading
price or fair market value for purposes of these Terms shall be made consistent with the resolutions adopted by the EIX Board of Directors on July 19, 2001 entitled “Fair Market Value Measure for Equity-Based Awards.” EIX Options and
Performance Shares are intended to qualify as performance-based compensation exempt from the deductibility limitations of Section 162(m) of the Code and these Terms shall be construed and interpreted consistent with that intent.

  

	 	15.5	Transfer Representations. The Holder agrees that any securities acquired by him or her hereunder are being acquired for his or her own account for investment
and not with a view to or for sale in connection with any distribution thereof and that he or she understands that such securities may not be sold, transferred, pledged, hypothecated, alienated, or otherwise assigned or disposed of without either
registration under the Securities Act of 1933 or compliance with the exemption provided by Rule 144 or another applicable exemption under such act. 

  

	 	15.6	Award Not Funded. The Holder will have no right or claim to any specific funds, property or assets of the Companies as to any award of LTI.

  

	 	15.7	Section 409A. Notwithstanding any provision of these Terms to the contrary, if the Holder is a “specified employee” as defined in
Section 409A of the Code, the Holder shall not be entitled to any payment with respect to any LTI subject to Section 409A in connection with the Holder’s Separation from Service until the earlier of (a) the date which is six
(6) months after the Holder’s Separation From Service for any reason other than the Holder’s death, or (b) the date of the Holder’s death. Any amounts otherwise payable to the Holder following the Holder’s Separation
From Service that are not so paid by reason of this Section 15.7 shall be paid as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Holder’s Separation From Service
(or, if earlier, the date of the Holder’s death). The provisions of this Section 15.7 shall only apply if, and to the extent, required to comply with Section 409A of the Code. 

  

 10Employment Agreement between Edison International and J.A. Bouknight, Jr.

 Exhibit 10.3 
  

							
	

	 		 		 	 John E. Bryson
 Chairman, President &

Chief Executive Officer

 July 12, 2005 
 Mr. J. A. Bouknight, Jr. 
 Steptoe & Johnson 
 1330 Connecticut Avenue, NW 
 Washington, D.C. 20036-1795 
 Dear Lon, 
 I am pleased to offer you the position of Executive Vice President and General Counsel of Edison International.
We are very pleased to extend this offer and are enthusiastic about the prospect of your joining our senior management team. You will report directly to me in our corporate offices in Rosemead, California. I am confident you will make significant
contributions in this essential role. 
 Your first day of employment by Edison International (your “employment commencement date”) will be
July 29, 2005. 
 Your initial compensation and benefits package will be as follows: 
  

	•	 	 You will earn a base salary at an initial rate of $525,000 annually, payable in accordance with our standard payroll policies. 

  

	•	 	 Your executive bonus target percentage will be 70% of your annual base salary rate, with a maximum bonus percentage of 140% of your annual base salary rate. Any
bonus with respect to 2005 will be prorated for the portion of the year you work for Edison International in 2005. 

  

	•	 	 Your long-term incentive target percentage will be 200% of your annual base salary rate (without proration for 2005). Three-fourths of the value of the long-term
incentive award will be in Edison International non-qualified stock options, and one-fourth in performance shares, with the 2005 grants to be made on your employment commencement date. 

 P.O. Box 999 
 2244 Walnut Grove Ave. 
 Rosemead, CA 91770 
 626-302-2265 

			
	Mr. J. A. Bouknight, Jr.	 	
	 Page
 2
	 	July 12, 2005

 In the future, your base salary rate, bonus target, and long-term incentives will be reviewed on a regular basis
at the same time and in the same manner as peer (Band B) executives. During the first three years of your employment your annual base salary rate will not be less than $525,000 and your bonus and long-term incentive target incentives will be those
applicable for Band B executives. 
 You will receive four weeks paid vacation annually, calculated from your date of hire rather than on a calendar year
basis, until your years of service make you eligible for a higher accrual under Edison International’s vacation program for employees. Such vacation shall accrue and be taken in accordance with Edison International’s standard policies and
procedures. 
 You have been approved for Edison International’s Relocation Plan 1 (Summary Plan enclosed). 
 As an employee of Edison International, you will be eligible for all benefit programs offered to employees, subject to the eligibility rules and terms and conditions of
each program as in effect from time to time. In addition, you will be eligible for all benefit programs offered to Band B executives, including the Executive Retirement Plan, Executive Deferred Compensation Plan, Executive Severance Plan, Executive
Disability Plan, Survivor Benefit Plan, car allowance, Estate and Financial Planning Program, and Executive Health Enhancement Program, subject to the terms and conditions of each program as in effect from time to time. 
 If you remain continuously employed by Edison International through the fourth anniversary of your employment commencement date (July 29, 2009, which would result in
five years of service credit for purposes of vesting your benefit under our Executive Retirement Plan), you will receive an additional four years of service credit for purposes of 

			
	Mr. J. A. Bouknight, Jr.	 	
	 Page
 3
	 	July 12, 2005

  

 
determining your benefit under our Executive Retirement Plan (such that at the end of your first four years of employment, you will have a total of eight
years of service credited for purposes of the Executive Retirement Plan benefit calculation and be fully vested in that benefit). If you remain continuously employed through the fifth anniversary of your employment commencement date (July 29, 2010),
you will receive, in addition to credit for the additional year of work and the benefit provided in the preceding sentence, an additional year of such service credit (such that at the end of your first five years of employment, you will have a total
of ten years of service credited for purposes of the Executive Retirement Plan benefit calculation and be fully vested in that benefit). You will not receive any further enhanced benefit (beyond credit for the additional time that you remain
continuously employed) even if you continue working after the fifth anniversary of your employment commencement date. Except as provided in the next sentence, you will not receive any additional years of service credit as an enhanced benefit if your
employment by Edison International terminates before the fourth anniversary date of your employment commencement date. If your employment terminates before the fourth anniversary of your employment commencement date in circumstances that entitle you
to severance benefits pursuant to the Executive Severance Plan or because of your death or disability that qualifies you for benefits under our long-term disability plan, then for purposes of determining your Executive Retirement Plan benefit you
will receive an additional number of years of service credit equal to the number of years that you are actually employed by Edison International provided that the total years of service credit for purposes of the Executive Retirement Plan will not
be less than six and you will be deemed to be fully vested in that benefit. 
 If your employment terminates before the third anniversary of your employment
commencement date in circumstances that entitle you to severance benefits pursuant to the Executive Severance Plan (or any similar successor plan), your cash severance benefit pursuant to Section 

			
	Mr. J. A. Bouknight, Jr.	 	
	 Page
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	 	July 12, 2005

  

 
5.3.1 of that plan (as modified by Section 5.5.1 of that plan, if applicable) (or the corresponding provisions of any similar successor plan, as the
case may be) will not be less than the amount determined as set forth below: 
  

	 	(1)	the sum of (A) $2,667,500 (your starting salary and targeted annual bonus amount times three), plus (B) the aggregate amount of the cash bonuses actually paid to you by
Edison International over the course of your employment which exceeded the established targeted bonus amount, including any amounts that are otherwise then payable and including amounts deducted for tax withholding and other authorized deductions;

 MINUS 
  

	 	(2)	the aggregate amount of the base salary and the target portion of cash bonuses actually paid to you by Edison International over the course of your employment, including any amounts
that are otherwise then payable and including amounts deducted for tax withholding and other authorized deductions (that is, you would retain the portions of bonuses paid that exceeded the target amounts in addition to the three years’ worth of
starting salary and target bonus). 

 Your employment with Edison International is contingent upon successful completion of a substance screen,
verification of your legal right to work permanently in the United States, personal and/or professional references, past employment, education, and professional license or certification, and completion of a Security Questionnaire form and background
investigation. Our Human Resources staff will contact you to assist. Additionally, this offer is contingent on the approval of the Edison International Board of Directors. Your employment with Edison International will be on an “at will”
basis. 

			
	Mr. J. A. Bouknight, Jr.	 	
	 Page
 5
	 	July 12, 2005

  

 We look forward to your response as soon as possible. 
 Lon, I am personally delighted to have the opportunity to work with you and have you join the leadership team here at Edison International. Please feel free to call if you would like to discuss this further.

 Please signify your acceptance of our offer by signing the enclosed copy of this letter and faxing it back to me at 626-302-9935. Please also mail a copy
of the signed original to me. This offer is valid until the close of business on July 19, 2005. 
  

	
	Sincerely,
	
	 /s/ John E. Bryson

	John E. Bryson
	Chairman, President and CEO

 Encls. 

 I understand my employment by Edison International will be “at will,” which means that it may be terminated by
either the company or me at any time without advance notice, and with or without cause. I also understand that the company may modify my compensation at any time, subject to the provisions of the foregoing letter. I agree to abide by the general
employment and other policies of Edison International (including, without limitation, insider trading policies) as they are in effect from time to time. 
 I
agree that for the course of my employment by Edison International I will devote substantially all of my business time, energy and skill to the performance of my duties for Edison International and will hold no other job that conflicts with this
obligation. I represent to Edison International that the execution and delivery of this letter by me and Edison International and the performance by me of my duties for Edison International will not constitute a breach of, or otherwise contravene,
the terms of any other agreement or policy to which I am a party or otherwise bound. 
 I understand that the provisions of this paragraph and the preceding
two paragraphs cannot be altered except in a writing signed by an authorized officer of Edison International (other than myself). This letter contains the entire offer that has been made by Edison International to me and supersedes all prior and
contemporaneous negotiations and agreements with respect to my employment terms. Edison International has made no representations, warranties, or other agreements except as expressly set forth herein. 
  

					
	 /s/ J. A. Bouknight, Jr.
	 		 	 July 14, 2008

	Accepted: J.A. Bouknight, Jr.	 		 	Date

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