Document:

Exhibit 4.1

 

CUSIP NO. ___________

 

	COMMON STOCK	COMMON STOCK
	CERTIFICATE NO.	SHARES

 

NI HOLDINGS, INC.

ORGANIZED UNDER THE LAWS OF THE STATE OF
NORTH DAKOTA

 

[SPECIMEN]

 

is the owner of:

 

FULLY PAID AND NONASSESSABLE SHARES OF COMMON
STOCK, 

$0.01 PAR VALUE, OF NI HOLDINGS, INC.

a North Dakota corporation.

 

The shares represented by this certificate are
transferable only on the stock transfer books of NI Holdings, Inc. (the “Company”) by the holder of record hereof,
or by such holder’s duly authorized attorney or legal representative, upon the surrender of this certificate properly endorsed.
This certificate and the shares represented hereby are issued and shall be held subject to all the provisions contained in the
Company’s official corporate papers filed with the Department of State of the State of North Dakota (copies of which are
on file with the Transfer Agent), to all of the provisions the holder by acceptance hereof assents.

 

This certificate is not valid unless countersigned
and registered by the Transfer Agent and Registrar.

 

IN WITNESS WHEREOF, NI HOLDINGS, INC.
has caused this certificate to be executed by the signatures of its duly authorized officers and has caused its corporate seal
to be hereunto affixed.

 

Dated:

[SEAL]

 

	Treasurer and Chief Financial Officer	 	President and Chief Executive Officer

 

     

     

    

 

NI HOLDINGS, INC.

 

The shares represented by this certificate are
subject to a limitation contained in the articles of incorporation (the "Articles") to the effect that except as provided
therein no person or entity may acquire more than 10% of the issued and outstanding shares of common stock (“Voting Control”)
of the Company. If Voting Control of the corporation is acquired in violation of such limitation, all shares in excess of Voting
Control shall be considered from and after the date of acquisition to be “excess shares”, and all shares deemed to
be excess shares shall no longer be entitled to vote on any matter or to take other shareholder action.

 

Preferred stock may be issued from time to time
as a class without series or, if so determined by the board of directors of the Company, either in whole or in part, in one or
more series. The board of directors of the Company has the authority to fix and determine, by resolution, the voting powers, full
or limited, or no voting power, and such designations, preferences and relative, participating, optional, or other special rights,
if any, and the qualifications, limitations, or restrictions thereof, if any, including specifically, but not limited to, the dividend
rights, conversion rights, redemption rights and liquidation preferences, if any, of any wholly unissued series of preferred stock
(or the entire class of preferred stock if none of such shares have been issued), the number of shares constituting any such series
and the terms and conditions of the issue thereof. The Company will furnish to any shareholder upon request and without charge
a full description of each class of stock and any series thereof.

 

The shares represented by this certificate may
not be cumulatively voted in the election of directors of the Company. The Articles also require either (a) the affirmative vote
of holders of at least eighty percent (80%) of the issued and outstanding shares of common stock of the Company entitled to vote
or (b) the affirmative vote of sixty-six and two-thirds percent (66 2/3%) of the members of the board of directors of the Company
and the affirmative vote of holders of at least a majority of the votes which all shareholders of the Company are then entitled
to cast to amend provisions of the Articles with respect to the approval of certain transactions.

 

     

     

    

 

The following abbreviations, when used in the inscription on the
face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	TEN COM	-	as tenants in common	UNIF GIFTS MIN ACT - 	__________ custodian ________
	TEN ENT	-	as tenants by the entireties	 	    (Cust)                             (Minor)
    
	JT TEN	-	as joint tenants with right of	 	 
	 	 	survivorship and not as tenants 	 	under Uniform Gifts to Minors Act
	 	 	in common	 	 
	 	 	 	 	(State)

 

Additional abbreviations may also be used though
not in the above list.

 

FOR VALUE RECEIVED, __________ hereby sell, assign and transfer
unto

 

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFICATION NUMBER OF ASSIGNEE

 

[                                         ]

 

	 
	Please print or typewrite name and address including postal zip code of assignee.

 

__________________________________________________ shares of
the common stock represented by this certificate and do hereby irrevocably constitute and appoint ______________________________________________________________________________,
attorney, to transfer the said stock on the books of the within-named corporation with full power of substitution in the premises.

 

	DATED  	 	 	 
	 	NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the certificate in every particular without alteration or enlargement or any change whatever.

 

	SIGNATURE GUARANTEED:	 	 
	 	THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN ELIGIBLE GUARANTOR  INSTITUTION, (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15Exhibit 10.1

 

NI HOLDINGS,
INC.

Stock Incentive Plan

 

     

     

    

 

NI HOLDINGS,
INC.

Stock Incentive Plan

 

TABLE OF CONTENTS

 

	ARTICLE	 	PAGE
	 	 	 
	ARTICLE 1.	PURPOSE OF THE PLAN; TYPES OF AWARDS	1
	 	 	 
	ARTICLE 2.	DEFINITIONS	1
	 	 	 
	ARTICLE 3.	ADMINISTRATION	6
	 	 	 
	ARTICLE 4.	COMMON STOCK SUBJECT TO THE PLAN	7
	 	 	 
	ARTICLE 5.	ELIGIBILITY	8
	 	 	 
	ARTICLE 6.	STOCK OPTIONS IN GENERAL	9
	 	 	 
	ARTICLE 7.	TERM, VESTING AND EXERCISE OF OPTIONS	9
	 	 	 
	ARTICLE 8.	EXERCISE OF OPTIONS FOLLOWING TERMINATION OF EMPLOYMENT OR SERVICE	11
	 	 	 
	ARTICLE 9.	RESTRICTED STOCK	12
	 	 	 
	ARTICLE 10.	ADJUSTMENT PROVISIONS	13
	 	 	 
	ARTICLE 11.	GENERAL PROVISIONS	14

 

     

     

    

 

ARTICLE
1.  PURPOSE OF THE PLAN; TYPES OF AWARDS

 

1.1  Purpose.  The NI Holdings,
Inc. Stock Incentive Plan, effective as of _______________________, 2016, is intended to provide selected employees and non-employee
directors of NI Holdings, Inc. (the “Corporation”) and its Subsidiaries (as hereinafter defined) with an opportunity
to acquire Common Stock of the Corporation. The Plan is designed to help the Corporation attract, retain, and motivate employees
and non-employee directors to make substantial contributions to the success of the Corporation’s business and the businesses
of its Subsidiaries. Awards made under the Plan are based upon, among other things, a participant’s level of responsibility
and performance within the Corporation and its Subsidiaries.

 

1.2  Authorized Plan Awards.  Incentive
Stock Options, Nonqualified Stock Options, and Restricted Stock may be awarded within the limitations of the Plan herein described.

 

ARTICLE
2.  DEFINITIONS

 

2.1  “Agreement.”  A written
or electronic agreement between the Corporation and a Participant evidencing an Award. A Participant may be issued one or more
Agreements from time to time, reflecting one or more Awards.

 

2.2  “Award.”  An award of
a Stock Option or of Restricted Stock.

 

2.3  “Board.”  The Board of
Directors of the Corporation.

 

2.4  “Change in Control.”
 Except as otherwise provided in an Agreement, the first to occur of any of the following events:

 

(a)  any “Person” (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act), except for (i) any of the Corporation’s employee benefit plans,
or any entity holding the Corporation’s voting securities for, or pursuant to, the terms of any such plan (or any trust forming
a part thereof) (collectively, the “Benefit Plans”) or (ii) Nodak Mutual Group, Inc., is or becomes the beneficial
owner, directly or indirectly, of the Corporation’s securities representing 25% or more of the combined voting power of the
Corporation’s then outstanding securities other than pursuant to a transaction excepted in Clause (b);

 

(b)  the stockholders of the Corporation approve
a merger, consolidation, or other reorganization of the Corporation, unless:

 

(i)  under the terms of the agreement
providing for such merger, consolidation, or reorganization, the stockholders of the Corporation immediately before such merger,
consolidation, or reorganization, will own, directly or indirectly immediately following such merger, consolidation, or reorganization,
at least [50%] of the combined voting power of the outstanding voting securities of the Corporation resulting from such merger,
consolidation, or reorganization (the “Surviving Corporation”);

 

    	 	1	 

     

    

 

(ii)  under the terms of the agreement
providing for such merger, consolidation, or reorganization, the individuals who were members of the Board immediately prior to
the execution of such agreement will constitute at least a majority of the members of the board of directors of the Surviving Corporation
after such merger, consolidation, or reorganization; and

 

(iii)  based on the terms of the agreement
providing for such merger, consolidation, or reorganization, no Person (other than (i) the Corporation or any Subsidiary of
the Corporation, (ii) any Benefit Plan, (iii) the Surviving Corporation or any Subsidiary of the Surviving Corporation,
or (iv) any Person who, immediately prior to such merger, consolidation, or reorganization had beneficial ownership of 25%
or more of the then outstanding voting securities) will have beneficial ownership of 25% or more of the combined voting power of
the Surviving Corporation’s then outstanding voting securities;

 

(c)  a plan of liquidation or dissolution of the
Corporation, other than pursuant to bankruptcy or insolvency laws, is adopted; or

 

(d)  during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board cease for any reason to constitute at least a majority of
the Board unless the election, or the nomination for election by the Corporation’s stockholders, of each new director was
approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period.

 

Notwithstanding Clause (a), a Change in
Control shall not be deemed to have occurred if a Person becomes the beneficial owner, directly or indirectly, of the Corporation’s
securities representing 25% or more of the combined voting power of the Corporation’s then outstanding securities solely
as a result of the Corporation’s acquisition of its voting securities that, by reducing the number of shares outstanding,
increases the proportionate number of shares beneficially owned by such Person to 25% or more of the combined voting power of the
Corporation’s then outstanding securities; provided, however, that if a Person becomes a beneficial owner of 25% or more
of the combined voting power of the Corporation’s then outstanding securities by reason of share purchases by the Corporation
and shall, after such share purchases by the Corporation, become the beneficial owner, directly or indirectly, of any additional
voting securities of the Corporation (other than as a result of a stock split, stock dividend or similar transaction), then a Change
in Control of the Corporation shall be deemed to have occurred with respect to such Person under Clause (a). In no event shall
a Change in Control of the Corporation be deemed to occur under Clause (a) by virtue of the acquisition of the Corporation’s
securities by Benefit Plans.

 

2.5  “Code.”  The Internal
Revenue Code of 1986, as amended.

 

2.6  “Code of Conduct.”  The
policies and procedures related to employment of Employees or Non-Employee Directors set forth in the Corporation’s employee
handbook or any similar document, as amended and updated from time to time. The term “Code of Conduct” shall also include
any other policy or procedure that may be adopted by the Corporation or a Subsidiary and communicated to Employees and/or Non-Employee
Directors.

 

    	 	2	 

     

    

 

2.7  “Committee.”  The Compensation
Committee of the Board, which Committee shall be composed of two or more members of the Board, all of whom are (a) “non-employee
directors” as such term is defined under the rules and regulations that the Securities and Exchange Commission may adopt
from time to time pursuant to Section 16(b) of the Exchange Act, (b) “outside directors” within the meaning
of Code Section 162(m), and (c) independent under any applicable stock listing agreement with, or rules of, any exchange or
electronic trading system. The Board may from time to time remove members from, or add members to, the Committee. The Board shall
fill all vacancies on the Committee, however caused.

 

2.8  “Common Stock.”  The
common stock of the Corporation (par value $0.01 per share) as described in the Corporation’s Articles of Incorporation,
or such other stock as shall be substituted therefor.

 

2.9  “Continuous Service.”
 A Participant’s service with the Corporation or a Subsidiary, whether as an Employee or Director, is not interrupted or terminated.
A Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Corporation or a Subsidiary as an Employee or Director or a change in the entity for which
the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous
Service; provided further that if any Award is subject to Code Section 409A, this sentence shall only be given effect to the extent
consistent with Code Section 409A. The Committee or its delegate, in its sole discretion, may determine whether Continuous Service
shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave,
or any other personal or family leave of absence.

 

2.10  “Corporation.”  NI Holdings,
Inc., a North Dakota corporation.

 

2.11  “Disability.”  “Permanent
and total disability” (as defined in Code Section 22(e)(3)).

 

2.12  “Employee.”  Any common
law employee of the Corporation or a Subsidiary. An Employee does not include any individual who: (i) does not receive payment
for services directly from the Corporation’s or a Subsidiary’s payroll; (ii) is employed by an employment agency
that is not a Subsidiary; or (iii) who renders services pursuant to a written arrangement that expressly provides that the
service provider is not eligible for participation in the Plan, regardless if the Internal Revenue Service or a court of law later
determines such person to be a common law employee.

 

2.13  “Exchange Act.”  The
Securities Exchange Act of 1934, as amended.

 

2.14  “Fair Market Value.”
 The Fair Market Value of a share of Common Stock means:

 

(a) If the Common Stock is listed on an established
securities market (within the meaning of Code Section 409A), the Fair Market Value per share of the Common Stock shall be
the closing sale price for such a share on the relevant day. If no sale of Common Stock has occurred on that day, the Fair Market
Value shall be determined by reference to such price for the next preceding day on which a sale occurred.

 

    	 	3	 

     

    

 

(b)  In the event that the Common Stock is not
traded on an established securities market (within the meaning of Code Section 409A), then the Fair Market Value per share
of Common Stock will be the price that the Committee establishes in good faith by application of a reasonable valuation method
(within the meaning of Code Section 409A).

 

(c)  Notwithstanding the foregoing, (i) in the
event of any change in law or interpretation of law, including but not limited to Code Section 409A and the regulations and
guidance promulgated thereunder, the Fair Market Value shall be determined in accordance with such law or interpretation of law
and (ii) in connection with determining the Fair Market Value, the Committee may use any source that it deems reliable; and its
determination shall be final and binding on all affected persons, absent clear error.

 

2.15  “Incentive Stock Option.”
 A Stock Option intended to satisfy the requirements of Code Section 422(b).

 

2.16  “Non-Employee Director.”
 A member of the Board, or of the board of directors of a Subsidiary, or any other body performing the function of a board of directors,
who is not an Employee.

 

2.17  “Nonqualified Stock Option.”
 A Stock Option which does not satisfy the requirements of Code Section 422(b).

 

2.18  “Optionee.”  A Participant
who is awarded a Stock Option pursuant to the provisions of the Plan.

 

2.19 “Participant.” An Employee
or Non-Employee Director to whom an Award has been made and remains outstanding.

 

2.20  “Performance Criteria.”
 Any objective determination based on one or more of the following areas of performance of the Corporation, a Subsidiary, or any
division, department, or group of either: (a) gross or net earnings or income, (b) cash flow, (c) gross or net revenue,
(d) financial ratios, (e) market performance, (f) stockholder return, (g) operating income or profits (including
earnings before or after interest, taxes, depreciation, and amortization), (h) basic or diluted earnings per share, (i) return
on assets, (j) return on equity, (k) return on investment, (l) stock price (including gross measures and total shareholder
return), (m) budget or expense management, (n) systems conversion, (o) special projects as the Committee may determine,
(p) increases in book value, (q) enterprise value, (r) margins, (s) acquisition integration initiatives, (t) loss ratio, (u)
expense ratio, and (v) combined ratio. The Committee shall establish the applicable Performance Criteria prior to the issuance
of a Performance Award.

 

2.21  “Performance Goal.”
 One or more goals that the Committee may establish, with respect to an Award intended to constitute a Performance Award, that relate
to one or more Performance Criteria. The Committee may specify a period of time to which a Performance Goal may relate. The terms
of the applicable Performance Goal(s) shall be set forth in an applicable Agreement at the time the related Performance Award is
made.

 

    	 	4	 

     

    

 

2.22  “Performance Award.”
 An Award, the vesting or receipt without restriction of which is conditioned on the satisfaction of one or more Performance Goals.

 

2.23  “Plan.”  The NI Holdings,
Inc. Stock Incentive Plan.

 

2.24  “Restricted Stock.”
 An Award of Common Stock pursuant to the provisions of the Plan, which award is subject to such restrictions and other conditions,
as the Committee may specify at the time of such award and set forth in an applicable Agreement.

 

2.25  “Securities Act.”  The
Securities Act of 1933, as amended.

 

2.26  “Stock Option” or “Option.”
 An Award of a right to purchase Common Stock pursuant to the provisions of the Plan.

 

2.27  “Subsidiary.”  A subsidiary
corporation, as defined in Code Section 424(f), that is a subsidiary of a relevant corporation.

 

2.28  “Termination or Dismissal For
Cause.”  “Termination of Dismissal For Cause” shall have the meaning ascribed to such term (or a similar term)
set forth in an applicable employment, severance, or other similar agreement between an individual and the Corporation or a Subsidiary,
or if no such agreement exists, the Corporation’s or Subsidiary’s termination or dismissal of a Participant after:

 

(a)  any government regulatory agency recommends
or orders in writing that the Corporation or a Subsidiary terminate the employment of such Employee or dismiss him or her of his
or her duties;

 

(b)  such Employee or Non-Employee Director is
convicted of or enters a plea of guilty or nolo contendere to a felony, a crime of falsehood, or a crime involving fraud or moral
turpitude, or the actual incarceration of the Employee or Non-Employee Director for a period of 45 consecutive days;

 

(c)  in the case of an Employee, the Committee’s
determination that such Employee willfully failed to follow the lawful instructions of the Board or any officer of the Corporation
or a Subsidiary after such Employee’s receipt of written notice of such instructions, other than a failure resulting from
the Employee’s incapacity because of a Disability;

 

(d)  the Committee’s determination that the
willful or continued failure by such Employee or Non-Employee Director to substantially and satisfactorily perform his duties with
the Corporation or a Subsidiary (other than any such failure resulting from the Employee’s or Non-Employee Director’s
Disability), within a reasonable period of time after a demand for substantial performance or notice of lack of substantial or
satisfactory performance is delivered to the Employee or Non-Employee Director, which demand identifies the manner in which the
Employee or Non-Employee Director has not substantially or satisfactorily performed his or her duties; or

 

    	 	5	 

     

    

 

(e)  the Committee’s determination that such
Employee or Non-Employee Director has failed to conform to an applicable Code of Conduct.

 

For purposes of the Plan, no act, or failure
to act, on an Employee’s or Non-Employee Director’s part shall be deemed “willful” unless done, or omitted
to be done, by such Employee or Non-Employee Director not in good faith and without reasonable belief that such Employee’s
or Non-Employee Director’s action or omission was in the best interest of the Corporation or a Subsidiary.

 

ARTICLE
3.  ADMINISTRATION

 

3.1  Administration of the Plan.  The
Committee shall administer the Plan.

 

3.2  Powers of the Committee.

 

(a)  The Committee shall be vested with full authority
to make such rules and regulations as it deems necessary or desirable to administer the Plan and to interpret the provisions of
the Plan, unless otherwise determined by a majority of the disinterested members of the Board. Any determination, decision, or
action of the Committee in connection with the construction, interpretation, administration, or application of the Plan shall be
final, conclusive, and binding upon all Participants and any person claiming under or through a Participant, unless otherwise determined
by a majority of the disinterested members of the Board.

 

(b)  Subject to the terms, provisions, and conditions
of the Plan and subject to review and approval by a majority of the disinterested members of the Board, the Committee shall have
exclusive jurisdiction to:

 

(i)  determine and select the Employees
and Non-Employee Directors to receive Awards (it being understood that more than one Award may be made to the same person);

 

(ii)  determine the number of shares
subject to each Award;

 

(iii)  determine the date or dates
when the Awards will be made;

 

(iv)  determine the exercise price
of shares subject to an Option in accordance with Article 6;

 

(v)  determine the date or dates when
an Option may be exercised within the term of the Option specified pursuant to Article 7;

 

(vi)  determine whether an Option constitutes
an Incentive Stock Option or a Nonqualified Stock Option;

 

(vii)  determine the Performance Criteria
and establish Performance Goals with respect thereto, to be applied to an Award; and

 

    	 	6	 

     

    

 

(viii)  prescribe the form, which shall
be consistent with the Plan document, of the Agreement evidencing any Awards made under the Plan.

 

3.3  Indemnification.  In addition to
such other rights of indemnification as the Board or the Committee or a member of the Board of the Committee may have, the Corporation
shall indemnify the Board and the Committee (and each member thereof) against any liability, including reasonable attorneys’
fees, actually incurred in connection with any suit, action, or proceeding or in connection with any appeal therein, to which the
Board or the Committee (or such member thereof) may be a party by reason of any action or failure to act under or in connection
with the Plan or any award granted under the Plan, and any amounts that the Committee, the Board, or a member thereof, as applicable,
may pay (a) in settlement thereof or (b) in satisfaction of a judgment in any such suit, action, or proceeding, except in with
respect to matters where it shall be adjudged in such suit, action, or proceeding, that the Committee, the Board, or a member thereof,
as applicable, did not act in good faith and in a manner that such person reasonably believed to be in the Corporation’s
best interest, or in the case of a criminal proceeding, had no reason to believe that the applicable conduct was unlawful.

 

3.4  Establishment and Certification of Performance
Goals.  The Committee shall establish, prior to award, Performance Goals with respect to each Award intended to constitute a
Performance Award. Except as may otherwise be provided in Articles 6 and 7 hereof, as applicable, no Option that is intended
to constitute a Performance Award may be exercised until the Performance Goal or Goals applicable thereto is or are satisfied.

 

3.5  Performance Awards Not Mandatory.
 Nothing herein shall be construed as requiring that any Award be made a Performance Award.

 

3.6  Binding Determination.  A decision
that the Committee makes pursuant to the provisions of the Plan shall be final and binding on the Corporation and Participants,
except to the extent that a court having jurisdiction determines such decision to be arbitrary and capricious.

 

ARTICLE
4.  COMMON STOCK SUBJECT TO THE PLAN

 

4.1  Common Stock Authorized.

 

(a)  The total aggregate number of shares of Common
Stock that Awards may be made under the Plan shall not exceed _____ shares. The limitation established by the preceding sentence
shall be subject to adjustment as provided in Article 10.

 

(b)  The maximum aggregate number of shares of
Common Stock that may be issued under the Plan pursuant to the vesting of Awards of Restricted Stock shall not exceed _____ shares.
The limitation established by the preceding sentence shall be subject to adjustment as provided in Article 10.

 

(c)  The maximum aggregate number of shares of
Common Stock that may be awarded under the Plan as Options shall not exceed _____ shares. The limitation established by the preceding
sentence shall be subject to adjustment as provided in Article 10.

 

    	 	7	 

     

    

 

(d)  Subject to adjustment in accordance with Section 10,
no Participant shall be granted, during any one-year period, (i) Stock Options to purchase Common Stock with respect to more than
_____ shares of Common Stock in the aggregate or (ii) Awards of Restricted Stock with respect to more than _____ shares
of Common Stock in the aggregate.

 

(e)  If any Option is exercised by tendering Common
Stock, either actually or by attestation, to the Corporation as full or partial payment in connection with the exercise of such
Option under the Plan, or if the tax withholding requirements are satisfied through such tender, only the number of shares of Common
Stock issued net of the Common Stock tendered shall be deemed delivered for purposes of determining the maximum number of shares
available for Awards under the Plan.

 

4.2  Shares Available.  The Common Stock
to be issued under the Plan shall be the Corporation’s Common Stock, which shall be made available in the Board’s discretion
either from authorized but unissued Common Stock, treasury shares, or shares acquired by the Corporation, including shares purchased
on the open market. In the event that any outstanding Award under the Plan for any reason expires, terminates, or is forfeited,
the shares of Common Stock allocable to such expiration, termination, or forfeiture may thereafter again be made subject to an
Award under the Plan.

 

4.3  Limit on Awards to Non-Employee Directors.
 Notwithstanding anything in the Plan to the contrary, in no event shall the aggregate grant date fair value (determined under applicable
accounting rules) of any Awards granted in a calendar year to a Non-Employee Director exceed $_________.

 

ARTICLE
5.  ELIGIBILITY

 

5.1  Participation.  The Committee shall
make Awards only to persons who are Employees or Non-Employee Directors.

 

5.2  Incentive Stock Option Eligibility.
 The Committee shall make Incentive Stock Option Awards only to Employees of the Corporation. Notwithstanding any other provision
of the Plan to the contrary, an individual who owns more than ten percent of the total combined voting power of all classes of
outstanding stock of the Corporation shall not be eligible for the award of an Incentive Stock Option, unless the special requirements
set forth in Sections 6.1 and 7.1 are satisfied. For purposes of this Section 5.2, in determining stock ownership, an individual
shall be considered as owning the stock owned, directly or indirectly, by or for his brothers and sisters (whether by the whole
or half blood), spouse, ancestors, and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership,
estate, or trust shall be considered as being owned proportionately by or for its stockholders, partners, or beneficiaries. “Outstanding
stock” shall include all stock actually issued and outstanding immediately before the award of the Option. For purposes of
this Section 5.2, “outstanding stock” shall not include shares authorized for issue under outstanding Options held
by the Optionee or by any other person.

 

    	 	8	 

     

    

 

ARTICLE
6.  STOCK OPTIONS IN GENERAL

 

6.1  Exercise Price.  The exercise price
of an Option to purchase a share of Common Stock shall be, in the case of an Incentive Stock Option, not less than 100% of the
Fair Market Value of a share of Common Stock on the date the Option is awarded, except that the exercise price shall be not less
than 110% of such Fair Market Value in the case of an Incentive Stock Option awarded to any individual described in the second
sentence of Section 5.2. The exercise price of an Option to purchase a share of Common Stock shall be, in the case of a Nonqualified
Stock Option, not less than 100% of the Fair Market Value of a share of Common Stock on the date the Option is awarded. The exercise
price shall be subject to adjustment pursuant to the limited circumstances set forth in Article 10.

 

6.2  Limitation on Incentive Stock Options.
 The aggregate Fair Market Value (determined as of the date an Option is awarded) of the Common Stock with respect to which Incentive
Stock Options are exercisable for the first time by any individual in any calendar year (under the Plan and all other plans maintained
by the Corporation or Subsidiaries) shall not exceed $100,000.

 

6.3  Transferability of Options.

 

(a)  Except as provided in Subsection (b),
an Option awarded hereunder shall not be transferable other than by will or the laws of descent and distribution, and such Option
shall be exercisable, during the Optionee’s lifetime, only by him or her.

 

(b)  An Optionee may, with the prior approval of
the Committee, transfer a Nonqualified Stock Option for no consideration to or for the benefit of one or more members of the Optionee’s
“immediate family” (including a trust, partnership, or limited liability company for the benefit of one or more of
such members), subject to such limits as the Committee may impose, and the transferee shall remain subject to all terms and conditions
applicable to the Option prior to its transfer. The term “immediate family” shall mean an Optionee’s spouse,
parents, children, stepchildren, adoptive relationships, sisters, brothers, and grandchildren (and, for this purpose, shall also
include the Optionee).

 

ARTICLE
7.  TERM, VESTING AND EXERCISE OF OPTIONS

 

7.1  Term and Vesting.  Each Option awarded
under the Plan shall terminate on the date as the Committee may determine and set forth in an Agreement; provided, however, that:

 

(a)  each intended Incentive Stock Option awarded
to an individual described in the second sentence of Section 5.2 shall terminate not later than five years after the date
of the Award,

 

(b)  each other intended Incentive Stock Option
shall terminate not later than ten years after the date of the Award, and

 

(c)  each Option awarded under the Plan which is
intended to be a Nonqualified Stock Option shall terminate not later than ten years and one month after the date of the Award.

 

    	 	9	 

     

    

 

Each Option awarded under the Plan shall be
subject to such terms and conditions as the Committee may provide and set forth in the Agreement issued to a Optionee to evidence
such Option; provided, however, that, unless the Committee may otherwise provide and set forth in an applicable Agreement, each
Option shall be fully exercisable (i.e., become 100% vested) after the earlier of the date on which:

 

(a)  a Change in Control occurs or

 

(b)  the Optionee terminates employment or service
by reason of death or Disability.

 

Except as provided in Article 8, an Option
may be exercised only during the continuance of the Optionee’s employment or service with the Corporation or a Subsidiary.

 

7.2  Exercise.

 

(a)  A person electing to exercise an Option shall
give notice to the Corporation of such election and of the number of shares he or she has elected to purchase and shall at the
time of exercise tender the full exercise price of the shares he or she has elected to purchase. The exercise notice shall be delivered
to the Corporation in person, by certified mail, or by such other method (including electronic transmission) and in such form as
the Committee may determine. The exercise price shall be paid in full, in cash, upon the exercise of the Option; provided, however,
that in lieu of cash, with the approval of the Committee at or prior to exercise, an Optionee may exercise an Option by tendering
to the Corporation shares of Common Stock owned by him or her and having a Fair Market Value equal to the cash exercise price applicable
to the Option (with the Fair Market Value of such stock to be determined in the manner provided in Section 6.3) or by delivering
such combination of cash and such shares as the Committee in its sole discretion may approve; further provided, however, that no
such manner of exercise shall be permitted if such exercise would violate Section 402 of the Sarbanes-Oxley Act of 2002.
Notwithstanding the foregoing, Common Stock acquired pursuant to the exercise of an Incentive Stock Option may not be tendered
as payment unless the holding period requirements of Code Section 422(a)(1) have been satisfied, and Common Stock not acquired
pursuant to the exercise of an Incentive Stock Option may not be tendered as payment unless it has been held, beneficially and
of record, for at least six months (or such longer time as may be required by applicable securities law or accounting principles
to avoid adverse consequences to the Corporation or a Participant).

 

(b)  At the request of the Participant and to the
extent permitted by applicable law, the Committee may, in its sole discretion, selectively approve an arrangement whereby the Participant
irrevocably authorizes a third party to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon the exercise
of an Option and to remit to the Corporation a sufficient portion of the sales proceeds to pay the entire exercise price and any
tax withholding required as a result of such exercise.

 

    	 	10	 

     

    

 

(c)  At the request of the Participant and to the
extent permitted by applicable law, the Committee may, in its sole discretion, selectively approve a “net exercise”
arrangement whereby the Corporation will reduce the number of shares of Common Stock issued upon exercise of a Nonqualified Stock
Option by the largest whole number of shares of Common Stock with a Fair Market Value that does not exceed the exercise price of
the Option; provided, however, that the Optionee provide cash to the Corporation to the extent of any remaining balance of the
exercise price. Shares of Common Stock will no longer be subject to such Option and such Option will no longer be exercisable thereafter
to the extent of the number of shares used to pay the exercise price pursuant to the net exercise, the number of shares delivered
to the Optionee as a result of such net exercise and the number of shares, if any withheld to satisfy any tax withholding obligations.

 

(d)  A person holding more than one Option at any
relevant time may, in accordance with the provisions of the Plan, elect to exercise such Options in any order.

 

ARTICLE
8.  EXERCISE OF OPTIONS FOLLOWING TERMINATION

OF EMPLOYMENT OR SERVICE

 

8.1  Other Termination by Corporation or
Subsidiary; Change in Control. In the event of an Optionee’s termination of employment or service (i)  by the Corporation
or a Subsidiary other than Termination for Cause or (ii) due to a Change in Control, such Optionee’s Option shall lapse
at the earlier of the expiration of the term of such Option or:

 

(a)  in the case of an Incentive Stock Option,
three months from the date of such termination of employment; and

 

(b)  in the case of a Nonqualified Stock Option,
12 months from the date of such termination of employment or service.

 

8.2  Death or Total Disability.  In the
event of an Optionee’s termination of employment or service by reason of death or Disability, such Optionee’s vested
Options shall lapse at the earlier of the expiration of the term of such Option or:

 

(a)  in the case of an Incentive Stock Option,
one year from the date of such termination of employment; and

 

(b)  in the case of a Nonqualified Stock Option,
12 months from the date of such termination of employment or service.

 

8.3  Termination For Cause; Other Termination
by Optionee.  In the event of an Optionee’s Termination For Cause, or in the event of the Optionee’s termination
of employment or service at the election of an Optionee, such Optionee’s right to exercise a vested Option shall lapse:

 

(a)  in the case of an Incentive Stock Option,
upon such termination of employment or, in the Committee’s discretion, up to three months from the date of such termination
of employment (but in no event no later of the expiration of the term of such Option); and

 

    	 	11	 

     

    

 

(b)  in the case of a Nonqualified Stock Option,
unless otherwise provided in an Agreement, upon such termination of employment or service or, in the Committee’s discretion,
at any time up to the end of the remaining term of such Option; provided, however, in the event that such termination of employment
or service occurs on or after the Optionee reaches age [60], such Option shall lapse as of the end of the remaining term of such
Option.

 

8.4  Special Termination Provisions for Options.

 

(a)  In the event that the Corporation or a Subsidiary
terminates an Optionee’s employment or service and the Committee deems it equitable to do so, the Committee may, in its discretion
and subject to the approval of a majority of the disinterested members of the Board, waive any Continuous Service requirement for
vesting (but not any Performance Goal or Goals) specified in an Agreement pursuant to Section 7.1 and permit the exercise of an
Option held by such Optionee prior to the satisfaction of such Continuous Service requirement. The Committee may make any such
waiver with retroactive effect, provided the Committee makes it within 60 days following the Optionee’s termination of employment
or service.

 

(b)  In the event the Committee waives the Continuous
Service requirement with respect to an Option as set forth in Section 8.4(a) above, such Option shall lapse:

 

(i)  in the case of an Incentive Stock
Option, at the earlier of the expiration of the term of such Option or three months from the date of termination of employment
(but in no event no later of the expiration of the term of such Option); and

 

(ii)  in the case of a Nonqualified
Stock Option, unless otherwise provided in an Agreement, three months from the date of such termination of employment or service
or, in the Committee’s discretion, up to the remaining term of such Option.

 

ARTICLE
9.  RESTRICTED STOCK

 

9.1  In General.  Each Restricted Stock
Award shall be subject to such terms and conditions as may be specified in the Agreement issued to a Participant to evidence such
Award. Subject to Section 3.5, a Restricted Stock Award shall be subject to a vesting schedule or Performance Goals, or both.

 

9.2  Vesting.  Each Restricted Stock Award
shall vest under such terms and conditions the Committee may provide and set forth in an applicable Agreement; provided, however,
that, unless the Committee otherwise provides in an applicable Agreement, each Restricted Stock Award shall become fully vested
upon the earlier of the date on which: (a) a Change in Control occurs; or (b) the Participant terminates employment or
service by reason of death or Disability.

 

9.3  Waiver of Vesting Requirements for Certain
Restricted Stock Awards.  In the event that a Participant’s employment or service is terminated and the Committee deems
it equitable to do so, the Committee may, in its discretion and subject to the approval of a majority of the disinterested members
of the Board, waive any minimum vesting period (but not any Performance Goals) with respect to a Restricted Stock Award held by
such Participant. The Committee may make any such waiver with retroactive effect, provided it makes it within 60 days following
such Participant’s termination of employment or service.

 

    	 	12	 

     

    

 

9.4  Issuance and Retention of Share Certificates
By Corporation.  Shares of restricted stock issued pursuant to a Restricted Stock award may be evidenced by book entry on the
Corporation’s stock transfer records or by one or more physical stock certificates issued in the Participant’s name.;
but until such time as the Restricted Stock shall vest or otherwise become distributable by reason of satisfaction of one or more
Performance Goals, the Corporation shall retain such share certificates.

 

9.5  Stock Powers.  At the time of the
award of Restricted Stock, the Participant to whom the award is made shall deliver such stock powers, endorsed in blank, as the
Corporation may request.

 

9.6  Release of Shares.  Within 30 days
following the date on which a Participant becomes entitled under an Agreement to receive shares of previously Restricted Stock,
the Corporation shall deliver to such Participant one or more certificates evidencing the ownership of such shares. Notwithstanding
any other provision of this Plan to the contrary, the Corporation may elect to satisfy any requirement under this Plan for the
delivery or release of certificates through the use of book-entry.

 

9.7  Forfeiture of Restricted Stock Awards.
 In the event of the forfeiture of a Restricted Stock Award, by reason of a Participant’s termination of employment or termination
of service prior to vesting, the failure to achieve a Performance Goal or otherwise, the Corporation shall take such steps as may
be necessary to cancel the affected shares and return the same to its treasury.

 

9.8  Assignment, Transfer, Etc. of Restricted
Stock Rights.  The potential rights of a Participant to shares of Restricted Stock may not be assigned, transferred, sold, pledged,
hypothecated, or otherwise encumbered or disposed of until such time as the Participant receives unrestricted certificates for
such shares.

 

9.9  Stockholder Rights.  Unless the Committee
otherwise provides and sets forth in an applicable Agreement, Participants who have been awarded shares of Restricted Stock shall
not have voting or dividend rights until such time as the Participant receives unrestricted certificates for such shares.

 

9.10  Additional Holding Periods.  Nothing
in this Article 9 shall preclude the Committee from providing in an Agreement for additional (a) restrictions on the transfer or
assignment of Common Stock acquired by reason of the vesting of a Restricted Stock Award or (b) forfeiture provisions with respect
to Common Stock acquired by reason of the vesting of a Restricted Stock Award.

 

ARTICLE
10.  ADJUSTMENT PROVISIONS

 

10.1  Share Adjustments.

 

(a)  In the event that the shares of Common Stock
of the Corporation, as presently constituted, shall be changed into or exchanged for a different number or kind of shares of stock
or other securities of the Corporation, or if the number of such shares of Common Stock shall be changed through the payment of
a stock dividend, stock split, or reverse stock split, then (i) the shares of Common Stock authorized hereunder to be made
the subject of Awards, (ii) the shares of Common Stock then subject to outstanding Awards and the exercise price thereof (where
relevant), (iii) the maximum number of Awards that may be made within a 12-month period and (iv) the nature and terms
of the shares of stock or securities subject to Awards hereunder shall be increased, decreased or otherwise changed to such extent
and in such manner as may be necessary or appropriate to reflect any of the foregoing events.

 

    	 	13	 

     

    

 

(b)  If there shall be any other change in the
number or kind of the outstanding shares of the Common Stock of the Corporation, or of any stock or other securities into which
such Common Stock shall have been changed, or for which it shall have been exchanged, and if a majority of the disinterested members
of the Board shall, in its sole discretion, determine that such change equitably requires an adjustment in any Award which was
theretofore granted or which may thereafter be granted under the Plan, then such adjustment shall be made in accordance with such
determination.

 

(c)  An Award pursuant to the Plan shall not affect
in any way the right or power of the Corporation to make adjustments, reclassifications, reorganizations, or changes of its capital
or business structure, to merge, to consolidate, to dissolve, to liquidate, or to sell or transfer all or any part of its business
or assets.

 

10.2  Corporate Changes.  A liquidation
or dissolution of the Corporation, a merger or consolidation in which the Corporation is not the surviving Corporation or a sale
of all or substantially all of the Corporation’s assets, shall cause each outstanding Award to terminate, except to the extent
that another corporation may and does, in the transaction, assume, and continue the Award or substitute its own awards.

 

10.3  Fractional Shares.  Fractional shares
resulting from any adjustment in Awards pursuant to this article may be settled as the Committee shall determine.

 

ARTICLE
11.  GENERAL PROVISIONS

 

11.1  Effective Date.  The Plan shall
become effective upon the Board’s adoption of the Plan, provided that, subject to applicable law, any Award made hereunder
shall be subject to the Plan’s approval by the stockholders of the Corporation within 12 months of the Board’s
adoption of the Plan.

 

11.2  Termination of the Plan.  Unless
previously terminated by the Board, the Plan shall terminate on, and no Awards shall be made after, the day immediately preceding
the 10th anniversary of the Board’s adoption of the Plan.

 

11.3  Limitation on Termination, Amendment,
or Modification.

 

(a)  The Board may at any time terminate, amend,
modify or suspend the Plan, provided that, without the approval of the stockholders of the Corporation, the Board may make no amendment
or modification that:

 

    	 	14	 

     

    

 

(i)  increases the maximum number of
shares of Common Stock subject to Awards under the Plan (except as provided in Section 10.1);

 

(ii)  changes the class of eligible
Participants; or

 

(iii)  otherwise requires the approval
of stockholders under applicable state law or under applicable federal law to avoid potential liability or adverse consequences
to the Corporation or a Participant.

 

(b)  No amendment, modification, suspension, or
termination of the Plan shall in any manner adversely affect any Award theretofore made under the Plan without the applicable Participant’s
consent.

 

11.4  No Right to an Award or Continued Employment
or Service.  Nothing contained in this Plan or otherwise shall be construed to (a) require that an Award be made to an
individual who qualifies as an Employee or Non-Employee Director, or (b) confer upon a Participant any right to continue in
the employ or service of the Corporation or any Subsidiary or limit in any respect the right of the Corporation or of any Subsidiary
to terminate the Participant’s employment or service at any time and for any reason.

 

11.5  No Obligation.  No exercise of discretion
under this Plan with respect to an event or person shall create an obligation to exercise such discretion in any similar or same
circumstance, except as otherwise provided or required by law.

 

11.6  Withholding Taxes.

 

(a)  Subject to the provisions of Subsection (b),
the Corporation will require, where sufficient funds are not otherwise available, that a Participant who is an Employee pay or
reimburse to it any withholding taxes when withholding is required by law.

 

(b)  Subject to the Committee’s consent,
a Participant who is an Employee may satisfy the withholding obligation described in Subsection (a), in whole or in part,
by electing to have the Corporation withhold shares of Common Stock (otherwise issuable to him or her) having a Fair Market Value
equal to the maximum amount of tax permitted to be withheld without resulting in adverse financial accounting consequences to the
Corporation. An election by a Participant who is an Employee to have shares withheld for this purpose shall be subject to such
conditions as may then be imposed thereon by any applicable securities law.

 

11.7  Code Section 409A.  This Plan
is intended to be exempt from the provisions of Code Section 409A by reason of not being deemed a “nonqualified deferred
compensation plan” within the meaning of Code Section 409A(d)(1). Each of the provisions of this Plan document, however,
are qualified by reference to provisions of Code Section 409A, and the guidance promulgated thereunder, to the extent such
section applies to this Plan. Notwithstanding anything herein to the contrary, if Code Section 409A is applicable, the exercise
of any discretionary authority and the implementation or carrying out of each other provision of the Plan shall be conditioned
upon the conditions and limitations of Code Section 409A and compliance with its specific terms, as the same may have been
interpreted by regulatory, case law, or other governing authority. Further, if this Plan or any Option granted hereunder is, or
shall become subject to the provisions of Code Section 409A, each such affected Option shall be deemed exercised on the date
it vests, or the date the Plan or such Option, as applicable, becomes subject to Code Section 409A; provided, however, that
if an Optionee is unable to deliver the exercise price and required withholding taxes to the Corporation, such Optionee shall be
paid in one lump sum as soon as practicable, to the extent permitted by tax, corporate, securities, and any other relevant laws,
(a) the excess (if any) of the Fair Market Value of the Option at the relevant time over the exercise price, less (b) the
required tax withholdings.

 

    	 	15	 

     

    

 

11.8  Listing and Registration of Shares.

 

(a)  No Option awarded pursuant to the Plan shall
be exercisable in whole or in part, and no share certificate with respect to any Award shall be delivered, if at any relevant time
the Committee determines in its discretion that the listing, registration, or qualification of the shares of Common Stock subject
to an Award on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition of, or in connection with, such Award, until such listing, registration, qualification,
consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

 

(b)  If a registration statement under the Securities
Act with respect to the shares issuable under the Plan is not in effect at any relevant time, as a condition of the issuance of
the shares, a Participant (or any person claiming through a Participant) shall give the Committee a written or electronic statement,
satisfactory in form and substance to the Committee, that he or she is acquiring the shares for his or her own account for investment
and not with a view to their distribution. The Corporation may place on each certificate, if any, or book entry representing Restricted
Stock awarded under the Plan, if any, a legend or book entry notation substantially in the form of the following, in addition to
any other information the Corporation deems appropriate, to prevent disposition of the shares in violation of the Securities Act,
other applicable law, or the terms of the Plan or an applicable Agreement:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (“ACT”) AND MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT OR A WRITTEN
OPINION OF COUNSEL FOR THE CORPORATION THAT REGISTRATION IS NOT REQUIRED.”

 

11.9 Disinterested Director.  For purposes
of this Plan, a director shall be deemed “disinterested” if such person could qualify as a member of the Committee
under Section 3.1.

 

11.10 Clawback.  Notwithstanding any
other provisions in this Plan, any Award that is subject to recovery under any law, government regulation, or stock exchange listing
requirement shall be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation,
or stock exchange listing requirement (or any policy that the Corporation adopts pursuant to any such law, government regulation,
or stock exchange listing requirement).

 

    	 	16	 

     

    

 

11.11 Beneficiary Designation.  Notwithstanding
Section 6.3(a), each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under
the Plan is to be exercised in case of such Participant’s death. Each designation shall revoke all the Participant’s
prior designations, shall be in a form that the Committee may reasonably prescribe, and shall be effective only when filed by the
Participant in writing with the Corporation during the Participant’s lifetime.

 

11.12 Gender; Number.  Words of one gender,
wherever used herein, shall be construed to include each other gender, as the context requires. Words used herein in the singular
form shall include the plural form, as the context requires, and vice versa.

 

11.13 Applicable Law.  Except to the
extent preempted by federal law, this Plan document, and the Agreements issued pursuant hereto, shall be construed, administered,
and enforced in accordance with the domestic internal law of the State of North Dakota.

 

11.14 Headings.  The headings of the
several articles and sections of this Plan document have been inserted for convenience of reference only and shall not be used
in the construction of the same.

 

    	 	17

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