Document:

Exhibit 10.2

 

Nodak Mutual
Insurance Company

 

Nonqualified
Deferred Compensation Plan

 

1.          Establishment
of Plan. Nodak Mutual Insurance Company (“Nodak” or the "Company") hereby adopts
and establishes an unfunded deferred compensation plan for a select group of key management or highly compensated employees of
the Company and its Affiliates which shall be known as the Nodak Mutual Insurance Company Nonqualified Deferred Compensation Plan
(the "Plan").

 

2.          Purpose
of Plan. The purpose of the Plan is to provide a select group of management or highly compensated employees
(within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA) of the Company and its Affiliates who contribute significantly
to the future business success of the Company with supplemental retirement income benefits through the deferral of Base Salary
and Bonus Compensation and through additional Company contributions.

 

3.          Definitions.

 

"Acceleration Events"
is defined in Section 11.1 hereof.

 

"Account" means a
hypothetical bookkeeping account established in the name of each Participant and maintained by the Company to reflect the Participant's
interests under the Plan and includes any or all of the following subaccounts: (a) an Elective Deferral Account and (b) a Company
True-up Account.

 

"Affiliate" means
any corporation, trade or business which is treated as a single employer with the Company under Sections 414(b) or 414(c) of the
Code and any other entity designated by the Committee as an "Affiliate" for purposes of the Plan.

 

"Base Salary" means
the annual rate of base pay paid by the Company or an Affiliate to or for the benefit of the Participant for services rendered.

 

"Beneficiary" means
any person or entity, designated in accordance with Section 15.7, entitled to receive benefits which are payable upon or
after a Participant's death pursuant to the terms of the Plan.

 

"Board" means the
Board of Directors of the Company, as constituted from time to time.

 

"Bonus Compensation"
means any cash compensation earned by a Participant for services rendered by a Participant under any bonus or cash incentive plan
maintained by the Company or an Affiliate.

 

     

     

    

  

“Cause”
has the meaning of such term or of any similar term (such as “Misconduct”) set forth in the individual employment,
severance, or similar agreement between the Company and the Participant (if any), and if none, “Cause” shall mean (i)
conviction or plea of nolo contendere to any felony or to any misdemeanor that involves fraud or moral turpitude;
(ii) theft or embezzlement of Company property, a material act of dishonesty or fraud involving the Company’s property or
business, or intentional falsification of any employment or Company records; (iii) material violation of any Company non-competition
or confidentiality agreement or of any Company employment, business, or ethics policy; (iv) willful failure to follow lawful
instructions of the person or body to which Participant reports; (v) gross negligence, willful misconduct, or wholly unsatisfactory
performance of Participant’s assigned duties; (vi) actions or failures to act by Participant that are materially detrimental
to the Company, monetarily or otherwise; or (vii) Participant’s failure of any lawfully administered Company drug test or
Participant’s abuse of alcohol or drugs that unreasonably interferes with the performance of Participant’s customary
job duties.

 

"Change in Control"
means the occurrence of any of the following:

 

(a)          one
person (or more than one person acting as a group) acquires ownership of stock of the Company that, together with the stock held
by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation;
provided that, a Change in Control shall not occur if any person (or more than one person acting as a group) owns more than 50%
of the total fair market value or total voting power of the Company's stock and acquires additional stock;

 

(b)          one
person (or more than one person acting as a group) acquires (or has acquired during the twelve (12) month period ending on the
date of the most recent acquisition) ownership of the Company's stock possessing 30% or more of the total voting power;

 

(c)          a
majority of the members of the Board are replaced during any twelve (12) month period by directors whose appointment or election
is not endorsed by a majority of the Board before the date of appointment or election; or

 

(d)          one
person (or more than one person acting as a group) acquires (or has acquired during the twelve (12) month period ending on the
date of the most recent acquisition) assets from the Company that have a total gross fair market value equal to or more than 40%
of the total gross fair market value of all of the assets of the Company immediately before such acquisition(s).

 

Notwithstanding the foregoing, a Change
in Control shall not occur unless such transaction constitutes a change in the ownership of the Company, a change in the effective
control of the Company, or a change in the ownership of a substantial portion of the Company's assets under Section 409A of the
Code. Further notwithstanding the foregoing, a Change in Control shall not occur as a result of a conversion of the Company from
a mutual insurance company to a stock insurance company and the acquisition of a majority of the outstanding shares of common stock
of the resulting stock insurance company by Nodak Mutual Group, Inc. or NI Holdings, Inc. (the “Conversion Transaction”).

 

     

     

    

  

"Claimant" has the
meaning set forth in Section 16.

 

"Code" means the
U.S. Internal Revenue Code of 1986, as amended, or any successor statute, and the Treasury Regulations and other authoritative
guidance issued thereunder.

 

"Committee" means
the Compensation Committee of the Board, or another committee of the Board consisting of at least two members appointed by the
Board to administer the Plan.

 

"Company" means Nodak
Mutual Insurance Company, a North Dakota corporation, or any successor thereto (including, as a result of the Conversion Transaction,
Nodak Insurance Company).

 

"Company 401(k) Plan".
means Nodak Mutual Insurance Company 401(k) Profit Sharing Plan.

 

"Company True-up Contribution"
means the amount the Company contributes to the Plan on behalf of any Participant pursuant to Section 6.1.

 

"Company True-up Account"
means a separate account maintained for each Participant to record the Company True-up Contributions made to the Plan pursuant
to Section 6.1, plus all earnings and losses allocable thereto.

 

"Deferral Election"
means an election by an Eligible Employee to defer compensation and includes a Distribution Date for same. A Participant shall
make a new Deferral Election with respect to each Plan Year.

 

"Determination Date"
means the last Valuation Date of the month preceding the payment date. [DISCUSS HOW THIS WILL BE RECORDKEPT]

 

"Disabled or Disability"
means that a Participant is: (a) unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
12 months; or (b) by reason of any medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period
of not less than three months under an accident and health plan covering employees of the Company [or its Affiliates]; or (c) determined
to be totally disabled by the Social Security Administration.

 

"Distribution Date"
means a date specified by a Participant in his or her Election Notice for the payment of all or a portion of such Participant's
Account.

 

     

     

    

  

"Effective Date"
means ____________________, 2016.

 

"Election Notice"
means the notice or notices established from time to time by the Committee for making Deferral Elections under the Plan. The Election
Notice includes the amount or percentage of Base Salary and/or Bonus Compensation to be deferred (subject to any minimum or maximum
amounts established by the Committee); the Distribution Date(s); and the form of payment (lump sum or installments). Each Election
Notice shall become irrevocable as of the last day of the Election Period.

 

"Election Period"
means the period established by the Committee with respect to each Plan Year during which Deferral Elections for such Plan Year
must be made in accordance with the requirements of Section 409A of the Code, as follows:

 

(a)          General
Rule. Except as provided in (b) below, the Election Period shall end no later than the last day of the Plan Year immediately
preceding the Plan Year to which the Deferral Election relates.

 

(b)          Newly
Eligible Employees. The Election Period for newly Eligible Employees shall end no later than thirty (30) days after
the Employee first becomes eligible to participate in the Plan and shall apply only with respect to compensation earned after the
date of the Deferral Election.

 

"Elective Deferrals"
means compensation deferrals contemplated hereunder.

 

"Elective Deferral Account"
means a separate account maintained for each Participant to record the Elective Deferrals made to the Plan pursuant to Section
5 and all earnings and losses allocable thereto.

 

"Eligible Employee"
means an Employee who is selected by the Committee to participate in the Plan. Participation in the Plan is limited to a select
group of the Company's key management or highly compensated employees.

 

"Employee" means
an employee of the Company.

 

"Entry Date" means,
with respect to an Eligible Employee, the first day of the pay period commencing on or following the effective date of such Eligible
Employee's participation in the Plan.

 

"ERISA" means the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

"FICA Amount" has
the meaning set forth in Section 11.1(c).

 

"Investment Option"
means an investment fund, index or vehicle selected by the Committee and made available to Participants for the deemed investment
of their Accounts.

 

     

     

    

  

“Normal Retirement Age”
means that age so defined in a currently enforce employment agreement with the Participant, or if none, then as that term is defined
in or by the Company’s normal operating procedures, and if none, then age 62.

 

"Participant" means
an Eligible Employee who elects to participate in the Plan by filing an Election Notice in accordance with Section 5.1 and
any former Eligible Employee who continues to be entitled to a benefit under the Plan.

 

"Payment Event" has
the meaning set forth in Section 9.1.

 

"Plan" means this
Nodak Mutual Insurance Company Nonqualified Deferred Compensation Plan, as amended from time to time.

 

"Plan Year" means
the twelve consecutive month period which begins on January 1 and ends on the following December 31.

 

"Re-deferral Election"
has the meaning set forth in Section 5.4.

 

"Separation from Service"
has the meaning set forth in Section 409A(a)(2)(A)(i) of the Code and Treas. Reg. Section 1.409A-1(h).

 

"Specified Employee"
has the meaning set forth in Section 409A(a)(2)(B)(i) of the Code and Treas. Reg. Section 1.409A-1(i).

 

"Specified Employee Payment
Date" has the meaning set forth in Section 9.5.

 

"State, Local and Foreign
Tax Amount" has the meaning set forth in Section 11(f).

 

"Unforeseeable Emergency"
means a severe financial hardship of the Participant resulting from (a) an illness or accident of the Participant, the Participant's
spouse, or the Participant's dependent; (b) a loss of the Participant's property due to casualty; or (c) such other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole
discretion of the Committee.

 

"Valuation Date"
means each business day of the Plan Year.

 

“Vest”, “Vested”
or “Vesting” refers to the point in time in which Account balances are no longer subject to a substantial risk
of forfeiture.

 

"Year of Service"
means a Year of Service as credited under the Company 401(k) Plan.

 

     

     

    

  

4.          Eligibility;
Participation.

 

4.1           Requirements
for Participation. Before the beginning of each Plan Year, the Committee shall select those Employees who shall
be Eligible Employees for such Plan Year. An Employee designated as an Eligible Employee for a Plan Year shall continue to be
an Eligible Employee for subsequent Plan Years unless otherwise determined to be ineligible by the Committee. Any Eligible Employee
may participate in the Plan commencing as of the Entry Date occurring on or after the date on which he or she becomes an Eligible
Employee.

 

4.2           Election
to Participate; Benefits of Participation. An Eligible Employee may become a Participant in the Plan by making
a Deferral Election in accordance with Section 5. An Eligible Employee who elects to participate in the Plan by making
a Deferral Election is eligible to receive Company True-up Contributions in accordance with Section 6.

 

4.3           Cessation
of Participation. If a Participant ceases to be an Eligible Employee for a Plan Year, then the Participant's
Deferral Elections shall no longer be effective and the Participant shall not receive any further Company True-up Contributions.
However, such Participant's Account shall continue to be credited with earnings and losses until the applicable Determination
Date.

 

5.          Election
Procedures.

 

5.1           Deferral
Election. An Eligible Employee may elect to defer Base Salary and/or Bonus Compensation by completing an Election
Notice and filing it with the Committee during the Election Period. The Election Notice must specify:

 

(a)          The
amount or percentage of Base Salary and/or Bonus Compensation to be deferred (subject to any minimum and maximum amounts, if any,
established by the Committee);

 

(b)          The
Distribution Date for the Participant's Account (subject to the provisions of the Plan);

 

(c)          The
form of payment for the Participant's Account (lump sum or annual installments).

 

5.2           Base
Salary Deferrals. A Participant may elect to defer receipt of some or all of the Participant's Base Salary for
any Plan Year by making a Deferral Election in accordance with this Section 5, subject to any minimum or maximum amounts
established by the Committee. Base Salary deferrals shall be credited to a Participant's Elective Deferral Account as of the date
the Base Salary otherwise would have been paid.

 

5.3           Bonus
Compensation Deferrals. A Participant may elect to defer receipt of some or all of the Participant's Bonus Compensation
for any Plan Year by making a Deferral Election in accordance with this Section 5, subject to any minimum or maximum amounts
established by the Committee. Bonus Deferrals shall be credited to the Participant's Elective Deferral Account as of the date the
deferred Bonus Compensation otherwise would have been paid.

 

     

     

    

  

5.4           Re-deferrals
and Changing the Form of Payment. The Participant may make an election to re-defer all or a portion of the amounts
in his or her Account until a later Distribution Date or to change the form of a payment (a "Re-deferral Election");
provided that, the following requirements are met:

 

(a)          The
re-deferral election is made at least twelve (12) months before the original Distribution Date;

 

(b)          The
Distribution Date for the re-deferred amounts is at least five years later than the original Distribution Date; and

 

(c)          The
re-deferral election will not take effect for at least twelve (12) months after the re-deferral election is made.

 

6.          Company
Contributions.

 

6.1           Company
True-up Contributions. Each Plan Year the Company will make a Company True-up Contribution to the Plan, subject
to approval of the appropriate amounts by the Committee, on behalf of any Participant specifically designated to receive such
contributions while they are actively employed by the Company (or an Affiliate). The Company True-up Contribution will consist
of those foregone Company contributions to its qualified retirement plans that the Participant would have received but for the
restrictions on contributions that result from the following statutory limitations: Code Sections 402(g), 415, 401(a)(17), or
others determined by the Board to reduce the Company contributions to the Participant relative to the non-highly compensated employee
participants in those plans. Any Company True-up Contribution shall be credited to the Participant's Company True-up Account as
soon as practicable following the last day of the Plan Year to which the Company True-up Contribution relates and in no event
later than the March 15 immediately following the Plan Year.

 

7.          Accounts
and Investment Options.

 

7.1           Establishment
of Accounts. The Company shall establish and maintain an Account for each Participant. The Company may establish
more than one Account on behalf of any Participant as deemed necessary by the Committee for administrative purposes.

 

7.2           Investment
Options. The Committee shall select the Investment Options to be made available to Participants for the deemed
investment of their Accounts under the Plan. The Committee may change, discontinue, or add to the Investment Options made available
under the Plan at any time in its sole discretion. A Participant must select the Investment Options for his or her Account, in
the Participant's Election Notice and may make changes to his or her selections in accordance with procedures established by the
Committee.

 

     

     

    

  

7.3           Investment
Earnings. Each Account shall be adjusted for earnings or losses based on the performance of the Investment Options
selected. Earnings and losses shall be computed on each Valuation Date. The amount paid to a Participant on the payment date shall
be determined as of the applicable Determination Date.

 

7.4           Nature
of Accounts. Accounts are not actually invested in the Investment Options available under the Plan and Participants
do not have any real or beneficial ownership in any Investment Option. A Participant's Account is solely a device for the measurement
and determination of the amounts to be paid to the Participant pursuant to the Plan and shall not constitute or be treated as
a trust fund of any kind.

 

7.5           Statements.
Each Participant shall be provided with statements setting out the amounts in his or her Account which shall be delivered annually.

 

8.          Vesting.

 

8.1           Vesting
of Base Salary Deferrals and Bonus Compensation Deferrals. Participants shall be fully Vested at all times in
their Base Salary deferrals and Bonus Compensation deferrals and any earnings thereon.

 

8.2           Vesting
of Company True-up Contributions.

 

Participants shall be Vested in their
Company True-up Contributions and any earnings thereon in accordance with the following schedule:

 

	Years of Service	 	Vested Percentage	 
	 	 	 	 
	Less than 1 year	 	 	0	%
	 	 	 	 	 
	1 year but less than 2 years	 	 	20	%
	 	 	 	 	 
	2 years but less than 3 years	 	 	40	%
	 	 	 	 	 
	3 years but less than 4 years	 	 	60	%
	 	 	 	 	 
	4 years but less than 5 years	 	 	80	%
	 	 	 	 	 
	5years or more	 	 	100	%

 

Notwithstanding the Vesting schedule
set out above, the Committee may, in its discretion, establish a different Vesting schedule that will apply to Company True-up
Contributions made to the Plan on behalf of any Participant for any Plan Year.

 

8.3           Vesting
of Accounts Upon Normal Retirement Age, an Involuntary Separation from Service, or a Change in Control. Notwithstanding
any other provision of the Plan, if a Participant continues service to the Company or an Affiliate until Normal Retirement Age,
an involuntarily Separation from Service (other than for Cause), or the occurrence of a Change in Control, all Accounts shall
immediately become 100% Vested.

 

     

     

    

  

9.          Payment
of Participant Accounts.

 

9.1           In
General. Payment of a Participant's Vested Account shall be made only upon one of the following events (each
a "Payment Event"), as specified by the Participant in an Election Notice:

 

(a)          The
Distribution Date specified by the Participant;

 

(b)          The
Participant's Separation from Service;

 

(c)          The
Participant's death;

 

(d)          The
Participant's Disability;

 

(e)          The
demonstration of an Unforeseeable Emergency (as specified in Section 10); or

 

(f)          The
occurrence of a Change in Control.

 

9.2           Timing
of Valuation. The value of a Participant's Account on the payment date shall be determined as of the applicable
Determination Date.

 

9.3           Forfeiture
of Un-Vested Account Balances. Unless otherwise determined by the Committee, a Participant's un-Vested Account
balance shall be forfeited only upon a voluntary Separation from Service or an involuntary Separation from Service for Cause.

 

9.4           Timing
of Payments. Except as otherwise provided in this Section 9, payments shall be made within 90 days following
a Payment Event.

 

9.5           Timing
of Payments to Specified Employees. Notwithstanding anything in the Plan to the contrary, if a Participant is
a Specified Employee as of the date of his or her Separation from Service, then no distribution of such Participant's Account
shall be made upon the Participant's Separation from Service until the first payroll date of the seventh month following the Participant's
Separation from Service (or, if earlier, upon the date of the Participant's death) (the "Specified Employee Payment Date").
Any payments to which a Specified Employee otherwise would have been entitled under the Plan during the period between the Participant's
Separation from Service and the Specified Employee Payment date shall be accumulated and paid in a lump sum payment on the Specified
Employee Payment Date.

 

9.6           Form
of Payment. Payments shall be made in single lump sum.

 

9.7           Medium
of Payment. Any payment from a Participant's Account shall be made in cash.

 

     

     

    

  

10.         Payments
Due to Unforeseeable Emergency.

 

10.1         Request
for Payment. If a Participant suffers an Unforeseeable Emergency, he or she may submit a written request to
the Committee for payment of his or her Vested Account.

 

10.2         No
Payment If Other Relief Available. The Committee will evaluate the Participant's request for payment due to
an Unforeseeable Emergency taking into account the Participant's circumstances and the requirements of Section 409A of the Code.
In no event will payments be made pursuant to this Section 10 to the extent that the Participant's hardship can be relieved: (a)
through reimbursement or compensation by insurance or otherwise; or (b) by liquidation of the Participant's assets, to the extent
that liquidation of the Participant's assets would not itself cause severe financial hardship.

 

10.3         Limitation
on Payment Amount. The amount of any payment made on account of an Unforeseeable Emergency shall not exceed
the amount reasonably necessary to satisfy the Participant's financial need, including amounts necessary to pay any Federal, state
or local income taxes or penalties reasonably anticipated to result from the payment, as determined by the Committee.

 

10.4         Timing
of Payment. Payments shall be made from a Participant's Account as soon as practicable and in any event within
30 days following the Committee's determination that an Unforeseeable Emergency has occurred and authorization of payment from
the Participant's Account.

 

10.5         Cessation
of Deferrals. If a Participant receives payment on account of an Unforeseeable Emergency, the Participant may
make no more Elective Deferrals for the remainder of the Plan Year.

 

11.         Acceleration
Events.

 

11.1         Permissible
Acceleration Events. Notwithstanding anything in the Plan to the contrary, the Committee, in its sole discretion,
may accelerate payment of all or a portion of a Participant's Vested Account upon the occurrence of any of the events ("Acceleration
Events") set forth in this Section 11. The Committee's determination of whether payment may be accelerated in
accordance with this Section 11 shall be made in accordance with Treas. Reg. Section 1.409A-3(j)(4).

 

(a)          Domestic
Relations Orders. The Committee may accelerate payment of a Participant's Vested Account to the extent necessary to comply
with a domestic relations order (as defined in Section 414(p)(1)(B) of the Code).

 

(b)          Limited
Cashouts. The Committee may accelerate payment of a Participant's Vested Account to the extent that (i) the aggregate amount
in the Participant's Account does not exceed the applicable dollar amount under Section 402(g)(1)(B) of the Code, (ii) the payment
results in the termination of the Participant's entire interest in the Plan and any plans that are aggregated with the Plan pursuant
to Treas. Reg. Section 1.409A-1(c)(2), and (iii) the Committee's decision to cash out the Participant's Account is evidenced in
writing no later than the date of payment.

 

     

     

    

  

(c)          Payment
of Employment Taxes. The Committee may accelerate payment of all or a portion of a Participant's Vested Account (i) to pay
the Federal Insurance Contributions Act (FICA) tax imposed under Sections 3010, 3121(a) and 3121(v)(2) of the Code (the "FICA
Amount"), or (ii) to pay the income tax at source on wages imposed under Section 3401 of the Code or the corresponding
withholding provisions of applicable state, local or foreign tax laws as a result of the payment of the FICA Amount and the additional
income tax at source on wages attributable to the pyramiding Section 3401 wages and taxes; provided, however, that the total payment
under this Section 11.1(c) shall not exceed the FICA Amount and the income tax withholding related to the FICA Amount.

 

(d)          Payment
Upon Income Inclusion. The Committee may accelerate payment of all or a portion of a Participant's Vested Account to the extent
that the Plan fails to meet the requirements of Section 409A of the Code; provided that, the amount accelerated shall not exceed
the amount required to be included in income as a result of the failure to comply with Section 409A of the Code.

 

(e)          Termination
of the Plan. The Committee may accelerate payment of all or a portion of a Participant's Vested Account upon termination of
the Plan in accordance with Treas. Reg. Section 1.409A-3(j)(4)(ix).

 

(f)          Payment
of State, Local or Foreign Taxes. The Committee may accelerate payment of all or a portion of a Participant's Vested Account
for:

 

(i)          the
payment of state, local or foreign tax obligations arising from participation in the Plan that relate to an amount deferred under
the Plan before the amount is paid or made available to the Participant (the "State, Local and Foreign Tax Amount");
provided, however, the accelerated payment amount shall not exceed the taxes due as a result of participation in the Plan, and/or

 

(ii)         the
payment of income tax at source on wages imposed under Section 3401 of the Code as a result of such payment and the payment of
the additional income tax at source on wages imposed under Section 3401 of the Code attributable to the additional Section 3401
wages and taxes; provided however, the accelerated payment amount shall not exceed the aggregate of the State, Local and Foreign
Tax Amount and the income tax withholding related to such amount.

 

(g)          Certain
Offsets. The Committee may accelerate payment of all or a portion of the Participant's Vested Account to satisfy a debt of
the Participant to the Company or an Affiliate incurred in the ordinary course of the service relationship between the Company
and the Participant; provided, however, the amount accelerated shall not exceed $5,000 and the payment shall be made at the same
time and in the same amount as the debt otherwise would have been due and collected from the Participant.

 

     

     

    

  

(h)          Bona
Fide Disputes as to Right to Payment. The Committee may accelerate payment of all or a portion of a Participant's Vested Account
where the payment is part of a settlement between the Company or an Affiliate and the Participant of an arm's length, bona fide
dispute as to the Participant's right to the deferred amount.

 

12.         Section
162(m) of the Code. If the Committee reasonably anticipates that if a payment were made as scheduled under the
Plan it would result in a loss of the Company's tax deduction due to the application of Section 162(m) of the Code, such payment
can be delayed and paid (a) during the Participant's first taxable year in which the Committee reasonably anticipates that the
Company's tax deduction will not be limited or eliminated by the application of Section 162(m) of the Code or (b) subject to Section
9.5, during the period beginning with the Participant's Separation from Service and ending on the later of the last day of
the Company's taxable year in which the Participant separates from service or the 15th day of the third month following the Participant's
Separation from Service. Notwithstanding the foregoing, no payment under the Plan may be deferred in accordance with this Section
12 unless all scheduled payments to the Participant that could be delayed in accordance with Treas. Reg. Section 1.409A-2(b)(7)(i)
are also delayed.

 

13.         Plan
Administration.

 

13.1         Administration
by Committee. The Plan shall be administered by the Committee which shall have the authority to:

 

(a)          construe
and interpret the Plan and apply its provisions;

 

(b)          promulgate,
amend and rescind rules and regulations relating to the administration of the Plan;

 

(c)          authorize
any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)          determine
minimum or maximum amounts that Participants may elect to defer under the Plan;

 

(e)          select
the Investment Options that will be available for the deemed investment of Accounts under the Plan and establish procedures for
permitting Participants to change their selected Investment Options;

 

(f)          determine
whether any Company True-up Contributions will be made to the Plan with respect to any Plan Year and the amount of any such contributions;

 

     

     

    

  

(g)          select,
subject to the limitations set forth in the Plan, those Employees who shall be Eligible Employees;

 

(h)          evaluate
whether a Participant who has requested payment from his or her Account on account of an Unforeseeable Emergency has experienced
an Unforeseeable Emergency and the amount of any payment necessary to satisfy the Participant's emergency need;

 

(i)          calculate
deemed investment earnings and losses;

 

(j)          interpret,
administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument, Election
Notice or agreement relating to the Plan; and

 

(k)          exercise
discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of
the Plan.

 

13.2         Non-Uniform
Treatment. The Committee's determinations under the Plan need not be uniform and any such determinations may
be made selectively among Participants. Without limiting the generality of the foregoing, the Committee shall be entitled, among
other things, to make non-uniform and selective determinations with regard to: (a) the terms or conditions of any Elective Deferral;
(b) the amount, terms or conditions of any Company True-up Contribution; or (c) the availability of Investment Options.

 

13.3         Committee
Decisions Final. Subject to Section 16, all decisions made by the Committee pursuant to the provisions
of the Plan shall be final and binding on the Company and the Participants, unless such decisions are determined by a court having
jurisdiction to be arbitrary and capricious.

 

13.4         Indemnification.
No member of the Committee or any designee shall be liable for any action, failure to act, determination or interpretation made
in good faith with respect to the Plan except for any liability arising from his or her own willful malfeasance, gross negligence
or reckless disregard of his or her duties.

 

14.         Amendment
and Termination.

 

14.1         The
Committee may, at any time, and in its discretion, alter, amend, modify, suspend or terminate the Plan or any portion thereof;
provided, however, that no such amendment, modification, suspension or termination shall, without the consent of a Participant,
adversely affect such Participant's rights with respect to amounts credited to or accrued in his or her Account and provided, further,
that, no payment of benefits shall occur upon termination of the Plan unless the requirements of Section 409A of the Code have
been met.

 

     

     

    

  

15.         Miscellaneous.

 

15.1         No
Employment or Other Service Rights. Nothing in the Plan or any instrument executed pursuant thereto shall confer
upon any Participant any right to continue to serve the Company or an Affiliate or interfere in any way with the right of the
Company or any Affiliate to terminate the Participant's employment or service at any time with or without notice and with or without
cause.

 

15.2         Tax
Withholding. The Company and its Affiliates shall have the right to deduct from any amounts otherwise payable
under the Plan any federal, state, local, or other applicable taxes required to be withheld.

 

15.3         Governing
Law. The Plan shall be administered, construed and governed in all respects under and by the laws of North Dakota,
without reference to the principles of conflicts of law (except and to the extent preempted by applicable Federal law).

 

15.4         Section
409A of the Code. The Company intends that the Plan comply with the requirements of Section 409A of the Code
and shall be operated and interpreted consistent with that intent. Notwithstanding the foregoing, the Company makes no representation
that the Plan complies with Section 409A of the Code and shall have no liability to any Participant for any failure to comply
with Section 409A of the Code.

 

This Plan shall constitute an "account
balance plan" as defined in Treas. Reg. Section 31.3121(v)(2)-1(c)(1)(ii)(A). For purposes of Section 409A of the Code, all
amounts deferred under this Plan shall be aggregated with amounts deferred under other account balance plans.

 

15.5         General
Assets/Trust. All amounts provided under the Plan shall be paid from the general assets of the Company and no
separate fund shall be established to secure payment. Notwithstanding the foregoing, the Company may, but need not, establish
a rabbi trust to assist it in funding any Plan obligations. Notwithstanding the existence of any such trust, the Plan is intended
to be "unfunded" for purposes of ERISA and shall not be construed as providing income to Participants prior to the date
that amounts deferred under the Plan are paid.

 

15.6         No
Warranties. Neither the Company nor the Committee warrants or represents that the value of any Participant's
Account will increase. Each Participant assumes the risk in connection with the deemed investment of his or her Account.

 

15.7         Beneficiary
Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries to
receive the Participant's interest in the Plan in the event of the Participant's death. Each designation will revoke all prior
designations by the same Participant, shall be in a form reasonably prescribed by the Committee and shall be effective only when
filed by the Participant in writing with the Company during the Participant's lifetime. If a Participant fails to designate a
beneficiary, then the Participant's designated beneficiary shall be deemed to be the Participant's estate.

 

     

     

    

  

15.8         No
Assignment. Neither a Participant nor any other person shall have any right to sell, assign, transfer, pledge,
anticipate or otherwise encumber, transfer, hypothecate or convey any amounts payable hereunder prior to the date that such amounts
are paid (except for the designation of beneficiaries pursuant to Section 15.7).

 

15.9         Expenses.
The costs of administering the Plan shall be paid by the Company.

 

15.10         Severability.
If any provision of the Plan is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall
be deemed modified to the extent of such invalidity, illegality or unenforceability and the remaining provisions shall not be
affected.

 

15.11         Headings
and Subheadings. Headings and subheadings in the Plan are for convenience only and are not to be considered
in the construction of the provisions hereof.

 

16.         Claims
Procedures.

 

16.1         Filing
a Claim. Any Participant or other person claiming an interest in the Plan (the "Claimant")
may file a claim in writing with the Committee. The Committee shall review the claim itself or appoint an individual or entity
to review the claim.

 

16.2         Claim
Decision. The Claimant shall be notified within ninety (90) days after the claim is filed whether the claim
is approved or denied, unless the Committee determines that special circumstances beyond the control of the Plan require an extension
of time, in which case the Committee may have up to an additional ninety (90) days to process the claim. If the Committee determines
that an extension of time for processing is required, the Committee shall furnish written or electronic notice of the extension
to the Claimant before the end of the initial ninety (90) day period. Any notice of extension shall describe the special circumstances
necessitating the additional time and the date by which the Committee expects to render its decision.

 

16.3         Notice
of Denial. If the Committee denies the claim, it must provide to the Claimant, in writing or by electronic communication,
a notice which includes:

 

(a)          The
specific reason(s) for the denial;

 

(b)          Specific
reference to the pertinent Plan provisions on which such denial is based;

 

(c)          A
description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation
of why such material or information is necessary;

 

(d)          A
description of the Plan's appeal procedures and the time limits applicable to such procedures, including a statement of the Claimant's
right to bring a civil action under Section 502(a) of ERISA following a denial of the claim on appeal; and

 

     

     

    

  

(e)          If
an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is
available at no charge upon request.

 

16.4         Appeal
Procedures. A request for appeal of a denied claim must be made in writing to the Committee within sixty (60)
days after receiving notice of denial. The decision on appeal will be made within sixty (60) days after the Committee's receipt
of a request for appeal, unless special circumstances require an extension of time for processing, in which case a decision will
be rendered not later than one hundred twenty (120) days after receipt of a request for appeal. A notice of such an extension
must be provided to the Claimant within the initial sixty (60) day period and must explain the special circumstances and provide
an expected date of decision. The reviewer shall afford the Claimant an opportunity to review and receive, without charge, all
relevant documents, information and records and to submit issues and comments in writing to the Committee. The reviewer shall
take into account all comments, documents, records and other information submitted by the Claimant relating to the claim regardless
of whether the information was submitted or considered in the initial benefit determination.

 

16.5         Notice
of Decision on Appeal. If the Committee denies the appeal, it must provide to the Claimant, in writing or by
electronic communication, a notice which includes:

 

(a)          The
specific reason(s) for the denial;

 

(b)          Specific
references to the pertinent Plan provisions on which such denial is based;

 

(c)          A
statement that the Claimant may receive on request all relevant records at no charge;

 

(d)          A
description of the Plan's voluntary procedures and deadlines, if any;

 

(e)          A
statement of the Claimant's right to sue under Section 502(a) of ERISA; and

 

(f)          If
an internal rule was relied on to make the decision, either a copy of the internal rule or a statement that this information is
available at no charge upon request.

 

16.6         Claims
Procedures Mandatory. The internal claims procedures set forth in this Section 16 are mandatory. If a
Claimant fails to follow these claims procedures, or to timely file a request for appeal in accordance with this Section 16,
the denial of the Claim shall become final and binding on all persons for all purposes.

 

     

     

    

  

IN WITNESS WHEREOF, Nodak Mutual Insurance Company has adopted this
Plan as of the Effective Date written above.

 

	 	Nodak Mutual Insurance Company
	 	 
	 	By:	 
	 	Name:
	 	Title:Exhibit 10.3

 

EXECUTION COPY

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”)
is made as of this 28th day of April, 2016 (the “Effective Date”), between NI Holdings, Inc., a North Dakota business
corporation, (the “Corporation”), NODAK Mutual Insurance Company, a North Dakota mutual insurance company (the “Company”),
and Michael J. Alexander, an adult individual (“Executive”).

 

WITNESSETH:

 

WHEREAS, the Corporation, the Company,
and Executive desire to enter into an agreement providing for the terms of Executive’s employment with the Corporation and
the Company.

 

AGREEMENT

 

NOW, THEREFORE, the parties hereto,
intending to be legally bound, agree as follows:

 

1. Employment. The Corporation
and the Company employ Executive and Executive hereby accepts employment with the Corporation and the Company, on the terms and
conditions set forth in this Agreement.

 

2. Duties of Employee. Executive
shall serve as President and Chief Executive Officer of the Corporation and the Company and shall report directly to the Chairman
of the Board of Directors of the Corporation (the “Corporation Board”) and the Company (the “Company Board”).
Executive shall submit such direct reports as are needed, from time to time, and shall be responsible for the day-to-day operations
of the Corporation and the Company and shall perform all reasonable duties assigned by the respective Board. Executive shall devote
his full time, attention and energies to the business of the Corporation and the Company during the Employment Period (as defined
in Section 3 of this Agreement); provided, however, that this Section 2 shall not be construed as preventing Executive
from (a) engaging in activities incident or necessary to personal investments, (b) acting as a member of the board of
directors of any non-profit association or corporation, or (c) being involved in any other business activity with the prior
approval of the Corporation Board. Executive shall not engage in any business or commercial activities, duties or pursuits which
compete with the business or commercial activities of the Corporation or the Company, nor may Executive serve as a director or
officer or in any other capacity in a company which competes with the Corporation or the Company.

 

3. Term of Agreement.

 

(a) Employment Period. This Agreement
shall be for a period (the “Employment Period”) beginning on the Effective Date, and if not previously terminated pursuant
to the terms of this Agreement, continuing until the third anniversary hereof; provided, however, that on a daily basis, one additional
day shall be added to the term of this Agreement, so that the Employment Period shall always be three (3) years, unless either
the Executive or the Corporation shall have provided the other with written notice of its intention to cease extending the term
of this Agreement.

 

    	 	1	 

     

    

 

(b) Notwithstanding anything herein contained
to the contrary, nothing in this Agreement shall mandate or prohibit a continuation of Executive’s employment following the
expiration of the term of this Agreement upon such terms as the Corporation Board and Executive may mutually agree.

 

(c) Termination for Cause. Notwithstanding
the provisions of Section 3(a) of this Agreement, this Agreement may be terminated by the Corporation and the Company for
Cause (as defined herein). As used in this Agreement, “Cause” shall mean any of the following:

 

(i) Executive willfully fails or refuses
to substantially perform the Executive’s responsibilities under this Agreement, after demand for substantial performance
has been given by the Corporation Board that specifically identifies how the Executive has failed to perform such responsibilities;

 

(ii) Executive engages in gross misconduct
which is materially and demonstrably injurious to the Corporation or the Company;

 

(iii) Executive is convicted of a felony
or pleads guilty or nolo contendere to a felony;

 

(iv) Executive materially breaches Section
6 of this Agreement;

 

(v) Executive engages in any act of
fraud (including misappropriation of the Corporation’s or the Company’s funds or property) in connection with the business
of the Corporation or the Company which is materially and demonstrably injurious to the Corporation or the Company; or

 

(vi) Executive is disqualified or
barred by any governmental or self-regulatory authority from serving in the capacity contemplated by this Agreement.

 

If this Agreement is terminated for Cause,
all of Executive’s rights under this Agreement shall cease as of the effective date of such termination, except that:

 

(i) the Company shall pay to Executive
the unpaid portion, if any, of his Annual Base Salary through the date of termination; and

 

(ii) the Company shall provide to Executive
such post-employment benefits, if any, as may be provided for under the terms of the employee benefit plans of the Company then
in effect.

 

(d) Death. Notwithstanding the provisions
of Section 3(a) of this Agreement, this Agreement shall terminate automatically upon Executive’s death and Executive’s
rights under this Agreement shall cease as of the date of such termination, except that (i) the Company shall pay to Executive’s
spouse, personal representative, or estate the unpaid portion, if any, of his Annual Base Salary through date of death and (ii) the
Company shall provide to Executive’s dependents any benefits due under the Company’s employee benefit plans.

 

    	 	2	 

     

    

 

(e) Disability. Executive, the Corporation
and the Company agree that if Executive becomes Disabled, within the meaning of Section 409A of the Internal Revenue Code
of 1986, as amended (the “Code”) and the regulations thereunder, and becomes eligible for employer-provided short-term
and/or long-term disability benefits, or worker’s compensation benefits, then the Company’s obligation to pay Executive
his Annual Base Salary shall be reduced by the amount of the disability or worker’s compensation benefits received by Executive.

 

Executive, the Corporation and the Company
agree that if, in the judgment of the Corporation Board, Executive is unable, as a result of illness or injury, to perform the
essential functions of his position on a full-time basis with or without a reasonable accommodation and without posing a direct
threat to himself or others for a period of six months, the Company will suffer an undue hardship in continuing Executive’s
employment as set forth in this Agreement. Accordingly, this Agreement shall terminate at the end of the six-month period, and
all of Executive’s rights under this Agreement shall cease, with the exception of any unpaid Annual Base Salary through the
date of termination and those rights which Executive may have under the Company’s employee benefit plans.

 

(f) Resignation from Board of Directors.
In the event Executive’s employment under this Agreement is terminated for any reason, if applicable, Executive’s service
as a Director of the Corporation or the Company and any affiliate or subsidiary thereof shall immediately terminate. This Section 3(f)
shall constitute a resignation notice for such purposes.

 

4. Employment Period Compensation.
Benefits and Expenses.

 

(a) Annual Base Salary. For services
performed by Executive under this Agreement, the Company shall pay Executive an annual base salary during the Employment Period
at the rate of $525,000 per year, minus applicable withholdings and deductions, payable at the same times as salaries are payable
to other executive employees of the Company (the “Annual Base Salary”). The Annual Base Salary shall be reviewed annually
by the Company Board and the Company Board may, from time to time, increase Executive’s Annual Base Salary, and any and all
such increases shall be deemed to constitute amendments to this Section 4(a) to reflect the increased amounts, effective as
of the date established for such increases.

 

(b) Bonus. The Executive shall participate
in any equity incentive plan and short-term performance plan generally made available to executive officers of the Company.

 

(c) Vacations, Holidays, etc. During
the term of this Agreement, Executive shall be entitled to paid annual vacation in accordance with the policies as established
from time to time by the Company. Executive shall also be entitled to all paid holidays, sick days and personal days provided by
the Company to its regular full-time employees and senior executive officers.

 

    	 	3	 

     

    

 

(d) Employee Benefit Plans. During
the term of this Agreement, Executive shall be entitled to participate in or receive the benefits of any employee benefit plan
currently in effect at the Company, subject to the eligibility and terms of each such plan, until such time that the Company authorizes
a change in such benefits.

 

(e) Business Expenses. During the
term of this Agreement, Executive shall be entitled to receive prompt reimbursement for all customary and usual expenses incurred
by him, which are properly accounted for, in accordance with the policies and procedures established by the Company.

 

5. Rights in Event of Termination
of Employment.

 

(a) If Executive’s employment is
involuntarily terminated by the Corporation and the Company without Cause (other than for death or Disability), or the Executive
voluntarily terminates employment for Good Reason (as defined below), Executive shall be entitled to receive the compensation and
benefits set forth below:

 

(i) Executive shall be entitled to receive
an annual amount equal to (A) his Annual Base Salary plus (B) the average annual bonus for the preceding three (3) calendar
years. Such annual amount shall be multiplied by the number of full calendar months remaining in the Employment Period divided
by twelve (12). The resulting amount shall be paid by the Company in one lump sum within ten (10) calendar days of such termination.

 

(ii) Also, in such event, Executive shall,
for the remaining Employment Period, continue to participate in any benefit plans of the Company that provide health (including
medical and dental) coverage, upon terms no less favorable than the most favorable terms provided to senior executives of the Company
during such period. In the event that the Company is unable to provide such coverage by reason of Executive no longer being an
employee, the Company shall provide Executive an amount equal to the total after-tax cost to Employee, for each month that is then
remaining in the Employment Period, of obtaining such coverage.

 

(b) “Good Reason” shall mean
(i) a material diminution in salary, (ii) a material diminution in authority, duties or responsibilities, (iii) a
change in Executive's title, or (iv) a reassignment which assigns full-time employment duties to Executive at a location more
than twenty (20) miles from the Company’s principal executive office on the date of this Agreement, in all cases after
notice from Executive to the Company within ninety (90) days after the initial existence of any such condition that the condition
constitutes Good Reason and the failure of the Company to cure such situation within thirty (30) days after said notice.

 

(c) Executive shall not be required to
mitigate the amount of any payment provided for in this Section 5 by seeking other employment or otherwise, nor shall the
amount of payment or the benefit provided for in this Section 5 be reduced by any compensation earned by Executive as the
result of employment by another employer or by reason of Executive’s receipt of or right to receive any retirement or other
benefits after the date of termination of employment or otherwise.

 

    	 	4	 

     

    

 

6. Unauthorized Disclosure.
During the term of his employment hereunder, or at any later time, Executive shall not, without the written consent of the Company
Board or a person authorized thereby (except as may be required pursuant to a subpoena or other legal process), knowingly disclose
to any person, other than an employee of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection
with the performance by Executive of his duties as an executive of the Company, any material confidential information obtained
by him while in the employ of the Company with respect to any of the Company’s or any of its subsidiaries’ services,
products, improvements, formulas, designs or styles, processes, customers, methods of business or any business practices the disclosure
of which could be or will be damaging to the Company; provided, however, that confidential information shall not include any information
known generally to the public (other than as a result of unauthorized disclosure by Executive or any person with the assistance,
consent or direction of Executive) or any information of a type not otherwise considered confidential by persons engaged in the
same business or a business similar to that conducted by the Company or any information that must be disclosed as required by law.

 

7. Requirement of Release.
Notwithstanding anything herein to the contrary, Executive’s entitlement to any payments under Section 5 shall be contingent
upon Executive’s prior agreement with and signature to a complete release agreement in the form as mutually agreed by the
parties. Such release agreement shall be executed, if at all, and the applicable payments and benefits contingent upon the execution
of such agreement shall be provided or commence being provided, if at all, within sixty (60) days following the date of termination;
provided, however, that if such sixty (60) day period begins in one taxable year and ends in a second taxable year, the payments
and benefits will be provided or commence being provided, if at all, in the second taxable year.

 

8. Notices. Except as otherwise
provided in this Agreement, any notice required or permitted to be given under this Agreement shall be deemed properly given if
in writing and if mailed by United States registered or certified mail, postage prepaid with return receipt requested, to Executive’s
address, in the case of notices to Executive, and to the principal executive office of the Company, in the case of notice to the
Company.

 

9. Waiver. No provision of
this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and
signed by Executive and an executive officer of the Corporation and the Company specifically designated by the respective Board.
No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision
of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time.

 

10. Assignment. This Agreement
shall not be assignable by any party, except by the Company to any successor in interest to its business.

 

11. Entire Agreement. This
Agreement contains the entire agreement of the parties relating to the subject matter of this Agreement and supersedes and replaces
any prior written or oral agreements between them respecting the within subject matter.

 

    	 	5	 

     

    

 

12. Successors; Binding Agreement.

 

(a) The Corporation and the Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all
of the business and/or assets of the Corporation or the Company to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Corporation and Company would be required to perform it if no such succession had taken
place. As used in this Agreement, “Corporation” and “Company” shall mean the Corporation and the Company
as defined previously and any successor to their respective business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law or otherwise.

 

(b) This Agreement shall inure to the benefit
of and be enforceable by Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees
or legatees. If Executive should die following termination of Executive’s employment without Cause, and any amounts would
be payable to Executive under this Agreement if Executive had continued to live, all such amounts shall be paid in accordance with
the terms of this Agreement to Executive’s devisee, legatee, or other designee, or, if there is no such designee, to Executive’s
estate.

 

13. Legal Expenses. The Company
shall reimburse Executive for all reasonable legal fees and expenses he may incur in seeking to obtain or enforce any right or
benefit provided by this Agreement, but only with respect to such claim or claims upon which Executive prevails. Such payments
shall be made within fourteen (14) days after delivery of Executive’s written request for payment accompanied with such evidence
of fees and expenses incurred as the Company may reasonably require.

 

14. Validity. The invalidity
or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of
this Agreement, which shall remain in full force and effect.

 

15. Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota, without regard to its conflict
of laws principles.

 

16. Headings. The section
headings of this Agreement are for convenience only and shall not control or affect the meaning or construction or limit the scope
or intent of any of the provisions of this Agreement.

 

17. Limitations on Payments.

 

(a) Notwithstanding anything in this Agreement
to the contrary, in the event the payments and benefits payable hereunder to or on behalf of Executive, when added to all other
amounts and benefits payable to or on behalf of Executive, would result in the imposition of an excise tax under Section 4999 of
the Internal Revenue Code of 1986, as amended (the “Code”), the amounts and benefits payable hereunder shall be reduced
to such extent as may be necessary to avoid such imposition. All calculations required to be made under this subsection will be
made by the Company’s independent public accountants, subject to the right of Executive’s representative to review
the same. The parties recognize that the actual implementation of the provisions of this subsection are complex and agree to deal
with each other in good faith to resolve any questions or disagreements arising hereunder.

 

    	 	6	 

     

    

 

(b) All payments made to the Executive
pursuant to this Agreement or otherwise, are subject to and conditioned upon their compliance with applicable laws and any regulations
promulgated thereunder.

 

18. Recovery of Bonuses and Incentive
Compensation. Notwithstanding anything in this Agreement to the contrary, all bonuses and incentive compensation, but not
Annual Base Salary or payments due Executive under Section 5, paid hereunder (whether in equity or in cash) shall be subject to
recovery by the Company in the event that such bonuses or incentive compensation are based on materially inaccurate financial statements
or other materially inaccurate performance metric criteria; provided that a determination as to the recovery of a bonus or incentive
compensation shall be made within twenty-four (24) months following the date such bonus or incentive compensation was paid. In
the event that the Company Board determines that a bonus or incentive compensation payment to Executive is recoverable, Executive
shall reimburse all or a portion of such bonus or incentive compensation, to the fullest extent permitted by law, as soon as practicable
following written notice to Executive by the Company of the same.

 

19. Application of Code Section 409A.

 

(a) Notwithstanding anything in this Agreement
to the contrary, the receipt of any benefits under this Agreement as a result of a termination of employment shall be subject to
satisfaction of the condition precedent that Executive undergo a “separation from service” within the meaning of Treas.
Reg. § 1.409A-1(h) or any successor thereto. In addition, if Executive is deemed to be a “specified employee”
within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provisions of any benefit
that is required to be delayed pursuant to Code Section 409A(a)(2)(B), such payment or benefit shall not be made or provided prior
to the earlier of (i) the expiration of the six (6) month period measured from the date of Executive’s “separation
from service” (as such term is defined in Treas. Reg. § 1.409A-1(h)), or (ii) the date of Executive’s death (the
“Delay Period”). Within ten (10) days following the expiration of the Delay Period, all payments and benefits delayed
pursuant to this Section (whether they would have otherwise been payable in a single sum or in installments in the absence of such
delay) shall be paid or reimbursed to Executive in a lump sum, and any remaining payments and benefits due under this Agreement
shall be paid or provided in accordance with the normal payment dates specified for them herein. Notwithstanding the foregoing,
to the extent that the foregoing applies to the provision of any ongoing welfare benefits to Executive that would not be required
to be delayed if the premiums therefore were paid by Executive, Executive shall pay the full costs of premiums for such welfare
benefits during the Delay Period and the Company shall pay Executive an amount equal to the amount of such premiums paid by Executive
during the Delay Period within ten (10) days after the conclusion of such Delay Period.

 

    	 	7	 

     

    

 

(b) Except as otherwise expressly provided
herein, to the extent any expense reimbursement or other in-kind benefit is determined to be subject to Code Section 409A, the
amount of any such expenses eligible for reimbursement or in-kind benefits in one calendar year shall not affect the expenses eligible
for reimbursement or in-kind benefits in any other taxable year (except under any lifetime limit applicable to expenses for medical
care), in no event shall any expenses be reimbursed or in-kind benefits be provided after the last day of the calendar year following
the calendar year in which Executive incurred such expenses or received such benefits, and in no event shall any right to reimbursement
or in-kind benefits be subject to liquidation or exchange for another benefit.

 

(c) Any payments made pursuant to Section
5, to the extent of payments made from the date of termination through March 15th of the calendar year following such date, are
intended to constitute separate payments for purposes of Treas. Reg. §1.409A-2(b)(2) and thus payable pursuant to the “short-term
deferral” rule set forth in Treas. Reg. §1.409A-1(b)(4); to the extent such payments are made following said March 15th,
they are intended to constitute separate payments for purposes of Treas. Reg. §1.409A-2(b)(2) made upon an involuntary termination
from service and payable pursuant to Treas. Reg. §1.409A-1(b)(9)(iii), to the maximum extent permitted by said provision.

 

(d) To the extent it is determined that
any benefits described in Section 5(a)(ii) are taxable to Executive, they are intended to be payable pursuant to Treas. Reg. §1.409A-1(b)(9)(v),
to the maximum extent permitted by said provision.

 

[SIGNATURES NEXT PAGE]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the parties have
executed this Agreement as of the Effective Date.

 

	ATTEST:	 	nodak Mutual Insurance Company 
	 	 	 	 
	 	 	By:	 
	 	 	 	 
	Secretary	 	 	 
	 	 	 	 
	ATTEST:	 	NI Holdings, inc. 
	 	 	 	 
	 	 	By:	 
	 	 	 	 
	Secretary	 	 	 
	 	 	 	 
	WITNESS:	 	MICHAEL J. ALEXANDER
	 	 	 	 
	 	 	 	 

 

    	 	9

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