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|   | (i) | 100% of the amount contributed to the Plan by the Participant, not in excess of 1% of a Participant's Compensation  as of each pay date, plus |
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|   | (ii) | 70% of the amount in excess of 1%, but not in excess of 6%, of such Participant's Compensation, contributed to the Plan by such Participant as of each pay date. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (1) | Shall be distributed to the Participant in one of the following optional forms as selected by the Participant: |
|--------|-----|----------------------------------------------------------------------------------------------------------------|

|   | (A) | A single lump-sum payment, or |
|--------|-----|-------------------------------|

|   | (B) | In annual installment payments over not less than two nor more than ten years. |
|--------|-----|--------------------------------------------------------------------------------|

|   | (2) | Shall be paid in the form of distribution selected by the Participant pursuant to paragraph (1) 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 (A) the date of the Participant’s Termination (provided, however, if the Participant was an Executive Officer at the time of his or her Termination, the earliest commencement date (for account valuation purposes) shall be December 31 of the year of such Executive Officer’s Termination) or (2) the first, second, third, fourth or fifth anniversary of the Participant’s Termination, as selected by the Participant. |
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|   | (1) | Form of Distribution.  The Company shall cause the Participant to be paid the full amount credited to his or her Active SRSP 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 |
|--------|-----|--------------------------------|

|   | (i) | as of the First Date Available; or |
|--------|-----|------------------------------------|

|   | (ii) | as of the Next Date Available; or |
|--------|------|-----------------------------------|

|   | (iii) | as of the fifth anniversary of the First Date Available; or |
|--------|-------|-------------------------------------------------------------|

|   | (iv) | as of the fifth anniversary of the Next Date Available; or |
|--------|------|------------------------------------------------------------|

|   | (B) | In five (5) annual installments commencing |
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|   | (i) | as of the First Date Available; or |
|--------|-----|------------------------------------|

|   | (ii) | as of the Next Date Available; or |
|--------|------|-----------------------------------|

|   | (iii) | as of the fifth anniversary of the First Date Available; or |
|--------|-------|-------------------------------------------------------------|

|   | (iv) | as of the fifth anniversary of the Next Date Available; or |
|--------|------|------------------------------------------------------------|

|   | (C) | In ten (10) annual installments commencing. |
|--------|-----|---------------------------------------------|

|   | (i) | as of the First Date Available; or |
|--------|-----|------------------------------------|

|   | (ii) | as of the Next Date Available. |
|--------|------|--------------------------------|

|   | (2) | Effective Election.  For this purpose, a Participant’s election with respect to the distribution of his or her Active SRSP Account Balance shall not be effective unless all of the following requirements are satisfied. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | The election is submitted to the Company in writing in a form determined by the Committee to be acceptable; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (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: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Submitted within the applicable election period (as determined in accordance with Section 3.2), but only if the distribution election is |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | submitted in connection with the Participant’s initial deferral election under this Plan; or |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | (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 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Submitted during the 2006 Distribution Election Period by a Participant who then has an Active SRSP 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 2.11, but only with regard to the last distribution election form submitted by such Participant during that period; or |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 SRSP 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. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 SRSP 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 5.1(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. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 SRSP 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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | If a Participant fails to submit an effective distribution election with regard to his Active SRSP Account Balance that satisfies the requirements of Section 5.1(b)(2)(B)(i) (with his timely initial deferral election) or Section 5.1(b)(2)(B)(ii) (during the 2005 Distribution Election Period) or Section 5.1(b)(2)(B)(iii) (during the 2006 Distribution Election |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | 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 SRSP Account Balance in a single lump sum as of the First Date Available. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 SRSP Account Balance that satisfies the requirements of this Section 5.1(b), the deferral election with respect to Contributions credited to such Participant’s Active SRSP Account Balance shall terminated and the entire balance of such Participant’s Active SRSP Account Balance shall be distributed to such Participant in a single lump sum as soon as administratively practicable after the Termination of such Participant. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | 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, |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | 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 the claim; |
|--------|-----|---------------------------------------------------|

|   | (2) | specific reference to the provisions of the Plan upon which the denial of the claim was based; |
|--------|-----|------------------------------------------------------------------------------------------------|

|   | (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 |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | an explanation of the review procedure specified in Section 7.2, 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 on review. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (1) | the specific reason(s) for the adverse determination; |
|--------|-----|-------------------------------------------------------|

|   | (2) | reference to the specific provisions of the Plan on which the determination was based; |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (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 |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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, Human Resources |
|--------|------------------------------------------------------|

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