Company: NODK
Filing Date: 2025-04-09
Form Type: DEF 14A
Source: 0001174947-25-000546
Chunk: 39

Company: NI Holdings, Inc.
Filing Date: 2025-04-09
Form: DEF 14A
Chunk 39
---
 performance share units under the long -termincentive plan vest based on achievement of a three -yearaverage of adjusted return on equity goals. (2)Adjusted return on equity is defined as GAAP basis net income with adjustments for stock compensation expense, unrealized gains and losses from the equity investment portfolio, and non -recurringitems not directly related to the operating performance of the Company, divided by GAAP basis shareholders’ equity with adjustments for the unrealized gain/loss balances related to the equity and fixed income investment portfolios. The performance period for the 2022 PSU awards ended on December 31, 2024, which was based on a three -yearcumulative adjusted book value per share from 2022 to 2024. Our adjusted book value per share decreased 14.6% from $14.98 to $12.80 over the performance period to fall short of the threshold goal of $16.85. As a result, NEOs who were granted PSUs in 2022 did not receive any shares of common stock from these awards upon vesting. Employee Stock Ownership Plan (“ESOP”) We have established the NI Holdings, Inc. ESOP. The ESOP is intended to be an employee stock ownership plan within the meaning of Code Section 4975(e)(7) and will invest primarily in our common stock. In connection with our initial public offering, Nodak Insurance Company loaned $2.4 million to the ESOP’s related trust (the “ESOP Trust”). The ESOP loan will be for a period of ten years and bears interest at the long -termApplicable Federal Rate effective on the closing date of the initial public offering (2.79% annually). The ESOP Trust used the proceeds of the loan to purchase shares in our initial public offering, which results in the ESOP Trust owning approximately 1.0% of our outstanding shares. The ESOP purchased the shares for investment and not for resale. Each employee of Nodak Insurance Company is automatically a participant in the ESOP if such employee is at least 21 years old and has completed a year of service with Nodak Insurance Company. Employees are not permitted to make any contributions to the ESOP. Perquisites and Other Generally Available Benefits and Compensation We provide medical, dental, basic life insurance, short -termdisability coverage, and paid time off, all on the same basis as other employees. The Company provides a 401(k) profit -sharingplan and an ESOP for eligible employees