Document:

Exhibit 4.2

 

Form of Representative’s Warrant

 

THE REGISTERED HOLDER OF THIS PURCHASE WARRANT
BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED
HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD
OF ONE HUNDRED EIGHTY (180) DAYS FOLLOWING THE COMMENCEMENT OF SALES OF THE OFFERING TO ANYONE OTHER THAN (I) BOUSTEAD SECURITIES, LLC,
OR (II) ANY SUCCESSOR, OFFICER, MANAGER OR MEMBER OF BOUSTEAD SECURITIES, LLC (OR TO OFFICERS, MANAGERS OR MEMBERS OF ANY SUCH SUCCESSOR
OR MEMBER); OR (III) TO MEMBERS OF THE UNDERWRITING SYNDICATE OR SELLING GROUP. (SEE SECTION 4(a).

 

COMMON STOCK PURCHASE WARRANT

 

BLUE WATER VACCINES, INC.

 

	Warrant Shares: [  ]	Original Issuance Date: [  ], 2022

 

THIS COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies that, for value received, Boustead Securities, LLC or its assigns (the
“Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after ________, 202_1
(the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on [ ], 2027 (the
“Termination Date”) 2
but not thereafter, to subscribe for and purchase from Blue Water Vaccines, Inc., a Delaware corporation (the
“Company”), up to 3 [
 ] shares of Common Stock (as subject to adjustment hereunder, the “Warrant Shares”). The purchase price of
one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1. Definitions.
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Underwriting Agreement (the
“Agreement”), dated [  ], 2022 by and between the Company and Boustead Securities, LLC, as representative of the
several underwriters.

 

Section 2. Exercise.

 

a) Exercise of Warrant.
Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy (or e-mail attachment)
of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2)
Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following
the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in
Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall
any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein
to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all
of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall
have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number
of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the
date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such
notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph,
following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at
any given time may be less than the amount stated on the face hereof.

 

 

		1	The 181st day after the Effective Date of the Registration
Statement.

		2	Fifth anniversary of Effective Date of Registration Statement.

		3	5% of the total number of Firm Shares (or Option Shares, if applicable)
sold in the

 

     

     

    

 

b) Exercise Price. The
exercise price per share of Common Stock under this Warrant shall be $[ ] (which is 115% of the offering price per share of Common
Stock in the offering contemplated by the Agreement) (the “Exercise Price”).

 

c) Cashless Exercise.
If at the time of exercise hereof there is no effective registration statement registering the Warrant Shares, or the prospectus contained
therein is not available for the issuance of the Warrant Shares to the Holder, then, provided that the Trading Price, as defined below,
is equal to or greater than the Exercise Price, on the Termination Date, this Warrant may also be exercised, in whole or in part, at such
time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to
the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable: (i) the VWAP on the
Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered
pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof
on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated
under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately
preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported
by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed
during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2)
hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the
date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both
executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day (such
applicable price for (a), the “Trading Price”);

 

(B) = the Exercise Price of this Warrant,
as adjusted hereunder; and

 

(X) = the number of Warrant Shares that
would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash
exercise rather than a cashless exercise.

 

If Warrant Shares are issued
in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant
Shares shall take on the characteristics of the Warrants being exercised and the holding period of the Warrants being exercised may be
tacked on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to this Section 2(c).

 

“Bid Price”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or
quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading
Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York
City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is traded on OTCQB or OTCQX, the volume weighted average sales
price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not
then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets”
published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent
bid price per share of Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined
by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which
shall be paid by the Company.

 

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“VWAP” means,
for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted
on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the
Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m.
(New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is traded on OTCQB or OTCQX , the volume weighted average
sales price of the shares of Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common
Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink
Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices),
the most recent bid price per share of Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common
Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees
and expenses of which shall be paid by the Company.

 

“Trading Day” means
a day on which the Common Stock is traded on a Trading

Market.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

d) Mechanics of Exercise.

 

i. Delivery of Warrant Shares Upon
Exercise. In the event the Company does not object to a Notice of Exercise pursuant to Section 2(a) hereof, the Company shall cause
the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s
or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”)
if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance
of the Warrant Shares to or resale of the Warrant Shares by Holder, or (B) if there is no effective registration statement and the Warrant
is exercised via cashless exercise at a time when such Warrant Shares would be eligible for resale under Rule 144 by a non-affiliate of
the Company, such Warrant Shares are delivered to Holder’s broker, and the Company receives a statement from Holder’s broker
that it has received instructions to sell the Warrant Shares or that it would take responsibility that the sales of the Warrant Shares
will only be made if the Warrant Shares are eligible to be sold under Rule 144, and otherwise by physical delivery of a certificate, registered
in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder
is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest
of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the
aggregate Exercise Price to the Company (unless the Warrant is exercised via cashless exercise) and (iii) the number of Trading Days comprising
the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder
of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant
Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier
of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice
of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant
Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant
Shares subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading
Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after
such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to use commercially
reasonable efforts to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding
and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a
number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery
of the Notice of Exercise.

 

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ii. Delivery of New Warrants Upon Exercise.
If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate,
at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the
unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii. Rescission Rights. If the
Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share
Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv. Compensation for Buy-In on Failure
to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause
the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to
an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in
an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”),
then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including
brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number
of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price
at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the
portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall
be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely
complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases shares of Common Stock having a total
purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of Warrants with an aggregate sale price giving rise
to such purchase obligation of $10,000 of shares of Common Stock, under clause (A) of the immediately preceding sentence the Company shall
be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder
in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s
right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific
performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise
of the Warrant as required pursuant to the terms hereof.

 

v. No Fractional Shares or Scrip.
No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of
a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a
cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round down to
the next whole share.

 

vi. Charges, Taxes and Expenses.
Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect
of the issuance of such Warrant Shares, all of which transfer taxes and expenses shall be paid by the Company, and such Warrant Shares
shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however,
that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition
thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent
fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing
corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

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vii. Closing of Books. The Company
will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms
hereof.

 

e) Holder’s Exercise
Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion
of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth
on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group
together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially
own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares
of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common
Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares
of Common Stock which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by
the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or non-converted portion
of any other securities of the Company (including, without limitation, any other Common Stock equivalents) subject to a limitation on
conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution
Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder
that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the
Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained
in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion
of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which
portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation
to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall
be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding
shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the
case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent
setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within
one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares
of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The
Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided
that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section
2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day
after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise
than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable
to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3. Certain
Adjustments.

 

a) Stock Dividends and Splits.
If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance
of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding
shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of Common Stock, any shares of capital stock
of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares
of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the
number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant
shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant
to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive
such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination
or re-classification.

 

b) Subsequent Rights Offerings.
In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock equivalents
or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of Common Stock (the “Purchase
Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase
Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights
(provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in
the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right
to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase
Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation).

 

c) Pro Rata Distributions.
During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets
(or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise, other than cash (including,
without limitation, any distribution of stock or other securities, property or options by way of a dividend, spin off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after
the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent
that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the
record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership
Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of
any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance
for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation).

 

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d) Fundamental Transaction.
If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects
any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related
transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person)
is completed pursuant to which holders of shares of Common Stock are permitted to sell, tender or exchange their shares for other securities,
cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly,
in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory
share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or
(v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other
business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another
Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding Common Stock (not including any
shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons
making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”),
then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”)
receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant).
For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate
Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value
of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash
or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration
it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in
a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all
of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section
3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant
a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which
is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the
shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this
Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of
capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the
value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting
the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory
in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and
be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction
Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power
of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the
same effect as if such Successor Entity had been named as the Company herein.

 

e) Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes
of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the
number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

    6

     

    

 

f) Notice to Holder.

 

i. Adjustment to Exercise Price.
Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder
by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant
Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii. Notice to Allow Exercise by Holder.
If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare
a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders
of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the
approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation
or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory
share exchange whereby the shares of Common Stock are converted into other securities, cash or property, or (E) the Company shall authorize
the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall
cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant
Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a
record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer
or share exchange is expected to become effective or close, and the date as of which it is expected that holders of Common Stock of record
shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in
the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that
any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries,
the Company shall simultaneously file such notice with the Commission pursuant to a Report on Form 8-K. The Holder shall remain entitled
to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice
except as may otherwise be expressly set forth herein.

 

Section 4. Transfer
of Warrant.

 

a) Transferability. Pursuant
to FINRA Rule 5110(g)(1) and the Agreement, neither this Warrant nor any Warrant Shares issued upon exercise of this Warrant shall be
sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction
that would result in the effective economic disposition of the securities by any person for a period of one hundred eighty (180) days
immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued,
except the transfer of any security:

 

(i) by operation of law or by reason of
reorganization of the Company;

 

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(ii) to any FINRA member firm participating
in the offering and the officers and partners thereof, if all securities so transferred remain subject to the lock-up restriction in this
Section 4(a) for the remainder of the time period;

 

(iii) if the aggregate amount of securities
of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

 

(iv) that is beneficially owned on a pro-rata
basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the
fund, and participating members in the aggregate do not own more than 10% of the equity in the fund; or

 

(v) the exercise or conversion of any
security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

 

Subject to the foregoing restrictions, compliance
with any applicable securities laws, and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including,
without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office
of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.
Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue
to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding
anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder
has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days
of the date the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in
accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b) New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with
a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.
All Warrants issued on transfers or exchanges shall be dated the Original Issuance Date of this Warrant and shall be identical with this
Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c) Warrant Register.
The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual
notice to the contrary.

 

d) Representation by the
Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof,
will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling
such Warrant or Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant
to sales registered or exempted under the Securities Act.

 

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Section 5. Registration Rights

 

a) Demand Registration.

 

i. Grant of Right. The Company, upon written demand
(“Initial Demand Notice”) of the Holder(s) of at least 51% of the Warrant Shares (“Majority Holders”),
agrees to register on two occasions only (each, a “Demand Registration”) under the Securities Act all or any portion
of the Warrant Shares requested by the Majority Holders in the Initial Demand Notice (the “Registrable Securities”).
On such occasion, the Company will file a registration statement covering the Registrable Securities within 60 days after receipt of the
Initial Demand Notice and to have such registration statement declared effective as soon as possible thereafter. A demand for registration
may be made at any time during which the Majority Holders hold any of the Warrant Shares. Notwithstanding the foregoing, the Company shall
not be required to effect a registration pursuant to this Section 5 a): (A) with respect to securities that are not Registrable Securities;
(B) during any Scheduled Black-Out Period; (C) if the aggregate offering price of the Registrable Securities to be offered is less than
$250,000, unless the Registrable Securities to be offered constitute all of the then-outstanding Registrable Securities; or (D) within
180 days after the effective date of a prior registration in respect of the Common Stock, including a Demand Registration (or, in the
event that Holders were prevented from including any Registrable Securities requested to be included in a Piggyback Registration pursuant
to Section 5(b), within 90 days after the effective date of such prior registration in respect of the Common Stock. For purposes of this
Agreement, a “Scheduled Black-Out Period” shall means the periods from and including the day that is ten days prior
to the last day of a fiscal quarter of the Company to and including the day that is two days after the day on which the Company publicly
releases its earnings for such fiscal quarter. The Initial Demand Notice shall specify the number of shares of Registrable Securities
proposed to be sold and the intended method(s) of distribution thereof. The Company will notify all holders of the Warrant Shares of the
demand within ten days from the date of the receipt of any such Initial Demand Notice. Each holder of the Warrant Shares who wishes to
include all or a portion of such holder’s Warrant Shares in the Demand Registration (each such holder including shares of Registrable
Securities in such registration, a “Demanding Holder”) shall so notify the Company within 15 days after the receipt
by the holder of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have their Warrant Shares
included in the Demand Registration. The term of the Demand Registration shall not be more than five-years from the Effective Date.

 

ii. Effective Registration. A registration will not
count as a Demand Registration until the registration statement filed with the Commission with respect to such Demand Registration has
been declared effective and the Company has complied with all of its obligations under this Warrant with respect thereto.

 

iii. Terms. In connection with the first Demand Registration,
the Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the reasonable expenses of
one legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In connection with
the second Demand Registration, the Holders shall bear all fees and expenses attendant to registering the Registrable Securities including
the reasonable expenses of the Company’s legal counsel. The Company agrees to qualify or register the Registrable Securities in
such states as are reasonably requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to
register the Registrable Securities in a state in which such registration would cause (i) the Company to be obligated to qualify to do
business in such state, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii)
the principal shareholders of the Company to be obligated to escrow their shares of Common Stock of the Company. The Company shall cause
any registration statement filed pursuant to the demand rights granted under Section 5(a)(iii) to remain effective until all Registrable
Securities are sold.

 

    9

     

    

 

iv. Notwithstanding the foregoing, if the
Board of Directors of the Company determines in its good faith judgment that the filing of a registration statement in connection with
a Demand Registration (i) would be significantly detrimental to the Company in that such registration would interfere with a material
corporate transaction or (ii) would require the disclosure of material non-public information concerning the Company that at the time
is not, in the good faith judgment of the Board of Directors, in the best interests of the Company to disclose and is not, in the opinion
of the Company’s counsel, otherwise required to be disclosed, then the Company shall have the right to defer such filing for the
period during which such registration would be significantly detrimental under clause (i) or would require such disclosure under clause
(ii); provided, however, that (x) the Company may not defer such filing for a period of more than 90 days after receipt of any demand
by the Holders and (y) the Company shall not exercise its right to defer a Demand Registration more than once in any 12-month period.
The Company shall give written notice of its determination to the Holders to defer the filing and of the fact that the purpose for such
deferral no longer exists, in each case, promptly after the occurrence thereof.

 

b) Piggy-Back Registration.

 

i. Piggy-Back Rights. If at any time during the five
year period after the Effective Date, and the Registration Statement is no longer effective, the Company proposes to file a registration
statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or
exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their
account (or by the Company and by shareholders of the Company including, without limitation, pursuant to Section 5(a)), other than a registration
statement (i) filed in connection with any employee share option or other benefit plan, (ii) for an exchange offer or offering of securities
solely to the Company’s existing shareholders, or (iii) for a dividend reinvestment plan, then the Company shall (x) give written
notice of such proposed filing to the holders of Registrable Securities as soon as practicable but in no event less than ten days before
the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended
method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y) offer to
the holders of Registrable Securities in such notice the opportunity to register the sale of such number of Warrant Shares held by such
holder (the “Piggy-Back Registrable Securities”), as such holders may request in writing within five days following
receipt of such notice (a “Piggy-Back Registration”). The Company shall cause such Piggy-Back Registrable Securities
to be included in such registration and shall use its commercially reasonable efforts to cause the managing underwriter or underwriters
of a proposed underwritten offering to permit the Piggy-Back Registrable Securities requested to be included in a Piggy-Back Registration
on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Piggy-Back
Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Piggy-Back Registrable Securities
proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter or underwriters shall enter into
an underwriting agreement in customary form with the underwriter or underwriters selected for such Piggy-Back Registration.

 

ii. Reduction of Offering. If the managing underwriter
or underwriters for a Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable
Securities in writing that the dollar amount or number of shares of Common Stock which the Company desires to sell, taken together with
shares of Common Stock, if any, as to which registration has been requested pursuant to written contractual arrangements with persons
other than the holders of Piggy-Back Registrable Securities hereunder, the Piggy-Back Registrable Securities as to which registration
has been requested under this Section 5(b), and the shares of Common Stock, if any, as to which registration has been requested pursuant
to the written contractual piggy-back registration rights of other shareholders of the Company, exceeds the maximum dollar amount or maximum
number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution
method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum
Number of Shares”), then the Company shall include in any such registration:

 

    10

     

    

 

(x) If the registration is undertaken for the Company’s
account: (A) first, the Common Stock or other securities that the Company desires to sell that can be sold without exceeding the Maximum
Number of Shares; and (B) second, subject to the requirements of registration rights granted by the Company prior to the date hereof,
to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), up to the amount of shares of Common
Stock or other securities that can be sold without exceeding the Maximum Number of Shares, on a pro rata basis, from (i) Piggy-Back Registrable
Securities as to which registration has been requested and (ii) the Common Stock or other securities for the account of other persons
that the Company is obligated to register pursuant to written contractual piggy-back registration rights with such persons;

 

(y) If the registration is a Demand Registration undertaken
at the demand of holders of Registrable Securities, subject to the requirements of registration rights granted by the Company prior to
the date hereof, (A) first, the shares of Common Stock or other securities for the account of the demanding persons that can be sold without
exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing
clause (A), the shares of Common Stock or other securities comprised of Piggy-Back Registrable Securities, pro rata, as to which registration
has been requested pursuant to the terms hereof that can be sold without exceeding the Maximum Number of Shares; and (C) third, to the
extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), the shares of Common Stock or other
securities for the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with
such persons, that can be sold without exceeding the Maximum Number of Shares.

 

iii. Withdrawal. Any holder of Piggy-Back Registrable
Securities may elect to withdraw such holder’s request for inclusion of such Piggy-Back Registrable Securities in any Piggy-Back
Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the registration statement.
The Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual
obligations) may withdraw a registration statement at any time prior to the effectiveness of the registration statement. Notwithstanding
any such withdrawal, the Company shall pay all expenses incurred by the holders of Piggy-Back Registrable Securities in connection with
such Piggy-Back Registration as provided in Section 5(b)(iv).

 

iv. Terms. The Company shall bear all fees and expenses
attendant to registering the Piggy-Back Registrable Securities, including the expenses of one legal counsel selected by the Holders to
represent them in connection with the sale of the Piggy-Back Registrable Securities but the Holders shall pay any and all underwriting
commissions related to the Piggy-Back Registrable Securities. In the event of such a proposed registration, the Company shall furnish
the then Holders of outstanding Piggy-Back Registrable Securities with not less than fifteen days written notice prior to the proposed
date of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable registration
statement filed (during the period in which the Warrant is exercisable) by the Company until such time as all of the Piggy-Back Registrable
Securities have been registered and sold. The Holders of the Piggy-Back Registrable Securities shall exercise the “piggy-back”
rights provided for herein by giving written notice, within ten days of the receipt of the Company’s notice of its intention to
file a registration statement. The Company shall cause any registration statement filed pursuant to the above “piggyback”
rights to remain effective for at least nine (9) months from the date that the Holders of the Piggy-Back Registrable Securities are first
given the opportunity to sell all of such securities.

 

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c) General Terms. These additional terms shall
relate to registration under Sections 5(a) above:

 

i. Indemnification.

 

(w) The Company shall, to the fullest extent permitted by applicable
law, indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person,
if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against all loss, claim,
damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating,
preparing or defending against litigation, commenced or threatened, or any claim whatsoever whether arising out of any action between
the underwriter and the Company or between the underwriter and any third party or otherwise) to which any of them may become subject under
the Act, the Exchange Act or otherwise, arising from such registration statement; provided, however, that, with respect
to any Holder of Registrable Securities, this indemnity shall not apply to any loss, liability, claim, damage or expense to the extent
arising out of an untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by such Holder expressly for use in the registration statement (or any amendment thereto), or any
preliminary prospectus or the prospectus (or any amendment or supplement thereto).

 

(x) The Holder(s) of the Registrable Securities to be sold
pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its
officers and directors and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a)
of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the
Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns,
in writing, for specific inclusion in such registration statement(or any amendment thereto), or any preliminary prospectus or the prospectus
(or any amendment or supplement thereto).

 

(y) Each indemnified party shall give prompt notice to each
indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify
an indemnifying party shall not relieve the indemnifying party from any liability it may have under this Agreement, except to the extent
that the indemnifying party is prejudiced thereby. If it so elects, after receipt of such notice, an indemnifying party, jointly with
any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it; provided,
however, that the indemnified party shall be entitled to participate in (but not control) the defense of such action with counsel
chosen by it, the reasonable fees and expenses of which shall be paid by such indemnified party, unless a conflict would arise if one
counsel were to represent both the indemnified party and the indemnifying party, in which case the reasonable fees and expenses of counsel
to the indemnified party shall be paid by the indemnifying party or parties. In no event shall the indemnifying party or parties be liable
for a settlement of an action with respect to which they have assumed the defense if such settlement is effected without the written consent
of such indemnifying party, or for the reasonable fees and expenses of more than one counsel for (i) the Company, its officers, directors
and controlling persons as a group, and (ii) the selling Holders and their controlling persons as a group, in each case, in connection
with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or
circumstances; provided, however, that if, in the reasonable judgment of an indemnified party, a conflict of interest may
exist between such indemnified party and the Company or any other of such indemnified parties with respect to such claim, the indemnifying
party shall be obligated to pay the reasonable fees and expenses of such additional counsel.

 

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(z) If the indemnification provided for in or pursuant
to Section 5(b)(i) is due in accordance with the terms hereof, but held by a court of competent jurisdiction to be unavailable or unenforceable
in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each applicable indemnifying party, in lieu
of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party
on the one hand and of the indemnified party on the other in connection with the statements or omissions which result in such losses,
claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of the indemnifying
party on the one hand and of the indemnified party on the other shall be determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied
by the indemnifying party or by the indemnified party, and by such party’s relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

 

ii. Documents Delivered to Holders. The Company
shall furnish the initial Holder a signed counterpart, addressed to the initial Holder, of (i) an opinion of counsel to the Company, dated
the effective date of such registration statement (or, if such registration includes an underwritten public offering, an opinion dated
the date of the closing under any underwriting agreement related thereto), and (ii) if such registration statement is filed in connection
of an underwritten public offering, a “cold comfort” letter dated the effective date of such registration statement (or, if
such registration includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed
by the independent public accountants who have issued a report on the Company’s financial statements included in such registration
statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included
therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements,
as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten
public offerings of securities.

 

iii. Supplemental Prospectus. Each Holder
agrees, that upon receipt of any notice from the Company of the happening of any event as a result of which the prospectus included in
the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, such Holder
will immediately discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities
until such Holder’s receipt of the copies of a supplemental or amended prospectus, and, if so desired by the Company, such Holder
shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of such destruction)
all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. Immediately after discovering of such an event which causes the prospectus included in
the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, the Company
shall prepare and file, as soon as practicable, a supplement or amendment to the prospectus so that such registration statement does not
include any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing and distribute such supplement or amendment to each Holder.

 

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Section 6. Miscellaneous.

 

a) No Rights as Stockholder
Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as
a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3.
Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section 2(c) or to
receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall the Company be required to net cash settle
an exercise of this Warrant.

 

b) Loss, Theft, Destruction
or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting
of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver
a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c) Saturdays, Sundays, Holidays,
etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not
be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d) Authorized Shares.

 

The Company covenants that,
during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares
to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants
that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary
Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or
of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable
and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any
transfer occurring contemporaneously with such issue).

 

Except and to the extent as
waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times
in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company
will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such
increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally
issue fully paid and non-assessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to
obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary
to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which
would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company
shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.

 

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e) Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with
the provisions of the Agreement.

 

f) Restrictions. The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize
cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

g) Non-waiver and Expenses.
No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right
or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Agreement,
if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the
Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited
to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant
hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h) Notices. Any notice,
request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance
with the notice provisions of the Agreement.

 

i) Limitation of Liability.
No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of
any shares of Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the
Company.

 

j) Remedies. The Holder,
in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance
of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for
specific performance that a remedy at law would be adequate.

 

k) Successors and Assigns. Subject to applicable
securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors
and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l) Amendment. This Warrant
may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m) Severability. Wherever
possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n) Headings. The headings
used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

(Signature Page Follows)

 

    15

     

    

 

IN WITNESS WHEREOF, the Company
has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	BLUE WATER VACCINES, INC.
	 	 	 
	 	By:	 
	 	Name:	Joseph Hernandez
	 	Title:	Chief Executive Officer

 

    16

     

    

 

NOTICE OF EXERCISE

 

TO: BLUE WATER VACCINES, INC.

 

(1) The undersigned hereby elects to purchase ________
Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment
of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2) Payment shall take the form of (check applicable
box):

 

☐ in lawful money of the United States; or

 

☐ if permitted the cancellation of such number of Warrant
Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum
number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3) Please issue said Warrant Shares in the name
of the undersigned or in such other name as is specified below:

 

______________________

 

The Warrant Shares shall be delivered to the following DWAC Account
Number:

 

______________________

 

______________________

 

______________________

 

 

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity:_________________________________________________________

 

Signature of Authorized Signatory of Investing Entity:__________________________________

 

Name of Authorized Signatory:____________________________________________________

 

Title of Authorized Signatory:_____________________________________________________

 

Date:_________________________________________________________________________

 

     

     

    

 

EXHIBIT B

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and supply
required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

 

	Name:	 	 
	Address:	 	(Please Print)
	Phone Number:	 	 
	Email Address:	 	(Please Print)
	Dated: ___________ __, _____	 	 
	Holder’s Signature:	 	 
	Holder’s Address:	 	 

 

     

     

    

 

Warrant Exercise Log

 

	Date	Number of Warrant Shares Available to be Exercised	Number of Warrant Shares Exercised	Number of Warrant Shares Remaining to be Exercised
	
     

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     
	 	 	 

 

     

     

    

 

BLUE
WATER VACCINES, INC.

WARRANT DATED __________, 2022

WARRANT NO. [    ]

 

FORM
OF ASSIGNMENT

 

[To be completed and signed
only upon transfer of Warrant]

 

FOR VALUE RECEIVED, the undersigned
hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned Warrant to purchase
____________ shares of Company Common Stock and appoints ________________ attorney to transfer said right on the books of the Company
with full power of substitution in the premises.

 

Dated:_______________, ____

 

	 	 
	 	 
	 	(Signature must conform in all respects to name of holder as specified on the face of the Warrant)
	 	 
	 	 
	 	Address of Transferee
	 	 
	 	 
	 	 
	 	 

 

In the presence of:

 

__________________________

 

     

     

    

 

ANNEX VI

 

FORM OF PRESS RELEASE

 

BLUE WATER VACCINES, INC.

 

__________, 2022

 

Blue Water Vaccines, Inc. (the “Company”)
announced today that Boustead Securities, LLC, the sole book-running manager in the Company’s recent public sale of _____ shares
of Common Stock, are [waiving][releasing] a lock-up restriction with respect to ____ shares of Common Stock held by [certain officers
or directors] [an officer or director] of the Company. The [waiver][release] will take effect on ____, 2022 and the shares of Common Stock
may be sold on or after such date.

 

This press release is not an offer for sale
of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered
or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as
amended.

 

[to be attached]Document

CNA DEFERRED COMPENSATION AND SAVINGS PLAN 
Restated as of January 1, 2022

CNA DEFERRED COMPENSATION AND SAVINGS PLAN

TABLE OF CONTENTS

						
	ARTICLE I GENERAL PROVISIONS
	1

	1.1    Purpose
	1

	1.2    Effective Date.
	1

	1.3    Company and Employers.
	1

	1.4    Plan Year..
	1

	1.5    Definitions and Rules of Construction.
	1

	ARTICLE II ELIGIBILITY AND BENEFITS
	4

	2.1    Eligibility
	4

	2.2    Elective Deferrals.
	4

	2.3    Employer Contributions.
	6

	2.4    Earnings.
	6

	2.5    Vesting.
	7

	2.6    Time and Form of Payment.
	7

	2.7    Death Benefits.
	10

	2.8    Excess Benefit Plan Participants.
	11

	2.9    Former Participants in Surety Plans
	11

	ARTICLE III PAYMENT OF BENEFITS
	13

	3.1    Source of Payment.
	13

	3.2    Establishment of Trust.
	13

	3.3    Withdrawals for Financial Emergency..
	13

	3.4    Withholding and Payroll Taxes.
	14

	3.5    Payment on Behalf of Disabled or Incompetent Persons.
	14

	3.6    Missing Participants or Beneficiaries.
	14

	3.7    Other Permitted Distributions.
	14

	3.8    Recovery of Erroneous Distributions.
	14

	ARTICLE IV ADMINISTRATION
	16

	4.1    Administrator.
	16

	4.2    Administrator’s Powers.
	16

	4.3    Binding Effect of Rulings.
	16

	4.4    Claims Procedure.
	17

	4.5    Indemnity.
	18

	ARTICLE V AMENDMENT AND TERMINATION OF PLAN
	19

	5.1    Amendment. 
	19

	5.2    Termination. 
	19

	ARTICLE VI MISCELLANEOUS
	20

	6.1    Status of Plan.
	20

	6.2    Nonassignability..
	20

	6.3    No Contract of Employment.
	20

	6.4    Participant Litigation.
	20

	6.5    Participant and Beneficiary Duties.
	20

	6.6    Governing Law.
	20

	6.7    Validity.
	20

	6.8    Notices.
	21

	6.9    Successors.
	21

 -i-
75170576v.4

						
	APPENDIX A FULL VESTING OF PARTICIPANTS AFFECTED BY CERTAIN EVENTS
	23

	APPENDIX B EXCESS BENEFIT PLAN
	24

-ii-
75170576v.4

CNA DEFERRED COMPENSATION AND SAVINGS PLAN
ARTICLE I
GENERAL PROVISIONS
1.1 Purpose. The purpose of this CNA Deferred Compensation and Savings Plan (the “Plan”) is to enable selected Employees and former Employees of CNA Financial Corporation (the “Company”) or its subsidiaries (the “Employers”) to elect to defer additional compensation, and receive additional matching and other Company contributions, to compensate them for the limitations imposed upon their benefits under the CNA 401(k) Plan in order to comply with the requirements of the Internal Revenue Code (the “Code”), and also to permit the Employers to provide additional amounts of deferred compensation for other key Employees and former Employees.  The Plan was originally adopted jointly by the Company and Continental Casualty Company, one of the Employers, effective as of January 1, 1987, under the name CNA Employees’ Supplemental Savings Plan, and has been amended from time to time.  The Plan was most recently restated as of January 1, 2019, pursuant to which restatement the Company was granted the authority to adopt further amendments to the Plan.  The Plan is hereby further amended to incorporate certain amendments made since the last restatement, and to make other changes.
1.2 Effective Date.  The Plan was originally effective as of January 1, 1987, and was most recently restated as of January 1, 2019.  This amendment and restatement of the Plan shall be effective as of January 1, 2022, except as otherwise provided herein.  Except as otherwise explicitly provided below, the rights of a Participant whose employment terminated, or who otherwise became entitled to receive benefits, under the Plan prior to January 1, 2022, shall be determined under the terms of the Plan as in effect at such time.
1.3 Company and Employers.  The Plan is adopted for the benefit of selected Employees and former Employees of the Company and the Employers.  As of the effective date of this restatement, Continental Casualty Company is the only Employer participating in the Plan.  The Administrator may permit any other company that is an affiliate or subsidiary of the Company to participate in the Plan in such manner as the Administrator may determine.  Each Employer is liable for the payment of benefits to a Participant that is or was an Employee of such Employer.  The Company is the sponsor of the Plan for purposes of ERISA and the issuer of all interests in the Plan for securities laws purposes.
1.4 Plan Year.  The Plan Year of the Plan shall coincide with the calendar year, except as the Administrator shall otherwise determine.
1.5 Definitions and Rules of Construction..  As used in this Plan, certain capitalized terms shall have the meanings set forth below.  Capitalized terms not defined herein shall have the meaning set forth in the CNA 401(k) Plan, if applicable.  Nouns and pronouns which are of one gender shall be construed to include all genders, and the singular shall include the plural and vice-versa, except as the context otherwise clearly requires.  Article and Section headings are for ease of reference only and shall have no substantive meaning.
 - 1 -
75170576v.4

(a)“Account” means the separate bookkeeping account maintained on the books of a Participant’s Employer to reflect the amount owed to him pursuant to this Plan.  Each Account shall be divided into the following subaccounts:
(i)The Pre-2005 Account shall consist of all Elective Deferrals made on or before December 31, 2004, and all Company Contributions vested on December 31, 2004, and any earnings thereon.
(ii)The Post-2004 Account shall consist of all Elective Deferrals and Company Contributions that are credited  to the Participant’s Account on or prior to December 31, 2021, and any earnings thereon.
(iii)The Company Contribution Account shall consist of all Company Contributions credited to the Participant’s Account after December 31, 2021, and any earnings thereon.
(iv)The Separation Account shall consist of all Elective Deferrals credited to the Participant’s Account after December 31, 2021, that the Participant does not elect to have credited to an In-Service Withdrawal Account, and any earnings thereon.
(v)If elected by the Participant, either one or two In-Service Withdrawal Accounts, each of which shall consist of all Elective Deferrals credited to the Participant’s Account after December 31, 2021, that the Participant elects to have credited to such In-Service Withdrawal Account, and any earnings thereon.
The Administrator may establish additional subaccounts within a Participant’s Account, or may combine two or more subaccounts; provided that such action does not have the effect of changing the time or form of payment of amounts credited to such subaccounts.  The term “Account”, when not otherwise specified, shall refer collectively to all of the subaccounts comprising a Participant’s Account.  
(b)“Administrator” means the Company or such other person as the Company shall designate pursuant to Section 4.1.
(c)“Base Compensation” means Compensation as defined in Section 2.1(k) of the CNA 401(k) Plan for purposes of determining a Participant’s Before-Tax, After-Tax and Matching Contributions, but without regard to any limits on includable compensation imposed by the Tax Limits.
(d) “Beneficiary” means the person or persons designated to receive the Participant’s Account in the event of his or her death pursuant to Section 2.7. 
(e)“Board” means the Board of Directors of the Company. 
(f)“Bonus Compensation” means a Participant’s bonus under the Company’s Annual Incentive Bonus Plan, or such other incentive plan as may be designated by the Administrator.
- 2 -
75170576v.4

(g) “Code” means the Internal Revenue Code of 1986, and any treasury regulations, rulings or other authoritative administrative pronouncements interpreting the Code.  If any provision of the Code specifically referred to herein is amended or replaced, the reference shall be deemed to be to the provision as so amended, or to the new provision, if such reference is consistent with the purposes of the Plan.
(h)“Company” means CNA Financial Corporation, and any successor thereto that assumes the obligations of the Company under this Plan. 
(i)“Company Contributions” means amounts credited to an Active Participant’s Account pursuant to Section 2.3, including Matching Contributions as described in Section 2.3(a) and Basic Contributions as described in Section 2.3(b).
(j) “Controlled Group” means the Company and all other entities that are part of a controlled group of corporations, or group of trades or businesses under common control, that includes the Company as defined in §414(b) or (c) of the Code; including, for avoidance of doubt, Loews Corporation and its respective 80% owned subsidiaries.
(k)“Deferral Agreement” means an agreement between an Active Participant and his or her Employer specifying that a portion of his or her Base Compensation and/or Bonus Compensation shall be withheld as Elective Deferrals and credited to his or her Account in the Plan pursuant to Section 2.2, or providing that additional amounts will be credited to his or her Account pursuant to Section 2.3, or both, and any amendment thereto.  Effective January 1, 2022, each Deferral Agreement shall also specify whether such Elective Deferrals shall be credited to the Participant’s Separation Account or to an In-Service Withdrawal Account. To the extent determined by the Administrator, a Deferral Agreement may take the form of an election made by the Participant either in writing or through electronic communications.  The term “Deferral Agreement” may also refer to any provision of an employment, consulting, severance, or other agreement for the performance of services that makes specific reference to this Plan and provides for deferred compensation.  Any reference herein to a “deferral election” shall mean entering into or modifying a Deferral Agreement.
(l)“Elective Deferrals” means the portion of an Active Participant’s Base Compensation or Bonus Compensation that the Active Participant elects, in accordance with a Deferral Agreement, to have credited to his or her Account.
(m)“Employee” means any person employed by any Employer and classified as an Employee by such Employer.  Except as otherwise provided in Section 2.1(c), the term “Employee” shall not include a person who is retained to provide services for an Employer as an independent contractor, or who provides services for an Employer pursuant to an agreement or understanding, written or unwritten, with a third party that such person shall be treated as an employee of the third party, but who is subsequently determined to be an employee at common law, for purposes of any federal or state tax or employment law, or for any other purpose.
(n)“Employer” means any subsidiary of the Company that adopts the Plan and is the employer or former employer of a Participant.
- 3 -
75170576v.4

(o)“ERISA” means the Employee Retirement Income Security Act of 1974, and any Labor Department regulations, rulings or other authoritative administrative pronouncements interpreting ERISA.  If any provision of ERISA specifically referred to herein is amended or replaced, the reference shall be deemed to be to the provision as so amended, or to the new provision, if such reference is consistent with the purposes of the Plan.
(p)“Excess Benefit Plan” means the separable portion of the Plan contained in Appendix B.
(q)“Participant” means an Employee or former Employee designated to participate in the Plan pursuant to Section 2.1, while he or she has the right to any benefits under the Plan.  Participants are divided in Active Participants and Inactive Participants, as described in Section 2.1, and the term “Participant”, when not modified, shall refer to both Active and Inactive Participants, unless clearly inconsistent with the context.
(r)“Plan” means this CNA Deferred Compensation and Savings Plan, as amended from time to time.
(s)“Tax Limits” means the limitations imposed on a Participant’s benefits under the Plan to satisfy the requirements of §401(a)(17), §402(g), or §415 of the Code.
(t)“Total Compensation” means Total Compensation as defined in the 401(k) Plan (and as formerly referred to as “Retirement Plan Compensation”) for purposes of determining a Participant’s Basic Contributions, but without regard to any limits on includible compensation imposed by the Tax Limits.
(u)“401(k) Plan” means the CNA 401(k) Plan, as amended from time to time, and, if appropriate, any new plan adopted by the Company to replace the 401(k) Plan.  In the case of a Participant who participates in a plan maintained by his or her Employer other than the CNA 401(k) Plan, which plan is qualified under §401(a) of the Code and includes a cash or deferred feature qualified under §401(k) of the Code, the term “401(k) Plan” with respect to such Participant shall mean such other plan.

- 4 -
75170576v.4

ARTICLE II
ELIGIBILITY AND BENEFITS
2.1 Eligibility  
(a)Only selected management and highly compensated Employees and former Employees who are designated as provided herein shall be eligible to participate in the Plan. The Employees and former Employees who are so designated to participate in the Plan shall be referred to herein as “Active Participants” for so long as they have the right to have additional amounts credited to their Accounts pursuant to Section 2.2 or 2.3.  A person who is no longer an Active Participant, but who still has an undistributed Account in the Plan, shall be referred to as an “Inactive Participant.”
(b)  Unless otherwise determined by the Administrator, only the following Employees are eligible to participate in the Plan:
(i)An Employee who is classified by the Company at Job Level 440 or above shall be eligible to have Elective Deferrals made pursuant to Section 2.2, and to receive Matching Contributions pursuant to Section 2.3(a).  In the event that the Company revises its method of classifying Employees, the Administrator may revise all references to Job Level 440 to conform to the new method of classification.
(ii)An Employee shall be eligible to participate, solely for purposes of being credited with Basic Contributions, in any Plan Year in which his or her Total Compensation exceeds the limitation of Code §401(a)(17), or in which the total contributions to his or her 401(k) Plan account are restricted by Code §415 and in which he or she is not eligible to participate in the Excess Plan.  
Notwithstanding the foregoing, the Administrator may, in its sole discretion, determine at any time that any Employee or group of Employees described in this paragraph (b) shall no longer be eligible to participate.
(c)Any Employer, with the consent of the Administrator, may enter into a Deferral Agreement with a person not described in paragraphs (a) or (b), who may be either an Employee or a former Employee, and such person shall thereby become an Active Participant.  To the extent necessary or appropriate, any reference in this Plan to “employment” shall be modified and interpreted in the case of a former Employee or independent consultant in a manner consistent with the intent of the Plan.
(d)Any Employee who becomes a Participant, but who becomes ineligible to enter into a Deferral Agreement for any subsequent Plan Year by reason of a change in job classification, shall remain a Participant, and shall be credited with Employer Contributions pursuant to Section 2.3, for so long as he or she remains an Employee, unless otherwise determined by the Administrator.
- 5 -
75170576v.4

2.2  Elective Deferrals.  
(a)Each Active Participant may, for any Plan Year, elect in his or her Deferral Agreement to accept a reduction in his or her Base Compensation from his or her Employer equal to a whole percentage not to exceed 50% of his or her Compensation, and may also elect (whether or not he or she elects to a defer a portion of his or her Base Compensation) to accept a reduction in his or her Bonus Compensation from his or her Employer earned during such Plan Year equal to a whole percentage not to exceed 100% of his or her Bonus Compensation (50% in the case of an Active Participant described in Section 2.2(b)(ii)(B)).  
(b)All deferral elections shall be made in accordance with procedures established by the Administrator during the periods described below, and shall be irrevocable after the end of the period during which the election may be made.  Except as otherwise provided in procedures established by the Administrator, a deferral election with respect to Base Compensation for one Plan Year shall apply to Base Compensation earned in all future Plan Years unless changed by the Participant during the applicable election period; provided that new affirmative deferral elections shall be required for the 2022 Plan Year:
(i)Except as otherwise provided below, all deferral elections shall be made not later than the last day of the Plan Year immediately preceding the Plan Year to which the deferral election shall apply.  For this purpose, an election to defer Bonus Compensation shall apply to the Plan Year in which the Bonus Compensation begins to be earned, rather than the Plan Year in which the Bonus Compensation would otherwise be paid.
(ii)An Employee who is hired with a Job Level of 440, or who is promoted to a Job Level of 440, during a Plan Year, and who has not previously been considered eligible to participate in the Plan for purposes of Code §409A, shall become eligible to participate for purposes of making a deferral election for Base Compensation, as follows:
(A)    If the Employee is hired or promoted on or after June 1 but prior to December 1 of the Plan Year, he or she shall be eligible to participate as of January 1, and may make a deferral election that will take effect on January 1 of the following Plan Year.
(B)    If the Employee is hired or promoted on or after December 1 of the Plan Year, but prior to June 1 of the following Plan Year, he or she shall be eligible to participate as of July 1 of the following Plan Year, and may make a deferral election that will take effect on July 1 of the following Plan Year (and shall apply only to Base Compensation earned on or after such July 1).  Notwithstanding the general effective date of this amendment and restatement of the Plan, the provisions of this Section 2.2(b)(ii)(B) shall apply to an Employee who is hired or promoted during December of 2021.  
(C)    The Administrator may alter the time at which newly hired or promoted Employees shall become eligible and may make deferral elections, provided any such alteration is consistent with Code §409A and that no Employee shall become eligible to participate prior to the time set forth above unless such eligibility has been communicated to the Employee in writing.
(iii)The Administrator may permit Participants to elect to defer Bonus Compensation that constitutes qualified performance-based compensation as defined in Code §409A not later than the date that is six months prior to the end of the applicable performance period, provided that such election satisfies the requirements of Code §409A.
(iv)For the avoidance of doubt, effective January 1, 2022, an Active Participant may enter into Deferral Agreements for any Plan Year regardless of whether the Active Participant has made a deferral election under the 401(k) Plan, and all Deferral Agreements shall be administered and applied independently of the Active Participant’s deferral election under the 401(k) Plan, if any.
(c)Any Employer, with the consent of the Administrator, may enter into a Deferral Agreement with an Active Participant (including but not limited to a person described in Section 2.1(b)) which provides for 
- 6 -
75170576v.4

Compensation to be withheld and credited to the Active Participant’s Deferral Account on a basis different from that described in paragraph (a).  Such a Deferral Agreement may provide for the deferral of forms or amounts of compensation different from those defined as Base Compensation in Section 1.5(c), including payments to a former Employee or independent contractor, in which event such compensation shall be considered Compensation for all purposes of this Plan.  
(d)Amounts deferred pursuant to paragraph (a) shall be credited to the Active Participant’s Deferral Account as of the date on which the deferred Compensation would otherwise have been paid.  No election, and no provision of any Deferral Agreement, shall permit a Participant to defer Compensation already earned when the election is made.  Effective January 1, 2005, all deferral elections, including those under a Deferral Agreement, must be made not later than December 31 of the immediately preceding year (except as otherwise provided in paragraph (b)(ii) or (b)(iii)) and may thereafter be revoked or modified only as permitted in regulations issued pursuant to Code §409A.
2.3 Company Contributions.
(a)The Account of an Active Participant who has elected to defer a portion of his or her Base Compensation for a Plan Year, and who has also elected to make elective deferrals under the 401(k) Plan in the same Plan Year, shall be credited for each payroll period commencing with the payroll period in which the Active Participant’s elective deferrals pursuant to the 401(k) Plan are discontinued by reason of the Tax Limits with an amount equal to the lesser of (i) amount of Base Compensation deferred by the Active Participant for such payroll period under Section 2.2 or (ii) six percent (6%) of the Active Participant’s Base Compensation for such payroll period.  For the payroll period in which the Active Participant’s elective deferrals pursuant to the 401(k) Plan are first reduced, but not completely discontinued, by reason of the Tax Limits, the amount of Matching Contributions described in the preceding sentence shall be reduced by the amount of Matching Contributions credited to the Active Participant’s account in the 401(k) Plan.  No Matching Contributions shall be made with respect to Elective Deferrals of Bonus Compensation.  Matching Contributions shall be credited to an Active Participant’s Account as of the date as of which the deferred portion of his or her Base Compensation are credited.
(b)In addition to the amounts set forth above, for each Plan Year in which an Active Participant’s Total Compensation, or contributions to the 401(k) Plan, or both, exceeds the Tax Limits, the Employer of such Active Participant shall credit to the Active Participant’s Company Contribution Account an amount equal to the excess of five percent (5%) of such Active Participant’s Total Compensation over the maximum amount of Basic Contributions that can be credited to such Active Participant’s account in the 401(k) Plan.  Such amounts shall be credited to the Active Participant’s Account as follows:
(i)    As of each payroll date for which the Active Participant’s Total Compensation exceeds the limitation of Code §401(a)(17), an amount equal to five percent (5%) of the portion of his or her Total Compensation that exceeds such limitation shall be credited to his or her Account.
(ii)    If the total amount of contributions to the Active Participant’s 401(k) Plan Account for the Plan Year is restricted by Code §415, an additional amount shall be credited to the Active Participant’s Account, if necessary, as of the first day of the following Plan Year on a true-up basis, provided that the total amount credited to the Active Participant’s Account for any Plan Year pursuant shall not exceed the excess of five percent (5%) of such Active Participant’s Total Compensation over the maximum amount of Basic Contributions that can be credited to such Active Participant’s account in the 401(k) Plan.
(c)Any Employer, with the consent of the Administrator, may enter into an employment agreement, or adopt employment policies, with or applicable to an Active Participant (including but not limited to a person described in Section 2.1(b)) which provides for amounts to be credited to the Active Participant’s Matching or Employer Account on a basis different from that described in paragraph (a) or (b).  Such an agreement or policy shall specify the basis upon which the amount to be so credited shall be determined, and may also specify a vesting schedule different than that specified in Section 2.5. 
- 7 -
75170576v.4

2.4 Earnings. 
(a)Except as otherwise provided in paragraph (b), earnings shall be credited to each Participant’s Account at the rate of return on the Invesco Stable Value Fund established under the 401(k) Plan.  In the event that the Invesco Stable Value Fund  is no longer offered as an investment alternative under the 401(k) Plan, the Administrator shall designate a reasonably equivalent investment option under the 401(k) Plan to be used to measure the rate at which earnings shall be credited.
(b)Commencing January 1, 2022, the Administrator shall designate selected mutual funds or other investment media (“funds”), and each Participant shall have the right to have earnings (including realized and unrealized gains and losses) on each of his or her Accounts computed as if it had been invested in such funds in such proportions as the Participant shall elect.  The funds may be the same as the Investment Funds designated under the 401(k) Plan, or may exclude some or all of such Investment Funds or include other funds as the Administrator may determine.  The portion of each Participant’s Account that is deemed to be invested in each fund shall be a whole percentage, and elections may be changed at such intervals and in such manner as the Administrator may determine.  The Administrator shall have the authority to select and discontinue funds at any time, and otherwise to establish rules and procedures with respect to the calculation and crediting of earnings, including changing the intervals at which fund elections may be made or at which earnings are posted, and establishing a minimum or maximum percentage that may be deemed invested in any fund.  If a Participant fails to make an investment election with respect to one of his or her Accounts, such Account shall be invested in the Invesco Stable Value Fund or such other fund as may be selected by the Administrator.
(c)Anything else contained herein to the contrary, in no event shall any Participant be allowed to elect a rate of return on his or her Account retroactively, and in all cases earnings shall be computed in such a manner that they shall not be considered additional deferred compensation for purposes of FICA withholding under §3121(v) of the Code.
2.5 Vesting.  All Elective Deferrals and the earnings attributable thereto shall be fully vested and nonforfeitable at all times.  All Company Contributions and the earnings attributable thereto shall be vested at the same times and to the same extent as the Participant’s analogous account in the 401(k) Plan (except as otherwise provided in a Deferral Agreement with respect to amounts credited pursuant to Section 2.3(c)); provided, however, that an event that results in the 401(k) Plan accounts of a group of Participants being vested without regard to their years of service, including but not limited to the sale of a business unit or a determination that a partial termination of the 401(k) Plan has occurred, shall apply to this Plan if and only if such event is listed in Appendix A to this Plan.  To the extent a Participant’s Account is not vested at the time of his or her termination of employment for any reason, the non-vested portion shall be forfeited, and neither the Company nor any Employer shall have any further obligation to him whatsoever with respect to the forfeited portion.
2.6 Time and Form of Payment.  
(a)    All Elective Deferrals and Company Contributions credited to a Participant’s Account on or after January 1, 2022, shall be paid as follows:
(i)    All Elective Deferrals shall be credited to the Separation Account, except as otherwise provided in Section 2.6(a)(ii).  The entire balance in a Participant’s Separation Account shall be paid to the Participant in a single lump sum paid in January of the year following the year in which the Participant incurs a Separation from Service, or, if so elected by the Participant, in not more than ten (10) annual installments, in each January commencing with January of the year following the year in which the Participant incurs a Separation from Service.  An election to have the balance in the Participant’s Separation Account paid in installments (and the number of installments) must be made not later than the last day for entering into the first Deferral Agreement that provides for any portion of deferrals to be credited to the Separation Account, and shall also apply to all amounts credited to the Separation Account in subsequent Plan Years.
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(ii)    A Participant may elect to have any portion of the amount deferred in a Plan Year credited to an In-Service Withdrawal Account, the terms of which specify that the entire balance in such In-Service Withdrawal Account shall be distributed either in a lump sum in May of a year specified by the Active Participant at the time of establishing the In-Service Withdrawal Account, which year shall be not earlier than the fifth year after the first Plan Year for which amounts are credited to such In-Service Withdrawal Account (the “Payment Month”), or, if so elected by the Participant, in not more than five (5) annual installments in each May commencing with the Payment Month.  The designation of the Payment Month, and an election to have the balance in the In-Service Withdrawal Account paid in installments (and the number of installments) must be made not later than the last day for entering into a Deferral Agreement that provides for any portion of deferrals to be credited to the In-Service Withdrawal Account, and shall also apply to all amounts credited to the same In-Service Withdrawal Account in subsequent Plan Years.  Not more than two (2) In-Service Withdrawal Accounts may be in existence for a Participant at any one time.  Notwithstanding the foregoing, (A) if a Participant incurs a Separation from Service prior to the first day of the Payment Month, the entire balance in the In-Service Withdrawal Account shall be distributed in a lump sum in January of the year following the year in which the Separation from Service occurs, and (B) if the balance in an In-Service Withdrawal Account does not exceed $50,000 as of the first day of the Payment Month, the entire balance in the In-Service Withdrawal Account shall be distributed in a lump sum during the Payment Month.
(iii)    All Company Contributions shall be credited to the Company Contribution Account.  The entire vested balance in a Participant’s Company Contribution Account shall be paid to the Participant in a single lump sum paid in January of the year following the year in which the Participant incurs a Separation from Service, or, if so elected by the Participant, in not more than ten (10) annual installments, in each January commencing with January of the year following the year in which the Participant incurs a Separation from Service.  An election to have the balance in the Participant’s Company Contribution Account paid in installments (and the number of installments) must be made not later than the earlier of (A) the last day prior to the January 1 or July 1 as of which the Participant is first eligible to make an election to defer Base Compensation paid after 2021, whether or not the Participant makes such an election, or (B) the thirtieth (30th) day after the first payroll date on which the Participant is credited with Basic Contributions pursuant to Section 2.3(b)(i), provided that if such Participant accrued any benefit under any nonqualified deferred compensation plan maintained by the Company or any Controlled Group Member in any prior year, such election will not apply to the Basic Contributions earned prior to the date such election is made.
(b)    The time and method of payment of the Participant’s Pre-2005 and Post-2004 Account shall be paid in accordance with the terms of the Plan as in effect prior to January 1, 2022, except as otherwise provided in Section 2.6(c).
(c)    All elections of the time and form of payment of any portion of a Participant’s Account shall be irrevocable, and cannot be changed in any way, after the last day for making such election as specified in the applicable provision of the Plan.  Notwithstanding the foregoing, a Participant may make changes to the form of payment of the Separation Account, Company Contribution Account, In-Service Withdrawal Account, or the Post-2004 Account, subject to the provisions set forth below.  Such a change may include changing from a lump sum to payment in annual installments or vice versa, changing the number of annual installments to a number that does not exceed the maximum number permitted by the applicable provision, or, in the case of an In-Service Withdrawal Account, changing the year in which payment will be made or commenced.  
(i)    A change to the form of payment of the Separation Account or Company Contribution Account shall be made before the Participant incurs a Separation from Service, provided that such change shall not take effect for twelve (12) months after the change is made, 
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and the Account would otherwise become payable within twelve (12) months after the change is made, the change shall be null and void and payment shall be made as if the change had never been made.  If a valid change is made to either of such Accounts, payment of such account (or the first installment thereof) shall be made in January of the sixth Plan Year following the Plan Year in which the Participant incurs a Separation from Service.
(ii)    A change to the form of payment of the Post-2004 Account shall be made at least twelve (12) months before the Participant incurs a Separation from Service, and if the Participant incurs a Separation from Service within twelve (12) months after the change is made, the change shall be null and void and payment shall be made as if the change had never been made.  If a valid change is made to the Post-2004 Account, payment of such portion (or the first installment thereof) shall be made in January of the sixth Plan Year following the Plan Year in which the Participant incurs a Separation from Service.  Notwithstanding the foregoing, if the Participant had previously elected to have the balance in his or her Post-2004 Account paid in the January following a Separation from Service, either in a lump sum or installments commencing with such January, a change to the form of payment shall be made in accordance with Section 2.6(c)(i).
(iii)    A change to the form of payment of an In-Service Withdrawal Account shall be made not later than April 30 of the Plan Year before the Plan Year designated for payment of the In-Service Withdrawal Account.  If a valid change is made to an In-Service Withdrawal Account, payment of such Account (or the first installment thereof) shall be made in May of a Plan Year designated by the Participant that is at least five years after the Plan Year originally designated for payment of the In-Service Withdrawal Account, subject to the last sentence of Section 2.6(a)(ii).
(iv)    Not more than one change can be made to the form of payment from the Separation Account, Company Contribution Account, or Post-2004 Account.  The Administrator may limit the number of changes that may be made to an In-Service Withdrawal Account.
(v)    In no event shall any change be made to the time or form of payment of the Pre-2005 Account.
(d)    All Accounts shall continue to be credited with earnings as provided in Section 2.4 until they are distributed in full.  Whenever the Participant has elected payment of an Account in the form of annual installments, the amount of each installment shall be equal to the balance in the applicable Account immediately prior to payment, divided by the number of installments remaining to be paid (including such installment).   Notwithstanding the foregoing, if a Participant has elected to have his or her Company Contribution Account paid in installments, but a portion of the Company Contribution Account must be paid in a lump sum because it was accrued prior to the effective date of the election, the amount of the first installment shall be calculated by adding the amount required to be paid in a lump sum to the balance to be paid in installments, dividing such amount by the number of installments remaining to be paid, and reducing the first installment (but not below zero) by the amount of the lump sum.
(e)    The following provisions shall apply to all times and forms of payment of benefits, anything else in this Plan, or a Deferral Agreement, to the contrary notwithstanding: 
(i)    No part of a Participant’s Account other than the Pre-2005 Account that becomes payable by reason of a Separation from Service shall be payable to a Participant who is a specified employee, as defined in Code §409A, on the date he or she incurs a Separation from Service, until the earlier of the first day of the seventh month following the month in which the Separation from Service occurs, or the date of the Participant’s death.  If the benefit is payable in installments, the required deferral of the first such installment shall not affect the time of payment of subsequent installments.  The identification of Participants as specified employees shall be made as of December 31 of each year by 
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Loews Corporation based upon the employees of the controlled group of which Loews Corporation is the common parent, and a Participant identified as a specified employee as of any December 31 shall be subject to the provisions of this paragraph (c)(ii) if the Participant incurs a separation from service during the twelve month period commencing on the following April 1. 
(ii)     In no event shall the distribution of any Post-2004 Account, Separation Account, In-Service Withdrawal Account, or Company Contribution Account be accelerated to a time earlier than which it would otherwise have been paid, whether by amendment of the Plan, exercise of the Employee Benefits Committee’s discretion, or otherwise, except as permitted by regulations issued pursuant to Code §409A.
(iii)    The Administrator may establish additional rules and procedures for making and changing elections, which may further restrict the ability of Participants to make and change elections.  In the event that the Administrator, in its sole discretion, determines that any time or form of distribution provided for in the Plan, or the existence of a right to elect a different time or form of distribution, would cause the Plan to fail to meet the requirements of Code §409A, or otherwise cause Participants to be subject to any adverse federal income tax consequences, the Administrator shall adopt procedures modifying or removing the form of distribution or election right, which shall be deemed an amendment to the Plan.  
(iv)    Any Deferral Agreement that provides for a different form or time of payment shall specify the time and manner of payment, without Employer or Participant discretion, at the time the Deferral Agreement is entered into, and shall otherwise comply with the requirements of this paragraph (b); provided that, in addition to a severance from service, a Deferral Agreement may provide for benefits to be paid at a specified time or pursuant to a fixed schedule set forth in the Deferral Agreement, or upon the occurrence of a change in ownership or control of the Participant’s Employer, or in a substantial portion of its assets, as defined in Code §409A, and provided further that a Deferral Agreement may permit a Participant to elect to further defer the distribution of his or her Account if such election is consistent with the requirements of Section 2.6(c) and Code §409A.
2.7 Death Benefits.  
(a)If a Participant dies while still employed, his or her Account shall be fully vested and shall be paid to his or her Beneficiary in a single lump sum.  If a Participant dies after his or her employment has been terminated but before his or her Account has been paid in full, the remaining balance in his or her Account shall be paid to his or her Beneficiary in a single lump sum, regardless of whether the Participant has elected payment in installments.  All payments to Beneficiaries shall be within 90 days following the Participant’s death.
(b)A Participant’s Beneficiary shall be the person or persons designated by the Participant in his or her Deferral Agreement.  A Participant may change his or her Beneficiary from time to time without the consent of the Beneficiary.  Subject to rules, procedures, and limitations established by the Administrator, a Beneficiary may be an entity (including a trust or nonprofit organization), and the Participant may designate multiple or contingent Beneficiaries and specify the manner in which his or her Account will be divided among them.  All designations of Beneficiaries, and revocations or changes in designations, shall be made in accordance with rules, procedures and limitations prescribed by the Administrator.  No designation of a Beneficiary, and no revocation or change in a designation, shall be effective until actually received by the Administrator in writing, and the Administrator’s determination of a Participant’s Beneficiary, if made in good faith, shall be final and conclusive on all parties.
(c)The determination of the Participant’s Beneficiary shall be made at the time of his or her death.  If there is no designated Beneficiary living at the time of the Participant’s death, his or her Beneficiary shall be the person designated as his or her beneficiary under the 401(k) Plan, or any 
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similar retirement plan which permits the Participant to designate a beneficiary, as determined by the Administrator in its sole discretion (regardless of whether such designation is invalid solely by reason of §401(a)(11) of the Code or Section 205 of ERISA by reason of the failure of the Participant’s spouse to consent) or, if no beneficiary is designated under the 401(k) Plan or any such other plan, his or her estate.  If the Participant has designated more than one Beneficiary and not specified the manner in which his or her Account shall be divided, it shall be divided among all living Beneficiaries at the time of his or her death, per stirpes.  
2.8 Excess Benefit Plan Participants.  If an Employee who has been a Participant in the Excess  Benefit Plan becomes eligible pursuant to Section 2.1, such Employee shall become a Participant, and his or her Account under the Excess Benefit Plan shall be transferred to and become a part of his or her Account under the Plan.  Any amounts credited with respect to Plan Years prior to 2022 shall be credited to the Participant’s Post-2004 Account, and any election made by the Participant under Section B4 of the Excess Benefit Plan with respect to such amounts shall be treated as having been made under Section 2.6 and shall apply to the Participant’s Post-2004 Account.  Any amounts credited with respect to Plan Years beginning with 2022, shall be credited to the Participant’s Company Contribution Account, and any election made by the Participant under Section B4 of the Excess Benefit Plan with respect to such amounts shall be treated as having been made under Section 2.6 and shall apply to the Participant’s Company Contribution Account. 
2.9 Former Participants in Surety Plans.  
(a)    Effective as of December 25, 2011, the employees of Western Surety Company, a subsidiary of CNA Surety Corporation, became employees of Continental Casualty Company.  CNA Surety Corporation sponsored two nonqualified deferred compensation plans for the benefit of employees of Western Surety Company:  the CNA Surety Corporation Deferred Corporation Plan (the “2000 Surety Plan”), which provided for the deferral of compensation earned prior to 2005, and the CNA Surety Corporation 2005 Deferred Corporation Plan (the “2005 Surety Plan”, and, collectively with the 2000 Surety Plan, the “Surety Plans”), which provides for the deferral of compensation earned beginning in 2005.  Effective January 3, 2012, each of the Surety Plans was merged with and into the Plan in accordance with the provisions of this Section 2.9.
(b)    Effective January 3, 2012, each person who has an account in either of the Surety Plan (a “Surety Participant”) became a Participant.  Each Surety Participant’s account in the applicable Surety Plan, valued as of such date, became an Account in the Plan, and the Plan hereby assumes the obligation to pay such Account, subject to the terms of the Plan.  If a Surety Participant had an account in the 2005 Surety Plan, such account became his or her Account in this Plan, any future contributions shall be credited to such Account, and the entire balance in such Account shall be considered a Post-2004 Account for all purposes of the Plan.  If a Surety Participant has an account in the 2000 Surety Plan, whether or not he or she also has an account in the 2005 Surety Plan, such account shall be treated as a separate Account or subaccount which is a Pre-2005 Account for all purposes of the Plan, and no further contributions shall be allocated to such Account.
(c)    Contributions to the Plan on behalf of Surety Participants were determined as follows:
(i)    Elective Contributions, Matching Contributions, and Basic Contributions for the final Western Surety Company payroll period ending prior to December 25, 2011, were calculated in accordance with the terms of the 2005 Surety Plan, credited initially to the Surety Participant’s account in the 2005 Surety Plan, and were transferred to the Plan on January 3, 2012, as described in Section 2.9(b) above.  
(ii)    Performance Contributions for 2011 were calculated in accordance with the terms of the 2005 Surety Plan (based upon the 2011 performance of CNA Surety Corporation), and credited to each eligible Surety Participants’ Post-2004 Account in this Plan.
(iii)    Surety Participants shall be considered Active Participants, and eligible to enter into a Deferral Agreement for 2012 and subsequent years, if and only if they otherwise satisfy the requirements of Section 2.1.  
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(iv)    Surety Participants who became employees of Continental Casualty Company shall be eligible to be credited with employer contributions pursuant to Section 2.3 if they are Active Participants in this Plan, or pursuant to the Excess Benefit Plan set forth in Appendix B if they are not Active Participants.
(d)    All Accounts transferred from the Surety Plans shall be credited with earnings in accordance with Section 2.4 beginning on January 3, 2012, and Surety Participants shall have no right to elect investment funds after such date through 2021. Beginning January 1, 2022, Surety Participants shall have the same right to elect investment funds as all other Participants.
(e)    The entire Post-2004 Account of a Surety Participant, including any amount transferred from the 2005 Surety Plan and all subsequent contributions, shall be distributed in a single lump sum as soon as reasonably practical after the date that is six months after the Surety Participant incurs a separation from service as defined in Code §409A, in accordance with Article VI of the 2005 Surety Plan.
(f)    The Pre-2005 Account of a Surety Plan that was transferred from the 2000 Surety Plan shall be distributed in accordance with the Surety Participant’s election made under the terms of the 2000 Plan, in accordance with Article VI of the 2000 Surety Plan.
(g)    The right of a Surety Participant to withdraw a portion of his or her Account by reason of unforeseeable financial emergency pursuant to Section 5.6 of the 2000 Surety Plan or 6.5 of the 2005 Surety Plan shall be governed exclusively by Section 3.3 of the Plan.  A Surety Participant whose balance in the 2000 Surety Plan is transferred to a Pre-2005 Account in this Plan shall retain the right to an early distribution pursuant to Section 5.5 of the 2000 Surety Plan, but only with respect to such Pre-2005 Account.
(h)    The Administrator may treat any Beneficiary of a Surety Participant designated pursuant to one of the Surety Plans as the Participant’s Beneficiary under this Plan, subject to each Participant’s right to designate a new Beneficiary in accordance with the Plan.
(i)    Surety Participants shall be fully vested in their Accounts, including both amounts transferred to the Plan from the Surety Plans, and all subsequent contributions, subject to the provisions of Sections 4.9 of the 2000 Surety Plan and 5.8 of the 2005 Surety Plan relating to forfeiture for misconduct. 
(j)    Except as otherwise provided herein, Surety Participants shall be considered Participants, and the portion of their Accounts representing amounts transferred from the Surety Plans shall be treated in the same manner as other Accounts, for all purposes of the Plan.  Any former employee of Western Surety who was not a Surety Participant, and becomes an employee of Continental Casualty Company on December 25, 2011 or thereafter, shall be treated in the same manner as any newly hired employee for purposes of the Plan, but shall be given credit for Vesting Service earned as an employee of Western Surety Company.
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ARTICLE III
PAYMENT OF BENEFITS
3.1 Source of Payment.  All payment of benefits under the Plan shall be made directly from the general funds of the Participant’s Employer.  Each Employer shall establish separate bookkeeping accounts to reflect its liability under the Plan and may, but shall not be obligated to, invest in insurance or annuity contracts or other assets to assure a source of funds for the payment of benefits, but any such bookkeeping account, insurance or annuity contracts, or other investment shall constitute assets solely of such Employer, and Participants shall have no right, title or interest therein prior to payment of their benefits hereunder.  The right of any Participant or other person to receive benefit payments under the provisions of this Plan shall be no greater than the right of any unsecured general creditor of the Participant’s Employer.  This Plan shall not create nor be construed to create a trust or fiduciary relationship in favor of any person whatsoever.
3.2 Establishment of Trust.  The Company may, but shall in no event be required to, establish one or more trusts and contribute, or cause Employers to contribute, amounts to such trusts to be used for the payment of benefits under this Plan.  Any such trust shall be of the type commonly referred to as a “rabbi trust”, and the Company or Employer shall be treated as the owner of the assets of such trust for tax purposes in accordance with §671-§678 of the Code.  The assets of any such trust shall remain subject to the claims of creditors of the Company or the Employer contributing such assets, and no Participant or any other person shall have any beneficial interest in or other claim to the assets of any such trust beyond that of a general creditor as provided in Section 3.1.  Any payments made to or on behalf of a Participant or Beneficiary from any such trust shall fully discharge the liability of the Company or Employer to such Participant or Beneficiary under the Plan to the extent of the amount so paid.  The Administrator shall have the right to select, remove, and replace the trustee thereof at any time in its sole discretion, and shall enter into one or more agreements governing such trust containing such terms as it determines, and may modify, amend or revoke any such agreements, all in its sole discretion.  Without limiting the generality of the foregoing, the Administrator is hereby authorized and directed to enter into an agreement with one or more trustees designated by it establishing such a trust to accept the transfer of assets from the trust established by an agreement dated August 1, 2000, between CNA Surety Corporation and First National Bank in Sioux Falls to fund the 2000 Surety Plan (as defined in Section 2.9), and from the trust established by an agreement dated March 28, 2005, between the same parties to fund the 2005 Surety Plan (as defined in Section 2.9), and to commingle such assets into a single trust fund to be used to pay any benefits accrued under the Plan, including but not limited to accounts transferred from the Surety Plans, and to pay expenses of such trust and the Plan.
3.3 Withdrawals for Financial Emergency.  A Participant may withdraw part or all of the vested portion of his or her Account if the amount withdrawn is reasonably necessary to satisfy an unforeseeable financial emergency.  Any such withdrawals shall be subject to such rules, procedures and limitations as the Administrator may, in its sole discretion, determine, including rules specifying the Accounts to which such withdrawal will be charged.  For purposes of this Section 3.3, an unforeseeable financial emergency means a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant, one of his or her dependents (as defined in §152(a) of the Code), or the person designated as the Participant’s primary Beneficiary, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  A financial hardship that is foreseeable or within the Participant’s control, such as the need or desire to purchase a residence or to send a child to college, shall not be considered an unforeseeable financial emergency.  The determination of whether a Participant’s need for funds constitutes an unforeseeable financial emergency shall be made in accordance with the requirements of §409A of the Code.  The amount withdrawn may not exceed the amount necessary to satisfy the financial hardship (taking into account any tax payable on the withdrawal), determined after taking into account other sources of funds available to the Participant, including but not limited to reimbursement or compensation by insurance or otherwise, and the liquidation of other assets to the extent that such liquidation would not itself cause severe financial hardship.  If a Participant has a financial hardship, the Participant’s Deferral Agreement, if any, shall be revoked for the Plan Year (and no subsequent Deferral Agreement may be made for the same Plan Year), and the additional income resulting from such revocation shall be taken into 
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account in determining the amount of distribution reasonably necessary to relieve the financial hardship.  A Participant shall not be required to take any hardship withdrawal or loan to which he or she is entitled under the 401(k) Plan or any other tax qualified retirement plan as a condition of receiving a distribution pursuant to this Section 3.3. 
3.4 Withholding and Payroll Taxes.  The Administrator shall withhold, or shall direct the person making any payment to withhold, from payments made hereunder any taxes required to be withheld from a Participant’s wages for the federal or any state or local government.  To the extent that benefits hereunder are subject to tax under the Federal Insurance Contributions Act or any other law prior to the time that they become payable, the Administrator may either withhold, or direct the Participant’s Employer to withhold, the amount of such taxes from any other compensation or other amounts payable to the Participant, or may deduct the amount of such tax from the Participant’s Account in accordance with Section 3.7(c).  The Administrator’s determination of the amount to be so withheld or deducted shall be final and binding on all parties.
3.5 Payment on Behalf of Disabled or Incompetent Persons.  If a Plan benefit is payable to a minor or a person declared incompetent or to a person whom the Administrator, in its sole discretion, determines to be incapable of handling the disposition of property, the Administrator may direct payment of such Plan benefit to the guardian, legal representative or person having the care and custody of such minor or incompetent person, or to any other person, including any family member, whom the Administrator determines in its sole discretion to be best suited to receive and apply the payment for the benefit of such person.  The Administrator may require proof of incompetency, minority, incapacity or guardianship as it may deem appropriate prior to distribution of the Plan benefit.  Such distribution shall completely discharge the Company and the Participant’s Employer from all liability with respect to such benefit.
3.6 Missing Participants or Beneficiaries.  If the Administrator is unable to locate any Participant, Beneficiary or other person entitled to benefits under this Plan, the Administrator may, in its sole discretion, either cause all or a portion of such payment to be forfeited and to reduce its obligations under this Plan, or may pay all or a portion of such benefit to members of the missing person’s family or such other person as it may determine in its sole discretion to be fair and equitable.  Any payment made pursuant to this Section 3.6 shall fully discharge the obligation of the Company and all Employers under this Plan with respect to the amount so paid.
3.7 Other Permitted Distributions.  Notwithstanding the foregoing provisions of this Article III, the Administrator in its sole discretion may provide for all or a portion of the balance in a Participant’s Account to be distributed to the Participant, provided that no Participant may be allowed to elect to receive such a distribution:
(a)If the total balance in a Participant’s Account does not exceed the limit in effect under §402(g) of the Code, the Administrator may direct that the entire balance be distributed to the Participant in full satisfaction of his or her interest in the Plan, provided that the Participant’s entire balance in all other account balance deferred compensation plans maintained by any member of the Controlled Group is also distributed to the Participant (and is taken into account in determining whether the total balance exceeds the limit in effect under §402(g)).
(b)If any portion of a Participant’s Account is determined to be includible in the Participant’s taxable income by reason of the operation of §409A of the Code, the amount includible in income shall be distributed to the Participant as soon as practical.
(c)The Administrator may direct that the Participant’s portion of the FICA tax imposed on amounts deferred under the Plan pursuant to §3121 of the Code be charged to the Participant’s Account, provided that the total amount charged to the Account shall not exceed the FICA tax plus income tax withholding on the amount applied to payment of the FICA tax.
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3.8  Recovery of Erroneous Distributions.  If the Administrator determines that the amount paid to any Participant or Beneficiary exceeded the amount that should have been paid pursuant to the terms of the Plan, the Participant or Beneficiary shall repay the amount of the excess to the Plan upon demand, and the Administrator may, on behalf of the Plan, pursue offset the amount of such excess against any other amount owed by an Employer to the Participant or Beneficiary to the maximum extent permitted by law, or pursue any other remedy available at law or equity for the recovery of such excess.  Each Participant or Beneficiary who receives an excess distribution shall hold such distribution in trust for the benefit of the Plan.
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ARTICLE IV
ADMINISTRATION
4.1 Administrator.  This Plan shall be administered by Continental Casualty Company, which shall be the “administrator” for purposes of Section 3(16)(A) of the Employee Retirement Income Security Act of 1974.  The Company may designate one or more persons who may be officers or Employees of any Employer, to exercise any of its authority or carry out any of its duties under the Plan, but such person shall not be considered the “administrator” unless specifically so designated in a resolution of the Board.  In the absence of any other designation, the senior officer of Continental Casualty Company responsible for human resources, or persons acting under his or her supervision, shall be so designated.  In addition, Continental Casualty Company has established an Employee Benefits Committee to oversee the operation of various retirement plans, and the Employee Benefits Committee shall have the authority on behalf of the Administrator to adopt rules, regulations and procedures, to hear all appeals from denied claims under Section 4.4, and to consider all other issues related to the administration of the Plan referred to it by senior officer of Continental Casualty Company responsible for human resources and his or her delegates.
4.2 Administrator’s Powers.  The Administrator shall have such powers as may be necessary to discharge its duties hereunder, including, but not by way of limitation, the following powers, rights and duties:
(a)Interpretation of Plan.  The Administrator shall have the power, right and duty to construe and interpret the Plan provisions and to determine all questions arising under the Plan including questions of Plan participation, eligibility for Plan benefits and the rights of Employees, Participants, Beneficiaries and other persons to benefits under the Plan and to determine the amount, manner and time of payment of any benefits hereunder.
(b)Plan Procedures.  The Administrator shall have the power, right and duty to adopt procedures, rules, regulations and forms to be followed by Employees, Participants, Beneficiaries and other persons or to be otherwise utilized in the efficient administration of the Plan and as are consistent with the Plan. 
(c)Benefit Determinations.  The Administrator shall have the power, right and duty to make determinations as to the rights of Employees, Participants, Beneficiaries and other persons to benefits under the Plan and to afford any Participant or Beneficiary dissatisfied with such determination with rights pursuant to a claims procedure adopted by the Administrator in accordance with Section 4.4.
(d)Enforcement of the Plan.  The Administrator shall have the power, right and duty to enforce the Plan in accordance with the terms of the Plan and to enforce its procedures, rules or regulations. 
(e)Maintenance of Plan Records.  The Administrator shall be responsible for preparing and maintaining records necessary to determine the rights and benefits of Employees, Participants and Beneficiaries or other persons under the Plan.
(f)Allocation of Duties.  The Administrator shall be empowered to allocate fiduciary responsibilities and the right to employ agents (who may also be Employees of the Company) and to delegate to them any of the administrative duties imposed upon the Administrator. 
(g)Correction of Errors.  To correct any errors made in the computation of benefits under the Plan, and, if a trust has been established, to recover any contributions made to such trust by mistake of fact or law.
4.3 Binding Effect of Rulings.  Any ruling, regulation, procedure or decision of the Administrator, including any interpretation of the Plan, which is made in good faith shall be conclusive and binding upon all persons affected by it.  There shall be no appeal from any ruling by Administrator, except as provided in Section 4.4 below.  When making a determination or a calculation, the Administrator shall be entitled to rely on information supplied by investment managers, insurance institutions, accountants and other professionals including legal counsel for the Administrator.  Any rule or procedure established by the Administrator may alter any provision of this Plan that is ministerial or procedural in nature without the necessity for a formal amendment of the Plan.
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4.4 Claims Procedure.  
(a)Any Participant or Beneficiary, or any other person asserting the right to receive a benefit under this Plan by virtue of his or her relationship to a Participant or Beneficiary (the “Claimant”), who believes that he or she has the right to a benefit that has not been paid, must file a written claim for such benefit in accordance with the procedures established by the Administrator.  All such claims shall be filed not more than one year after the Claimant knows, or with the exercise of reasonable diligence would have known, of the basis for such claim.  The preceding sentence shall not be construed to require a Participant or Beneficiary to file a formal claim for the payment of undisputed benefits in the normal course, but any claim that relates to the amount of any benefit shall in any event be filed not more than one year after payment of such benefit commences.  The Administrator may retain third party administrators and recordkeepers for the purpose of processing routine matters relating to the payment of benefits, but correspondence between a Participant, Beneficiary or other person and such third parties shall not be considered claims for purposes of this Section, and a person shall not be considered a Claimant until he or she has filed a written claim for benefits with the Administrator.
(b)All claims for benefits shall be processed by the Administrator, and the Administrator shall furnish the Claimant within 90 days after receipt of such claim a written notice that specifies the reason for the denial, refers to the pertinent provisions of the Plan on which the denial is based, describes any additional material or information necessary for properly completing the claim and explains why such material or information is necessary, and explains the claim review procedures of this Section 4.4, and the Claimant’s right to bring an action under Section 502 of ERISA, subject to the restrictions of paragraph (e) if the request for review is unsuccessful.  The 90 day period may be extended by up to an additional 90 days if the Administrator so notifies the Claimant prior to the end of the initial 90 day period, which notice shall include an explanation of the reason for the extension and an estimate of when the processing of the claim will be complete.  If the Administrator determines that additional information is necessary to process the claim, the Claimant shall be given a period not less than 45 days to furnish the information, and the time for responding to the claim shall be tolled during the period of time beginning on the date on which the Claimant is notified of the need for the additional information and the day on which the information is furnished (or if earlier the end of the period for furnishing the information).
(c)If the claim is denied in whole or in part, or if the decision on the claim is otherwise adverse, the Claimant may, within 60 days after receipt of such notice, request a review of the decision in writing.  If the claimant requests a review, the Employee Benefits Committee (or such other fiduciary as the Administrator may appoint for such purpose) shall review such decision.  The Employee Benefits Committee’s decision on review shall be in writing and furnished not more than five days after the meeting at which the review is completed, and shall include specific reasons for the decision, written in a manner calculated to be understood by the Claimant, shall include specific references to the pertinent provisions of the Plan on which the decision is based, and shall advise the Claimant of his or her right to bring an action under Section 502 of ERISA, subject to the limitations of paragraph (e).  
(d)The Employee Benefits Committee shall complete its review of the claim not later than its first meeting that is held at least 30 days after the request for review is received.  If special circumstances require, the decision may be made by the Employee Benefits Committee not later than its third meeting held after the request for review is received, in which event the Claimant shall be notified of the reason for the delay not later than five days after the meeting at which the review would otherwise have been completed, which notice shall explain the reason for the delay and include an estimate of the time at which the review will be complete.  Notwithstanding the foregoing, if at any time the Employee Benefits Committee (or any other fiduciary designated to review appeals) is not scheduled to meet at least quarterly, the decision on review shall be delivered to the Claimant not more than 60 days after the request for review is received, which 
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may be extended to not more than 120 days if special circumstances require and the notice of extension described above is furnished by the end of the initial 60 day period.
(e)No action at law or in equity shall be brought to recover benefits under this Plan until the claim and appeal rights herein provided have been exercised and the Plan benefits requested in such claim and appeal have been denied in whole or in part.  After exhaustion of the Plan’s claim procedures, any further legal action taken against the Plan or its fiduciaries by a claimant must be filed in a court of law no later than 120 days after the final adverse benefit determination of the Employee Benefits Committee (or other final appeals fiduciary) is communicated to the claimant or his or her legal representative, notwithstanding any other statute of limitations.  In the event a claimant wishes to bring a legal action against the Plan or one of its fiduciaries, such legal action must be filed in the United States District Court for the Northern District of Illinois (Eastern Division) and shall be governed by the procedural and substantive laws of the State of Illinois, to the extent such laws are not preempted by ERISA, notwithstanding any conflict of laws principles.
(f)The provisions of this Section are intended to comply with ERISA Section 503 and the Department of Labor regulations issued pursuant thereto, and shall be so construed and applied.  Consistent with such regulations, each Claimant shall have the right to have an authorized representative act on his or her behalf, to submit arguments and information in support of his or her claim, and to receive, upon written request and without charge, copies of all documents, records, or other information that either (i) were relied upon in determining his or her benefit under the Plan, (ii) were submitted, considered, or generated in the course of making the benefit determination, even if not relied upon, or (iii) demonstrate compliance with the administrative processes and safeguards of the claim and review procedure.  
4.5 Indemnity.  To the extent permitted by applicable law and to the extent that they are not indemnified or saved harmless under any liability insurance contracts, any present or former officers, Employees or directors of the Company, and each of them shall be indemnified and saved harmless by the Company from and against any and all liabilities or allegations of liability to which they may be subjected by reason of any act done or omitted to be done in good faith in the administration of the Plan, including all expenses reasonably incurred in their defense in the event that the Company fails to provide such defense after having been requested in writing to do so.
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ARTICLE V
AMENDMENT AND TERMINATION OF PLAN
5.1 Amendment.  The Company may amend the Plan at any time by action of the Board, or any person to whom the Board may delegate such authority, except that no amendment shall decrease the vested Account balance of any Participant as of the effective date of the amendment.  The Board has delegated the authority to amend the Plan, with certain exceptions, to the Executive Vice President and Chief Human Resources Officer of Continental Casualty Company, and any amendment executed by such officer shall be binding on all parties.  In addition, the Administrator is authorized pursuant to Section 4.3 to adopt rules and procedures that have the effect of amendment technical, administrative or ministerial provisions of the Plan.  By their execution of this amendment and restatement of the Plan, each Employer ratifies and accepts all prior amendments to the Plan, and agrees that in the future the Plan may be amended by action of the Company without consent of the other Employers.
5.2 Termination.  The Company may at any time terminate the Plan by action of the Board.  Upon termination, no further allocations shall be made to Accounts, but Accounts shall continue to be credited with earnings and shall be paid in accordance with the provisions of the Plan; provided, however, that upon termination, the Company may, but shall not be obligated to, amend the Plan to provide that the Accounts of some or all Participants shall be fully vested and paid to such Participants in a lump sum, which shall fully discharge all obligations owed to such Participants under the Plan; provided that such amendment shall apply to the Post-2004 Accounts only if all such Accounts are fully vested and distributed and the amendment otherwise complies with the requirements of §409A of the Code.  Any Employer may at any time withdraw from the Plan by written notice to the Administrator, in which event the Plan shall be considered terminated with respect to the Participants employed by such Employer (or who were so employed at the time of their termination of employment), and the provisions of this Section 5.2 shall apply to such Participants only.
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ARTICLE VI
MISCELLANEOUS
6.1 Status of Plan.  This Plan is intended to be an unfunded plan maintained primarily to provide retirement benefits for a select group of management Employees or highly compensated Employees within the meaning of Section 201(1), Section 301(a)(3), and §401(a)(1) of ERISA and Department of Labor Regulations 29 C.F.R. Section 2520.104-23, and shall be so construed.
6.2 Nonassignability.  Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be nonassignable and nontransferable.  No part of the amounts payable shall, prior to actual payment, be subject to garnishment, seizure or sequestration for the payment of any debts owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.  Nothing contained herein shall be construed as a waiver of the Company’s or any Employer’s right of setoff.
6.3 No Contract of Employment.  The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Company or any Employer and the Participant, and neither the Participant nor the Participant’s Beneficiary shall have any rights against the Company or any Employer except as may otherwise be specifically provided herein.  Moreover, nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Company or any Employer or to interfere with the right of the Company and each Employer to discipline or discharge him at any time.
6.4 Participant Litigation.  In any action or proceeding regarding the Plan, Participants, Employees or former Employees of the Company or an Employer, their Beneficiaries or any other persons having or claiming to have an interest in this Plan shall not be necessary parties and shall not be entitled to any notice or process.  Any final judgment which is not appealed or appealable and may be entered in any such action or proceeding shall be binding and conclusive on the parties hereto and all persons having or claiming to have any interest in this Plan.  To the extent permitted by law, if a legal action is begun against the Company, an Employer, the Administrator, the trustee of any trust established hereunder, or any person acting on the behalf or under the direction of any of the foregoing persons, by or on behalf of any person and such action results adversely to such person or if a legal action arises because of conflicting claims to a Participant’s or other person’s benefits, the costs to any such person of defending the action will be charged to the amounts, if any, which were involved in the action or were payable to the Participant or other person concerned.  To the extent permitted by applicable law, acceptance of participation in this Plan shall constitute a release of the Company, each Employer, the Administrator and such trustee and their respective agents from any and all liability and obligation not involving willful misconduct or gross neglect.
6.5 Participant and Beneficiary Duties.  Persons entitled to benefits under the Plan shall file with the Administrator from time to time such person’s post office address and each change of post office address.  Each such person entitled to benefits under the Plan also shall furnish the Administrator with all appropriate documents, evidence, data or information which the committee considers necessary or desirable in administering the Plan.
6.6 Governing Law.  The provisions of this Plan shall be construed and interpreted according to the laws of the State of Illinois to the extent not pre-empted by the laws of the United States.  The Plan is intended to comply with all requirements of §409A, and to the maximum extent permitted by law shall be construed in a manner that is consistent with such intent, provided that in no event shall the Company, any Employer, the Administrator, or any of their respective employees, agents or representatives have any liability to any person for any additional tax imposed upon such person pursuant to §409A of the Code or any comparable federal, state or local income tax law.
6.7 Validity.  In case any provision of this Plan shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein.
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6.8 Notices.  Any notice or filing required or permitted to be given to the Administrator or the Company under the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail to the Company at its principal executive offices, or to Company’s statutory agent.  Notices shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification.  Any notice required or permitted to be given to a Participant shall be sufficient if in writing and hand delivered or sent by first class mail to the Participant at the last address listed on the records of the Company or such Participant’s Employer.
6.9 Successors.  The provisions of this Plan shall bind and inure to the benefit of each Employer and its respective successors and assigns.  The term successors as used herein shall include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of an Employer, and successors of any such corporation or other business entity.
[SIGNATURE ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Company has caused this amendment and restatement of the Plan to be executed on December 20, 2021
									
		CNA FINANCIAL CORPOROATION	
	By  	/s/ Elizabeth Aguinaga	 
	 	Elizabeth Aguinaga	 
	 	Executive Vice President & Chief Human Resources Officer	 
		Continental Casualty Company	

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APPENDIX A
FULL VESTING OF PARTICIPANTS AFFECTED BY CERTAIN EVENTS
A.1    Sales of Business Units
In accordance with Section 2.5, Participants whose employment is terminated in connection with the following sales or other dispositions of business units shall be fully vested in their Account balance regardless of their years of service.  Except as otherwise provided below, the Participants who qualify for full vesting with respect to any transaction shall be those, and only those, who qualify as an “Affected Member” with respect to such transaction in accordance with Appendix F of the 401(k) Plan.
									
	Transaction	Closing Date	Exceptions/Special Rules
	Sale of Life Reinsurance Business Unit to MARC	12/31/00	None
	Sale of CNA Credit Collection Agency, Inc.,  to Coface	12/31/02	None
	Sale of the unbundled risk management business of RSKCo Services, Inc to Cunningham Lindsey US	6/2/03	None
	Sale of Smith System to McFadden Brothers	4/29/03	None
	Sale of CNA Group Operations to Hartford Financial Services Group	12/31/03	None
	Sale of individual life insurance business to Swiss Re Life & Health America	App. 3/31/04	None

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APPENDIX B
EXCESS BENEFIT PLAN
B1.Purpose and Interpretation.  The purpose of this Appendix B is to establish a separable portion of the Plan, referred to herein as the “Excess Benefit Plan”, solely for the purpose of providing benefits for Employees whose benefits under the 401(k) Plan are restricted by Code §415.  Except as otherwise specifically provided in this Appendix B, all provisions of the Plan shall apply to Participants in the Excess Benefit Plan to the same extent and in the same manner such provisions apply to Participants in the Plan.  All capitalized terms used in this Appendix B shall have the same meaning as such terms as defined in the Plan.  It is the Company’s intent that the benefits accrued for Participants solely under this Appendix B shall constitute a separable part of the Plan that constitutes an “excess benefit plan” as defined in §3(36) of ERISA.
B2.Eligibility.  The Employees who are eligible to participate in the Excess Benefit Plan shall be those Employees whose benefits under the 401(k) Plan are restricted solely by Code §415, and who are not, and never have been, eligible to participate in the Plan pursuant to Section 2.1 thereof.  An Employee shall become a Participant in the Excess Benefit Plan on the last day of the first Plan Year in which an amount that would otherwise have been credited to his or her account in the 401(k) Plan cannot be credited solely by reason of Code §415, and shall remain a Participant in the Excess Benefit Plan until either his or her Account is fully distributed, or he or she transfers to the Plan pursuant to Section B4 below.
B3.Benefits Credited to Account.  The amount credited to the Account of a Participant in the Excess Benefit Plan in each Plan  Year shall be equal to the amount of Basic Contributions that would have been credited to his or her Company Contribution Account in the Plan pursuant to Section 2.3(c) for such Plan Year if he or she were eligible to participate in the Plan for such Plan Year, but taking into account only the Tax Limit imposed by Code §415.  A Participant’s Account in the Excess Benefit Plan shall be treated as an Account in the Plan for all purposes of the Plan.  Such amount shall be credited to the Participant’s Account as of January 1 of the following Plan Year on a true-up basis.
B4.Payment Election.  When an Employee first becomes eligible to participate in the Excess Benefit Plan, the Administrator may permit the Employee to make an election as to the form of payment of his or her benefit in accordance with Section 2.6(b)(iii), which election shall thereafter be treated as an election made under Section 2.6(b)(iii).  Such election may be made at any time prior to January 30 of the Plan Year following the first Plan Year in which the Employee is eligible to participate, and may thereafter be changed once in the manner provided in Section 2.6(c), provided that if the Employee has accrued any benefit under any nonqualified deferred compensation plan maintained by the Company or any Controlled Group Member in any prior year, such election will not apply to the Basic Contributions earned prior to the date such election is made.
B5.Earnings.  Effective January 1, 2022, a Participant in the Excess Benefit Plan may designate the investment funds in which his or her Account will be deemed invested in the manner described in Section 2.4 of the Plan.
B6.Transfer to Plan.  If an Employee who has been a Participant in the Excess Benefit Plan in any Plan Year subsequently becomes eligible to participate in the Plan pursuant to Section 2.1, his or her Account under the Excess Benefit Plan shall be transferred to the Plan, and he or she shall thereafter be considered a Participant in the Plan and shall be ineligible to again participate in the Excess Benefit Plan for so long as he or she remains an Employee, even if he or she subsequently becomes ineligible to participate in the Plan.
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