Document:

ex10nuclear.htm

    NUCLEAR
KEY CONTRIBUTOR

    RETENTION
PLAN

    

    (As
Amended and Restated as of January 1, 2008)

    

    

    ARTICLE
I

    

    Establishment
and Purpose

    

    1.1           The
Company hereby amends and restates the Nuclear Key Contributor Retention Plan
effective as of January 1, 2008.  This Plan was originally established
by the Company effective May 1, 2000.

     

    1.2           The
purpose of the Nuclear Key Contributor Retention Plan is retain the services of
key employees who are very important to the ongoing performance of the Company
and of the D. C. Cook Nuclear Plant.

     

    ARTICLE
II

     

    Definitions

     

    As used herein the following words and
phrases shall have the following respective meanings unless the context clearly
indicates otherwise.

     

    (a)           “Account”
means the separate memo account established by the Company for each
Participant.

     

    (b)           “Award
Letter” means a letter setting forth the terms and conditions applicable to the
establishment of a Participant’s Account which shall include, but shall not be
limited to, the amount credited to a Participant’s Account and the time period
over which the amount credited to the Account shall vest.

     

    (c)           “Cause”
means and shall include, but is not limited to, the Participant’s theft or
destruction of Company property, the Participant’s willful breach or habitual
neglect of the duties that the Participant is required to perform, or the
Participant’s behavior or actions which are illegal and or
unethical.

     

    (d)           “Committee”
means the individuals holding the following offices within the Company; Chief
Executive Officer; Chief Financial Officer; Senior Vice President – Shared
Services; and the head of the Human Resources Department.

     

    (e)           “Company”
means, except as provided in Article 11, the American Electric Power Service
Corporation, a New York corporation, and any of its subsidiaries and
affiliates.

     

    (f)           “Comparable
Job” means a job at the same pay grade with the same or equivalent level of
responsibility.

     

    (g)           “Disability”
means a total and permanent disability as defined in the American Electric Power
System Retirement Plan as amended from time to time.

     

    (h)           “Fund”
means the investment options made available to participants in the Supplemental
Savings Plan.

     

    (i)           “Investment
Income” means with respect to a Participant’s Account the earnings, gains and
losses derived from the investment of the amount credited to a Participant’s
Account in a Fund or Funds.

     

    (j)           “Key
Employee” means a Participant who is classified as a “specified employee” at the
time of Termination in accordance with the policies adopted by the Committee in
order to comply with the requirements of Section 409A(a)(2)(B)(i) of the Code
and the guidance issued thereunder.

     

    (k)           “Participant”
means any full-time employee of the Company, who has been selected to
participate in the Plan.

     

    (l)           “Plan”
means this Nuclear Key Contributor Retention Plan.

     

    (m)           “Retirement”
means a Termination of employment after the Participant attains age 55 and has
completed five years of service with the Company.

     

    (n)           “Supplemental
Savings Plan” means the American Electric Power System Supplemental Retirement
Savings Plan, a non-qualified deferred compensation plan sponsored by the
Company, as amended from time to time.

     

    (o)           “Termination”
means termination of employment with the Company and its subsidiaries and
affiliates for any reason; provided that effective with respect to Participants
whose employment terminates on or after January 1, 2005, determinations as to
the circumstances that will be considered a Termination (including a disability
and leave of absence) shall be made in a manner consistent with the written
policies adopted by the Human Resources Committee from time to time to the
extent such policies are consistent with the requirements imposed under Code
409A(a)(2)(A)(i).

     

    ARTICLE
III

     

    Administration

     

    3.1           The
Committee shall administer the Plan.  The Committee shall have the
authority to interpret the Plan and to prescribe, amend and rescind rules and
regulations relating to the administration of the Plan, and all such
interpretation, rules and regulation shall be conclusive and binding on all
Participants.

     

    3.2           The
Committee may employ agents, attorneys, accountants, or other persons and
allocate or delegate to them powers, rights, and duties all as the Committee may
consider necessary or advisable to properly carry out the administration of the
Plan.

     

    3.3           If
the Committee determines that the occurrence of any merger, reclassification,
consolidation, recapitalization, stock dividend or stock split requires an
adjustment in order to preserve the benefits intended under the Plan, then the
Committee may, in its discretion, make equitable proportionate adjustments in
individual Fund Unit grants.

     

    ARTICLE
IV

     

    Eligibility
and Participation

     

    4.1           Eligibility
for participation in the Plan shall be limited to employees who, in the opinion
of the Committee, have the capacity for contributing in a substantial measure to
the successful performance of the D. C. Cook Nuclear Plant.  At the
sole discretion of the Committee an employee may become a Participant in the
Plan on or after May 1, 2000.

     

    4.2           The
Committee shall determine the amount to be credited to a Participant’s Account
and the credited amount shall be specified in the Participant’s Award
Letter.  As soon as practicable following a Participant’s selection,
the Committee shall provide the Participant with an Award Letter.

     

    ARTICLE
V

     

    Investment
of Credited Amounts

     

    5.1           The
initial contribution by the Company to a Participant’s Account shall be invested
in the Interest Bearing Account (formerly called the “AEP Fixed Income Fund”)
and shall remain in that Fund until such time that the Participant elects to
invest the initial contribution in a different Fund or Funds.  The
Participant may change the selected Funds by notifying the Company or the
recordkeeper retained by the Company.  Any change in the Funds
selected by the Participant shall be implemented as soon as
practicable.

     

    5.2           A
Participant may elect to transfer all or a portion of the amount credited to the
Participant’s Account from any Fund or Funds to any other Fund or Funds by
giving notice to the Company or the recordkeeper retained by the
Company.  Transfers between Funds may be made in any whole percentage
or dollar amounts and shall be implemented as soon as possible.

     

    5.3           The
Funds shall be valued daily at their fair market value and each Participant’s
Account shall be valued daily at its fair market value.  The fair
market value calculation for a Participant’s Account shall be made after all
Investment Income and Fund transfers for the day are recorded.

     

    5.4           If
a Participant receives a payment of a portion of the amount credited to the
Participant’s Account in accordance with Article VII, the payment shall be taken
pro-rata from the Funds the Participant’s Account is then invested
in.

     

    5.5           The
Plan is an unfunded non-qualified deferred compensation plan and therefore the
amounts credited to a Participant’s Account and the Participant’s investment of
the credited amounts in the Fund or Funds selected by the Participant are memo
accounts that represent general, unsecured liabilities of the Company payable
exclusively out of the general assets of the Company.

     

    ARTICLE
VI

     

    Vesting

     

    6.1           Except
as provided in section 6.2, amounts credited to a Participant’s Account shall
vest after a set term as specified in the Award Letter.  A Participant
will forfeit any unvested Fund Units if the participant voluntary resigns before
Retirement or Disability or if the Participant is terminated for
Cause.

     

    6.2           Fund
Units that are not vested in accordance with section 6.1 shall become fully
vested:

     

    (a)           Upon
the Retirement of the Participant,

     

    (b)           Upon
the Participant’s Disability,

     

    (c)           If
the Company ceases or restructures its nuclear operations and the Participant’s
position with the Company is Terminated, or

     

    (d)           If
there is a change in control of the Company’s nuclear operations such that the
Company does not have primary management or operation responsibility for the
D.C. Cook Nuclear Plant, or

     

    (e)           If
the Company is part of a consortium or joint venture the purpose of which is to
operate several nuclear electric generation plants and the Company does not have
a controlling interest in the consortium or joint venture, or

     

    (f)           If
as a result of a transaction described in (c), (d) or (e) the Participant’s
position is terminated and the Company does not offer a Comparable Job to the
Participant.

     

    ARTICLE
VII

     

    Determination
and Payment

     

    7.1           The
Participant shall receive a lump sum cash distribution of the vested portion of
the Participant’s Account within ten days after the vesting date specified in
the Award Letter, unless the Participant elects to defer payment of the vested
portion of the Participant’s Account as provided in section 7.2.  The
lump sum cash payment shall be calculated on the basis of the market value of
the Fund or Funds the Participant’s Account is invested in as of the day the
Participant’s Account becomes vested.

     

    7.2           So
long as a Participant currently is not participating in a deferred compensation
plan that is considered to be in the same category as this Plan under the plan
aggregation rules of Treasury Regulation Section 1.409A-1(c)(2) or any
subsequent guidance, the Participant, within 30 days of becoming a Participant
in this Plan, may make an election to defer the cash payment of the amounts
credited in the Account as they become vested.  Notwithstanding the
foregoing, effective December 31, 2000, no employee shall be eligible to become
a new Participant in this Plan or make elections under this Plan.  The
vested amounts may be deferred for one or more years.  However, if the
Participant’s deferral period extends beyond the Participant’s Retirement date,
the payment of the deferred amounts must commence no later than one year after
the Participant’s date of Retirement.  Except as otherwise specified
in Section 7.3, upon the expiration of the deferral period, the deferred amounts
shall be paid in a lump sum or over a period of years, not to exceed ten years,
as elected by the Participant.  The deferred amounts shall continue to
be invested in the Fund or Funds as selected by the Participant as provided in
Article V.  The cash payment of the deferred amounts shall be
calculated on the basis of the market value of the Fund or Funds the deferred
amounts are invested in as of the date the deferred amounts are to be paid to
the Participant.

     

    7.3           (a)           If
a Participant’s employment with the Company Terminates before Retirement or
Disability, then notwithstanding any election that the Participant made under
Section 7.2, the Participant’s Account shall be paid as a lump sum within 10
days of the Participant’s Termination.

     

    (b)           Notwithstanding
any election that the Participant made under Section 7.2 or the lump sum payment
required by paragraph (a) of this Section 7.3, if a Participant’s payment under
this Plan is triggered by the Termination of such Participant and if at the time
of Termination such Participant is a Key Employee, the payments to such
Participant shall not be triggered until the earlier of (A) the first day of the
seventh (7th) month
after the Participant’s Termination; or (B) the date of the Participant’s
death.

     

    (c)           Notwithstanding
any other provision of this Plan to the contrary, 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.

     

    ARTICLE
VIII

     

    Death

     

    8.1           In
the event a Participant dies prior to the complete payment of the Participant’s
vested Fund Units, the amount owning to the Participant shall be paid to the
Participant’s spouse if the spouse is then living.  If the Participant
is not married at the time of death, the amount owing to the Participant shall
be paid to the Participant’s estate.

     

    Article
IX

     

    Taxes
and Tax Treatment

     

    9.1           The
Company shall withhold federal, state and local income taxes, Social Security
taxes and Medicare Taxes from any distribution hereunder to the extent that such
taxes are then payable.

     

    ARTICLE
X

     

    Amendment
or Termination

     

    10.1           The
Committee shall have the right, authority and power to alter, amend, modify,
revoke or terminate the Plan.

     

    10.2           No
amendment or termination of the Plan shall directly or indirectly deprive any
current or former Participant of all or any portion of any benefits earned up to
the date of the amendment or termination of the Plan.

     

    ARTICLE
XI

     

    Change
In Control

     

    11.1           Notwithstanding
any provisions of this Plan to the contrary, if a Change in Control of the
Company occurs, all Fund Unit grants awarded to the Participants and not then
vested shall be deemed to be fully vested as of the date of the Change in
Control.  Payments of the Fund Units shall be made in cash within
three months after the Change in Control.  The cash payment shall be
calculated on the basis of the average of the Fair Market Value of the Fund
Units as of the date of the Change in Control.

     

    11.2           For
purposes of this Article XI; the term “Company” shall mean the American Electric
Power Company, Inc., a New York corporation and it subsidiaries.  All
references to the term Company in other Articles of this Plan shall have the
meaning as provided in Article II (d).

     

    11.3           A
“Change In Control” of the Company shall be deemed to have occurred if and as of
such date that (i) any “person” or “group” (as such terms are used in Section
13(d) and 14(d) of the Securities Exchange Act of 1934 (“Exchange Act”)), other
than any Company owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of the
Company or a trustee or other fiduciary holding securities under any employee
benefit plan of the Company, becomes “beneficial owner” (as defined in rule
13d-3 under the Exchange Act), directly or indirectly, of more than one-third
(1⁄3) of the then outstanding voting stock of the Company; or (ii) the
consummation of a merger or consolidation of the Company with any other entity,
other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least two-thirds (2⁄3) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or (iii) the
consummation of the complete liquidation of the Company or the sale or
disposition by the Company (in one transaction or a series of transactions) of
all or substantially all of the Company’s assets.

     

    ARTICLE
XII

     

    Miscellaneous

     

    12.1           Nothing
in this Plan shall interfere with or limit in any way the right of the Company
to terminate any Participant’s employment at any time, nor confer upon a
Participant any right to continue in the employ of the Company.

     

    12.2           In
the event the Committee shall find that a Participant is unable to care for his
or her affairs because of illness or accident, the Committee may direct that any
payment due the Participant be paid to the duly appointed legal representative
of the Participant, and any such payment so made shall be a complete discharge
of the liabilities of the Plan.

     

    12.3           The
Company intends the following with respect to this Plan: (1) Section 451(a) of
the Code would apply to the Participant's recognition of gross income as a
result of participation herein; (2) the Participants will not recognize gross
income as a result of participation in the Plan unless and until and then only
to the extent that distributions are received; (3) the Company will not receive
a deduction for amount credited to any Account unless and until and then only to
the extent that amounts are actually distributed; (4) the provisions of Parts 2,
3, and 4 of Subtitle B of Title I of ERISA shall not be applicable; and (5) the
design and administration of the Plan are intended to comply with the
requirements of Section 409A of the Code, to the extent such section is
effective and applicable to amounts deferred hereunder.  However, no
Eligible Employee, Participant, Former Participant, beneficiary or any other
person shall have any recourse against the Company, the Committee or any of
their affiliates, employees, agents, successors, assigns or other
representatives if any of those conditions are determined not to be
satisfied.

     

    12.4           The
Plan shall be construed and administered according to the applicable provisions
of ERISA and the laws of the State of Ohio.

     

    12.5           Neither
a Participant nor any other person shall have any right to sell, assign,
transfer, pledge, mortgage or otherwise encumber, transfer, alienate or convey
in advance of actual receipt, the amounts, if any, payable under this
Plan.  Such amounts payable, or any part thereof, and all rights to
such amounts payable are not assignable and are not transferable.  No
part of the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other
person.  Additionally, no part of any amounts payable shall, prior to
actual payment, be transferable by operation of law in the event of a
Participant’s or any other person’s bankruptcy or insolvency or be transferable
to a spouse as a result of a property settlement or otherwise, except that if
necessary to comply with a “qualified domestic relations order,” as defined in
ERISA Section 206(d), pursuant to which a court has determined that a spouse or
former spouse of a Participant has an interest in the Participant’s benefits
under the Plan, the Committee shall distribute the spouse’s or former spouse’s
interest in the Participant’s benefits under the Plan to such spouse or former
spouse in accordance with the Participant’s election under this Plan as to the
time and form of payment.

     

    

     

    American
Electric Power Service Corporation has caused this amendment and restatement of
the Nuclear Key Contributor Retention Plan to be signed as of this 31st day of
December, 2008.

    

    
      
        	 
      	
                AMERICAN
      ELECTRIC POWER SERVICE CORPORATION

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:  /s/ Genevieve A.
      Tuchow  

              

      

    

    
      	
               
      

            	
              Genevieve
      A. Tuchow, Vice President, Human
Resourcesex10restrictedunitaward.htm

    AMENDMENT

     

    TO
CERTAIN RESTRICTED STOCK UNIT AWARD AGREEMENTS

     

    ISSUED
UNDER THE

     

    AMERICAN
ELECTRIC POWER SYSTEM

    LONG-TERM
INCENTIVE PLAN

    

    This
Amendment is made to the restricted stock unit award agreements (each, an
“Agreement”) furnished to <Name> (referred to in
this Amendment as “you”), the undersigned, by American Electric Power Company,
Inc. (“AEP”) that bear the following grant dates for the indicated number of
restricted stock units:

    

    
      	
              Grant
      Date

            	
              Number
      of Stock Units Granted

            
	 
      	 
      
	 
      	 
      

    

    

    By
agreeing to this Amendment, AEP and you intend that any deferral of compensation
that is subject to the requirements of section 409A of the Internal Revenue Code
pursuant to each Agreement comply with such requirements.  This
Amendment does not change the Vesting Dates listed in each Agreement, but
clarifies the accelerated vesting provisions of each Agreement and otherwise
amends and restates the remaining terms and provisions of each Agreement to read
as follows:

    

    “Restricted
Stock Units

    This
award agreement entitles you to the aggregate number of Restricted Stock Units
specified above ("RSUs") each of which, if and when it vests, will convert to a
single share of AEP's Common Stock, $6.50 par value.  Upon vesting,
RSUs are converted to AEP Common Stock and delivered to you in accordance with
the other terms and provisions of this Agreement.  RSUs have no voting
rights and are not entitled to receive any dividend declared on AEP Common
Stock.  However, RSUs are entitled to additional RSUs (“Dividend
Equivalents”) of an equal value to dividends paid on AEP Common Stock, as
described below.

    

    Dividend
Equivalents

    Dividend
Equivalents on outstanding RSUs are applied as additional RSUs.  The
number of additional RSUs awarded due to dividends is calculated as the value of
the dividend for a number of shares of AEP common stock equal to the number of
outstanding RSUs divided by the closing price of AEP Common Stock on the
dividend payment date.

    

    No
additional RSUs will be awarded as Dividend Equivalents after conversion of the
related RSUs into Common Stock.  See Conversion of Vested Stock
Units and Delivery of Shares, below.

    

    Vesting of Restricted Stock
Units

    Your RSUs
(other than Dividend Equivalents) shall vest, subject to your continuous AEP
employment through the vesting date, in accordance with the vesting schedule as
set forth in each Agreement, except as otherwise provided for in this
Amendment.  See the sections of this Amendment entitled Accelerated Vesting
and Vesting of
Dividend Equivalents, below.

    

    Accelerated Vesting of
Restricted Stock Units (other than Dividend Equivalents)

    RSUs
(other than Dividend Equivalents) may vest earlier than the dates shown in the
Vesting Schedule, above, as follows:

    

    Retirement:  As of
your Retirement Eligibility Date, the RSUs, to the extent outstanding but not
vested, shall vest; provided, however, such vested units shall not convert to
AEP Common Stock nor be delivered until the applicable Retirement Payment
Date.

    

    Severance:  As of
your Severance Date, a fractional portion of your outstanding but non-vested
RSUs, shall vest. The portion of the
outstanding, non-vested RSUs that vest under this provision is determined as
follows:

     

    The
number of complete calendar months between (i) the date your employment with AEP
terminates as the direct result of the Triggering Event and (ii) the Vesting
Date that immediately precedes such date your employment terminates (or if you
can and do incur such a termination of employment prior to any Vesting Date and
one year after the Grant Date, the Grant Date specified with respect to such
Agreement);

     

    Divided
by

     

    The
number of complete calendar months between (i) the Vesting Date that immediately
precedes the date your employment with AEP terminates as the direct result of
the Triggering Event (or if you can and do incur such a termination of
employment prior to any Vesting Date and at least one year after the Grant Date,
the Grant Date specified with respect to such Agreement); and (ii) the Vesting
Date that immediately follows the date your employment with AEP terminates as
the direct result of the Triggering Event;

     

    Multiplied
by

     

    The
number of currently outstanding, non-vested RSUs that would have vested had you
remained continuously employed by AEP through the Vesting Date immediately
following the date your employment with AEP terminates as the direct result of
the Triggering Event.

    

     

    RSUs that
vest as a result of your severance shall be converted to AEP Common Stock and
delivered to you as of your Severance Date in accordance with the section of
this Amendment entitled Delivery of Shares of Common
Stock, below.

    

    Death:  Upon your
death prior to the termination of your employment with AEP, the RSUs, to the
extent outstanding but not vested, shall vest, be converted into AEP Common
Stock and delivered to your designated beneficiaries under the LTIP (or if you
have not effectively designated any beneficiary under the LTIP, to your estate)
as soon as administratively practicable following your death.

    

    Change In
Control:  Upon a Change in Control prior to the termination of
your employment with AEP, the RSUs, to the extent outstanding but not vested,
shall vest, be converted into AEP Common Stock and delivered as of the date of
the Change in Control in accordance with the section of this Amendment entitled
Delivery of Shares of
Common Stock, below.  During the sixty (60) day period from and
after such Change in Control you shall have the right to exchange the AEP Common
Stock converted from such RSUs as the result of the Change In Control for cash
in an amount equal to the Change in Control Price Per Share multiplied by the
number of shares of AEP Common Stock as to which you are exercising such right
by giving notice to AEP within such sixty (60) day period.  Such cash
payment shall be made within thirty (30) days of such notice and the release of
all rights with respect to such shares of AEP Common Stock, but no later than
the March 15 immediately following the calendar year of the Change in
Control.

    

    Dividend
Equivalents vest separately from the underlying RSUs.  See the section
of this Amendment entitled Vesting of Dividend
Equivalents, below.

    

    Other
Terminations

    Except as
described in the following sentence involving circumstances that may give rise
to a Severance Date for you, upon the termination of your employment with AEP
for any reason prior to your Retirement Eligibility Date, your Severance Date,
your death or a Change in Control, any non-vested RSUs and non-vested Dividend
Equivalents shall be forfeited, and you shall have no rights or interests in or
with respect to such non-vested RSUs.  If your employment with AEP is
terminated under circumstances that may give rise to a Severance Date for you,
to the extent your non-vested RSUs and non-vested Dividend Equivalents do not
vest by reason of a Severance Date for you, they shall be forfeited as of the
date it becomes reasonably certain that such Severance Date shall not occur, but
no later than 45 days after the termination of your employment with
AEP.

    

    Vesting of Dividend
Equivalents

    Additional
RSUs awarded as Dividend Equivalents vest upon your continuous AEP employment
through the last Vesting Date specified in the Vesting Schedule in such
Agreement (the “Final Vesting Date”); provided, however, that:

     

    
      	
               
      

            	
              •

            	
              Dividend
      Equivalents that are outstanding as of your Retirement Eligibility Date
      shall vest as of your Retirement Eligibility Date, if such date is earlier
      than the Final Vesting Date;

            

    

    
      	
               
      

            	
              •

            	
              Dividend
      Equivalents credited after your Retirement Eligibility Date shall be
      vested at the time they are
awarded;

            

    

    
      	
               
      

            	
              •

            	
              Dividend
      Equivalents that are outstanding as of your Severance Date (to the extent
      they relate to RSUs that either have previously vested or that vest as of
      your Severance Date) shall vest as of your Severance Date if you incur a
      Severance Date upon or following the involuntarily termination of your AEP
      employment and prior to both your Retirement Eligibility Date and Final
      Vesting Date;

            

    

    
      	
               
      

            	
              •

            	
              Dividend
      Equivalents that are outstanding as of your death shall vest as of the
      date of your death if you die while continuously employed by AEP, but
      prior to both your Retirement Eligibility Date and Final Vesting Date;
      and

            

    

    
      	
               
      

            	
              •

            	
              Dividend
      Equivalents that are outstanding shall vest as of the date of a Change in
      Control if the Change in Control occurs prior to the termination of your
      employment with AEP.

            

    

    

    Definitions

    In
addition to the terms defined elsewhere in this Agreement, the following shall
be defined terms when used in this Agreement:

    

     “AEP” means American Electric
Power Company, Inc.; a New York Company; and its subsidiaries and
affiliates.

    

    “Change in Control Price Per
Share” means (i) if the Change in Control is the result of a tender or
exchange offer for, merger of, or sale or disposition of all or substantially
all of the assets of, AEP, the consideration per share of Common Stock received
by the shareholders in connection with such transaction, or, if (i) is not
applicable, (ii) the highest Fair Market Value of a share of Common Stock during
the ninety (90) day period prior to and including the date of a Change in
Control. To the extent that the consideration paid in any such transaction
described in (i) above consists all or in part of securities or other non-cash
consideration, the value of such securities and other non-cash consideration
shall be the fair market value as determined by such reasonable methods or
procedures as shall be established by the Committee.

    

    “Key Employee” means those
employees those employees specified in accordance with policies adopted by AEP
from time to time for purposes of complying with the requirements of Section
409A(a)(2)(B)(i) of the Internal Revenue Code.  As of the date of this
Amendment, such policies specify that Key Employees for the period February 1
through the next following January 31 are those employees who, as of the
December 31 immediately preceding the February 1 beginning date either (a) held
the office of Vice President or higher with an AEP System company; or (b) were
employed by an AEP System company at exempt salary grade 34 or
higher.

    

    "Retirement Eligibility Date"
means the date prior to your termination of employment with AEP that all of the
following conditions are satisfied: (i) You have attained age 55, (ii) you have
completed of at least five (5) years of service with AEP; and (iii) you have
remained continuously employed with AEP for one (1) year from the Grant Date
specified in such Agreement.

    

    “Retirement Payment Date”
means the earlier of the applicable Vesting Date for such units or the date of
your termination of employment with AEP and all Subsidiaries; provided, however,
if you are a Key Employee as of the date of your termination of employment, the
date that is six (6) months after the date of your termination of employment
shall be substituted for the date of your termination of
employment.

    

    “Severance Date” means the
date that all of the following conditions are satisfied: (i) you were
continuously employed with AEP for one (1) year from the Grant Date under such
Agreement, (ii) your employment with AEP is involuntarily terminated prior to
your Retirement Eligibility Date as the direct result of a Triggering Event,
(iii) on or before the date your employment with AEP is terminated, you do not
receive an offer of employment with the purchaser or successor employer; (iv) on
or before the date your employment with AEP is terminated, you do not receive an
offer of employment with AEP that is at the same or higher base pay (determined
without regard to overtime pay, bonuses, premium payments, incentive
compensation or any other form of additional compensation) and does not require
relocation of your primary residence; and (v) you are presented with and then
timely sign and return the Severance and Release of All Claims Agreement within 45
days after your employment with AEP is terminated.  For purposes of
clause (ii), your employment will not be considered terminated as the direct
result of a Triggering Event if (A) your employment terminates following the
expiration of a specific term of employment previously identified between you
and AEP, regardless of the reason for not extending or renewing your employment,
or (B) you fail to remain employed with AEP up to and including the date
established by AEP for the termination of your employment pursuant to the
Triggering Event, or (C) AEP does not present you with a Severance and Release
of All Claims Agreement on or before
the date your employment with AEP is terminated.  AEP retains sole
discretion over any determination of whether and when it will present you with a
Severance and Release of All Claims Agreement and the terms of any such
agreement.

    

    “Severance and Release of All Claims
Agreement” means a Severance and Release of All Claims Agreement in a
form acceptable to AEP or its Subsidiary, whereby you agree to waive and release
AEP, all AEP System companies and all of their respective officers, directors,
employees, agents and representatives of and from any and all
claims.

    

    “Triggering Event” means the
restructuring, consolidation, downsizing, closing, sale and/or divestiture of
AEP or part thereof under circumstances that are not a Change in
Control.

    

    “Vesting Date” means each date
set forth in the Vesting Schedule of such Agreement.

    

    Restricted Stock Units Are
Nontransferable

    No RSUs
or Dividend Equivalents shall be sold, exchanged, pledged, transferred,
assigned, or otherwise encumbered, hypothecated or disposed of by you (or any
beneficiary) other than by testamentary disposition by you or by the laws of
descent and distribution.

    

    Conversion of Vested Stock
Units and Delivery of Shares

    

    Conversion to Common
Stock:  Each RSU and Dividend Equivalent shall be converted
into a single share of AEP Common Stock upon vesting or, if you satisfy the
Retirement Eligibility Date conditions, your Retirement Payment
Date.  Shares of AEP Common Stock shall be delivered in accordance
with the section of this Amendment entitled Delivery of Shares of Common
Stock.  Fractional RSUs that constitute less than a single
share may be converted to cash at AEP’s option.

    

    Delivery of Shares of Common
Stock:  The shares of Common Stock resulting from the
conversion of your vested RSUs and Dividend Equivalents, shall be delivered to
you or to an account set up for your benefit with a broker/dealer designated by
the Company (the “Broker/Dealer Account”) within a reasonable time (generally 3
days) after such shares are converted as described in the section of this
Amendment entitled Conversion to Common
Stock, above.  Such shares shall be delivered on or before
March 15 of the calendar year following the calendar year during which the RSUs
and Dividend Equivalents became vested; except that to the extent such shares
are to be delivered in connection with your Retirement Payment Date, such shares
shall be delivered within 60 days after your Retirement Payment
Date.

    

    AEP
Common Stock and all LTIP participants remain subject to all applicable legal
and regulatory restrictions such as insider trading restrictions and black-out
periods.

    

    Tax
Withholding

    AEP shall
withhold any and all applicable income, employment and other taxes required to
be withheld in connection with the RSUs described in each
Agreement.  AEP may reduce the number of vested RSUs credited to you
or the number of shares of Common Stock delivered to you to satisfy such tax
withholding obligation.  The amount of such reduction shall be based
upon the Fair Market Value of AEP Common Stock as of the applicable Vesting Date
or Retirement Payment Date; provided, however, that any reduction to your vested
RSUs for applicable tax withholding shall not exceed such limits as may be
applicable to comply with the requirements of Code Section 409A.

    

    LTIP Incorporated By
Reference

    This
Amendment and each Agreement shall be subject in all respects to the terms and
provisions of the LTIP, all the terms and provisions of which are made a part of
and incorporated in each Agreement (as if they were expressly set forth
therein).  In the event of any conflict between the terms of an
Agreement (as amended by this Amendment) and the terms of the LTIP, the terms of
the LTIP shall control.  Any capitalized term not defined in this
Amendment or an Agreement shall have the same meaning as is ascribed thereto
under the LTIP.

    

    No Special Employment
Rights

    Nothing
contained in the LTIP or this Amendment or any Agreement shall be construed or
deemed by any person under any circumstances to bind the Company to continue
your employment for the Vesting Period or for any other period.

    

    Termination

    The RSUs
subject to this Amendment or any Agreement shall terminate and be of no force or
effect in accordance with the terms and provisions of the relevant sections of
this Amendment entitled Other Terminations,
above.

    

    Notice

    Any
Notice that may be required or permitted under this Amendment or any Agreement
shall be in writing, and shall be delivered in person or via fax transmission,
overnight courier service or certified mail, postage prepaid, properly addressed
as follows:

    

    Notice to AEP:  If
such notice is to AEP, to the attention of the Executive Compensation
Department, American Electric Power, 1 Riverside Plaza, Columbus, OH 43215, or
at such other address as AEP, by notice to you, may designate in writing from
time to time.

    

    Notice to You:  If
such notice is to you, at the address as shown on the records of AEP or at such
other address as you, by notice to AEP, may designate in writing from time to
time.”

    

    IN
WITNESS WHEREOF, AEP has caused this Amendment to be executed by its duly
authorized officer as of October 17, 2008, and you have hereunto set your hand
as of the date set forth below your signature.

    

    AMERICAN
ELECTRIC POWER COMPANY, INC.

    

    By: /s/ Michael G.
Morris

         Michael
G. Morris

         Chairman,
President and Chief Executive Officer

    

    

    

    ______________________________________

    <Name>

    

    __________________________

    Date

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