|   | (1) | Pre-Retirement      Cash-Out.  If the Participant has not Retired, the      Company shall cause the Participant to be paid the full amount credited to      his or her Legacy Account Balance in a single lump sum.  The      payment shall be made within 60 days after the Participant’s      Termination. |
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|   | (2) | Post-Retirement As      Elected.  If the Participant has Retired, amounts that      are credited to the Participant's Legacy Account  Balance: |
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|   | (A) | Shall      be distributed to the Participant in one of the following optional forms      as selected by the Participant: |
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|   | (i) | A      single lump-sum payment, or |
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|   | (ii) | In      annual installment payments over not less than two nor more than ten      years. |
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|   | (B) | Shall      be paid in the form of distribution selected by the Participant pursuant      to paragraph (A) shall commence within 60 days after the date elected by      the Participant on an effective distribution election      form.  Such date elected by the Participant shall be either (1)      the date of the Participant’s Retirement (provided, however, if the      Participant was an Executive Officer at the time of his or her Retirement,      the earliest commencement date (for account valuation purposes) shall be      December 31 of the year of such Executive Officer’s Retirement) or (2) the      first, second, third, fourth or fifth anniversary of the Participant’s      Retirement, as selected by theParticipant. |
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|   | (3) | One-Time Request for      In-Service Withdrawal (Penalty Applies).  A Participant      shall be entitled to receive, upon a written request to the Committee that      is effective between April 1 and December 31 of any Plan Year, a lump sum      distribution from his or her Legacy Account Balance of an amount equal to      or greater than 25% of the Participant’s Legacy Account Balance as of the      date of the request.  The date of the request shall be the date      the Committee or the Committee’s representative receives the      request.   The lump sum amount to be paid to the      Participant shall be subject to a 10% early withdrawal penalty, which      penalty shall reduce the amount to be distributed to the Participant or      Former Participant.  The Participant or Former Participant shall      forfeit the amount of the 10% withdrawal penalty.  The lump sum      amount shall be paid within 60 days after the Committee receives the      withdrawal request.  Any Participant who elects to receive a      benefit under this paragraph shall not be considered an Eligible Employee      with respect to the deferral election periods that apply to such      Participant during the three year period that begins as of the date the      amount is paid to such Participant under this Section, and such      Participant shall not be entitled to request any additional withdrawals      under this paragraph prior to the Participant’s termination of      employment.  Any effective deferral elections that have already      been submitted by such participant in accordance with Article IV shall be      given full force and effect. |
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|   | (1) | Form of      Distribution.  The Company shall cause the Participant or      the Former Participant to be paid the full amount credited to his or her      Active Account Balance in accordance with his or her effective election in      one of the following forms: |
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|   | (A) | A      single lump sum distribution |
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|   | (i) | as      of the First Date Available; or |
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|   | (ii) | as      of the Next Date Available; or |
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|   | (iii) | as      of the fifth anniversary of the First Date Available;  or |
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|   | (iv) | as      of the fifth anniversary of the Next Date Available;  or |
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|   | (B) | In      five (5) annual installmentscommencing |
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|   | (i) | as      of the First Date Available; or |
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|   | (ii) | as      of the Next Date Available; or |
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|   | (iii) | as      of the fifth anniversary of the First Date Available;  or |
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|   | (iv) | as      of the fifth anniversary of the Next Date Available;  or |
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|   | (C) | In      ten (10) annual installmentscommencing. |
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|   | (i) | as      of the First Date Available; or |
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|   | (ii) | as      of the Next Date Available. |
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|   | (2) | Effective      Election.  For this purpose, a Participant’s election      with respect to the distribution of his or her Active Account Balance      shall not be effective unless all of the following requirements are      satisfied. |
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|   | (A) | The      election is submitted to the Company in writing in a form determined by      the Committee to be acceptable; |
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|   | (B) | The      election is submitted timely.  For purposes of this paragraph, a      distribution election will be considered “timely” only if it is submitted      prior to the Participant’s Termination and it satisfies the requirements      of (i), (ii), (iii) or (iv), below, as may be  applicable: |
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|   | (i) | Submitted      within the applicable election period set forth in Section 4.2, but only      if the distribution election is submitted in connection with the      Participant’s initial deferral election under this Plan;  or |
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|   | (ii) | Submitted      during the 2005 Distribution Election Period, but only with regard to the      first distribution election form submitted by such Participant during that      period; or |
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|   | (iii) | Submitted      during the 2006 Distribution Election Period by a Participant who then has      an Active Account Balance but who was not an Eligible Employee for      purposes of a deferral election for 2006 by reason of the change in the      definition of Eligible Employee set forth in Section 2.7, but only with      regard to the last distribution election form submitted by such      Participant during that period; or |
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|   | (iv) | If      the Participant is submitting the election to change the timing or form of      distribution that is then in effect with respect to the Participant’s      Active Account Balance other than an effective distribution election      submitted as part of the 2005 Distribution Election Period or 2006      Distribution Election Period, such election must be submitted at least one      year prior to the date of the Participant’s  Termination. |
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|   | (C) | If      the Participant is submitting the election pursuant to paragraph      (b)(2)(B)(iv) to change the timing or form of distribution that is then in      effect with respect to the Participant’s Active Account Balance (i.e., the      Participant is not submitting an election with his initial deferral      election [(B)(i)] nor during the 2005 or 2006 Distribution Election Period      [(B)(ii) & (B)(iii)], the newly selected option must result in the      further deferral of the first scheduled payment from the Participant’s      Active Account balance by at least 5 years.  For purposes of      compliance with the rule set forth in Section 409A(a) of the Code (and the      regulations issued thereunder), each distribution option described in      Section 6.1(b)(1) shall be treated as a single payment as of the first      scheduled payment date. The requirement included in the prior plan      document that the newly elected option not result in the acceleration of      any scheduled payment under the replaced option shall be      disregarded. |
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|   | (D) | If      the Participant is submitting the election pursuant to paragraph      (b)(2)(B)(iii) to change the timing or form of distribution that is then      in effect with respect to the Participant’s Active Account Balance, the      newly selected option may not defer payments that the Participant would      have received in 2006 if not for the new distribution election nor cause      payments to be made in 2006 if not for the new distribution      election. |
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|   | (3) | If      a Participant fails to submit an effective distribution election with      regard to his Active Account Balance that satisfies the requirements of      Section 6.1(b)(2)(B)(i) (with his timely initial deferral election) or      Section 6.1(b)(2)(B)(ii) (during the 2005 Distribution Election Period) or      Section 6.1(b)(2)(B)(iii) (during the 2006 Distribution Election Period),      as applicable, by the date of such initial deferral election or the last      day of the 2005 or 2006 Distribution Election Period, respectively, as      applicable, such Participant shall be considered to have elected a      distribution of his or her Active Account Balance in a single lump sum as      of the First Date Available. |
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|   | (4) | Notwithstanding      any other provision of this Plan to the contrary, if a Participant whose      Termination occurs on or before June 30, 2005 fails to submit an effective      distribution election with regard to his Active Account Balance that      satisfies the requirements of this Section 6.1(b), the deferral election      with respect to Contributions credited to such Participant’s Active      Account Balance shall terminated and the entire balance of such      Participant’s Active Account Balance shall be distributed to such      Participant in a single lump sum as soon as administratively practicable      after the Termination of suchParticipant. |
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|   | (i) | if      the Participant’s Account is $10,000 or less on the Participant’s First      Date Available (determined without regard to any delay by reason of a      Participant’s being an Executive Officer), the Committee may require that      the full value of the Participant’s Account be distributed as of the First      Date Available (determined without regard to any delay by reason of a      Participant’s being an Executive Officer) in a single, lump sum      distribution regardless of the form elected by such Participant, provided      that such payment is consistent with the limited cash-out right described      in Treasury Regulation Section 1.409A-3(j)(4)(v) or other guidance of the      Code in that the payment results in the termination and liquidation of the      entirety of the Participant’s interest under each nonqualified deferred      compensation plan (including all agreements, methods, programs, or other      arrangements with respect to which deferrals of compensation are treated      as having been deferred under a single nonqualified deferred compensation      plan under Treasury Regulation 1.409A-1(c)(2) or other guidance of the      Code) that is associated with this Plan; and the total payment with      respect to any such single nonqualified deferred compensation plan is not      greater than the applicable dollar amount under Code Section      402(g)(1)(B).  Provided,however, |
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|   | (ii) | Payment      to a Participant under any provision of this Plan will be delayed at any      time that the Committee reasonably anticipates that the making of such      payment will violate Federal securities laws or other applicable law;      provided however, that any payments so delayed shall be paid at the      earliest date at which the Committee reasonably anticipates that the      making of such payment will not cause such  violation. |
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|   | (1) | The      specific reasons for the denial of theclaim; |
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|   | (2) | Specific      reference to the provisions of the Plan upon which the denial of the claim      was based; |
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|   | (3) | A      description of any additional material or information necessary for the      claimant to perfect the claim and an explanation of why such material or      information is necessary, and |
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|   | (4) | An      explanation of the review procedure specified in Section 8.2, and the time      limits applicable to such procedures, including a statement of the      claimant’s right to bring a civil action under section 502(a) of the      Employee Retirement Income Security Act of 1974, as amended, following an      adverse benefit determination onreview. |
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|   | (1) | The      specific reason(s) for the adverse  determination; |
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|   | (2) | Reference      to the specific provisions of the Plan on which the determination was      based; |
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|   | (3) | A      statement that the claimant is entitled to receive, upon request and free      of charge, reasonable access to, and copies of, all documents, records and      other information relevant to the claimant’s claim for benefits;      and |
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|   | (4) | A      statement of the claimant’s right to bring an action under Section 502(a)      of ERISA. |
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|   | AMERICAN      ELECTRIC POWER SERVICE CORPORATION       |
|--------|--------------------------------------------------------|
|   |                                                   |
|   |                                                   |
|   | By:  /s/      Genevieve      A. Tuchow  |

|   | Genevieve      A. Tuchow, Vice President, HumanResources |
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