Document:

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                                                                  EXHIBIT 10(k)5

                                     ALLETE
                 EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN
                             PERFORMANCE SHARE GRANT

<<First>> <<Last>>

S.S.# <<SSN>>

In accordance with the terms of ALLETE's Executive Long-Term Incentive
Compensation Plan (the "Plan"), as determined by and through the Executive
Compensation Committee of ALLETE's Board of Directors, ALLETE hereby grants to
you (the "Participant") Performance Shares, as set forth below, subject to the
terms and conditions set forth in this Grant (including Annexes A and B hereto
and all documents incorporated herein by reference):

     Number of Performance Shares
        Granted:                       <<M_2004PerfShare_2_year>>
     Date of Grant:                    February 1, 2005
     Performance Period:               January 1, 2005 through December 31, 2007
     Performance Goals:                See Annex B

This Grant is made in accordance with the Plan, which was approved by ALLETE's
shareholders at the 1996 Annual Meeting.

Further terms and conditions of the Grant are set forth in Annex A hereto and
Performance Goals are set forth in Annex B hereto, which are integral parts of
this Grant.

All terms, provisions and conditions applicable to the Performance Shares set
forth in the Plan and not set forth herein are incorporated by reference. To the
extent any provision hereof is inconsistent with a provision of the Plan, the
provisions of the Plan will govern.

IN WITNESS WHEREOF, ALLETE has caused this Grant to be executed by its President
and Chief Executive Officer as of the date and year first above written.

                                     ALLETE

                                     By:     /s/ Don Shippar
                                        ----------------------------------------
                                           President and Chief Executive Officer

Attachments: Annex A and Annex B

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                                     ANNEX A
                                       TO
                                     ALLETE
                 EXECUTIVE LONG-TERM INCENTIVE COMPENSATION PLAN

                             PERFORMANCE SHARE GRANT

     1.     FURTHER TERMS AND CONDITIONS OF PERFORMANCE SHARES. The Grant of
Performance Shares evidenced by the Grant to which this is annexed is subject to
the following additional terms and conditions:

     (a)    DIVIDEND EQUIVALENTS. The Participant shall receive Dividend
Equivalents with respect to the number of Performance Shares subject to the
Grant. Dividend Equivalents shall be calculated and credited to the Participant
at the end of the Performance Period. The Dividend Equivalents shall be in the
form of additional Performance Shares, which shall be added to the number of
Performance Shares subject to the Grant, and which shall equal the number of
Shares (including fractional Shares) that could be purchased on the dividend
payment dates, based on the closing sale price as reported in the consolidated
transaction reporting system on that date, with cash dividends that would have
been paid on Performance Shares, if such Performance Shares were Shares.

     (b)    SATISFACTION OF GOALS. At the end of the Performance Period, the
Executive Compensation Committee (the "Committee") shall determine the extent to
which the Performance Goals have been met. The Participant will not be credited
with any Performance Shares if the threshold level has not been met. Subject to
the provisions of subsection (d) hereof and to provisions in the Plan for change
in control, percentages of the Performance Share grant shall be credited to the
Participant as follows: If the threshold level has been met, 50% of the
Performance Shares (as increased by the Dividend Equivalents) shall be credited
to the Participant. If the target level has been met, 100% of the Performance
Shares (as increased by the Dividend Equivalents) shall be credited to the
Participant. If the superior level has been met, 200% of the Performance Shares
(as increased by the Dividend Equivalents) shall be credited to the Participant.
Straight line interpolation will be used to determine earned awards based on
achievement of goals between the threshold, target and superior levels.

     (c)    PAYMENT. Subject to the provisions of subsection (d) hereof and to
provisions in the Plan for change in control, Performance Shares as determined
by the Committee according to subsection (b) hereof shall be paid out 100% (as
increased by the Dividend Equivalents) after the end of the Performance Period
and after the Committee has determined the extent to which Performance Goals
have been met. Payment shall be made, after withholding Performance Shares equal
in value to the Participant's income tax obligation via a deposit of ALLETE
common stock into an Invest Direct account. Performance Share awards shall not
vest until paid.

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     (d)    PAYMENT UPON DEATH, RETIREMENT OR DISABILITY; FORFEITURE OF UNVESTED
SHARES UPON DEMOTION, UNSATISFACTORY JOB PERFORMANCE OR OTHER TERMINATION OF
EMPLOYMENT.

     (1)    During a Performance Period (i) if the Participant retires pursuant
            to the terms of a tax qualified retirement plan of ALLETE or a
            Subsidiary or upon such other retirement as may be approved by the
            Committee, (ii) in the event of the death of the Participant while
            in the employ of ALLETE or a Subsidiary, or (iii) in the event of
            the termination of the employment of the Participant due to
            Disability (as defined in Section 22(e)(3) of the Code), the
            Participant (or the Participant's beneficiary or estate) shall
            receive a payment of any Performance Shares (as increased by the
            Dividend Equivalents) after the end of the Performance Period,
            promptly after the Committee has determined the extent to which
            Performance Goals have been met. The payment shall be prorated based
            upon the number of whole calendar months within the Performance
            Period which had elapsed as of the date of death, retirement or
            termination due to Disability in relation to the number of calendar
            months in the full Performance Period. A whole month is counted in
            the calculation if the Participant was in the position as of the
            15th of the month.

     (2)    After the end of a Performance Period, but before any or all
            Performance Shares have been paid, if as specified in subsection
            (d)(1) above, a Participant retires, dies or Participant's
            employment is terminated due to Disability, the Participant (or the
            Participant's beneficiary or estate) shall be entitled to a full
            payout of all Performance Shares (as increased by the Dividend
            Equivalents), which shall be paid out at the next scheduled
            performance share payment date.

     (3)    If prior to payment of all Performance Shares, the Participant is
            demoted, or ALLETE or a Business Unit determines, in its sole
            discretion, that the Participant's job performance is
            unsatisfactory, ALLETE reserves the right to cancel or amend the
            Participant's grant relating to any unpaid Performance Shares, with
            the result that some portion or all of the Participant's unpaid
            Performance Shares are forfeited.

     (4)    If the Participant's employment with ALLETE or any Subsidiary
            terminates for any reason other than death, Disability or
            retirement, as specified in subsection (d)(1) hereof, all
            Performance Shares and related Dividend Equivalents to the extent
            not yet paid shall, except as otherwise provided by the Committee,
            be forfeited on the date of such other termination of employment.

     2.     RATIFICATION OF ACTIONS. By receiving the Grant or other benefit
under the Plan, the Participant and each person claiming under or through
Participant shall be conclusively deemed to have indicated the Participant's
acceptance and ratification of, and consent to, any action taken under the Plan
or the Grant by ALLETE, the Board or the Committee.

     3.     NOTICES. Any notice hereunder to ALLETE shall be addressed to its
office, 30 West Superior Street, Duluth, Minnesota 55802, Attention: Manager -
Executive Compensation and Employee Benefits, Human Resources, and any notice
hereunder to the Participant shall be

                                       2

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directed to the Participant's address as indicated by ALLETE's records, subject
to the right of either party to designate at any time hereafter in writing some
other address.

     4.     DEFINITIONS. Capitalized terms not otherwise defined herein shall
have the meanings given them in the Plan.

     5.     GOVERNING LAW AND SEVERABILITY. To the extent not preempted by the
Federal law, the Grant will be governed by and construed in accordance with the
laws of the State of Minnesota, without regard to conflicts of law provisions.
In the event any provision of the Grant shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the
Grant, and the Grant shall be construed and enforced as if the illegal or
invalid provision had not been included.

                                       3

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                                     ANNEX B
                                       TO
                                     ALLETE
                 EXECUTIVE LONG TERM INCENTIVE COMPENSATION PLAN
                             PERFORMANCE SHARE GRANT

Financial Measure:
------------------

Total Shareholder Return (TSR) computed over the three-year period January 1,
2005 to December 31, 2007.

Performance Share Award:
------------------------

If ALLETE's TSR ranking is 3rd or higher among a peer group of 16 electric
utilities (superior performance), 200% of the Performance Share grant will be
awarded. If ALLETE's TSR performance ranks 7th among the peer group (target
performance), 100% of the Grant will be awarded. If ALLETE's TSR performance
ranks 10th (threshold performance), 50% of the Grant will be awarded. If TSR
performance is below threshold, no Performance Shares will be awarded.
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                  [Graphic Omitted -                 200.0%
           2                   Arrow Pointing Up]                200.0%
           3                       Superior                      200.0%

           4                  [Graphic Omitted -                 175.0%
           5                   Arrow Pointing Up]                150.0%
           6                                                     125.0%
           7                        Target                       100.0%

           8                  [Graphic Omitted -                  83.3%
           9                   Arrow Pointing Up]                 66.7%
          10                       Threshold                      50.0%

          11                                                       0%
          12                                                       0%
          13                                                       0%
          14                                                       0%
          15                                                       0%
          16                                                       0%
          17                                                       0%2nd Amendment to Emp Agmnt - B. Parkey

Exhibit
10.1

SECOND
AMENDMENT TO EMPLOYMENT AGREEMENT

This
Second Amendment to Employment Agreement (“Second Amendment”) is entered into by
and between ICO, Inc. (the “Company”) and W. Robert Parkey, Jr. (“Employee”), to
be effective February 11, 2005 (the “Effective Date”).

 

WHEREAS,
Employee and the Company entered into an Employment Agreement and First
Amendment to Employment Agreement (together the “Agreement”), both of which
being effective as of February 2, 2004; and

WHEREAS,
the parties desire to amend the Agreement, as set forth herein.

NOW,
THEREFORE, for and in consideration of the mutual promises, covenants, and
obligations contained herein, the Company and Employee agree as
follows:

1. The following provision is hereby added in Article 1:

“1.6. Upon
termination of Employee’s employment for any reason, Employee shall be deemed
without further action by the Company or Employee to have been terminated from
his position on the Board of Directors of the Company and from any and all
positions as an officer and director of any subsidiary of the Company that he
may hold. Such termination shall be effective on the date of termination of
Employee’s employment.”

2. The
following provision is hereby substituted for the language in
2.2(a)(i)-(iii):

“2.2(a) The bonus
for the first fiscal year during the Employment Period (which shall be a partial
year, ending on September 30, 2004) (the Year One Annual Incentive Bonus) shall
equal $150,000.00.”

3. Year
Two Annual Incentive Bonus

a) The Year
Two Annual Incentive Bonus, referenced in Section 2.2(b) of the Agreement, shall
be calculated as follows: The Company’s Target EBITDA (“Target”) for fiscal year
2005 is $20 million. The Company’s EBITDA must be greater than 80% of the Target
for fiscal year 2005, before Employee is eligible for a bonus equal to a
percentage of his Base Salary up to a maximum of 60% of his Base Salary. The
formula for this bonus percentage is:

                

Bonus
percentage = (1.5 x T) - 120

    where

T = the
percentage of the Target reached

 

For the
purposes of the above formula, “EBITDA” is defined as the consolidated operating
income or loss from continuing operations plus: (i) depreciation and
amortization; (ii) impairment, restructuring, and other costs, and (iii) stock
option compensation expense. EBITDA is calculated and determined based on the
Company’s audited financial statements and includes as an operating expense
bonus amounts payable to Employee and other employees.

If the
Company does not achieve fiscal year 2005 Return on Invested Capital (“ROIC”) of
8% or more, Employee’s bonus, as calculated above, will be reduced by 20%. For
purposes of this calculation, ROIC will be (i) operating income from continuing
operations as defined by GAAP, excluding impairment, restructuring and other
costs and stock option expenses divided by (ii) total assets, excluding goodwill
and less current liabilities, plus funded debt (i.e. interest bearing debt)
included in current liabilities. Intercompany loans will be considered long-term
debt for purposes of calculating ROIC.

b) Notwithstanding
paragraph (a) above, if the Company receives a “Qualified Opinion for fiscal
2005” (as defined below), then Employee shall not be entitled to receive any
Year Two Annual Incentive Bonus. For the purpose of this paragraph, the Company
shall be deemed to have received a “Qualified Opinion for fiscal 2005” if, in
connection with the Company’s fiscal 2005 annual audit (relative to
Sarbanes-Oxley 404 compliance), the Company (i) does not receive an unqualified
opinion from PricewaterhouseCoopers (“PwC”) regarding Management’s Assessment of
the Internal Control System of the Company, or (ii)
does not receive an unqualified opinion from PwC regarding their assessment of
the Company’s Internal Control System. This provision shall apply only to the
Year Two Annual Incentive Bonus (relating to fiscal year 2005), and shall not
apply to future Annual Incentive Bonuses unless expressly agreed to by Employee.
This provision shall not apply if the issuance of the independent auditor
opinions relating to (i) and (ii) above are not required due to a change in
applicable law or regulation.

4. In
addition to the amendments stated above, Employee acknowledges and agrees that
he has waived any claim to any additional bonus for fiscal year 2004 other than
the bonus he actually received.

 

IN
WITNESS WHEREOF, the Company and Employee have duly executed this Second
Amendment in multiple originals to be effective on the Effective Date.

ICO, Inc.

		
      /s/ Christopher
      N. O’Sullivan

	
       
	
      Christopher
      N. O’Sullivan

		
      Chairman
      of the Board of Directors

	
      Date:
	
      February
      11, 2005

 

Employee

 

		
      /s/ W.
      Robert Parkey, Jr.

	
       
	
      Jon
      C. Biro

	
      Date:
	
      February
      11, 2005

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