Document:

ALE 6-30-2013 EX-10.A

Exhibit 10 (a)

ALLETE
NON-EMPLOYEE DIRECTOR
STOCK PLAN

(As amended and restated effective May 15, 2013)

ALLETE NON-EMPLOYEE DIRECTOR STOCK PLAN
(As amended and restated effective May 15, 2013)

Article 1
Establishment and Purpose

This document includes the terms of the ALLETE Non-Employee Director Stock Plan (the “Plan”), the purpose of which is to provide ownership of the Company's stock to members of its Board of Directors in order to improve the Company's ability to attract and retain highly qualified individuals to serve as Directors and to strengthen the commonality of interest between Directors and Company shareholders.  The Plan, first established effective May 9, 1995, was amended as follows: effective September 1, 2000, the Plan was amended to reflect the Company's name change; effective January 1, 2002, January 1, 2003, February 15, 2007, May 1, 2009, May 1, 2010 and October 1, 2010, respectively, the Plan was amended to reflect changes in Director compensation;  effective July 20, 2004, the Plan was amended to provide for tax withholding; and, effective May 1, 2009, the Plan was amended to permit Directors to defer their Annual Retainer awarded pursuant to the Plan under the ALLETE Amended and Restated Non-Employee Director Compensation Deferral Plan II.  The Company now further amends and restates the Plan, effective May 15, 2013, to increase by 150,000 the number of shares authorized for issuance under this Plan, and to make other conforming amendments.  Capitalized terms, unless otherwise defined herein, shall have the meaning provided in Article 10.

Article 2
Administration

		
	2.1
	Administrator.  The Executive Compensation Committee of the Board shall administer the Plan.  Notwithstanding the foregoing, the Administrator may delegate any of its duties to such other person or persons from time to time as it may designate.  Members of the Executive Compensation Committee may participate in the Plan; however, any Director serving on the Executive Compensation Committee shall not vote or act on any matter relating solely to himself or herself.

		
	2.2
	Duties.  The Administrator has the authority to construe and interpret all provisions of the Plan, to resolve any ambiguities, to adopt rules and practices concerning the administration of the Plan, to make any determinations and calculations necessary or appropriate hereunder, and to remedy any errors, inconsistencies or omissions.  The Company shall pay all expenses and liabilities incurred in connection with Plan administration.

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	2.3
	Agents.  The Administrator may engage the services of accountants, attorneys, actuaries, investment consultants, and such other professional personnel as are deemed necessary or advisable to assist in fulfilling the Administrator's responsibilities.  The Administrator, the Company and the Board may rely upon the advice, opinions or valuations of any such persons.

		
	2.4
	Binding Effect of Decisions.  The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan.   Neither the Administrator, its delegates, nor the Board shall be personally liable for any good faith action, determination or interpretation with respect to the Plan, and each shall be fully protected by the Company in respect of any such action, determination or interpretation.

		
	2.5
	Company Information.  To enable the Administrator to perform its duties, the Company shall supply full and timely information to the Administrator on all matters relating to the Annual Retainer, the Directors and such other pertinent information as the Administrator may reasonably require.

Article 3
Common Stock Subject to the Plan

Subject to Article 6 below, the maximum aggregate number of shares of Common Stock that may be delivered under the Plan is 164,661 shares. The Common Stock to be delivered under the Plan may be made available from authorized but unissued shares of Common Stock or shares of Common Stock purchased on the open market.

Article 4
Determination of Annual Retainer and Stock Payments

		
	4.1.
	The Board shall determine the Annual Retainer payable to each Director. Unless otherwise specified by the Board, the Annual Retainer, once established, will remain in effect until the Board changes it. 

		
	4.2
	Each Director shall receive a Stock Payment for services rendered during the Service Period on the first business day of June or as soon as practicable following that date.  The number of shares shall be calculated by dividing the amount of the Stock Payment by the fair market value of a share of Common Stock, which for this purpose means the average New York Stock Exchange closing price for the last five (5) days up to and including the date that is ten (10) calendar days prior to June 1 of the Service Period (or on the first business day thereafter if June 1 is not a business day).

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To the extent the Director has not elected to defer any or all of the Stock Payment pursuant to the ALLETE Amended and Restated Non-Employee Director Compensation Deferral Plan II, or any successor deferral plan or arrangement established by the Company for such purpose, the Company shall either issue shares or cause the appropriate number of shares of Common Stock to be purchased in the market and delivered to the Director or, at the Company's election, to the Director's Invest Direct account or to the Director's account in such successor dividend reinvestment plan as the Company may establish.  Fractional shares may be paid in cash.  Any Director joining the Board during a Service Period after the first business day in June will receive his or her Stock Payment, valued using the same general methodology described above and prorated to reflect the number of months included in the Director's initial Service Period, as soon as practicable after the first business day following the effective date of his or her election or appointment to the Board.

		
	4.3
	Any Director may decline a Stock Payment for any Plan Year, provided, however, that no cash compensation shall be paid in lieu thereof. Any Director who declines a Stock Payment must do so in writing prior to the performance of any services as a Director for the Plan Year to which such Stock Payment relates.

		
	4.4
	No Director shall be required to forfeit or otherwise return any shares of Common Stock issued as a Stock Payment pursuant to the Plan (including any shares of Common Stock received as a result of an election under Article 5) notwithstanding any change in status of such Director that renders him or her ineligible to continue as a Director in the Plan.

		
	4.5
	The cash portion of the Annual Retainer for such Plan Year shall be paid to Directors at such times and in such manner as may be determined by the Board of Directors, unless the Director has elected to defer some or all of the cash portion of the Annual Retainer pursuant to the ALLETE Amended and Restated Non-Employee Director Compensation Deferral Plan II.

		
	4.6
	Any portion of the Annual Retainer that a Director elects to defer pursuant to the ALLETE Amended and Restated Non-Employee Director Compensation Deferral Plan II shall be considered a deferral under that plan and not this Plan.

Article 5
Election to Increase Amount of Stock Payment
in Lieu of Cash Portion of Annual Retainer

5.1    Annual Election.  Each Plan Year, a Director may make a written election to reduce the cash portion of the Annual Retainer and have such amount applied to purchase additional shares of Common Stock. The election shall be made on a form provided by the Administrator and must be returned to the Administrator.  An election becomes irrevocable no later than the date specified by the Administrator, but in any event before the beginning of the Plan Year to which the election relates.  

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A Director's election will become effective only if the forms required by the Administrator have been properly completed and signed by the Director, timely delivered to, and accepted by, the Administrator.  The election form shall state the percentage or amount by which the Director desires to reduce the cash portion of the Annual Retainer, which shall be applied toward the purchase of Common Stock to be delivered on the same date that the Stock Payment is made, provided, however, that no fractional shares may be purchased. Cash in lieu of any fractional share may be paid to the Director. No Director shall be allowed to change or revoke any election for the then current year.
5.2    Initial Election.  A Director who first becomes eligible to participate in the Plan during a Plan Year may elect to reduce the cash portion of the Annual Retainer and have such amount applied to purchase additional shares of Common Stock by filing a signed election form with the Administrator no later than 30 days after the Director first becomes eligible to participate in the Plan.  The election shall become irrevocable with respect to the Service Period covered by the election on the earlier of the 30th day following the date on which the Director first becomes eligible to participate in the Plan or the date on which payment is made to the Director.  
Article 6
Adjustment for Changes in Capitalization

If the outstanding shares of Common Stock of the Company are increased, decreased, or exchanged for a different number or kind of shares or other securities, or if additional shares or new or different shares or other securities are distributed with respect to such shares of Common Stock or other securities, through merger, consolidation, sale of all or substantially all of the property of the Company, reorganization or recapitalization, reclassification, stock dividend, stock split, reverse stock split, combinations of shares, rights offering, distribution of assets or other distribution with respect to such shares of Common Stock or other securities or other change in the corporate structure or shares of Common Stock, the number of shares to be granted annually, the maximum number of shares and the kind of shares that may be issued under the Plan shall be appropriately adjusted by the Administrator. Any determination by the Administrator as to any such adjustment will be final, binding, and conclusive. The maximum number of shares issuable under the Plan as a result of any such adjustment shall be rounded down to the nearest whole share.
Article 7
Amendment or Termination of Plan

The Board will have the power, in its discretion, to amend, suspend or terminate the Plan at any time.

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Article 8
Duration of the Plan

Subject to the right of the Board to terminate the Plan pursuant to Article 7, the Plan shall remain in effect until all shares subject to the Plan have been purchased or acquired according to the Plan's provisions.

Article 9
Miscellaneous Provisions

		
	9.1
	Continuation of Directors in Same Status. Nothing in the Plan or any action taken pursuant to the Plan shall be construed as creating or constituting evidence of any agreement or understanding, express or implied, that the Company will retain a Director as a Director or in any other capacity for any period of time or at a particular retainer or other rate of compensation, as conferring upon any Director any legal or other right to continue as a Director or in any other capacity, or as limiting, interfering with or otherwise affecting the right of the Company to terminate a Director in his or her capacity as a Director or otherwise at any time for any reason, with or without cause, and without regard to the effect that such termination might have upon him or her as a participant under the Plan.

		
	9.2
	Compliance with Government Regulation. Neither the Plan nor the Company shall be obligated to issue any shares of Common Stock pursuant to the Plan at any time unless and until all applicable requirements imposed by any federal and state securities and other laws, rules and regulations, by any regulatory agencies or by any stock exchanges upon which the Common Stock may be listed have been fully met. As a condition precedent to any issuance of shares of Common Stock, the Board or the Administrator may require a Director to take any such action and to make any such covenants, agreements and representations as the Board or the Administrator, as the case may be, in its discretion deems necessary or advisable to ensure compliance with such requirements. The Company shall in no event be obligated to register the shares of Common Stock deliverable under the Plan pursuant to the Securities Act of 1933, as amended, or to qualify or register such shares under any securities laws of any state upon their issuance under the Plan or at any time thereafter, or to take any other action in order to cause the issuance and delivery of such shares under the Plan or any subsequent offer, sale, or other transfer of such shares to comply with any such law, regulation, or requirement. Directors are responsible for complying with all applicable federal and state securities and other laws, rules, and regulations in connection with any offer, sale, or other transfer of the shares of Common Stock issued under the Plan or any interest therein including, without limitation, compliance with the registration requirements of the Securities Act of 1933 as amended (unless an exemption therefrom is available) or with the provisions of Rule 144 promulgated thereunder, if applicable, or any successor provisions. Certificates for shares of Common Stock may be legended as the Administrator shall deem appropriate.

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	9.3
	Non-transferability of Rights. No Director shall have the right to assign the right to receive any Stock Payment or any other right or interest under the Plan, contingent or otherwise, or to cause or permit any encumbrance, pledge, or charge of any nature to be imposed on any such Stock Payment (prior to the delivery of such Stock Payment) or any such right or interest.

		
	9.4
	Severability. In the event that any provision of the Plan is held invalid, void, or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provision of the Plan.

		
	9.5
	Governing Law. To the extent not preempted by federal law, the Plan shall be governed by the laws of the state of Minnesota.

		
	9.6 
	Tax Withholding. The Company is authorized to withhold from the Annual Retainer including from the Stock Payment, amounts of withholding and other taxes due in connection with such payment by the Company and to take such other action as the Company may deem advisable to enable the Company or Director to satisfy obligations relating to the payment of any Annual Retainer.

Article 10
Definitions

When used herein, the following terms shall have the respective meanings set forth below:
		
	10.1
	“Administrator” is defined in Article 2.1 of the Plan.

		
	10.2
	“Annual Retainer” means the annual retainer payable by the Company to Directors (excluding any per meeting fees or expense reimbursements).

		
	10.3
	“Board” or “Board of Directors” means the Board of Directors of the Company. 

		
	10.4
	“Common Stock” means the common stock, no par value, of the Company.

		
	10.5
	“Company” means ALLETE, Inc., f/k/a Minnesota Power, Inc. and f/k/a Minnesota Power & Light Company, a Minnesota corporation, and any successor corporation.

		
	10.6
	“Director” means any person who is elected or appointed to the Board of Directors of the Company and who is not an Employee.

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	10.7
	“Employee” means any officer or other common law employee of the Company or of any Subsidiary.

		
	10.8
	“Exchange Act” means the Securities Exchange Act of 1934, as amended.

		
	10.9
	 “Invest Direct” means the ALLETE Stock Purchase and Dividend Reinvestment Plan or any successor dividend reinvestment plan as the Company may establish.

10.10    “Plan Year” means the calendar year.
		
	10.11
	“Service Period” means, with respect to the Annual Cash Retainer, a Plan Year, and with respect to the Annual Stock Retainer, the 12-month period beginning on June 1 of each Plan Year or, with respect to a Director who first becomes eligible to participate in the Plan after June 1 of a Plan Year, such lesser period beginning on the date the Director joins the Board and ending on the following May 31.

		
	10.12
	“Stock Payment” means that portion of the Annual Retainer to be paid to Directors in shares of Common Stock rather than cash for services rendered as a Director of the Company, as provided in Article 4 hereof, including that portion of the Stock Payment resulting from any election specified in Article 5 hereof.

		
	10.13
	“Subsidiary” means any corporation that is a “subsidiary corporation” of the Company, as that term is defined in Section 424(f) of the Internal Revenue Code of 1986, as amended.

In Witness Whereof, the Board of Directors of ALLETE, Inc. has caused this amended and restated ALLETE Non-Employee Director Stock Plan to be signed by its duly authorized representative, effective as of May 15, 2013.

ALLETE, Inc.
	
	
	/s/ Alan R. Hodnik

	Alan R. Hodnik

	Chairman, President and Chief Executive Officer

ATTEST:
	
	
	/s/ Deborah A. Amberg

	Deborah A. Amberg

	Senior Vice President, General Counsel and Secretary

7ALE 6-30-2013 EX-10.B

Exhibit 10 (b)

FIRST AMENDMENT 
TO 
AMENDED AND RESTATED LETTER OF CREDIT AGREEMENT
This Amendment is entered into as of June 1, 2013 by and between ALLETE, Inc., a Minnesota corporation (the “Company”), and Wells Fargo Bank, National Association, a national banking association (“Wells Fargo”), in its capacity as the Issuing Bank, Administrative Agent and sole Participating Bank under and as defined in the Reimbursement Agreement described below.
The Company and Wells Fargo are parties to an Amended and Restated Letter of Credit Agreement (as amended, supplemented, restated or otherwise modified from time to time, the “Reimbursement Agreement”) dated June 3, 2011, setting forth the terms on which Wells Fargo, as the Issuing Bank thereunder, has maintained its Irrevocable Letter of Credit No. NZS569069, dated July 5, 2006 (as amended, supplemented, restated or otherwise modified from time to time, the “Letter of Credit”) to support certain obligations arising with respect to the Collier County (Florida) Industrial Authority Industrial Development Variable Rate Demand Refunding Revenue Bonds (ALLETE, Inc. Project), Series 2006, in the principal amount of $27,800,000.
The Company has asked the Issuing Bank to amend the Letter of Credit to provide that it is automatically extended from time to time unless notice of non-extension is provided by the Issuing Bank.
The Banks (as defined in the Reimbursement Agreement) are willing to grant the Company's request, subject to the execution and delivery of this Amendment by each of the parties to the Reimbursement Agreement.
ACCORDINGLY, in consideration of the premises and the mutual covenants contained in the Reimbursement Agreement and this Amendment, the parties hereby agree as follows:
1.    Definitions. 
As used in this Amendment, capitalized terms defined in the Reimbursement Agreement that are not otherwise defined herein shall have the meanings given them in the Reimbursement Agreement.
2.    Issuance of Letter of Credit Amendment.
The Company hereby requests that the Issuing Bank issue its amendment to the Letter of Credit in the form of Exhibit A hereto. Subject to the conditions set forth in this Amendment, the Issuing Bank hereby agrees to issue such amendment to the Letter of Credit, and each Participating Bank consents thereto.
3.    Amendment of Reimbursement Agreement.
(a)    Section 1.1 of the Reimbursement Agreement is hereby amended by inserting the following definition therein (in alphabetical order):
“Non-Extension Notice” means notice by the Issuing Bank to the Trustee, in accordance with the terms of the Letter of Credit, that the Issuing Bank has elected not to extend the Letter of Credit beyond the date specified in such notice.
(b)    Section 2.15 of the Reimbursement Agreement is hereby amended in its entirety to read as follows:

Section 2.15    Extension of Stated Expiration Date.
(a)    The Letter of Credit provides by its terms that the Stated Expiration Date shall be automatically extended for successive one-year terms (but not later than July 5, 2018) unless the Issuing Bank provides a Non-Extension Notice not less than 30 days prior to the then-current Stated Expiration Date. The Issuing Bank may (and shall, if so directed by the Administrative Agent) provide such Non-Extension Notice at any time. The Administrative Agent shall direct the Issuing Bank to provide such Non-Extension Notice if so requested by the Company or any Participating Bank in writing to the Administrative Agent not more than 120 days and not less than 90 days prior to the then-applicable Stated Expiration Date. The Issuing Bank may issue any Non-Extension Notice, and any Participating Bank may make any request for issuance of a Non-Extension Notice under this Section 2.15, in each case in its sole and absolute discretion, whether or not any Potential Default or Event of Default exists. As a condition to allowing the extension of the Letter of Credit, any Bank may require the Company to deliver one or more amendments to this Agreement (which may include modifications to any fees or other amounts required to be paid hereunder) or certificates (which may cover, among other things, the continued accuracy of the representations and warranties made hereunder), or impose other conditions thereto. The Issuing Bank shall notify the Company of any decision not to extend the Stated Expiration Date promptly, and in any event not later than concurrently with the giving of such notice to the Trustee in accordance with the Letter of Credit. Unless notice of non-extension is provided in accordance with the Letter of Credit, the Stated Expiration Date shall be automatically extended in accordance with the terms of the Letter of Credit, and all references in this Agreement to the Stated Expiration Date shall be deemed to be references to the expiration date as so extended in accordance with the terms of the Letter of Credit.  
(b)    So long as the Company delivers a request for such notice to the Issuing Bank not more than 120 days and not less than 90 days prior to the then-applicable Stated Expiration Date, the Issuing Bank will notify the Company, not less than 75 days prior to the then-applicable Stated Expiration Date, if it intends to issue a Non-Extension Notice effective as of such Stated Expiration Date; provided, however, that nothing herein shall limit the Issuing Bank from issuing a Non-Extension Notice at any time while a Potential Default or Event of Default is continuing, even if the Issuing Bank has failed to give such notice of its intention.
(c)    Section 7.10 of the Reimbursement Agreement is hereby amended in its entirety to read as follows:
Section 7.10    Amendments and Waivers.
Neither this Agreement nor any Related Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this subsection.  The Majority Participating Banks may, or, with, but only with, the written consent of the Majority Participating Banks, the Administrative Agent or the Issuing Bank, as applicable, may, from time to time, (a) enter into with the Company written amendments, supplements or modifications hereto and to the other Financing Documents for the purpose of adding any provisions to this Agreement or the other Financing Documents or changing in any manner the rights of the Participating Banks or of the Company hereunder or thereunder or (b) waive, on such terms and conditions as the Majority Participating Banks or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of an Event of Default and its consequences; provided, however, that no such waiver and no such amendment, 

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supplement or modification shall, without the consent of each Participating Bank, (i) reduce the amount or extend the scheduled date of maturity of any Obligation or any installment thereof, or reduce the stated rate of any interest or fee payable hereunder or extend the scheduled date of any payment thereof or increase the amount or extend the Stated Expiration Date, in each case without the consent of each Participating Bank affected thereby (provided, however, that each Participating Bank shall be deemed to have given its consent to any automatic extension of the Stated Expiration Date in accordance with the terms of the Letter of Credit unless, in accordance with Section 2.15, such Participating Bank has directed the Administrative Agent to direct the Issuing Bank to give a Non-Extension Notice), or (ii) amend, modify or waive any provision of this subsection or reduce the percentage specified in the definition of Majority Participating Banks, or consent to the assignment or transfer by the Company of any of its rights and obligations under this Agreement and the other Financing Documents, in each case without the written consent of all the Participating Banks, or (iii) amend, modify or waive any provision of Article VIII or any provision hereunder affecting the rights or obligations of the Issuing Bank without the written consent of the Administrative Agent or the Issuing Bank, respectively.  Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Participating Banks and shall be binding upon the Company, the Participating Banks, the Issuing Bank and the Administrative Agent.  In the case of any waiver, the Company, the Participating Banks, the Issuing Bank and the Administrative Agent shall be restored to their former positions and rights hereunder and under the other Financing Documents, and any Potential Default or Event of Default waived shall be deemed to be cured and not continuing; no such waiver shall extend to any subsequent or other Potential Default or Event of Default or impair any right consequent thereon.
4.    Representations and Warranties.  
The Company hereby represents and warrants to the Banks as follows:
(a)    The Company has all requisite power and authority, corporate or otherwise, to execute and deliver this Amendment and to perform all of its obligations under this Amendment and under the Reimbursement Agreement as amended hereby. This Amendment has been duly and validly executed and delivered to the Administrative Agent by the Company, and this Amendment, and the Reimbursement Agreement as amended hereby, constitute the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except that the enforceability thereof may be limited by applicable bankruptcy, insolvency, or other laws affecting the enforcement of creditors' rights generally and by equitable principles.
(b)    The execution, delivery and performance of this Amendment, and the performance of the Reimbursement Agreement as amended hereby, have been duly authorized by all necessary action and do not and will not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) violate the Company's articles of incorporation or bylaws or any provision of any law, rule, regulation or order presently in effect having applicability to the Company, or (iii) result in a breach of or constitute a default under any indenture or agreement to which the Company is a party or by which the Company or its properties may be bound or affected. 
(c)    All of the representations and warranties contained in Article IV of the Reimbursement Agreement, as amended hereby, are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date. 

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5.    Conditions.  
The obligations of the Issuing Bank under Section 2 and the amendments set forth in Section 3 shall be effective only if the Administrative Agent has received, on or before the date hereof (or such later date as the Administrative Agent may agree to in writing), the following, each satisfactory to the Administrative Agent in form and substance:
(a)    This Amendment, duly executed by the Company.
(b)    A certificate of the secretary or other appropriate officer of the Company (i) certifying that the execution, delivery and performance by the Company of this Amendment, and the performance of the Reimbursement Agreement as amended hereby, have been duly approved by all necessary action of the Company, and attaching true and correct copies of the applicable resolutions granting such approval, (ii) certifying that there have been no amendments to or restatements of the Company's by‐laws and articles of incorporation as furnished to the Administrative Agent in connection with the execution and delivery of the Reimbursement Agreement, other than those that may be attached to the certificate, and (iii) certifying the names of the officers of the Company that are authorized to sign this Amendment, together with the true signatures of such officers. 
(c)    A certificate of good standing for the Company from the Secretary of State of the State of Minnesota, dated not more than 30 days prior to the date hereof.
(d)    A signed copy of an opinion of counsel for the Company, addressed to the Banks, opining as to the matters set forth in Section 4 (other than those in Section 4(c)) and such other matters as any Bank may require. 
(e)    To the extent requested by the Administrative Agent, payment or reimbursement in full for all reasonable legal fees charged, and all costs and expenses incurred, by counsel for the Banks through the date hereof in connection with the transactions contemplated under this Amendment.
6.    Miscellaneous.  
The Company shall pay all costs and expenses of the Banks, including attorneys' fees, incurred in connection with the drafting and preparation of this Amendment and any related documents.  Except as amended by this Amendment, all of the terms and conditions of the Reimbursement Agreement shall remain in full force and effect.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Amendment, taken together, shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or by e-mail transmission of a PDF or similar copy shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart signature page to this Amendment by facsimile or by e-mail transmission shall also deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability or binding effect of this Amendment. This Amendment shall be governed by the substantive law of the State of Minnesota.
Signature pages follow

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In witness whereof, the parties hereto have executed this Amendment as of the day and year first above written.

ALLETE, INC.
	
		
	By
	/s/ Mark A. Schober

	Name:
	Mark A. Schober

	Title:
	Sr. Vice President and CFO

Signature Page for First Amendment to Letter of Credit Agreement

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, as Issuing Bank and as a Participating Bank
	
		
	By
	/s/ Nick Brokke

	Name:
	Nick Brokke

	Title:
	Assistant Vice President

Signature Page for First Amendment to Letter of Credit Agreement

Exhibit A
Letter of Credit Amendment
See attached.

Exhibit A-1

Wells Fargo Bank, N.A.
U. S. Trade Services 
Standby Letters of Credit
MAC A0195-212
One Front Street,  21st Floor
San Francisco, CA. 94111
Phone: 1(800) 798-2815 Option 1
E-Mail: sftrade@wellsfargo.com  

Amendment To
Irrevocable Standby Letter Of Credit
Number : NZS569069
Amendment Number : 2
Amend Date : June 1, 2013

BENEFICIARY                         APPLICANT

U.S. BANK NATIONAL ASSOCIATION            ALLETE, INC.
ATTENTION: CORP. TRUST DEPT.            30 W. SUPERIOR STREET
60 LIVINGSTON AVENUE                ATTN: RICHARD AUSMAN-CASH MGR
ST. PAUL, MINNESOTA 55107                DULUTH, MINNESOTA 55802  
    
LADIES AND GENTLEMEN:

AT THE REQUEST AND FOR THE ACCOUNT OF THE ABOVE REFERENCED APPLICANT, WE HEREBY AMEND OUR IRREVOCABLE STANDBY LETTER OF CREDIT (THE “WELLS CREDIT”) IN YOUR FAVOR AS FOLLOWS:

THE THIRD PARAGRAPH OF THE FIRST PAGE OF OUR LETTER OF CREDIT DATED JULY 5, 2006 IS NOW TO READ:

THIS LETTER OF CREDIT EXPIRES AT OUR LETTER OF CREDIT OPERATIONS OFFICE IN SAN FRANCISCO, CALIFORNIA ON JULY 5, 2014, BUT SHALL BE AUTOMATICALLY EXTENDED, WITHOUT WRITTEN AMENDMENT, TO JULY 5 IN EACH SUCCEEDING CALENDAR YEAR UP TO, BUT NOT BEYOND, JULY 5, 2018 UNLESS YOU HAVE RECEIVED WRITTEN NOTICE FROM US SENT BY EXPRESS COURIER OR REGISTERED MAIL TO YOUR ADDRESS ABOVE, OR BY FACSIMILE TRANSMISSION TO YOUR FAX NUMBER 651-466-7430 (THE “BENEFICIARY FAX NUMBER”), THAT WE ELECT NOT TO EXTEND THIS LETTER OF CREDIT BEYOND THE DATE SPECIFIED IN SUCH NOTICE, WHICH DATE WILL BE A DATE BEFORE JULY 5, 2018.  (THE EARLIER OF (I) THE DATE SPECIFIED IN SUCH NOTICE FROM US AND (II) JULY 5, 2018, OR IF SUCH EARLIER DATE IS NOT A BUSINESS DAY THEN THE FIRST (1ST) SUCCEEDING BUSINESS DAY THEREAFTER, WILL BE HEREINAFTER REFERRED TO AS THE "EXPIRATION DATE".)  TO BE EFFECTIVE, SUCH NOTICE FROM US MUST BE RECEIVED BY YOU AT LEAST 30 CALENDAR DAYS BEFORE THE EXPIRATION DATE.” 

ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

THIS AMENDMENT IS TO BE ATTACHED TO THE ORIGINAL WELLS CREDIT AND IS AN INTEGRAL PART THEREOF. 

Very Truly Yours,

WELLS FARGO BANK, N.A.

   
     By: ________________________________________
                          Authorized Signature

The original of the Letter of Credit contains an embossed seal over the Authorized Signature.

Exhibit A-2

Please direct any written correspondence or inquiries regarding this Letter of Credit, always quoting our
reference number, to Wells Fargo Bank, National Association, Attn: U.S. Standby Trade Services

	
				
	at either
	One Front Street
	or
	401 Linden Street

	 
	MAC A0195-212,
	 
	MAC D4004-017,

	 
	San Francisco, CA 94111
	 
	Winston-Salem, NC 27101

Phone inquiries regarding this credit should be directed to our Standby Customer Connection Professionals

	
		
	 1-800-798-2815 Option 1
	  1-800-776-3862 Option 2

	(Hours of Operation: 8:00 a.m. PT to 5:00 p.m. PT)
	(Hours of Operation: 8:00 a.m. EST to 5:30 p.m. EST)

           

Exhibit A-3

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