Document:

Document

Exhibit 10.3

American Electric Power Company, Inc.
Stock Unit Accumulation Plan
For Non-Employee Directors
(As Amended Effective October 1, 2020)

Article 1
Purpose

The purposes of this American Electric Power Company, Inc. Stock Unit Accumulation Plan For Non-Employee Directors (the “Plan”) are to enable the Company to attract and retain qualified persons to serve as Non-Employee Directors, to solidify the common interests of its Non-Employee Directors and shareholders by enhancing the equity interest of Non-Employee Directors in the Company, and to encourage the highest level of Non-Employee Director performance by providing such Non-Employee Directors with a proprietary interest in the Company’s performance and progress by providing a portion of the compensation of the Non-Employee Directors in deferred Stock Units.

Article 2
Effective Date

The Plan became effective as of January 1, 1997.  The changes made by this amendment and restatement of the Plan were approved by the Board at its meeting held on September 22, 2020 (the “Adoption Date”) and generally take effect as of the Adoption Date.

Article 3
Definitions

Whenever used in the Plan, the following terms shall have the respective meanings set forth below:

3.1    “Account” means, with respect to each Participant, the Participant’s separate individual account established and maintained for the exclusive purpose of accounting for the Participant’s awards under the Plan.  The Account shall consist of two (2) separate sub-accounts:  a Stock Unit Account and an Investment Account.

3.2    “Beneficiary” means, with respect to each Participant, the recipient or recipients designated by the Participant who are, upon the Participant’s death, entitled in accordance with the Plan’s terms to receive the benefits to be paid with respect to the Participant.

3.3    “Board” means the Board of Directors of the Company.

3.4    “Cash Retainer” means the designated annual cash retainer, paid quarterly, for Non-Employee Directors established from time to time by the Board as annual compensation for services rendered, exclusive of compensation for service as a member of any 

committee designated by the Board or in connection with any meeting of the Board or special assignment, and exclusive of reimbursements for expenses incurred in performance of service as a Director.

3.5    “Code” means the Internal Revenue Code of 1986, as amended.

3.6    “Committee” means the Committee on Directors and Corporate Governance of the Board.

3.7    “Common Stock” means the common stock, $6.50 par value, of the Company.

3.8    “Company” means American Electric Power Company, Inc., a New York corporation, and any successor thereto.

3.9    “Contributions” means contributions made by the Company to a Participant’s Account pursuant to Article 4.

3.10    “Director” means an individual who is a member of the Board.

3.11    “Equity Retainer” means the designated annual stock retainer, payable quarterly, for Non-Employee Directors established from time to time by the Board as equity compensation for services rendered.  An Equity Retainer may be in the form of Stock Units pursuant to Article 4(a) or as an amount credited to the AEP Stock Fund pursuant to Article 4(b).

3.12    “First Date Available” means (a) with respect to Specified Directors, the later of (i) the date that is eighteen (18) months following the Adoption Date, or (ii) the date that is six (6) months after the date of the Participant’s Termination; and (b) with respect to all other Participants, the date of the Participant’s Termination.

3.13    “Fund” means the same investment options made available to participants in the American Electric Power System Incentive Compensation Deferral Plan, as revised from time to time.  

3.14    “Investment Account” means that portion of a Participant’s Account attributable to Contributions made by the Company pursuant to Article 4(b).

3.15    “Investment Income” means the earnings, gains and losses that would be attributable to the investment of the Investment Account in a Fund or Funds.

3.16    “Market Value” means the closing price of the Common Stock, as reported on the NASDAQ Stock Market LLC on the date in question or, if the Common Stock shall not have been traded on such date or if the NASDAQ Stock Market LLC is closed on such date, then the first day prior thereto on which the Common Stock was so traded.

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3.17    “Non-Employee Director” means any person who serves on the Board and who is not an officer of the Company or employee of its Subsidiaries.

3.18    “Participant” means any Non-Employee Director who has received an Equity Retainer award.

3.19    “Retainer” means Cash Retainer and Equity Retainer.

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

3.21    “Stock Unit” means a measure of value, expressed as a share of Common Stock, credited to a Participant under this Plan.  No certificates shall be issued with respect to such Stock Units, but the Company shall maintain a bookkeeping Account in the name of the Participant to which the Stock Units shall relate.

3.22    “Subsidiary” means any corporation in which the Company owns directly or indirectly through its Subsidiaries, at least 50 percent of the total combined voting power of all classes of stock, or any other entity (including, but not limited to, partnerships and joint ventures) in which the Company owns at least 50 percent of the combined equity thereof.

3.23    “Termination” means retirement from the Board or termination of service as a Director for any other reason.

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Article 4
Annual Equity Retainer Awards

The Equity Retainer shall be credited quarterly and shall equal the dollar amount of the Equity Retainer payable to the Participant.

(a)For the first twenty quarters of a Participant’s period of service as a Director, the Equity Retainer shall be contributed to the Participant’s Stock Unit Account in the form of Stock Units.  The number of such Stock Units to be credited quarterly shall be determined by dividing the amount of the Equity Retainer credited quarterly by the Market Value on such date.  The number of whole and fractional Stock Units will be computed to three decimal places.

(b)After the period described in Article 4(a), the Equity Retainer shall be contributed to the AEP Stock Fund maintained in the Participant’s Investment Account. 

Article 5
Investments and Adjustments

5.1    Stock Unit Account

(a)Dividends.  On each dividend payment date with respect to the Common Stock, the Stock Unit Account of a Participant, with Stock Units held pursuant to Article 4(a), shall be credited with an additional number of whole and fractional Stock Units, computed to three decimal places, equal to the product of the dividend per share then payable, multiplied by the number of Stock Units then credited to such Stock Unit Account, divided by the Market Value on the dividend payment date.

(b)Adjustments.  The number of Stock Units credited to a Participant’s Stock Unit Account pursuant to Article 4(a) shall be appropriately adjusted for any change in the Common Stock by reason of any merger, reclassification, consolidation, recapitalization, stock dividend, stock split or any similar change affecting the Common Stock.

5.2    Investment Account

(a)Investment of Contributions.  Contributions added to a Participant’s Investment Account shall be credited to the AEP Stock Fund and credited with earnings as if invested in the AEP Stock Fund.  

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(b)Changing Investments.  A Participant may elect to transfer all or a portion of the amounts credited to the Participant’s Investment Account from any Fund or Funds to any other Fund or Funds by providing notification in accordance with the Plan’s procedures.  Such transfers between Funds may be made in any whole percentage or dollar amounts and shall be implemented in accordance with the Plan’s procedures.

(c)Valuation of Account.  The balance of each Participant's Investment Account shall be determined daily based upon the fair market value of such Fund or Funds.  The fair market value calculation for a Participant's Investment Account shall be made after all distributions, Investment Income and transfers for the day are recorded.  A Participant’s Account, as adjusted from time to time, shall continue to be credited with Investment Income until the balance of the Investment Account is zero and no additional Contributions are anticipated for such Participant by the Committee.

Article 6
Payment of Stock Units

6.1    Manner of Payment Upon Termination

(a)All amounts credited to a Participant’s Stock Unit Account and all amounts credited to such Participant’s Investment Account shall be paid to the Participant in accordance with the Participant’s effective election as to such sub-account in one of the following forms

(i)A single lump sum distribution 
(A)as of the First Date Available; or
(B)as of the fifth anniversary of the First Date Available; or

(ii)In five (5) annual installments commencing
(A)as of the First Date Available; or
(B)as of the fifth anniversary of the First Date Available; or

(iii)In ten (10) annual installments commencing as of the First Date Available.

(b)For this purpose, a Participant’s election under Section 6.1 shall not be effective unless all of the following requirements are satisfied.

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

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(ii)The election is submitted timely.  For purposes of this Section 6.1(b)(ii), a distribution election will be considered “timely” only if it satisfies the applicable requirements:
(A)As to an election applicable to the Participant’s Stock Unit Account, any of (1), (2) or (3), as may be applicable
(1)Within 30 days after the beginning of his or her initial term of office as a Director; or
(2)During the 2007 Distribution Election Period, but only with regard to the last distribution election form submitted by such Participant during such a period as is applicable to that Participant.  For this purpose, the “2007 Distribution Election Period” shall be such period during which one or more Participants are given the opportunity to select among the options set forth in Section 6.1(a), provided that such period shall end no later than December 31, 2007 or, with respect to a particular Participant, such earlier date of such Participant’s Termination; or
(3)At least one year prior to the date of the Participant’s Termination.
(B)As to an election applicable to the Participant’s Investment Account, any of (1), (2) or (3), as may be applicable
(1)No later than the last day of the calendar year immediately preceding the commencement of the twenty-first quarter of the Participant’s period of service as a Director ; or
(2)During the 2012 Distribution Election Period, but only with regard to the last distribution election form submitted by such Participant during such a period as is applicable to that Participant.  For this purpose, the “2012 Distribution Election Period” shall be such period during which one or more Participants are given the opportunity to select among the options set forth in Section 6.1(a), provided that such period shall end no later than December 31, 2012; or

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(3)At least one year prior to the date of the Participant’s Termination.

(iii)Unless submitted under the terms and conditions described in Section 6.1(b)(ii)(A)(1) or (2) or (B)(1) or (2), the election makes a permissible change in the distribution option selected.  A change in the distribution option will be considered permissible for purposes of the immediately preceding sentence only if the new distribution election selects an option that results in the 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 6.1(a) shall be treated as a single payment as of the first scheduled payment date.

(iv)If the Participant is submitting the election pursuant to paragraph (b)(ii)(A)(2) 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 2007 if not for the new distribution election nor cause payments to be made in 2007 if not for the new distribution election.

(c)For purposes of Section 6.1(b), if a Participant’s effective distribution election form with respect to the participant’s Stock Unit Account 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 more than ten years; (B) commencing within 10 days after the date of the Participant’s Termination or up to five years after the Participant’s Termination], then:

(i)If the Participant’s Termination occurs prior to the expiration of the 2007 Distribution Election Period last applicable to the Participant, the Participant’s effective distribution election form shall be given full effect; and

(ii)If the Participant’s Termination occurs after the expiration of the 2007 Distribution Election Period last applicable to such Participant, the Participant shall be considered to have elected the corresponding option as set forth in Section 6.1(a).

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(d)If a Participant fails to submit an effective distribution election with regard to his Stock Unit Account or Investment Account that satisfies the requirements of Section 6.1(b)(ii)(A)(1) (upon commencement of initial term) or Section 6.1(b)(ii)(A)(2) or (B)(1) or (2) (during an applicable Distribution Election Period), as applicable, by the applicable due date, such Participant shall be considered to have elected a distribution of that portion of his or her Account in a single lump sum as of the First Date Available.

6.2    Manner of Payment Upon Death

Notwithstanding the Participant’s election, if a Participant dies while amounts remain credited to the Participant’s Account, the balance of the Account will be paid in a lump sum in cash as soon as reasonably practicable after the date of the Participant’s death to the Beneficiary or the Participant’s estate, as the case may be.

6.3    Determination of Cash Payments Attributable to Stock Units and Funds

The amount to be distributed pursuant to Section 6.1 or 6.2 shall be based upon the value of the Stock Units and Funds in the Participant’s Account determined as of the applicable distribution date (or, if that is not a business day, then as of the business day immediately prior thereto) and shall be paid to such Participant as soon as administratively practicable thereafter.  The value of Stock Units shall be calculated on the basis of the average of the Market Value of the Common Stock for the last 20 trading days prior to the applicable distribution date.

6.4    Avoiding Violation of Applicable Law 

Notwithstanding any provision of this Article to the contrary, payment to a Participant will be delayed at any time that the Company 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 Company reasonably anticipates that the making of such payment will not cause such violation.

Article 7
Beneficiary Designation

Each Participant shall be entitled to designate a Beneficiary or Beneficiaries (which may be an entity other than a natural person) who, following the Participant’s death, will be entitled to receive any payments to be made under Section 6.2.  At any time, and from time to time, any designation may be changed or cancelled by the Participant without the consent of any Beneficiary.  Any designation, change, or cancellation must be by written notice filed with the Company and shall not be effective until received by the Company.  Payment shall be made in accordance with the last unrevoked written designation of Beneficiary that has been signed by the Participant and delivered by the Participant to the Company prior to the Participant’s death.  If the Participant designates more than one Beneficiary, any payments under Section 6.2 to the Beneficiaries shall be made in equal shares unless the Participant has designated otherwise, in
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which case the payments shall be made in the proportions designated by the Participant.  If no Beneficiary has been named by the Participant or if all Beneficiaries predecease the Participant, payment shall be made to the Participant’s estate.

Article 8
Transferability Restrictions

The Plan shall not in any manner be liable for, or subject to, the debts and liabilities of any Participant or Beneficiary.  No payee may assign any payment due such party under the Plan.  No benefits at any time payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, attachment, garnishment, levy, execution, or other legal or equitable process, or encumbrance of any kind.

Article 9
Funding Policy

The Company’s obligations under the Plan shall be totally unfunded so that the Company or any Subsidiary is under merely a contractual duty to make payments when due under the Plan.  The promise to pay shall not be represented by notes and shall not be secured in any way.

Article 10
Change in Control

Notwithstanding any provision of this Plan to the contrary, if a “Change in Control” (as defined below) of the Company occurs, amounts credited to a Participant’s Account, whether vested or unvested and forfeitable, will be paid in a lump sum in cash to the Participant not later than 15 days after the date of the Change in Control.  For this purpose, the balance in the Stock Unit Account shall be determined by the higher of (a) the average of the Market Value of the Common Stock for the last 20 trading days prior to such Change in Control or (b) if the Change in Control of the Company occurs as a result of a tender or exchange offer or consummation of a corporate transaction, then the highest price paid per share of Common Stock pursuant thereto.  Any consideration other than cash forming a part or all of the consideration for the Common Stock to be paid pursuant to the applicable transaction shall be valued at the valuation price thereon determined by the Board.

In addition, the Company shall reimburse a Participant for the legal fees and expenses incurred if the Participant is required to seek to obtain or enforce any right to distribution.  In the event that it is determined that such Participant is properly entitled to a cash distribution hereunder, such Participant shall also be entitled to interest thereon at the prime rate of interest as published in The Wall Street Journal plus two percent from the date such distribution should have been made to and including the date it is made.  Notwithstanding any provisions of this Plan to the contrary, the provisions of this Article may not be amended by an amendment effected within three years following a Change in Control.

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A “Change in Control” means a change in control of the Company as provided under Section 409A(a)(2)(A)(v) of the Code.

Article 11
Administration

The Plan shall be administered by the Committee.  The Committee shall have the authority and discretion to interpret the Plan, and to prescribe, amend and rescind rules and regulations relating to the administration of the Plan, and all such interpretations, rules and regulations shall be conclusive and binding on all Participants.  The Committee may employ agents, attorneys, accountants, or other persons (who also may be employees of a Subsidiary) 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.

Article 12
Amendment and Termination

The Company, by resolution duly adopted by the Board, shall have the right, authority and power to alter, amend, modify, revoke, or terminate the Plan; except as provided in Article 10; and provided further, that no amendment or termination of the Plan shall adversely affect the rights of any Participant with respect to any amount then credited to such Participant’s Account, unless the Participant shall consent thereto in writing.

Article 13
Miscellaneous

13.1    No Right to Continue as a Director

Nothing in this Plan shall be construed as conferring upon a Participant any right to continue as a member of the Board.

13.2    No Interest as a Shareholder

Neither Stock Units nor credits to the AEP Stock Fund shall give a Participant any rights whatsoever with respect to shares of Common Stock.

13.3    No Right to Corporate Assets

Nothing in this Plan shall be construed as giving the Participant, the Participant’s designated Beneficiaries or any other person any equity or interest of any kind in the assets of the Company or any Subsidiary or creating a trust of any kind or a fiduciary relationship of any kind between the Company or any Subsidiary and any person.  As to any claim for payments due under the 
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provisions of the Plan, a Participant, Beneficiary and any other persons having a claim for payments shall be unsecured creditors of the Company or any Subsidiary.

13.4    Payment to Legal Representative for Participant

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 Participant’s duly appointed legal representative, and any such payment so made shall be a complete discharge of the liabilities of the Plan.

13.5    No Limit on Further Corporate Action

Nothing contained in the Plan shall be construed so as to prevent the Company or any Subsidiary from taking any corporate action which is deemed by the Company or any Subsidiary to be appropriate or in its best interest.

13.6    Governing Law

The Plan shall be construed and administered according to the laws of the State of New York to the extent that those laws are not preempted by the laws of the United States of America.

13.7    Headings

The headings of articles, sections, subsections, paragraphs or other parts of the Plan are for convenience of reference only and do not define, limit, construe, or otherwise affect its contents.

Signed this 25th day of September, 2020.

AMERICAN ELECTRIC POWER COMPANY, INC.

By  /s/ Thomas G. Berkemeyer
 Thomas G. Berkemeyer, Assistant Secretary
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Exhibit 10.4

SEVERANCE, STOCK AWARD, RELEASE OF ALL CLAIMS AND 
NONCOMPETITION AGREEMENT

This Severance, Stock Award, Release of All Claims and Noncompetition Agreement ("Agreement") is entered into by and between Lana L. Hillebrand, herein after referred to, together with her heirs, executors, administrators, successors, assigns and personal representatives, as "Employee", and American Electric Power Company Inc., hereinafter referred to, together with all its past, present and future affiliated, parent and/or subsidiary organizations and divisions, and all past, present and future officers, directors, members, employees and agents of each, in both their individual and representative capacities, as the "Company".  

In consideration of the promises set forth in this Agreement, Employee and the Company agree as follows:

1.         Termination of Employment; Resignation.  The parties acknowledge that Employee’s employment relationship with the Company will cease at the close of business on December 31, 2020 or such other date that Employee and the Company mutually agree (the “Termination Date”).  Pending the Termination Date, the Company reserves the right to change the responsibilities of Employee.  Employee hereby resigns effective at the close of business on the Termination Date, (a) as an employee of the Company, (b) to the extent she has not already then done so, from all Company boards, committees, and offices, including those of any parent, affiliate or subsidiary of the Company, and (c) from all administrative, fiduciary or other positions Employee may hold or have held relating to the Company.  The Company consents to and accepts all such resignations.  Employee agrees to make herself available for assigned duties and adhere to Company policy through and including the Termination Date.  Employee further agrees to execute a release comparable to that set forth in this Agreement following her Termination Date.

2.         Severance Payments.  The Company shall provide: 

(a)Employee (or Employee’s estate) a salary and bonus severance in the amount of $1,106,875 (the “Severance Amount”).   The Company shall pay the Severance Amount to Employee according to the following payment schedule:

(i)As of the first regular payroll date of the Company that coincides with or immediately follows the date that is six months after the Termination Date, a payment of $553,437.50; and

(ii)The balance of such Severance Amount shall be paid in 13 equal bi-weekly installments as of such number of subsequent regular payroll dates of the Company. 

Payment under this Section 2 shall be made by direct deposit, mailing to the last address provided by Employee to the Company or such other reasonable method as determined by the Company.  Each payment shall be subject to such deductions as required by law that is not deducted from other amounts paid or payable to Employee.

(b)If Employee timely executes and returns this Agreement and continues to provide services to AEP up to and including the Termination Date, prorated severance vesting shall apply to Employee’s outstanding Restricted Stock Units (“RSU”).  Severance vesting will also apply to Employee’s Performance Shares under the terms the applicable Performance Share Award Agreements, provided that employee works up to and including the Termination Date.  Any RSUs and Performance Shares that do not vest upon employment termination will be canceled.   All applicable tax withholding will apply to any RSU and Performance Share payments based on Employee’s last work location.  

(c)Employee (or her surviving covered dependents) will have the option to continue medical and dental coverage at a reduced rate for up to twelve (12) months (i) under COBRA or (ii) if Employee is eligible for AEP retiree medical and/or dental benefits as of his or her Employment Termination Date, under the terms of the applicable retiree medical and/or dental benefit plan, as amended from time to time; provided, however, that such reduced rate shall cease at such time as Employee (or surviving covered dependent) is eligible for medical coverage either through Medicare or some other public program or through subsequent employment, whichever comes first, and whether or not Employee or dependent actually enrolls for such coverage.  The reduced rate described in the immediately preceding sentence shall be the contribution rate charged by the Company to similarly situated active employees/dependents, as adjusted from time to time.  Employee (or surviving covered dependents) shall complete and return all required forms to the Company and the insurance carriers in order to receive the benefits described in this Section.  Employee (or surviving covered dependents) further agrees that she shall promptly notify the Company when an event as described in this paragraph 2(c) of this Agreement has occurred, which terminates Employee’s (or any surviving covered dependent’s) eligibility for continued benefit coverage or coverage at a reduced rate.  Such notification shall be directed to: American Electric Power Service Corporation, Human Resources Department, Attn: Payroll Manager, 1 Riverside Plaza, Columbus, OH 43215, 1-888-AEP-BENE (1-888-237-2363.)

3.         Other Payments.  

(a)Stock Award under LTIP. The Company shall deliver to Employee $500,000 in unrestricted shares of Common Stock of American Electric Power Company, Inc. (the “Shares”) to Employee in accordance with the terms of the American Electric Power System Long-Term Incentive Plan (“LTIP”); with the number of shares to be delivered to be determined by dividing $500,000 by the closing market price on the Termination Date.  The delivery of Shares shall be made after the Company determines that Employee has maintained continuous AEP employment through the Termination Date, with delivery to be made to an account set up for Employee’s benefit with a broker/dealer designated by the Company within a reasonable time (generally 3 days) after the Company has made that determination.  Fractional Shares may instead be converted to cash or applied as additional income tax withholding at the Company’s option.  The Shares and Executive shall remain subject to all applicable legal and regulatory restrictions such as insider trading restrictions and blackout periods.  The Company may reduce the number of Shares delivered to Employee to satisfy tax-withholding obligations.  This award is 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 this Agreement (as if they were expressly set forth herein).  In the event of any
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conflict between the terms of this section of the Agreement and the terms of the LTIP, the terms of the LTIP shall control. 

(b)Incentive Compensation. No later than March 15, 2021, Employee will receive a payment, if applicable, under the Company’s Incentive Compensation Plan (“ICP”) for 2020.  This payment, if any, will be made at approximately the same time and utilizing the same overall Award Score as the awards for other executive officer participants in the ICP receiving an incentive compensation payment for 2021, without individual discretionary adjustment, and will be calculated based upon the ICP eligible earnings of Employee for 2020, recognizing that the payments described in this Agreement shall not be considered ICP eligible earnings.

4.         Consideration.  Employee acknowledges that the benefits described in this Agreement are benefits to which Employee would not be entitled but for this Agreement.

5.         Release and Waiver of Claims.   In consideration of the foregoing benefits, subject to Section 10 of this Agreement (Protected Activity), Employee, on behalf of Employee and Employee’s heirs, executors, administrators, successors, assigns and personal representatives, hereby releases and forever discharges the Company (as defined the first paragraph of this Agreement) and the Company’s long-term disability plans (including any trustees, custodians and administrators engaged in connection with the administration of claims or assets maintained in connection with any such plans) of and from any and all legal, equitable, and administrative claims and demands of every name, type, act and nature, arising out of or existing by reason of any known or unknown act or inaction whatsoever and occurring prior to execution of this Agreement.  This release includes, but is not limited to, any claims, charges, complaints, grievances, causes of action (known or unknown), demands, injuries (whether personal, emotional or other), unfair labor practices, or suits arising, directly or indirectly, out of Employee's employment with and/or separation of employment from the Company, and includes, but is not limited to claims, charges, complaints, actions, demands or suits which may be, have, or might have been asserted, whether in contract or in tort, and whether under common law or under federal, state or local statute, regulation or ordinance.  Claims, actions and demands released herein include but are not limited to those based on allegations of wrongful discharge, retaliation, personal injury and/or breach of contract; those arising under state or local discrimination, fair employment practices, and/or wage and hour laws; for West Virginia employees, those arising under the West Virginia Human Rights Act; those arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, as amended, the Fair Labor Standards Act, the Age Discrimination in Employment Act of 1967 (“ADEA”), the Rehabilitation Act of 1973, the Americans With Disabilities Act (“ADA”) and  Executive Order 11246, (all as amended); those arising under the Uniformed Services Employment and Re-employment Rights Act of 1994 (“USERRA”), the Worker Adjustment and Retraining Notification Act (“WARN”), the Labor Management Relations Act (“LMRA”), the National Labor Relations Act (“NLRA”), and the Family and Medical Leave Act (“FMLA”); and those arising under applicable securities laws.  Also released are any claims and demands related to entitlement to long-term disability benefits under any Company long-term disability plan. Excluded from this Agreement are any pending or as yet unaccrued worker’s compensation/occupational disease claims, vested pension benefits, claims which cannot be waived by law and those payments and benefits enumerated in the Summary of Benefits from Andrew R. Carlin to Employee, a copy of which is attached hereto as Exhibit A. Employee further does not release, discharge or waive any 
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rights to indemnification or other protection that Employee may have under the By-Laws or Resolutions of the Company, the laws of the States of New York and/or Ohio, any indemnification agreement between Employee and the Company, or any insurance coverage maintained by or on behalf of the Company (including but not limited to Director and Officer insurance), nor will the Company take any action, directly or indirectly, to encumber or adversely affect Employee’s rights under any such indemnification arrangement or insurance.  Further, the release contained in this Section will not affect any rights granted to Employee, or obligations of the Company, under the terms of this Agreement.  Employee is waiving any right to recover any individual relief from the Company (including back pay, front pay, reinstatement or other legal or equitable relief) in any charge, complaint, lawsuit or other proceeding brought by Employee or on Employee's behalf against the Company pertaining to events occurring prior to execution of this Agreement.  Employee further waives any claim Employee may have for reemployment with the Company. 

6.         Agreement Not to Compete.  Employee agrees not to, during the 12 month period following Employee’s Termination Date (the “Restricted Period”), without the Company’s prior written consent, for any reason, directly or indirectly either as principal, agent, manager, employee, partner, shareholder, director, officer, consultant or otherwise, become engaged or involved, in a manner that relates to or is similar in nature to the specific duties performed by Employee at any time during Employee’s employment with the Company, in any business (other than as a less-than three percent (3%) equity owner of any corporation traded on any national, international or regional stock exchange or in the over-the-counter market) that directly competes with the Company in 

(i)    the business of the harnessing, production, transmission, distribution, marketing or sale of electricity;or the development or operation of transmission facilities or power generation facilities; or 

(ii)    any other business in which the Company is engaged at the termination of the Employee's employment with the Company.

The provisions of this Section 6 shall be limited in scope and be effective only within one or more of the following geographical areas: (A) any state in the United States where the Company has at least U.S. $25 million in capital deployed as of Employee’s Termination Date; or (B) any state or country with respect to which the Company conducted a business, which, or oversight of which, constituted any part of Employee’s employment. The parties intend the above geographical areas to be completely severable and independent, and any invalidity or unenforceability of this Agreement with respect to any one area shall not render this Agreement unenforceable as applied to any one or more of the other areas. 

7.         Cessation of Employment and (where applicable) LTD Benefits.   If Employee has any claim of any benefit entitlement attributable to a disability of Employee, Employee further acknowledges and understands that, as a consequence of accepting the benefits referenced in this Agreement, and signing this Agreement, Employee’s employment with the Company is terminated, the payment (if applicable) of any long-term disability benefits will cease, any claim of entitlement to long-term disability benefits is released, and that any existing reduction of employee contributions toward the cost of  medical, dental, life and any other coverages will also 
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cease, subject to Employee’s rights to continuation of coverages pursuant to applicable law.  In any event, Employee acknowledges that Employee shall no longer be entitled to any continued employment with the Company.

8.         Acknowledgement of Covenants.  Employee reaffirms that Employee shall comply with the provisions in Article VI of the American Electric Power Executive Severance Plan, as amended (the “Executive Severance Plan”), during and after the Employee’s employment with the Company. Without intending to limit the scope of the preceding sentence, Employee hereby acknowledges that Section 6.2 of that Executive Severance Plan was amended October 24, 2016 (after the Executive signed the Acknowledgement of Eligibility & Agreement to Comply with Conditions for the Plan) to read as follows (understanding that references to the “Eligible Employee” are references to “Employee”):

“Section 6.2    Confidential Information.  

“(a)      The Eligible Employee acknowledges that all Confidential Information (as defined below) shall at all times remain the property of the AEP System Companies. For purposes of this Plan, “Confidential Information” means all information including, but not limited to, proprietary information and/or trade secrets, and all information disclosed to the Eligible Employee or known by the Eligible Employee as a consequence of or through the Eligible Employee’s employment, which is not generally known to the public or in the industry in which the AEP System Companies are or may become engaged, about the AEP System Companies’ businesses, products, processes, and services, including, but not limited to, information relating to research, development, computer program designs, computer data, flow charts, source or object codes, products or services under development, pricing and pricing strategies, marketing and selling strategies, power generating, servicing, purchasing, accounting, engineering, costs and costing strategies, sources of supply, customer lists, customer requirements, business methods or practices, training and training programs, and the documentation thereof. It will be presumed that information supplied to the AEP System Companies from outside sources is Confidential Information unless and until it is designated otherwise. 

“(b)      The Eligible Employee will safeguard, to the extent possible in the performance of his work for the AEP System Companies, all documents and things that contain or embody Confidential Information. Except in the course of the Eligible Employee’s duties to the AEP System Companies or as may be compelled by law or appropriate legal process, the Eligible Employee will not, during his employment by the AEP System Companies, or permanently thereafter, directly or indirectly use, divulge, disseminate, disclose, lecture upon, or publish any Confidential Information, without having first obtained written permission from the AEP System Companies to do so; provided, however, that the foregoing shall not prohibit or impede the Eligible Employee from reporting an act or event, that the Eligible Employee in good faith believes is a violation of law, to a relevant law-enforcement agency (such as a federal, state or local law enforcement agency or official), or to a federal, state or local government agency, such as the Securities and Exchange Commission, the Internal Revenue Service, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration or the Department of 
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Labor, or from cooperating in an investigation conducted by or communicating with such a government agency, or otherwise making disclosures to such an agency, in each case, that are protected under federal, state or local whistleblower laws (“Permissible Disclosures”).  

“Moreover, pursuant to the federal Defend Trade Secrets Act of 2016 (“DTSA”), (i) no individual will be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or (B) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and (ii) an individual who is pursuing a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose trade secret information to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document that contains or reflects the trade secret under seal; and (B) does not disclose any trade secret except as permitted by court order. 

“An Eligible Employee does not need the prior authorization of (or to give notice to) the AEP System Companies regarding any such Permissible Disclosures or disclosures protected by the DTSA.  Notwithstanding the foregoing, no provision in this Plan or in any Release shall be construed or interpreted as authorization from the AEP System Companies for an Eligible Employee to disclose any information covered by the AEP System Companies’ attorney-client or attorney work product privileges or a waiver of any such privilege.”

9.         No Admission of Liability.  Employee understands that the Company believes that Employee has no valid claim against the Company. The fact that this Agreement is offered to the Employee in the first place will not be understood as an indication that the Company believes that Employee has been injured, discriminated against or treated unlawfully in any respect.

10.       Protected Activity.  (A) Employee understands and acknowledges that nothing in this Agreement prohibits, penalizes, or otherwise discourages Employee from reporting, providing testimony regarding, or otherwise communicating any nuclear safety concern, workplace safety concern, or public safety concern to the U.S. Nuclear Regulatory Commission (NRC) or the U.S. Department of Labor (DOL).  Employee further understands and acknowledges that the provisions of this Agreement are not intended to restrict Employee’s communication with, or full cooperation in, proceedings or investigations by any agency relating to nuclear regulatory or safety issues.  Employee understands that nothing in the Agreement waives Employee’s right to file a claim with the DOL pursuant to Section 211 of the Energy Reorganization Act, but Employee expressly waives Employee’s right to recover any and all damages or other equitable relief, including, but not limited to reinstatement, back pay, front pay, compensatory damages, attorney fees or costs, that may be awarded to the Employee by the DOL as a result of such a claim.

(B)  Nothing in this Agreement (including but not limited to the release and waiver of claims and the confidentiality, cooperation, non-disparagement, return of property and any other 
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limiting provisions) (1) affects or limits Employee’s right to challenge the validity of this Agreement under the ADEA or the Older Workers Benefit Protection Act (where Employee is age 40 or older) or (2) prevents Employee from filing a charge or complaint with, from communicating with or from participating in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, the National Labor Relations Board, the Securities and Exchange Commission, the Internal Revenue Service, the Department of Justice or any other federal, state or local agency charged with the enforcement of any laws, including providing documents or other information.  This Agreement does not limit any right Employee may have, where eligible, to receive an award from a government agency (and not the Company) for information provided to the government agency. 

11.       Enforcement of Certain Covenants.  It is recognized that damages in the event of breach of the covenants set forth in sections 5 (Non-competition) and 7 (form Article VI of the Executive Severance Plan) by Employee would be difficult, if not impossible, to ascertain, and it is therefore agreed that the Company, in addition to and without limiting any other remedy or right that the Company may have, shall have the right to seek an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach.  The existence of this right shall not preclude the Company from pursuing any other rights or remedies at law or in equity, which the Company may have.

12.       Return of Property.  All Company computers, files, access keys, desk keys, ID badges and credit cards, and such other property of the Company as the Company may reasonably request, in Employee’s possession must be returned no later than the Termination Date, or prior thereto if requested by the Company.  Except to the extent inconsistent with Company policy in effect as of the Termination Date and upon the Request made by the employee at least 3 business days prior to the Termination Date: 

(i) The Company shall assign to Employee the telephone number then in effect with respect to the cell phone device issued to Employee as of the Termination Date; and

(ii) Once the Company is satisfied that it is able to remove to the Company’s satisfaction all Company confidential information to which the device may have had access:

(A)       the Company shall transfer to Employee ownership of the cell phone assigned to Employee as of the Termination Date; and

(B)       The Company shall give Employee the opportunity to purchase the tablet computer assigned to Employee as of the Termination Date at a price based on the Company’s estimate of the then market value of that device.

13.       Entire Agreement.  Employee and the Company acknowledge that this Agreement contains the entire agreement and understanding of the parties and that no other representation or agreement of any kind whatsoever has been made to Employee by the Company or by any other person or entity to cause Employee to sign this Agreement.           

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14.       Applicable Law .  This Agreement shall be governed and interpreted in accordance with the laws of Ohio and applicable federal law.

15.       Severability.  If any provision of this Agreement is determined to be invalid or unenforceable, the Company and Employee agree that such determination shall not affect the other provisions and that all other provisions shall be enforced as if the invalid provision were not a part of this Agreement.

16.   EMPLOYEE NOTICE:  PLEASE READ CAREFULLY BEFORE SIGNING  THIS SEVERANCE, RELEASE OF ALL CLAIMS AND NONCOMPETITION AGREEMENT.
YOU HAVE TWENTY-ONE (21) CALENDAR DAYS WITHIN WHICH TO CONSIDER THIS AGREEMENT.  SHOULD YOU SIGN THE AGREEMENT, YOU HAVE THE RIGHT TO REVOKE IT, IN WRITING, FOR A PERIOD OF SEVEN (7) CALENDAR DAYS AFTER YOU SIGN IT.  THIS AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE SEVEN-DAY REVOCATION PERIOD HAS EXPIRED.

YOU ARE ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT.  YOU MAY HAVE RIGHTS OR CLAIMS ARISING UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND/OR OLDER WORKERS BENEFIT PROTECTION ACT.  IF YOU WORK IN WEST VIRGINIA, YOU ARE FURTHER ADVISED THAT THE TOLL FREE NUMBER OF THE WEST VIRGINIA STATE BAR ASSOCIATION IS 1-800-642-3617.

17.  Conclusion.   The parties have read the foregoing Severance, and Release of All Claims and Noncompetition Agreement and fully understand it.  They now voluntarily sign this Agreement on the date indicated, signifying their agreement and willingness to be bound by its terms.

									
	Employee		American Electric Power Company, Inc.
			
	/s/ Lana L. Hillebrand		By /s/ Nick K. Akins

	Lana L. Hillebrand		     Nick K. Akins
			
	Date 10/21/20
		Date 10/22/20

                                                        
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