August 2006 Amendment to ALLETE Director Compensation Deferral Plan

Summary

This amendment, effective October 1, 2006, modifies the ALLETE Director Compensation Deferral Plan. It changes how annuities for directors are calculated, setting a standard interest rate of 7.5% unless the Board approves a different rate. However, an 8% rate applies if a director left service or gave notice of retirement before January 1, 2007, with retirement effective by April 1, 2007. The amendment is executed by ALLETE, Inc. and signed by company officers.

EX-10.D 5 exhibit10d.txt AUGUST 2006 AMENDMENT TO THE DIRECTOR COMPENSATION DEFERRAL PLAN EXHIBIT 10(d) AMENDMENT TO THE AMENDED AND RESTATED ALLETE DIRECTOR COMPENSATION DEFERRAL PLAN The Amended and Restated ALLETE Director Compensation Deferral Plan, dated effective January 1, 1990, is amended as follows: 1. Effective October 1, 2006, Section 5.1 is amended to ADD the following: Any annuity provided under this section shall be calculated using a 7.5% interest rate, or such other rate as approved by the Board. Notwithstanding the foregoing, annuities under this section shall be calculated using an 8% interest rate in any circumstance in which one of the following conditions applies: (i) the Director left service prior to January 1, 2007; or (ii) the Director provided official notice of retirement to the Company prior to January 1, 2007 with an effective retirement date on or before April 1, 2007. 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