EXHIBIT 10.1

FINAL3/1/04Updated 4-23-04 Bremer Financial Corporation 2004 Variable
Compensation Plan


|Plan Name:      | Bremer Executive Long Term Incentive Plan                                          
|--------------- | -----------------------------------------------------------------------------------
|Plan Number:    | ELT001                                                                             
|Effective Date: | January 1, 2003                                                                    
|Prepared By:    | Bremer Human Resources                                                             
|Approvals       | ______________________________________
Senior Vice President, Human Resources, BFSI
|                | ______________________________________President and Chief Executive Officer, BFC   
|                | Approved December 10, 2002Board of Directors, BFC                                  



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# Bremer Financial
CorporationBremer Executive
Long Term Incentive Plan

# I. Purpose of Plan

The purpose of the 2004 Bremer Executive Long Term Incentive Plan (Plan) is to reward Bremer executives (Participants) for contributions to the long-term financial success of Bremer Financial Corporation (BFC).

# II. Eligibility for
Participation

|A. | Bremer Executives in grades A through F are eligible to participate in the Plan
          subject to approval by the BFC Board of Directors. This includes newly hired
          employees, transferred employees or employees promoted to qualifying positions
          during the Plan year. Generally actual participation will commence at the
          beginning of the quarter following their hire, transfer or promotion. Ongoing
          participation in the Plan is at the discretion of the BFC Board of Directors.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | Participation in this plan does not alter eligibility for any other Bremer
          variable pay plan.
|-- | -------------------------------------------------------------------------------------------------------

# III. Basis of Awards

|A. | The Plan Performance Period (Performance Period) is three years,
          running from January 1 of the first year through December 31 of the third year
          except during the Plan Phase-In (refer to Section III.G).
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | After the Plan Phase-In (refer to Section III.G), 100% of the award for all
          Participants is based on Bremers three -year rolling average Return on
          Equity (ROE) compared to the three-year rolling ROE performance of
          the Federal Financial Institutions Examination Council (Peer
          Group).
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|C. | Awards are calculated as a percentage of the Participants Base Salary.
          Base Salary is the annual salary effective on the HR Information System on March
          1st of the first year of the Plan Performance Period
          (Base Salary). Award calculations will be completed by Corporate
          Finance. While actual award amounts will vary based on results, Target and
          Maximum awards by grade level are as follows:
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|  |  |  | 
|- |  |  | 
|
|  |  |  | 
|A |  |  | 
|  |  |  | 
|B |  |  | 
|  |  |  | 
|C |  |  | 
|  |  |  | 
|D |  |  | 
|  |  |  | 
|E |  |  | 
|  |  |  | 
|F |  |  | 
|  |  |  | 

*As a percentage of the Participants Base Salary.

|D. | Bremers percentile ranking within the Peer Group will result in the
          following awards as a percentage of Target:
|-- | --------------------------------------------------------------------------------------------------------------------------

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|          |  |  |        
|--------- |  |  | -------
|
|          |  |  |        
|Threshold |  |  | 45%tile
|          |  |  |        
|Partial   |  |  | 50%tile
|          |  |  |        
|Target    |  |  | 55%tile
|          |  |  |        
|Maximum   |  |  | 65%tile
|          |  |  |        

| | When
actual performance results are above Threshold and below Maximum, but between established
levels, the Award Level will be interpolated based on actual results achieved.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|E. | Participant awards are calculated at the conclusion of the Performance Period.
          Actual individual Participant awards are calculated as follows:
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------

|       |  |  |   |  |  |        
|------ |  |  | - |  |  | -------
|       |  |  |   |  |  |        
|Base   |  |  | x |  |  | Target 
|Salary |  |  |   |  |  | Award %
|       |  |  |   |  |  |        

|F. | Participants who become eligible during the Performance Period may receive an
               award pro-rated for the period of active employment in a Plan eligible position
               with the approval of the BFC Board of Directors.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|G. | Phase-In
|-- | --------

| | 1. | Participants will receive three awards during the first three years of this
               Plan. Performance Periods for each award increase by one year until the third
               award is for a full three-year Performance Period. The calculated award amount
               for each award will be pro-rated to reflect the Performance Period measured.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |   |  |                                    
| | - |  | -----------------------------------
|
| |   |  |                                    
| | 1 |  | January 1, 2003 - December 31, 2003
| |   |  |                                    
| | 2 |  | January 1, 2003 - December 31, 2004
| |   |  |                                    
| | 3 |  | January 1, 2003 - December 31, 2005
| |   |  |                                    

| | 2. | During the
               Phase-In, Participant awards are calculated following the conclusion of the Performance
               Period. Actual individual Participant awards are calculated as follows:
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|       |  |  |   |  |  |         |  | 
|------ |  |  | - |  |  | ------- |  | 
|       |  |  |   |  |  |         |  | 
|Base   |  |  | x |  |  | Target  |  | 
|Salary |  |  |   |  |  | Award % |  | 
|       |  |  |   |  |  |         |  | 

|H. | Any disputes regarding the performance measures and results, or the calculation
          of actual awards will be resolved at the discretion of the BFC Board of
          Directors.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|I. | The provisions of this Plan are subject to periodic review and possible change
          during the Plan year, with the approval of the BFC Board of Directors.
          Generally, any changes affecting the determination of performance results and
          the calculation of actual awards will become effective at the beginning of the
          next Performance Period.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|J. | Recapitalization, acquisition or divestiture decisions will be made by BFC
          executive management on the basis of shareholder value, evaluation of risk and
          strategic considerations. To the extent that such transactions materially affect
          BFC, affiliate, and/or business unit income and RORE, either positively or
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | negatively, Thresholds and performance Targets will be modified or
          transactions(s) will be excluded from calculation of the 2004 BFC and/or
          affiliate business line performance results. The provisions of this Plan are
          subject to review and possible change during the Plan year. In addition,
          individual awards payments may be adjusted at the discretion of the BFC Board or
          Directors to reflect the impact of any event that distorts actual results
          achieved. Any and all awards are paid at its discretion.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# IV. Award Payments

|A. | Awards are calculated and paid following the conclusion of the Performance
          Period. Awards are paid through the established Bremer Payroll process on the
          first scheduled payroll date following award determination, final approval by
          the BFC Board of Directors and submission of all awards to Bremer Payroll. The
          plan number (ELT001) is required on all requests for payments submitted
          to Bremer Payroll for processing.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | Payments will be deposited in the same manner as regular pay. Applicable
          withholdings will be deducted from the payment. Tax withholdings will be
          deducted based on applicable supplemental earnings regulations.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|C. | Awards may be deferred but cannot be assigned to other individuals.
|-- | -------------------------------------------------------------------

|D. | The BFC Board of Directors will review and approve all award recommendations
          prior to submission to Bremer Payroll for payment. The BFC Board of Directors
          may adjust awards at its discretion to reflect the impact of any event that
          distorts actual results achieved.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|E. | Earnings under this Plan are not regular or commission earnings and, therefore,
          are not eligible under Bremers health and welfare or retirement Plans.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|F. | Generally, awards are determined and paid according to this Plan document. Any
          exceptions require the written approval of the BFC Board of Directors.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

# V. Changes in Employment Status

|A. | Under most circumstances, Participants who terminate their employment with
          Bremer prior to the date of actual payment will receive no award. Participants
          who receive severance per Bremers HR Policy 250  Severance Pay may
          be eligible for prorated awards based on tenure in the qualifying position,
          overall performance level and actual results attained. Any exceptions require
          the written approval of the BFC Board of Directors.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | In the event a Participant dies; becomes disabled (as defined by Bremers
          Disability Plan provisions); retires (as defined by Bremers Retirement
          Plan provisions); or is on a leave of absence (as defined in Bremers
          policies), he/she may be eligible for an award at the conclusion of the
          Performance Period prorated to the nearest full quarter of actual Plan
          participation.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|C. | In the event of death, payment is issued in the name of the deceased and
          forwarded to the estate.
|-- | -----------------------------------------------------------------------------------------------------------

|D. | In the event a Participants transfers within the company or out of an eligible
          position; or his/her position is eliminated, he/she may be eligible for an award
          at the conclusion of the Performance Period prorated for the quarters of actual
          Plan participation.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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# VI. Ethical Standards

|A. | Participants are required to comply at all times with both the letter and spirit
          of applicable laws and regulations, as well as the Bremer Code of Conduct and to
          avoid illegal, dishonest, or unethical conduct, or any other actions that might
          reflect unfavorably on either their own integrity or that of Bremer.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | In addition, a Participant shall not pay, offer to pay, assign or give any part
          of his/her compensation or any other money or gift to any agent, customer, or
          representative of the customer or any other person as an inducement or reward
          for assistance in making a sale. Moreover, no rights under this Plan shall be
          assignable or subject to any pledge or encumbrance of any nature.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|C. | If a Participant fails to comply with both the letter and spirit of applicable
          laws and regulations, the Bremer Code of Conduct or the terms of this Plan
          document, his/her award may be deferred, reduced, or denied at the discretion of
          BFC Board of Directors and/or the Chief Executive Officer.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# VII. Adoption and Administration

|A. | General authority for Plan administration and responsibility for ongoing Plan
          administration rests with the BFC Board of Directors. The BFC Board of Directors
          has sole authority for decisions regarding interpretation of the terms of this
          Plan, including the right to amend the Plan in whole or in part. The Plan is
          effective commencing January 1, 2003.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|B. | No agreements or understandings will modify this Plan unless they are in writing
          and approved by the BFC Board of Directors. This Plan will be reviewed annually
          to determine the appropriateness of future continuation.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|C. | The BFC Board of Directors reserves the right to amend this Plan, in whole or in
          part, including termination of such Plan at any time. Such amendments may
          preclude or alter the amount or timing of any payments or all awards.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|D. | Participation in this Plan does not create any contract rights in the
          Participant, constitute neither a contract of employment nor a contractual
          agreement of payment, and shall not affect the right of Bremer to discharge,
          transfer, or change the position of a Participant. The Plan shall not be
          construed to limit or prevent Bremer from adopting or changing, from time to
          time, any rules, standards, or procedures affecting a Participants
          employment with Bremer or any Bremer affiliate, including those which affect
          award payments.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|E. | If any provision of this Plan is found to be illegal, invalid or unenforceable
          under present or future laws, that provision shall be severed from the Plan. If
          such a provision is severed, this Plan shall be construed and enforced as if the
          severed provision had never been a part of it and the remaining provisions of
          the Plan shall remain in full force and effect and shall not be affected by the
          severed provision or by its severance from this Plan. In place of any severed
          provision, there shall be added automatically as part of this Plan a provision
          as similar in terms to the severed provision as may be possible and be legal,
          valid, and enforceable.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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