Exhibit 10(m)10
 
ALLETE 2007 Form 10-K
ANNEX B
TO
ALLETE
EXECUTIVE LONG TERM INCENTIVE COMPENSATION PLAN
PERFORMANCE SHARE GRANT
Effective 2008
[Eligible Executive Employees]

Financial Measure:

Total Shareholder Return (TSR) computed over the three-year period.

Performance Share Award:

If ALLETE’s TSR ranking is 3rd or higher among a peer group of 16 companies
(superior performance), 200% of the Performance Share Grant will be earned.  If
ALLETE’s TSR performance ranks 9th among the peer group (target performance),
100% of the Grant will be earned.  If ALLETE’s TSR performance ranks 12th
(threshold performance), 50% of the Grant will be earned.  If TSR performance is
below threshold, no Performance Shares will be earned.  Straight-line
interpolation will be used to determine earned awards based on the TSR ranking
between threshold, target and superior.

 
TSR Rank
Perf. Level
Payout %
         
1
 
200.0%
 
2
 
200.0%
 
3
Superior
200.0%
 
4
 
183.3%
 
5
 
166.7%
 
6
 
150.0%
 
7
 
133.3%
 
8
 
116.7%
 
9
Target
100.0%
 
10
 
83.3%
 
11
 
66.7%
 
12
Threshold
50.0%
 
13
 
0%
 
14
 
0%
 
15
 
0%
 
16
 
0%
 
17
 
0%

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