|   | (A) | Notwithstanding      any provision of Section 4.1(a)(2) to the contrary, the continuation of      the Executive’s Base Salary will end once the total of the payments      becomes equal to two times the lesser of (a) the Executive’s annual rate      of pay for services provided to the Companies in the year before the year      of the Executive termination of employment (adjusted for any increase      during that year that was expected to continue indefinitely if there had      been no termination of employment, or (b) the limit prescribed in Section      401(a)(17) of the Code effective in the year of the Executive’s      termination of employment.  As of the date the continuation      payments end pursuant to the preceding sentence, but no earlier than six      months after the date the Executive separated from service, as defined in      Section 409A of the Code, the Executive 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      Executive was entitled to receive during the period between the      Executive’s termination of employment 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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|   | (B) | If      AEP reasonably believes that its providing continued benefits at a reduced      rate (that is, for an Executive contribution that is less than the full      cost of such benefits) would cause the Executive to incur excise tax under      Section 409A of the Internal Revenue Code of 1986, as amended (the      “Code”), the Executive 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 Executive’s termination of employment.  As soon as      practicable after the date that is 6 months after the Executive’s      termination of employment, Service Corporation will pay to the Executive      an amount equal to the difference between the actual amount the Executive      paid for the affected benefits and the amount the Executive would have      paid for such benefits had the reduced rate been  effective. |
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