Company: NODK
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001174947-25-000304
Chunk: 2261

Company: NI Holdings, Inc.
Filing Date: 2025-03-07
Form: 10-K
Item: Item 7A
Chunk 2261
---
 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.

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 in 2024, the RSUs vest equally over a three-year period. The RSUs granted to non-employee directors vest 100% on
the date of the next annual meeting of shareholders following the grant date. Dividend equivalents on RSUs are accrued during the vesting
period and paid in cash at the end of the vesting period but are subject to forfeiture until the underlying shares become vested. Participants
do not have voting rights with respect to RSUs.

The Company recognizes stock-based compensation
costs for RSUs based on the grant date fair value. The compensation costs are normally expensed over the vesting periods to