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

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

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

|   | (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 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                  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 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, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

|   | AMERICAN                  ELECTRIC POWER SERVICE CORPORATION |
|--------|--------------------------------------------------------------|
|   |                                                         |
|   | By: /s/                  Genevieve A. Tuchow            |
|   | Genevieve                  A. Tuchow                         |
|   | Vice                  President, Human Resources             |

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