AMENDMENT TO THE AMENDED AND RESTATED ALLETE EXECUTIVE ANNUAL INCENTIVE PLAN

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                                                                  EXHIBIT 10(h)4
                                                           ALLETE 2006 Form 10-K

                      AMENDMENT TO THE AMENDED AND RESTATED
                     ALLETE EXECUTIVE ANNUAL INCENTIVE PLAN

         The ALLETE   Executive Annual Incentive Plan, dated effective January 1,
1999, as amended, is amended as follows:


         1.   Effective January 1, 2007, the following sentence   will be added at
         the end of Section 7.1 in Article 7:

             "A Participant's Award will be reduced by, an