|   | (a) | The      Employee shall be credited with seventeen year of service in addition to      the number of years the Employee actually works for  AEP; |
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|   | (b) | The      benefit shall take into account the eligible compensation received by the      Employee during the term of this Employment Agreement, including earned      MICP awards and excluding earned PSIP and NPIP awards;  and |
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|   | (c) | The      calculated benefit to which the Employee is entitled shall be reduced by      any retirement benefit the Employee is entitled to receive from all      qualified and non-qualified plans sponsored by any prior employer of the      Employee.  The Employee shall provide AEP with a list of such      other plans within a reasonable time prior to the date the Employee’s      benefits from the American Electric Power Excess Benefit Plan are      scheduled to commence. |
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|   | (A) | If      AEP reasonably believes that its providing continued benefits at a reduced      rate (that is, for an employee contribution that is less than the full      cost of such benefits) would cause the Employee to incur excise tax under      Section 409A of the Internal Revenue Code of 1986, as amended (the      “Code”), the Employee shall pay the full cost of such benefits and not      receive any reduced rate for the first six (6) months after the date of      the Employee’s separation by reason of the elimination of the Employee’s      position as described in Section 5.03 (the “Separation      Date”).  As soon as practicable after the date that is 6 months      after the Separation Date, AEP will pay to the Employee an amount equal to      the difference between the actual amount the Employee paid for the      affected benefits and the amount the Employee would have paid for such      benefits had the reduced rate been effective (the “Benefit Contribution      Payment”).  [AEP will also pay additional amounts such that the      Benefit Contribution Payment is the amount payable to the employee after      payment of any federal, state, local, or other  taxes.] |
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|   | (B) | Notwithstanding      any provision of Section 5.03(b) to the contrary, the continuation of the      Employee’s pay will end once the total of the payments becomes equal to      two times the lesser of (a) the Employee’s annual rate of pay for services      provided to AEP in the year before the year of the Separation Date      (adjusted for any increase during that year that was expected to continue      indefinitely if there had been no Separation Date, or (b) the limit      prescribed in Section 401(a)(17) of the Code effective in the year of the      Employee’s Separation Date.  As of the date the continuation      payments ended pursuant to the preceding sentence, but no earlier than six      months after the date the Employee separated from service, as defined in      Section 409A of the Code, the Employee will receive a second stream of      payments equal to any pay continuation payments as may then be otherwise      due and owing, with the first such payment also including an amount equal      to the excess, if any, of (i) the total amount of continuation pay the      Employee was entitled to receive during the period between the Separation      Date and the date the payments pursuant to the preceding sentence ended,      over (ii) the amount paid in accordance with the preceding      sentence. |
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