ALLETE Executive Long-Term Incentive Plan Form of Cash Award (Effective 2017)

Summary

This agreement outlines the terms of a cash award under ALLETE's Executive Long-Term Incentive Plan for the CEO, effective 2017. The award amount is based on a percentage of the CEO's base salary and is tied to performance goals, including financial and strategic objectives. Payouts vary depending on performance levels, with specific percentages for superior, target, and threshold achievements. Portions of the award are designed to comply with IRS Section 162(m) for performance-based compensation. The award is also subject to ALLETE's Compensation Recovery Policy, allowing for recoupment under certain conditions.

EX-10.I4 4 exhibit10i412-31x2016.htm EXHIBIT 10.I4 Exhibit

Exhibit 10(i)4

ALLETE Executive Long-Term Incentive Plan

Form of Cash Award

Effective 2017

[CEO]

Target Award Opportunity



Base Salary	$

Times

Award Opportunity (percent of base salary)	%

Equals

Target Award	$

Performance Levels and Award Amounts



Goal Performance Level	Payout as Percent of Target Award	Award Amount
Superior	200%	$
Target	100%	$
Threshold	37.5%	$
Below Threshold	0%	$

Goals



		Goal
		Weighting
Financial Goals
	Net Income	25%
	Cash from Operating Activities	25%

Strategic & Operational Positioning Goals		50%
		100%

Portions Subject to 162(m)

Portions of this award are intended to qualify as performance-based compensation within the meaning of I.R.S. Code Section 162(m), namely , all amounts related to the Financial Goals and the objective Strategic & Operational Positioning Goals. Accordingly, those portions will be interpreted and administered consistent with Section 9.2 of the Long-Term Incentive Plan.

Compensation Subject to Compensation Recovery Policy

Annual Incentive Plan Compensation is subject to recoupment as defined in the Compensation Recovery policy.