Amendment to ALLETE and Affiliated Companies Supplemental Executive Retirement Plan (December 2006)

Summary

This amendment updates the ALLETE and Affiliated Companies Supplemental Executive Retirement Plan, effective January 1, 2007. It changes the default form of retirement benefit payments to a 15-year monthly annuity, with an option for a monthly life annuity. Participants eligible for benefits under both this plan and SERP II must receive benefits in the same form under both plans. If the benefit is less than $10,000, it will be paid as a lump sum. Payments are suspended if a participant is re-employed by the company.

EX-10.I.4 6 exhibit10i4.txt DECEMBER 2006 AMENDMENTS TO THE SUPPLEMENTAL EXEC RETIREMENT PLAN EXHIBIT 10(i)4 ALLETE 2006 Form 10-K AMENDMENT TO THE ALLETE AND AFFILIATED COMPANIES SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN The ALLETE and Affiliate Companies Supplemental Executive Retirement Plan, amended and restated effective January 1, 2004, is amended as follows: 1. Effective January 1, 2007, Section 4.10 is DELETED in its entirety and replaced with the following: 4.10 FORM OF PAYMENT - RETIREMENT BENEFITS The normal, or default, form of the Retirement Benefits provided for in Section 4.6 will be a 15-year monthly annuity (calculated using an 8% interest rate or other rate as approved by the Committee). The Participant may elect to receive the Retirement Benefits in the optional form of a monthly life annuity (calculated using the factor described in Section 4.6), such amount to be adjusted (i.e., cost-of-living adjustments) in the same manner as provided in Section 5.11 of Retirement Plan A; provided, however, that any Participant who is also eligible for retirement benefits under the ALLETE and Affiliated Companies Supplemental Executive Retirement Plan II (SERP II) must receive Retirement Benefits under this Plan in the same form as he or she receives retirement benefits under SERP II. For purposes of clarification, if a Participant who is eligible for retirement benefits under SERP II receives the normal form of retirement benefits under SERP II, for any reason, any election by the Participant to receive the optional form of Retirement Benefits under this Plan shall be inoperable and the Participant shall receive the normal form of Retirement Benefits under this Plan. If the actuarial present value of the Retirement Benefits under Section 4.6 is less than $10,000, the benefit will be paid in a lump sum payment. 1 If a Participant has commenced receipt of Retirement Benefits under this Plan and is re-employed by the Company, Retirement Benefit payments under this Plan shall be suspended upon such re-employment until the Participant again becomes eligible to receive Retirement Benefit payments under the Plan. ALLETE, INC. By: /s/ Donald J. Shippar --------------------------------------------- Donald J. Shippar Chairman, President & Chief Executive Officer ATTEST: By: /s/ Deborah A. Amberg -------------------------------------------------- Deborah A. Amberg Senior Vice President, General Counsel & Secretary 2