Exhibit 10.9


 


INCENTIVE PLAN DESIGN


 


	INCENTIVE PLAN	COMPONENTS
	Plan
    Objectives	·        
        Reward performance.

        ·        
        Encourage teamwork.

        ·        
        Create a high performance culture.

        ·        
        Focus everyone on what’s important to the success of the company.

	Participants	·        
        Employees with employment date on or before January 1 and employed on December 31 of the plan year.

        ·        
        Agents at Associate, Partner or Senior Partner level.

        ·        
        Employees on probation status are excluded.

	Performance
    Period	·        
    Results from January 1 – December 31.
	Payout
    Frequency	·        
    Annually – on or prior to April 15.
	Performance
    Tracking	·        
    Monthly report furnished to employees, agents, and board of directors.
	Establishment
    of Goals	·        
    Recommendation by senior staff to management committee.
	Verification
    of Goals	·        
    Establish criteria for independent auditors to review and certify to management committee
    that goals have been met.
	Payout Calculation	Nodak Mutual Group must achieve a net underwriting
        gain and the Return on Equity must equal or exceed 5.0% or no compensation is paid.

        ·        
        Total of five goals:

        1.       
        Financial Strength

        2.       
        Retention

        3.       
        Growth (Life/New Policies/Units/Inforce Policies)

        4.       
        Loss Ratio

        5.       
        Expense Ratio

        ·        
        Agents

        o         Eligibility
        and details are contained in the Agent Recognition Program.

        ·        
        Eligible Employees*

        o         Employees,
        hired on or before January 1, are eligible to receive 2% for each goal achieved multiplied by their earned salary for
        the calendar year (does not include bonuses or any other compensation) multiplied by the bonus percentage based upon the
        table below.

        










	 	 	Return on Equity	 	Payment	 
	 	 	5.0% to 7.99%	 	25% of bonus	 
	 	 	8.0% to 9.99%	 	50% of bonus	 
	 	 	10.0% to 11.49%	 	75% of bonus	 
	 	 	11.5% and greater	 	100% of bonus	 







	  	

        o    
        Employees hired after January 1 and prior to July 1 of the plan year are eligible to receive 1% for each goal achieved
        multiplied by the earned salary for the calendar year (does not include bonuses or any other compensation) multiplied
        by the bonus percentage based upon the table above.

        o    
        Employees hired after July 1 are not eligible until the following year.

        *CEO – 15% per goal, CFO & VP Operations
        = 10% per goal, Director/Manager Level = 4% per goal, All Other = 2% per goal







	Evaluation
    of Effectiveness	·        
    Complete an evaluation annually to determine changes needed and if plan is achieving
    objectives.
	Estimated
    Potential Payout	·        
    $0 - $2,000,000
	Mitigating
    Circumstances	·        
    Based on independent auditor recommendations the management committee may consider mitigating
    circumstances.



 



     


     


    

 


NODAK MUTUAL INSURANCE COMPANY

2015 CORPORATE GOALS


 


NOTE: The Incentive Bonus Plan is dependent upon first achieving
the Return on Equity goal.


 


	 	 	2015	 	 	2015 Goal	 
	Return on Equity	 	 	16.39	%	 	 	9.90	%



 


FINANCIAL STRENGTH (Projected Net Premium/Current Surplus)


 


	Year	 	2015	 	 	2015 Goal	 
	Surplus (000's Omitted)	 	$	141,331	 	 	$	136,080	 
	Premium-to-Surplus Ratio	 	 	0.93	 	 	 	1.10	 



 


CORPORATE POLICY PRIORITY #1: Customer Service (Based
on Nodak Mutual Only)


 


	VEHICLE/POLICY RETENTION
	Line of Business	 	12 Months Ending

 12/31/2015	 	 	2015 Goal	 
	Auto (Vehicles)	 	 	96.2	%	 	 	97.2	%
	Home	 	 	88.9	%	 	 	89.2	%
	Farm	 	 	95.9	%	 	 	95.6	%
	Total	 	 	95.2	%	 	 	96.0	%
	 	 	 	 	 	 	 	 	 
	Claims Survey Results	 	 	95.6	%	 	 	95.0	%



 


* Nodak Mutual results only - Overall Claims Service Satisfaction


 


CORPORATE POLICY PRIORITY #2: Growth (Based on Nodak
Mutual Only)


 


	VEHICLES/POLICIES-IN-FORCE
	Line of Business	 	2015	 	 	2015 Goal	 
	Auto Vehicles	 	 	90,376	 	 	 	91,158	 
	Home	 	 	14,101	 	 	 	14,351	 
	Farm	 	 	6,929	 	 	 	6,954	 
	Total All Lines	 	 	111,406	 	 	 	112,462	 



 


	NEW BUSINESS POLICIES/VEHICLES INSURED
	Line of Business	 	12 Months Ending

12/31/2015	 	 	2015 Goal	 
	Auto Vehicles	 	 	4,669	 	 	 	4,400	 
	Home	 	 	1,895	 	 	 	1,900	 
	Farm	 	 	272	 	 	 	300	 
	Total All Lines	 	 	6,836	 	 	 	6,600	 



 


	LIFE PRODUCTION
	Apps/Premium	 	12 Months Ending 

12/31/2015	 	 	2015 Goal	 
	Apps	 	 	522	 	 	 	575	 
	Premium	 	$	924,841	 	 	$	915,000	 



 


CORPORATE POLICY PRIORITY #3: Loss Ratio - Nodak Mutual
Group (incl. American West & Battle Creek)


 


	LOSS RATIO
	Line of Business	 	2015 YTD	 	 	2015 Goal	 
	Net Loss Ratio - All Lines	 	 	52.4	%	 	 	67.5	%



 


CORPORATE POLICY PRIORITY #4: Efficient Operations


 


	EXPENSE RATIO
	Expense	 	12 Months Ending

12/31/2015	 	 	2015 Goal	 
	UW & General Expense (W)	 	 	26.2	%	 	 	20.1	%
	LAE (E)	 	 	5.4	%	 	 	6.4	%
	Total	 	 	31.6	%	 	 	26.9	%