|   | (a) | As      soon as practicable following the Executive’s date of termination, AEPSC      shall make a lump sum cash payment to the Executive in an amount equal to      the sum of (1) the Executive’s Annual Salary through the date of      termination to the extent not theretofore paid, (2) the product of (x) the      current plan year’s Target Annual Incentive and (y) a fraction, the      numerator of which is the number of days in such calendar year through the      date of termination, and the denominator of which is 365, except that      annual incentive plans which do not have predetermined annual target      awards for participants shall have their pro-rated incentive compensation      award for the current plan year paid as soon as practicable, and (3) any      accrued vacation pay that otherwise would be available upon the      Executive’s termination of employment with AEPSC, in each case to the      extent not theretofore paid and in full satisfaction of the rights of the      Executive thereto; provided, however, in the case of a Qualifying      Termination in the circumstances specified in Article I(o)(B), payment of      the amount described in subsection (2) of this Section 3.1(a) shall not be      made until immediately after the Change in Control event or circumstance;      and |
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|   | (b) | Within      sixty (60) days of the Executive’s return of the signed release form,      AEPSC shall make a lump sum cash payment to the Executive in an amount      equal to the CIC Multiple times the Executive’s Annual Compensation. If      the Qualifying Termination is specified in Article I(o) (A) or (B), no      such lump sum payment shall be made unless and until the Change in Control      related to the Qualifying Termination shall have  occurred. |
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|   | (a) | The      severance payments and benefits provided under Sections 3.1(b), 3.2 and,      if applicable, 3.4 hereof shall be conditioned upon the Executive      executing a release at the time the Executive’s employment is terminated,      in the form established by the Corporation or by AEPSC, releasing the      Corporation, AEPSC and their shareholders, partners, officers, directors,      employees and agents from any and all claims and from any and all causes      of action of kind or character, including but not limited to all claims or      causes of action arising out of Executive’s employment with the      Corporation or AEPSC or the termination of such  employment. |
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|   | (b) | The      severance payments and benefits provided under Sections 3.1, 3.2 and, if      applicable, 3.4 hereof shall be subject to, and conditioned upon, the      waiver of any other cash severance payment or other benefits provided by      AEPSC pursuant to any other severance agreement between AEPSC and the      Executive.  No amount shall be payable under this Agreement to,      or on behalf of the Executive, if the Executive elects benefits under any      other cash severance plan or program, or any other special pay arrangement      with respect to the termination of the Executive’s    employment. |
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|   | (c) | The      Executive agrees that at all times following termination, the Executive      will not, without the prior written consent of AEPSC or the Corporation,      disclose to any person, firm or corporation any “confidential      information,” of AEPSC or the Corporation which is now known to the      Executive or which hereafter may become known to the Executive as a result      of the Executive’s employment or association with AEPSC or the      Corporation, unless such disclosure is required under the terms of a valid      and effective subpoena or order issued by a court or governmental body;      provided, however, that the foregoing shall not apply to confidential      information which becomes publicly disseminated by means other than a      breach of this provision.  It is recognized that damages in the      event of breach of this Section 3.3(c) by the Executive would be      difficult, if not impossible, to ascertain, and it is therefore agreed      that AEPSC and the Corporation, in addition to and without limiting any      other remedy or right that AEPSC or the Corporation may have, shall have      the right to an injunction or other equitable relief in any court of      competent jurisdiction, enjoining any such breach, and the Executive      hereby waives any and all defenses the Executive may have on the ground of      lack of jurisdiction or competence of the court to grant such an      injunction or other equitable relief.  The existence of this      right shall not preclude AEPSC or the Corporation from pursuing any other      rights or remedies at law or in equity which AEPSC or the Corporation may      have. |
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|   | “Confidential      information” shall mean any confidential, propriety and or trade secret      information, including, but not limited to, concepts, ideas, information      and materials relating to AEPSC or the Corporation, client records, client      lists, economic and financial analysis, financial data, customer      contracts, marketing plans, notes, memoranda, lists, books,      correspondence, manuals, reports or research, whether developed by AEPSC      or the Corporation or developed by the Executive acting alone or jointly      with AEPSC or the Corporation while the Executive was employed by      AEPSC. |
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|   | (a) | If      the Total Payments do not exceed 105% of the amount as would trigger the      Grandfathered Executive having any “parachute payment” as described in      Code Section 280G(b)(2), then, after taking into account any reduction in      the Total Payments provided by reason of Code Section 280G in such other      plans, arrangements or agreements, the cash payments provided in Section      3.2 of this Agreement shall first be reduced, and the noncash payments and      benefits shall thereafter be reduced, to the extent necessary so that no      portion of the Total Payments is subject to the Excise Tax; provided,      however, that the Grandfathered Executive may elect (at any time prior to      the payment of any Total Payment under this Agreement) to have the noncash      payments and benefits reduced (or eliminated) prior to any reduction of      the cash payments under thisAgreement. |
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|   | (b) | If      the Total Payments exceed 105% of the amount as would trigger the      Grandfathered Executive having any “parachute payment” as described in      Code Section 280G(b)(2), then, AEPSC shall pay to the Grandfathered      Executive an additional payment (a "Gross-up Payment") in an amount such      that after payment by the Grandfathered Executive of all taxes (including      any interest or penalties imposed with respect to such taxes, but      excluding any such taxes, interest or penalties as may be imposed on the      Grandfathered Executive pursuant to Code Section 409A), including any      Excise Tax imposed on any Gross-up Payment, the Grandfathered Executive      retains an amount of the Gross-up Payment equal to the Excise Tax imposed      upon the Payments. |
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|   | (c) | All      determinations required to be made under this Section 3.4, including the      assumptions to be utilized in arriving at such determinations and whether      an Excise Tax is payable by the Grandfathered Executive and the amount of      such Excise Tax, shall be made by a nationally recognized tax preparation,      financial counseling or public accounting firm (the “Tax Firm”) that is      experienced in 280G calculations and that is selected by AEPSC prior to      the Change in Control.  The Tax Firm shall be directed by AEPSC      to submit its preliminary determination and detailed supporting      calculations to both AEPSC and the Grandfathered Executive within 15      calendar days after the date of the Grandfathered Executive’s termination      of employment, if applicable, and any other such time or times as may be      requested by AEPSC or the Grandfathered Executive.  If the Tax      Firm determines that Excise Tax would be payable by the Grandfathered      Executive if not for the applicability of Section 3.4(a), AEPSC shall      reduce the payments as described in said Section 3.4(a) in a manner      consistent with determinations made by the Tax Firm.  If the Tax      Firm determines that a Gross-up Payment to the Grandfathered Executive is      triggered pursuant to Section 3.4(b), AEPSC shall make the Gross-Up      Payment attributable thereto.  If the Tax Firm determines that      no Excise Tax is payable by the Grandfathered Executive, it shall, at the      same time as it makes such determination, furnish the Grandfathered      Executive with an opinion that she has substantial authority not to report      any Excise Tax on her federal, state, local income or other tax      return.  All fees and expenses of the Tax Firm shall be paid by      AEPSC in connection with the calculations required by this      section. |
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|   | (d) | The      federal, state and local income or other tax returns filed by the      Grandfathered Executive (or any filing made by a consolidated tax group,      which includes AEPSC) shall be prepared and filed on a consistent basis      with the determination of the Tax Firm with respect to the Excise Tax      payable by the Grandfathered Executive.  The Grandfathered      Executive shall make proper payment of the amount of any Excise Tax, and      at the request of AEPSC, provide to AEPSC true and correct copies (with      any amendments) of her federal income tax return as filed with the      Internal Revenue and such other documents reasonably requested by AEPSC,      evidencing such payment. |
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|   | (e) | The      Grandfathered Executive shall notify AEPSC immediately in writing of any      claim by the Internal Revenue Service that, if successful, would require      AEPSC to make a Gross-up Payment (or a Gross-up Payment in excess of that,      if any, initially determined under Section 3.4(b)) within five days of the      receipt of such claim.  AEPSC shall notify the Grandfathered      Executive in writing at least five days prior to the due date of any      response required with respect to such claim, or such shorter time period      following AEPSC's receipt of the notice, if it plans to contest the      claim.  If AEPSC decides to contest such claim, the      Grandfathered Executive shall cooperate fully with AEPSC in such action;      provided, however, AEPSC shall bear and pay directly or indirectly all      costs and expenses (including additional interest and penalties) incurred      in connection with such action and shall indemnify and hold the      Grandfathered Executive harmless, on an after-tax basis, for any Excise      Tax or income tax, including interest and penalties with respect thereto,      imposed as a result of AEPSC's action.  If the Grandfathered      Executive receives a refund of any amount paid by AEPSC with respect to      such claim, the Grandfathered Executive shall promptly pay to AEPSC (i)      such refund and (ii) the amount of any Gross-up Payment associated with      such refund that is not included in the amount of such refund (such as      taxes other than federal taxes included in the Gross-up      Payment).  If AEPSC fails to timely notify the Grandfathered      Executive whether it will contest such claim or AEPSC determines not to      contest such claim, then AEPSC shall immediately pay to the Grandfathered      Executive the portion of such claim, if any, which it has not previously      paid to the Grandfathered Executive as well as the amount of any Gross-up      Payment (calculated pursuant to Section 3.4) associated with such payment      but that has not otherwise been paid to the Grandfathered      Executive. |
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|   | (f) | Unless      otherwise required by this Agreement to be paid earlier, any Gross-up      Payment required under this Section 3.4 shall be paid no later than the      end of the Grandfathered Executive’s taxable year next following the      Grandfathered Executive’s taxable year in which the related taxes are      remitted to the applicable taxingauthority. |
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|   | American      Electric Power Service Corporation                        |
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|   |                                                                    |
|   |                                                                    |
|   | By  /s/ Michael G.      Morris                                |
|   |             Michael G. Morris             |
|   |             Chairman, President & CEO |