EX-10.4

                                  EXHIBIT 10.4

                          BREMER FINANCIAL CORPORATION

                   1996 EXECUTIVE INCENTIVE COMPENSATION PLAN

                President and CEO of Bremer Financial Corporation



Contained herein is a detailed outline of the Executive Incentive Compensation
Plan which has been designed for the President and CEO of Bremer Financial
Corporation.

A.       Purpose

         1)       To provide an annual incentive award to the President of
                  Bremer Financial Corporation for the achievement of Bremer
                  Financial Corporation's goals and objectives.

         2)       To focus attention on those activities which will positively
                  affect the Corporation's financial well-being.

B.       Eligibility

         1)       The President and CEO of Bremer Financial Corporation is the
                  participant in this plan.

C.       Plan Year

         1)       The Executive Incentive Compensation program will begin on
                  January 1 and will end on December 31.

D.       Payment of Award

         1)       At year end, formal reviews will be conducted by the Board of
                  Directors of Bremer Financial Corporation to determine and
                  measure performance. Upon completion of the measurement of the
                  participant's goals and objectives, an award will be approved.

         2)       Award payments will be made in the first quarter, following
                  the end of defined incentive plan year.

E.       Potential Awards

         1)       The target (planned) and maximum potential award, stated as a
                  percentage of base salary, will be:

                     Target                     Maximum
                     ------                     -------
                       30%                         60%


F.       Performance Measures and Determination of Award

         1)       100% of the target incentive award will be based upon
                  Corporate RORE*. The following table will be utilized to
                  determine the actual percentage of salary to be granted. When
                  performance falls between the RORE percentages shown,
                  interpolation will be utilized to determine the actual
                  percentage of salary to be awarded.

                      Corporate RORE               Percentage Award

                           11.00                          0.0%
                           12.00                         15.0%
                           13.00          TARGET         30.0%
                           14.00                         37.5%
                           15.00                         45.0%
                           16.00                         52.5%
                           17.00 and over                60.0%

                  * Restructuring costs will be amortized over the years 1996
                    and 1997 when calculating incentive.

G.       Administration

         1)       The plan shall be subject to the approval of the Board of
                  Directors of Bremer Financial Corporation which shall have
                  sole authority to establish the terms and conditions under
                  which the plan will be administered.

         2)       The Executive Incentive Compensation Plan and awards are not
                  transferable or assignable.

         3)       Award may be deferred.

H.       Administrative Procedures

         1)       Additions to Plan -- Eligible individuals will be added to the
                  plan at any time upon the approval of the Board of Directors
                  of Bremer Financial Corporation. However, the size of their
                  awards will be prorated by the number of months they were
                  eligible to receive an award. An example would be:

                  - Employee "A" is added to plan in mid-year so he has six (6)
                    months of eligible service.
                  - Calculated incentive award is $15,000
                  - $15,000 X 6/12 = $7,500

         2)       Terminations -- If the eligible participant terminates during
                  the plan year, the incentive award will be handled as follows:

                  - Voluntary resignations -- no incentive award.
                  - Involuntary terminations for cause -- no incentive award.
                  - Involuntary termination without cause -- incentive award
                  prorated by number of months service during current incentive
                  plan year, based on approval of Board of Directors of BFC. 
                  - Retirement/disability -- incentive award prorated by number 
                  of months of service during current incentive year.

         3)       Change in Position -- If the eligible participant has a change
                  in position during a plan year, the incentive award will be
                  calculated under both plan award levels and prorated by the
                  months of service at each level.

         4)       Interpolation -- When actual performance falls between cells
                  on the appropriate element, the individual completing the
                  formula should interpolate to the actual percentage to be
                  awarded.

         5)       Performance -- If a participant's performance rating for the
                  plan year is less than fully competent, the Board of Directors
                  of Bremer Financial Corporation has the authority to reduce
                  partially or totally the incentive payout that would normally
                  be due the participant.

         6)       Exceptions -- Upon occasion, there may be specific reasons for
                  exceptions to the incentive compensation program for events
                  beyond the control of the participant in the plan. The Board
                  of Directors of Bremer Financial Corporation has the authority
                  to determine and approve all such exceptions.

I.       Amendment and termination

         1)       The Board of Directors of Bremer Financial Corporation may at
                  any time amend the plan for the purposes of satisfying the
                  requirements of any changes in applicable laws or for any
                  purpose which may be permitted by law. The Board of Directors
                  of Bremer Financial Corporation may also terminate the plan at
                  any time. No such amendment or termination shall, however,
                  adversely affect the rights of any participant (without
                  his/her prior consent) to any award previously approved.

________________________________________________________________________________
NAME                                                                  

                 CALCULATION OF PRESIDENT OF BFC INCENTIVE AWARD
                 -----------------------------------------------
                                 Plan Year 1996

                                                                                
                                                            Percentage of Salary
                                                                To Be Awarded
F-1 - Corporate RORE                                        --------------------
--------------------
         Corporate RORE   __________%                                __________%



Total Award Earned as % of Salary                                    __________%
---------------------------------

X 1996 Salary                                                       $___________

= 1996 INCENTIVE AWARD                                              $___________



Approved:

____________________________       _____________________________________________
           Date                      Board of Directors of BFC