|   | (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 the Participant. |
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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 installments                commencing |
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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 installments                commencing. |
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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 such                Participant. |
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|   | (i) | if                the Aggregate Account of a Participant who is not a Key Employee                is                $10,000 or less on the date of the Participant’s Termination, the full                value of the Account shall be distributed as of the First Date Available                in a single, lump sum distribution regardless of the form elected                by such                Participant, provided that all similar arrangements taken into account                in                determining the Aggregate Account also provide for such a lump sum                distribution that is paid on or before the later of (i) December                31 of the                calendar year in which occurs the Participant’s Termination, or (ii) the                15th day of the third month following the Participant’s Termination. For                this purpose, the term “Aggregate Account” means the entirety of the                Participant’s interest in this Plan as well as all other similar                arrangements that would constitute a nonqualified deferred compensation                plan for purposes of Code Section 409A and the regulations issued                thereunder. 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 the                claim; |
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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 on                review. |
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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 |
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|   |                                                       |
|   | By: /s/                Genevieve A. Tuchow            |
|   | Genevieve                A. Tuchow                         |
|   | Vice                President, Human Resources             |