*The        Wall Street Journal*

| (i)   | The                Shares or Share Equivalents have been earned by the Participant,                if                applicable; |
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| (ii)   | The                Shares or Share Equivalents are then Vested; |
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| (iii)   | The                Shares or Share Equivalents are not automatically allocated to the                Participant’s Career Share Account pursuant to Section 5.3, below;                and |
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| (iv)   | The                Shares or Share Equivalents are not encumbered, pledged or hypothecated                in                any way. |
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*Determination        Date.*

|   | (i) | the                  date that is six months prior to the end of the performance period,                  with                  respect to an award of Performance Shares that qualifies as                  Performance-Based Compensation and that is based on services performed                  over a period of at least 12 months; or |
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|   | (ii) | the                  June 30 that falls within the calendar year to which Annual Incentive                  Compensation relates (or the date six months prior to the end of                  the                  performance period, with respect to Annual Incentive Compensation                  that is                  not based on a calendar year), provided that such Annual Incentive                  Compensation qualifies as Performance-Based Compensation that is                  based on                  services performed over a period of at least 12 months;                  or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | to                  the extent that the awarded Performance Shares or the Annual Incentive                  Compensation are not Performance-Based Compensation that is based                  on                  services performed over a period of at least 12 months, the later                  of (A)                  the December 31 immediately prior to the year in which the services                  on                  which the Performance Shares or Annual Incentive Compensation is                  based are                  to be performed, or (B) the date the Participant first became an                  Eligible                  Employee |
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*Participant        Has Not Satisfied MSOR.*

|   | (i) | If                  a Participant has not satisfied his or her MSOR on or before the                  Determination Date applicable to Performance Shares that have been                  awarded                  to such Participant, the Participant’s Career Share Account shall be                  credited with the number of Shares or Share Equivalents that become                  earned                  and Vested (reduced, however, to the extent of any Applicable Tax                  Payments) by the Participant as a result of the award of such Performance                  Shares; and |
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|   | (ii) | If                  a Participant has not satisfied the applicable MSOR on or before                  the                  Determination Date that falls after the final year of the Participant’s                  MSOR Window Period, the Participant’s Career Share Account shall be                  credited with the number of Shares or Share Equivalents, as appropriate,                  attributable to 25% (50%, effective beginning January 1, 2006)                  of the                  Annual Incentive Compensation that becomes earned and Vested by                  the                  Participant. |
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*Participant        Has Satisfied MSOR.*

*Cash        or Stock.*

*Timing        and Form of Distribution.*

|   | (1) | *Form                  of Distribution*.                  The Company shall cause the Participant to be paid the full amount                  credited to his or her Active Career Share Account 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 |
|--------|------|----------------------------------------------------|

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

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

|   | (2) | *Effective                  Election*.                  For this purpose, a Participant’s election with respect to the                  distribution of his or her Career Share Account 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) or (iii), below, as may be                  applicable: |
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|   | (i) | Submitted                  no later than the first Determination Date after June 30, 2006                  with                  respect to a Participant who had neither a 12/10/2003 Performance                  Share                  Award nor any amount credited to his Career Share Account as of                  June 30,                  2006; or |
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|   | (ii) | Submitted                  during a 2006 Distribution Election Period that is applicable to                  the                  Participant, but only with regard to the distribution election                  form last                  submitted by such Participant before the expiration of that period;                  or |
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|   | (iii) | 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                  Career Share Account other than an effective distribution election                  submitted as part of the 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)(iii) to change the timing or form of distribution that                  is then                  in effect with respect to the Participant’s Career Share Account (i.e.,                  the Participant is not submitting an election with his initial                  applicable                  Determination Date [(B)(i)] nor during the applicable 2006 Distribution                  Election Period [(B)(ii)], the newly selected option must result                  in the                  further deferral of the first scheduled payment 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 7.1(b)(1) shall be treated as a single payment                  as of                  the first scheduled payment date. |
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|   | (D) | If                  the Participant is submitting the election pursuant to paragraph                  (b)(2)(B)(ii) to change the timing or form of distribution that                  is then in                  effect with respect to the Participant’s Career Share Account, 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) | For                  purposes of this Section 7.1(b), if a Participant’s effective distribution                  election form was submitted using the options that had been made                  available                  under the Plan as in effect prior to January 1, 2005 [i.e., as                  either (A)                  a single lump-sum payment, or in annual installment payments over                  not less                  than two nor more than ten years; (B) commencing within 60 days                  after the                  date of the Participant’s Termination or the first, second, third, fourth                  or fifth anniversary of the Participant’s Termination],                  then: |
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|   | (A) | If                  the Participant’s Termination occurs prior to the expiration of the 2006                  Distribution Election Period last applicable to the Participant,                  the                  Participant’s effective distribution election form shall be given full                  effect. Solely for purposes of this paragraph (3)(A), a participant’s                  distribution election form shall be considered effective notwithstanding                  the requirement of Section 7.1(b)(2)(B)(iii) (which requires that                  a form                  be submitted at least one year prior to the date of the Participant’s                  Termination), provided that such form had become effective prior                  to the                  Participant’s Termination in accordance with the terms applicable to such                  election form at the time it was submitted by the Participant;                  and |
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|   | (B) | If                  the Participant’s Termination occurs after the expiration of the last                  applicable 2006 Distribution Election Period, the Participant shall                  be                  considered to have elected the corresponding option as set forth in                  Schedule A attached to this Plan. |
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|   | (4) | If                  the provisions of Section 7.1(b)(3) are not applicable to a Participant                  and the Participant fails to submit an effective distribution election                  with regard to his Career Share Account that satisfies the requirements                  of                  Section 7.1(b)(2)(B)(i) (by his initial applicable Determination                  Date) or                  Section 7.1(b)(2)(B)(ii) (during an applicable 2006 Distribution                  Election                  Period), as applicable, by such Determination Date or the last                  day of the                  2006 Distribution Election Period, respectively, such Participant                  shall be                  considered to have elected a distribution of his or her Career                  Share                  Account in a single lump sum as of the First Date                  Available. |
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*“Election”        To Accelerate Payment of Career Shares Attributable to 12/10/2003 Performance        Share Award.*

*Avoiding        Violation of Applicable Law.*

|   | (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 9.2, 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 |
|--------|--------------------------------------------------------------|
|   |                                                         |
|   | By: /s/                  Genevieve A. Tuchow            |
|   | Genevieve                  A. Tuchow,                        |
|   | Vice                  President, Human Resources             |