FORM OF EXECUTIVE ANNUAL INCENTIVE PLAN AWARD

  <PAGE>

                                                                  EXHIBIT 10(a)1

                     ALLETE EXECUTIVE ANNUAL INCENTIVE PLAN

                                  FORM OF AWARD

      [ELIGIBLE EXECUTIVES EXCLUDING PRESIDENT OF ALLETE PROPERTIES, INC.]

<TABLE>

                            TARGET AWARD OPPORTUNITY

                            ------------------------

<CAPTION>

<S>                                                      <C>

Base Salary                                                   $

                                                        x

Award Opportunity (percent of base salary)                   %

                                                            -----------

                                                         =

Target Award                                                 $

</TABLE>

                                      GOALS

                                      -----

                           See attached goal sheet(s)

<TABLE>

                      PERFORMANCE LEVELS AND AWARD AMOUNTS

                      ------------------------------------

<CAPTION>

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      PERFORMANCE LEVEL                   PAYOUT AS PERCENT OF                    AWARD AMOUNT <F1>

                                             TARGET AWARD

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<S>                                        <C>                                     <C>

Superior                                          200%                                   $

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