Company: NODK
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001174947-25-001142
Chunk: 141

Company: NI Holdings, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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 five million shares of preferred stock. No preferred shares are issued or outstanding.

17.Share-Based Compensation

The NI Holdings, Inc. 2020 Stock and Incentive Plan
(the “Plan”) is designed to promote the interests of the Company and its shareholders by aiding the Company in attracting
and retaining employees, officers, consultants, independent contractors, advisors, and non-employee directors capable of assuring the
future success of the Company, to offer such persons incentives to put forth maximum efforts for the success of the Company’s business
and to afford such persons an opportunity to acquire an ownership interest in the Company, thereby aligning the interests of such persons
with the Company’s shareholders.

The Plan provides for the grant of nonqualified stock
options, incentive stock options, restricted stock units (“RSUs”), stock appreciation rights, dividend equivalents, and performance
share units (“PSUs”) to employees, officers, consultants, advisors, non-employee directors, and independent contractors designated
by the Compensation Committee of the Board of Directors (the “Compensation Committee”). Awards made under the Plan are based
upon, among other things, a participant’s level of responsibility and performance within the Company.

The total aggregate number of shares of common stock
that may be issued under the Plan shall not exceed 1,000,000 shares, subject to adjustments as provided in the Plan. No eligible participant
may be granted any awards for more than 100,000 shares in the aggregate in any calendar year, subject to adjustment in accordance with
the Plan. The aggregate amount payable pursuant to all performance awards denominated in cash to any eligible person in any calendar year
is limited to $1,000 in value. Directors who are not also employees of the Company may not be granted awards denominated in shares that
exceed $150 in any calendar year.

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Restricted Stock Units

The Compensation Committee has awarded RSUs to non-employee
directors and select executives. RSUs are promises to issue actual shares of common stock at the end of a vesting period. The RSUs granted
to executives under the Plan are based on salary. RSUs granted prior to 2024 vest equally over a five-year period. Effective for executive
grants beginning in 2024, the RSUs vest equally over a three-year period. As approved by the Compensation Committee, all executive share-based
compensation granted in 2025 was awarded as RSUs. The RSUs granted to non-employee directors vest 100% on