EMC INSURANCE GROUP INC
DEFERRED BONUS COMPENSATION PLAN
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>exh10m.txt
<DESCRIPTION>DEFERRED BONUS COMPENSATION PLAN
<TEXT>
                                                                  EXHIBIT 10(m)
                                                                  ------------
                               EMCC Option It!
                               ---------------
                       Deferred Bonus Compensation Plan
                       --------------------------------


1.   Purpose of the Plan.  This Plan was formerly known as the Deferred
     Bonus Compensation Plan for Employers Mutual Casualty Company and
     Subsidiary and Affiliated Companies effective as of November 1,
     1985 (the "Prior Plan").  Pursuant to the terms of the Prior Plan,
     which permit its amendment at any time by the Board of Directors,
     this document is a restatement, in its entirety, of the Plan,
     generally effective January 1, 2001.  This Plan shall be known as
     the EMCC Option It! Deferred Bonus Compensation Plan.  The purpose
     of the Plan is to allow key employees of Employers Mutual Casualty
     Company ("EMCC" or "Company") to defer bonus income until
     retirement.  This Plan will aid the Company in retaining its
     present management and, should circumstances require it, to attract
     additions to management.

2.   Definitions.  As used herein, the following definitions shall apply:

     (a)  "Administrator" shall mean the Board, or the person or persons
          appointed by Board to serve under paragraph 17, below.

     (b)  "Award Date" shall mean the effective date of the Participant's
          Option Agreement.

     (c)  "Board" shall mean the Board of Directors of Employers Mutual
          Casualty Company.

     (d)  "Code" shall mean the Internal Revenue Code of 1986, as amended.

     (e)  "Company" shall mean Employers Mutual Casualty Company.

     (f)  "Employee" shall mean any employee of the Company.

     (g)  "Immediate Family" shall mean the Participant's spouse, a child or
          children, a grandchild or grandchildren, a parent, or a brother and
          sister.  For purposes of this definition, a legally adopted child of
          a Participant shall be treated as a child of such individual by
          blood.

     (h)  "Option" shall mean an option granted pursuant to this Plan to
          purchase one or more Shares.

     (i)  "Option Agreement" means the written agreement evidencing the award
          of an Option under the Plan.

     (j)  "Participant" shall mean any Employee who receives an Option under
          the Plan, as evidenced by an Option Agreement entered into between
          such Employee and the Company.

     (k)  "Plan" shall mean the EMCC Option It! Deferred Bonus Compensation
          Plan, as amended from time to time.

     (l)  "Shares" shall mean the shares of mutual funds, shares of common or
          preferred stock of a corporation listed or reported on a national
          securities exchange or quotation system, or shares of a regulated
          investment company, as designated and amended by the Board and
          referenced in Exhibit A.  Shares may include stock or other equity
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          interest or bonds in the Company or any company related to the
          Company if so permitted by the Board.  In no way, however, may
          Shares include units of any money market funds or other cash
          equivalents.  Shares subject to purchase pursuant to any Option
          shall also include any earnings and appreciation on such shares
          subsequent to the Award Date.

3.   Term of Plan.  The Plan shall become effective on the date it is adopted
     by the Board and shall continue in effect as amended from time to time
     until terminated pursuant to paragraph 19.

4.   Shares Subject to the Plan.  The aggregate number and type of Shares
     subject to Options will be fully described in each Option Agreement.

5.   Eligibility.  All Employees of the Company who are both in the group of
     employees determined to be part of the select group of management or
     highly compensated employees and are also a participant under a
     participating company's bonus income plan are eligible to receive options
     under the plan.  Employees of subsidiaries or affiliated corporations
     shall be eligible to participate in the Plan provided that such
     subsidiary or affiliated corporation, by action of its Board of Directors
     and with the approval of the Board of Directors of the Company, agrees to
     adopt the provisions of the Plan for the benefit of its eligible
     Employees.

6.   Grant of Options.  The Board shall determine the number of Shares to be
     offered from time to time and grant Options under the Plan based on the
     portion of his or her bonus that he or she elects to defer.  The grant of
     Options shall be evidenced by written Option Agreements containing such
     terms and provisions as are approved by the Board. The administrator of
     the Plan shall execute the Option Agreements on behalf of the Company
     upon instructions from the Board.

7.   Time of Grant of Options.  The date of grant of an Option under the Plan
     shall, for all purposes, be the date on which the Board awards the
     Option, as evidenced by the execution of an Option Agreement.

8.   Option Price.  The Option Price for each Share shall be expressed in each
     Option Agreement, provided, however, the Option Price shall be no lower
     than 25 percent of the fair market value of a Share on the date of grant
     of the Option. Fair market value on any day of reference shall be the
     closing price of the Share on such date, unless the Board, in its sole
     discretion shall determine otherwise in a fair and uniform manner.  For
     this purpose, the closing price of the Share on any business day shall be
     (i) if the Share is listed or admitted for trading on any United States
     national securities exchange, the last reported sale price of the Share
     on such exchange, as reported in any newspaper of general circulation,
     (ii) if the Share is not listed or admitted for trading on any United
     States national securities exchange, the average of the high and low sale
     prices of the Share for such day reported on the NASDAQ SmallCap Market
     or a comparable consolidated transaction reporting system, or if no sales
     are reported for such day, such average for the most recent business day
     within five business days before such day which sales are reported, or
     (iii) if neither clause (i) or (ii) is applicable, the average between
     the lowest bid and highest asked quotations for the Share on such day as
     reported by the NASDAQ SmallCap Market or the National Quotation Bureau,
     Incorporated, if at least two securities dealers have inserted both bid
     and asked quotations for the Share on at least 5 of the 10 preceding
     business days.

9.   Exercise.  Except as otherwise provided in an Option Agreement, all
     Options granted under the Plan will be vested at grant and therefore may
     be exercisable immediately, unless stated otherwise by the Board.
<page>
     The Option may be exercised in full or in part from the date of the grant
     as determined by the Option Agreement.

     Reinvested dividends shall be attributed proportionally to the property
     subject to the Option awards and will be purchased when the underlying
     award is exercised.  For example, if an original grant of an Option to
     purchase 500 shares (after the payment of the exercise price) generated
     100 additional shares on such 500 shares from reinvested dividends, an
     exercise of one-fourth of the originally granted options will result in
     the purchase (after the payment of the exercise price) of 150 shares in
     order to proportionally include the resulting reinvested dividends.

     In addition, all Options granted under the Plan may only be exercised
     subject to any other terms specified in the Option Agreement and if such
     terms conflict with the terms of this Plan, the terms of the Option
     Agreement control.

10.  Limitations on Option Disposition.  Any Option granted under the Plan and
     the rights and privileges conferred therewith shall not be sold,
     transferred, encumbered, hypothecated or otherwise anticipated by the
     Participant other than by will or the laws of descent and distribution.
     Options shall not be subject to, in whole or in part, the debts,
     contracts, liabilities, or torts of the Participant, nor shall they be
     subject to garnishment, attachment, execution, levy or other legal or
     equitable process.  However, a Participant may, after the consent of the
     Administrator has been obtained, transfer by gift any Option or part
     thereof to (a) a member or members of the Participant's Immediate Family
     and/or to a trust established for the benefit of an Immediate Family
     member or members, as defined in the Plan, or (b) a charitable
     organization described in Section 170(c) of the Internal Revenue Code of
     1986, as amended from time to time, provided such transfer is
     irrevocable, is made without consideration, and each Option so
     transferred by the Participant remains subject after transfer to the
     provisions of the Plan.

11.  Limitations on Option Exercise and Distribution.  In the event that the
     listing, registration or qualification of an Option or Shares on any
     securities exchange or under any state or federal law, or the consent of
     approval of any governmental regulatory body, or the availability of any
     exemption therefrom, is necessary as a condition of, or in connection
     with, the exercise of an Option, then the Option shall not be exercised
     in whole or in part until such listing, registration, qualification,
     consent or approval has been effected or obtained.  Notwithstanding any
     provision of the Plan to the contrary, the Company shall have no
     obligation or liability to deliver any Shares under the Plan unless such
     delivery would comply with all applicable laws and all applicable
     requirements of any securities exchange or similar entity.

12.  Option Financing.  Upon the exercise of any Option granted under the
     Plan, the Participant may instruct the Administrator to sell or deem to
     sell a number of Shares otherwise deliverable to the Participant and
     attributable to the exercise of the Option in order to pay the exercise
     price of the Option.  The Board may, in its sole discretion, make
     financing available to the Participant to facilitate the exercise of the
     Option, subject to such terms as the Board may specify.
<page>
13.  Withholding of Taxes.  The Company may make such provisions and take such
     steps as it may deem necessary or appropriate for the withholding of any
     taxes which is required by any law or regulation of any governmental
     authority, whether federal, state or local, domestic or foreign, to
     withhold in connection with any Option including, but not limited to, the
     withholding of the issuance of all or any portion of such Shares until
     the Participant reimburses the Company for the amount the Company is
     required to withhold with respect to such taxes, canceling any portion of
     such issuance in an amount sufficient to reimburse itself for the amount
     it is required to so withhold, or taking any other action reasonably
     required to satisfy the Company's withholding obligation.

14.  Modification of Option or Plan.  At any time and from time to time the
     Board may execute an instrument providing for the modification,
     extension, or renewal of any outstanding Option and or the Plan.

15.  Substitution of Option.  If a Participant has been granted an Option to
     purchase Shares under an Option Agreement, then except as limited by the
     terms of the Option Agreement, the Participant may direct that the Option
     be converted into an Option to purchase other Shares as permitted by the
     Option Agreement.  Such substitution shall only be allowed to the extent
     that, immediately following the substitution, the difference between the
     fair market value of the Shares subject to the substituted Option and the
     exercise price of the substituted Option is no greater than the
     difference which existed immediately prior to the substitution between
     the fair market value of the Shares subject to the original Option and
     the exercise price of the original Option.

16.  Prior Plan Participants.  Any Participant in the Prior Plan who has begun
     to receive benefits as of the effective date of this Plan shall continue
     to receive such benefits at such time and in such amounts as determined
     under the terms and conditions set forth in the Prior Plan.  Any
     Participant in the Prior Plan who has not begun to receive benefits as of
     the effective date of this Plan shall receive an Option where the
     difference between the fair market value of the Shares subject to the
     Option and the exercise price of the Option is equal to the fair market
     value of the Deferred Compensation Units and interest credited thereon
     under the terms of the prior plan.

17.  Administration of the Plan.  The Board, in its sole discretion, is
     authorized to select the Employees who will receive Options and to
     determine the number of Options and the number of Shares under each
     Option. The Board, or the person or persons appointed by the Board to
     serve as Administrator, shall be the Administrator of the Plan.  The
     Administrator, in its sole discretion, is authorized to interpret the
     Plan, to prescribe, amend and rescind rules and regulations relating to
     the Plan and to the Options granted under the Plan, to determine the form
     and content of Options to be issued under the Plan, and to make such
     other determinations and exercise such other power and authority as may
     be necessary or advisable for the administration of the Plan.  No fee or
     compensation shall be paid to any person for services as the
     Administrator (but this does not prevent the payment of salary otherwise
     payable to an employee of EMCC for other services as an employee of the
     Company).  The Administrator in its sole discretion may delegate and pay
     compensation for services rendered relating to the ministerial duties of
     plan administration including, but not limited to, selection of
     investments available under the Plan.  Any determination made by the
     Administrator pursuant to the powers set forth herein are final, binding
     and conclusive upon each Participant and upon any other person affected
     by such decision, subject to the claims procedure hereinafter set forth.
     The Administrator shall decide any question which may arise regarding
     the rights of Directors, Participants and beneficiaries, and the amounts
     of their respective interests, adopt such rules and to exercise such
<page>
     powers as the Administrator may deem necessary for the administration of
     the Plan, and exercise any other rights, powers or privileges granted to
     the Administrator by the terms of the Plan.  The Administrator shall
     maintain full and complete records of its decisions.  Its records shall
     contain all relevant data pertaining to the Participant and his rights
     and duties under the Plan.  The Administrator shall have the duty to
     maintain Account records for all Participants.  The Administrator shall
     cause the principal provisions of the Plan to be communicated to the
     Participants, and a copy of the Plan and other documents shall be
     available at the principal office of the Company for inspection by the
     Participants at reasonable times determined by the Administrator.

18.  Continued Employment Not Presumed.  Nothing in the Plan or any document
     describing it nor the grant of an Option via an Option Agreement shall
     give any Participant the right to continue in employment with the Company
     or affect the right of the Company to terminate the employment of any
     such person with or without cause.

19.  Amendment and Termination of the Plan or Option Agreement  The Board, in
     its sole discretion, may amend, suspend or discontinue the Plan or Option
     Agreement.  No amendment, suspension, or discontinuance shall impair the
     rights of any Participant except to the extent necessary to comply with
     any provision of federal or applicable state laws or except to the extent
     necessary to prevent detriment to the Company as so determined by the
     Board.

20.  Governing Law.  The Plan shall be governed by and construed in accordance
     with the laws of Iowa.

21.  Severability of Provisions.  Should any provision of the Plan be
     determined to be invalid, illegal or unenforceable, such invalidity,
     illegality or unenforceability shall not affect the remaining provisions
     of the Plan, but shall be fully severable, and the Plan shall be
     construed and enforced as if such provision had never been inserted
     herein.

22.  Hedge of Liability Created by the Option Plan.  At the sole discretion of
     the Board, the liability created by the exercise of the Options issued
     pursuant to the Plan may be offset by the Company entering into a hedging
     transaction.  The hedging transaction may consist of the Company
     purchasing all or part of the Shares subject to the Options issued
     pursuant to the Plan, at date of grant of the Options or at any time
     during the Option exercise period.

23.  Claims Procedure.  In general, any claim for benefits under the Plan
     shall be filed by the Participant or beneficiary ("claimant") on the form
     prescribed for such purpose with the Administrator.  If a claim for
     benefits under the Plan is wholly or partially denied, notice of the
     decision shall be furnished to the claimant by the Administrator within a
     reasonable period of time after receipt of the claim by the
     Administrator.  The claims procedure shall be as follows:

     (a)  Any claimant who is denied a claim for benefits shall be furnished
          written notice setting forth:

          (i)    The specific reason or reasons for the denial;
          (ii)   Specific reference to the pertinent provision of the Plan
                 upon which the denial is based;
          (iii)  A description of any additional material or information
                 necessary for the claimant to perfect the claim; and
          (iv)   An explanation of the claim review procedure under the Plan.

<page>

     (b)  In order that a claimant may appeal a denial of a claim, the
          claimant or the claimant's duly authorized representative may:

          (i)    Request a review by written application to the Administrator,
                 or its designate, no later than sixty (60) days after receipt
                 by the claimant of written notification of denial of a claim;
          (ii)   Review pertinent documents; and
          (iii)  Submit issues and comments in writing.

     (c)  A decision on review of a denied claim shall be made not later than
          sixty (60) days after receipt of a request for review, unless
          special circumstances require an extension of time for processing,
          in which case a decision shall be rendered within a reasonable
          period of time, but not later than one hundred and twenty (120) days
          after receipt of a request for review.  The decision on a review
          shall be in writing and shall include the specific reason(s) for the
          decision and the specific reference(s) to the pertinent provisions
          of the Plan on which the decision is based.

24.  Designation of Beneficiary.  A Participant, by filing the prescribed form
     with the Administrator, may designate one or more beneficiaries and
     successor beneficiaries who shall be given the right to exercise Options
     in accordance with the terms of the Plan in the event of the
     Participant's death.  In the event the Participant does not file a form
     designating one or more beneficiaries, or no designated beneficiary
     survives the Participant, the Option shall be exercisable by the
     individual to whom such right passes by will or the laws or descent and
     distribution.

25.  Intent.  The Plan is intended to be unfunded and maintained by the
     Company solely to provide options to a select group of management or
     highly compensated employees as such group is described under Sections
     201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
     Security Act of 1974 ("ERISA") as interpreted by the U.S. Department of
     Labor.  The Plan is not intended to be a plan described in Sections 01(a)
     or 457 of the Code.  The obligation of the Company to deliver Shares
     subject to the Options granted under this Plan constitutes nothing more
     than an unsecured promise of the Company to fulfill such obligations and
     any property of the Company that may be set aside to permit it to fulfill
     such obligations under the Plan shall, in the event of the Company's
     bankruptcy or insolvency, remain subject to the claims of the Company's
     general creditors until such Options are exercised.
                              ******************
     As evidence of its adoption of the Plan, the Company has caused this
instrument to be signed by its officer of representative duly authorized on
this  1 day of  July, 2000.
    ----        ----                         Employers Mutual Casualty Company


                                             By:  /s/Doug Zmolek
                                                ---------------------

                                             Title: Vice President
<PAGE>                                              --------------

                               Exhibit A

           Shares Available by the Company for Grant or Substitution


Description
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See attached list.

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