Company: NODK
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001174947-25-000721
Chunk: 32

Company: NI Holdings, Inc.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 for eligible employees. Westminster also sponsored a separate 401(k)
plan until the company was sold on June 30, 2024. American West and Battle Creek have no employees. The Company reported expenses related
to these plans totaling $320 and $346 during the three months ended March 31, 2025 and 2024, respectively.

All fees associated with the plans are deducted from the
eligible employee accounts.

The Company also offers a non-qualified deferred compensation
plan to key executives of the Company (as designated by the Board of Directors). The Company’s policy is to fund the plan by amounts
that represent the excess of the maximum contribution allowed by the Employee Retirement Income Security Act over the key executives’
allowable 401(k) contribution. The plan also allows employee-directed deferral of key executives’ compensation or incentive payments.
The Company reported expenses related to this plan totaling $134 and $198 during the three months ended March 31, 2025 and 2024, respectively.

22 

In connection with our initial public offering (“IPO”)
in March 2017, the Company established its Employee Stock Ownership Plan (the “ESOP”) within the meaning of Internal Revenue
Code Section 4975(e)(7) and invests solely in common stock of the Company.

Upon establishment of the ESOP, Nodak Insurance loaned $2,400 to the
ESOP’s related trust (the “ESOP Trust”). The ESOP loan was for a period of ten years, bearing interest at the long-term
Applicable Federal Rate effective on the closing date of the offering (2.79% annually). The ESOP Trust used the proceeds of the loan to
purchase shares in our IPO, which resulted in the ESOP Trust owning approximately 1.0% of the Company’s authorized shares. The ESOP
has purchased the shares for investment and not for resale.

The shares purchased by the ESOP Trust in the offering are held in
a suspense account as collateral for the ESOP loan. Nodak Insurance makes semi-annual cash contributions to the ESOP in amounts no smaller
than the amounts required for the ESOP Trust to make its loan payments to Nodak Insurance. While the ESOP makes two loan payments per
year, a pre-determined portion of the shares are released from the suspense account and allocated to participant accounts at the end of
the calendar year. This release and allocation occurs on an annual basis over the ten-year term of the